Unilever 2000 Annual Report Download

Download and view the complete annual report

Please find the complete 2000 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

Unilever Annual Report & Accounts
and Form 20-F 2000
meeting everyday needs of
people everywhere

Table of contents

  • Page 1
    Unilever Annual Report & Accounts and Form 20-F 2000 meeting everyday needs of people everyw here

  • Page 2
    .... This is Unilever's road to sustainable, profi table grow th for our business and long-term value creation for our shareholders and employees. Cautionary Statement This Annual Report & Accounts and Form 20-F 2000 contains forw ard-looking statements based on our best current information and w hat...

  • Page 3
    ... to Form 20-F Financial calendar and addresses Publications Website â- 112 116 116 117 119 121 122 123 124 124 1 Unilever N.V. (NV) is a public limited company registered in the Netherlands, w hich has listings of shares or certifi cates (depositary receipts) of NV on the stock exchanges in...

  • Page 4
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Financial highlights at current rates of exchange 2 Group turnover â,¬ million 2000 1999 1998 Group operating profit BEIA(a) â,¬ million Group operating profit â,¬ million 47 582 2000 1999 1998 4 595 4 293 5 729 2000 ...

  • Page 5
    ... cream, beverages and culinary and frozen foods businesses w as offset by a decline in oil and dairy based foods and bakery. Our cholesterol-low ering spreads are now market leading in Australia, Brazil, North America and key European markets. Building on its M editerranean image, the Bertolli brand...

  • Page 6
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Chairmen 's statement 4 show ed good progress in leading brands but overall sales w ere held back by a poor ice cream season and a decline in the ' tail' brands. Africa and M iddle East sales grew by 3% , w ith operating...

  • Page 7
    ... 's leading suppliers of fast moving consumer goods in foods, household care and personal product categories. We sold our European Bakery Supplies Business in the second half of the year and on 19 February 2001 w e announced an agreement to sell the Bestfoods baking business for a debt free price of...

  • Page 8
    ...important market shares in toothpastes, skin care and hair products in many countries. Toothpastes are sold w idely under the Signal, Close-Up and M entadent brands w hile in skin care Pond's, Vaseline and Fair & Lovely are important internationally. Hair shampoos are available internationally under...

  • Page 9
    ... t of â,¬149 million and the sale of Elizabeth Arden, completed in January 2001, w hich gave rise to the recognition of a loss of â,¬742 million after w riting back goodw ill w hich w as charged direct to shareholders' funds on the acquisition of the business in 1989. Exceptional items also include...

  • Page 10
    ... - Culinary products in France • Ben & Jerry's - Ice cream primarily in the United States • Codepar/SPCD - Home & personal care in Tunisia • Cressida - Foods and Home & personal care in Central America • Jaboneria - Foods and Home & personal care in Ecuador • Slim • Fast - Nutritional...

  • Page 11
    ...fourth quarter. Personal care achieved high single digit volume grow th, driven by deodorants and hair products. Overall, low er prices held back sales grow th, as w e passed on low er edible oil input costs, repositioned our spread and tea brands in Russia and responded to competitive pressures in...

  • Page 12
    ... 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 grow th. In ice cream, the most signifi cant contributions came from the Breyers Parlor take home range and from new Popsicle...

  • Page 13
    ... market Home & Personal Care businesses w as completed successfully, although there w ere short-term customer service difficulties. The size and scope of the new organisation have strengthened our position in the marketplace. Our Prestige fragrance brands returned to modest grow th in North America...

  • Page 14
    ...our products w ith a more effective sales approach. In the M iddle East, our Egyptian Foods and Home & Personal Care companies w ere successfully merged. We developed our out-of-home tea portfolio by introducing Lipton branding into thousands of independent tea shops - creating new Unilever channels...

  • Page 15
    ... of marketing support. Our businesses in South East Asia and Japan generated double digit sales grow th in each quarter. Progress w as broad-based, in both category and geography. In skin care and hair care, innovation and strong marketing support levels helped us to good results. Brand successes...

  • Page 16
    ...In personal care, innovation helped deodorants, hair and oral to another good year. Overall personal care sales w ere up and w e increased our market leadership in several categories. In particular, excellent progress w as achieved in Brazil. In Foods, volumes fell in ice cream - though market share...

  • Page 17
    ... outstanding talent. It follow ed several other complementary acquisitions: Slim • Fast, the US market leader in w eight management products; Ben & Jerry's, w hich gave us a strong foothold in premium ice cream, and Amora M aille, w hich brought us strong culinary brands and geographic expansion...

  • Page 18
    ... ts from our oil and dairy based foods and bakery business grew by 6% and margins improved, mainly in Europe. This reï¬, ected low er input costs and the benefi ts of restructuring and supply chain efficiencies. Our yellow fats volumes fell in a declining market. In Western Europe and North America...

  • Page 19
    ... cold Lipton Yellow brands recorded good grow th, particularly in Portugal, France, Arabia, Egypt and Poland. Geographic expansion of Lipton ready-to-drink (RTD) iced tea continued, w ith launches in Egypt, South Africa and Eastern Europe. In October, w e reached a major distribution agreement w ith...

  • Page 20
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Operating review by category 18 In North America, impulse volumes rose but our packaged ice cream sales and pro fi ts fell due to increased price competition. We virtually completed the w orldw ide roll-out of our heart...

  • Page 21
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Operating review by category Culinary and frozen foods continued Our brand leadership w as further improved by the very successful roll-out of meal solutions in key European countries - such as the 4 Salti in Padella ...

  • Page 22
    ... the economic recovery in South East Asia and Latin America. The major portfolio change w as the sale of much of our Elizabeth Arden business and the recon fi guration of our Prestige brands, scheduled for completion in early 2001. Home care and professional cleaning Group turnover â,¬ million...

  • Page 23
    ... important positions in toothpastes, skin care and hair care products in many countries. Our personal care brands include Dove, Sunsilk , Lux, Rexona/Sure, Pond's, Suave, Axe/Lynx and Vaseline. Our personal care business enjoyed another very good year. Increases in both turnover and operating pro...

  • Page 24
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Operating review by category 22 Personal care continued and, coupled w ith the continued success of Pond's, w e have now built a skin business in Japan approaching â,¬200 million. One of the year's marketing priorities w...

  • Page 25
    ... goods manufacturers to form Transora, an online trading netw ork. We believe that such netw orks w ill reduce our business costs and improve efficiencies. We are also w orking w ith distributors and other customers to sell products over the net. We have already started selling frozen food online...

  • Page 26
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Operating review - other information 24 People year end in thousands Europe North America Africa & M iddle East Asia & Pacifi c Latin America Total 1996 101 31 64 78 30 304 1997 84 23 58 74 30 269 1998 82 23 57 72 31 ...

  • Page 27
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Financial review The fi gures quoted in this review are in euros, at current rates of exchange, unless otherw ise stated. The profi t and loss and cash ï¬, ow information is translated at average rates of exchange for ...

  • Page 28
    ... The payment of the special dividend w as responsible for a reduction of the Weighted Average Cost of Capital (WACC) of some 0.5% . WACC is calculated as the real cost of equity multiplied by the market capitalisation, plus the real after taxation interest cost of debt multiplied by the market value...

  • Page 29
    ...33% ). The funds are mainly to support day-to-day needs and are predominantly invested in short-term bank deposits and high-grade marketable securities. 27 Finance and liquidity Unilever's fi nancial strategy supports the objective of a top third position in the Total Shareholder Return peer group...

  • Page 30
    ... plantations businesses may use forw ard contracts for physical delivery of palm oil and tea under strictly controlled policies and exposure limits. We did not have any outstanding futures contracts at the end of 2000. Distribution Unilever's products are generally sold through its sales force and...

  • Page 31
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Financial review accounts, foodservice distributors and institutions. Products are distributed through distribution centres, satellite w arehouses, company-operated and public storage facilities, depots and other ...

  • Page 32
    ...This happens for a number of reasons, including changes in exchange rates. How ever, over time the prices of NV and PLC shares do stay in close relation to each other, in particular because of our equalisation arrangements. NV and PLC are holding and service companies. Our businesses are carried out...

  • Page 33
    ... the Committee is supplied w ith necessary information. Corporate Risk Committee The Corporate Risk Committee currently comprises the Financial Director, the Foods Director, the Home & Personal Care Director, the Personnel Director, the General Counsel, the Head of Corporate Audit and the Controller...

  • Page 34
    ... 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, w hile the Advisory Directors perform many of the functions of the supervisory board...

  • Page 35
    ...Business Group President, North East Asia 96/98. Chairman, Nippon Lever Japan 92/96. Group Treasurer 86/89. Charles Strauss Business President Home & Personal Care North America and Global Prestige Business Aged 58. Joined Unilever 1986 upon Unilever's acquisition of Rag ú Foods. Appointed director...

  • Page 36
    ... Executive of BP 92/95 and Chairman 95/97. Home & Personal Care Regions Ralph Kugler*, Europe Aged 45. Joined Unilever 1979. Appointed Business President 1999. Previous position: Business Group President Latin America. Charles Strauss, North America and Global Prestige Business. Unilever Director...

  • Page 37
    ... America Aged 47. Joined Unilever 1976. Business President from 1 April 2001. Previous position: Senior VicePresident, Home & Personal Care Category Group. Global Businesses In accordance w ith the Articles of Association of NV and PLC, all existing directors w ill retire from office at the Annual...

  • Page 38
    ... group of Unilever directors concerned. Comparison is also made w ith the remuneration of other employees w ithin Unilever. The Remuneration Committee's policy is to seek to link rew ard closely to performance by using merit pay increases and bonuses based on both corporate and personal performance...

  • Page 39
    ...(k) plan w here appropriate) nor the resulting benefi ts are included in the table of pension entitlements. Policy: directors' pensions The aim of the Remuneration Committee is that pension and other related benefi ts should be in line w ith good practice by major companies in the Netherlands and...

  • Page 40
    ... Age is that established for the purposes of the respective early retirement scheme for the director, and generally does not coincide w ith the termination date of his employment under the terms of his service contracts (see 'Service contracts' on page 41). (3) The increase in accrued pension...

  • Page 41
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Remuneration Report Directors' interests: share capital The interest in the share capitals of NV and PLC and their group companies of those w ho w ere directors at the end of 2000 and of their families w ere as show n in ...

  • Page 42
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Remuneration report 40 Directors' emoluments The aggregate emoluments of the directors w ere as follow s: â,¬ 2000 1999 2000 £ 1999 Salary Allow ances and value of benefi ts in kind Performance related payments Total ...

  • Page 43
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Remuneration report Service contracts NV and PLC's Articles of Association require that at every Annual General M eeting all the directors shall retire from office. All directors' contracts of service w ith the Unilever ...

  • Page 44
    ... of 1.4p in the form of American Depositary Receipts Shares of Fl. 1.12 of the New York Registry Shares of Fl. 1.12 of the New York Registry NA Executive Option Plan NA Employee Purchase Plan - - - 5 800 30 764 As at 28 February 2001 the directors and officers as a group held options to...

  • Page 45
    ... Plan. The Netherlands Employee Option Plan. Number of PLC shares the subject of options under the International Plan. UK Employee Sharesave Plan. Number of NV New York shares the subject of options under the International Plan. Number of PLC shares the subject of options in the form of American...

  • Page 46
    Unilever Annual Report & Accounts and Form 20-F 2000 Report of the Directors Remuneration report 44 All share options are exercisable at a range of dates betw een 2001 and 2010 (see note 21 on page 65). No options lapsed unexercised during the year. The market price of the ordinary shares at the ...

  • Page 47
    ... by their group and the related internal control arrangements and provide w ritten reports to the Corporate Risk Committee. This is comprised mainly of Board members and chaired by the Financial Director. The Corporate Risk Committee is a Committee of the Board and maintains oversight, on behalf...

  • Page 48
    ... Code specifi ed for our review by the United Kingdom's Financial Services Authority and w e report if it does not. We are not required to consider w hether the directors' statements on internal control cover all risks and controls or to form an opinion on the effectiveness of the Group's corporate...

  • Page 49
    ... of NV to be equal in value at the relevant rate of exchange to the dividends and other rights and benefi ts 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. respectively. As explained...

  • Page 50
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Accounting information and policies Unilever Group 48 United Kingdom Financial Reporting Standard 19 'Deferred tax' becomes mandatory for accounting periods ending on or after 23 January 2002 and requires that full ...

  • Page 51
    ... in return for royalties or a fee. General services provided by central advisory departments, Business Groups and research laboratories are charged to operating companies on the basis of fees. Retirement benefits The expected costs of providing retirement pensions under defi ned benefi t plans...

  • Page 52
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Consolidated profi t and loss account Unilever Group for the year ended 31 December 50 â,¬ million 2000 1999 1998 Total turnover Continuing operations Acquisitions Less: Share of turnover of joint ventures 48 066 44 961...

  • Page 53
    ... 1998 Cash ï¬,ow from operating activities 27 Dividends from joint ventures Returns on investments and servicing of fi nance 28 Taxation Capital expenditure and fi nancial investment 28 Acquisitions and disposals 28 Dividends paid on ordinary share capital Special dividend 6 738 38 (798) (1 734...

  • Page 54
    ...Capital and reserves include amounts relating to preference shares in NV w hich under United Kingdom Financial Reporting Standard 4 are classifi ed as non-equity. M inority interests in group companies are substantially all equity interests. References relate to notes on pages 53 to 90, w hich form...

  • Page 55
    ... area: Europe North America Africa and M iddle East Asia and Pacifi c Latin America Group turnover By operation:(d) Foods - Oil & dairy based foods and bakery - Ice cream and beverages - Culinary and frozen foods Home care and professional cleaning Personal care Other Operations Group turnover...

  • Page 56
    ...1999 Exchange At current At constant rates 1999 rates 1997 rates adjustments 1998 At current 1998 rates Group turnover By operation:(d) Foods - Oil & dairy based foods and bakery - Ice cream and beverages - Culinary and frozen foods Home care and professional cleaning Personal care Other Operations...

  • Page 57
    ... Exchange At current At constant rates 1999 rates 1997 rates adjustments 1998 At current 1998 rates 55 Depreciation and amortisation charge By operation: Foods - Oil & dairy based foods and bakery - Ice cream and beverages - Culinary and frozen foods Home care and professional cleaning Personal...

  • Page 58
    ... ho consider w hether the services provided are compatible w ith maintaining the auditor's independence. By operation: Foods - Oil & dairy based foods and bakery - Ice cream and beverages - Culinary and frozen foods Home care and professional cleaning Personal care Other Operations (22) (260) (322...

  • Page 59
    ...: Foods - Oil & dairy based foods and bakery - Ice cream and beverages - Culinary and frozen foods Home care and professional cleaning Personal care Other Operations Europe is Unilever's domestic tax base. The reconciliation betw een the computed rate of income tax expense w hich is generally...

  • Page 60
    ...) 108 119 (11) (2) (984) Net book value 31 December (a) Arising on businesses purchased after 1 January 1998. (b) Balances currently provisional. See note 26 on page 70. Intangible assets principally consist of trademarks. Outside Europe: Group companies Taxes payable Deferred taxation of w hich...

  • Page 61
    ...1 337 140 1 477 Investments listed on a recognised stock exchange Unlisted investments 24 1 133 1 157 Current investments include short-term deposits, government securities and A- or higher rated money and capital market instruments. M arket value of listed investments M ovements during the year...

  • Page 62
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 60 15 Cash at bank and in hand â,¬ million 2000 1999 On call and in hand Repayment notice required 1 235 1 378 2 613 1 376 2 620 3 996 Interest rate... repayment date. 16...

  • Page 63
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 16 Borrow ings continued â,¬ million 2000 1999 61 Other group companies: United States 9.125% Notes 2000 Floating rate notes 2001 (US$) 6.750% Notes 2003 (US$) 6.875% ...

  • Page 64
    ... long-term liabilities: Unfunded pension plans Funded pension plans Post-retirement health benefi ts Less asset balances reclassifi ed as debtors due after more than one year 13 M ovements in deferred taxation: 1 January Currency retranslation Acquisition/disposal of group companies Pro...

  • Page 65
    ... disposal of Elizabeth Arden. Share capital and share premium On 9 June 1999 NV issued 211 473 785 cumulative preference shares to those shareholders w ho elected to receive shares instead of the special dividend. The 10 cents cumulative preference shares w ere issued at a notional value of Fl...

  • Page 66
    ...have arisen under the Equalisation Agreement. Any remaining surplus is then pooled and distributed amongst the holders of ordinary shares of both companies such that the amount payable on each Fl. 12 nominal of ordinary capital of NV is equal at the relevant rate of exchange to the amount payable on...

  • Page 67
    ...to directors and employees to acquire ordinary shares of NV and PLC and still outstanding at 31 December 2000 w ere as set out in the follow ing table. See also note 34 on pages 79 to 89. Number of shares Range of option prices per share Date normally exercisable NV Executive Option Plan (Shares of...

  • Page 68
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 66 21 Called up share capital continued Number of shares Range of option prices per share Date normally exercisable Netherlands Employee Option Plan (Shares of Fl. 1.12) ...

  • Page 69
    ... Financial Statements Notes to the consolidated accounts Unilever Group 21 Called up share capital continued Exercised In 1998 Date granted Option price per share Number of shares Exercised in 1999 Number of shares Exercised in 2000 Number of shares 67 PLC 1985 Executive Option Plans (Shares...

  • Page 70
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 68 21 Called up share capital continued To satisfy options granted under NV share option plans, North American stock option/purchase plans and the Restricted Share Plan, ...

  • Page 71
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 22 Profit retained â,¬ million NV PLC 69 2000 1999 1998 2000 1999 1998 Net profi t Preference dividends Normal dividends on ordinary capital Special dividend ...

  • Page 72
    ...On 4 October 2000, Unilever, through its subsidiary Unilever United States, Inc., acquired Bestfoods for a consideration of â,¬23.6 billion in cash. The bakery business of Bestfoods, and a number of other small businesses, are expected to be sold w ithin one year of the purchase date. The net assets...

  • Page 73
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 26 Acquisition and disposal of group companies continued Supplementary information relating to acquisition of Bestfoods These results are based on the accounting policies ...

  • Page 74
    ...expected from the sale of Elizabeth Arden. Other adjustments include â,¬859 million relating to goodw ill w ritten back on the Elizabeth Arden impairment and profi ts on disposals of businesses of â,¬167 million. Bestfoods accounted for â,¬(280) million of cash ï¬, ow from operating activities betw...

  • Page 75
    ... Sale of current investments (Increase)/decrease in cash on deposit (217) 1 428 1 253 2 464 (447) 4 020 2 102 5 675 (1 642) 290 (651) (2 003) Financing Issue of ordinary share capital (employee share plans) Issue/purchase of shares by group companies to/(from) minority shareholders Debt...

  • Page 76
    ... of short-term items, as permitted by United Kingdom Financial Reporting Standard 13, or because the amounts are not material. As a result of acquisitions, investments have been liquidated and fi xed rate debt has increased during 2000. Unilever operates an interest rate management policy aimed at...

  • Page 77
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 30 Financial instruments continued M aster netting agreements are in place for the majority of interest rate derivative instruments. The risk in the event of default by a ...

  • Page 78
    ... capital: NV PLC less: shares held by employee share trusts and companies Combined average number of share units for all bases except diluted earnings per share add: shares issuable in 2038 add: shares under option less: shares issuable at fair value Adjusted combined average number of share units...

  • Page 79
    ...(k) plans in the United States, the corresponding cost of w hich is included in Staff Costs under note 3 on page 56. Group companies provide other post-retirement benefi ts (mainly post-retirement medical benefi t plans) to a number of retired employees in certain countries, principally the United...

  • Page 80
    ... Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 78 33 Pension and other benefit plans continued US GAAP accounting: The follow ing tables summarise the balance sheet impact, as w ell as the benefi t obligations, assets, funded...

  • Page 81
    ... Plan') • the Unilever North America Employee Stock Purchase Plan (the 'NA Employee Purchase Plan') • the Restricted Share Plan All of these plans are described below. Grants of share options to directors and other senior executives in 1997 and subsequent years are made under the International...

  • Page 82
    ...is not less than 90% of the market value of the shares on a specifi ed date w ithin a 30 day period ending w ith the date on w hich the options w ere granted. Any discount from the market price is amortised over the fi ve year vesting period of the UK Employee Sharesave Plan. In 2000 options w ere...

  • Page 83
    ...Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 34 Equity based compensation plans continued The follow ing table summarises information about fi xed price stock options outstanding at 31 December 2000: Options Outstanding Number...

  • Page 84
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 82 34 Equity based compensation plans continued 2000 1999 1998 PLC Option value information Fair value per option (b) Valuation assumptions Expected option term Expected ...

  • Page 85
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 34 Equity based compensation plans continued The NV Executive Option Plan The NV Executive Option Plan provides for the granting of options to purchase shares of Unilever ...

  • Page 86
    ... Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 84 34 Equity based compensation plans continued The follow ing table summarises information about fi xed price stock options outstanding at 31 December 2000: Options Outstanding...

  • Page 87
    ...Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 34 Equity based compensation plans continued The follow ing table summarises information about fi xed price stock options outstanding at 31 December 2000: Options Outstanding Number...

  • Page 88
    ...of options to purchase a maximum of 3 200 000 shares in Unilever N.V. of the New York Registry, and from 1997 4 000 000 shares of Unilever PLC, to key employees of the Group. Under the NA Executive Option Plan, options are granted on a discretionary basis to acquire shares at market value on the day...

  • Page 89
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 86 34 Equity based compensation plans continued 2000 Weighted average price 1999 Weighted average price 1998 Weighted average price 87 Number of shares Number of shares...

  • Page 90
    ...option price of US$47.83, w hich represents a 10% discount to the market value on the grant date. This discount of US$4.4 million w as amortised over the 24-month vesting period of the plan. The third offering, also limited to 2 000 000 shares, w as held in 1999. Eligible employees can purchase betw...

  • Page 91
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 34 Equity based compensation plans continued The Restricted Share Plan During 2000 a number of executives have been aw arded the right to receive NV and PLC shares in 2003 ...

  • Page 92
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the consolidated accounts Unilever Group 90 35 Summarised accounts of the NV and PLC parts of the Group The follow ing summarised accounts present the profi t and loss account and balance sheet of the Unilever ...

  • Page 93
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Five year record Unilever Group The fi nancial data below show s key fi gures w hich are derived from the audited consolidated accounts of the Unilever Group for the last fi ve years and is qualifi ed by reference to ...

  • Page 94
    ... 2000 Cash ï¬,ow from operating activities Returns on investments and servicing of fi nance Taxation Capital expenditure and fi nancial investment Acquisitions and disposals Dividends paid on ordinary share capital Special dividend Cash ï¬,ow before management of liquid resources and financing...

  • Page 95
    ...times the operational lease costs. Weighted average cost of capital is calculated as the real cost of equity multiplied by the market capitalisation, plus the real after taxation interest cost of debt multiplied by the market value of the net debt, divided by the sum of the market values of debt and...

  • Page 96
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Five year record Unilever Group 94 By geographical area â,¬ million 1996 1997 1998 1999 2000 Group turnover Europe North America Africa and M iddle East Asia and Pacifi c Latin America 19 8 1 5 3 967 317 914 713 929 ...

  • Page 97
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Five year record Unilever Group By operation(a) â,¬ million 1996 1997 1998 1999 95 2000 Group turnover Foods Home & Personal Care Other Operations Speciality Chemicals (b) 19 15 1 3 825 693 157 165 21 18 1 1 332 674...

  • Page 98
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Five year record Unilever Group 96 Exchange rates and European Economic and M onetary Union Before 1 January 1999, the guilder w as a part of the European M onetary System ('EM S') exchange rate mechanism know n as the ...

  • Page 99
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Schedules Unilever Group Valuation and qualifying accounts â,¬ million Schedule II Additions Balance at 1 January Charge to profi t and loss account Charged to other accounts(a) Balance at 31 ...

  • Page 100
    Unilever Annual Report and Accounts and Form 20-F 2000 Financial Statements Additional information for United States investors Unilever Group 98 Unilever´s consolidated accounts are prepared in accordance w ith accounting principles w hich differ in some respects from those applicable in the ...

  • Page 101
    ...for internal use and requires costs incurred in the application development stage to be capitalised and amortised over their expected useful lives. SOP 98-1 w ould not have a material effect on Unilever's financial position or results of operations. United States SOP 98-5 'Reporting on the costs of...

  • Page 102
    ... Annual Report & Accounts and Form 20-F 2000 Financial Statements Additional information for United States investors Unilever Group 100 United States SAB 101 'Revenue Recognition in Financial Statements' is effective for the fourth quarter of fi scal year 2000. The SAB provides a summary...

  • Page 103
    ... to the next Annual Return of Unilever PLC. The main activities of the companies listed below are indicated according to the follow ing key: Holding companies Foods Home & Personal Care Other Operations H F P O as at 31 December 2000 % Europe continued Germany - NV Bestfoods Deutschland GmbH & Co...

  • Page 104
    ...Canada Inc. Unilever Canada Limited United States of America - NV (75% ); PLC (25% ) Arnold Foods Company, Inc.(1) Ben & Jerry's Foods Company (2) Bestfoods-Caribbean, Inc.(1) Bestfoods Europe (Group) Ltd.(1) DiverseyLever, Inc. Elizabeth Arden Co.(4) Entenmann's Inc.(1) Good Humor-Breyers Ice Cream...

  • Page 105
    ... Unilever Company Ltd. (CLS) Unilever Foods (China) Company Ltd. Unilever Service (Shanghai) Company Limited. Wall's (China) Company Ltd. China S.A.R. - NV Unilever Hong Kong Ltd. India - PLC 51 Hindustan Lever Ltd. (NV 2% ) Indonesia - NV P .T. Knorr/Indonesia (1) 85 P .T. Unilever Indonesia Japan...

  • Page 106
    ... Alimentares, Lda. F % North America United States of America - NV (75% ); PLC (25% ) 50 The Pepsi/Lipton Tea Partnership F % Africa and M iddle East Israel 50 Israel Edible Products Ltd.(1) F F (1) Kenya 50 CPC Kenya Ltd.(1) M orocco 50 Knorr Bestfoods M orocco F F South Africa 50 Robertsons...

  • Page 107
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Company accounts Unilever N.V. Balance sheet as at 31 December â,¬ million 2000 1999 105 Fixed assets Fixed investments Current assets Debtors Current investments Cash at bank and in hand Total current assets Creditors ...

  • Page 108
    ...Ordinary share capital Shares in group companies are stated at cost in accordance w ith Shares numbered 1 to 2 400 are held by a subsidiary of NV and a international accounting practice in various countries, in particular the subsidiary of PLC. Additionally, 9 417 914 Fl. 1.12 ordinary shares United...

  • Page 109
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Further statutory information Unilever N.V. The rules for profit appropriation in the Articles of Association (summary of Article 41) The profi t of the year is applied fi rstly to the reserves required by law or by the ...

  • Page 110
    ... in capital and reserves are classifi ed as equity as defi ned under United Kingdom Financial Reporting Standard 4. As permitted by Section 230 of the United Kingdom Companies Act 1985, PLC's profi t and loss account does not accompany its balance sheet. On behalf of the Board of Directors...

  • Page 111
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Notes to the company accounts Unilever PLC Fixed investments £ million Creditors £ million 109 1999 2000 1999 2000 Shares in group companies Book value of PLC shares held in connection w ith share options 2 266 176...

  • Page 112
    .... The directors' report of the United Kingdom group companies contain more details about how they have communicated w ith their employees during 2000. Equal opportunities and diversity Every Unilever company in the United Kingdom has an equal opportunities policy and actively pursues equality of...

  • Page 113
    Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements Further statutory information and other information Unilever PLC Supplier payment policies Individual operating companies are responsible for agreeing the terms and conditions under w hich business transactions w ith their ...

  • Page 114
    ... of NV and PLC are additional directors of United Holdings Limited. w ould be subject to any United Kingdom and Dutch tax and exchange control law s applicable at that time. The Equalisation Agreement also makes the position of the shareholders of both companies, as far as possible, the same...

  • Page 115
    Unilever Annual Report & Accounts and Form 20-F 2000 Shareholder Information Control of Unilever In either of these rare cases, NV and PLC could pay different amounts of dividend if the Boards thought it appropriate. The company paying less than the equalised dividend w ould put the difference ...

  • Page 116
    Unilever Annual Report & Accounts and Form 20-F 2000 Shareholder Information Control of Unilever 114 follow ing the recommendations of the Committee of Corporate Governance, the board of directors has confi rmed that shareholders may propose resolutions if • • they individually or together ...

  • Page 117
    Unilever Annual Report & Accounts and Form 20-F 2000 Shareholder Information Control of Unilever The major assets of both these trusts are PLC ordinary shares. When the w ill trusts w ere varied in 1983 the interests of the benefi ciaries of his w ill w ere also preserved. Four classes of special...

  • Page 118
    ...fi cant shareholders in PLC during the three years up to and including 2000. Information about exchange controls affecting security holders Unilever NV Under the Dutch External Financial Relations Act of 28 M ay 1980 the Government, the M inister of Finance and the Central Bank of Netherlands are...

  • Page 119
    ...all in registered form. In the United States, NV ordinary shares in registered form and PLC American Depositary Receipts, representing four PLC ordinary shares, are traded on The New York Stock Exchange. M organ Guaranty Trust Company of New York acts for NV and PLC as issuer, transfer agent and, in...

  • Page 120
    ... Shareholder Information Nature of the trading market 118 Annual high and low prices for 1996, 1997 and 1998: 1998 1997 1996 NV per Fl. 1 ordinary share in Amsterdam (in â,¬ ) NV per Fl. 1 ordinary share in New York (in US$) PLC per 1.25p ordinary share in London (in pence) PLC per American Share...

  • Page 121
    ...the position that the Netherlands w ithholding tax eligible for credit should be limited accordingly. Taxation on capital gains Under the Convention, if you are a United States resident or corporation and you have capital gains on the sale of shares of a Netherlands company, these are generally not...

  • Page 122
    Unilever Annual Report & Accounts and Form 20-F 2000 Shareholder Information Taxation for US residents 120 United Kingdom Taxation on dividends Under United Kingdom law income tax is not w ithheld from dividends paid by United Kingdom companies. Shareholders, w hether resident in the United ...

  • Page 123
    ... the exchange rates prevailing on that date. Note 3: It is not possible to make a direct comparison betw een PLC dividends paid before and after 6 April 1999 because of the abolition of United Kingdom ACT (Advance Corporation Tax) from that date (see note 1 above). Note 4: On 10 M ay 1999 the share...

  • Page 124
    ... 9A Offer and listing details 9B Plan of distribution 9C M arkets 9D Selling shareholders 9E Dilution 9F Expenses of the issue 10 Additional information 10A Share capital 10B M emorandum and articles of association 10C M aterial contracts 10D Exchange controls 10E Taxation 10F Dividends and paying...

  • Page 125
    Unilever Annual Report & Accounts and Form 20-F 2000 Shareholder Information Financial calendar and addresses Annual General M eetings NV PLC 10.30 am Wednesday 9 M ay 2001 Rotterdam 11.00 am Wednesday 9 M ay 2001 London 123 Announcements of results First Quarter First Half Year 27 April 2001 3 ...

  • Page 126
    ... publications can be obtained w ithout charge from Unilever's Corporate Relations Departments. Unilever Annual Review 2000 Including Summary Financial Statement. Available in English or Dutch, w ith financial information in euros, sterling and US dollars. Unilever Annual Report & Accounts and Form...

  • Page 127
    Design: Bamber Forsyth Limited Typesetting: Generator Limited Printed by: Westerham Press Limited

  • Page 128
    Unilever N.V. Weena 455, PO Box 760 3000 DK Rotterdam Telephone +31 (0)10 217 4000 Telefax +31 (0)10 217 4798 Unilever PLC PO Box 68, Unilever House Blackfriars, London EC4P 4BQ Telephone +44 (0)20 7822 5252 Telefax +44 (0)20 7822 5951 w w w.unilever.com