Unilever 2001 Annual Report Download

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DISCLAIMER
Notes to the Annual Report and Accounts
and Form 20-F 2001
This pdf version of the Unilever Annual Report & Accounts and
Form 20-F 2001 is an exact copy of the document provided to
Unilever’s shareholders.
Certain sections of the Unilever Annual Report & Accounts
and Form 20_F 2001 have been audited. Sections that have
been audited are set out on pages 51 to 88, 94 to 102 and
104 to 105.
The maintenance and integrity of the Unilever website is the
responsibility of the directors; the work carried out by the
auditors does not involve consideration of these matters.
Accordingly, the auditors accept no responsibility for any
changes that may have occurred to the financial statements
since they were initially presented on the website.
Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Disclaimer
Except where you are a shareholder, this material is provided for
information purposes only and is not, in particular, intended to
confer any legal rights on you.
This Annual Report and Accounts and Form 20-F does not
constitute an invitation to invest in Unilever shares. Any
decisions you make in reliance on this information are solely
your responsibility.
The information is given as of the dates specified, is not
updated, and any forward-looking statements are made subject
to the reservations specified on page 1 of the Report.
Unilever accepts no responsibility for any information on other
websites that may be accessed from this site by hyperlinks.

Table of contents

  • Page 1
    ... any legal rights on you. This Annual Report and Accounts and Form 20-F does not constitute an invitation to invest in Unilever shares. Any decisions you make in reliance on this information are solely your responsibility. The information is given as of the dates specified, is not updated, and any...

  • Page 2
    UNILEVER ANNUAL REPORT & ACCOUNTS 2001 AND FORM 20-F Meeting everyday needs of people everywhere

  • Page 3
    ... to embrace new ideas and learn continuously. We believe that to succeed requires the highest standards of corporate behaviour towards our employees, consumers and the societies and world in which we live. This is Unilever's road to sustainable, profitable growth for our business and long-term value...

  • Page 4
    ... Ice cream and beverages Culinary and frozen foods Operating review by category - Home & Personal Care Home care and professional cleaning Personal care Financial review Corporate governance Organisational structure of Unilever Directors Advisory Directors Business Presidents Remuneration report...

  • Page 5
    GENERAL INFORMATION > 2 The Unilever Group Unilever N.V. (NV) is a public limited company registered in the Netherlands, which has listings of shares or certificates (depositary receipts) of NV on the stock exchanges in Amsterdam, London and New York and in Belgium, France, Germany, Luxembourg ...

  • Page 6
    ... for 2001 on NV New York shares and American Depositary Receipts of PLC may differ from those shown above, which include final dividend values calculated using the rates of exchange ruling on 13 February 2002 (â,¬1.00 = $0.8747, £1.00 = $1.4331). Unilever Annual Report & Accounts and Form 20...

  • Page 7
    ... of our people. Our new divisional structure of Foods and Home & Personal Care is already accelerating the execution of our business plans. The integration of research into the divisions has strengthened our capability to deliver more and bigger innovations to fuel brand growth. There was a strong...

  • Page 8
    ... to see sales of spreads and cooking products growing by 4.6% fuelled by the success of pro•activ, Bertolli and the roll-out of Culinesse. In North America there were excellent performances from ice cream and Slim•Fast. Our Home and Personal Care brands across the skin, hair and deodorant...

  • Page 9
    ... are calculated to promote party interests. The Environment Unilever is committed to making continuous improvements in the management of our environmental impact and to the Unilever Annual Report & Accounts and Form 20-F 2001 longer-term goal of developing a sustainable business. Unilever will work...

  • Page 10
    ...'s in Europe and Ben & Jerry's, Good Humor and Breyers in the United States. Ice cream products such as Carte d'Or, Cornetto, Magnum, Solero, and Viennetta are brands sold internationally as part of local or international household brands. We are the largest seller of packet tea in the world, with...

  • Page 11
    ... have important market shares in toothpastes, skin care and hair products in many countries. Toothpastes are sold widely under the Signal, Close-up and Mentadent brands. In skin care, products are sold internationally under the Pond's, Vaseline and Fair and Lovely brands. Hair shampoos are available...

  • Page 12
    ...the Code in line with the evolving standards expected of international companies. The new Code is being rolled out in 2002. Debate about the appropriate extent of corporate social responsibility has continued. By meeting the needs of consumers worldwide, Unilever's branded products and services help...

  • Page 13
    ... the Reward for Growth programme and as a result over 6 000 managers worldwide qualify for executive share options and a new global variable pay scheme linked to growth. It is planned to extend the variable pay scheme to a further 15 000 employees. Unilever Annual Report & Accounts and Form 20...

  • Page 14
    ... into euros using annual average exchange rates; balance sheet amounts are translated at year-end rates except for the ordinary capital of the two parent companies. These are translated at the rate prescribed by the Equalisation Agreement of £1 = Fl. 12, and thence to euros at the official rate of...

  • Page 15
    ... - Culinary products in France > Ben & Jerry's - Ice cream primarily in the United States > Cressida - Foods and home and personal care in Central America > Slim•Fast - Nutritional bars and beverage products in the United States In 2001 we disposed of 33 businesses for a total consideration of...

  • Page 16
    ... sell a number of North American food brands and related assets from the Bestfoods portfolio, primarily cooking oil products, corn starches, commodity oils and syrups. Also included in the planned sale were the Rit dye and Niagara starch fabric care brands. In total these brands have combined annual...

  • Page 17
    ...momentum in Amora Maille and we started to see the strength of the Knorr brand. In personal care, the leading brands maintained their good rate of growth, led by range extensions in Dove and Signal and by Rexona. Dove shampoo was launched in eight Unilever Annual Report & Accounts and Form 20-F 2001

  • Page 18
    ...to reduce trade inventories in the United States in both the retail and foodservice channels. In Foods, our ice cream, tea and culinary products businesses achieved good sales growth. In ice cream, the most significant contributions came from the Breyers Parlor take home range and from new Popsicle...

  • Page 19
    .... Unilever consumer product businesses are being supplied with innovative tea products from our East African plantations. In the Middle East, sales stagnated in adverse business conditions and we concentrated on maintaining market positions. 2001 results compared with 2000 at current exchange rates...

  • Page 20
    ...hair care, innovation and strong marketing support levels helped us to good results. Brand successes included the performance of Dove, Pond's, mod's hair and Lux in Japan and Vaseline shampoo in the Philippines. In Australasia, we achieved sales growth in ice cream and gained market share in laundry...

  • Page 21
    ... Latin America 5 680 Mexico sustained strong growth throughout the year. The key drivers have been: Sedal, which reached an 8% share in the hair care market in its first year since launch; further progress in spreads, deodorants and skin care; and a successful expansion of Holanda ice cream. In...

  • Page 22
    ... and the UK. However, we enjoyed double-digit growth in many smaller national markets and we improved profit margin overall. We are confident that foodservice will fulfil its potential as a major growth and innovation driver for the Foods division. Report of the Directors Unilever Annual Report...

  • Page 23
    ... growth across Europe. Culinesse, a highperformance, easy-to-use, liquid cooking product, was successfully launched in 11 European countries. In the US, an enterprising, cross-functional initiative that looked at all aspects of margarine marketing captured the Unilever Annual Report & Accounts...

  • Page 24
    ... delivered excellent sales growth and much improved profits. The strength of our portfolio was demonstrated by the success of Ben & Jerry's in the US super-premium market, during its first full year as a Unilever business. In line with our commitment to a world-class supply chain, we closed eight...

  • Page 25
    ... tea continued, with launches in Egypt, South Africa and Eastern Europe. 99 00 01 99 00 01 99 00 422 % Change Ice cream In ice cream, our acquisition of Ben & Jerry's further strengthened our leadership position, giving us a presence in the super premium sector for the first time. We plan...

  • Page 26
    ...UK with a spicy variant Stir it Up. In Australia, we successfully launched Continental ethnic noodle sauces. In Europe, our market leading position in mayonnaise and mustard was extended by the acquisition of Amora Maille, the major player in these categories in France. In North America, Just 2 Good...

  • Page 27
    ... help ensure future growth. In HPC, as in Foods, we reorganised our global research and development network, bringing research and development into the division. The HPC Executive team is now responsible for assigning research priorities and resources, with a new network of global technology centres...

  • Page 28
    ... series of long-term supply and service contracts with major international customers. Implementation of a comprehensive plan for simplifying the product line, organisation and supply chain across Europe commenced. Operations in North America were consolidated under a common management whose priority...

  • Page 29
    ... within two months and contributed towards a 12% worldwide growth in our hair care business. The launch has projected Unilever into a clear number one position in Japan, the second largest hair care market, with Lux, mod's hair and now Dove. Unilever Annual Report & Accounts and Form 20-F 2001

  • Page 30
    ... performance in its core category of skin care, where it remains the world's leading cleansing product, the brand proved to be equally robust when extended into other markets. The launch of Dove deodorant in Europe, Latin America and North America was a major success. In Japan, the Dove portfolio...

  • Page 31
    FINANCIAL REVIEW > 28 The figures quoted in this review are in euros, at current rates of exchange, unless otherwise stated. The profit and loss and cash ï¬,ow information is translated at average rates of exchange for the relevant year and the balance sheet information at year-end rates of ...

  • Page 32
    ... our US business, resulted in an exchange loss on translation of opening balances and of movements of â,¬1 069 million. Profit retained, after accounting for dividends and for the retranslation impact, decreased by â,¬527 million to â,¬6 619 million. Report of the Directors Unilever Annual Report...

  • Page 33
    ... group financing companies that is most appropriate to the particular country and business concerned. Unilever maintains access to global debt markets through an infrastructure of short-term debt programmes (principally US domestic and euro commercial paper programmes) and long-term debt programmes...

  • Page 34
    ...operates as a service centre and is governed by policies and plans agreed by the Executive Committee of the Board. In addition to policies, guidelines and exposure limits, a system of authorities and extensive independent reporting covers all major areas of activity. Performance is monitored closely...

  • Page 35
    ...generally sold through its sales force and through independent brokers, agents and distributors to chain, wholesale, co-operative and independent grocery accounts, foodservice distributors and institutions. Products are distributed through distribution centres, satellite warehouses, company-operated...

  • Page 36
    ... share price appreciation and dividends paid to show the total return to the shareholder. The absolute level of the TSR will vary with stock markets, but the relative position reï¬,ects the market perception of overall performance relative to a reference group. Unilever Annual Report & Accounts...

  • Page 37
    ... Business Presidents, see pages 37 to 39. The directors have set out a number of areas for which the Boards have direct responsibility for decision-making. They meet to consider the following corporate events and actions: > Agreement of quarterly results announcements > Approval of the Annual Report...

  • Page 38
    ... Risk Committee The Corporate Risk Committee currently comprises the Unilever Annual Report & Accounts and Form 20-F 2001 Financial Director, the Foods Director, the Home & Personal Care Director, the Personnel Director, the General Counsel, the Head of Corporate Audit and the Controller. It meets...

  • Page 39
    ... Code ('the Code') appended to the United Kingdom Listing Rules. As already explained, the Boards control the Company through the Executive Committee. Responsibilities are shared by the Chairmen of NV and PLC, while the Advisory Directors perform many of the functions of the supervisory board...

  • Page 40
    ... 3 May 2000. Previous posts include: Business Group President, Latin America 96/99. President, Lever Brothers USA 93/96. Chairman, Langnese-Iglo 89/92. Director, Hartford Financial Services Group, Inc. * Member Executive Committee of the Boards Unilever Annual Report & Accounts and Form 20-F 2001

  • Page 41
    ... Member Corporate Risk Committee Business Presidents - Foods Regions Manfred Stach, Europe. Chairman, Europe Committee Aged 59. Joined Unilever 1970. Appointed Business President 1998. Previous position: Business Group President Africa. Kees van der Graaf, Ice Cream and Frozen Foods Europe Aged 51...

  • Page 42
    ...Annual General Meetings in 2005 and 2004 respectively. Report of the Directors Business Presidents - Home & Personal Care Regions Ralph Kugler, Europe Aged 46. Joined Unilever 1979. Appointed Business President 1999. Previous position: Business Group President Latin America. Charles Strauss, North...

  • Page 43
    ... Remuneration Committee believes that the level of remuneration of Dutch or British directors should be in line with that of executive directors of major international industrial companies based in Continental Europe or the United Kingdom respectively who have similar responsibilities to a Unilever...

  • Page 44
    ... rate of inï¬,ation, of the Group's earnings per share BEIA over the financial year preceding the date of grant. The Remuneration Committee decided that for 2001 the targets and levels of grant would be: Par level of grant as percentage of normal allocation Report of the Directors EPS BEIA growth...

  • Page 45
    ...up a personal shareholding in NV and PLC equivalent in value to one and a half times their salary. Directors' service contracts NV and PLC's Articles of Association require that all directors retire from office at every Annual General Meeting. Directors' contracts of service with the Unilever Group...

  • Page 46
    ... pay. It is our policy that a significant part of directors' emoluments are performance related, but the Remuneration Committee believes that this should not affect the directors' reasonable expectations of a pension in line with that provided by major companies in Continental Europe and the United...

  • Page 47
    ... into euros at the exchange rate prevailing at date of appointment. (13) Remained in PLC scheme on a transitional basis throughout 2001 but pension arrangements are in the process of being transferred to NV scheme as a result of a change in base country. Unilever Annual Report & Accounts and...

  • Page 48
    ... 2001, acquired by the Unilever Employee Share Trusts for the purpose of satisfying options under the PLC Executive Option plans and the UK Employee Sharesave Plan. Further information, including details of the NV and PLC ordinary shares acquired by certain group companies in connection with other...

  • Page 49
    ...February 2002 the directors and officers as a group held options to purchase the following ordinary shares: 4 118 683 shares of 1.4p 465 527 shares of â,¬0.51 574 828 shares of 1.4p (held as 143 707 ADRs) 226 334 shares of â,¬0.51 of the New York Registry Unilever Annual Report & Accounts and Form...

  • Page 50
    ... American Depositary Receipts under the Executive Plan (1 ADR equivalent to 4 shares). (g) NA Employee Purchase Plan over NV New York shares. (h) Granted in the year on the basis, where applicable, of earnings per share in the prior year. See also notes on page 48. Unilever Annual Report & Accounts...

  • Page 51
    ... $52.43 $57.75 On date of retirement Directors' Conditional Share Awards under Total Shareholder Return - Long-Term Incentive Plan Rights to ordinary shares in PLC and NV were granted, vested or lapsed in 2001 as follows: Name Share type 1 January Granted(1) Vested Lapsed 31 December Performance...

  • Page 52
    ...senior management at individual operating company and Business Group level. Business Groups, each of which has its own Risk Committee, review, on an ongoing basis, the risks faced by their group and the related internal control arrangements and provide written reports to the Corporate Risk Committee...

  • Page 53
    ... the Company's compliance with the seven provisions of the Combined Code specified for our review by the United Kingdom's Financial Services Authority and we report if it does not. We are not required to consider whether the directors' statements on internal control cover all risks and controls or...

  • Page 54
    ...relevant rate of exchange to the dividends and other rights and benefits attaching to each £1 nominal of ordinary share capital of PLC, as if each such unit of capital formed part of the ordinary capital of one and the same company. For additional information please refer to Control of Unilever on...

  • Page 55
    ... its Annual Review and Annual Report & Accounts and Form 20-F Unilever adheres to the disclosure recommendations of the OECD Guidelines for Multinational Enterprises. Group companies Group companies are those companies in whose share capital NV or PLC holds an interest directly or indirectly...

  • Page 56
    ... and associated companies or sales between group companies. Total turnover includes the Group share of the turnover of joint ventures. Turnover is recognised when the risks and rewards of the underlying products and services have been substantially transferred to the customer. Transfer pricing The...

  • Page 57
    ...on earnings per share. All amounts are related to continuing operations as defined by United Kingdom Financial Reporting Standard 3. References relate to notes on pages 57 to 88, which form an integral part of the consolidated financial statements. Accounting policies of the Unilever Group are set...

  • Page 58
    ...ow from operating activities 25 Dividends from joint ventures Returns on investments and servicing of finance 26 Taxation Capital expenditure and financial investment 26 Acquisitions and disposals 26 Dividends paid on ordinary share capital Special dividend Cash ï¬,ow before management of liquid...

  • Page 59
    ... 869 PLC: Called up share capital 20 Share premium account Other reserves 22 Profit retained 21 222 154 (540) 2 303 2 139 Total capital employed 29 747 29 276 Capital and reserves include amounts relating to preference shares in NV which under United Kingdom Financial Reporting Standard 4 are...

  • Page 60
    ... TO THE CONSOLIDATED ACCOUNTS Unilever Group > 57 1 Segmental information â,¬ million Europe â,¬ million North America â,¬ million Africa, Middle East & Turkey â,¬ million Asia & Pacific â,¬ million Latin America â,¬ million Total Analysis by geographical area 2001 Group turnover (a) Share of...

  • Page 61
    NOTES TO THE CONSOLIDATED ACCOUNTS Unilever Group > 58 1 Segmental information continued â,¬ million Oil & dairy based foods and bakery â,¬ million Ice cream & beverages â,¬ million Culinary & frozen foods â,¬ million Home care & professional cleaning â,¬ million Personal care â,¬ million Other ...

  • Page 62
    ... Ice cream & beverages â,¬ million Culinary & frozen foods â,¬ million Home care & professional cleaning â,¬ million Personal care â,¬ million Other operations â,¬ million Analysis by operation 2001 Group turnover At constant 2000 exchange rates Exchange rate adjustments At current 2001 exchange...

  • Page 63
    ... â,¬ million Ice cream & beverages â,¬ million Culinary & frozen foods â,¬ million Home care & professional cleaning â,¬ million Personal care â,¬ million Other operations â,¬ million Analysis by operation Depreciation and amortisation 2001 At constant 2000 exchange rates Exchange rate adjustments...

  • Page 64
    ... information continued â,¬ million Oil & dairy based foods and bakery â,¬ million Ice cream & beverages â,¬ million Culinary & frozen foods â,¬ million Home care & professional cleaning â,¬ million Personal care â,¬ million Other operations â,¬ million Analysis by operation Total assets 2001 Total...

  • Page 65
    ...(3) Staff costs: Remuneration of employees Emoluments of directors as managers Pension costs: Defined benefit schemes: Regular cost Special termination benefits Other Amortisation of surpluses/deficits 17 Defined contribution schemes Post-retirement health benefits Social security costs Total...

  • Page 66
    ...has been charged to the accounts, of which net â,¬1.4 billion is exceptional. To date the total incurred is â,¬3.9 billion of which â,¬3.4 billion is exceptional. Also in exceptional items in 2001 is the profit on the sale of â,¬811 million in respect of the brands to secure regulatory approval for...

  • Page 67
    ... 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 vested. For the calculation of combined ordinary capital the exchange rate of £1 = Fl. 12...

  • Page 68
    ...380 70 Dividends per â,¬0.51 share of NV ordinary capital Interim Final Total 0.50 1.06 1.56 Pence 2001 0.48 0.95 1.43 Pence 2000 0.40 0.87 1.27 Pence 1999 10 529 10 982 Financial Statements (248) 298 (264) 392 Dividends per 1.4p share of PLC ordinary capital Interim Final Total 4.65 9.89...

  • Page 69
    ...Total net funds/(debt) (23 199) (26 468) Current investments include short-term deposits, government securities and A- or higher rated money and capital market instruments. â,¬ million â,¬ million 2001 2000 12 Stocks â,¬ million â,¬ million 2001 2000 Raw materials and consumables Finished goods...

  • Page 70
    ...13 820 29 741 (a) The negative amount shown in 2001 relates to the exchange difference on the currency swap used to swap certain euro borrowings into sterling. Unilever Annual Report & Accounts and Form 20-F 2001 (a) The 11% interest rate relates to one leg of a cross-currency interest swap of an...

  • Page 71
    ... permitted by United Kingdom Financial Reporting Standard 13, or because the amounts are not material. Unilever operates an interest rate management policy aimed at optimising net interest and reducing volatility. The Group's financial position is largely fixed by fixed rate long-term debt issues...

  • Page 72
    ...(a) Net of refunds received from pension funds totalling â,¬297 million. (b) In addition a fair value adjustment of â,¬466 million was made to Bestfoods pension prepayments. In most countries the Group operates defined benefit plans based on employee pensionable remuneration and length of service...

  • Page 73
    ... companies provide other post-retirement benefits (mainly post-retirement medical benefit plans) to a number of retired employees in certain countries, principally the United States, under several different plans which are predominantly unfunded. These other post-retirement plans are accounted...

  • Page 74
    ... ACCOUNTS Unilever Group > 71 17 Pensions and similar obligations continued US GAAP accounting: The following tables summarise the balance sheet impact, as well as the benefit obligations, assets, funded status and economic assumptions associated with the key defined benefit pension plans...

  • Page 75
    ... in assumed health care cost trend rates would have the following effects: â,¬ million 1% point increase â,¬ million 1% point decrease Effect on total of service and interest cost components Effect on post-retirement benefit obligation 13 92 (12) (82) Unilever Annual Report & Accounts and Form...

  • Page 76
    ... new NV preference shares 31 December As required by United Kingdom Financial Reporting Standard 4 capital and reserves can be analysed as follows: Equity: Ordinary capital Non-equity: 7% Cumulative Preference 6% Cumulative Preference 4% Cumulative Preference 5 euro cents Cumulative Preference Total...

  • Page 77
    .... This capital is eliminated in consolidation. It carries the right to nominate persons for election as directors at general meetings of shareholders. The subsidiaries mentioned above have waived their rights to dividends on their ordinary shares in NV. For more information see 'Control of Unilever...

  • Page 78
    ... liabilities arise in respect of litigation against companies in the Group, investigations by competition authorities and obligations under environmental legislation in various countries. These are not expected to give rise to any material loss. Unilever Annual Report & Accounts and Form 20-F 2001

  • Page 79
    ... businesses are included in the consolidated accounts from their respective dates of acquisition. The following tables set out the effect of acquisitions of group companies in 2001 on the consolidated balance sheet. Acquisition accounting (purchase accounting) has been applied in all cases. The fair...

  • Page 80
    ... â,¬ million 2001 â,¬ million 2000 â,¬ million 1999 Group operating profit Depreciation and amortisation Changes in working capital: Stocks Debtors Creditors Pensions and similar provisions less payments Restructuring and other provisions less payments Elimination of (profits)/losses on disposals...

  • Page 81
    ... dividend paid Dividends and other payments to minority shareholders Total Capital expenditure and financial investment Purchase of tangible fixed assets Disposal of tangible fixed assets Acquisition/disposal of fixed investments Purchase of own shares (employee share plans) Total Acquisitions...

  • Page 82
    ... number of executives for special performance. Awards will vest provided they are still employed by Unilever three or five years after the award. (vi) The North American Performance Share Plan A long-term incentive plan for North American managers awarding Unilever shares if company and personal...

  • Page 83
    ...Other plans: North America, South Africa and United Kingdom. Group (a): The standard framework for these countries means, in principle, an annual grant of options over NV shares, at the same grant date, exercise price (the market price on the grant date) and grant size (including part-time employees...

  • Page 84
    ... Risk-free interest rate NV New York shares option value information (b) Fair value per option (c) Valuation assumptions Expected option term Expected volatility Expected dividend yield Risk-free interest rate Actual compensation costs recognised (â,¬ million) (b) Weighted average of options granted...

  • Page 85
    ... from the date of grant and have a maximum term of ten years. In addition, managers working in India can participate in an Executive Option Plan relating to Hindustan Lever Limited's shares. As these are neither NV nor PLC shares, no figures for this plan are included in this note. A summary of the...

  • Page 86
    ... of options granted during each period. Estimated using Black Scholes option pricing method. Fair value per option of the NV Executive Option Plan. Fair value per option of the PLC Executive Option Plan. Fair value per option of the NA Executive Option Plan. Unilever Annual Report & Accounts and...

  • Page 87
    ... in Unilever shares. The Company matches this with the same number of shares on condition that all shares are held for the agreed period, and that the manager is still employed by Unilever at the end of this period. The North American managers participate in the North American Share Bonus Plan, the...

  • Page 88
    ... of the status of the TSR - Long-Term Incentive Plan as at 31 December 2001 and changes during the year ended on that date is presented below: Number of shares 2001 Weighted average price NV shares of â,¬0.51 Outstanding at 1 January Granted Exercised Forfeited/Expired Outstanding at 31 December...

  • Page 89
    ... Share Plan During 2000 and 2001 a number of executives have been awarded the right to receive NV and PLC shares at a specified date in the future between 2001 and 2003, on the condition that they will still be employed by Unilever at that time. No directors participate in this plan. A summary...

  • Page 90
    ... Share Plan North American Performance Share Plan - - 499 184 - 54 000 - - - 73 122 - 8 000 - 451 257 538 733 - - 894 072 1 900 58 319 80 964 - - 121 875 260 (i) When under a North American Plan, in the form of PLC ADR's and NV New York Shares respectively. Unilever Annual Report & Accounts...

  • Page 91
    ... Total capital employed (5 036) 20 576 11 894 11 233 661 5 342 (1 757) 41 5 056 20 576 (6 419) 20 941 9 424 8 593 831 4 962 200 55 6 300 20 941 (438) 9 171 3 132 2 988 144 1 520 1 757 623 2 139 9 171 (1 768) 8 335 4 661 4 473 188 1 442 (200) 563 1 869 8 335 Unilever Annual Report & Accounts...

  • Page 92
    ...fixed investments Interest (d) Profit on ordinary activities before taxation Profit on ordinary activities after taxation Net profit Normal dividends on ordinary capital Special dividends on ordinary capital Preference dividends Profit for the year retained Combined earnings per share (e) Euros...

  • Page 93
    ...off purchased goodwill in the year of acquisition as a movement in profit retained. Return on capital employed and net gearing are also inï¬,uenced but to a lesser extent. (i) Net profit margin includes the profit on the sale of the speciality chemicals businesses in 1997. Unilever Annual Report...

  • Page 94
    ... (before exceptional items) Net gearing (adjusted) Net operating assets Ratio of earnings to fixed charges Funds from operations after interest and tax (before exceptional items) over lease adjusted net debt Weighted average cost of capital Unilever Annual Report & Accounts and Form 20-F 2001

  • Page 95
    ... 2 823 48 5 174 Net operating assets Foods Home & Personal Care Other Operations Speciality Chemicals 29 093 2 852 385 32 330 Capital expenditure Foods Home & Personal Care Other Operations Speciality Chemicals 810 678 25 1 513 (a) The principal speciality chemicals businesses were sold in July...

  • Page 96
    ... on exchange rates between US dollars and guilders, euros and US dollars, sterling and guilders, and euros and sterling. These translation rates were used in preparation of the accounts. 2001 2000 1999 1998 1997 Financial Statements Year end $1 = Fl. â,¬1 = $ £1 = Fl. â,¬1 = £ Annual average...

  • Page 97
    ...fit, combined earnings per share and capital and reserves of the application of United States generally accepted accounting principles (US GAAP). â,¬ million 2001 â,¬ million 2000 â,¬ million 1999 Net profit as reported in the consolidated profit and loss account Attributable to: NV PLC US GAAP...

  • Page 98
    ... accounting policy applied to goodwill and intangible assets purchased after 1 January 1998 and US GAAP as applicable up to the end of 2001. Profit or loss on disposal of businesses Unilever calculates profit or loss on sale of businesses after writing back any goodwill previously charged directly...

  • Page 99
    ... the United States Unilever files reports and information with the United States Securities and Exchange Commission (SEC), and such reports and information can be inspected and copied at the SEC's public reference facilities in Washington DC, Chicago and New York. Unilever Annual Report & Accounts...

  • Page 100
    ... next Annual Return of Unilever PLC. The main activities of the companies listed below are indicated according to the following key: Holding companies Foods Home & Personal Care Other Operations Unless otherwise indicated, the companies are incorporated and principally operate in the countries under...

  • Page 101
    ...Inc. Bestfoods Europe (Group) Ltd. Diversey Lever, Inc. Good Humor-Breyers Ice Cream (2) Henri's Food Products Co., Inc. Slim•Fast Foods Company Unilever Bestfoods(2) Unilever Capital Corporation Unilever Cosmetics International (2) Unilever Home & Personal Care USA (2) Unilever United States, Inc...

  • Page 102
    ... Unilever Australia Ltd. Bangladesh - PLC 61 Lever Brothers Bangladesh Ltd. China - NV Bestfoods Guangzhou Ltd. Unilever (China) Ltd. 77 Unilever Company Ltd. Unilever Foods (China) Company Ltd. Unilever Services (Shanghai) Company Limited. Wall's (China) Company Ltd. China S.A.R. - NV Unilever Hong...

  • Page 103
    ... de Produtos Alimentares, Lda. % North America United States of America - NV (75%); PLC (25%) 50 The Pepsi/Lipton Partnership % Africa, Middle East and Turkey Israel 50 Israel Edible Products Ltd. Kenya 50 CPC Kenya Ltd. Morocco 50 Knorr Bestfoods Morocco South Africa 50 Robertsons Foodservice (Pty...

  • Page 104
    ...the accounts of NV have been included in the consolidated accounts. The profit and loss account mentions only income from fixed investments after taxation as a separate item. The balance sheet includes the proposed profit appropriation. The Board of Directors 6 March 2002 Unilever Annual Report...

  • Page 105
    ... shown in the company accounts and the notes thereto is less than the amount shown in the consolidated balance sheet, mainly because only part of the profits of group companies has been distributed in the form of dividends. Contingent liabilities These are not expected to give rise to any material...

  • Page 106
    ... as auditors of NV. The present appointment will end at the conclusion of the Annual General Meeting. J A A van der Bijl S G Williams Joint Secretaries of Unilever N.V. 6 March 2002 Corporate Centre Unilever N.V. Weena 455 PO Box 760 3000 DK Rotterdam Unilever Annual Report & Accounts and Form 20...

  • Page 107
    ... Financial Reporting Standard 4. As permitted by Section 230 of the United Kingdom Companies Act 1985, PLC's profit and loss account does not accompany its balance sheet. On behalf of the Board of Directors N W A FitzGerald Chairman A Burgmans Vice-Chairman 6 March 2002 Unilever Annual Report...

  • Page 108
    ... one year: Amounts owed by group companies Other Total debtors 1 928 79 2 007 1 894 44 1 938 The proposed appropriation of the profit of PLC is as follows: Interim and recommended final dividends Profit for the year retained 417 13 375 30 Unilever Annual Report & Accounts and Form 20-F 2001

  • Page 109
    ... greater diversity. Every Unilever company in the United Kingdom has an equal opportunities policy and actively pursues equality of opportunity for all employees. An on-line open advertising system has been implemented for management vacancies in the UK, allowing any employee an opportunity to...

  • Page 110
    ... that to pay equal dividends at the current exchange rates, either NV or PLC would have to pay a dividend that was unreasonable (ie, substantially larger or smaller in its own currency than the dividend it paid in the previous year). Shareholder information Unilever Annual Report & Accounts and...

  • Page 111
    ...'s Registrars 48 hours before the meeting, either in paper or electronic format. You can cast one vote for each PLC ordinary 1.4p share you hold. United Holdings Limited, which owns half of the deferred stock, is not permitted to vote at General Meetings. Unilever Annual Report & Accounts and Form...

  • Page 112
    ... in the Equalisation Agreement: one unit equals 10.7 NV shares or 71.4 PLC shares. We add these together to find the total number of units of combined share capital. Then the amount of net profit in euros which is attributable to ordinary capital is divided by this total number of units to find...

  • Page 113
    ... way it is planning to vote. As a holder of Nedamtrust certificates you can exchange your Nedamtrust certificate at any time for the underlying ordinary or preference share (or vice versa). In the past the majority of votes cast by ordinary and preference shareholders at NV meetings were cast by...

  • Page 114
    ...of holder Number of shares held Approximate % held Shareholder information Deferred Stock Ordinary shares Naamlooze Vennootschap Elma United Holdings Limited Trustees of the Leverhulme Trust and the Leverhulme Trade Charities Trust Brandes Investment Partners L.P. The Capital Group Companies, Inc...

  • Page 115
    ... in exchange rates. However, over time the prices of NV and PLC shares do stay in close relation to each other, in particular because of our equalisation arrangements. If you are a shareholder of NV, you have a direct interest in a Dutch legal entity, your dividends will be paid in euros (converted...

  • Page 116
    ...35 26 Annual high and low prices for 1999, 1998 and 1997: 1999 1998 1997 Shareholder information NV per â,¬0.51 ordinary share in Amsterdam (in â,¬ NV per â,¬0.51 ordinary share in New York (in $) PLC per 1.4p (1997-98: 1.25p) ordinary share in London (in pence) PLC per American Share in New York...

  • Page 117
    ... Netherlands of which such shares form a part of the business property; these dividends qualify for a reduction of Netherlands withholding tax on dividends from 25% to 15% (to 5% if the beneficial owner is a company which directly holds at least 10% of the voting power of NV shares and to 0% if the...

  • Page 118
    ...part of the business property of a permanent establishment of the individual in the United Kingdom or, in the case of a shareholder who performs independent personal services, pertain to a fixed base situated in the United Kingdom. Shareholder information Unilever Annual Report & Accounts and Form...

  • Page 119
    ...United Kingdom ACT (Advance Corporation Tax) from that date (see note 1 above). Note 4: On 10 May 1999 the share capital was consolidated on the basis of 100 new ordinary shares with a nominal value of 1.4p for every 112 existing ordinary shares with a nominal value of 1.25p. Unilever Annual Report...

  • Page 120
    ...49 Research and development, patents and licences, etc. 8 Trend information 4-5,11-27 Directors, senior management and employees Directors and senior management 34,37-39 Compensation 40,44-48,69-72 Board practices 34-35,37-39,42 Employees 10 Share ownership 45-48,79-87 Major shareholders and related...

  • Page 121
    ... expense A business which is jointly controlled by the Group and one or more external partners Par value Net operating income Income (or earnings) Retained earnings Income statement Net income attributable to ordinary shareholders Long-term liabilities other than debt and specific accounts payable...

  • Page 122
    ...6907 e-mail: corporate.relations-london @unilever.com Unilever United States, Inc. Corporate Relations Department 390 Park Avenue, New York NY 10022-4698 Telephone + 1 212 906 4240 Telefax + 1 212 906 4666 e-mail: corporate.relations-newyork @unilever.com Unilever Annual Report & Accounts and Form...

  • Page 123
    ... be obtained without charge from Unilever's Corporate Relations Departments. Unilever Annual Review 2001 Including Summary Financial Statement. Available in English or Dutch, with financial information in euros, sterling and US dollars. Unilever Annual Report & Accounts and Form 20-F 2001 Available...

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    Design: BamberForsyth:Fitch Typesetting: Pauffley Limited Printed by: St Ives Westerham Press Ltd

  • Page 125
    Unilever N.V. Weena 455, PO Box 760 3000 DK Rotterdam T +31 (0) 10 217 4000 F +31 (0) 10 217 4798 Unilever PLC PO Box 68, Unilever House Blackfriars, London EC4P 4BQ T +44 (0)20 7822 5252 F +44 (0)20 7822 5951 www.unilever.com