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Report of the Directors About Unilever
2 Unilever Annual Report and Accounts 2010
Operational highlights
In 2010 we continued the transformation of Unilever. Volume momentum
isstrong, driven by innovations that are bigger, better and faster, and by the
rapid introduction of our brands into new markets. Financial performance
wasagain robust, moving us closer to our long-term model of consistent
topand bottom line growth. We are now fit to compete.
Group highlights
Strong volume growth ahead of market
• Best volume growth for more than 30 years.
• Volume share up in all regions and most categories, with double digit
growth in Asia, Africa and Central & Eastern Europe (Asia Africa CEE).
• More than 60% of the business gaining or holding value share.
• Innovation rate up to 33% of turnover, with bigger projects hitting
moremarkets more quickly.
• More than 100 launches of Unilever brands into new markets.
• Steady and sustainable improvement in underlying operating margin.
• Strong cash flow and cost discipline, with savings of €1.4bn.
Underlying volume growth
Key financial indicators*
Underlying sales growth
4.1%
2009: 3.5%
1
Underlying volume growth
5.8%
2009: 2.3%
Underlying operating margin
15.0%
2009: 14.8%
Free cash flow
€3.4bn
2009: €4.1bn
Key non-financial indicators◊
Total recordable accident frequency
rate (per 1m hours worked)
.61
2009: 1.91
C02 from energy per tonne
ofproduction (kg)
132.62
2009: 142.16
Water per tonne
ofproduction (m3)
2.67
2009: 2.81
Total waste per tonne
of production (kg)
6.46
2009: 6.52
Financial headlines
• Turnover up 11% to
€44.3bn, with 7% due
tocurrency effects.
• Operating profit up 26%
to €6.3bn.
• Fully diluted earnings per
share of €1.46, up 25%.
• Dividends paid in 2010
of€0.819 per NV share
(up 5.1%) and of £0.7053
per PLC share (up 9.5%).
Sustainable Living Plan
• Help more than a billion people
take action toimprove their
health andwell-being.
• Halve the environmental
impactof the making and
useofour products.
• Enhance the livelihoods of
thousands of people in our
supply chain.
Basis of reporting: our accounting policies are in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union (EU), and based
on UnitedKingdom and Dutch law. They are also in accordance with IFRS as issued by the International Accounting Standards Board (IASB). Certain measures used in
ourreporting are not defined under IFRS or other generally accepted accounting principles. For further information about these measures, and the reasons why we
believethey are important for an understanding of the performance of the business, please refer to our commentary on non-GAAP measures on pages 31 and 32.
* Further details of our key financial indicators can be found in our financial review starting on page 22.
◊ 2010 data is preliminary. It will be independently assured and reported in our online Sustainable Development Report 2010 at www.unilever.com/sustainability.