Unilever 2007 Annual Report Download - page 122

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Notes to the consolidated accounts Unilever Group
120 Unilever Annual Report and Accounts 2007
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 2007 2006
Trading and other balances due (to)/from joint ventures 157 93
Trading balances due (to)/from associates (21) (14)
Joint ventures
As discussed in note 26 on page 113, Unilever completed the restructuring of its Portuguese business as at 1 January 2007. Balances owed
by/(to) FIMA and PLI at 31 December 2007 were €258 million and €(101) million (2006: €91 million and €2 million) respectively.
Associates
Following the sale of DiverseyLever, our institutional and industrial cleaning business, to Johnson Professional Holdings Inc. in 2002, Unilever has
a one-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 2007 and 31 December 2006. At 31 December 2007 the outstanding balance payable to JohnsonDiversey Holdings
Inc. was €21 million (2006: €14 million). Sales agency fees to JohnsonDiversey were incurred of approximately €67 million in 2007
(2006: €68 million; 2005: €76 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. During 2007 Langholm placed 30 million shares of the Langholm Fund’s remaining shares in Just Retirement. As a result of sale of
shares, Langholm returned €47 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 2007, the outstanding balance with Langholm Capital Partners was €36 million
(2006: €45 million).
Other related parties
In September 2006 Harish Manwani, President Asia Africa and a member of the Unilever Executive Team, and his wife purchased an apartment
from Hindustan Lever Limited (now Hindustan Unilever Limited), a group company ultimately owned by PLC, for Rs.118 million (€2 042 255).
The purchase was made at full market value via an open bidding/tendering process managed by independent property consultants.
31 Key management personnel
Key management personnel are defined as the members of UEx together with the Non-Executive Directors.
€ million € million € million
Key management compensation 2007 2006 2005
Salaries and short-term employee benefits (19) (14) (13)
Non-Executive Directors’ fees (2) (1) (1)
Post-employment benefits (2) (3) (4)
Other long-term benefits (all share-based) (2) (2) (1)
Termination payments ––(1)
(25) (20) (20)
Of which:
Executive Directors (12) (11) (16)
Non-Executive Directors (2) (1) (1)
Other (11) (8) (3)
(25) (20) (20)
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.