Unilever 2003 Annual Report Download - page 4

Unilever Annual Report & Accounts and Form 20-F 2003 01
Contents
Report of the Directors
General information 02
Key performance measures 04
Financial highlights 06
Chairmen’s statement 07
About Unilever 09
Description of business 09
Business structure 09
Foods 09
Home & Personal Care 09
Other operations 10
Corporate venture activities 10
Technology and innovation 10
Information technology 11
Environmental responsibility 11
Responsible corporate behaviour 12
Competition 12
Distribution and selling 13
Exports 13
Seasonality 13
People 13
Related party transactions 13
Intellectual property 14
Description of our properties 14
Legal and arbitration proceedings and regulatory
matters 14
Government regulation 14
Financial review 15
Basis of reporting and discussion 15
Reporting currency and exchange rates 15
International Financial Reporting Standards 15
Critical accounting policies 15
Results – 2003 compared with 2002 16
Results – 2002 compared with 2001 17
Acquisitions and disposals 17
Dividends and market capitalisation 18
Balance sheet 18
Cash flow 19
Finance and liquidity 19
Treasury 20
Pensions investment strategy 20
Total Shareholder Return (TSR) 20
Significant changes 20
Operating review 21
Operating review by region 21
Europe 21
North America 23
Africa, Middle East and Turkey 25
Asia and Pacific 27
Latin America 29
Operating review by category – Foods 31
Savoury and dressings 32
Spreads and cooking products 34
Health & wellness and beverages 36
Ice cream and frozen foods 38
Operating review by category – Home & Personal Care 40
Home care 41
Personal care 43
Risk management 45
Corporate governance 47
Organisational structure of Unilever 47
Legal structure of the Group 47
Corporate governance developments 47
Directors 47
Advisory Directors 48
Board Committees 48
Requirements 49
Auditors 50
Report of the Directors (continued)
Relations with shareholders and other investors 51
Reporting to shareholders 51
Biographical details 52
Directors 52
Advisory Directors 52
Business Presidents 53
Corporate Officers 53
Board changes 53
Business President changes 53
Remuneration report 54
Remuneration report – policy 54
Introduction 54
Remuneration commentary 54
Directors 55
Remuneration policy 55
Remuneration committee 55
Remuneration package 55
Other items 58
Advisory Directors 59
Remuneration report – detailed information 60
Detailed information on Directors’ remuneration 2003 60
Table of aggregate remuneration for Directors 60
Table of remuneration for individual Directors 61
Directors’ share matching plan 62
Directors’ conditional share awards under
the TSR Long-Term Incentive Plan 63
Directors’ share options 64
Directors’ pensions 65
Directors’ interests: share capital 66
Summary information in respect of Directors
and Executive Officers 67
Directors’ service contracts 67
Advisory Directors 67
Report of the Audit Committee 69
Financial Statements
Contents listing for financial statements 70
Shareholder information
Control of Unilever 152
Share capital 152
Unity of management 152
Equalisation Agreement 152
More information about our constitutional documents 153
General Meetings and voting rights 153
Directors 154
Mutual guarantee of borrowings 154
Combined earnings per share 154
Leverhulme Trust 154
N.V. Nederlandsch Administratie- en
Trustkantoor (Nedamtrust) 155
Material modifications to the rights
of security holders 155
Other shareholder information
Analysis of shareholding 156
Information about exchange controls
affecting security holders 157
Nature of the trading market 157
Taxation for US residents holding shares in NV 159
Taxation for US residents holding shares in PLC 160
Dividends 161
Cross reference to Form 20-F 162
Glossary 163
Financial calendar and addresses 164
Website 165
Publications 165
Share registration 165