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122 Unilever Annual Report and Accounts 2006
Financial Statements (continued)
30 Related party transactions
The following related party balances existed with associate or joint venture businesses at 31 December:
€million €million
Related party balances 2006 2005
Trading and other balances due (to)/from joint ventures 91 85
Trading balances due (to)/from associates (14) (8)
Joint ventures
As discussed in note 33 on page 123, Unilever completed the restructuring of its Portuguese business as at 1 January 2007. Balances owed by
FIMA at 31 December 2006 were €91 million (2005: €85 million).
Associates
Following the sale of DiverseyLever, our institutional and industrial cleaning business, to Johnson Professional Holdings Inc. in 2002, Unilever has
aone-third equity stake in the combined JohnsonDiversey business, with an option to exit the business from 2007. This option had a fair value
of zero at 31 December 2006 and 31 December 2005. At 31 December 2006 the outstanding balance payable to JohnsonDiversey Holdings
Inc. was €14 million (2005: €8 million). Sales agency fees to JohnsonDiversey were incurred of approximately €68 million in 2006
(2005: €76 million; 2004: €68 million).
Langholm Capital Partners invests in private European companies with above-average longer-term growth prospects. It has invested in: Lumene
OY, a Finnish personal care business specialising in natural personal care for fair skins in harsh climates; Dorset Cereals, a UK manufacturer of
cereal products aimed at the healthy eating and luxury niche of the cereals market; Just Retirement, a specialist financial services company
based in the UK, providing customised retirement solution for those in and approaching retirement, and Elvi, a UK retailer of plus-size women’s
clothing with 25 owned shops and 66 concession outlets. An IPO of Just Retirement took place in 2006. As a result of sale of shares during the
IPO, Langholm returned €13 million to Unilever. Langholm remains a majority shareholder of Just Retirement. To build business opportunities
that fit our core business interests in Foods and Home and Personal Care, we have committed €97 million to Langholm Capital Partners on a
total of €242 million funds raised. At 31 December 2006, the outstanding balance with Langholm Capital Partners was €45 million (not
material in 2005).
Other related parties
In September 2006 Harish Manwani, President Asia Africa and member of the Unilever Executive Team, and his wife purchased an apartment
from Hindustan Lever Limited, a group company ultimately owned by PLC, for Rs.118 million (€2042 255). The purchase was made at full
market value via an open bidding/tendering process managed by independent property consultants. Mr Manwani is also Non-Executive
Chairman of Hindustan Lever Limited a company listed on, among others, the National Stock Exchange of India and the Bombay Stock
Exchange.The independent Directors of Hindustan Lever Limited, including the Chairman of the Audit Committee were fully consulted.
31Key management personnel
For 2004 key management personnel included the Executive Directors, Non-Executive Directors and Business Presidents described on pages 68
and 69 of the 2004 Report and Accounts. Following a change in the management structurewhich took place in 2005 key management for
2005 and 2006 for reporting purposes became the members of the UEx together with the Non-Executive Directors described on page 46.
€million €million € million
Key management compensation 2006 2005 2004
Salaries and short-term employee benefits (14) (13) (21)
Non-Executive Directors’ fees (1) (1) (1)
Post-employment benefits (3) (4) (5)
Other long-term benefits (all share-based) (2) (1) (13)
Termination payments –(1) (2)
(20) (20) (42)
Of which:
Executive Directors (11) (16) (24)
Non-Executive Directors (1) (1) (1)
Other (8) (3) (17)
(20) (20) (42)
Details of the remuneration of Directors are given in the auditable part of the report of the Remuneration Committee as defined on page 49.
See also note 30 above for information on related party transactions.
Notes to the consolidated accounts Unilever Group