Unilever 2014 Annual Report Download

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Ths PDF s a secton of the Unlever Annual Report and Accounts 2014 It does not contan
suffcent nformaton to allow a full understandng of the results of the Unlever roup
and the state of affars of Unlever NV, Unlever PL or the Unlever roup For further
nformaton the Unlever Annual Report and Accounts 2014 should be consulted
ertan sectons of the Unlever Annual Report and Accounts 2014 have been audted These
are on pages 84 to 135, 137 to 139, and those parts noted as audted wthn the Drectors’
Remuneraton Report on pages 65 to 77
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DISCLAIMER

Table of contents

  • Page 1
    ... and dissemination of financial statements may differ from legislation in other jurisdictions. 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. The Annual Report and Accounts does not...

  • Page 2
    MAKING SUSTAINABLE LIVING COMMONPLACE ANNUAL REPORT AND ACCOUNTS 2014 GOVERNANCE AND FINANCIAL REPORT

  • Page 3
    ...balance sheet Consolidated cash flow statement Notes to the consolidated financial statements 1 Accounting information and policies 2 Segment information 3 Gross profit and operating costs 4 Employees 4A Staff and management costs 4B Pensions and similar obligations 4C Share-based compensation plans...

  • Page 4
    ... the Boards' agenda, ensures the Directors receive accurate, timely and clear information, and promotes effective relationships and open communication between the Executive and Non-Executive Directors. BOARDS The Boards of NV and PLC have ultimate responsibility for the management, general affairs...

  • Page 5
    ... investor relations matters. Details of the training provided to the Directors in 2014 can be found in the Chairman's Statement on page 2. page 2 of the Strategic Report BOARD EVALUATION Each year the Boards formally assess their own performance with the aim of helping to improve the effectiveness...

  • Page 6
    ...and United Holdings Limited comprise the members of the Nominating and Corporate Governance Committee. LISTINGS NV has listings of shares and depositary receipts for shares on Euronext Amsterdam and of New York Registry Shares on the New York Stock Exchange. Unilever Annual Report and Accounts 2014...

  • Page 7
    ... at PLC's 2015 AGM. During 2014 Unilever group companies purchased 6,058,733 PLC American Depositary Receipt of shares, each representing one PLC ordinary share with a nominal value of 31/9p for â,¬201.07 million to facilitate grants made in connection with its employee compensation programmes. This...

  • Page 8
    ... the Unilever Leadership Executive and other senior management. The slides shown and an audio-recording of the presentations Unilever Annual Report and Accounts 2014 VOTING Shareholders can vote in person or by proxy. Similar arrangements apply to holders of depositary receipts issued for NV shares...

  • Page 9
    ... the Audit Committee (as described in its report on pages 56 and 57, the NV Board believes that the risk management and control systems provide reasonable assurance that the financial statements do not contain any errors of material importance and the risk management and control systems have worked...

  • Page 10
    ... Living Report 2014 (to be published in May 2015) for further detail. page 11 of the Strategic Report www.unilever.com/sustainable-living THE UNITED KINGDOM PLC, being a company that is incorporated in the UK and listed on the London Stock Exchange, is required to state how it has applied the...

  • Page 11
    ...or Code Policies was granted in 2014 to any of the persons falling within the scope of the SEC requirements. Our Code of Business Principles can be found on our website. www.unilever.com/corporategovernance Risk Management and Control: Following a review by the Disclosure Committee, Audit Committee...

  • Page 12
    ... the management of risk and for reviewing the effectiveness of Unilever's risk management and internal control systems. The Boards have established a clear organisational structure with well defined accountabilities for the principal risks that Unilever faces in the short, medium and long term. This...

  • Page 13
    ... strategies into projects and category plans, develop products and relevant brand communication and successfully roll out new products to our consumers. WHAT WE ARE DOING TO MANAGE THE RISK PORTFOLIO MANAGEMENT Unilever's strategic investment choices will affect the long-term growth and profits...

  • Page 14
    ...affecting a Unilever product. We have policies and procedures designed to ensure the health and safety of our employees and the products in our facilities, and to deal with major incidents or crises including business continuity and disaster recovery. Commodity price risk is actively managed through...

  • Page 15
    ...remit dividends to the parent company. Currency rates, along with demand cycles, can also result in significant swings in the prices of the raw materials needed to produce our goods. Unilever may face liquidity risk, ie difficulty in meeting its obligations, associated with its financial liabilities...

  • Page 16
    ... part of Unilever's business operations. Unilever is subject to local, regional and global laws and regulations in such diverse areas as product safety, product claims, trademarks, copyright, patents, competition, employee health and safety, the environment, corporate governance, listing and...

  • Page 17
    ... CEO January 2009 Appointed Director October 2008 Key areas of experience: Finance, consumer, sales & marketing Current external appointments: The Dow Chemical Company (NED); World Business Council for Sustainable Development (Chairman, Executive Committee); UN Global Compact (Board member); UK...

  • Page 18
    ... to ULE October 2013 Joined Unilever 1987 Previous Unilever posts include: Hindustan Unilever Limited (CEO); Home and Personal Care, India (Executive Director); Home Care (VP); Fabric Wash (Category Head); Laundry and Household Cleaning, Asia (Regional Brand Director) Current external appointments...

  • Page 19
    ... correctly applied these policies. At the request of the Board the Committee considered whether the 2014 Annual Report and Accounts was fair, balanced and understandable and whether it provided the necessary information for shareholders to assess the Group's performance, business model and strategy...

  • Page 20
    .... It reviewed: • the Controller's Quarterly Risk and Control Status Report, including Code of Business Principles cases relating to frauds and financial crimes and significant complaints received through the Unilever Code Support Line; • the 2014 corporate risks for which the Audit Committee had...

  • Page 21
    ... the Plan • Product quality and safety • Corporate reputation MEETINGS Meetings are held quarterly and ad hoc as required. The Committee Chairman reports the conclusions to the Boards. Four meetings were held in 2014. Following the Committee's terms of reference, Unilever's corporate risks and...

  • Page 22
    ... the beginning of 2014. Having discussed Unilever's policies and processes for product safety, including incident management, members considered that Unilever adopts a systematic approach that focuses on prevention. Louise Fresco Chairman of the Corporate Responsibility Committee Laura Cha Further...

  • Page 23
    ...and its status as a • Recommendations for new Non-Executive Directors • Planning for Chairman succession • Monitoring of emerging Corporate Governance developments • Active participation in relevant Corporate Governance consultations 60 Governance Unilever Annual Report and Accounts 2014

  • Page 24
    ... exchange listings; • Understanding of human resources and remuneration in large international companies; • Experience in financial administration, accounting policies and internal control; • Risk management of multinationals with share listings; • Understanding of the markets where Unilever...

  • Page 25
    ... strategy and long-term shareholder value creation. • Review of relative competitive position of reward levels for Unilever's 'Top 100' executive management population. • Review of progress in implementing SHARES. FORMAT OF THE DIRECTORS' REMUNERATION REPORT Our Directors' Remuneration Report...

  • Page 26
    ... key shareholders to get their feedback in advance of recommending changes to shareholders. Base salary Fixed allowance and other benefits Annual bonus Longer-term: MCIP Longer-term: GSIP Paul Walsh Chairman of the Compensation Committee Unilever Annual Report and Accounts 2014 Governance...

  • Page 27
    ... The Committee believes that Unilever's risk management process provides the necessary control to prevent inappropriate risk-taking. When the Committee reviews the structure and levels of performancerelated pay for Executive Directors and other members of the Unilever Leadership Executive (ULE...

  • Page 28
    ... and cash flow. The measures chosen for the annual and long-term incentives support the delivery of this objective. Performance measures focus management on the delivery of a combination of top-line revenue growth and bottom-line profit growth that Unilever believes will build shareholder value over...

  • Page 29
    ... determining annual bonus awards, the Committee will also consider personal performance and the quality of results in terms of both business results and leadership, including corporate social responsibility and progress against the delivery of USLP goals. The Committee determined that free cash flow...

  • Page 30
    ... of the value of awards of performance-related payments to Executive Directors in the event of a significant downward restatement of the financial results of Unilever. This includes the annual bonus together with any awards that have been made and/or vested shares under the Share Matching Plan, the...

  • Page 31
    ... 2014 Fixed allowance Medical insurance cover and actual tax return preparation costs Provision of death-in-service benefits and administration Unilever 2005 Share Save Plan(2) Payment to protect against difference between employee social security obligations in country of residence versus UK...

  • Page 32
    ... leadership, including the management of Unilever's financial risk exposure and driving enterprise wide efficiencies. As a consequence of that review, Jean-Marc Huët was awarded a personal performance multiplier of 110%. This resulted in Jean-Marc Huët receiving a bonus of 88% of his base salary...

  • Page 33
    ...2013 bonus paid in 2014 invested by the CEO and CFO. The following numbers of matching shares were awarded on 14 February 2014 (a): CEO: PLC - 0 NV - 41,775 CFO: PLC - 4,036 NV - 4,036 Maximum vesting results in 150% of target awards vesting. 70 Governance Unilever Annual Report and Accounts 2014

  • Page 34
    ... the average closing share prices and the euro/sterling/US dollar exchange rates from the 60 calendar days prior to the measurement date. Executive Directors are required to hold shares to the value of 100% of their shareholding requirement for 12 months post cessation of employment at Unilever, and...

  • Page 35
    ...they invest in PLC or NV shares or a 50/50 mix. Executive Directors receive a corresponding number of performance-related matching shares. Matching shares will be awarded in the same form as the investment shares (ie in PLC or NV shares or a 50/50 mix). On 14 February 2014, Paul Polman and Jean-Marc...

  • Page 36
    ...2015, Paul Polman received an award of 36,497 NV and 36,497 PLC performance-related shares and Jean-Marc Huët received an award of 22,576 NV and 22,576 PLC performance-related shares under the GSIP. SHARE SAVE PLAN (AUDITED) The Unilever PLC 2005 Share Save Plan is a UK tax-qualified, all-employee...

  • Page 37
    ...' REMUNERATION REPORT CONTINUED IMPLEMENTATION OF THE REMUNERATION POLICY IN 2015 FOR NON-EXECUTIVE DIRECTORS The Non-Executive Director fee levels were reviewed in 2014 and no changes were made to the sterling reference with the exception of the Vice Chairman position. With effect from the 2015 NV...

  • Page 38
    ...based on the average exchange rate over the year â,¬1 = US $1.3335). In addition, he received a restricted award of 2,760 ordinary shares with a nominal value of US $2.50 per share in the capital of The Dow Chemical Company. The shares include the rights to vote and to receive dividends thereon. The...

  • Page 39
    ...Dec 2013 Dec 2014 PERCENTAGE CHANGE IN REMUNERATION OF DIRECTOR UNDERTAKING THE ROLE OF CHIEF EXECUTIVE OFFICER The table below shows the percentage change from 2013 to 2014 for base salary, bonus and benefits (excluding pension) for both Paul Polman and all UK and Dutch management in Unilever. The...

  • Page 40
    ... the code of conduct in relation to executive remuneration consulting in the UK, which is available at www.remunerationconsultantsgroup.com. www.remunerationconsultantsgroup.com CLARIFICATION STATEMENT After publication of our Directors' Remuneration Report 2013 the Committee issued a clarification...

  • Page 41
    ... Code (in the case of the NV parent company accounts), give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and the undertakings included in the consolidation taken as a whole; and • The Strategic Report includes a fair review of the development...

  • Page 42
    ... Company Accounts give a true and fair view of the state of the Group's and of Unilever PLC's affairs as at 31 December 2014 and of the Group's profit for the year then ended; • the Consolidated Financial Statements have been properly prepared in accordance with International Financial Reporting...

  • Page 43
    ... tax positions. For each risk noted above refer to related disclosure within the Report of the Audit Committee (page 56), accounting policies and financial disclosures within the notes to the Consolidated Financial Statements. 80 Financial statements Unilever Annual Report and Accounts 2014

  • Page 44
    ... of size and risk profile of the Group across the components. The work on all components was performed by component auditors. The Group audit team visited component locations in the USA, the UK, the Netherlands, India, Indonesia, Switzerland, Brazil, South Africa, Germany, Turkey, Russia, Singapore...

  • Page 45
    ... Report and Financial Statements taken as a whole is fair, balanced and understandable and provides the information necessary for shareholders to assess the Group's performance, business model and strategy; or • the Report of the Audit Committee does not appropriately address matters communicated...

  • Page 46
    ...preparation and fair presentation of the N.V. Company Accounts in accordance with United Kingdom accounting standards and Part 9 of Book 2 of the Netherlands Civil Code; and • such internal control as management determines is necessary to enable the preparation of the Financial Statements that are...

  • Page 47
    FINANCIAL STATEMENTS UNILEVER GROUP CONSOLIDATED INCOME STATEMENT for the year ended 31 December Notes â,¬ million 2014 â,¬ million 2013 â,¬ million 2012 Turnover Operating profit After (charging)/crediting non-core items Net finance costs Finance income Finance costs Pensions and similar ...

  • Page 48
    ...profit in respect of the fair value of share options and awards granted to employees. (c) 2014 includes the impact of the purchase of Estate shares (see note 24). 2013 includes the impact of the acquisition of non-controlling interests. Unilever Annual Report and Accounts 2014 Financial statements...

  • Page 49
    FINANCIAL STATEMENTS UNILEVER GROUP CONTINUED CONSOLIDATED BALANCE SHEET as at 31 December Notes â,¬ million 2014 â,¬ million 2013 Assets Non-current assets Goodwill Intangible assets Property, plant and equipment Pension asset for funded schemes in surplus Deferred tax assets Financial assets ...

  • Page 50
    ... share-based compensation Other adjustments Cash flow from operating activities Income tax paid Net cash flow from operating activities Interest received Purchase of intangible assets Purchase of property, plant and equipment Disposal of property, plant and equipment Acquisition of group companies...

  • Page 51
    ..., and from translation of monetary assets and liabilities at year-end exchange rates, are recognised in the income statement except when deferred in equity as qualifying hedges. In preparing the consolidated financial statements, the balances in individual group companies are translated from their...

  • Page 52
    ... 2017. RECENT ACCOUNTING DEVELOPMENTS ADOPTED BY THE GROUP The following new and amended standards are relevant to the Group and have been adopted for the first time in these financial statements, with no material impact: • Amendments to IAS 32 'Financial Instruments: Presentation' provides...

  • Page 53
    ... group companies. Discounts given by Unilever include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs. Turnover is recognised when the risks and rewards of the underlying products have been substantially transferred to the customer...

  • Page 54
    ... is the Unilever Leadership Executive (ULE) as explained in the Corporate Governance section. The home countries of the Unilever Group are the Netherlands and the United Kingdom. Turnover and non-current assets for these two countries combined, United States (being the largest country outside the...

  • Page 55
    ... or disposal of group companies. â,¬ million 2014 â,¬ million 2013 â,¬ million 2012 Turnover Cost of sales(a) of which: Distribution costs Gross profit(a) Selling and administrative expenses(a) of which: Brand and Marketing Investment(a) Research and Development Operating profit (a) 48,436 (28...

  • Page 56
    ... number of employees during the year Asia/AMET/RUB The Americas Europe 99 42 32 173 â,¬ million 2014 97 43 34 174 â,¬ million 2013 94 43 35 172 â,¬ million 2012 Key management compensation Salaries and short-term employee benefits Non-Executive Directors' fees Post-employment benefits Share...

  • Page 57
    ... where the plans are based. The Group has developed policy guidelines for the allocation of assets to different classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order to limit the cost to the Group of the benefits provided. To...

  • Page 58
    ... countries where they are situated. INCOME STATEMENT The charge to the income statement comprises: Notes â,¬ million 2014 â,¬ million 2013 â,¬ million 2012 Charged to operating profit: Defined benefit pension and other benefit plans: Current service cost Employee contributions Special termination...

  • Page 59
    .../(deficit) position of the pension and other post-employment benefit plans at the balance sheet date were: â,¬ million 2014 Other post­ employment benefit plans â,¬ million 2013 Other postemployment benefit plans Pension plans Pension plans Fair value of assets Present value of liabilities...

  • Page 60
    ... million 31 December 2014 Other post­ employment benefit plans â,¬ million 31 December 2013 Other postemployment benefit plans Pension plans Pension plans Total Assets Equities Total - Europe - North America - Other Fixed Income Total - Government bonds - Investment grade corporate bonds - Other...

  • Page 61
    ... 170 721 The Group's funding policy is to periodically review the contributions made to the plans while taking account of local legislation. 4C. SHARE-BASED COMPENSATION PLANS The fair value of awards at grant date is calculated using appropriate pricing models. This value is expensed over their...

  • Page 62
    ... Fair value per share award during the year â,¬27.80 â,¬28.91 â,¬25.02 ADDITIONAL INFORMATION At 31 December 2014, shares and options in NV or PLC totalling 19,428,560 (2013: 23,326,247) were held in respect of share-based compensation plans of NV, PLC and its subsidiaries, including North...

  • Page 63
    ... that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised. 100 Financial statements Unilever Annual Report and Accounts 2014

  • Page 64
    ... right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The following amounts, determined after appropriate offsetting, are shown in the consolidated balance sheet: â,¬ million Assets 2014 â,¬ million Assets 2013...

  • Page 65
    ... the year 2038 of shares in a group company (refer below) and (ii) the exercise of share options by employees. On 19 May 2014, a subsidiary of Unilever PLC purchased the shares convertible to ordinary shares in 2038 (see note 24). Due to the repurchase, the average number of combined share units is...

  • Page 66
    ... balance sheet date' on page 128. Total dividends declared in relation to 2014 were â,¬1.14 (2013: â,¬1.08) per NV ordinary share and £0.90 (2013: £0.91) per PLC ordinary share. 9. GOODWILL AND INTANGIBLE ASSETS GOODWILL Goodwill is initially recognised based on the accounting policy for business...

  • Page 67
    ...Foods The Americas Foods Asia/AMET/RUB 5.9 3.7 1.6 1.6 1.5 0.4 5.8 3.6 1.4 1.6 1.3 0.4 Value in use has been calculated as the present value of projected future cash flows. A pre-tax discount rate of 7.4% (2013: 7.4%) was used. Unilever Annual Report and Accounts 2014 104 Financial statements

  • Page 68
    ... over which to review and consider annual performances before applying a fixed terminal value multiple to the final year cash flows. The growth rates used are consistent with the prudent end of the range of assumptions from our annual planning and strategic planning processes. We have performed...

  • Page 69
    ... of associates Long-term trade and other receivables Fair value of biological assets Other non-financial assets(a) 52 42 265 42 256 657 57 38 207 34 227 563 (a) Other non-financial assets mainly relate to tax deposits paid. 106 Financial statements Unilever Annual Report and Accounts 2014

  • Page 70
    ... credit risk is low across territories and so trade receivables are considered to be a single class of financial assets. Balances are considered for impairment on an individual basis rather than by reference to the extent that they become overdue. Unilever Annual Report and Accounts 2014 Financial...

  • Page 71
    ... 12,031 Due after more than one year Accruals Others 109 269 378 Total trade payables and other liabilities 12,984 Included in others are third party royalties, certain derivatives and dividends to non-controlling interests. 108 Financial statements Unilever Annual Report and Accounts 2014

  • Page 72
    ... are designed to: • maintain a competitive balance sheet in line with A+/A1 rating (see below); • secure funding at lowest costs for the Group's operations, M&A activity and external dividend payments (see below); • protect the Group's financial results and position from financial risks (see...

  • Page 73
    ... balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. Our current long-term credit rating...

  • Page 74
    ... information in relation to HUL is shown below. HUL Balance sheet as at 31 December Non-current assets Current assets Current liabilities Non-current liabilities HUL Comprehensive income for the year ended 31 December Turnover Profit after tax Total comprehensive income HUL Cash flow for the year...

  • Page 75
    ... exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively. (b) Financial liabilities include â,¬1 million (2013: â,¬6 million) of secured liabilities. 112 Financial statements Unilever Annual Report and Accounts 2014

  • Page 76
    ...value adjustment following the fair value hedge accounting of a fix-to-float interest rate swap. Information in relation to the derivatives used to hedge bonds and other loans within a fair value hedge relationship is shown in note 16. Unilever Annual Report and Accounts 2014 Financial statements...

  • Page 77
    ...in our cash flow could undermine the Group's credit rating, impair investor confidence and also restrict the Group's ability to raise funds. The Group maintained a cautious funding strategy, with a positive cash balance throughout 2014. This was the result of cash delivery from the business, coupled...

  • Page 78
    ... in balance sheet Undiscounted cash flows 2014 Non-derivative financial liabilities: Preference shares Bank loans and overdrafts Bonds and other loans Finance lease creditors Other financial liabilities Trade payables excluding social security and sundry taxes Issued financial guarantees Notes...

  • Page 79
    ...cash or by physical delivery. Commodity derivatives are generally designated as hedging instruments in cash flow hedge accounting relations. All commodity forward contracts are done in line with approvals from the Global Commodity Executive which is chaired by the Unilever Chief Supply Chain Officer...

  • Page 80
    ...rates on a full-year basis would have led to an additional â,¬42 million debit in equity from derivatives in cash flow hedge relationships (2013: â,¬39 million debit). (a) See the split in fixed and floating-rate interest in the following table. Unilever Annual Report and Accounts 2014 Financial...

  • Page 81
    ... FINANCIAL STATEMENTS UNILEVER GROUP CONTINUED 16B. MANAGEMENT OF MARKET RISK CONTINUED The following table shows the split in fixed and floating rate interest exposures, taking into account the impact of interest rate swaps and cross-currency swaps: â,¬ million 2014 â,¬ million 2013 Cash and cash...

  • Page 82
    ... on the trade date. At that point, they are classified as: (i) held-to-maturity investments; (ii) loans and receivables; (iii) available-for-sale financial assets; or (iv) financial assets at fair value through profit or loss. Unilever Annual Report and Accounts 2014 Financial statements 119

  • Page 83
    ...of investments in a number of companies and financial institutions in Europe, India and the US, including â,¬86 million (2013: â,¬84 million) of assets in a trust to fund benefit obligations in the US (see also note 4B on page 97). 120 Financial statements Unilever Annual Report and Accounts 2014

  • Page 84
    ...payables is considered to be equal to the carrying amount of these items due to their short-term nature. The instruments that have a fair value that is different from the carrying amount are classified as Level 2 for both 2013 and 2014. Unilever Annual Report and Accounts 2014 Financial statements...

  • Page 85
    ... liquid, and for unlisted securities, valuation techniques are used. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same and discounted cash flow calculations. 122 Financial statements Unilever Annual Report and Accounts 2014

  • Page 86
    ... been assessed by reference to current market rates for comparable leasing arrangements. POLICIES AND PROCESSES USED IN RELATION TO THE CALCULATION OF LEVEL 3 FAIR VALUES Assets valued using Level 3 valuation techniques are primarily made up of long-term cash receivables and unlisted investments...

  • Page 87
    ... 2013 Operating lease and other commitments fall due as follows: Within 1 year Later than 1 year but not later than 5 years Later than 5 years 390 1,171 766 2,327 335 913 539 1,787 1,034 950 41 2,025 906 778 25 1,709 124 Financial statements Unilever Annual Report and Accounts 2014

  • Page 88
    ... of 2013 Unilever recognised provisions of â,¬120 million related to these cases, disclosed within non-core items. In the second half of 2014 these provisions were increased by a further â,¬30 million. Ongoing compliance with competition laws is of key importance to Unilever. It is Unilever's policy...

  • Page 89
    ... during the year on the Group. The results of disposed businesses are included in the consolidated financial statements up to their date of disposal: Disposals Goodwill and intangible assets Other non-current assets Current assets Trade creditors and other payables Net assets sold (Gain)/loss on...

  • Page 90
    ... above-average longer-term growth prospects. Langholm Capital II was launched in 2009. Unilever has invested â,¬35 million in Langholm II, with an outstanding commitment at the end of 2014 of â,¬40 million (2013: â,¬42 million). Unilever Annual Report and Accounts 2014 Financial statements 127

  • Page 91
    ... quarterly dividend with the 2014 fourth quarter results of â,¬0.2850 per NV ordinary share and £0.2177 per PLC ordinary share. On 3 February 2015 Unilever issued a â,¬750 million 0.50% fixed rate bond which will mature in seven years. 128 Financial statements Unilever Annual Report and Accounts...

  • Page 92
    ... affect the amount of profit and assets shown in the Unilever Group financial statements. The Directors consider that those companies not listed are not significant in relation to Unilever as a whole. Full information as required by Articles 2:379 and 2:414 of the Dutch Civil Code has been filed by...

  • Page 93
    NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS UNILEVER GROUP CONTINUED 27. PRINCIPAL GROUP COMPANIES AND NON-CURRENT INVESTMENTS CONTINUED % United Kingdom Unilever UK Ltd. Unilever PLC(ii) Unilever U.K. Holdings Ltd. Unilever UK & CN Holdings Ltd. United States of America Alberto - Culver USA, Inc...

  • Page 94
    ... consolidated accounts of the Unilever Group. Therefore, and in accordance with Article 2:402 of the Dutch Civil Code, the profit and loss account only reflects the income from fixed investments after taxation and other income and expenses after taxes. Under the terms of Financial Reporting Standard...

  • Page 95
    ... the profit and loss account as it arises. DIVIDENDS Under Financial Reporting Standard 21 'Events after the Balance Sheet Date' (FRS 21), proposed dividends do not meet the definition of a liability until such time as they have been approved by shareholders at the Annual General Meeting. Therefore...

  • Page 96
    ... are unsecured and repayable on demand. SHARE PREMIUM ACCOUNT The share premium shown in the balance sheet is not available for the issue of bonus shares and for repayment without incurring withholding tax payable by Unilever N.V. Unilever Annual Report and Accounts 2014 Financial statements 133

  • Page 97
    ... â,¬ million 2014 â,¬ million 2013 â,¬ million 2014 â,¬ million 2013 Company accounts Unilever N.V. Unilever Group excluding non-controlling interest 2,221 5,171 1,682 4,842 1 January Profit for the year Dividends Realised profit/(loss) on shares/certificates held to meet employee share options...

  • Page 98
    .... POST BALANCE SHEET EVENT On 20 January 2015 the Directors announced a dividend of â,¬0.285 per Unilever N.V. ordinary share. The dividend is payable from 11 March 2015 to shareholders registered at close of business on 6 February 2015. SPECIAL CONTROLLING RIGHTS UNDER THE ARTICLES OF ASSOCIATION...

  • Page 99
    ..., related safeguards. From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law...

  • Page 100
    ...a cash flow statement is not included, as the cash flows are included in the consolidated cash flow statement of the Unilever Group. ON BEHALF OF THE BOARD OF DIRECTORS M Treschow Chairman P Polman Chief Executive Officer 3 March 2015 Unilever Annual Report and Accounts 2014 Financial statements...

  • Page 101
    ...SUBSIDIARIES Shares in group companies are stated at cost less any amounts written off to reflect a permanent impairment. Any impairment is charged to the profit and loss account as it arises. FINANCIAL INSTRUMENTS The company's accounting policies under United Kingdom generally accepted accounting...

  • Page 102
    ... per Unilever PLC ordinary share. The dividend is payable from 11 March 2015 to shareholders registered at close of business on 6 February 2015. Deferred taxation Other provisions (5) - (5) 7 1 8 1 Of which due within one year - Unilever Annual Report and Accounts 2014 Financial statements...

  • Page 103
    ... profit 31, 84, 90-92 Outlook 6 Payables 108 Pensions and similar obligations 93-98 Personal Care 10, 18, 32, 90 Post balance sheet events 128, 135, 139 Preference shares and dividends 40, 99, 112 Principal group companies 129-130 Property, plant and equipment 105-106 Provisions 123 Receivables...

  • Page 104
    ... to support long-term growth; customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain; the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; successful execution of...

  • Page 105
    ...to develop innovative sanitation businesses and promote hygiene communications to millions of the poorest consumers in Ghana, Bangladesh, Kenya and Zambia. And we are providing support through the Domestos Toilet Academy, a market-based model that improves sanitation in India and Vietnam. By the end...