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o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Tel: +44(0)2078226991, Fax: +44(0)2078226108
Unilever House, 100 Victoria Embankment, London EC4Y 0DY UK
Title of each class | Name of each exchange on which registered | |
American Shares (evidenced by Depositary Receipts) each representing one ordinary share of the nominal amount of 3 1/9p each | New York Stock Exchange |
U.S. GAAPo | International Financial Reporting Standards as issued by the International Accounting Standards Boardþ | Othero |
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2UnileverAnnual Report on Form 20-F 2009
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Year end | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
€1 = US $ | 1.433 | 1.417 | 1.471 | 1.317 | 1.184 | |||||||||||||||
€1 = £ | 0.888 | 0.977 | 0.734 | 0.671 | 0.686 | |||||||||||||||
Average | ||||||||||||||||||||
€1 = US $ | 1.388 | 1.468 | 1.364 | 1.254 | 1.244 | |||||||||||||||
€1 = £ | 0.891 | 0.788 | 0.682 | 0.682 | 0.684 | |||||||||||||||
Year end | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
€1 = US $ | 1.433 | 1.392 | 1.460 | 1.320 | 1.184 | |||||||||||||||
Average | ||||||||||||||||||||
€1 = US $ | 1.394 | 1.473 | 1.371 | 1.256 | 1.245 | |||||||||||||||
High | ||||||||||||||||||||
€1 = US $ | 1.510 | 1.601 | 1.486 | 1.333 | 1.348 | |||||||||||||||
Low | ||||||||||||||||||||
€1 = US $ | 1.255 | 1.245 | 1.290 | 1.186 | 1.167 | |||||||||||||||
September | October | November | December | January | February | |||||||||||||||||||
2009 | 2009 | 2009 | 2009 | 2010 | 2010 | |||||||||||||||||||
High | ||||||||||||||||||||||||
€1 = US $ | 1.479 | 1.503 | 1.509 | 1.510 | 1.454 | 1.3955 | ||||||||||||||||||
Low | ||||||||||||||||||||||||
€1 = US $ | 1.424 | 1.453 | 1.466 | 1.424 | 1.387 | 1.3476 | ||||||||||||||||||
UnileverAnnual Report on Form 20-F 2009 3
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Principal risks | Description of risk | |
Economic | ||
Economic slowdown could adversely impact the markets in which we operate by reducing the ability of consumers to buy our products. If we are unable to respond to changing consumer demand our cashflow, turnover, profits, profit margins and the carrying value of our brands could be adversely affected. | Unilever’s business is dependent on continuing consumer demand for our brands. Reduced consumer wealth driven by adverse economic conditions may result in our consumers becoming unwilling or unable to purchase our products, which could adversely affect our cash flow, turnover, profits and profit margins. For example, in 2008 the economic downturn adversely impacted our business by reducing the demand for some of our products. In addition we have a large number of global brands, some of which have a significant carrying value as intangible assets: adverse economic conditions may reduce the value of those brands which could require us to impair their balance sheet value. | |
During economic downturns access to credit could be constrained: this happened in 2008 and 2009. This could impact the viability of our suppliers and customers and could temporarily inhibit the flow of day-to-day cash transactions with suppliers and customers via the banks. | ||
Adverse economic conditions may affect one or more countries within a region, or may extend globally. The impact on our overall portfolio will depend on the severity of the economic slowdown, the mix of countries affected and any government response to reduce the impact such as fiscal stimulus, changes to taxation and measures to minimise unemployment. | ||
Markets | Unilever operates globally in competitive markets where the activities of other multinational companies, local and regional companies and customers which have a significant private label business may adversely affect our market shares, cash flow, turnover, profits and/or profit margins. 49% of Unilever’s turnover in 2009 came from D&E markets including Brazil, India, Indonesia, Turkey, South Africa, China, Mexico and Russia. These markets are typically more volatile than developed markets, so we are continually exposed to changing economic, political and social developments outside our control, any of which could adversely affect our business. Failure to understand and respond effectively to local market developments could put at risk our cash flow, turnover, profit and/or profit margins. | |
Unilever operates globally in competitive markets where the activities of competitors may adversely impact our market shares and therefore place our cashflow, turnover, profits and/or profit margins under pressure. Further, we derive significant revenues from Developing & Emerging (D&E) markets which are typically more volatile than developed markets. Social, political and/or economic developments could adversely impact our business. |
Principal risks | Description of risk | |
Brand | ||
Unilever is a branded goods business and our success is dependent on producing superior innovations that meet the needs of our consumers. Failure to achieve this could damage our reputation and hence our growth prospects and future profitability. | Unilever’s vision is to help people feel good, look good and get more out of life with brands and services that are good for them and good for others. This is achieved by designing and delivering superior branded products/services at relevant price points to consumers across the globe. Failure to provide sufficient funding to develop new products, lack of technical capability in the R&D function, lack of prioritisation of projects and/or failure by operating management to successfully and quickly roll out the products may adversely impact our cash flow, turnover, profit and/or profit margins and may impact our reputation. | |
4UnileverAnnual Report on Form 20-F 2009
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Customer | ||
Increasing competitive pressure from and consolidation of customers could adversely impact our cashflow, turnover, profits and/or profit margins. | Maintaining successful relationships with our customers is key to ensuring our brands are successfully presented to our consumers and are available for purchase at all times. Any breakdown in the relationships with customers could reduce the availability to our consumers of existing products and new product launches and therefore impact our cash flow, turnover, profits and/or profit margins. | |
The retail industry continues to consolidate in many of our markets. Further consolidation and the continuing growth of discounters could increase the competitive retail environment by increasing customers’ purchasing power, increasing the demand for competitive promotions and price discounts, increase cross-border sourcing to take advantage of pricing arbitrage and thus adversely impact our cash flow, turnover, profits and/or profit margins. Increased competition between retailers could place pressure on retailer margins and increase the counterparty risk to Unilever. | ||
Financial/Treasury | ||
Our global operations expose us to changes in liquidity, interest rates, currency exchange rates, pensions and taxation, which may have a negative impact on our business. | As a global organisation Unilever’s asset values, earnings and cashflows are influenced by a wide variety of currencies, interest rates, tax jurisdictions and differing taxes. If we are unable to manage our exposures to any one, or a combination, of these factors, this could adversely impact our cash flow, profits and/or profit margins. A material and significant shortfall in net cash flow could undermine Unilever’s credit rating, impair investor confidence and hinder our ability to raise funds, whether through access to credit markets, commercial paper programmes, long-term bond issuances or otherwise. In times of financial market volatility, we are also potentially exposed to counterparty risks with banks. | |
We are exposed to market interest rate fluctuations on our floating rate debt. Increases in benchmark interest rates could increase the interest cost of our floating rate debt and increase the cost of future borrowings. Our inability to manage the interest cost effectively could have an adverse impact on our cash flow, profits and/or profit margins. | ||
Because of the breadth of our international operations we are subject to risks from changes to the relative value of currencies which can fluctuate widely and could have a significant impact on our assets, cash flow, turnover, profits and/or profit margins. Further, because Unilever consolidates its financial statements in euros it is subject to exchange risks associated with the translation of the underlying net assets of its foreign subsidiaries. We are also subject to the imposition of exchange controls by individual countries which could limit our ability to import materials paid by foreign currency or to remit dividends to the parent company. | ||
Certain businesses have defined benefit pension plans, most now closed to new employees, which are exposed to movements in interest rates, fluctuating values of underlying investments and increased life expectancy. Changes in any or all of these inputs could potentially increase the cost to Unilever of funding the schemes and therefore have an adverse impact on profitability and cash flow. In view of the current economic climate and deteriorating government deficit positions, tax legislation in the countries in which we operate may be subject to change, which may have an adverse impact on our profits. | ||
Principal risks | Description of risk | |
Consumer and environmental safety | ||
Our industry is subject to focus on social and environmental issues, including sustainable development, product safety and renewable sources. If we fail to meet applicable standards or expectations with respect to these issues, our reputation could be damaged and our business adversely affected. | Unilever has developed a strong corporate reputation over many years for its focus on social and environmental issues, including promoting sustainable development and utilisation of renewable resources. The Unilever brand logo, now displayed on all our products and advertising, increases our external exposure. Should we fail to meet high product safety, social, environmental and ethical standards across all our products and in all our operations and activities it could impact our reputation, leading to the rejection of products by consumers, damage to our brands including growth and profitability, and diversion of management time into rebuilding our reputation. | |
We aim to grow our business while reducing our environmental impact. The environmental measures that we regard as most significant are those relating to the amounts of CO2 from energy that we use, the water we consume as part of our production processes and the amount of waste that we generate for disposal. Failure to design products with a lower environmental footprint could damage our reputation and hence long-term cash flow, turnover, profits and/or profit margins. | ||
UnileverAnnual Report on Form 20-F 2009 5
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Operations | ||
Our input costs are subject to fluctuation and we are reliant on efficient suppliers and regional/global supply chains to produce and deliver our products to our customers. | Our ability to make products is dependent on securing timely and cost-effective supplies of production materials, some of which are globally traded commodities. The price of commodities and other key materials, labour, warehousing and distribution fluctuates according to global economic conditions, which can have a significant impact on our product costs. For example, in 2008 we saw unprecedented increases in many of our commodity costs, including edible oils and crude oil. If we are unable to increase prices to compensate for higher input costs, this could reduce our cash flow, profits and/or profit margins. If we increase prices more than our competitors, this could undermine our competitiveness and hence market shares. | |
Further, two-thirds of the raw materials that we buy come from agriculture. Changing weather patterns, water scarcity and unsustainable farming practices threaten the long-term viability of agricultural production. A reduction in agricultural production may limit our ability to manufacture products in the long term. | ||
We are dependent on regional and global supply chains for the supply of raw materials and services and for the manufacture, distribution and delivery of our products. We may be unable to respond to adverse events occurring in any part of this supply chain such as changes in local legal and regulatory schemes, labour shortages and disruptions, environmental and industrial accidents, bankruptcy of a key supplier or failure to deliver supplies on time and in full, which could impact our ability to deliver orders to our customers. Any of the foregoing could adversely impact our cash flow, turnover, profits and/or profit margins and harm our reputation and our brands. | ||
People and talent | ||
Our success depends on attracting, developing and retaining talented people within our business. Any shortfall in recruitment or retention could adversely affect our ability to deliver our strategy and compete in our markets. | Attracting, developing and retaining talented employees is essential to the delivery of our strategy. If we fail to determine the appropriate mix of skills required to implement our strategy and subsequently fail to recruit or develop the right number of appropriately qualified people, or if there are high levels of staff turnover, this could adversely affect our ability to operate successfully, and hence grow our business and effectively compete in the marketplace. | |
Legal and regulatory | ||
Unilever is subject to many local, regional and global jurisdictions. Failure to comply with local laws and regulatory regimes could expose Unilever to litigation, penalties, fines and/or imprisonment of its executives. | Unilever is subject to local, regional and global rules, laws and regulations, covering such diverse areas as product safety, product claims, trademarks, copyright, patents, employee health and safety, the environment, corporate governance, listing and disclosure, employment and taxes. Important regulatory bodies in respect of our business include the European Commission and the US Food and Drug Administration. Failure to comply with laws and regulations could leave Unilever open to civil and/or criminal legal challenge and, if upheld, fines or imprisonment imposed on us or our employees. Further, our reputation could be significantly damaged by adverse publicity relating to such a breach of laws or regulations and such damage could extend beyond a single geography. | |
Principal risks | Description of risk | |
Restructuring and change management Ongoing restructuring initiatives involve significant changes to our organisation. If we are unable to successfully implement these changes in a timely manner, we may not realise the expected benefits from the restructuring. | In recent years Unilever has launched global and regional restructuring programmes to help simplify our organisational structure, leverage common platforms, realise benefits from our regional and global scale and outsource business processes. Implementation of such programmes requires significant effort and attention from management and employees to complete to the agreed timescale and realise the anticipated benefits. In the event that we are unable to successfully implement these changes in a timely manner or at all, or effectively manage third-party relationships and/or outsourced processes, we may not be able to realise some or all of the anticipated expense reductions. In addition, because some of the restructuring changes involve important functions, any disruption could harm the operations of our business, our reputation and/or relationship with our employees. | |
Other risks (Four) | Unilever is exposed to varying degrees of risk and uncertainty related to other factors including physical risks, legislative, environmental, fiscal, tax and regulatory developments, legal matters, insurance and resolution of such pending matters within current estimates, our ability to integrate acquisitions and complete planned divestitures, terrorism and economic, political and social conditions in the environments where we operate and new or changed priorities of the Boards. All these risks could materially affect the Group’s business, our turnover, operating profits, net profits, net assets and liquidity. There may be risks which are unknown to Unilever or which are currently believed to be immaterial. | |
6UnileverAnnual Report on Form 20-F 2009
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• | “The Unilever Group” on page 2; | |
• | “Our business” on pages 25 to 29; | |
• | “Financial Review 2009” on pages 37 to 46; | |
• | “Financial Review 2008” on pages 47 to 49; | |
• | “The Unilever Group” on page 50; | |
• | “Note 26 Acquisitions and disposals” on pages 123 and 124; and | |
• | “Shareholder information” on pages 144 to 147. |
• | “Our business” on page 25; | |
• | “Our brands” on pages 27 and 28; | |
• | “Operating environment” (paragraphs 4, 5 and 6 only) on page 27; | |
• | “Intellectual property” and “Laws and regulation” on page 29; and | |
• | “Note 2 Segment information” on pages 87 to 88. |
• | “The Unilever Group” on page 2; | |
• | “Organisation” on page 26 and 27; and | |
• | “Principal group companies and non-current investments” on page 131 and 132. |
• | “Note 10 Property, plant and equipment” on pages 95 and 96; and | |
• | “Principal group companies and non-current investments” on pages 131 and 132. |
• | “Key indicators 2009 – Performance and portfolio” (first table and first second and third paragraphs) on page 25; | |
• | “Outlook” on page 30; | |
• | “Financial Review 2009” and “Financial Review 2008” on pages 37 to 49; and | |
• | “Currency risks” on page 104. |
UnileverAnnual Report on Form 20-F 2009 7
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• | “Finance and liquidity” and “Treasury” on pages 39 and 40; | |
• | “Liquidity management” on page 104; | |
• | “Liquidity risk” on pages 105 and 106; | |
• | “Capital management” on pages 109 and 110; | |
• | “Going concern” on page 76; | |
• | “Cash flow” on page 41; | |
• | “Consolidated cash flow statement” on page 82; | |
• | “Note 28 Reconciliation of net profit to cash flow from operating activities” on page 126; and | |
• | “Note 14 Financial assets and liabilities” on pages 99 to 103. |
• | “Note 14 Financial assets and liabilities” on pages 99 to 103; and | |
• | “Note 15 Financial instruments and treasury risk management” on pages 104 to 110. |
• | “Note 25 Commitments and contingent liabilities” on pages 121 to 122; and | |
• | “Note 10 Property, plant and equipment” on pages 95 and 96. |
• | “Outlook” on page 30; | |
• | “Financial Review 2009” on pages 37 to 46; and | |
• | “Financial Review 2008” on pages 47 to 49. |
• | “Off-balance sheet arrangements” on page 41; | |
• | “Note 15 Financial instruments and treasury risk management” on pages 104 to 110; and |
• | “Note 25 Commitments and Contingent liabilities” (last two paragraphs only) on page 121. |
8UnileverAnnual Report on Form 20-F 2009
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• | “Unilever Executive” on page 24, “Board of Directors” on pages 22 and 23; and “Chairman and Chief Executive Officer”, “Executive Directors”, “Non-Executive Directors” and “Committees” on pages 52 to 54. |
• | “Executive Directors” (paragraph 5) on page 52; and | |
• | “Non-Executive Directors – Independence” (paragraph 6) on page 53. |
• | “Executive Directors” on page 67; | |
• | “The supporting policies” on page 68; | |
• | “Our remuneration practices” on pages 69 and 70; | |
• | “Directors’ Remuneration Report” on page 70; | |
• | “Executive Directors’ remuneration in 2009” on pages 71 to 72; | |
• | “Non-Executive Director’s” on page 73; | |
• | “Note 29 Share-based compensation plans” on pages 126 to 127; | |
• | “Note 4 Staff and management costs – Key management compensation” on page 90; and | |
• | “Note 19 Pension and similar obligations” on pages 113 to 117. |
• | “Board of Directors” on pages 22 to 23; | |
• | “Appointment of Directors” on page 50; | |
• | “Executive Directors” (paragraphs 2 and 3) on page 52; | |
• | “Non-Executive Directors” on pages 52 and 53; | |
• | “Committees” on pages 53 and 54; | |
• | “Report of the Audit Committee” on page 63; and | |
• | “Directors’ Remuneration Report” on pages 67 to 70. |
• | “Note 4 Staff and management costs – Average number of employees during the year” on page 90; and | |
• | “Our employees” on page 28. |
• | “Directors’ Remuneration Report” on page 70; | |
• | “Executive Directors’ remuneration in 2009” on pages 71 to 72; | |
• | “Non-Executive Directors” on page 73; and | |
• | “Note 29 Share-based compensation plans” on pages 126 and 127. |
UnileverAnnual Report on Form 20-F 2009 9
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• | “Foundation Unilever NV Trust office” and “Margarine Union (1930) Limited” on pages 58 and 59; and | |
• | “Analysis of shareholding” on pages 144 and 145. |
The information set forth under the following headings of the Group’s Annual Report and Accounts 2009 furnished separately on 5 March 2010 under Form 6-K is incorporated by reference:
• | “Financial statements” on page 76 and pages 79 to 128 (excluding Note 31 on page 128); | |
• | “Legal proceedings” on pages 29 and 122; and | |
• | “Dividend record” on page 130 and “Financial calendar” on page 146. |
10UnileverAnnual Report on Form 20-F 2009
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NV per€0.16 ordinary share in Amsterdam | €22.75 | |||
NV per€0.16 ordinary share in New York | $32.33 | |||
PLC per 31/9 ordinary share in London | £19.94 | |||
PLC per 31/9 ordinary share in New York | $31.90 | |||
September 2009 | October 2009 | November 2009 | December 2009 | January 2010 | February 2010 | |||||||||||||||||||||||
NV per€0.16 ordinary share in Amsterdam (in€) | High | 19.69 | 21.39 | 21.61 | 22.88 | 22.94 | 22.79 | |||||||||||||||||||||
Low | 18.80 | 19.33 | 20.37 | 21.09 | 21.81 | 20.97 | ||||||||||||||||||||||
NV per€0.16 ordinary share in New York (in US $) | High | 28.86 | 31.20 | 32.11 | 32.80 | 32.93 | 31.41 | |||||||||||||||||||||
Low | 27.00 | 28.36 | 30.47 | 31.03 | 30.58 | 28.98 | ||||||||||||||||||||||
PLC per 31/9 ordinary share in London (in £) | High | 17.78 | 18.72 | 18.44 | 20.15 | 19.95 | 19.47 | |||||||||||||||||||||
Low | 16.21 | 17.60 | 17.75 | 18.21 | 18.91 | 18.18 | ||||||||||||||||||||||
PLC per 31/9 ordinary share in New York (in US $) | High | 28.68 | 30.68 | 31.01 | 32.19 | 32.31 | 31.21 | |||||||||||||||||||||
Low | 26.71 | 28.29 | 29.53 | 29.78 | 30.52 | 28.84 | ||||||||||||||||||||||
Quarterly high and low prices for 2009 and 2008 | ||||||||||||||||||||||||||||
2009 | 1st | 2nd | 3rd | 4th | ||||||||||||||||||||||||
NV per€0.16 ordinary share in Amsterdam (in€) | High | 18.11 | 17.97 | 19.88 | 22.88 | |||||||||||||||||||||||
Low | 13.59 | 14.42 | 17.13 | 19.33 | ||||||||||||||||||||||||
NV per€0.16 ordinary share in New York (in US $) | High | 25.16 | 25.19 | 28.86 | 32.80 | |||||||||||||||||||||||
Low | 17.04 | 18.70 | 23.93 | 28.36 | ||||||||||||||||||||||||
PLC per 31/9 ordinary share in London (in £) | High | 16.69 | 15.33 | 17.78 | 20.15 | |||||||||||||||||||||||
Low | 12.30 | 12.68 | 14.27 | 17.60 | ||||||||||||||||||||||||
PLC per 31/9 ordinary share in New York (in US $) | High | 24.06 | 24.88 | 28.68 | 32.19 | |||||||||||||||||||||||
Low | 17.04 | 18.36 | 23.26 | 28.29 | ||||||||||||||||||||||||
2008 | 1st | 2nd | 3rd | 4th | ||||||||||||||||||||||||
NV per€0.16 ordinary share in Amsterdam (in€) | High | 25.61 | 22.30 | 20.85 | 20.55 | |||||||||||||||||||||||
Low | 19.86 | 17.60 | 17.10 | 16.20 | ||||||||||||||||||||||||
NV per€0.16 ordinary share in New York (in US $) | High | 37.18 | 34.53 | 30.37 | 28.77 | |||||||||||||||||||||||
Low | 29.94 | 27.90 | 26.81 | 21.27 | ||||||||||||||||||||||||
PLC per 31/9 ordinary share in London (in £) | High | 19.47 | 17.86 | 16.30 | 16.01 | |||||||||||||||||||||||
Low | 15.16 | 13.85 | 13.35 | 12.49 | ||||||||||||||||||||||||
PLC per 31/9 ordinary share in New York (in US $) | High | 38.02 | 34.89 | 30.21 | 28.35 | |||||||||||||||||||||||
Low | 29.90 | 27.71 | 26.15 | 20.22 | ||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||
NV per€0.16 ordinary share in Amsterdam (in€) | High | 22.88 | 25.61 | 25.72 | 20.84 | 20.27 | ||||||||||||||||||
Low | 13.59 | 16.20 | 18.89 | 16.53 | 16.13 | |||||||||||||||||||
NV per€0.16 ordinary share in New York (in US $) | High | 32.80 | 37.18 | 37.31 | 27.32 | 24.02 | ||||||||||||||||||
Low | 17.04 | 21.27 | 24.94 | 20.72 | 20.89 | |||||||||||||||||||
PLC per 31/9 ordinary share in London (in £) | High | 20.15 | 19.47 | 19.24 | 14.28 | 13.39 | ||||||||||||||||||
Low | 12.30 | 12.49 | 13.20 | 11.25 | 10.83 | |||||||||||||||||||
PLC per 31/9 ordinary share in New York (in US $) | High | 32.19 | 38.02 | 38.25 | 27.95 | 23.67 | ||||||||||||||||||
Low | 17.04 | 20.22 | 25.57 | 20.66 | 20.34 | |||||||||||||||||||
UnileverAnnual Report on Form 20-F 2009 11
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• | “Corporate governance” on pages 50 to 62; and | |
• | “Note 22 Share capital” on page 119. |
• | “Financial Review 2009 – Acquisition and disposals” on page 42; | |
• | “Financial Review 2008 – Acquisition and disposals” on page 49; and | |
• | “Foundation agreements” on pages 56 and 57. |
• | a corporation organised under the laws of the United States (or any territory of it) having no permanent establishment in the Netherlands of which such shares form a part of the business property; or | |
• | any other legal person subject to United States Federal income tax with respect to its worldwide income, having no permanent establishment in the Netherlands of which such shares form a part of the business property, |
12UnileverAnnual Report on Form 20-F 2009
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• | an individual who is neither resident nor ordinarily resident in the United Kingdom; or | |
• | a company which is not resident in the United Kingdom; |
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• | domiciled for the purposes of the convention in the United States; and | |
• | is not for the purposes of the convention a national of the United Kingdom; |
• | the individual’s death; or | |
• | on a gift of the shares during the individual’s lifetime. |
Filed with the SEC on the SEC’s website. Printed copies are available, free of charge, upon request to Unilever PLC, Investor Relations Department, Unilever House, 100 Victoria Embankment, London EC4Y 0DY United Kingdom.
Documents on display in the United States
Unilever files and furnishes reports and information with the United States SEC. Such reports and information can be inspected and copied at the SEC’s public reference facilities in Washington DC, Chicago and New York. Certain of our reports and other information that we file or furnish to the SEC are also available to the public over the internet on the SEC’s website.
• | “Outlook” on page 30; | |
• | “Note 13 Trade and other receivables” on page 98; | |
• | “Note 14 Financial assets and liabilities” on pages 99 to 103; | |
• | “Note 15 Financial instruments and treasury risk management” on pages 104 to 110; and | |
• | “Note 16 Trade payables and other liabilities” on page 110. |
• | Issuance of ADSs: Up to US 5¢ per ADS issued. | |
• | Cancellation of ADSs: Up to US 5¢ per ADS cancelled. |
• | Fees for the transfer and registration of Shares charged by the registrar and transfer agent for the Shares in the United Kingdom (i.e., upon deposit and withdrawal of Shares). | |
• | Expenses incurred for converting foreign currency into US dollars. | |
• | Expenses for cable, telex and fax transmissions and for delivery of securities. | |
• | Taxes and duties upon the transfer of securities (i.e. when shares are deposited or withdrawn from deposit). | |
• | Fees and expenses incurred in connection with the delivery or servicing of shares on deposit. |
Reimbursement of listing fees (NYSE/NASDAQ): | $ 110,651.00 | |||
Reimbursement of settlement infrastructure fees (including DTC feeds): | $ 18,944.28 | |||
Reimbursement of proxy process expenses (printing, postage and distribution): | $ 230,630.41 | |||
Program-Related Expenses (that include expenses incurred from the requirements of the Sarbanes-Oxley Act of 2002): | $ 989,774.31 | |||
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• | Unilever’s management is responsible for establishing and maintaining adequate internal control over financial reporting for the Group; | |
• | Unilever’s management has used the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework to evaluate the effectiveness of our internal control over financial reporting. Management believes that the COSO framework is a suitable framework for its evaluation of our internal control over financial reporting because it is free from bias, permits reasonably consistent qualitative and quantitative measurements of internal controls, is sufficiently complete so that those relevant factors that would alter a conclusion about the effectiveness of internal controls are not omitted and is relevant to an evaluation of internal control over financial reporting; | |
• | Management has assessed the effectiveness of internal control over financial reporting as of 31 December 2009, and has concluded that such internal control over financial reporting is effective; and | |
• | PricewaterhouseCoopers LLP and PricewaterhouseCoopers Accountants N.V., who have audited the consolidated financial statements of the Group for the year ended 31 December 2009, have also audited the effectiveness of internal control over financial reporting as at 31 December 2009 and have issued an attestation report on internal control over financial reporting. For the Auditors’ Report please refer to Item 18. |
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• | “Foundation and principles” on page 35; and | |
• | “Requirements – the United States” on page 62. |
€ million | € million | € million | ||||||||||
2009 | 2008 | 2007 | ||||||||||
Audit fees(a) | (18 | ) | (21 | ) | (20 | ) | ||||||
Audit-related fees(b) | – | (1 | ) | (2 | ) | |||||||
Tax fees | (2 | ) | (2 | ) | (2 | ) | ||||||
All other fees | (1 | ) | (2 | ) | (1 | ) | ||||||
(a) | Excludes€(1) million of out of pocket expenses and€(1) million fees paid in respect of services supplied for associated pension schemes. | |
(b) | Includes other audit services which comprises audit and similar work that regulations or agreements with third parties requires the auditors to undertake. |
€ million | ||||||||||||||||
Of which numbers of | Maximum value that | |||||||||||||||
shares purchased | max yet be purchased | |||||||||||||||
Total number of | Average price | as part of publicly | as part of publicly | |||||||||||||
shares purchased | paid per share | announced plans | (a) | announced plans | ||||||||||||
January | – | – | – | – | ||||||||||||
February | – | – | – | – | ||||||||||||
March | 57,435 | €13.31 | – | – | ||||||||||||
April | – | – | – | – | ||||||||||||
May | – | – | – | – | ||||||||||||
June | – | – | – | – | ||||||||||||
July | – | – | – | – | ||||||||||||
August | – | – | – | – | ||||||||||||
September | – | – | – | – | ||||||||||||
October | – | – | – | – | ||||||||||||
November | – | – | – | – | ||||||||||||
December | – | – | – | – | ||||||||||||
Total | 57,435 | €13.31 | – | – | ||||||||||||
(a) | Shares were also purchased to satisfy commitments to deliver shares under our share-based plans as described in note 29 on pages 133 and 134. |
16UnileverAnnual Report on Form 20-F 2009
Table of Contents
The Group’s management are responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying ‘Management’s report on internal control over financial reporting’ included in Item 15 of this Form 20-F. Our responsibility is to express opinions on these consolidated financial statements and on the Group’s internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall consolidated financial statements presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Rotterdam, The Netherlands, 2 March 2010 | PricewaterhouseCoopers LLP | |
PricewaterhouseCoopers Accountants N.V. | London, United Kingdom | |
As auditors of Unilever N.V. | As auditors of Unilever PLC | |
R A J Swaak RA | 2 March 2010 |
UnileverAnnual Report on Form 20-F 2009 17
Table of Contents
€ million | € million | € million | € million | € million | € million | |||||||||||||||||||
NV | NV | NV | PLC | PLC | PLC | |||||||||||||||||||
Income statement for the year ended 31 December | 2009 | 2008 | 2007 | 2009 | 2008 | 2007 | ||||||||||||||||||
Continuing operations: | ||||||||||||||||||||||||
Turnover | 21,917 | 22,108 | 24,100 | 17,906 | 18,415 | 16,087 | ||||||||||||||||||
Operating profit | 2,700 | 4,033 | 2,891 | 2,320 | 3,134 | 2,354 | ||||||||||||||||||
Net finance costs | (259 | ) | (170 | ) | (249 | ) | (334 | ) | (87 | ) | (3 | ) | ||||||||||||
Share in net profit of joint ventures | 61 | 49 | 67 | 50 | 76 | 35 | ||||||||||||||||||
Share in net profit of associates | (5 | ) | (3 | ) | (2 | ) | 9 | 9 | 52 | |||||||||||||||
Other income from non-current investments | 350 | 12 | 27 | 24 | 76 | 12 | ||||||||||||||||||
Profit before taxation | 2,847 | 3,921 | 2,734 | 2,069 | 3,208 | 2,450 | ||||||||||||||||||
Taxation | (715 | ) | (971 | ) | (601 | ) | (542 | ) | (873 | ) | (527 | ) | ||||||||||||
Net profit from continuing activities | 2,132 | 2,950 | 2,133 | 1,527 | 2,335 | 1,923 | ||||||||||||||||||
Net profit from discontiuned operations | – | – | 71 | – | – | 9 | ||||||||||||||||||
Net profit | 2,132 | 2,950 | 2,204 | 1,527 | 2,335 | 1,932 | ||||||||||||||||||
Attributable to: | ||||||||||||||||||||||||
Minority interest | 60 | 16 | 41 | 229 | 242 | 207 | ||||||||||||||||||
Shareholders’ equity | 2,072 | 2,934 | 2,163 | 1,298 | 2,093 | 1,725 | ||||||||||||||||||
18UnileverAnnual Report on Form 20-F 2009
Table of Contents
€ million | € million | € million | € million | |||||||||||||
NV | NV | PLC | PLC | |||||||||||||
Balance sheet as at 31 December | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Goodwill and intangible assets | 10,984 | 10,298 | 6,063 | 5,793 | ||||||||||||
Property, plant and equipment | 3,365 | 3,020 | 3,279 | 2,937 | ||||||||||||
Pension asset for funded schemes in surplus | 700 | 396 | 59 | 29 | ||||||||||||
Deferred tax assets | 435 | 598 | 303 | 470 | ||||||||||||
Other non-current assets | 572 | 931 | 445 | 495 | ||||||||||||
Total non-current assets | 16,056 | 15,243 | 10,149 | 9,724 | ||||||||||||
Inventories | 2,133 | 2,228 | 1,445 | 1,661 | ||||||||||||
Trade and other current receivables | 1,931 | 2,189 | 1,498 | 1,634 | ||||||||||||
Cash and cash equivalents | 2,004 | 2,066 | 638 | 495 | ||||||||||||
Other financial assets | 844 | 746 | 301 | 120 | ||||||||||||
Assets held for sale | 10 | 21 | 7 | 15 | ||||||||||||
Total current assets | 6,922 | 7,250 | 3,889 | 3,925 | ||||||||||||
Financial liabilities | (1,472 | ) | (3,673 | ) | (807 | ) | (1,169 | ) | ||||||||
Trade payables and other current liabilities | (5,358 | ) | (5,069 | ) | (3,542 | ) | (3,132 | ) | ||||||||
Provisions | (262 | ) | (520 | ) | (158 | ) | (237 | ) | ||||||||
Liabilities associated with assets held for sale | 0 | 0 | 0 | 0 | ||||||||||||
Total current liabilities | (7,092 | ) | (9,262 | ) | (4,507 | ) | (4,538 | ) | ||||||||
Net current assets/(liabilities) | (170 | ) | (2,012 | ) | (618 | ) | (613 | ) | ||||||||
Total assets less current liabilities | 15,886 | 13,231 | 9,531 | 9,111 | ||||||||||||
Financial liabilities due after one year | 5,532 | 4,997 | 2,160 | 1,366 | ||||||||||||
Pensions and post-retirement healthcare liabilities | ||||||||||||||||
Funded schemes in deficit | 635 | 952 | 884 | 868 | ||||||||||||
Unfunded schemes | 902 | 941 | 920 | 1,046 | ||||||||||||
Provisions | 510 | 458 | 219 | 188 | ||||||||||||
Deferred tax liabilities | 671 | 619 | 93 | 171 | ||||||||||||
Other non-current liabilities | 185 | 240 | 170 | 124 | ||||||||||||
Non-current liabilities | 8,435 | 8,207 | 4,446 | 3,763 | ||||||||||||
Intra-group NV/PLC | (5,727 | ) | (6,107 | ) | 5,727 | 6,107 | ||||||||||
Shareholders’ equity | 13,128 | 11,091 | (1,063 | ) | (1,143 | ) | ||||||||||
Minority interest | 50 | 40 | 421 | 384 | ||||||||||||
Total equity | 13,178 | 11,131 | (642 | ) | (759 | ) | ||||||||||
Total capital employed | 15,886 | 13,231 | 9,531 | 9,111 | ||||||||||||
UnileverAnnual Report on Form 20-F 2009 19
Table of Contents
€ million | € million | € million | € million | € million | € million | € million | ||||||||||||||||||||||
Unilever | Unilever | Unilever | ||||||||||||||||||||||||||
Capital | N.V. | United | ||||||||||||||||||||||||||
Corporation | parent | Unilever PLC | States Inc. | Non- | ||||||||||||||||||||||||
Income statement | subsidiary | issuer/ | parent | subsidiary | guarantor | Unilever | ||||||||||||||||||||||
for the year ended 31 December 2009 | issuer | guarantor | guarantor | guarantor | subsidiaries | Eliminations | Group | |||||||||||||||||||||
Continuing operations: | ||||||||||||||||||||||||||||
Turnover | – | – | – | – | 39,823 | – | 39,823 | |||||||||||||||||||||
Operating profit | – | 91 | 37 | (31 | ) | 4,923 | – | 5,020 | ||||||||||||||||||||
Finance income | – | – | – | – | 75 | – | 75 | |||||||||||||||||||||
Finance costs | (183 | ) | (159 | ) | (24 | ) | – | (138 | ) | – | (504 | ) | ||||||||||||||||
Pensions and similar obligations | – | 1 | – | (61 | ) | (104 | ) | – | (164 | ) | ||||||||||||||||||
Intercompany finance costs | 185 | 52 | (36 | ) | (10 | ) | (191 | ) | – | – | ||||||||||||||||||
Dividends | – | 1,321 | 1,112 | – | (2,433 | ) | – | – | ||||||||||||||||||||
Share of net profit/(loss) of joint ventures | – | – | – | – | 111 | – | 111 | |||||||||||||||||||||
Share of net profit/(loss) of associates | – | – | – | – | 4 | – | 4 | |||||||||||||||||||||
Other income from non-current investments | – | – | – | – | 374 | – | 374 | |||||||||||||||||||||
Profit before taxation | 2 | 1,306 | 1,089 | (102 | ) | 2,621 | 4,916 | |||||||||||||||||||||
Taxation | (1 | ) | (34 | ) | (1 | ) | (245 | ) | (976 | ) | – | (1,257 | ) | |||||||||||||||
Net profit from continuing activities | 1 | 1,272 | 1,088 | (347 | ) | 1,645 | 3,659 | |||||||||||||||||||||
Net profit from discontiuned operations | – | – | – | – | – | – | – | |||||||||||||||||||||
Equity earnings of subsidiaries | – | 2,387 | 2,571 | 643 | – | (5,601 | ) | – | ||||||||||||||||||||
Net profit | 1 | 3,659 | 3,659 | 296 | 1,645 | (5,601 | ) | 3,659 | ||||||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||
Minority interest | – | – | – | – | 289 | – | 289 | |||||||||||||||||||||
Shareholders’ equity | 1 | 3,659 | 3,659 | 296 | 1,356 | (5,601 | ) | 3,370 | ||||||||||||||||||||
20UnileverAnnual Report on Form 20-F 2009
Table of Contents
€ million | € million | € million | € million | € million | € million | € million | ||||||||||||||||||||||
Unilever | Unilever | Unilever | ||||||||||||||||||||||||||
Capital | N.V. | United | ||||||||||||||||||||||||||
Corporation | parent | Unilever PLC | States Inc. | Non- | ||||||||||||||||||||||||
Income statement | subsidiary | issuer/ | parent | subsidiary | guarantor | Unilever | ||||||||||||||||||||||
for the year ended 31 December 2008 | issuer | guarantor | guarantor | guarantor | subsidiaries | Eliminations | Group | |||||||||||||||||||||
Continuing operations: | ||||||||||||||||||||||||||||
Turnover | – | – | – | – | 40,523 | – | 40,523 | |||||||||||||||||||||
Operating profit | (1 | ) | 381 | 114 | (19 | ) | 6,692 | – | 7,167 | |||||||||||||||||||
Finance income | – | 1 | – | – | 105 | – | 106 | |||||||||||||||||||||
Finance costs | (167 | ) | (146 | ) | – | – | (193 | ) | – | (506 | ) | |||||||||||||||||
Pension and similar obligations | – | 1 | – | (27 | ) | 169 | – | 143 | ||||||||||||||||||||
Intercompany finance costs | 196 | 42 | 42 | (4 | ) | (276 | ) | – | – | |||||||||||||||||||
Dividends | – | 1,473 | 1,160 | – | (2,633 | ) | – | – | ||||||||||||||||||||
Share of net profit/(loss) of joint ventures | – | – | – | – | 125 | – | 125 | |||||||||||||||||||||
Share of net profit/(loss) of associates | – | – | – | – | 6 | – | 6 | |||||||||||||||||||||
Other income from non-current investments | – | – | – | – | 88 | – | 88 | |||||||||||||||||||||
Profit before taxation | 28 | 1,752 | 1,316 | (50 | ) | 4,083 | – | 7,129 | ||||||||||||||||||||
Taxation | (11 | ) | (41 | ) | (134 | ) | (619 | ) | (1,039 | ) | – | (1,844 | ) | |||||||||||||||
Net profit from continuing activities | 17 | 1,711 | 1,182 | (669 | ) | 3,044 | – | 5,285 | ||||||||||||||||||||
Net profit from discontinued operations | – | – | – | – | – | – | – | |||||||||||||||||||||
Equity earnings of subsidiaries | – | 3,316 | 3,845 | 1,637 | – | (8,798 | ) | – | ||||||||||||||||||||
Net profit | 17 | 5,027 | 5,027 | 968 | 3,044 | (8,798 | ) | 5,285 | ||||||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||
Minority interest | – | – | – | – | 258 | – | 258 | |||||||||||||||||||||
Shareholders’ equity | 17 | 5,027 | 5,027 | 968 | 2,786 | (8,798 | ) | 5,027 | ||||||||||||||||||||
Income statement | ||||||||||||||||||||||||||||
for the year ended 31 December 2008 | ||||||||||||||||||||||||||||
Continuing operations: | ||||||||||||||||||||||||||||
Turnover | – | – | – | – | 40,187 | – | 40,187 | |||||||||||||||||||||
Operating profit | (1 | ) | 23 | (36 | ) | (22 | ) | 5,281 | – | 5,245 | ||||||||||||||||||
Finance income | – | 4 | 4 | – | 139 | – | 147 | |||||||||||||||||||||
Finance costs | (182 | ) | (112 | ) | (1 | ) | – | (262 | ) | – | (557 | ) | ||||||||||||||||
Pension and similar obligations | – | (6 | ) | – | (33 | ) | 197 | – | 158 | |||||||||||||||||||
Intercompany finance costs | 201 | 38 | 48 | (12 | ) | (275 | ) | – | – | |||||||||||||||||||
Dividends | – | 1,536 | 1,154 | – | (2,690 | ) | – | – | ||||||||||||||||||||
Share of net profit/(loss) of joint ventures | – | – | – | – | 102 | – | 102 | |||||||||||||||||||||
Share of net profit/(loss) of associates | – | – | – | – | 50 | – | 50 | |||||||||||||||||||||
Other income from non-current investments | – | – | – | – | 39 | – | 39 | |||||||||||||||||||||
Profit before taxation | 18 | 1,483 | 1,169 | (67 | ) | 2,581 | 5,184 | |||||||||||||||||||||
Taxation | (7 | ) | (91 | ) | (89 | ) | (52 | ) | (889 | ) | – | (1,128 | ) | |||||||||||||||
Net profit from continuing activities | 11 | 1,392 | 1,080 | (119 | ) | 1,692 | – | 4,056 | ||||||||||||||||||||
Net profit from discontinued operations | – | – | – | – | 80 | – | 80 | |||||||||||||||||||||
Equity earnings of subsidiaries | – | 2,496 | 2,808 | 611 | – | (5,915 | ) | – | ||||||||||||||||||||
Net profit | 11 | 3,888 | 3,888 | 492 | 1,772 | (5,915 | ) | 4,136 | ||||||||||||||||||||
Attributable to: | ||||||||||||||||||||||||||||
Minority interest | – | – | – | – | 248 | – | 248 | |||||||||||||||||||||
Shareholders’ equity | 11 | 3,888 | 3,888 | 492 | 1,524 | (5,915 | ) | 3,888 | ||||||||||||||||||||
UnileverAnnual Report on Form 20-F 2009 21
Table of Contents
€ million | € million | € million | € million | € million | € million | € million | ||||||||||||||||||||||
Unilever | Unilever | Unilever | ||||||||||||||||||||||||||
Capital | N.V. | United | ||||||||||||||||||||||||||
Corporation | parent | Unilever PLC | States Inc. | Non- | ||||||||||||||||||||||||
subsidiary | issuer/ | parent | subsidiary | guarantor | Unilever | |||||||||||||||||||||||
Balance sheet at 31 December 2009 | issuer | guarantor | guarantor | guarantor | subsidiaries | Eliminations | Group | |||||||||||||||||||||
Goodwill and intangible assets | – | 44 | 26 | – | 16,977 | – | 17,047 | |||||||||||||||||||||
Property, plant and equipment | – | – | – | – | 6,644 | – | 6,644 | |||||||||||||||||||||
Pension asset for funded schemes in surplus | – | – | – | 35 | 724 | – | 759 | |||||||||||||||||||||
Deferred tax assets | – | – | – | 495 | 243 | – | 738 | |||||||||||||||||||||
Other non-current assets | – | – | – | 13 | 1,004 | – | 1,017 | |||||||||||||||||||||
Amounts due from group companies after one year | 3,264 | 3,242 | – | – | (6,506 | ) | – | – | ||||||||||||||||||||
Net assets of subsidiaries (equity accounted) | – | 30,824 | 16,709 | 11,017 | (33,116 | ) | (25,434 | ) | – | |||||||||||||||||||
Total non-current assets | 3,264 | 34,110 | 16,735 | 11,560 | (14,030 | ) | (25,434 | ) | 26,205 | |||||||||||||||||||
Inventories | – | – | – | – | 3,578 | – | 3,578 | |||||||||||||||||||||
Amounts due from group companies within one year | – | 1,668 | 421 | 2,015 | (4,104 | ) | – | – | ||||||||||||||||||||
Trade and other current receivables | – | 44 | 1 | 10 | 3,374 | – | 3,429 | |||||||||||||||||||||
Current tax assets | – | 28 | – | 26 | 119 | – | 173 | |||||||||||||||||||||
Other financial assets | – | – | – | – | 972 | – | 972 | |||||||||||||||||||||
Cash and cash equivalents | – | 14 | – | (3 | ) | 2,631 | – | 2,642 | ||||||||||||||||||||
Assets held for sale | – | – | – | – | 17 | – | 17 | |||||||||||||||||||||
Total current assets | – | 1,754 | 422 | 2,048 | 6,587 | – | 10,811 | |||||||||||||||||||||
Financial liabilities | (1,229 | ) | (33 | ) | – | – | (1,017 | ) | – | (2,279 | ) | |||||||||||||||||
Amounts due to group companies within one year | (6 | ) | (16,939 | ) | (4,157 | ) | – | 21,102 | – | – | ||||||||||||||||||
Trade payables and other current liabilities | (37 | ) | (176 | ) | (13 | ) | (24 | ) | (8,163 | ) | – | (8,413 | ) | |||||||||||||||
Current tax liabilities | (1 | ) | (15 | ) | (69 | ) | (4 | ) | (398 | ) | – | (487 | ) | |||||||||||||||
Provisions | – | – | – | (420 | ) | – | (420 | ) | ||||||||||||||||||||
Total current liabilities | (1,273 | ) | (17,163 | ) | (4,239 | ) | (28 | ) | 11,104 | – | (11,599 | ) | ||||||||||||||||
Net current assets/(liabilities) | (1,273 | ) | (15,409 | ) | (3,817 | ) | 2,020 | 17,691 | – | (788 | ) | |||||||||||||||||
Total assets less current liabilities | 1,991 | 18,701 | 12,918 | 13,580 | 3,661 | (25,434 | ) | 25,417 | ||||||||||||||||||||
Financial liabilities due after one year | 1,728 | 3,213 | 838 | – | 1,913 | – | 7,692 | |||||||||||||||||||||
Amounts due to group companies after one year | – | 3,299 | – | 3,256 | (6,555 | ) | – | – | ||||||||||||||||||||
Pensions and post-retirement healthcare liabilities | ||||||||||||||||||||||||||||
Funded schemes in deficit | – | – | – | – | 1,519 | – | 1,519 | |||||||||||||||||||||
Unfunded schemes | – | 90 | – | 620 | 1,112 | – | 1,822 | |||||||||||||||||||||
Provisions | – | 15 | – | 2 | 712 | – | 729 | |||||||||||||||||||||
Deferred tax liabilities | – | 16 | 15 | – | 733 | – | 764 | |||||||||||||||||||||
Other non-current liabilities | – | 3 | – | 84 | 268 | – | 355 | |||||||||||||||||||||
Total non-current liabilities | 1,728 | 6,636 | 853 | 3,962 | (298 | ) | – | 12,881 | ||||||||||||||||||||
Shareholders’ equity attributed to: | ||||||||||||||||||||||||||||
NV | – | – | 13,128 | – | – | (13,128 | ) | – | ||||||||||||||||||||
PLC | – | (1,063 | ) | – | – | – | 1,063 | – | ||||||||||||||||||||
Called up share capital | – | 274 | 210 | – | (1 | ) | – | 484 | ||||||||||||||||||||
Share premium account | – | 25 | 106 | 97 | (97 | ) | – | 131 | ||||||||||||||||||||
Other reserves | (9 | ) | (3,629 | ) | (2,271 | ) | 936 | (1,966 | ) | 1,039 | ) | (5,900 | ) | |||||||||||||||
Retained profit | 272 | 16,458 | 892 | 8,585 | 5,551 | (14,408 | ) | 17,350 | ||||||||||||||||||||
Total shareholders’ equity | 263 | 12,065 | 12,065 | 9,618 | 3,488 | (25,434 | ) | 12,065 | ||||||||||||||||||||
Minority interest | – | – | – | – | 471 | – | 471 | |||||||||||||||||||||
Total equity | 263 | 12,065 | 12,065 | 9,618 | 3,959 | (25,434 | ) | 12,536 | ||||||||||||||||||||
Total capital employed | 1,991 | 18,701 | 12,918 | 13,580 | 3,661 | (25,434 | ) | 25,417 | ||||||||||||||||||||
22UnileverAnnual Report on Form 20-F 2009
Table of Contents
€ million | € million | € million | € million | € million | € million | € million | ||||||||||||||||||||||
Unilever | Unilever | Unilever | ||||||||||||||||||||||||||
Capital | N.V. | United | ||||||||||||||||||||||||||
Corporation | parent | Unilever PLC | States Inc. | Non- | ||||||||||||||||||||||||
subsidiary | issuer/ | parent | subsidiary | guarantor | Unilever | |||||||||||||||||||||||
Balance sheet at 31 December 2008 | issuer | guarantor | guarantor | guarantor | subsidiaries | Eliminations | Group | |||||||||||||||||||||
Goodwill and intangible assets | – | 51 | 23 | – | 16,017 | – | 16,091 | |||||||||||||||||||||
Property, plant and equipment | – | – | – | 1 | 5,956 | – | 5,957 | |||||||||||||||||||||
Pension asset for funded schemes in surplus | – | – | – | – | 425 | – | 425 | |||||||||||||||||||||
Deferred tax assets | – | – | – | 777 | 291 | – | 1,068 | |||||||||||||||||||||
Other non-current assets | – | – | – | 15 | 1,411 | – | 1,426 | |||||||||||||||||||||
Amounts due from group companies after one year | 3,960 | 2,919 | – | – | (6,879 | ) | – | – | ||||||||||||||||||||
Net assets of subsidiaries (equity accounted) | – | 28,829 | 12,788 | 9,534 | (30,789 | ) | (20,362 | ) | – | |||||||||||||||||||
Total non-current assets | 3,960 | 31,799 | 12,811 | 10,327 | (13,568 | ) | (20,362 | ) | 24,967 | |||||||||||||||||||
Inventories | – | – | – | – | 3,889 | – | 3,889 | |||||||||||||||||||||
Amounts due from group companies within one year | – | 2,570 | 611 | – | (3,181 | ) | – | – | ||||||||||||||||||||
Trade and other current receivables | – | 61 | (2 | ) | 5 | 3,759 | – | 3,823 | ||||||||||||||||||||
Current tax assets | – | 24 | – | 80 | 130 | – | 234 | |||||||||||||||||||||
Other financial assets | – | – | – | – | 632 | – | 632 | |||||||||||||||||||||
Cash and cash equivalents | (3 | ) | 7 | – | (4 | ) | 2,561 | – | 2,561 | |||||||||||||||||||
Assets held for sale | – | – | – | – | 36 | – | 36 | |||||||||||||||||||||
Total current assets | (3 | ) | 2,662 | 609 | 81 | 7,826 | – | 11,175 | ||||||||||||||||||||
Financial liabilities | (1,755 | ) | (772 | ) | – | – | (2,315 | ) | – | (4,842 | ) | |||||||||||||||||
Amounts due to group companies within one year | – | (17,181 | ) | (3,351 | ) | – | 20,532 | – | – | |||||||||||||||||||
Trade payables and other current liabilities | (24 | ) | (153 | ) | (7 | ) | (18 | ) | (7,622 | ) | – | (7,824 | ) | |||||||||||||||
Current tax liabilities | (11 | ) | (15 | ) | (101 | ) | 2 | (252 | ) | – | (377 | ) | ||||||||||||||||
Provisions | – | – | – | – | (757 | ) | – | (757 | ) | |||||||||||||||||||
Liabilities associated with assets held for sale | – | – | – | – | – | – | – | |||||||||||||||||||||
Total current liabilities | (1,790 | ) | (18,121 | ) | (3,459 | ) | (16 | ) | 9,586 | – | (13,800 | ) | ||||||||||||||||
Net current assets/(liabilities) | (1,793 | ) | (15,459 | ) | (2,850 | ) | 65 | 17,412 | – | (2,625 | ) | |||||||||||||||||
Total assets less current liabilities | 2,167 | 16,340 | 9,961 | 10,392 | 3,844 | (20,362 | ) | 22,342 | ||||||||||||||||||||
Financial liabilities due after one year | 1,923 | 3,080 | – | (2 | ) | 1,362 | – | 6,363 | ||||||||||||||||||||
Amounts due to group companies after one year | – | 3,089 | – | 666 | (3,755 | ) | – | – | ||||||||||||||||||||
Pensions and post-retirement healthcare liabilities | ||||||||||||||||||||||||||||
Funded schemes in deficit | – | – | – | 449 | 1,371 | – | 1,820 | |||||||||||||||||||||
Unfunded schemes | – | 85 | – | 712 | 1,190 | – | 1,987 | |||||||||||||||||||||
Provisions | – | 41 | – | 3 | 602 | – | 646 | |||||||||||||||||||||
Deferred tax liabilities | – | 64 | 13 | – | 713 | – | 790 | |||||||||||||||||||||
Other non-current liabilities | – | 33 | – | 122 | 209 | – | 364 | |||||||||||||||||||||
Total non-current liabilities | 1,923 | 6,392 | 13 | 1,950 | 1,692 | – | 11,970 | |||||||||||||||||||||
Shareholders’ equity attributed to: | ||||||||||||||||||||||||||||
NV – | – | – | (1,143 | ) | – | – | 1,143 | – | ||||||||||||||||||||
PLC – | – | – | 11,091 | – | – | (11,091 | ) | – | ||||||||||||||||||||
Called up share capital | – | – | 274 | 210 | – | – | 484 | |||||||||||||||||||||
Share premium account | – | 25 | 96 | – | – | – | 121 | |||||||||||||||||||||
Other reserves | (1 | ) | (4,551 | ) | (1,918 | ) | (101 | ) | (2,479 | ) | 2,581 | (6,469 | ) | |||||||||||||||
Retained profit | 245 | 15,343 | 469 | 8,543 | 4,207 | (12,995 | ) | 15,812 | ||||||||||||||||||||
Total shareholders’ equity | 244 | 10,817 | 8,869 | 8,652 | 1,728 | (20,362 | ) | 9,948 | ||||||||||||||||||||
Minority interest | – | – | – | – | 424 | – | 424 | |||||||||||||||||||||
Total equity | 244 | 10,817 | 8,869 | 8,652 | 2,152 | (20,362 | ) | 10,372 | ||||||||||||||||||||
Total capital employed | 2,167 | 17,209 | 8,882 | 10,602 | 3,844 | (20,362 | ) | 22,342 | ||||||||||||||||||||
UnileverAnnual Report on Form 20-F 2009 23
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€ million | € million | € million | € million | € million | € million | € million | ||||||||||||||||||||||
Unilever | Unilever | Unilever | ||||||||||||||||||||||||||
Capital | N.V. | United | ||||||||||||||||||||||||||
Corporation | parent | Unilever PLC | States Inc. | Non- | ||||||||||||||||||||||||
Cash flow statement | subsidiary | issuer/ | parent | subsidiary | guarantor | Unilever | ||||||||||||||||||||||
for the year ended 31 December 2009 | issuer | guarantor | guarantor | guarantor | subsidiaries | Eliminations | Group | |||||||||||||||||||||
Cash flow from operating activities | 13 | 153 | (55 | ) | 71 | 6,551 | – | 6,733 | ||||||||||||||||||||
Income tax | – | (86 | ) | (42 | ) | (52 | ) | (779 | ) | – | (959 | ) | ||||||||||||||||
Net cash flow from operating activities | 13 | 67 | (97 | ) | 19 | 5,772 | – | 5,774 | ||||||||||||||||||||
Interest received | 186 | 48 | 13 | (10 | ) | 27 | (191 | ) | 73 | |||||||||||||||||||
Net capital expenditure | – | (6 | ) | – | – | (1,252 | ) | – | (1,258 | ) | ||||||||||||||||||
Acquisitions and disposals | – | – | – | – | (139 | ) | – | (139 | ) | |||||||||||||||||||
Other investing activities | – | 403 | – | (292 | ) | (50 | ) | 61 | ||||||||||||||||||||
Net cash flow from/(used in) investing activities | 186 | 445 | 13 | (10 | ) | (1,656 | ) | (241 | ) | (1,263 | ) | |||||||||||||||||
Dividends paid on ordinary share capital | – | 118 | 189 | (2,413 | ) | – | (2,106 | ) | ||||||||||||||||||||
Interest and preference dividends paid | (167 | ) | (142 | ) | (59 | ) | – | (340 | ) | 191 | (517 | ) | ||||||||||||||||
Change in borrowings and finance leases | (31 | ) | (612 | ) | (82 | ) | 3 | (895 | ) | 50 | (1,567 | ) | ||||||||||||||||
Share buy-back programme | – | – | – | – | – | – | – | |||||||||||||||||||||
Other movement in treasury stocks | – | 131 | 36 | (11 | ) | (53 | ) | – | 103 | |||||||||||||||||||
Other finance activities | – | – | – | (214 | ) | – | (214 | ) | ||||||||||||||||||||
Net cash flow from/(used in) financing activities | (198 | ) | (505 | ) | 84 | (8 | ) | (3,915 | ) | 241 | (4,301 | ) | ||||||||||||||||
Net increase/(decrease) in cash and | ||||||||||||||||||||||||||||
cash equivalents | 1 | 7 | – | 1 | 201 | – | 210 | |||||||||||||||||||||
Cash and cash equivalents at the beginning of the year | (3 | ) | 7 | – | (4 | ) | 2,360 | – | 2,360 | |||||||||||||||||||
Effect of foreign exchange rate changes | 2 | – | – | – | (175 | ) | – | (173 | ) | |||||||||||||||||||
Cash and cash equivalents at the end of the year | – | 14 | – | (3 | ) | 2,386 | – | 2,397 | ||||||||||||||||||||
Cash flow statement | ||||||||||||||||||||||||||||
for the year ended 31 December 2008 | ||||||||||||||||||||||||||||
Cash flow from operating activities | – | 73 | (527 | ) | 568 | 5,212 | – | 5,326 | ||||||||||||||||||||
Income tax | – | (10 | ) | (162 | ) | (533 | ) | (750 | ) | – | (1,455 | ) | ||||||||||||||||
Net cash flow from operating activities | – | 63 | (689 | ) | 35 | 4,462 | – | 3,871 | ||||||||||||||||||||
Interest received | 196 | 3 | 31 | – | 151 | (276 | ) | 105 | ||||||||||||||||||||
Net capital expenditure | – | (2 | ) | – | 2 | (1,099 | ) | – | (1,099 | ) | ||||||||||||||||||
Acquisitions and disposals | – | – | – | – | 2,265 | – | 2,265 | |||||||||||||||||||||
other investing activities | – | (675 | ) | (2,665 | ) | – | 843 | 2,641 | 144 | |||||||||||||||||||
Net cash flow from/(used in) investing activities | 196 | (674 | ) | (2,634 | ) | 2 | 2,160 | 2,365 | 1,415 | |||||||||||||||||||
Dividends paid on ordinary share capital | – | 297 | 271 | – | (2,654 | ) | – | (2,086 | ) | |||||||||||||||||||
Interest and preference dividends paid | (166 | ) | (111 | ) | – | (4 | ) | (482 | ) | 276 | (487 | ) | ||||||||||||||||
Change in borrowings and finance leases | (34 | ) | 1,490 | 3,315 | – | (1,080 | ) | (2,641 | ) | 1,050 | ||||||||||||||||||
Share buy-back programme | – | (1,225 | ) | (278 | ) | – | – | – | (1,503 | ) | ||||||||||||||||||
Other movement in treasury stocks | – | 165 | 15 | (40 | ) | (37 | ) | – | 103 | |||||||||||||||||||
Other finance activities | – | – | – | – | (207 | ) | – | (207 | ) | |||||||||||||||||||
Net cash flow from/(used in) financing activities | (200 | ) | 616 | 3,323 | (44 | ) | (4,460 | ) | (2,365 | ) | (3,130 | ) | ||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | (4 | ) | 5 | – | (7 | ) | 2,162 | – | 2,156 | |||||||||||||||||||
Cash and cash equivalents at the beginning of the year | 1 | 2 | – | (2 | ) | 900 | – | 901 | ||||||||||||||||||||
Effect of foreign exchange rate changes | – | – | – | 5 | (702 | ) | – | (697 | ) | |||||||||||||||||||
Cash and cash equivalents at the end of the year | (3 | ) | 7 | – | (4 | ) | 2,360 | – | 2,360 | |||||||||||||||||||
24UnileverAnnual Report on Form 20-F 2009
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€ million | € million | € million | € million | € million | € million | € million | ||||||||||||||||||||||
Unilever | Unilever | Unilever | ||||||||||||||||||||||||||
Capital | N.V. | United | ||||||||||||||||||||||||||
Corporation | parent | Unilever PLC | States Inc. | Non- | ||||||||||||||||||||||||
Cash flow statement | subsidiary | issuer/ | parent | subsidiary | guarantor | Unilever | ||||||||||||||||||||||
for the year ended 31 December 2007 | issuer | guarantor | guarantor | guarantor | subsidiaries | Eliminations | Group | |||||||||||||||||||||
Cash flow from operating activities | (8 | ) | (10 | ) | (54 | ) | (67 | ) | 5,327 | – | 5,188 | |||||||||||||||||
Income tax | – | (131 | ) | (21 | ) | (58 | ) | (1,102 | ) | – | (1,312 | ) | ||||||||||||||||
Net cash flow from operating activities | (8 | ) | (141 | ) | (75 | ) | (125 | ) | 4,225 | – | 3,876 | |||||||||||||||||
Interest received | 201 | 33 | 54 | – | 131 | (273 | ) | 146 | ||||||||||||||||||||
Net capital expenditure | – | (14 | ) | – | 2 | (971 | ) | – | (983 | ) | ||||||||||||||||||
Acquisitions and disposals | – | – | – | – | (50 | ) | – | (50 | ) | |||||||||||||||||||
other investing activities | (921 | ) | 1,375 | (84 | ) | 190 | (706 | ) | 410 | 264 | ||||||||||||||||||
Net cash flow from/(used in) investing activities | (720 | ) | 1,394 | (30 | ) | 192 | (1,596 | ) | 137 | (623 | ) | |||||||||||||||||
Dividends paid on ordinary share capital | – | 357 | 232 | – | (2,771 | ) | – | (2,182 | ) | |||||||||||||||||||
Interest and preference dividends paid | (177 | ) | (95 | ) | (1 | ) | (12 | ) | (540 | ) | 273 | (552 | ) | |||||||||||||||
Change in borrowings and finance leases | 906 | (6 | ) | (235 | ) | – | 1,083 | (410 | ) | 1,338 | ||||||||||||||||||
Share buy-back programme | – | (1,500 | ) | – | – | – | (1,500 | ) | ||||||||||||||||||||
Other movement in treasury stocks | – | 291 | 105 | (57 | ) | 103 | – | 442 | ||||||||||||||||||||
Other finance activities | – | (305 | ) | – | – | (250 | ) | (555 | ) | |||||||||||||||||||
Net cash flow from/(used in) financing activities | 729 | (1,258 | ) | 101 | (69 | ) | (2,375 | ) | (137 | ) | (3,009 | ) | ||||||||||||||||
Net increase/(decrease) in cash and cash equivalents | 1 | (5 | ) | (4 | ) | (2 | ) | 254 | – | 244 | ||||||||||||||||||
Cash and cash equivalents at the beginning of the year | – | 7 | 4 | (5 | ) | 704 | – | 710 | ||||||||||||||||||||
Effect of foreign exchange rate changes | – | – | – | 5 | (58 | ) | – | (53 | ) | |||||||||||||||||||
Cash and cash equivalents at the end of the year | 1 | 2 | – | (2 | ) | 900 | – | 901 | ||||||||||||||||||||
UnileverAnnual Report on Form 20-F 2009 25
Table of Contents
Unilever PLC (Registrant) | ||||
/s/ S. G. Williams | ||||
S. G. WILLIAMS, | ||||
Group Secretary | ||||
20-F Exhibits | UNILEVER PLC — 20-F EXHIBIT LIST |
Exhibit Number | Description of Exhibit | |
1.1 | Memorandum and Articles of Association of Unilever PLC, as amended 1 | |
2.1 | Indenture dated as of August 1, 2000, among Unilever Capital Corporation, Unilever N.V., Unilever PLC, Unilever United States, Inc. and The Bank of New York, as Trustee, relating to Guaranteed Debt Securities 2 | |
2.2 | Trust Deed dated as of July 22, 1994, among Unilever N.V., Unilever PLC, Unilever Capital Corporation, Unilever United States, Inc. and The Law Debenture Trust Corporation p.l.c., relating to Guaranteed Debt Securities 3 | |
Equalisation Agreement between Unilever N.V. and Unilever PLC | ||
Service Contracts of the Executive Directors of Unilever PLC | ||
Letters regarding compensation of Executive Directors of Unilever PLC | ||
4.4 | Unilever North America 2002 Omnibus Equity Compensation Plan 4 | |
4.5 | The Unilever PLC International 1997 Executive Share Option Scheme 5 | |
4.6 | The Unilever Long Term Incentive Plan 6 | |
4.7 | Global Share Incentive Plan 2007 7 | |
7.1 | Computation of Ratio of earnings to fixed charges and Return on invested capital 8 | |
8.1 | List of Subsidiaries 9 | |
Certifications of the Chief Executive Officer and Financial Director/Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certifications of the Chief Executive Officer and Financial Director/Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
Annual Report and Accounts sections incorporated by reference | ||
Consent of PricewaterhouseCoopers Accountants N.V. and PricewaterhouseCoopers LLP |
1 | Incorporated by reference to Exhibit 1.1 of Form 20-F filed with the SEC on March 06, 2009. | |
2 | Incorporated by reference to the Form 6-K furnished to the SEC on October 23, 2000. | |
3 | Incorporated by reference to Exhibit 2.2 of Form 20-F filed with the SEC on March 28, 2002. | |
4 | Incorporated by reference to Exhibit 99.1 of Form S-8 filed with the SEC on February 27, 2003. | |
5 | Incorporated by reference to Exhibit 4.5 of Form 20-F filed with the SEC on March 28, 2002. | |
6 | Incorporated by reference to Exhibit 4.7 of Form 20-F filed with the SEC on March 28, 2002. | |
7 | Incorporated by reference to Exhibit 4.7 of Form 20-F filed with the SEC on March 26, 2008. | |
8 | The required information is set forth on page 130 of the Annual Report and Accounts. | |
9 | The required information is set forth on pages 131 to 132 of the Annual Report and Accounts. |