Unilever Annual Report 2015

FY2015 Annual Report · Unilever

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MAKING
SUSTAINABLE LIVING
COMMONPLACE

ANNUAL REPORT
AND ACCOUNTS 2015
STRATEGIC REPORT

LIFEBUOY
HANDWASHING PROGRAMME

WE AIM TO IMPROVE HEALTH AND HYGIENE
FOR 1 BILLION PEOPLE AROUND THE WORLD,
THROUGH BRANDS SUCH AS LIFEBUOY.

OUR HANDWASHING PROGRAMME IS THE
WORLD’S LARGEST, THANKS IN PART TO
FUNDING FROM OUR EXTERNAL PARTNERS.

The campaign was rolled
out in 21 countries.

337 million

Almost 337 million people have
been reached by the Lifebuoy
handwashing programme since
it started.

LIFEBUOY – HELP A CHILD REACH 5
The campaign teaches children the benefits of
washing their hands at key times of the day, helping
to reduce killer diseases such as diarrhoea, and
saving lives at scale. In 2015 the campaign focused
on hand hygiene during the crucial first 28 days after
birth (the neo-natal period), the biggest barrier to
children reaching five.

OUR PURPOSE

UNILEVER HAS A SIMPLE BUT CLEAR
PURPOSE – TO MAKE SUSTAINABLE
LIVING COMMONPLACE. WE BELIEVE
THIS IS THE BEST LONG-TERM WAY FOR
OUR BUSINESS TO GROW.

Our distinct Purpose and our operational expertise
across our business model will help realise our vision
of accelerating growth in the business, while reducing
our environmental footprint and increasing our positive
social impact.

Our Purpose and vision are ambitious but are consistent
with the changing attitudes and expectations of consumers.
Our unswerving commitment to sustainable living is
increasingly delivering both more trust from consumers
and a strong business for shareholders with lower risks and
consistent, competitive and profitable long-term growth.

OUR ANNUAL REPORT AND
ACCOUNTS 2015 IS IN TWO PARTS:

OUR STRATEGIC REPORT
The Strategic Report contains information
about us, how we create value and how we run
our business. It includes our strategy, business
model, markets and Key Performance Indicators,
as well as our approach to sustainability and risk.

GOVERNANCE AND FINANCIAL REPORT
The Governance and Financial Report contains
detailed corporate governance information,
how we mitigate risk, our Committee reports
and how we remunerate our Directors, plus our
Financial Statements and Notes.

ONLINE
You can find more information about Unilever
online at www.unilever.com. For further
information on the Unilever Sustainable Living
Plan (USLP) visit www.unilever.com/sustainable-
living. Our Strategic Report and Governance
and Financial Report, along with other
relevant documents, can be downloaded
at www.unilever.com/ara2015/downloads.

CONTENTS

About us
Chairman’s statement
Chief Executive Officer’s review
Our markets
Our strategic focus
A business model that
creates value
Our performance
Delivering value for our
stakeholders
– Our consumers
– Society
– Our people
– Our shareholders
– Financial review 2015
Our principal risks
Summary remuneration report
Shareholder information

This Strategic Report has been approved
by the Boards and signed on their behalf
by Tonia Lovell – Group Secretary.

2
4
6
10
12

14
16

18
20
24
28
32
35
40
42
44

POTENTIAL FOR CHANGE
Every year 6 million children
die before the age of five. Hygiene,
particularly handwashing with
soap, is one of the most cost-
effective ways to prevent these
deaths. Watch and share our
latest film ‘Chamki’ by director
Anand Ghandi, revealing the
emotional truth behind our
campaign. www.youtube.com/
helpachildreach5.

Unilever Annual Report and Accounts 2015Strategic ReportABOUT US

TWO BILLION PEOPLE USE
UNILEVER PRODUCTS EVERY
DAY TO FEEL GOOD, LOOK GOOD
AND GET MORE OUT OF LIFE.

13
€1 BILLION
BRANDS

OUR CATEGORIES
AND BRANDS

Our Personal Care, Foods, Home Care
and Refreshment categories each contain
a portfolio of brands that aim to deliver
consistent, competitive, profitable
and responsible growth supported by
investment in innovation and marketing.

We have 13 brands with sales of
€1 billion or above and a growing number
of Sustainable Living brands, such as Dove
and Knorr, that deliver strong social or
environmental benefits.

We actively manage our portfolio and
in 2015 added a Prestige skin care range
in Personal Care through acquisition, and
focused some of our Foods brands in a new
Baking, Cooking and Spreads business.

13 €1 BILLION BRANDS

1. Axe
2. Dove
3. Heartbrand
4. Hellmann’s
5. Knorr
6. Lipton
7. Lux
8. Magnum
9. Omo
10. Rama
11. Rexona
12. Sunsilk
13. Surf

Unilever Annual Report and Accounts 2015Strategic Report8

190

WE OPERATE
IN MORE THAN
190 COUNTRIES

2
BILLION

CONSUMERS USE
OUR PRODUCTS
EVERY DAY

WHERE WE OPERATE

Unilever operates in more than 190
countries and is present in seven out of
ten households globally. Some geographies
are new, others we have been in for more
than 100 years. Although we operate in some
markets that are volatile, with specific risks,
our size and scale provide risk diversification
and consistency of returns over the long
term. Our scale means we can take
advantage of global manufacturing and
distribution, providing efficiencies of scale
and driving down costs.

Unilever Annual Report and Accounts 2015Strategic ReportCHAIRMAN’S STATEMENT

CONTINUING TO DELIVER SUSTAINABLE
LONG-TERM GROWTH FOR SHAREHOLDERS.

OVERVIEW
Despite another year of tough economic
conditions, 2015 once again saw the delivery
of consistent, competitive, profitable and
responsible growth, a trend that has now
been firmly established at Unilever.

Over my tenure Unilever has undergone
significant change. The portfolio strategy
has been sharpened and adapted in order
to increase Unilever’s presence in faster
growing and more profitable segments of
the market. Innovations have been made
bigger and stronger and many more brands
have been introduced successfully into new
markets, most recently in 2015 with the
launch of Lux in the Philippines.

The step-up in performance that has
followed these changes has been founded
on a much clearer operating model and
a streamlining of the organisational
structure, which together have helped to
generate the funds for growth while also
resulting in significantly higher levels of
operational discipline and service delivery.
Increased investments have been made in
plant, product quality and information
technology in order to modernise Unilever’s
essential infrastructure and support
growth over the longer term.

The introduction of an inspiring mission in
2010 in the form of the Unilever Sustainable
Living Plan (USLP) has contributed to
business success, with Unilever’s
Sustainable Living brands growing at a
faster rate than the rest of the Group.
Employee engagement has also risen
steadily since the introduction of the USLP
and Unilever is now regularly recognised
as one of the world’s most admired and
sought-after employers.

The Boards were pleased in 2015 to
see Unilever further its commitment to
sustainable and equitable growth under the
USLP by becoming the first ever company
to publish a detailed, stand-alone Human
Rights report under the framework set
down by the UN Guiding Principles on
Business and Human Rights.

A key element in the enhanced performance
of the Group over this period has been a
steady improvement in the strength and
depth of Unilever’s senior management.
Leadership development, talent
management and succession planning
have all been prioritised in pursuit of this
objective and I have been pleased

throughout my chairmanship to engage
the Boards fully and actively in this process.
In 2015 we were once again reassured by
the robustness of the process and by the
pipeline of talent available inside Unilever.

A similar emphasis has been given to the
diversity of talent – and in particular to
gender balance – again, with great results.
The proportion of women occupying
management grades now stands at 45%
of the total, the highest figure in Unilever’s
history and up from 38% just five years
ago. I am also proud to say that Unilever
continues to lead the way among its peers
at Board level, with the proportion of female
Non-Executive Directors in 2015 exceeding
50% for the first time.

ENGAGEMENT
Throughout my chairmanship, the Boards
have looked to engage fully across the
Group and that was the case again in 2015.
We were pleased for example to spend time
at Unilever’s state-of-the-art R&D facility in
Trumbull, US where we saw at first-hand
the high-quality innovations being
developed for the Personal Care category.

Whilst in the US, a number of Directors
also visited Silicon Valley to meet with some
of Unilever’s global partners and to see
how we are anticipating trends and using
technology to better connect with
consumers. The Boards also spent time
in Brussels engaging with European Union
(EU) policy-makers on how to make the
EU a more attractive and competitive
environment in which to do business.

Over the years I have looked to engage
frequently and openly with Unilever’s
shareholder base and that was repeated
in 2015. I met once again with principal
shareholders in Europe and the US and
discussed with them issues related to
strategy and governance. I was also
delighted to visit the Philippines and
Singapore as part of Unilever’s annual
investor conference, where investors were
able to see some of the factors behind the
strength and success of Unilever’s
operations in South East Asia.

I was also pleased to meet with individual
shareholders at our AGMs in April 2015.
These were held for the first time at
Unilever’s offices in the Netherlands and
the UK. Following the success and
simplicity of hosting the AGMs in-house,
we will use the same venues again this year.

Information on the AGMs can be found
within the NV and PLC AGM Notices which
will be published in March 2016.

EVALUATION
Following the external Board evaluation
in 2014, we used a simplified internal
evaluation this year. Whilst we concluded
that overall the Boards continue to operate
in an effective manner, in this VUCA (volatile,
uncertain, complex and ambiguous) world
we set the bar even higher for ourselves
for 2016 in relation to the knowledge we
must acquire as a Board and the risk
assessments we must conclude.

Each Board Committee also performed
its own self-evaluation again and agreed
on areas to enhance its effectiveness
further and these are described within
each Committee report.

BOARD COMPOSITION AND
SUCCESSION
During my tenure as your Chairman,
we have sought to find people with
relevant skills and experience to make a
difference to the Boards’ discussions. Our
thorough processes identified three new
Non-Executive Directors in 2015 and I was
delighted to welcome Nils Andersen,
Vittorio Colao and Judith Hartmann during
the year. They have further strengthened
the digital expertise, financial and industry
experience of the Boards. Ann Fudge
became the Vice-Chairman and Senior
Independent Director following Kees
Storm’s retirement at the 2015 AGMs.

LOOKING AHEAD
Even though the tough trading conditions
are likely to remain for some time to come,
the Boards have full confidence in the
strategy Unilever is following and in the
high calibre of its executive leadership and
management team. The progress Unilever
has made over recent years leaves it well
placed to go on delivering consistent top
and bottom line growth. On behalf of the
Boards I would like to thank all of
Unilever’s 169,000 employees for their
efforts, energy and the successes that you
will read about in this Strategic Report.

Michael Treschow
Chairman

Unilever Annual Report and Accounts 2015Strategic ReportBOARD OF DIRECTORS

1. Michael Treschow

Chairman

2. Ann Fudge

Vice-Chairman and Senior
Independent Director

3. Paul Polman

Chief Executive Officer

4. Graeme Pitkethly Λ

Chief Financial Officer

5. Nils Andersen

Non-Executive Director

6. Laura Cha

Non-Executive Director

7. Vittorio Colao

Non-Executive Director

8. Professor Louise Fresco
Non-Executive Director

9. Judith Hartmann

Non-Executive Director

10. Mary Ma

Non-Executive Director

11. Hixonia Nyasulu

Non-Executive Director

12. John Rishton

Non-Executive Director

13. Feike Sijbesma

Non-Executive Director

14. Tonia LovellΛ

Group Secretary

Graeme Pitkethly will be
proposed for election as an
Executive Director at the
2016 AGMs.

Λ Not a Board member.

For Directors’ biographies,
please see page 58 of
the Governance and
Financial Report.

For more information on
Board evaluation and shareholder
engagement, see pages 46
and 49 of the Governance and
Financial Report. Committee
reports can be found on pages
60 to 83 of the Governance and
Financial Report.

Unilever Annual Report and Accounts 2015Strategic ReportCHIEF EXECUTIVE OFFICER’S REVIEW

UNILEVER COMPLETED YET ANOTHER YEAR
OF GROWTH AHEAD OF ITS MARKETS IN
2015 AND CONTINUED TO DRIVE LONG-TERM
RETURNS FOR SHAREHOLDERS.

Our leadership in making sustainable living
the foundation of our business received
resounding vindication from a number
of political and social developments on a
global scale. Paul Polman, Chief Executive
Officer, answers the key questions
about 2015.

Q: How would you summarise
the year for Unilever?
A: Our long-term ambition is to have
consistent, competitive, profitable and
responsible growth – year in and year
out. This is increasingly difficult in today’s
volatile environment, characterised by
low growth, geopolitical challenges and
the increasing effects of climate change.
Despite this, we delivered another year
of top and bottom line growth – with solid
underlying sales growth of 4.1%. This
consistency has been established over
the last seven years and is of growing
importance to investors looking for
consistency in a world of escalating change
and increasingly volatile markets.

The further deepening of the Unilever
Sustainable Living Plan (USLP) in 2015
and its commitment to reducing our
environmental footprint and increasing
our positive social impact helped to
ensure that growth was responsible.

Q: What changes have
there been to the external
environment that more
broadly impact Unilever?
A: Last year saw a heightening of the
kind of global challenges that have sadly
become all too familiar in recent years.
From climate-related disasters to the
impact of mass migration, from escalating
regional conflicts to the ongoing Eurozone
crisis, the world remains a fragile and
uncertain place. For a company like ours,
operating in more than 190 countries
around the world, these issues often place
us on the front line in dealing with the
consequences, which is why our business
model calls on us to be an active
contributor in finding solutions.

The trust in business generally to play its
part in solving today’s challenges was
undermined this year by some high-profile
corporate scandals. These remind us of
both the need for business models that
make a positive contribution to society and
of the importance of reporting impacts
transparently across the value chain – only
that will build trust. These are hallmarks
of the USLP, which is serving us well.

On a positive note, the year saw world
leaders endorse the UN Sustainable
Development Goals (SDGs) and an

GLOBAL ISSUE – SAVING WATER

ambitious deal on reducing climate change
at COP21 (see page 24). These provide the
framework for eradicating poverty and for
delivering more sustainable and equitable
forms of growth. There is no business case
for enduring poverty and this agenda is key
to the long-term success of any company.
Unilever played an important role in the
process leading up to the adoption of these
agreements, which align with the USLP
and our vision of a fairer world for all.

Q: What went well for
Unilever in 2015?
A: Most pleasing was the broad-based
nature of our growth – across all major
categories, including Foods, which I called
out as a priority last year. We are steadily
reaping the benefits of having created four
global categories – which bring scale to our
operations and innovations – and of adopting
sharper strategies for each category.

In Personal Care that has meant growing
core brands, like Dove and Axe, while
further building our very attractive premium
business. In Home Care, the focus is on
improving profitability in laundry while
scaling up our fast-growing household
cleaning business. In Refreshment, we
committed to increase the cash contribution
from ice cream, while accelerating growth
in tea. And in Foods, the focus has been on
accelerating growth while maintaining a
healthy cash flow. Though there is more
to do, we made good progress against all
these strategic objectives in 2015.

BY 2020 WATER
ABSTRACTION BY
OUR FACTORIES
WILL BE BELOW
2008 LEVELS

2.8 billion

people live in water-stressed regions –
a risk to Unilever’s growth because our
products contribute significantly to domestic
water usage. But there’s also a business
opportunity to meet people’s needs better.

WE PROVIDE LAUNDRY PRODUCTS COMBINING
EXCELLENT RESULTS WITH LESS WATER.
OUR USLP TARGET IS TO HALVE THE WATER
ASSOCIATED WITH THE CONSUMER USE OF
OUR PRODUCTS BY 2020.

We provide access to billions of litres of
safe water through our Pureit and Qinyuan
brands, improving the lives of millions
of people.

Unilever Annual Report and Accounts 2015Strategic ReportOUR
SUSTAINABLE
LIVING BRANDS
ARE WORKING
TOWARDS MAKING
THE SDGs
A REALITY

GLOBAL COLLABORATION

SUSTAINABLE
DEVELOPMENT GOALS

The United Nations adopted 17
Sustainable Development Goals
(SDGs) in 2015, providing a
historic opportunity to build a
better future for everyone, and
aiming to ensure the health,
safety and future of our planet.

KNORR IS FORTIFYING BOUILLON CUBES
WITH IRON TO TACKLE ANAEMIA IN
NIGERIA, SUPPORTING SDG 3 ‘GOOD
HEALTH AND WELL-BEING’.

MEETING THESE GOALS WILL
FUNDAMENTALLY CHANGE
HOW WE DO BUSINESS.

We further enhanced our presence in the
faster growing premium sectors of the
market, both by premiumising our existing
portfolio – with initiatives like Dove
Advanced Hair Series – and by building a
Prestige business in Personal Care with
the acquisition of wonderful businesses
like Dermalogica, REN, Murad and Kate
Somerville. The addition of similarly strong
acquisitions in Refreshment – Grom and
Talenti – are enabling us to premiumise
further our offering in ice cream.

Q: How did this translate
into the financial performance
of Unilever?
A: Despite operating in soft markets,
we sustained our growth momentum
throughout the year and underlying
sales growth of 4.1% represents a good
performance in global markets growing
at around 3%.

Our savings and efficiency programmes,
combined with the efforts we have made
to drive profitability in certain parts of the
business, notably Home Care, and our
emphasis on more margin-accretive
innovations, meant that we ended the year
with an improvement in core operating
margin of 0.3 percentage points.

Tight control of working capital contributed
to a healthy year of cash flow delivery of
€4.8 billion, which – combined with the
improvement in operating margin –
contributed to core earnings per share
growth of 14%.

Q: Where do you see the
need for most improvement?
A: There are three areas in particular
where we need to step up performance
next year.

First, with competition coming from all
directions and at an ever faster pace, we
need to improve our innovation cycle
times and ensure we roll out innovations
faster and to more markets. To that end,
we have set ourselves some challenging
objectives on innovation time and
organisational agility.

Second, we have many wonderful brands
but if they are not where the shopper
wants them, when they want them, then
our business will suffer. Sharpening
our execution with improved distribution,
customer service levels and on-shelf
availability are urgent priorities.

And, finally, with growth – particularly
price growth – set to remain constrained
for some time to come, it is even more
important that we bear down on all
spending areas and ensure that our costs
only reflect what the consumer is willing to
pay for. We will be rolling out net revenue
management and zero-based budgeting
across the organisation from 2016 to keep
our business competitive and ensure we
have the funds to invest behind the many
opportunities for growth that still exist.

We have made significant progress in each
of these areas over recent years, but it is
a mark of how fast the environment is
evolving that, to remain agile and effective,
we need to step up our efforts once again.

Q: How were you able to further
your commitment to sustainable
and equitable growth in 2015?
A: The USLP commits us to a total value
chain approach and we made further
progress, including in driving the efficiency
and sustainability of our own operations. We
reached a milestone of 1 million tonnes of
CO2 savings from energy in manufacturing
– that’s a reduction of 36% since 2008; we
have now avoided costs of over €600 million
as a result of eco-efficiency savings in our
factories and in 2015 our proportion of
agricultural raw materials sourced
sustainably reached a new high of 60%.
While these measures are necessary, they
are not sufficient; we have always said that
the biggest impact we can have is in driving
consumer behaviour change through our
Sustainable Living brands, like Dove,
Lifebuoy, Ben & Jerry’s and Comfort. In
2015, we announced findings that these
purpose-driven brands were growing at
twice the rate of the rest of the business.

Sustainable and equitable growth go
hand in hand and in 2015 we were
pleased to demonstrate our unwavering
commitment to equitable growth by being
the first company to produce a human
rights report using the UN Guiding
Principles Reporting Framework. While
the report acknowledges that we still have
progress to make, we believe that this kind
of openness and transparency is a vital part
of driving up standards across the board.

Unilever Annual Report and Accounts 2015Strategic ReportCHIEF EXECUTIVE OFFICER’S REVIEW
CONTINUED

Q: Unilever has many
stakeholders. How did the
Group best serve them?
A: We treat our relationship with the many
stakeholders we serve – and rely upon –
incredibly seriously. We wouldn’t have a
healthy and thriving business without them.

Our first priority is to the 2 billion
consumers we serve every day with
products that make them feel good, look
good and get more out of life, and last year
we were proud to see Unilever appear as
the company with the highest number
of brands in the Kantar Top 50 ranking
of the World’s Most Chosen Brands.

Our approach to those we work with across
the value chain has always been based on
collaboration and partnership and we were
pleased to take that forward again under
our hugely successful Partner to Win
programme. We have a broad base of
long-term shareholders and they benefited
from a Total Shareholder Return of 15.6%
in 2015. We also continued to invest heavily
in our most important resource – our
people – including through measures to
further our commitment to gender
balance. The number of women among
our total population of managers rose to
45% – still short of where we want to be,
but among the best record of any company
of our size and up significantly over the
past five years.

The USLP, as reported elsewhere,
and the work of the Unilever Foundation
continue to ensure that we not only serve
the communities in which we operate
but engage fully with them in a spirit
of seeking to drive wider societal and
environmental benefits.

Q: What do you see as the
biggest challenge and the
biggest opportunity ahead?
A: Next to dealing with the effects of
climate change, requiring world leaders
to implement the agreements that will
enable us to drive sustainable models,
the biggest challenge and opportunity we
face is the pace of change. Change today
is exponential. Driven by advances in
technology, whole industry sectors are
being disrupted. Companies that have been
around for decades can suddenly find
themselves obsolete, while – at the other
end of the spectrum – relatively young
companies are being valued at billions of
euros even before they start to generate
much in the way of revenue.

For the fast moving consumer goods sector,
these changes manifest themselves in a
number of ways. They give rise, for example,
to much more formidable local competitors.
With their agile business models and
proximity to consumers, these businesses
are gaining share in many markets.

In this environment, the opportunity exists
to show that we can continue to develop
a portfolio of brands with the right blend
of global and local presence, supported
by an organisational structure that is
resilient enough to withstand shocks
and agile enough to respond to rapidly
emerging trends.

We are doing just that and made further
progress in 2015, including – as I like to
put it – by ‘experimenting on the edges’
with different models that sit outside our
core business and allow us to trial new
approaches. The creation of our new
Baking, Cooking and Spreads business is
a good example of how we are doing this
in a more established part of the business;

while our direct-to-consumer offerings
in premium businesses like T2 and Maille,
and our Unilever Foundry and the platform
it provides to work collaboratively with
innovators and entrepreneurs in the
technology space, are great examples of
how we are tapping into emerging trends.

Q: What is your outlook for 2016?
A: We don’t expect to see any significant
or immediate improvement in the overall
health of the world economy. It is clear that
the economic recovery in the developed
markets of Europe and North America will
remain slow and protracted, while the
slowdown in the emerging markets is likely
to continue for some time to come.

For all these reasons, we remain prudent
in our approach and single-mindedly
focused on building the resilience and the
agility of our portfolio and our organisation.
We made good progress on these fronts
in 2015, which gives me further confidence
that we can continue to deliver on our
objective of consistent top and bottom line
growth, to the benefit of our long-term
shareholders and the many others who
rely on Unilever. I want to thank them and,
above all, our wonderful 169,000 employees,
whose dedication, commitment and sense
of purpose shone through again in 2015.

Paul Polman
Chief Executive Officer

BUSINESS IMPACT OF
SUSTAINABLE LIVING BRANDS

SUSTAINABLE
LIVING BRANDS
GREW AT TWICE
THE RATE OF
OTHER UNILEVER
BRANDS IN 2014

Consumers want responsible business
and responsible brands. Our brands whose
purpose and products respond to that –
Sustainable Living brands – are delivering
stronger and faster growth.

SUSTAINABLE LIVING BRANDS
ACCOUNTED FOR HALF OF UNILEVER’S
GROWTH IN 2014.

self-esteem
project

The Dove Self-Esteem Project is helping young
people around the world build positive body
confidence and self-esteem through evidence-based
programmes in schools, online resources for
parents and partnerships with youth organisations.

Unilever Annual Report and Accounts 2015Strategic ReportUNILEVER LEADERSHIP
EXECUTIVE (ULE)

Paul Polman∆
Chief Executive Officer
(Pictured on pages 5 and 7)

1. Doug Baillie∞

Chief Human Resources Officer

2. David Blanchard
Chief R&D Officer

3. Marc EngelΩ

Chief Supply Chain Officer

4. Kevin Havelock

President, Refreshment

5. Alan Jope

President, Personal Care

6. Kees Kruythoff

President, North America

7. Leena Nair∞

Chief Human Resources Officer

8. Nitin Paranjpe

President, Home Care

9. Graeme Pitkethly

Chief Financial Officer

10. Ritva Sotamaa

Chief Legal Officer

11. Amanda Sourry
President, Foods

12. Keith Weed

Chief Marketing &
Communications Officer

13. Jan Zijderveld

President, Europe

∆ Board member.

∞ Leena Nair will join ULE on
1 March 2016 following the
retirement of Doug Baillie.

Ω Marc Engel joined ULE on

1 January 2016.

Graeme Pitkethly will be proposed
for election as an Executive Director
at the 2016 AGMs.

For ULE biographies, please
see page 59 of the Governance
and Financial Report.

Unilever Annual Report and Accounts 2015Strategic ReportOUR MARKETS

UNILEVER OPERATES IN THE HIGHLY COMPETITIVE
FAST MOVING CONSUMER GOODS SECTOR – A
SECTOR WHICH IS SUBJECT TO AN ARRAY OF GLOBAL
PRESSURES AND VOLATILITY.

The top 25 FMCG companies have
combined sales of about €530 billion,
competing against each other and an
increasingly sophisticated set of local
competitors.

CONSUMER CONFIDENCE
Demand for FMCG products is affected
by consumer confidence which reflects
levels of economic growth.

In broad terms, consumer demand
remained weak in 2015, with market
growth continuing to be subdued in
emerging markets while showing
some signs of low-level growth in
North America and Europe.

Many emerging markets were hit by local
currency devaluations versus the US dollar,
driving up the cost of consumer goods
faster than wage growth. A number of these
economies export commodities and have
also been hit by slowing global demand.

In response to devaluations, interest rates
in many countries remained relatively high,
further squeezing incomes. Brazil, in
recession, and Russia were particularly hit.

Stalling economic growth in China
undermined the performance of many of its
South East Asian trading partners, further
weakening local currencies. However, the
Chinese de-stocking of 2014 in our markets
was not repeated and growth was seen in
e-commerce and secondary cities.

Innovation, particularly in marketing,
is a primary concern as people’s media
consumption habits change. Digital
marketing now drives sales through all
customer channels.

E-commerce now commands 2% of
industry sales, while in China it is already
5%, driven by the growth in companies
such as Alibaba’s Taobao and T-Mall. In
the US e-commerce is 2% of sales and
in the UK it is around 6%.

European markets were characterised by
small amounts of volume growth cancelled
out by price deflation. North America
achieved modest overall growth of 1%-2%
in our markets.

Changing digital habits reflect the adoption
of consumer technology. In 2000 there
were 750 million mobile phones compared
with 7 billion today. By 2020 there will be
over 30 billion connected devices.

DIGITAL AND E-COMMERCE
The impact of digital technology continues
and has now become a mainstream factor
determining success in everything from
manufacturing to marketing. The industry
is rapidly adjusting to consumers operating
in a mobile, connected world, albeit
through fragmented media – from basic
mobile phones and PCs to smartphones,
tablets and TVs.

The boom in video – over 400 hours’ worth
of video content is uploaded to YouTube
every minute – is vitally important in FMCG
marketing. Content is shared through
social media networks and this forces
greater transparency from corporations.

THE HELLMANN’S GROW
WITH US DIGITAL CAMPAIGN

MORE THAN
80 MILLION
INTERACTIONS
WITH CONSUMERS
IN ONLY TWO WEEKS
IN MORE THAN
3,500 CITIES

Grow With Us – a digital campaign that
opened a Hellmann’s ketchup tomato farm
to consumers via an interactive live
streaming platform so they could follow
and participate in the next harvest, proving
the brand’s natural qualities.

47%

increase in people who know
that Hellmann’s ketchup comes
from natural sources.

Unilever Annual Report and Accounts 2015Strategic Report
HOUSEHOLDS ARE CHANGING
For companies operating in the
FMCG industry the question of what
a household is in today’s society is a
critical one. Our products are household
goods so changes in what households
demand, and why, have an important
impact on our business. We are seeing
rapid change in the concept of the
household, which has become more
diverse and unconventional over the
past 50 years.

This is reflected in more fluid family
roles and responsibilities within
households as the working patterns

and identities of principal income earners
change. The number of households is also
increasing rapidly as more people live on
their own or in smaller family units. Single
occupant households have risen to 17.5%
worldwide and 33% in Western Europe.

The change in the nature of households
is linked to the changing role that women
are playing in societies around the world.
For many large FMCG companies, women
constitute the majority of the customer
base and their purchasing decisions are
therefore critical to the industry’s
development. There has been rapid

growth in educational attainment by
women where, in many countries, they
make up more than 50% of graduates.
This has not yet, however, translated
into greater labour market participation,
better pay or more executive roles.
However, the trends in our markets
suggest this is changing and will do
so at an increasing pace.

17.5%

Single occupant households
have risen to 17.5% worldwide.

EMERGING SOCIAL TRENDS
FMCG companies are among the first
to experience and be affected by today’s
rapidly changing tastes, social norms,
population shifts and wealth distribution.

The world’s economic centre of gravity
is moving to the southern and eastern
hemispheres. By 2025 almost half of
Fortune 500 global companies will be
from emerging markets.

These trends drive urbanisation. In 2010
there were 27 cities of more than 10 million
people. By 2030 it is expected that there will
be 41. In turn, emerging market consumers
are increasingly demanding product
standards common in the West where
premiumisation is a dominant trend.

The West retains strong economic
opportunities but wage growth is
stubbornly low and unemployment high,
reaching 20% among Eurozone youth.
Although bilateral trade deals continue,
these conflicting pressures are leading
to some signs of protectionism.

The world is getting older with dependency
rates rising. Between 2015 and 2050, the
proportion of the world’s population aged
over 60 will nearly double from 12% to 22%
and in China alone there will be 330 million
people over the age of 65 by 2050 compared
with 110 million today.

At the same time, younger generations of
millennials (18 to 34 year-olds) have new
expectations, from authenticity and quality
of products to standards of corporate
behaviour. Their work, shopping, leisure
and media habits are radically different.

Such change mirrors social upheaval
with societies becoming more complex,
accommodating rapidly changing ways of
living. In London, 300 languages are spoken
and, in the UK as a whole, almost a third of
households are single occupancy. Forced
and voluntary migration is happening on
a scale not seen since World War II.

Other new economic forces are emerging.
By 2030, 27% of the world’s 8.3 billion
population will be Muslim compared with
23% in 2010. Women are an increasing
force for change. In Latin America the
labour participation rate for working-age
females climbed from 53% in 1992 to 65%
two decades later.

But pressures remain. Inequality is
widening, with the 80 richest people having
a combined wealth equal to the poorest
3.5 billion. The environment is under
increasing stress, demanding a greater
response from people and companies. The
World Health Organization estimates that
7 million people die from air pollution each
year. Ice caps are melting at 12% a decade,
which means global warming and drought
with profound implications for the FMCG
sector. With the existing climate change
scenario, almost half the world’s population
will be living in areas of high water-stress
by 2030.

COMPETITION
The FMCG industry is characterised
by global competition between large
multinational corporations seeking to
differentiate themselves in the eyes of
consumers while accessing markets
through similar channels. Some of the
largest FMCG companies competing
alongside Unilever include: Nestlé,
Procter & Gamble, L’Oréal, Danone,
KraftHeinz and Colgate-Palmolive.
Many have identified emerging markets
as a major growth opportunity in the
years to come.

Competition continues unabated. In 2015
one notable trend in certain parts of the
FMCG sector, mainly in foods in the
slower-growth developed markets, was
consolidation often driven by private
equity investment activity.

There has also been significant
deconstruction and refocusing with
competitors selling brand portfolios
to achieve efficiency gains.

Local competitors remain a vibrant
presence with innovations and consumer
offers to rival those of global players.
Among customers, the relative decline of
supermarkets continues in favour of local
and convenience stores, discount chains
– often with own label offers – and
e-commerce.

Unilever Annual Report and Accounts 2015Strategic ReportOUR STRATEGIC FOCUS

TO REALISE OUR VISION WE HAVE INVESTED
IN A LONG-TERM STRATEGY OF CATEGORIES
AND BRANDS THAT DELIVER GROWTH TO
THE BENEFIT OF ALL STAKEHOLDERS.

Long-term value comes from investing in marketing, world-class
manufacturing, innovation and a workforce of the best talent
available to deliver growth that is consistent, competitive,
profitable and responsible.

VISION

OUR LONG-TERM FOCUS ALLOWS US TO MAKE STRATEGIC

CHOICES TO DRIVE VALUE FOR STAKEHOLDERS

POSITIVE
SOCIAL IMPACT

DOUBLE THE
BUSINESS

PORTFOLIO CHOICES

CATEGORY
CHOICES
The four categories of
Personal Care, Foods,
Home Care and
Refreshment have clear
strategic priorities to
contribute to growth.

REDUCE
ENVIRONMENTAL
FOOTPRINT

BRANDS AND INNOVATION

GROWING
THE BUSINESS

• SALES
• MARGIN
• CAPITAL EFFICIENCY

IMPROVING HEALTH
AND WELL-BEING

• NUTRITION
• HEALTH AND HYGIENE

ENHANCING
LIVELIHOODS

• FAIRNESS IN THE WORKPLACE
• OPPORTUNITIES FOR WOMEN
• INCLUSIVE BUSINESS

REDUCING
ENVIRONMENTAL IMPACT

• GREENHOUSE GASES
• WATER
• WASTE
• SUSTAINABLE SOURCING

A FOCUSED APPROACH
TO INNOVATION
Each category has a focused
research and development
capability embedded
within its operations,
supported by a wider
Strategic Science Group.

MARKET DEVELOPMENT

ROUTES TO MARKET
We lead market development
by reaching up, down and
wide, and growing new
channels with a focus on
execution through our
10 million Perfect Stores
programme.

AGILITY AND COST

ZERO-BASED
BUDGETING
We are taking the next steps
on cost reduction to ensure
competitiveness and to fuel
growth with the roll-out
of zero-based budgeting.

PEOPLE

ATTRACTING TALENT
In our target universities we
are FMCG Graduate Employer
of Choice in 34 countries.
LinkedIn continues to be a key
channel for attracting and
engaging external talent.

ACTIVE PORTFOLIO
MANAGEMENT
We actively manage our
brand portfolio to focus it on
more attractive segments
where we can apply global
scale and local strength.

DRIVING EFFICIENCY
AND MARGINS
Since 2013 we have
undertaken fewer but larger
innovation projects with the
average size 25% bigger and
more than 70% of projects
margin accretive.

EMERGING MARKETS
We are expanding from
a strong base with proven
market development models
to drive increased per capita
usage so that emerging
markets are now 58% of
total sales and rising.

MANUFACTURING
BASE AND OVERHEADS
We operate an award-
winning, low-cost, flexible
supply chain that delivers
winning quality and
reliability to our markets.

DEVELOPING TALENT
In 2015, we sharpened our
learning strategy behind
six core capabilities that
we believe will build a
winning business.

Unilever Annual Report and Accounts 2015Strategic Report

OUR LONG-TERM FOCUS ALLOWS US TO MAKE STRATEGIC

CHOICES TO DRIVE VALUE FOR STAKEHOLDERS

GROWTH

BUILDING A
PRESTIGE BUSINESS
Through acquisition we
have invested in the growth
opportunity of Prestige skin
care brands Dermalogica,
Kate Somerville, REN
and Murad.

INCREASED INVESTMENT
IN DIGITAL MARKETING
In a mobile-connected world
our brands are supported by
sophisticated digital marketing
that integrates seamlessly with
e-commerce and drives sales
through all channels.

E-COMMERCE
E-commerce grew by more
than 40% in 2015 thanks to
a focus on brilliant execution
online where 80% of sales
are made from the first
page view.

LEVERAGING SCALE
We bring the benefits of
scale to our operations,
driving down costs while
making the company
more agile and simple.

VALUES-LED AND
EMPOWERED
Our people are our greatest
asset. We focus on their
well-being, empowerment
and connection with our
Purpose.

CONSISTENT

We deliver consistency in underlying sales
growth, core operating margin and free
cash flow by continuously investing in our
supply chain, our brands and marketing,
our people and IT to provide a long-term
sustainable business.

COMPETITIVE

By investing in innovation we can grow our
market share while also seeking to enter
new markets and new segments such as
premium brands in categories like
Personal Care and Refreshment.

PROFITABLE

We seek continuous improvement in our
world-class manufacturing to drive cost
savings and higher returns, providing extra
fuel for growth as cash is redeployed in
new strategic opportunities.

RESPONSIBLE

Growth that’s responsible involves having
a positive social impact and reduced
environmental footprint, which is the
essence of the USLP and is essential in
protecting and enhancing our reputation.
Our Sustainable Living brands are working
towards making the new UN Sustainable
Development Goals a reality.

Unilever Annual Report and Accounts 2015Strategic ReportA BUSINESS MODEL THAT CREATES VALUE

UNILEVER BELIEVES PROFITABLE GROWTH
SHOULD ALSO BE RESPONSIBLE GROWTH.

That approach lies at the heart of our business model, driven by sustainable living and the
Unilever Sustainable Living Plan (USLP). It guides our approach to how we do business and
how we meet the growing consumer demand for brands that act responsibly in a world of
finite resources. Our business model begins with consumer insight that informs brand
innovation, often with partners in our supply chain, to create products we take to market
supported by marketing and advertising across a range of distribution channels.

We work with governments,
NGOs and other stakeholders
to drive change that’s good for
society and good for business,
and we work with partners in
our supply chain, through our
Partner to Win programme,
to create innovations in
products and packaging.
69% of our innovations are
associated with supplier-
sourced technology, such as
from Sonoco which provides
reusable packaging for our
Country Crock brand in the US.

2.36 billion

millennials by 2025.

Societies are dynamic.
There will be 2.36 billion
millennials (18 to 34 year-olds)
by 2025 with diverse and very
different preferences and
shopping habits to other age
groups. We not only need
insight into these trends,
through focus groups and
quantitative studies, but also
the ability to predict them using
the latest digital research
technologies in order to maintain
our competitive advantage.

CONSUMER INSIGHT

COLLABORATION

HOW WE DRIVE SUSTAINABLE VALUE

Unilever aims for a virtuous circle of growth with the USLP at its heart.
It creates profitable volume growth driven by investment in innovation and
brands to deliver products to 2 billion people every day. Our scale means
we can spread fixed costs and improve profitability.

SALES

MARKETING

€1-2

The additional spend on Unilever
products in an e-commerce shop
versus the equivalent basket in a
physical store.

We generate consumer-led
growth through a marketing
spend of about €8 billion a year.
We use multiple platforms to
achieve cut-through in a highly
fragmented media. Effective
digital marketing is essential
and influences shopping at all
stages of the decision-making
process and through all
channels. We partner with many
digital start-ups through our
Unilever Foundry programme
to bring the most cutting edge
marketing to Unilever brands.

WE PARTNER
WITH CUSTOMERS
TO PIONEER NEW
PRODUCTS AND
CONCEPTS

We work closely with retailers
to win in the market place,
making sure our brands are
always available and properly
displayed, in all channels from
supermarkets to e-commerce.
We have achieved supplier
of choice status for 12% of
markets and are in the top three
suppliers for 24% of markets.

Unilever Annual Report and Accounts 2015Strategic Report 60%

of agricultural raw materials
sustainably sourced.

€1 billion

spent on R&D per year.

WE EMPLOY
MORE THAN
6,000 R&D
PROFESSIONALS
AROUND THE
WORLD

Our R&D mission is to
build brands through
benefit-led innovation
unlocked by science and
technology. We spend about
€1 billion a year on research
and development, employ more
than 6,000 R&D experts and have
six key R&D sites. Category-
specific R&D is complemented
by a Strategic Science Group
working on long-term science
breakthroughs. Both are
supported by capabilities such
as regulatory, safety and
environmental assurance.

INNOVATION

SOURCING

This allows us to invest further, growing free cash flow and investing back into
the business through innovation and marketing, to create even stronger
brands. This drives profitable volume growth and the virtuous circle continues.

LOGISTICS

MANUFACTURING

Delivering products to our
customers is the role of
logistics. We are centralising
our operations with a network
of global UltraLogistik control
towers to improve customer
service, cut costs and reduce
CO2 emissions which have fallen
by around 21% across 14
countries since 2010. We
increasingly use hybrid vehicles
and rail rather than road.

No.1

FMCG supply chain
according to Gartner.

We have a €35 billion annual
procurement programme
including agricultural raw
materials, 60% of which are
sustainably sourced. We are
rolling out a Responsible
Sourcing Policy and 170
Partner to Win suppliers met
the self-assessed criteria in
2015. We reached the landmark
of 100% certified and traceable
palm oil sourced for our
European and Australian
food businesses in 2015.

Unilever has the world’s No.1
FMCG supply chain according
to Gartner. We operate almost
300 factories and have invested
heavily in efficiency and
eco-production. Sales per
factory have increased by 30%
since 2009 while costs avoided
through eco-production have
exceeded €600 million since
2008. In 2015, the total
non-hazardous waste sent to
landfill was 196 tonnes, which
is 0.14% of the 2008 baseline
of 141,767 tonnes.

Unilever Annual Report and Accounts 2015Strategic ReportOUR PERFORMANCE

THE BENEFITS THAT OUR VISION AND STRATEGY
DELIVER TRANSLATE INTO PERFORMANCE FOR
SHAREHOLDERS AND SOCIETY AT LARGE.

FINANCIAL PERFORMANCE

GROWING THE BUSINESS: GROUP

UNDERLYING SALES
GROWTH*

UNDERLYING VOLUME
GROWTH*

CORE OPERATING
MARGIN*

FREE CASH FLOW*

2015

4.1%

2014: 2.9%

2015

2.1%

2014: 1.0%

Underlying sales growth
averaged 4.9% over five years.

Underlying volume growth
averaged 2.1% over five years.

2015

14.8%

2014: 14.5%

Core operating margin has
steadily increased over five
years from 13.5% to 14.8%.

2015

€4.8 billion

2014: €3.1 billion

Unilever has generated free
cash flow of €19.2 billion over
five years.

GROWING THE BUSINESS: CATEGORIES

PERSONAL CARE

Turnover

FOODS

Turnover

HOME CARE

Turnover

REFRESHMENT

Turnover

€20.1 billion

2014: €17.7 billion

€12.9 billion

2014: €12.4 billion

€10.2 billion

€10.1 billion

2014: €9.2 billion

Underlying sales growth

4.1%

2014: 3.5%

1.5%

2014: (0.6)%

5.9%

2014: 5.8%

5.4%

2014: 3.8%

Core operating margin

18.9%

2014: 18.7%

18.2%

2014: 18.6%

7.6%

2014: 6.3%

9.4%

2014: 8.8%

* Key Financial Indicators. These measures are non-GAAP measures. 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 38 and 39.

Unilever Annual Report and Accounts 2015Strategic ReportUNILEVER SUSTAINABLE LIVING PLAN

IMPROVING HEALTH AND WELL-BEING

ENHANCING LIVELIHOODS

By 2020 we will help more than a billion people
take action to improve their health and well-being.

By 2020 we will enhance the livelihoods of millions of people
as we grow our business.

HEALTH AND
HYGIENE
TARGET
By 2020 we will help
more than a billion
people to improve their
health and hygiene.
This will help reduce
the incidence of life-
threatening diseases
like diarrhoea.

PERFORMANCE
Around 482 million
people reached by
end 2015 through our
programmes on
handwashing, safe
drinking water, oral
health and self-esteem.

NUTRITION
TARGET
By 2020 we will double
the proportion of our
portfolio that meets
the highest nutritional
standards, based on
globally recognised
dietary guidelines. This
will help hundreds of
millions of people to
achieve a healthier diet.

PERFORMANCE
34% of our portfolio
by volume met highest
nutritional standards
in 2015.◊

OPPORTUNITIES
FOR WOMEN
TARGET
By 2020 we will empower
5 million women.

PERFORMANCE
We trained 70,000
women micro-
entrepreneurs to sell
our products in rural
India by end 2015.Ж

The percentage of
persons of each sex who
were Unilever managers
was 55% male and 45%
female (2014: 57% male
and 43% female).**

INCLUSIVE
BUSINESS
TARGET
By 2020 we will have
a positive impact on
the lives of 5.5 million
people.

PERFORMANCE
Since 2006, in
partnership with others,
we enabled around
600,000Ψ smallholder
farmers and 1.8 million
small-scale retailers to
access initiatives which
aimed to improve their
agricultural practices or
increase their sales.Ж

FAIRNESS IN THE
WORKPLACE
TARGET
By 2020 we will advance
human rights across our
operations and extended
supply chain.

PERFORMANCE
54% of procurement spend
through suppliers meeting
mandatory requirements
of our Responsible
Sourcing Policy.

We published our first
Human Rights Report
in 2015.

Our Total Recordable
Frequency Rate for
2015 was 1.12 per
million hours worked
(2014: 1.05).**◊Φ

Engagement score
among 5,000 employees
surveyed in 2015 was
77% (2014: 75%).**‡

REDUCING ENVIRONMENTAL IMPACT

By 2020 our goal is to halve the environmental footprint of the making and use of our products as we grow our business.

GREENHOUSE GASES
TARGET
Halve the greenhouse
gas impact of our products
across the lifecycle by 2020.

PERFORMANCE
OUR OPERATIONS
We produced 88.49kg C02
from energy per tonne of
manufacturing production
(2014: 92.14kg).**◊Φθ

OUR PRODUCTS’ LIFECYCLE
Our greenhouse gas impact
per consumer use has increased
by around 6% since 2010.◊¥

WATER
TARGET
Halve the water associated
with the consumer use of our
products by 2020.

WASTE
TARGET
Halve the waste associated
with the disposal of our products
by 2020.

SUSTAINABLE SOURCING
TARGET
By 2020 we will source 100% of
our agricultural raw materials
sustainably.

PERFORMANCE
OUR OPERATIONS
We used 1.88m3 water per tonne
of manufacturing production
(2014: 2.01m3).**◊Φ

OUR PRODUCTS IN USE
Our water impact per consumer
use has reduced by around 1%
since 2010.◊¥

PERFORMANCE
OUR OPERATIONS
We sent for disposal 0.26kg
of total waste per tonne of
manufacturing production
(2014: 1.19kg).**◊Φ

OUR PRODUCTS AT DISPOSAL
Our waste impact per consumer
use has reduced by around 29%
since 2010.◊¥

PERFORMANCE
60% of our agricultural raw
materials sustainably sourced
by end 2015.

** Key Non-Financial Indicators.
◊ PricewaterhouseCoopers (PwC) assured. For details and the basis of preparation see www.unilever.com/ara2015/downloads.
Φ Measured 1 October – 30 September.
‡ Full Global People Survey not undertaken in 2015. Comparator is for full survey among managers in 2014.
ж We are continuing to work on sharpening our metrics to understand our progress better and shape our business decisions.
Ψ We have tightened the criteria for smallholder farmer initiatives, resulting in a reduction in the number reported in 2015 compared to 2014.
θ Prior year restated to exclude third party site.
¥ 2010 baseline as restated in December 2015.
Our USLP commitments and targets are subject to internal verification. For details of the definitions and reporting periods used in the preparation
of these commitments and targets see our Sustainable Living Report 2015 to be published in April 2016 at www.unilever.com/sustainable-living.

Unilever Annual Report and Accounts 2015Strategic ReportBREYERS
USING SUSTAINABLE VANILLA
FROM MADAGASCAR

THE COMMITMENT OF THE BREYERS
BRAND TO SUSTAINABILITY IS AN
EXTENSION OF ITS DEDICATION TO
QUALITY AND IS ACHIEVING RENEWED
POPULARITY WITH CONSUMERS.

EXTERNAL RECOGNITION
Breyers was recognised at the
annual Rainforest Alliance Gala in
New York in May 2015, when it won the
Sustainable Standard-Setter Award,
which recognises businesses and
individuals that work diligently to
meet rigorous sustainability standards,
protect the environment and support
local communities worldwide.

BREYERS’ VANILLA IS SUSTAINABLY
SOURCED IN MADAGASCAR, HELPING
SMALLHOLDERS AND THE ENVIRONMENT.

98.5%

The amount of sustainable
natural vanilla extract sourced
from Madagascar is 98.5%.

COMMITTED TO USING ONLY DAIRY
FROM COWS NOT TREATED WITH
ARTIFICIAL GROWTH HORMONES.¤

¤ Suppliers of other ingredients such as cookies, candies and sauces may not be able to make this claim. The Food and Drug Administration

states that no significant difference has been shown between dairy derived from rBST-treated and non-rBST-treated cows.

Unilever Annual Report and Accounts 2015Strategic ReportIMPROVED SALES
Breyers has reversed five years
of declining sales by completing the
launch of Gelato Indulgences and
a new Quality Pledge across the
brand, which includes a platform
of sustainable sourcing.

DELIVERING VALUE
FOR OUR STAKEHOLDERS

THE FOLLOWING PAGES HIGHLIGHT HOW UNILEVER HAS
PERFORMED FOR THE BENEFIT OF OUR CONSUMERS, WIDER
SOCIETY, OUR PEOPLE AND OUR SHAREHOLDERS IN 2015.

OUR CONSUMERS
The economic uncertainties consumers
have faced showed few signs of abating
in 2015. But despite the tough backdrop
consumers revealed more clearly than ever
their growing preference for brands they
can trust. Although consumption continues
to be linked to some of the world’s gravest
problems – deforestation, climate change,
water scarcity, malnutrition or unhealthy
diets – consumer tastes and preferences
are clearly moving towards products that
are authentic, sourced sustainably and
manufactured in a responsible way.

All our categories are focused on addressing
these challenges and opportunities with
innovations that provide consumers with the
products they want, with the benefits they
need and the trust they demand.

pages 20 to 23

SOCIETY
2015 witnessed major steps forward
both in Unilever’s core Purpose of making
sustainable living commonplace and in the
transformational change at a societal level
needed to tackle the world’s major social,
environmental and economic problems.
The Unilever Sustainable Living Plan (USLP)
continued to have significant impact across
all three of its core goals of improving health
and well-being, reducing environmental
impact and enhancing livelihoods.

All these specific activities came against the
background of two significant developments
on a global scale – the launch of the 17
United Nations Sustainable Development
Goals and the UN Paris COP21 conference
on climate change, the largest ever held.

Working in partnership with the UN,
governments, NGOs, our suppliers and
others, we are helping to lead the changes
that society needs and that our company
will benefit from in the long term.

pages 24 to 27

OUR PEOPLE
Our clear Purpose is something that
Unilever people can engage with and help
make a reality every day. Bringing that
Purpose to life and making our vision a
reality requires us to recruit and retain
people of the highest quality. We want to
help all our people be the best they can, to
realise their potential and the potential of
the business. Training and development
are crucial for all and we strive to create
a working environment that respects the
human rights and interests of all our
employees and embeds gender equality
as a fundamental part of our approach.

pages 28 to 31

OUR SHAREHOLDERS
We aim to deliver the best possible
operational performance from the
business to deliver maximum returns
to our shareholders over the long term.
The financial performance that results
is based on growth that is consistent,
competitive, responsible and profitable.

How we manage our portfolio of assets and
our finances is an important contributor
to shareholder returns and reflects how
the business is adapting to meet changing
consumer preferences and volatility more
broadly in our markets.

pages 32 to 34

EDUCATION PROGRAMMES
Through our USLP we are
committed to enhancing
livelihoods. With our Partner
to Win, Symrise, we are helping
3,300 vanilla farmers and their
communities in Madagascar
with secondary education and
agricultural training that will
secure sustainable vanilla
supplies for Breyers and many
other Unilever brands.

Unilever Annual Report and Accounts 2015Strategic ReportOUR CONSUMERS

PERSONAL CARE

PERSONAL CARE IS HOME TO
SOME OF UNILEVER’S LARGEST
AND BEST KNOWN BRANDS
INCLUDING DOVE, AXE, LUX,
REXONA AND SUNSILK, ALL OF
WHICH ARE €1 BILLION BRANDS.

It is Unilever’s largest category with
turnover of €20.1 billion accounting for
38% of Group turnover and it represents
48% of Group operating profit. Personal
Care’s strategic role is to deliver
competitive growth through our core
brands and a newly created Prestige
business, enabled by enhanced
profitability to fund further investment.

The category made strong progress
towards these strategic goals in 2015. A
focus on innovation and strong marketing
communications drove core brands’
growth, while the Prestige business
has expanded through acquisitions and
organic reach. These priorities contributed
to a 4.1% underlying sales growth for
the category.

Growing core brands was achieved through
innovations, geographical expansion of our
global brands, and marketing campaigns.
In deodorants we launched Dry Spray
products across our brands in North
America. In oral care we introduced
Zendium – a premium toothpaste that
boosts the mouth’s natural defences – in
France and Italy, extending availability to
nine countries. In hair we rolled out Dove
Advanced Hair Series globally, and
launched the TRESemmé Perfectly
(Un)done collection.

Our brands are supported by marketing
initiatives that address the increasingly
complex media channels that consumers
use, with increased focus on digital.
All Things Hair, an online video channel
that creates content in partnership with
vloggers, is now live in nine markets
and has had more than 125 million views
since its launch in 2013. We also have
a partnership with Vice, the youth media
company, through which several Unilever
brands support the new women’s
channel Broadly.

The category created a new Prestige
business and in 2015 it acquired four
businesses – Dermalogica, Murad, Kate
Somerville and REN. Their brands are
present in the high-growth premium
skin care segment of the market.

Outside Prestige, we are taking steps
to strengthen the performance of our
core skin care brands further. Dove
launched the Dove DermaSpa range in
Europe, bringing spa experience and
dermatological care together.

Vaseline has also been the subject of a
major initiative through a partnership with
Direct Relief. The Vaseline Healing Project
embeds the USLP further into our brand
activities and provides the medical
supplies and local health worker training
to support people working in crisis and
disaster areas.

In addition to Vaseline, the category has
several other Sustainable Living brands,
such as Dove, Lifebuoy and Signal, which
meet consumers’ demand for responsible
business and enjoy stronger, sustainable
growth. The Dove Self-Esteem Project has
reached more than 19 million young people
in 115 countries, encouraging women to
develop a positive relationship with the way
they look, and to make beauty a source of
confidence rather than anxiety.

A major innovation in 2015 was the launch
of Dry Spray deodorants across Dove, Degree
(Rexona globally) and Axe. Reinventing the
benefits of the spray format, the innovation
delivered on a true consumer need –
deodorant that goes on cleaner and drier.

INTRODUCING DRY SPRAY
DEODORANTS IN NORTH AMERICA

IMPROVED CONSUMER
EXPERIENCE TRANSFORMED
BY THE SPRAY FORMAT.

Market shares of Unilever
deodorants are growing in both
the US and Canada.

CONTINUED
INNOVATIONS
HELP DRIVE
GROWTH IN
CORE BRANDS

Unilever Annual Report and Accounts 2015Strategic ReportKNORR 100%
NATURAL
MEALMAKERS HAS
A CLEAN LABEL
WITH NATURAL
INGREDIENTS

KNORR 100% NATURAL
MEALMAKERS

THE LAUNCH IN GERMANY WAS
FOLLOWED BY ROLL-OUTS ACROSS
OTHER COUNTRIES IN EUROPE.

1 million

Knorr Mealmakers grew well
ahead of the market in Germany
in 2015 and attracted 1 million
new households to the brand.

In July 2015 Knorr launched 100% natural
Mealmakers in the biggest European market,
Germany. This innovation was in response
to changing consumer preferences and
growing demand for more authentic, fresh,
natural and sustainably sourced foods.
Now consumers concerned with natural
ingredients can cook their favourite dishes
such as spaghetti bolognese more easily
and faster, using Knorr Mealmakers.

FOODS

FOODS IS A €12.9 BILLION
CATEGORY ACCOUNTING FOR 24%
OF UNILEVER’S TURNOVER AND
31% OF OPERATING PROFIT.

Our portfolio consists of Knorr, Hellmann’s
and Rama, our €1 billion brands, and other
well-known global brands such as Becel
and Maille.

The category’s strategic role is to
accelerate growth while maintaining
strong profitability and cash flow. In 2015,
focus has been on three priorities: to
accelerate growth in emerging markets;
to reignite growth in Europe and North
America; and to adapt the portfolio to
address emerging consumer trends.

The strategy successfully delivered a return
to positive underlying sales growth of
1.5% in 2015, with strong performances in
savoury and dressings offsetting a further
decline in spreads. We also saw continued
strong growth by the global Food Solutions
business, which services professional
hotel, restaurant and catering customers.

Despite some market volatility, emerging
markets delivered solid growth of 6.5%,
driven by Latin America, India and South
East Asia. Emerging markets now account
for more than 40% of our sales, up from
33% in 2012, fuelled by double-digit growth
in 2015 in some of our local brands, such
as Maizena in Brazil, Fruco in Colombia,
Kissan in India, Bango in Indonesia and
Lady’s Choice in the Philippines.

Although markets in Europe and North
America remain challenging overall,
savoury, Foods’ largest sub-category,
performed strongly, returning to growth
in Europe and continuing to grow sales
and market share in North America.

Dressings has also experienced broad-
based growth in Europe and gained
market share in the competitive US
market. We benefited from the launch
of new products including Hellmann’s
with olive oil and Knorr 100% natural
Mealmakers, responding to changing
consumer preferences and growing
demand for more authentic, fresh,
natural and sustainably sourced foods.

The spreads business experienced another
difficult year. In mélange (mix of margarine
and butter), we saw strong growth ahead
of the market once more. However, the

market for margarine continued to suffer,
influenced by an ongoing decline in the use
of spreads, compounded by a reduction
in butter prices. In order to respond to this
fast-changing market landscape, we have
created the Baking, Cooking and Spreads
business aimed at accelerating the
turnaround of the business in Europe
and North America.

Feeding the world sustainably is a major
challenge. That is why sustainability
remains at the heart of our Foods business.
Our main Sustainable Living brands –
Knorr, Hellmann’s and Becel/Flora –
combine a clear sustainable living
purpose with a long-term global growth
opportunity through improving nutrition,
food safety and an ever more efficient
use of resources.

In 2015, Hellmann’s successfully
introduced an improved squeeze bottle
with new ‘Easy Out’ technology, which
significantly reduces food waste, while
Knorr launched the Knorr Animal Welfare
programme designed to improve standards
in sourcing meat ingredients. More than
90% of the vegetables most frequently
used in Knorr products are sustainably
sourced, already putting us on target to
reach 100% by 2020.

Unilever Annual Report and Accounts 2015Strategic ReportOUR CONSUMERS
CONTINUED

SUNLIGHT – HELPING WOMEN
TO COLLECT CLEAN WATER

OUR SUNLIGHT
WATER CENTRES
ARE IMPROVING
ACCESS TO
CLEAN WATER

HOME CARE BRANDS ARE
GROWING AHEAD OF TARGET
AND AHEAD OF MARKETS.

40 billion

working hours are lost each
year to water collection in
Sub-Saharan Africa.

Sunlight partnered with NextDrop to
launch a branded text service in Mysore,
India, alerting women to when water will be
available, saving time for earning a living
or education (see page 26).

HOME CARE

HOME CARE IS HOME TO POPULAR
BRANDS, SUCH AS OMO AND SURF,
OUR €1 BILLION BRANDS, AS
WELL AS SUNLIGHT, DOMESTOS,
COMFORT AND OUR WATER
PURIFICATION BRAND PUREIT.

Home Care had a turnover of €10.2 billion
in 2015, accounting for 19% of Unilever’s
turnover and 10% of operating profit.
The category generates more than 80%
of its sales in emerging markets and its
strategic role is to grow competitively
and step up profitability, while scaling
up household care.

In 2015, consistent with its strategic
role, the category delivered underlying
sales growth of 5.9% and expanded its
margins by 1.3 percentage points.

This performance was achieved as a
result of sharp focus on three areas.

Firstly, developing innovations to reinforce
the core attributes that address consumer
needs at a time of rapidly growing
urbanisation and rising employment of
women. Omo had a global re-launch with
an upgraded formulation delivering on
the brand promise of faster stain removal.
Sunlight’s proposition of five times faster
degreasing was the catalyst for another
year of consistent and profitable growth.

Secondly, anticipating future trends
and innovating accordingly. We saw
good success in the Omo range of pre
and post-wash fabric cleaning additives
and ancillaries launched in Brazil
towards the end of 2014. We also launched
Comfort Intense in 2015, a super-
concentrated fabric conditioner where
smaller doses result in improved
freshness. The consumer reception
has exceeded expectations.

Thirdly, an end-to-end management
of profitability. This included a sharp
focus on driving internal efficiencies,
dramatic simplification and trading up
consumers through premium offerings
delivering better consumer value.

The success of our brands is boosted by
their role in delivering the USLP. Through
a partnership with UNICEF, for instance,
Omo will help to provide 10 million
disadvantaged children with access to
quality education. In Brazil, the category
led a successful education programme
to save water in laundry use during one
of the country’s worst water shortages,
saving a potential 229 billion litres a year
(see page 26).

Our Domestos brand continued its efforts
to address the sanitation challenge.
It committed to finding ways to provide
25 million people with improved access
to toilets.

Although the category enjoyed considerable
success in 2015, we remain alert to the
future challenges on account of rapidly
changing consumer habits and behaviours.
Continuing to deliver consumer-relevant
innovation and maintaining the sharp focus
on our cost and simplification agenda will
be key to the category delivering on its
strategic role in 2016 and beyond.

Unilever Annual Report and Accounts 2015Strategic ReportREFRESHMENT

REFRESHMENT IS OUR BEVERAGE
AND ICE CREAM CATEGORY WHICH
HAD A TURNOVER OF €10.1 BILLION
IN 2015.

Our largest brands are Magnum and
Heartbrand (Wall’s) and Lipton tea, all
of which are €1 billion brands.

The category accounts for 19% of Group
turnover and 11% of operating profit and
its strategic role is to enhance the Group’s
profitable growth momentum through
sustained growth in ice cream and growing
faster in tea, while stepping up cash flows
and return on invested capital.

During 2015 the category was focused on
growing its core with margin-enhancing
innovations and best-in-class retail
execution, both through customers’ stores
and through Unilever’s own retail channels,
to deliver the ultimate brand experience.

This focus meant Refreshment grew
underlying sales by 5.4% with a positive
performance across key geographies.

Ice cream delivered very strong growth,
increasing its presence in a growing and
dynamic sector and helped by successful
innovations behind premium brands in
Europe and North America. Performance
was also helped by good summer weather
in Europe.

Innovations included Magnum Pink & Black
and the Ben & Jerry’s Cookie Core range. In
September 2015 we acquired Grom, a gelato
business with 60 stores in Italy and around
the world, strengthening our portfolio.

Our success came within the context
of considerable consolidation among
rivals and the growth of local competition.
But our strong portfolio of brands and
execution in markets helped us to secure
our position and grow competitively.

The year also saw campaigns around
sugar-related health issues and we are
responding responsibly; 100% of our
children’s brands have fewer than 110
calories while, by the end of 2015, 90% of
our packaged ice cream products did not
exceed 250 calories per portion. We are
also reducing sugar in our ready-to-drink
tea, consistent with our USLP commitment
to help people to achieve a healthier diet.

The category strengthened its place in the
premium end of the ice cream business
through brands such as Talenti that offer
‘pure, real and authentic’ products, with
sustainably sourced ingredients. Early
results for Talenti have been promising.
Meanwhile, established brands such as
Ben & Jerry’s continued to deliver strong
business performance while leading the
charge on sustainable growth. The brand
launched Save Our Swirled – a global
campaign attracting 300,000 followers –
to help win a strong climate change

agreement at the Paris COP21 conference
at the end of 2015 (see page 24).

Beverages had a more challenging
year, witnessing modest growth in highly
competitive markets with South Asia
as a bright spot, in particular India
and Pakistan.

The second half of 2015 saw a number of
premium innovations coming to market.
These included the expansion of our T2
stores, the launch of tea capsules in
Europe and the launch in France of T.O. by
Lipton, our bespoke in-home tea machine.
Another highlight was the launch of the
Lipton Speciality Black range and Lipton
Green Tea.

Lipton continues its journey as a
Sustainable Living brand and after eight
years it has reached the milestone of all
the tea for its teabags being sourced from
Rainforest Alliance certified estates at
the end of 2015.

Our retail operations across both ice cream
and tea were strengthened by the formation
of a global Unilever retail organisation
to improve our 1,100 stores from T2 to
Ben & Jerry’s Scoop shops. Through our
retail customers we also continued with
our famous Aisles and Corners of Joy
in-store executions.

In 2015, Wall’s created
employment in South and
South East Asia, which are our
biggest markets for mobile
vendors. We also have I Am
Wall’s micro-entrepreneurs
in Europe.

I AM WALL’S

THE
I AM WALL’S
PROGRAMME
CREATES JOBS SELLING
OUR ICE CREAM AND
PROVIDES TRAINING
FOR MICRO-
ENTREPRENEURS

30%

In 2015, the I Am Wall’s programme in India
grew 30%, generating turnover of €18 million
and contributing 20% to the Indian ice cream
business. At any time during the year there were
more than 4,000 self-employed vendors making
their living through selling Wall’s ice cream
across major Indian cities.

The I Am Wall’s programme invests in
building skills such as sales, customer
service and problem solving. Priorities
include recruiting unskilled people who may
be traditionally excluded from the workplace
and providing young people with work
experience as they step into the job market.

Unilever Annual Report and Accounts 2015Strategic ReportSOCIETY

WE NEED TRANSFORMATIONAL
CHANGE FOR THE GOOD OF
SOCIETY AND BUSINESS.

2015 proved to be a pivotal year, with
groundbreaking global agreements reached
on both climate change and development.
To realise the ambition ‘zero carbon, zero
poverty’ will require the private sector,
government and civil society to go beyond
‘business as usual’, working in partnership
to achieve change at scale.

In September 2015, the United Nations
adopted 17 Sustainable Development Goals
(SDGs) – a roadmap to 2030 that will require
concerted action and partnership between
governments, civil society and business.

Unilever has been an early leader on the
SDGs through both the UN High-level Panel
and our engagement with the UN Global
Compact LEAD group of sustainability
leaders. We also partnered with Global
Citizen and Project Everyone, campaigning
organisations focused on motivating young
people about sustainability, to raise public
awareness about the SDGs. As the world
looks towards the implementation of the
SDGs, we are supporting the recently
established Global Commission on Business
and Sustainable Development which seeks
to work with business leaders across
sectors to broaden support for market-
based solutions.

World leaders met in Paris in December
2015 for the UN Framework Convention
on Climate Change’s 21st Conference of
the Parties (COP21). The result was a
historic agreement supported by an
unprecedented movement of private sector
action. The new legal agreement to tackle
climate change is supported by plans from
every country to reduce emissions and a
range of commitments from companies,
investors, cities and regions.

Unilever worked with the World Business
Council for Sustainable Development
(WBCSD), World Economic Forum (WEF),
UN Global Compact and We Mean Business
Coalition to encourage companies to step
up their efforts to address climate change
in their own operations. Speaking in Paris
at an event hosted by the UN Secretary
General and President Hollande of France,
our CEO Paul Polman urged business
leaders to continue to deliver positive
momentum. Unilever led by example and
announced ambitious targets to be carbon
positive in its own operations by 2030.

The consequences of this agreement go
far beyond the actions of governments
alone. The impact will be felt in banks,
stock exchanges, boardrooms and
research centres as the world absorbs the
fact that a unique project to decarbonise
the global economy has begun.

Previously, in 2014 we identified four areas
for action where we want to see sector-
wide transformation: eliminating
deforestation; sustainable agriculture and
improving livelihoods; access to clean
drinking water, sanitation and hygiene;
and women’s empowerment. Essential to
delivering change in these areas are the
Unilever Sustainable Living Plan (USLP),
which sits at the heart of our business
model, our Sustainable Living brands that
bring the USLP to life, and global coalitions
and partnerships that take it to scale.

ELIMINATING DEFORESTATION
As part of our commitment on climate
change, Unilever is working to help end
deforestation, which accounts for up to
15% of global greenhouse gas emissions.
We have made good progress on our
sustainable sourcing and deforestation
agendas by working in collaboration with
an increasing number of growers, traders,
manufacturers and retailers who have all
pledged to rid their supply chains of
deforestation.

ALL PALM OIL
IN OUR EUROPEAN
AND AUSTRALIAN
FOOD BUSINESSES
IS TRACEABLE TO
CERTIFIED
PLANTATIONS

SOURCING PALM OIL SUSTAINABLY

The Sei Mangkei palm oil processing
plant in Indonesia, opened in 2015, is
creating a more traceable and certified
supply chain for our palm oil derivatives
and reducing process steps.

THE NEW PLANT GENERATES
400 JOBS DIRECTLY AND
MANY MORE INDIRECTLY.

100%

Close to 100% of palm oil
sourced for Sei Mangkei
is fully traceable.

Unilever Annual Report and Accounts 2015Strategic ReportLIPTON TEA – 100% RAINFOREST
ALLIANCE CERTIFIED

AS THE
WORLD’S
LARGEST TEA
COMPANY WE
ARE SETTING
STANDARDS

In 2015 Unilever reached the landmark of
having all tea in its Lipton teabags sourced
from Rainforest Alliance certified estates
after an eight-year investment programme.

THE SECURITY OF OUR SUPPLY HAS
INCREASED WHILE LIVELIHOODS
HAVE BEEN ENHANCED.

In March 2015, we announced that all palm
oil bought for our European and Australian
food businesses is traceable to certified
plantations, a crucial milestone towards
our aim of eliminating deforestation.

Going beyond that, our new palm oil
processing plant in Sei Mangkei,
Indonesia, underwent testing in 2015 and
started operations in January 2016. It
represents a US$130 million investment
and will source palm oil from known and
certified sources for our global use.

In addition, we are working with the Climate
Policy Institute and IDH in Indonesia to
create a long-term landscape management
plan to help smallholders sustainably
improve their yields and livelihoods.

At the same time, almost all our paper and
board across our supply chain came from
certified sustainably managed forests or
from recycled material by the end of 2015.

CHAMPIONING SUSTAINABLE
AGRICULTURE AND IMPROVING
LIVELIHOODS
Our ambition is for sustainable approaches
to agriculture to become mainstream and
to improve the livelihoods of smallholder
farmers. This supports SDG 2 ‘End Hunger’.

Smallholder farmers and family farms
produce 70% of the world’s food. Working
with these producers is critical for Unilever

as we strive to reach our sustainable
sourcing targets and improve the
livelihoods of those in our supply chain
and surrounding communities. Working in
global partnerships, we have identified a
number of crops and countries that require
targeted, integrated action to improve
sustainable agricultural practices, link
smallholders to our markets, address food
nutrition gaps, improve business skills and
provide finance.

In support of this approach, we formed
a number of new partnerships. In 2015,
Unilever, Acumen and the Clinton Giustra
Enterprise Partnership (CGEP) launched
the Enhanced Livelihoods Investment
Initiative to improve the livelihoods of as
many as 300,000 smallholder communities
across Africa, South Asia, Latin America
and the Caribbean. It is a three-year
US$10 million investment plan to spur
economic growth by backing private
enterprises which link smallholders to
Unilever’s global supply chain and
distribution networks.

In 2015, Unilever and the Global Alliance
for Improved Nutrition (GAIN) created
a Nutrition Intervention Program which
aims to improve the health and nutrition of
2.5 million rural people. Its aim is to reach
smallholder farmers, from helping them
to diversify their diets to providing better
information on nutrition.

Addressing hunger is also about reducing
food waste. A third of food calories
produced are never eaten. To combat this,
Unilever helped shape the Consumer
Goods Forum pledge, working alongside
the World Resources Institute, to halve food
waste by 2025 within member company
operations, and reduce food waste among
consumers and through the supply chain.
To help achieve this, we have a new
partnership with the Global Foodbank
Network allowing us to redirect food
that is still fit to be consumed. Also,
Unilever is supporting the ‘Champions
12.3’ coalition that seeks to tackle food
loss and waste. Our CEO, Paul Polman,
is a champion along with other business
leaders and representatives from civil
society and government.

BETTER HEALTH AND HYGIENE
THROUGH HANDWASHING, CLEAN
WATER AND SANITATION
We aim to help improve the health and
well-being of more than 1 billion people
by 2020. As part of this ambition, we are
focusing on improving access to safe
drinking water, sanitation and hygiene
facilities (WASH) which underpin healthy
and productive lives.

Unilever Annual Report and Accounts 2015Strategic ReportSOCIETY
CONTINUED

With our global reach, portfolio of
WASH-related brands and experience
in changing behaviour, we are helping
to deliver progress on SDG 6 ‘Ensure
sustainable access to water and sanitation
for all’ and develop the market solutions
which will transform WASH provision.
For instance, in 2015 Lifebuoy secured
funding from the Children’s Investment
Fund Foundation (CIFF) to roll out our
Lifebuoy School of Five hygiene education
programme in rural Bihar, plus funding
from the UK Department for International
Development (DFID) to reach children
in Bangladesh and Pakistan. These
partnerships have committed to reaching
almost 10 million children by 2020 with
life-saving education about handwashing
with soap.

To extend our reach and impact, we have
joined with CGEP and DFID to launch a
new partnership named Transform. The
initiative will identify and fund new social
enterprises that help realise the SDGs,
initially focusing on bringing innovative
WASH solutions to market. Overall, the
Transform plan aims to improve the health
and well-being of 100 million people by
2025 through job creation, improving
incomes and providing support to market-
based solutions. We are also deepening our
existing partnership. We are in the fourth
year of a partnership between Domestos
and UNICEF, which helps individuals gain
improved access to toilets.

At the same time, in India we have launched
‘Clean India, Clean habits’. This is a mass
media, behaviour change programme
designed to promote the use of toilets and
the importance of handwashing and safe
drinking water practices. The initiative
aims to reach 75 million people by 2019
in support of the Government’s Swachh
Bharat Abhiyan (Clean India Mission).

EMPOWERING WOMEN
Women make up a large number of our
consumers and 32% of our workforce,
but many still face discrimination and
disadvantage globally. There is a strong
human rights and business case for
helping to reverse this. Empowering
women could be one of the biggest levers
of transformational change and SDG 5
‘Gender Equality’ is an enabler across
all the SDGs.

According to international advocacy
organisation Women Deliver, women
re-invest 90% of their income in their
families, so including more women in
the economic cycle will have a positive
impact on growth and the progress of
families and communities.

Unilever is committed to improving women’s
rights, skills and opportunities. We aim to
empower women across our value chain;
from smallholder farmers and distributors
to consumers. We want to leverage the full
Unilever footprint to drive systemic change
and achieve gender equality.

Through a range of global partnerships
including the CGEP, Population Services

International (PSI), Amsterdam Initiative
against Malnutrition (AIM) and Bottom
of the Pyramid Institute, we are creating
inclusive distribution models empowering
women to improve their livelihoods,
teaching them basic job skills and driving
life-changing behavioural change in
their communities.

A specific issue for women in many
countries is the burden of collecting water,
which takes an estimated 200 million hours
a day. Our Sunlight brand, with WaterAid,
Oxfam and NextDrop, published a major
report in 2015 on the problem. It revealed
why the interlinkages between water,
sanitation and gender equality must be
recognised by governments, civil society
and businesses.

We are also supporting the UN Women
HeForShe IMPACT 10x10x10 movement
which engages 10 key ‘IMPACT champions’
from government, business and academia
– including our CEO Paul Polman – to
drive change from the top. Each IMPACT
champion has pledged to make gender
equality an institutional priority, committing
to real change within and beyond their
organisations.

In summary, the groundbreaking
agreements of 2015 set a new climate
and development framework that sends a
signal to businesses and investors that will
drive real change in the global economy.
Much more needs to be done but we have
now passed a tipping point as the world
has recognised that delivering social and
environmental benefits will provide a
positive opportunity for businesses with
purpose to win in the 21st century.

229 billion litres

The campaign helped Brazil save
a potential 229 billion litres of water.

THE OMO
BRAND GREW 15%
IN UNDERLYING
SALES DURING THE
WATER CAMPAIGN
PERIOD

SAVING WATER IN BRAZIL

In 2015, Omo launched #1RinseIsEnough,
a successful education campaign to help
consumers save water in Brazil during the
country’s worst water shortage, helping the
brand grow at nearly double the market rate.

THE CAMPAIGN DOUBLED VISITORS
TO THE OMO WEBSITE WITH A 290%
INCREASE IN DWELL TIME.

26
26

Unilever Annual Report and Accounts 2015Strategic ReportUNILEVER SUSTAINABLE LIVING PLAN

We launched the Unilever Sustainable
Living Plan (USLP) in 2010. It set three
ambitious goals for 2020: to help more
than 1 billion people improve their
health and well-being; to halve the
environmental impact of our products;
and to enhance the livelihoods of
millions of people through all elements
of the value chain.

We use a simple framework to show
how sustainability is helping us deliver
more growth, lower costs, less risk
and more trust. It provides our people
with further strategic guidance across
our categories and brands.

FRAMEWORK OF HOW
SUSTAINABILITY SUPPORTS
BUSINESS SUCCESS

MORE GROWTH
Sustainable Living
brands grew
2x faster in 2014

LESS RISK
60% of agricultural
materials sustainably
sourced

MORE TRUST
No.1 employer in
34 countries

LOWER COSTS
Over €600m avoided costs
(2008-2015)

Inspired by the USLP, we see a growing
number of Sustainable Living brands in
our overall portfolio. In 2014, the last full
year for which complete data is available,
we had 11 Sustainable Living brands. The
2015 Sustainable Living brands will be
highlighted in our online Sustainable Living
Report 2015 to be published in April 2016
at www.unilever.com/sustainable-living.

The definition of Sustainable Living brands
is underpinned by a rigorous methodology
which measures the performance of those
brands contributing to positive social and
environmental change. In 2014, these
brands grew at double the rate of our other
brands and accounted for half our growth.

71 million

Our Brush Day & Night oral
health campaigns have
reached 71 million people
through brands such as
Signal and Pepsodent.

114,000

women are benefiting from
our Radiant programme,
through detergent brands
Rin in India and Brilhante
in Brazil.

SUSTAINABLE
LIVING
BRANDS

80%

of people participating in
our Flora ProActiv ‘It Takes
A Village’ campaign have
reduced their cholesterol.

300,000

followers of our global
Ben & Jerry’s ‘Save Our
Swirled’ campaign.

USLP PROGRESS

We have made significant progress on
our first big USLP goal of helping more
than 1 billion people improve their health
and well-being. By the end of 2015, we
had reached 482 million people, led by
the success of Sustainable Living brands
such as Lifebuoy, Dove and Signal through
programmes carried out since 2005.

In addition, 34% of our Foods portfolio
met the highest nutritional standards.

Our manufacturing operations play a
major role in our efforts to realise our
second main goal of reducing our
environmental impact. We have cut CO2
from energy by 36%, water abstraction
by 34% and total waste disposed by 97% in
our manufacturing operations since 2008.
However, when it comes to reducing the
environmental impact of how consumers
use our products we continue to find this
more difficult. Since 2010, the water impact
of our products has reduced by 1%, while
the waste associated with consumer

disposal of our products has reduced by
rather more – 29%. This means that we
are more than half way on our journey
towards halving packaging waste, partly
through divestments but also through
our innovation projects on lightweighting,
as well as infrastructural improvements
in recycling and recovery. But the
greenhouse gas impact of our products
across the lifecycle, including consumer
use, continues to edge up and has now
increased by 6% since 2010.

This continues the trend we reported on
last year. We remain committed, despite
this, to a full value chain approach to
reducing our environmental impact, since
that most meaningfully reflects the true
impact of our business. Over the last five
years we have learned which levers we
can pull on our own to effect change, and
where we rely on the much slower process
of system change. As a result, we are
sharpening our internal strategy and will

be refining our target during 2016. We
have already announced a new target to
be carbon positive (ie to go beyond being
carbon neutral) within our own operations
by 2030.

Our third USLP goal – to enhance the
livelihoods of millions of people – has seen
good progress. We sourced 60% of our
agricultural raw materials sustainably and
54% of procurement spend was through
suppliers meeting our Responsible Sourcing
Policy’s mandatory criteria. In 2015 we
published our first Human Rights Report
(see page 30). Since 2006, in partnership
with others, we enabled around 800,000
women to access initiatives that aimed to
develop their skills, made up of 70,000
micro-entrepreneurs in India and around
730,000 on tea smallholdings in Kenya and
India. We also enabled around 600,000
smallholder farmers and 1.8 million
small-scale retailers to access initiatives
which aimed to improve their agricultural
practices or increase their sales.

Unilever Annual Report and Accounts 2015Strategic Report
OUR PEOPLE

PEOPLE PROVIDE THE ESSENTIAL
TALENT AND ENERGY TO FULFIL
UNILEVER’S AMBITION.

Attracting, developing and retaining the
very best people is critical to ensure that
we succeed in our vision of accelerating
growth in our business while reducing our
environmental footprint and increasing
our positive social impact.

We rely on our people to deliver against
our USLP commitments – a challenge that
requires great endeavour, expertise and
energy on their part.

The fundamental priorities of our approach
to developing our people haven’t changed
and underpin everything we do:

• build depth of capability and leadership;
• live our values and build a performance

culture; and

• build an agile, flexible and diverse

organisation.

These priorities are supported by our
investment in our people’s well-being and
our leading-edge approach to advancing
human rights, while we continue to make
progress in the diversity and inclusiveness
of our workforce.

ATTRACTING TALENT
Our status as the No.1 Graduate Employer
of Choice in the FMCG sector among our
target universities was maintained in 2015
across 34 countries. This compares to just
three in 2009 and 32 in 2014.

This result reflects our digital engagement
with students via social media and
numerous campus activities. Our flagship
initiative is the Future Leaders League –
an international competition among
universities which send teams to our global
event, and which provides the opportunity
to interact with our senior management
and gain first-hand insights into business
and leadership.

Our status reveals our activities are
successful in engaging with talented
graduates who recognise Unilever as
a place that is doing well by doing good
and where their career potential can be
realised. Our commitment to sustainability
is becoming an ever more important
reason why people are attracted to
Unilever as a career choice.

Beyond our own FMCG sector, LinkedIn
continues to be a key channel for attracting
and engaging external talent. Our
relationship with LinkedIn was further
enhanced with the launch of LinkedIn
Elevate, a new content-sharing platform
which allows our people to show the world
their Unilever by sharing relevant content
across their own social networks.

While we work hard to ensure that we
are attracting the right talent, internally
we monitor attrition regularly and are
committed to providing an environment
in which our people can balance work and
life in a way that makes sense for them.
The overall attrition rate in 2015 was 8.2%,
down 0.1 percentage points compared
to 2014 (white collar population). At
management level the attrition rate
was 7.2%, down 0.1 percentage points
compared to 2014.

SAFETY – MOBILE PHONES IN VEHICLES

WE ARE
BUILDING A
SAFETY CULTURE
ACROSS OUR
ENTIRE
BUSINESS

At Unilever we are committed to
responsible growth and that means safe
growth for our people. We are therefore
committed to a vision of zero fatalities
and zero workplace injuries.

MOMO – MOTOR ON MOBILE OFF – IS
OUR CAMPAIGN PROHIBITING MOBILE
PHONE USAGE WHILE DRIVING.

MOMO INCLUDES HAND-HELD
AND HANDS-FREE DEVICES.

Unilever Annual Report and Accounts 2015Strategic ReportLEARNING
Unilever operates in highly competitive
markets so recruiting, retaining and
developing skilled people are critical.
Our skills need to align to our strategy so
revenues grow and productivity improves
while our people grow professionally.

To achieve this we improved and sharpened
our learning strategy in 2015. A priority
was to deliver the right learning at the right
time in a form easy to use wherever and
whenever needed.

Our learning material also needs to keep
pace with the changing nature of working
life where office-based work is a constantly
changing environment while many of our
people are on the move, working through
mobile devices. At the same time, skills
need updating ever more rapidly so our
learning strategy must deliver professional
education that is mobile, engaging, easy
to consume and on-demand.

To achieve this we launched the Learning
Hub in late 2015 which hosts all Unilever’s
learning content. We want to bring together
all business, leadership and functional
skills in a single framework with all skills
clearly aligned to our business strategy.
Extensive internal and external research
has identified six business skills that are
crucial to Unilever in the 21st century

and will enable everyone to fulfil their
potential and create important competitive
advantages for the Group. The content has
been refreshed, rationalised and made
more relevant with user reviews supporting
a renewed focus on quality.

New mobile-enabled content will be
developed further during 2016. The Hub
uses digital technology and collaborative
tools to meet the demands of modern,
multilingual working.

But we are not restricted to our own
internal approach. Our leadership
development includes a consortium
programme where we partner with
the world’s leading establishments.

The consortium programme is one way
that we bring the learning outside-in,
to invite our suppliers, customers and
like-minded companies to learn together.
We selected topics and programmes
which, when learnt together with external
parties, enrich the learning process.
These included Women Leadership,
Learning Professionals Program (IMD),
Sustainability (Cambridge in 2014 and
INSEAD in 2015), Asian Leaders (IMD
in 2016) and developing Asian Finance
Talents (TMS Academy and Wharton
in 2016). We have already included some
programmes in the Four Acres curriculum.

Within Unilever, our supply chain is where
the bulk of Unilever’s people work and
so is a big focus for our training activity.
This number of people requires us to
focus on self-directed learning via the
use of effective systems and core skills
curricula. This year we have updated
the Learning Management System and
all the core curricula, which cover over
1,300 individual online courses.

Our face-to-face training still plays a key
role. Here we drive skills that develop deep
functional understanding, with more than
15 new programmes being developed
across the whole of our supply chain,
including Procurement, Planning and
Logistics. We use WebEx extensively and
specifically on more general supply chain
training, having reached more than 30%
of our supply chain management team.

We also use face-to-face programmes to
drive professional supply chain leadership
development and have run programmes
that cover the senior leadership teams in
more than 60 of our factories globally.

We have further strengthened our
Manufacturing Training programme with the
implementation of a new system specifically
to manage the driving of manufacturing
skills of blue collar staff as part of our World
Class Manufacturing programme.

OUR SAFETY RECORD

Based on our Vision Zero strategy we
updated our mission in 2015 to build
an interdependent safety culture that
protects the well-being of our employees,
visitors, contractors and assets to help
deliver responsible growth. We also
rolled out our Motor On Mobile Off
campaign which bans the use of mobile
devices – hands-free and hand-held
– while driving on company business.

In our supply chain in 2015, we began
integrating our behavioural-based
BeSafE safety programme and World
Class Manufacturing (WCM) methodology.
This provided the opportunity for the
safety and manufacturing teams to work
more closely in delivering continuous
safety improvement in full alignment with
WCM. It also allowed us to combine the
best elements from both BeSafE and

WCM to create a stronger safety
programme overall and ensure the highest
level of safety and accountability for our
manufacturing teams. We also appointed a
dedicated process and construction safety
director to focus on large-scale risks.

Unilever reports safety data from October
to September. Our Total Recordable
Frequency Rate (TRFR) from 1 October
2014 to 30 September 2015 increased to
1.12 accidents per 1 million hours worked,
up from 1.05 in 2014. There are three main
reasons for this increase. Firstly, safe

travel incidents, which is an area of focus
for the Group following the introduction
of the global Safe Travel standard. Safe
travel incidents are recordable events
that occur on the roads when our
employees drive designated vehicles on
company time or business and have a
collision with other road users, animals
or stationary objects. Secondly, the
acquisition of new companies with
different safety cultures. Thirdly, a major
transformation project that involved the
closing down of sites in the US.

Unilever Annual Report and Accounts 2015Strategic ReportOUR PEOPLE
CONTINUED

ORGANISATION DEVELOPMENT
Previously we have focused on the Fit to Win
programme to be leaner and more agile
alongside Project Half for Growth to simplify
the organisation and our processes.

In 2015 we have focused more on
continuous improvement and being
equipped to maximise growth
opportunities. Importantly, we have
looked at addressing organisational
design principles as enablers to deliver
a leaner structure that is organised
in the most efficient and effective way,
driving speed and agility.

Growth opportunities have also come
through acquisitions and we welcomed
several new businesses requiring different
support to ensure new colleagues can
integrate and benefit from Unilever’s size
and scale while ensuring their growth-
focused, entrepreneurial cultures
are preserved.

Notable acquisitions have included
four premium skin care businesses,
Dermalogica, Murad, Kate Somerville

and REN, which form our new Prestige
business within Personal Care. We also
acquired the Camay and Zest brands, and
added Grom, the premium gelato business,
to our Refreshment category. All in all we
welcomed more than 2,300 new employees
to the Unilever Group.

To that end we became the first company
to adopt the UN Guiding Principles
Reporting Framework and in June 2015
we were the first company to produce a
detailed, stand-alone report using the
Framework entitled Enhancing
Livelihoods, Advancing Human Rights.

Another significant project has been
the formation of the Baking, Cooking
and Spreads business within the Foods
category, which has created a more
dedicated, focused organisation to
bring greater speed and agility to
executing strategy.

HUMAN RIGHTS
Business flourishes in societies where
human rights are respected, upheld and
advanced. People are our greatest asset
and empowering them is not only the right
thing to do, but also ensures a sustainable
future for Unilever.

To make this a reality, in 2014 Unilever
formalised its commitment to respecting
human rights as part of the USLP and
announced it would implement the UN
Guiding Principles on Business and
Human Rights, and undertake to report
publicly on progress.

This is Unilever’s Human Rights Report,
which can be read at www.unilever.com/
human-rights-report-2015.

It focuses on Unilever’s eight salient
human rights issues – those at risk
of the most severe negative impacts
through a company’s activities or
business relationships.

The report highlights challenges and key
areas of progress, including Unilever’s
work to empower women, the fight against
sexual harassment and how we are
addressing health and safety issues
across the supply chain. Dialogue, capacity
building and, where needed, effective
remedy are vital to these efforts.

860

employees trained as
ambassadors for human rights.

19,000

people trained on ending sexual
harassment and related topics.

FOCUSING ON HUMAN RIGHTS

WE ARE
TAKING ACTION
ON HUMAN RIGHTS
ACROSS OUR
SUPPLY
CHAIN

In 2015 we published our first Human
Rights Report which included a spotlight on
our efforts, including training programmes,
to end sexual harassment at the Kericho tea
estate in Kenya.

Unilever Annual Report and Accounts 2015Strategic ReportEMPOWERING WOMEN

BY 2020 WE
WILL EMPOWER
5 MILLION
WOMEN

In 2015, with UN Women, we announced
our commitment over the next three years
to expand economic opportunities for
women in our value chain, help reduce
unpaid care work and improve safety for
women and girls.

32%

Women make up a large number of our
consumers and 32% of our workforce, so
are crucial to the future sustainability of
Unilever as a business.

OUR KONYA ICE CREAM FACTORY IN TURKEY,
WHICH PRODUCES CORNETTO, MAX AND TWISTER,
IS A LEADING EXAMPLE OF HOW THE GENDER
EQUALITY OF OUR WORKFORCE IS IMPROVING.
40% OF ENGINEERS EMPLOYED ARE WOMEN.

Empowering women includes access
to new opportunities and better working
conditions, including improved safety,
training and education, career progression
and better pay.

It also describes key areas of focus for
the future. Unilever cannot succeed alone
and being honest about the challenges
is crucial to progress. Therefore we will
continue to address human rights issues
beyond first-tier suppliers, taking a
commodity and geographical focus, and
collaborating with other organisations in
order to influence systemic change. We
will also ensure that we track progress
robustly, by building frameworks for
improved data collection, verification
and analysis.

We want to go beyond respecting
to actively promoting human rights,
embedding this into every part of
our business.

WELL-BEING
Our work to help our people learn and
contribute to our growth is underpinned by
our Global Well-being programme. Each
market has a comprehensive plan which
incorporates physical and mental plus
emotional and purposeful well-being. In
2015 we built and rolled out internationally
our well-being workshop, Thrive, which is
available to all. By the end of 2015, 17,000
employees across Unilever in all markets
had attended a Well-being programme.

DIVERSITY AND INCLUSION
We believe in a diverse workforce to serve
our diverse consumer base. Inclusion is
the foundation of a sustainable, strong
culture. We want our people to feel
confident, comfortable and able to reach
their potential regardless of gender, age,
ability, background or sexual preference.

Our attitude to diversity and inclusion also
reflects our wider values as a Group, which
define how we do business and how we
interact with our colleagues, partners,
customers and consumers. Our four core
values are: integrity; responsibility;
respect; and being pioneering.

On gender equality we continue to make
progress, although work remains. By the
end of 2015, 45% of our total management
were women, up from 38% in 2010 and
25 countries have reached their gender
balance targets for management.

At the most senior levels, however, the
ratios are not as high. Among the top 101
executive managers, 23 (23%) were women
compared with 18% in 2014. If you include
employees who are statutory directors
of the corporate entities whose financial
information is included in the Group’s 2015
consolidated accounts in this Annual

Report and Accounts, the number
increases to 536 males and 146 (21%)
females. 50% (six out of 12) of the Board
is female, compared with 36% in 2014.

Of our total workforce of 168,921, 114,975
(68%) were male and 53,946 (32%) were
female at the end of 2015.

We will continue to work to improve these
performance statistics. We are committed
to creating opportunities for women and to
empowering them in a way that goes
beyond our own operations and into our
wider stakeholder communities through
our supply chain partners – particularly
among smallholder farmers.

We have the clearly articulated ambition
of empowering 5 million women by 2020
through our USLP, helping women and the
communities in which they live and work
to improve their livelihoods.

To encourage more women into
management, we have partnered with
INSEAD since 2013 on the INSEAD-
Unilever Women Leadership Program
which is delivered at our Four Acres
campuses. The role of Four Acres in
London and Singapore is to provide the
best learning available to ensure that we
develop leaders who will play an active
role for Unilever and society at large.

Unilever Annual Report and Accounts 2015Strategic ReportOUR SHAREHOLDERS

OUR STRATEGY FOR LONG-TERM
VALUE CREATION COMBINES
CLEAR PORTFOLIO CHOICES
WITH INNOVATION, MARKET
DEVELOPMENT AND
OPERATIONAL EFFICIENCY.

This strategy is built on the foundation of
our Purpose – to make sustainable living
commonplace – brought to life through
the USLP. This way, we deliver to our
shareholders growth that is consistent,
competitive, profitable and responsible.

However, a sustainable business requires
a sustainable world and consumers are
increasingly demanding that business plays
its part. More of our brands are meeting
that demand and delivering stronger and
faster growth. Our Sustainable Living
brands (detailed on page 27) accounted for
half our growth in 2014 and grew at twice
the rate of Unilever’s other brands.

During the year we continued to improve
returns to shareholders with dividends
rising 6% and our share price ending the
year up 23% for our NV shares and 11%
for our PLC shares.

Over the longer term our approach
continues to deliver consistent results.
Between 2011 and 2015 underlying sales
grew 4.9% per year, which was ahead of

our markets, and core operating margin
grew by an average of 0.26 percentage
points per year. Over the same period core
earnings per share grew by 7% per year on
average at current exchange rates and 10%
per year at constant exchange rates. We
have delivered an average free cash flow of
€3.8 billion and dividends have increased
an average of 8% per year over this period.
More detail on our financial growth model
can be found on page 34.

To improve returns we have four category
strategies with distinct but complementary
objectives, each fulfilling a specific role
across the portfolio. Personal Care
now accounts for 38% of turnover – our
largest category – and is growing its core
while developing its premium range
through acquisition (see facing page
for more details).

Home Care is improving profitability and
scaling its household cleaning business
while Refreshment is tasked with growing
ice cream cash flows and accelerating
top line growth in tea. Foods’ objective
is to accelerate growth and sustain strong
profitability and cash flows.

Innovation is key to driving growth and
margins. Research and development is
embedded in each category with a focused
pipeline of innovations. We are executing
larger projects and since 2013 the average
project size has increased by 25%. In

addition, more than 70% of our innovations
are margin accretive. We have also
significantly increased the application
of new technologies with more than 45%
of the value of our innovation portfolio
based on new technologies compared
with 35% in 2013.

Our brands benefit from award-winning
marketing with an ever greater emphasis
on digital marketing that dovetails with
the growth in our e-commerce sales which
are benefiting from our improving expertise
in executing through online channels.

Our broader customer development
programmes are targeting new channels
such as drug stores for Personal Care
and out-of-home for Refreshment,
and our Perfect Store programme has
reached almost 10 million executions
across stores and categories in 2015
from 6.9 million executions in 2013.

Our growth model is enabled by a leaner,
more talented and efficient organisation.
Project Half for Growth has delivered
around €500 million of annualised cost
savings and Unilever continues to benefit
from savings of more than €1 billion per
year in supply chain.

EMERGING MARKETS

In 2015 emerging markets demonstrated
some recovery, with our underlying
sales up 7% compared with 6% in 2014.
However, this is still below the 9%
average since 2011 and recent years have
highlighted the volatility of these markets.

However, we firmly believe these
countries will deliver the best long-term
growth prospects as populations and per
capita consumption expand. Emerging
markets now account for 58% of Unilever
turnover, up from 57% in 2014.

A key element of our success is managing
through volatility and a key reason is the
development of our local management
expertise. Of our top 20 markets, 12 are
emerging markets and in those 12 markets
more than 80% of the management is local.
Local understanding ensures the right
decisions are taken for local customers
and consumers, which helps deliver our
global strategy.

58%

Turnover from emerging markets

12%

11%

2011

2012

2013

2014

2015

Our average emerging markets growth
over the period was 9%.

Unilever Annual Report and Accounts 2015Strategic ReportDEVELOPMENTS IN 2015

In previous years Unilever identified
premiumising its portfolio as a key driver
of growth. In 2015 we took further decisive
action to execute on that priority with the
acquisition of several brands, most
notably in Personal Care.

We acquired four premium skin care
businesses to create a Prestige business
within Personal Care with annual turnover
approaching €400 million. These deals are
accretive to growth, margins and earnings
per share.

The largest acquisition, announced in
June 2015, is Dermalogica. With a strong
international footprint, it is the number
one salon skin care brand globally, rooted
in skin health treatments. Murad,
announced in July, is the first modern
‘doctor’ brand with a mission to provide
proven, efficacious products. Founded in
1989 by Howard Murad, a dermatologist,
pharmacist and UCLA professor, it has a
product range to address a wide variety
of skin care concerns.

Earlier, in March 2015, Unilever also
announced the acquisition of REN, which
pioneered a distinctive high-performance
skin care product range now sold in
around 50 countries through speciality
stores and pharmacies. In May we

announced the acquisition of Kate
Somerville Skincare, a niche derma-
cosmetic business with a celebrity
following in Hollywood, which has made
inroads from the US into the fast-growing
Asian beauty market.

All four are strong, differentiated brands
in a large and growing market for prestige
skin care products, which remains highly
fragmented. The brands will be run as part
of the Prestige business within Personal
Care, to preserve the unique prestige
expertise, with dedicated marketing and
customer development. However, the
brands will be able to leverage our
consumer insight and research and
development resources.

The acquisition of the Prestige skin care
brands is a good example of how Unilever
uses merger and acquisition activity to help
reshape our portfolios towards more
attractive segments where we can most
effectively apply our global scale and local
strengths. We remain alert to opportunities
that will progress our strategic priorities
while always observing robust financial
disciplines in assessing these options.
Elsewhere, we acquired Grom to
strengthen our ice cream portfolio in our
Refreshment category. Grom enjoys a
strong position in the premium gelato

market and has 60 stores in Italy and
around the world. It also shares Unilever’s
commitment to sustainable sourcing of
raw materials. In Foods, we created
Baking, Cooking and Spreads to increase
agility and accelerate growth in Europe
and North America.

In line with our focus on Personal Care,
Unilever was reclassified from Foods to
Personal Products by the Global Industry
Classification Standard (GICS) panel. This
followed similar reclassifications in 2014
applying to the FTSE and Stoxx indices.

During 2015 we continued our bond
issuance programme to raise competitively
priced debt capital through both the
European and US capital markets. In
January 2015 we announced the pricing of
a €750 million bond at 0.5% due February
2022. In May we issued €1.25 billion in two
tranches due June 2018 and June 2023,
while in July we priced a dual tranche
US$1 billion bond split equally between
a 2.1% fixed rate note due July 2020 and
a 3.1% note due July 2025.

We also took the opportunity in 2015
to increase our equity stake in Unilever
Nigeria from 50.0% to 58.5%.

We have created a new Prestige business
within Personal Care, through the acquisition
of four brands, to execute the category’s
strategic priority of building its premium
product range.

WE ARE
BUILDING
A PREMIUM
PORTFOLIO
THROUGH
ACQUISITION

A PRESTIGE BUSINESS

THE BRANDS WE ACQUIRED WERE
DERMALOGICA, KATE SOMERVILLE,
MURAD AND REN.

€400 million

The brands are a new growth platform and have
combined turnover of approaching €400 million.

Unilever Annual Report and Accounts 2015Strategic ReportOUR SHAREHOLDERS
CONTINUED

OUR FINANCIAL GROWTH MODEL

We continued to deliver shareholder value in 2015 helped by an
improvement in our markets and by applying all levers of value creation.

VALUE DRIVERS

UNDERLYING SALES GROWTH
Underlying sales grew 4.1% driven by a 2.1%
increase in underlying volume and a 1.9%
rise in price. This was ahead of our markets
which grew at around 3%. An improvement
in emerging markets offset continued
weakness in Europe which continued to
suffer price deflation.

CORE OPERATING MARGIN
Our core operating margin increased
0.3 percentage points, largely driven by
improvements in efficiency which saw cost
savings of more than €1 billion in supply
chain in 2015. Brand and marketing
investment has increased by more than
€800 million.

CAPITAL EFFICIENCY
Working capital and fixed asset efficiency
both improved further during the year.
Working capital as a percentage of sales is
negative which means that growth in the
business is intrinsically cash generative.
The ratio of fixed assets to sales reduced
compared with the previous year as the
business grew.

FINANCIAL RETURNS

EARNINGS PER SHARE
As a result of our operations our core
earnings per share rose to €1.82, an
increase of 14%. This result reflected a
currency translation effect of 3%. At
constant exchange rates EPS grew 11%.

FREE CASH FLOW
Free cash flow was €4.8 billion compared
with €3.1 billion in 2014. Our cash
performance was underpinned by our
continued focus on capital discipline. Our net
capital expenditure of €2.1 billion, or 3.9% of
turnover, reflects the investment in capacity
to support our growing business and was
consistent with 2014.

RETURN ON INVESTED CAPITAL
Return on invested capital increased as a
result of improved core operating margin
and greater capital efficiency. This was
despite an increase in goodwill as a result
of acquisitions and currency movements.

SHAREHOLDER RETURNS

DIVIDENDS
In April Unilever announced an increase in the quarterly
dividend to €0.3020 giving a total payout during 2015 of €1.19
per share. Dividends increased by 6% in 2015 and have
increased by an average of 8% per year in the last five years.

SHARE PRICE
Our NV share price closed 23% higher than the prior year
while PLC shares closed 11% higher. Over the period
2011-2015 our NV share price has grown 70% while our
PLC share price has grown 48%. Total shareholder return,
which includes both share price and dividend increases,
was 16% in 2015 and 108% over the last five years.

TOTAL DIVIDENDS PER SHARE

SHARES 2011-2015

€1.12

€1.19

€1.05

€0.95

€0.88

2011

2012

2013

2014

2015

45
40
35
30
25
20
15
10
5
0
2011

2012

2013

2014

2015

NV shares (€)

PLC shares (£)

Unilever Annual Report and Accounts 2015Strategic ReportFINANCIAL REVIEW 2015

UNDERLYING
SALES GROWTH*

4.3%

4.1%

2.9%

2013

2014

2015

UNDERLYING
VOLUME GROWTH*

2.5%

2.1%

1.0%

FINANCIAL OVERVIEW 2015

CONSOLIDATED INCOME STATEMENT
Turnover grew by 10% to €53.3 billion helped by a positive currency impact of 5.9% (2014: negative
4.6%) with a strong boost in the first half of the year due to a weaker euro. Underlying sales growth
was 4.1% (2014: 2.9%) balanced between volume growth of 2.1% (2014: 1.0%) and pricing of 1.9%
(2014: 1.9%). Acquisitions and disposals had a negative impact of 0.1% (2014: negative 0.9%). Emerging
markets contributed 58% of total turnover (2014: 57%) with underlying sales growth of 7.1% (2014:
5.7%) of which 2.7% was volume growth. Currency devaluation continued to push up the cost of living
for consumers in many of the emerging markets. Our performance in developed markets was flat
with good volume growth in Europe being offset by price deflation.

Core operating margin was up 0.3 percentage points to 14.8%. Gross margin was up 0.8 percentage
points to 42.2% driven by margin-accretive innovation, pricing and continued delivery from our savings
programmes, which more than offset currency-related cost increases and higher costs on brand and
marketing investment. Commodity costs increased by about 4%. While the price of many commodities,
such as oil, in US dollars fell during 2015, commodity costs in local currencies increased as devaluing
currencies imported inflation into local raw material production. Overheads increased by 0.3 percentage
points reflecting an adverse currency translation impact and favourable one-off items in the prior year,
such as property sales in India.

Operating profit was down 6% at €7.5 billion compared with €8.0 billion in 2014. This includes a
charge of €350 million for non-core items (2014: credit of €960 million including a €1,392 million
gain from business disposals).

2013

2014

2015

Highlights for the year ended 31 December

CORE OPERATING
MARGIN*

14.1% 14.5% 14.8%

Turnover (€ million)
Operating profit (€ million)
Core operating profit (€ million)*
Profit before tax (€ million)
Net profit (€ million)
Diluted earnings per share (€)
Core earnings per share (€)*

2015

2014

%
change

53,272
7,515
7,865
7,220
5,259
1.72
1.82

48,436
7,980
7,020
7,646
5,515
1.79
1.61

10
(6)
12
(6)
(5)
(4)
14

The net cost of financing borrowings was €372 million compared with €383 million in 2014. The
average interest rate on net debt improved to 3.0% (2014: 3.5%) largely as a result of higher returns
on investments. Pensions financing was a charge of €121 million compared with €94 million in 2014.

2013

2014

2015

The effective tax rate was 27.6% versus 28.2% in 2014 which included €0.8 billion tax relating to
business disposals.

Net profit from joint ventures and associates together with other income from non-current
investments was €198 million compared with €143 million in 2014. This reflects increased profit
on disposal of associates and higher income from joint ventures. At €1.72, diluted EPS was down
4% as the prior year included the profit on business disposals. Core EPS increased by 14% to
€1.82, including a favourable currency impact of 3%.

The independent auditors’ reports issued by KPMG Accountants N.V. and KPMG
LLP, on the consolidated results of the Group, as set out in the financial
statements, were unqualified and contained no exceptions or emphasis of matter.
For more details see pages 85 to 89 of the Governance and Financial Report.

The consolidated financial statements have been prepared in accordance with
IFRS. The critical accounting policies and those that are most significant in
connection with our financial reporting are set out in note 1 on pages 94 and 95 of
the Governance and Financial Report and are consistent with those applied in 2014.

* Certain measures used in our reporting are not defined under IFRS. For further information about these
measures, please refer to the commentary on non-GAAP measures on pages 38 and 39.

Unilever Annual Report and Accounts 2015Strategic ReportFINANCIAL REVIEW 2015
CONTINUED

TURNOVER BY CATEGORY

OPERATING PROFIT BY CATEGORY

Personal Care
Foods
Home Care
Refreshment

38%
24%
19%
19%

Personal Care
Foods
Home Care
Refreshment

48%
31%
10%
11%

PERSONAL CARE

2015

2014

Turnover (€ million)
Operating profit (€ million)
Core operating profit (€ million)

20,074
3,637
3,788

17,739
3,259
3,325

Core operating margin (%)

18.9

18.7

%
Change

13.2
11.6
13.9

0.2

FOODS

2015

2014

Turnover (€ million)
Operating profit (€ million)
Core operating profit (€ million)

12,919
2,298
2,354

12,361
3,607
2,305

%
Change

4.5
(36.3)
2.1

Core operating margin (%)

18.2

18.6

(0.4)

Underlying sales growth (%)
Underlying volume growth (%)
Effect of price changes (%)

4.1
2.3
1.8

3.5
1.2
2.3

Underlying sales growth (%)
Underlying volume growth (%)
Effect of price changes (%)

1.5
0.8
0.8

(0.6)
(1.1)
0.6

KEY DEVELOPMENTS
• Turnover growth was 13.2% of which 7.6% was currency impact.

Underlying sales growth, while still below historical rates, improved
to 4.1% compared with 3.5% in 2014. Growth benefited from
innovations that boosted the core of our business including the
launch of dry spray deodorants in North America, the launch of Lux
Luminique in Japan and the roll-out of Dove Advanced Hair Series.
2015 also marked our entry into the prestige skin care business with
the acquisitions of Dermalogica, Murad, Kate Somerville and REN.

• Core operating profit was €463 million higher than the prior year
and this includes a €196 million favourable impact from exchange
rate movement. Acquisitions and disposal activities contributed
€105 million while underlying sales growth and margin
improvement added €137 million and €25 million respectively.
Operating margin improvement is principally driven by margin-
accretive innovation. Gross margin was up 0.5 percentage points
and brand and marketing investment was up 13%.

KEY DEVELOPMENTS
• Turnover growth was 4.5% which included a 5.6% positive currency
impact and 2.5% negative impact from acquisitions and disposal
activities. Underlying sales growth improved to 1.5% (from negative
0.6% in 2014) with both price and volume contributing 0.8%. Savoury
showed good volume-driven growth led by cooking products in
emerging markets and by innovations around naturalness and
health. In dressings, Hellmann’s demonstrated good growth, with
7% underlying sales growth despite increased competition from
new market entrants. Spreads gained market share but turnover
declined 5%, reflecting market competition in developed markets.

• Core operating profit was up by €49 million despite a profit

reduction of €82 million relating to acquisitions and disposal
activities. Underlying sales growth added €35 million and the
impact of exchange rate was a favourable €151 million. In addition,
higher supply chain costs led to decline in margins and this reduced
profit by €55 million. Brand and marketing investment was up 5%.

HOME CARE

Turnover (€ million)
Operating profit (€ million)
Core operating profit (€ million)

Core operating margin (%)

Underlying sales growth (%)
Underlying volume growth (%)
Effect of price changes (%)

2015

2014

10,159
740
775

7.6

5.9
4.0
1.9

9,164
576
579

6.3

5.8
2.4
3.4

%
Change

10.9
28.5
33.9

REFRESHMENT

Turnover (€ million)
Operating profit (€ million)
Core operating profit (€ million)

1.3

Core operating margin (%)

Underlying sales growth (%)
Underlying volume growth (%)
Effect of price changes (%)

%
Change

10.3
56.1
16.9

0.6

2015

2014

10,120
840
948

9.4

5.4
1.5
3.9

9,172
538
811

8.8

3.8
2.0
1.8

KEY DEVELOPMENTS
• Home Care turnover grew by 10.9% including a 4.5% favourable
currency impact. Underlying sales growth was 5.9%, heavily
geared toward volume growth which contributed 4.0%. The
category delivered broad-based growth including the roll-out
of new Omo with enhanced formulation and improved cleaning
technology, the success of fabric conditioners helped by the launch
of Comfort Intense, and the introduction of Cif to new markets.

• Core operating profit increased by €196 million including a

€22 million increase from exchange rate movement. Underlying
sales growth contributed €41 million while improved margin
added €133 million. Gross margin was up 2.7 percentage points
as a result of improved mix, cost savings and simplification
programmes. Brand and marketing investment was up 19%.

KEY DEVELOPMENTS
• Refreshment turnover grew by 10.3% including 4.1% favourable
currency impact. In ice cream both Magnum and Ben & Jerry’s
delivered double-digit growth contributing to the 5.4% underlying
sales growth. We continue to build our presence in the premium
gelato business with the recently acquired Talenti and Grom. In tea
more T2 stores have opened during the year and Lipton and PG
Tips have been extended further into fruit, herbal and speciality
teas where we are still under-represented.

• Core operating profit was €137 million higher compared with prior
year due to exchange rate movements which added €31 million,
underlying sales growth which contributed €47 million, operating
margin improvement of €53 million and a €6 million increase from
acquisitions and disposal activities. Gross margin was up 0.3
percentage points driven by mix and savings in ice cream. Brand
and marketing investment was up 8%.

Unilever Annual Report and Accounts 2015Strategic Report

CASH FLOW

3.1

3.9

4.8

FREE CASH FLOW
€ billion

Free cash flow for the year
was particularly strong at
€4.8 billion compared with
€3.1 billion in 2014. Cash flow
from operating activities was
€9.4 billion compared with
€7.9 billion in 2014. The
variance is a result of strong
cash flow generated from
operating activities which
included €0.7 billion from
efficient working capital
management. The prior
year was also negatively impacted by €0.8 billion tax arising
on business disposals. Net capital expenditure remains flat
in absolute terms at €2.1 billion, 3.9% of turnover, reflecting
continued investment in capacity to support growth.

2014

2015

2013

€ million
2015

€ million
2014

Operating profit
Depreciation, amortisation and impairment
Changes in working capital
Pensions and similar obligations less payments
Provisions less payments
Elimination of (profits)/losses on disposals
Non-cash charge for share-based compensation
Other adjustments

7,515
1,370
720
(385)
(94)
26
150
49

7,980
1,432
8
(364)
32
(1,460)
188
38

Cash flow from operating activities

Income tax paid
Net capital expenditure
Net interest and preference dividends paid

Free cash flow

9,351

7,854

(2,021)
(2,074)
(460)

(2,311)
(2,045)
(398)

4,796

3,100

Net cash flow (used in)/from investing activities

(3,539)

(341)

Net cash flow (used in)/from financing activities (3,032)

(5,190)

The net outflow from investing activities was €3.2 billion higher
than in the prior year. This is a combination of current year
expenditure of €1.9 billion on business acquisitions (2014:
€0.3 billion) and €0.2 billion inflow received from business
disposals versus €1.7 billion cash inflow in the prior year.

Net cash outflow from financing activities was €2.2 billion
lower than in the prior year. The variance was principally due
to higher borrowings in 2015 to finance acquisitions. Prior year
also included €0.9 billion spent on the purchase of Leverhulme
estate shares.

BALANCE SHEET
In the year to 31 December 2015, Unilever’s combined market
capitalisation increased from €93.9 billion to €113.4 billion.

Goodwill and intangible assets increased by €2.9 billion mainly
due to business acquisitions and currency movements. All material
goodwill and indefinite-life intangible assets have been tested
for impairment with no charge recognised during the year. The
increase in other non-current assets of €1.0 billion was driven
by capital expenditure, currency movements and an increase in
pension asset values due to changes in discount and inflation rates.

Goodwill and intangible assets
Other non-current assets
Current assets

Total assets

Current liabilities
Non-current liabilities

Total liabilities

Shareholders’ equity
Non-controlling interest

Total equity

Total liabilities and equity

€ million
2015

€ million
2014

25,059
14,553
12,686

22,174
13,506
12,347

52,298

48,027

20,019
16,197

19,642
14,122

36,216

33,764

15,439
643

13,651
612

16,082

14,263

52,298

48,027

Current assets were up by €0.3 billion primarily due to an
improved cash balance and an increase in the inventories balance
at the end of the year. Cash and cash equivalents on the balance
sheet was €2.3 billion compared with €2.2 billion at the end of
2014. Closing net debt was €11.5 billion which is €1.6 billion higher
than in the prior year. The increase reflects additional borrowings
to finance acquisitions and an adverse currency impact from the
US dollar denominated debt.

Current liabilities were €20.0 billion compared with €19.6 billion
in 2014. The increase is due to an increase in trade payables
and other current liabilities as a result of business growth and
improved payment terms.

Non-current liabilities were €16.2 billion, up €2.1 billion in 2015.
This includes a €2.7 billion increase in non-current financial
liabilities from additional borrowings and currency impact.
Pension liability declined by €0.7 billion. On 27 January 2015 we
issued €750 million 0.5% fixed rate notes due February 2022.
On 28 May 2015 we issued €750 million floating rate notes due in
June 2018 and €500 million 1.0% fixed rate notes due in June 2023.
On 29 July 2015 we issued US$500 million 2.1% fixed rate notes
due on 30 July 2020 and US$500 million 3.1% fixed rate notes due
on 30 July 2025.

The table below shows that pension liability net of assets was
reduced to €2.3 billion at the end of December 2015 versus
€3.6 billion as at 31 December 2014. The decrease primarily
reflects the impact of higher discount rates, investment returns
and the cash contributions we have made. Cash expenditure on
pensions was €0.7 billion, the same as in the prior year.

1 January
Current service cost
Employee contributions
Actual return on plan assets (excluding interest)
Net interest cost
Actuarial gain
Employer contributions
Currency retranslation
Other movements(a)
31 December

€ million
2015

(3,571)
(271)
17
(254)
(121)
1,167
513
(129)
329
(2,320)

(a) Other movements relate to special termination benefits, past service costs
including losses/(gains) on curtailment, settlements and reclassification of
benefits. For more detail see Governance and Financial Report note 4B on
page 102.

Unilever Annual Report and Accounts 2015Strategic Report

FINANCIAL REVIEW 2015
CONTINUED

FINANCE AND LIQUIDITY
We concentrate cash in the parent and central finance companies
for maximum flexibility. These companies provide loans to our
subsidiaries that are also funded through retained earnings and
third party borrowings. We maintain access to global debt markets
through an infrastructure of short and long-term debt
programmes. We make use of plain vanilla derivatives, such as
interest rate swaps and foreign exchange contracts, to help
mitigate risks. More detail is provided on pages 120 to 125 of our
Governance and Financial Report.

Approximately €1.8 billion (or 79%) of the Group’s cash and cash
equivalents are held in foreign subsidiaries which repatriate
distributable reserves on a regular basis. For most countries
this is done through dividends free of tax. In a few countries we
face cross-border foreign exchange controls and/or other legal
restrictions that inhibit our ability to make these balances
available in any means for general use by the wider business.
The amount of cash held in these countries was €284 million
(2014: €452 million, 2013: €243 million). The cash will generally
be invested or held in the relevant country and, given the other
capital resources available to the Group, does not significantly
affect the ability of the Group to meet its cash obligations.

We closely monitor all our exposures and counter-party limits.
Unilever has committed credit facilities in place for general
corporate purposes. The undrawn bilateral committed credit
facilities in place on 31 December 2015 were US$6,550 million.

CONTRACTUAL OBLIGATIONS AT 31 DECEMBER 2015

€ million

Total

Due
within
1 year

Due in
1-3
years

Due in
3-5
years

Due in
over
5 years

Total contractual
obligations(a)

21,041

6,037

4,567

3,798

6,639

(a) Included within total contractual obligations are long-term debt, interest
on financial liabilities, operating lease obligations, purchase obligations
for raw and packing materials and finished goods, finance leases and other
long-term obligations (not including pensions).

Further details are set out in the Governance and Financial Report
in the following notes to the consolidated financial statements:
note 10 on pages 111 and 112, note 15C on page 119, and note 20
on pages 130 and 131. Unilever is satisfied that its financing
arrangements are adequate to meet its working capital needs for
the foreseeable future. In relation to the facilities available to the
Group, borrowing requirements do not fluctuate materially during
the year and are not seasonal.

AUDIT FEES
Included within operating profit is €15 million (2014: €14 million)
paid to the external auditor, of which €14 million (2014: €14 million)
related to statutory audit services.

NON-GAAP MEASURES

Certain discussions and analyses set out in this Annual Report and
Accounts include measures which are not defined by generally
accepted accounting principles (GAAP) such as IFRS. We believe
this information, along with comparable GAAP measurements, is
useful to investors because it provides a basis for measuring our
operating performance, ability to retire debt and invest in new
business opportunities. Our management uses these financial
measures, along with the most directly comparable GAAP
financial measures, in evaluating our operating performance and
value creation. Non-GAAP financial measures should not be
considered in isolation from, or as a substitute for, financial

information presented in compliance with GAAP. Non-GAAP
financial measures as reported by us may not be comparable
with similarly titled amounts reported by other companies.

In the following sections we set out our definitions of the following
non-GAAP measures and provide reconciliations to relevant GAAP
measures:

• underlying sales growth;
• underlying volume growth;
• core operating profit and core operating margin;
• core earnings per share (core EPS);
• free cash flow; and
• net debt.

UNDERLYING SALES GROWTH (USG)
Underlying sales growth (USG) refers to the increase in turnover
for the period, excluding any change in turnover resulting from
acquisitions, disposals and changes in currency. The impact of
acquisitions and disposals is excluded from USG for a period of
12 calendar months from the applicable closing date. Turnover
from acquired brands that are launched in countries where they
were not previously sold is included in USG as such turnover is
more attributable to our existing sales and distribution network
than the acquisition itself.

The reconciliation of USG to changes in the GAAP measure
turnover is as follows:

TOTAL GROUP

Underlying sales growth (%)
Effect of acquisitions (%)
Effect of disposals (%)
Effect of exchange rates (%)
Turnover growth (%)(a)

PERSONAL CARE

Underlying sales growth (%)
Effect of acquisitions (%)
Effect of disposals (%)
Effect of exchange rates (%)
Turnover growth (%)(a)

FOODS

Underlying sales growth (%)
Effect of acquisitions (%)
Effect of disposals (%)
Effect of exchange rates (%)
Turnover growth (%)(a)

HOME CARE

Underlying sales growth (%)
Effect of acquisitions (%)
Effect of disposals (%)
Effect of exchange rates (%)
Turnover growth (%)(a)

2015
vs 2014

2014
vs 2013

4.1
0.7
(0.8)
5.9
10.0

2.9
0.4
(1.3)
(4.6)
(2.7)

2015
vs 2014

2014
vs 2013

4.1
1.0
–
7.6
13.2

3.5
–
(0.1)
(5.0)
(1.8)

2015
vs 2014

2014
vs 2013

1.5
–
(2.5)
5.6
4.5

(0.6)
–
(3.6)
(3.9)
(7.9)

2015
vs 2014

2014
vs 2013

5.9
0.2
(0.1)
4.5
10.9

5.8
1.8
–
(4.8)
2.4

Unilever Annual Report and Accounts 2015Strategic ReportREFRESHMENT

Underlying sales growth (%)
Effect of acquisitions (%)
Effect of disposals (%)
Effect of exchange rates (%)
Turnover growth (%)(a)

2015
vs 2014

2014
vs 2013

5.4
1.3
(0.7)
4.1
10.3

3.8
0.4
(1.6)
(4.6)
(2.1)

(a) Turnover growth is made up of distinct individual growth components
namely underlying sales, currency impact, acquisitions and disposals.
Turnover growth is arrived at by multiplying these individual components
on a compounded basis as there is a currency impact on each of the other
components. Accordingly, turnover growth is more than just the sum of
the individual components.

UNDERLYING VOLUME GROWTH (UVG)
Underlying volume growth (UVG) is part of USG and means, for
the applicable period, the increase in turnover in such period
calculated as the sum of (i) the increase in turnover attributable
to the volume of products sold; and (ii) the increase in turnover
attributable to the composition of products sold during such
period. UVG therefore excludes any impact to USG due to
changes in prices.

The relationship between the two measures is set out below:

Underlying volume growth (%)
Effect of price changes (%)
Underlying sales growth (%)

2015
vs 2014

2014
vs 2013

2.1
1.9
4.1

1.0
1.9
2.9

CORE OPERATING PROFIT AND CORE OPERATING MARGIN
Core operating profit and core operating margin mean operating
profit and operating margin, respectively, before the impact of
business disposals, acquisition and disposal related costs,
impairments and other one-off items, which we collectively term
non-core items, due to their nature and frequency of occurrence.

The reconciliation of core operating profit to operating profit is as
follows:

Operating profit
Acquisition and disposal related cost
(Gain)/loss on disposal of group companies
Impairments and other one-off items

Core operating profit

Turnover
Operating margin
Core operating margin

€ million
2015

€ million
2014

7,515
105
9
236

7,865

7,980
97
(1,392)
335

7,020

53,272

48,436

14.1%
14.8%

16.5%
14.5%

Further details of non-core items can be found in note 3 on page
98 of the Governance and Financial Report.

CORE EARNINGS PER SHARE
The Group also refers to core earnings per share (core EPS). In
calculating core earnings, net profit attributable to shareholders’
equity is adjusted to eliminate the post tax impact of non-core
items. Refer to note 7 on page 108 of the Governance and Financial
Report for reconciliation of core earnings to net profit attributable
to shareholders’ equity.

FREE CASH FLOW (FCF)
Within the Unilever Group, free cash flow (FCF) is defined as cash
flow from operating activities, less income taxes paid, net capital
expenditures and net interest payments and preference dividends
paid. It does not represent residual cash flows entirely available
for discretionary purposes; for example, the repayment of
principal amounts borrowed is not deducted from FCF. FCF
reflects an additional way of viewing our liquidity that we believe is
useful to investors because it represents cash flows that could be
used for distribution of dividends, repayment of debt or to fund our
strategic initiatives, including acquisitions, if any.

The reconciliation of FCF to net profit is as follows:

€ million
2015

€ million
2014

Net profit
Taxation
Share of net profit of joint ventures/associates
and other income from non-current investments
Net finance costs
Depreciation, amortisation and impairment
Changes in working capital
Pensions and similar obligations less payments
Provisions less payments
Elimination of (profits)/losses on disposals
Non-cash charge for share-based compensation
Other adjustments

5,259
1,961

(198)
493
1,370
720
(385)
(94)
26
150
49

5,515
2,131

(143)
477
1,432
8
(364)
32
(1,460)
188
38

Cash flow from operating activities

9,351

7,854

Income tax paid
Net capital expenditure
Net interest and preference dividends paid

Free cash flow

(2,021)
(2,074)
(460)

(2,311)
(2,045)
(398)

4,796

3,100

Net cash flow (used in)/from investing activities
Net cash flow (used in)/from financing activities

(3,539)
(3,032)

(341)
(5,190)

NET DEBT
Net debt is defined as the excess of total financial liabilities,
excluding trade and other payables, over cash, cash equivalents
and current financial assets, excluding trade and other
receivables. It is a measure that provides valuable additional
information on the summary presentation of the Group’s net
financial liabilities and is a measure in common use elsewhere.

The reconciliation of net debt to the GAAP measure total financial
liabilities is as follows:

Total financial liabilities

Current financial liabilities
Non-current financial liabilities

€ million
2015

€ million
2014

(14,643)

(12,722)

(4,789)
(9,854)

(5,536)
(7,186)

Cash and cash equivalents as per balance sheet

2,302

2,151

Cash and cash equivalents as per
cash flow statement
Add bank overdrafts deducted therein

Other current financial assets

Net debt

2,128
174

1,910
241

836

671

(11,505)

(9,900)

Unilever Annual Report and Accounts 2015Strategic Report

OUR PRINCIPAL RISKS

Our business is subject to risks and uncertainties. On the following pages we have identified risks that we regard as the most relevant to
our business. These are the risks that we see as material to Unilever’s business and performance at this time. There may be other risks
that could emerge in the future. Further details of risks and mitigating factors can be found on pages 53 to 57.

pages 53 to 57 of the Governance and Financial Report

PRINCIPAL RISK

DESCRIPTION OF RISK

BRAND PREFERENCE
As a branded goods business,
Unilever’s success depends on the
value and relevance of our brands
and products to consumers around
the world and on our ability to
innovate and remain competitive.

PORTFOLIO MANAGEMENT
Unilever’s strategic investment
choices will affect the long-term
growth and profits of our business.

SUSTAINABILITY
The success of our business
depends on finding
sustainable solutions to
support long-term growth.

CUSTOMER RELATIONSHIPS
Successful customer relationships
are vital to our business and
continued growth.

TALENT & ORGANISATION
A skilled workforce and agile
organisation are essential for the
continued success of our business.

SUPPLY CHAIN
Our business depends on
purchasing materials, efficient
manufacturing and the
timely distribution of products
to our customers.

SAFE AND HIGH
QUALITY PRODUCTS
The quality and safety of our
products are of paramount
importance for our brands and
our reputation.

SYSTEMS AND INFORMATION
Unilever’s operations are
increasingly dependent on IT
systems and the management
of information.

Consumer tastes, preferences and behaviours are constantly changing and Unilever’s ability to
anticipate and respond to these changes and to continue to differentiate our brands and products
is vital to our business.

We are dependent on creating innovative products that continue to meet the needs of our consumers. If
we are unable to innovate effectively, Unilever’s sales or margins could be materially adversely affected.

Unilever’s growth and profitability are determined by our portfolio of categories, geographies and
channels and how these evolve over time. If Unilever does not make optimal strategic investment
decisions then opportunities for growth and improved margin could be missed.

Unilever’s vision to accelerate growth in the business while reducing our environmental footprint and
increasing our positive social impact will require more sustainable ways of doing business. This means
reducing our environmental footprint while increasing the positive social benefits of Unilever’s activities.
We are dependent on the efforts of partners and various certification bodies to achieve our sustainability
goals. There can be no assurance that sustainable business solutions will be developed and failure to do
so could limit Unilever’s growth and profit potential and damage our corporate reputation.

Maintaining strong relationships with our existing customers and building relationships with new
customers who serve changing shopper habits are necessary to ensure our brands are well
presented to our consumers and available for purchase at all times.

The strength of our customer relationships also affects our ability to obtain pricing and competitive
trade terms. Failure to maintain strong relationships with customers could negatively impact the
terms of business with the affected customers and reduce the availability of our products to
consumers.

Our ability to attract, develop, organise and retain the right number of appropriately qualified people
is critical if we are to compete and grow effectively.

This is especially true in our key emerging markets where there can be a high level of competition
for a limited talent pool. The loss of management or other key personnel or the inability to identify,
attract and retain qualified personnel could make it difficult to manage the business and could
adversely affect operations and financial results.

Our supply chain network is exposed to potentially adverse events such as physical disruptions,
environmental and industrial accidents or bankruptcy of a key supplier which could impact our
ability to deliver orders to our customers.

The cost of our products can be significantly affected by the cost of the underlying commodities and
materials from which they are made. Fluctuations in these costs cannot always be passed on to the
consumer through pricing.

The risk that raw materials are accidentally or maliciously contaminated throughout the supply
chain or that other product defects occur due to human error, equipment failure or other factors
cannot be excluded.

Increasing digital interactions with customers, suppliers and consumers place ever greater
emphasis on the need for secure and reliable IT systems and infrastructure and careful
management of the information that is in our possession.

Disruption of our IT systems could inhibit our business operations in a number of ways, including
disruption to sales, production and cash flows, ultimately impacting our results.

There is also a threat from unauthorised access and misuse of sensitive information. Unilever’s
information systems could be subject to unauthorised access or the mistaken disclosure of
information which disrupts Unilever’s business and/or leads to loss of assets.

Unilever Annual Report and Accounts 2015Strategic ReportPRINCIPAL RISK

DESCRIPTION OF RISK

BUSINESS
TRANSFORMATION
Successful execution of business
transformation projects is key to
delivering their intended business
benefits and avoiding disruption to
other business activities.

EXTERNAL ECONOMIC AND
POLITICAL RISKS AND
NATURAL DISASTERS
Unilever operates around the
globe and is exposed to a range of
external economic and political
risks and natural disasters that
may affect the execution of our
strategy or the running of our
operations.

TREASURY AND PENSIONS
Unilever is exposed to a variety of
external financial risks in relation
to Treasury and Pensions.

ETHICAL
Acting in an ethical manner,
consistent with the expectations
of customers, consumers and
other stakeholders, is essential
for the protection of the reputation
of Unilever and its brands.

LEGAL AND REGULATORY
Compliance with laws and
regulations is an essential part
of Unilever’s business operations.

Unilever is continually engaged in major change projects, including acquisitions and disposals
and outsourcing, to drive continuous improvement in our business and to strengthen our portfolio
and capabilities.

Failure to execute such transactions or change projects successfully, or performance issues with
third party outsourced providers on which we are dependent, could result in under-delivery of the
expected benefits. Furthermore, disruption may be caused in other parts of the business.

Adverse economic conditions may result in reduced consumer demand for our products, and may
affect one or more countries within a region, or may extend globally.

Government actions such as fiscal stimulus and price controls can impact on the growth and
profitability of our local operations.

Social and political upheavals and natural disasters can disrupt sales and operations.

In 2015, more than half of Unilever’s turnover came from emerging markets including Brazil,
India, Indonesia, Turkey, South Africa, China, Mexico and Russia. These markets offer greater
growth opportunities but also expose Unilever to related economic, political and social volatility.

The relative values of currencies can fluctuate widely and could have a significant impact on
business results. Further, because Unilever consolidates its financial statements in euros it is
subject to exchange risks associated with the translation of the underlying net assets and earnings
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 in foreign currency or to remit dividends to the parent company.

Currency rates, along with demand cycles, can also result in significant swings in the prices of the
raw materials needed to produce our goods.

Unilever may face liquidity risk, ie difficulty in meeting its obligations, associated with its financial
liabilities. A material and sustained shortfall in our cash flow could undermine Unilever’s credit
rating, impair investor confidence and also restrict Unilever’s ability to raise funds.

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.

In times of financial market volatility, we are also potentially exposed to counter-party risks with
banks, suppliers and customers.

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.

Unilever’s brands and reputation are valuable assets and the way in which we operate, contribute to
society and engage with the world around us is always under scrutiny both internally and externally.
Despite the commitment of Unilever to ethical business and the steps we take to adhere to this
commitment, there remains a risk that activities or events cause us to fall short of our desired
standard, resulting in damage to Unilever’s corporate reputation and business results.

Unilever is subject to national and regional laws and regulations in such diverse areas as product
safety, product claims, trademarks, copyright, patents, competition, employee health and safety,
the environment, corporate governance, listing and disclosure, employment and taxes.

Failure to comply with laws and regulations could expose Unilever to civil and/or criminal actions
leading to damages, fines and criminal sanctions against us and/or our employees with possible
consequences for our corporate reputation.

Changes to laws and regulations could have a material impact on the cost of doing business. Tax, in
particular, is a complex area where laws and their interpretation are changing regularly, leading to
the risk of unexpected tax exposures. International tax reform remains a key focus of attention with
the OECD’s Base Erosion & Profit Shifting project and the EU’s action plan for fair and efficient
corporation taxation.

Unilever Annual Report and Accounts 2015Strategic ReportSUMMARY REMUNERATION REPORT
CHAIRMAN’S LETTER

DEAR SHAREHOLDERS,
As the new Compensation Committee Chair, I am pleased to
present Unilever’s 2015 Directors’ Remuneration Report. I outline
below our performance and the decisions we have made on
remuneration, all of which have been made in the context of the
Committee’s long-held remuneration principles, as set out on
page 68 of the Governance and Financial Report.

BUSINESS PERFORMANCE AND REMUNERATION
OUTCOMES FOR 2015

ANNUAL BONUS – ANOTHER YEAR OF CONSISTENT
PERFORMANCE DELIVERY
Despite a continuing tougher external environment, 2015 saw a
good delivery of our targets for financial performance, operational
excellence and sustainable development. Unilever’s efforts to
deliver sharper category strategies, greater focus on the core and
the sustained investments we are making behind our innovations
have improved growth. Despite the increasingly volatile
environment, we achieved underlying sales growth of 4.1% with a
step-up in volume growth and have continued to grow ahead of our
markets. By challenging our costs and taking out any non-value-
added activity that is not helping to build the business, we delivered
core operating margin improvement of 0.3 percentage points.

In 2015 the Committee decided to focus on the importance of
cash generation in view of lower global growth rates by replacing
underlying volume growth with growth in free cash flow (FCF).
For the purpose of the annual bonus calculations, we adjusted
FCF delivery from €4.8 billion for one-offs to €4.3 billion (up
€0.4 billion from last year). On a formulaic basis the outcome of
Unilever’s 2015 performance was 118% of target. Adjusting for
quality of results and relative performance, the Committee agreed
an above-par 2015 annual bonus outcome of 110% of target.
The Committee believes this represents a fair assessment of
Unilever’s overall performance over 2015. Personal performance
of the Executive Directors has been recognised by the Committee
through the remuneration outcomes for 2015 with a bonus of
185% of salary (92% of maximum) for the CEO, Paul Polman, and
a bonus of 110% of salary (73% of maximum) for the former CFO,
Jean-Marc Huët.

GLOBAL SHARE INCENTIVE PLAN (GSIP) AND
MANAGEMENT CO-INVESTMENT PLAN (MCIP) –
SUSTAINED PERFORMANCE DELIVERY
Over the past three years, Unilever has delivered consistent
financial performance. Underlying sales growth during this period
was 3.8% per annum and core operating margin improvement over
the period was an average of 0.37 percentage points per year,
demonstrating management’s drive for consistent top and bottom
line growth. Unilever also generated strong operating cash in
the period, with cumulative operating cash flow of €16.6 billion.
Total shareholder return (TSR) over this three-year period was
below the performance of many of our peers and, as such, no part
of the GSIP and MCIP awards related to TSR will vest. On the basis
of this performance, the Committee determined that the GSIP and
MCIP awards to the end of 2015 will vest at 98% of initial award
levels (ie 49% of maximum for GSIP and 65% of maximum for MCIP
(which is capped at 150% for the Executive Directors)).

EXECUTIVE DIRECTOR CHANGES
Jean-Marc Huët stepped down from the role of CFO and Executive
Director on 1 October 2015. Graeme Pitkethly became CFO on that
same date and he will be proposed for election to the Boards at
the AGMs in April 2016. In line with our shareholder-approved
Remuneration Policy, Jean-Marc Huët was treated as a ‘good
leaver’ for 2013-2015 GSIP and MCIP awards with performance
conditions to be measured at the normal vesting date and awards

being pro-rated for length of service. Full details of the payment
relating to Jean-Marc Huët’s cessation of employment are set
out on page 78. Graeme Pitkethly’s remuneration for his role as
Executive Director with effect from the 2016 AGMs is structured
wholly in line with our Remuneration Policy and details are set
out on page 69.

REMUNERATION FOR 2016
In accordance with our Remuneration Policy, the base salary
of Executive Directors is reviewed every year. The Committee
undertook this review in November 2015. Based on his firmly
established and sustained track record of good performance, the
Committee believes further increases to the CEO’s salary would
be justified. However, it agreed to Paul Polman’s request to not
increase his base salary in light of his view that the CEO should be
rewarded through performance-based pay rather than a salary
increase. Annual bonus opportunity and GSIP and MCIP award
levels will remain unchanged. The fees for the current Chairman
and Non-Executive Directors will also be unchanged for 2016.

STRATEGIC LINKAGE OF REWARD TO BUSINESS
PERFORMANCE
In preparation for the 2016 annual bonus and long-term incentive
plan awards, the Committee has undertaken a review of the
performance measures and targets that will determine vesting
of these awards. Unilever’s success is driven by continued focus
on delivering consistent and competitive growth in a sustainable
and profitable manner. Accordingly, underlying sales growth and
core operating margin improvement are key measures in our
annual bonus plan and long-term executive incentive plans. Cash
flow generation remains central to the success of the business
in terms of both returns to shareholders and investment for future
growth and therefore remains a performance measure in both our
annual bonus plan (free cash flow) and long-term incentive plans
(operating cash flow). The Committee therefore concluded that the
performance measures for our 2016 annual bonus plan and for the
2016-2018 performance cycle of our long-term executive incentive
plans should remain unchanged. For reasons of commercial
sensitivity the target ranges for our performance measures will be
disclosed together with the outcomes of incentive plans at the end
of the respective performance periods.

REMUNERATION FRAMEWORK
Having considered various alternatives, the Committee decided not
to make material changes to Unilever’s remuneration framework
or Remuneration Policy for 2016. The current remuneration
framework has served Unilever well and this view is endorsed
generally by the majority of our largest shareholders whom
Michael Treschow and I met in September 2015. Nonetheless, in
advance of the renewal of Unilever’s Remuneration Policy and
the GSIP in 2017, we are continuing the process with a further full
review of our remuneration framework in 2016.

This will ensure that future remuneration arrangements are
fully aligned with our long-term strategy to deliver value to
shareholders and that performance measures for incentive plans
are transparent and fully aligned with our business plans. The
Committee’s views on this will be developed over the coming
months and I look forward to consulting our shareholders
and receiving feedback in shaping our proposals to extend, modify
or replace our Remuneration Policy at the 2017 AGMs.

Ann Fudge
Chair of the Compensation Committee

Unilever Annual Report and Accounts 2015Strategic ReportThe following sets out how Unilever’s Remuneration Policy, to be found at www.unilever.com/ara2015/downloads, was implemented in 2015.
Further details of remuneration can be found on pages 66 to 83 of the Governance and Financial Report.

SINGLE FIGURE OF REMUNERATION IN 2015 FOR EXECUTIVE DIRECTORS (AUDITED)
The table below shows a single figure of remuneration for each of our Executive Directors, for the years 2014 and 2015.

Base salary and fixed allowance are set in sterling and remain
unchanged from 2014 through 2015, please read the notes below
the table for more information

(A) Base salary (b)
(B) Fixed allowances and other benefits (c)
(C) Annual bonus

Long-term incentives

(D) MCIP matching shares – (required by UK law)
(E) GSIP performance shares – (required by UK law)

Long-term incentives (sub-total)
(F) Conditional supplemental pension (d)

Total remuneration paid – (required by UK law) (A+B+C+D+E+F)

(G) Share awards (required by Dutch law) (e)

Total remuneration paid – (required by Dutch law) (A+B+C+F+G)

Paul Polman
CEO (UK)
(€’000)

Jean-Marc Huët
CFO (UK)
(€’000)

2015

1,392
901
2,573
1,972
3,404
5,376
161

10,403

3,274

8,301

2014

1,251
787
1,652
1,803
3,923
5,726
145

9,561

4,206

8,041

2015 (a)

738
273
812
382
1,820
2,202
n/a

4,025

573

2,396

2014

885
377
778
370
3,022
3,392
n/a

5,432

2,249

4,289

Where relevant, amounts for 2015 have been translated into euros using the average exchange rate over 2015 (€1 = £0.7254). Amounts for
2014 have been translated into euros using the average exchange rate over 2014 (€1 = £0.8071), excluding amounts in respect of MCIP and
GSIP which have been translated into euros using the exchange rate at vesting date of 17 February 2015 (€1 = £0.7383).

(a) The 2015 figures relate to amounts paid or payable to Jean-Marc Huët for his services between 1 January 2015 and 1 October 2015, the date that Jean-Marc Huët

ceased to be CFO and an Executive Director of Unilever. Details regarding his leaving arrangements can be found on page 78 of the Governance and Financial Report.

(b) Salary set in sterling and paid in 2015: CEO – £1,010,000 and CFO – £535,500.
(c) Includes the fixed allowance, medical insurance cover and actual tax return preparation costs, provision of death-in-service benefits and administration, and
payment to protect against differences between employee social security obligations in country of residence versus UK (not applicable to Jean-Marc Huët).
(d) Conditional supplemental pension provision agreed with Paul Polman on hiring, which is conditional on his remaining in employment with Unilever to age 60 and

subsequently retiring from active service or his death or total disability prior to retirement. This was £117,123, based on 12% of a capped salary of £976,028 for 2015.
(e) As per the Dutch requirements, these costs are non-cash costs and relate to the expenses recognised for the period following IFRS 2. This is based on share

prices on grant dates, a 98% adjustment factor for GSIP shares and MCIP matching shares awarded in 2015, 2014 and 2013.

SINGLE FIGURE OF REMUNERATION IN 2015 FOR NON-EXECUTIVE DIRECTORS (AUDITED)
The table below shows a single figure of remuneration for each of our Non-Executive Directors, for the years 2014 and 2015.

Non-Executive Director

Michael Treschow(c)
Nils Andersen
Laura Cha
Vittorio Colao
Louise Fresco(d)
Ann Fudge(e)
Charles Golden(f)
Byron Grote(g)
Judith Hartmann
Mary Ma
Hixonia Nyasulu
Sir Malcolm Rifkind(g)
John Rishton(h)
Feike Sijbesma(i)
Kees Storm(g)
Paul Walsh(g)

Total

2015

2014

Fees(a)
€’000

Benefits(b)
€’000

Total
remuneration
€’000

Fees(a)
€’000

Benefits(b)
€’000

Total
remuneration
€’000

732
75
122
57
126
149
n/a
47
80
120
120
38
133
126
73
42

2,040

2
4
–
–
–
–
n/a
–
–
–
–
–
–
1
–
–

734
79
122
57
126
149
n/a
47
80
120
120
38
133
127
73
42

654
n/a
101
n/a
113
101
42
125
n/a
107
107
101
107
15
196
113

2,047

1,882

3
n/a
–
n/a
–
11
–
–
n/a
–
–
–
–
1
3
2

657
n/a
101
n/a
113
112
42
125
n/a
107
107
101
107
16
199
115

1,902

(a) This includes fees received from NV in euros and PLC in sterling for 2014
and 2015 respectively. Includes basic Non-Executive Director fee and
Committee chairmanship and/or membership.

(b) The only benefit received relates to travel by spouses or partners where

they are invited by Unilever.

(d) Chair, Corporate Responsibility Committee.
(e) Vice-Chairman and Chair of the Compensation Committee.
(f) Chose not to put himself forward for re-election at the May 2014 AGMs.
(g) Chose not to put himself forward for re-election at the April 2015 AGMs.
(h) Chair, Audit Committee.
(i) Chair, Nominating and Corporate Governance Committee.

Unilever Annual Report and Accounts 2015Strategic ReportSHAREHOLDER INFORMATION
FINANCIAL CALENDAR

ANNUAL GENERAL MEETINGS

PLC

Date

Voting Record date

Voting and Registration date

1.30pm 20 April 2016

1.30pm 21 April 2016

–

24 March 2016

18 April 2016

14 April 2016

QUARTERLY DIVIDENDS
Dates listed below are applicable to all four Unilever listings (NV ordinary shares, PLC ordinary shares, NV New York shares,
and PLC ADRs).

Announced

NV NY and PLC ADR
ex-dividend date

NV and PLC
ex-dividend date

Record date

Payment date

Quarterly dividend announced with
the Q4 2015 results

Quarterly dividend announced with
the Q1 2016 results

Quarterly dividend announced with
the Q2 2016 results*

Quarterly dividend announced with
the Q3 2016 results

19 January 2016

3 February 2016

4 February 2016

5 February 2016

9 March 2016

14 April 2016

27 April 2016

28 April 2016

29 April 2016

1 June 2016

21 July 2016

3 August 2016

4 August 2016

5 August 2016

7 September 2016

13 October 2016

26 October 2016

27 October 2016

28 October 2016

7 December 2016

WEBSITE
Shareholders are encouraged to visit our website www.unilever.com
which has a wealth of information about Unilever.

There is a section designed specifically for investors at
www.unilever.com/investorrelations. It includes detailed coverage
of the Unilever share price, our quarterly and annual results,
performance charts, financial news and investor relations
speeches and presentations. It also includes conference and
investor/analyst presentations.

You can also view this year’s Annual Report and Accounts, and
those for prior years, at www.unilever.com/investorrelations.

PLC shareholders can elect to receive their shareholder
communications such as the Annual Report and Accounts and
other shareholder documents electronically by registering at
www.unilever.com/shareholderservices.

PUBLICATIONS
The Strategic Report is only part of the Annual Report and Accounts
2015 and, together with the governance section of the Governance
and Financial Report, constitutes the report of the Directors within
the meaning of Section 2:391 of the Dutch Civil Code. Copies of the
Strategic Report, the Governance and Financial Report, and the
public documents referred to below can be accessed directly or
ordered through www.unilever.com/investorrelations.

UNILEVER ANNUAL REPORT AND ACCOUNTS 2015
The Unilever Annual Report and Accounts 2015 comprises the
Strategic Report and the Governance and Financial Report which
is available in English with figures in euros. It forms the basis for
the Form 20-F that is filed with the United States Securities and
Exchange Commission, which is also available free of charge at
www.sec.gov.

QUARTERLY RESULTS ANNOUNCEMENTS
Available in English with figures in euros.

* Also applicable for preferential dividends NV

CONTACT DETAILS
Unilever N.V. and Unilever PLC
100 Victoria Embankment
London EC4Y 0DY
United Kingdom
Institutional Investors telephone +44 (0)20 7822 6830
Any queries can also be sent to us electronically via
www.unilever.com/resource/contactus
Private Shareholders telephone +44 (0)20 7822 5500
Private Shareholders can email us at
shareholder.services@unilever.com

SHARE REGISTRATION
THE NETHERLANDS
SGG Netherlands N.V.
Hoogoorddreef 15
1101 BA Amsterdam
Telephone
Telefax
Website
Email

+31 (0)20 522 25 55
+31 (0)20 522 25 35
www.sgggroup.com
registers@sgggroup.com

UK
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone
Telefax
Website
Email

+44 (0)370 600 3977
+44 (0)370 703 6101
www.investorcentre.co.uk
webcorres@computershare.co.uk

US
American Stock Transfer & Trust Company
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
Toll-free number +1 866 249 2593
+1 718 921 8124
Direct dial
DB@amstock.com
Email

Unilever Annual Report and Accounts 2015Strategic ReportCAUTIONARY STATEMENT
This document may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vision’, or the negative of these terms and other
similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking
statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Unilever Group (the
“Group”). They are not historical facts, nor are they guarantees of future performance.

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially
from those expressed or implied by these forward-looking statements. Among other risks and uncertainties, the material or principal factors which could
cause actual results to differ materially are: Unilever’s global brands not meeting consumer preferences; Unilever’s ability to innovate and remain competitive;
Unilever’s investment choices in its portfolio management; inability to find sustainable solutions to support long-term growth; customer relationships; the
recruitment and retention of talented employees; disruptions in our supply chain; the cost of raw materials and commodities; the production of safe and high
quality products; secure and reliable IT infrastructure; successful execution of acquisitions, divestitures and business transformation projects; economic
and political risks and natural disasters; financial risks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters.

These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly
disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change
in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Further details of potential risks and uncertainties affecting the Group are described in the Group’s filings with the London Stock Exchange, Euronext
Amsterdam and the US Securities and Exchange Commission, including in the Group’s Annual Report on Form 20-F for the year ended 31 December 2015
and the Annual Report and Accounts 2015.

This document is not prepared in accordance with US GAAP and should not therefore be relied upon by readers as such. The Group’s Annual Report on
Form 20-F for 2015 is separately filed with the US Securities and Exchange Commission and is available on our corporate website www.unilever.com.

In addition, a printed copy of the Annual Report on Form 20-F is available, free of charge, upon request to Unilever, Investor Relations Department,
100 Victoria Embankment, London EC4Y 0DY, United Kingdom.

This report comprises regulated information within the meaning of Sections 1:1 and 5:25c of the Act on Financial Supervision (“Wet op het financieel toezicht
(Wft)”) in the Netherlands.

The brand names shown in this report are trademarks owned by or licensed to companies within the Group.

References in this document to information on websites (and/or social media sites) are included as an aid to their location and such information is not
incorporated in, and does not form part of, the Annual Report and Accounts 2015 or Annual Report on Form 20-F with the exception of the explanations and
disclaimers which can be accessed via KPMG’s website: www.kpmg.com/uk/auditscopeukco2014b, which is incorporated into the Auditors’ Reports in the
Annual Report and Accounts 2015 as if set out in full.

Designed and produced by Unilever Communications in conjunction with Addison Group at www.addison-group.net.

Photography by Frank Aiello, Liam Arthur, Namas Bhojani, Rahmat Budi, Benoît Delamare, Oliver Edwards, Igor Emmerich, Andrew Esiebo, Caio Gallucci,
Philip Gatward, Michael Heffernan, Ifeanyi Iloduba, Alberto Martin, Philip Reeson, Frédéric Remouchamps, Claudio Sforza, Hazel Thompson, Rian Ardi Wakito,
Jessie Watford, James Woolley, Cubo.cc, Getty, Shutterstock and from the Unilever image library.

Zero-based budgeting graphic on page 12 owned by Accenture.

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FOR FURTHER INFORMATION ABOUT
UNILEVER PLEASE VISIT OUR WEBSITE:
WWW.UNILEVER.COM

UNILEVER N.V.
Head Office and Registered Office
Weena 455, PO Box 760
3000 DK Rotterdam
The Netherlands
T +31 (0)10 217 4000

Commercial Register Rotterdam
Number: 24051830

UNILEVER PLC
Head Office
100 Victoria Embankment
London EC4Y 0DY
United Kingdom
T +44 (0)20 7822 5252

Registered Office
Unilever PLC
Port Sunlight
Wirral
Merseyside CH62 4ZD
United Kingdom

Registered in England and Wales
Company Number: 41424

MAKING
SUSTAINABLE LIVING
COMMONPLACE

ANNUAL REPORT
AND ACCOUNTS 2015
GOVERNANCE AND
FINANCIAL REPORT

CONTENTS

GOVERNANCE

Corporate governance

Risks

Biographies

Report of the Audit Committee

Report of the Corporate Responsibility Committee

Report of the Nominating and Corporate
Governance Committee

Directors’ Remuneration Report

FINANCIAL STATEMENTS

Statement of Directors’ responsibilities

Independent auditors’ reports

Consolidated income statement

Consolidated statement of comprehensive income

Notes to the consolidated financial statements (continued)

13 Trade and other current receivables

14 Trade payables and other liabilities

Capital and funding
15A Share capital
15B Equity
15C Financial liabilities

Treasury risk management
16A Management of liquidity risk
16B Management of market risk
16C Derivatives and hedging

Investment and return
17A Financial assets
17B Credit risk

18 Financial instruments fair value risk

19 Provisions

20 Commitments and contingent liabilities

21 Acquisitions and disposals

Consolidated statement of changes in equity

22 Assets and liabilities held for sale

Consolidated balance sheet

23 Related party transactions

Consolidated cash flow statement

Purchase of Estate shares convertible to Unilever PLC
shares in 2038

Notes to the consolidated financial statements

1 Accounting information and policies

2 Segment information

3 Gross profit and operating costs

4 Employees

4A Staff and management costs
4B Pensions and similar obligations
4C Share-based compensation plans

5 Net finance costs

6 Taxation

6A Income tax
6B Deferred tax
6C Tax on other comprehensive income

7 Combined earnings per share

8 Dividends on ordinary capital

9 Goodwill and intangible assets

10 Property, plant and equipment

11 Other non-current assets

Inventories

99
99
99
104

105

106
106
106
108

108

109

111

112

113

25 Remuneration of auditors

26 Events after the balance sheet date

Group companies

Company accounts – Unilever N.V.

Notes to the Company accounts – Unilever N.V.

Further statutory and other information – Unilever N.V.

Company accounts – Unilever PLC

Notes to the Company accounts – Unilever PLC

Index

The Directors’ Report of Unilever PLC on pages 45-65, 84 (Statement of
Directors’ responsibilities), 109 (Dividends on ordinary capital), 120-125
(Treasury risk management), 147 (branch disclosure) and 154 and 158 (Post
balance sheet event) has been approved by the PLC Board and signed on its
behalf by Tonia Lovell – Group Secretary.

The Strategic Report, together with the governance section of the Governance
and Financial Report, constitutes the report of the Directors within the
meaning of Section 2:391 of the Dutch Civil Code and has been approved by
the NV Board and signed on its behalf by Tonia Lovell – Group Secretary.

113

114

115
116
117
119

120
120
122
124

125
126
127

127

129

130

131

134

135

136

148

149

154

155

156

160

OUR ANNUAL REPORT AND ACCOUNTS 2015 IS IN TWO PARTS:

OUR STRATEGIC REPORT
The Strategic Report contains information about us, how we create value and how we run our business. It includes our strategy,
business model, markets and Key Performance Indicators, as well as our approach to sustainability and risk.

GOVERNANCE AND FINANCIAL REPORT
The Governance and Financial Report contains detailed corporate governance information, how we mitigate risk, our Committee
reports and how we remunerate our Directors, plus our Financial Statements and Notes.

ONLINE

You can find more information about Unilever online at www.unilever.com. For the latest information on the USLP visit
www.unilever.com/sustainable-living. Our Strategic Report and Governance and Financial Report, along with other relevant
documents, can be downloaded at www.unilever.com/ara2015/downloads.

GOVERNANCE
CORPORATE GOVERNANCE

GOVERNANCE OF UNILEVER

ABOUT UNILEVER
Unilever N.V. (NV) and Unilever PLC (PLC), together with their
group companies have, since the Unilever Group was formed in
1930, operated as nearly as practicable as a single economic
entity. This is achieved by special provisions in the Articles of
Association of NV and PLC, together with a series of agreements
between NV and PLC which are together known as the Foundation
Agreements (described below). These agreements enable Unilever
to achieve unity of management, operations, shareholders’ rights,
purpose and mission and can be found on our website.

The Equalisation Agreement makes the economic position of
the shareholders of NV and PLC, as far as possible, the same
as if they held shares in a single company and also regulates the
mutual rights of the shareholders of NV* and PLC. Under this
agreement, NV and PLC must adopt the same financial periods
and accounting policies.

The Deed of Mutual Covenants provides that NV and PLC and their
respective subsidiary companies shall co-operate in every way for
the purpose of maintaining a common operating policy. They shall
exchange all relevant information about their respective businesses
– the intention being to create and maintain a common operating
platform for the Group throughout the world. The Deed also contains
provisions for the allocation of assets between NV and PLC.

Under the Agreement for Mutual Guarantees of Borrowing
between NV and PLC, each company will, if asked by the other,
guarantee the borrowings of the other and the other’s subsidiaries.
These arrangements are used, as a matter of financial policy, for
certain significant borrowings. They enable lenders to rely on our
combined financial strength.

Each NV ordinary share represents the same underlying economic
interest in the Unilever Group as each PLC ordinary share.
However, NV and PLC remain separate legal entities with different
shareholder constituencies and separate stock exchange listings.
Shareholders cannot convert or exchange the shares of one for the
shares of the other. More information on the exercise of voting
rights can be found in NV’s and PLC’s Articles of Association and
in the respective Notices of Meetings, all of which can be found on
our website.

* Throughout this report when referring to NV shares or shareholders the
term ‘shares’ or ‘shareholder’ also encompasses a depositary receipt or
a holder of depositary receipts.

www.unilever.com/legalstructure

BOARDS
The Boards of NV and PLC have ultimate responsibility for the
management, general affairs, direction, performance and
long-term success of our business as a whole. The Boards are
one-tier boards, the same people are on both Boards and the
responsibility of the Directors is collective, taking into account
their respective roles as Executive Directors and Non-Executive
Directors. The majority of the Directors are Non-Executive
Directors who essentially have a supervisory role. Until 1 October
2015 Unilever continued to have two Executive Directors, the Chief
Executive Officer (CEO) and Chief Financial Officer (CFO), who are
also members of the Unilever Leadership Executive (ULE).
Jean-Marc Huët, the CFO, resigned with effect from 1 October
2015. His successor as CFO, Graeme Pitkethly, became a member
of the ULE and the CFO on 1 October 2015 and will be proposed
to be appointed as an Executive Director at the 2016 AGMs.

A list of our current Directors, their roles on the Boards, their
dates of appointment and their other major appointments is set out
on page 58.

The Boards have delegated the operational running of the Group
to the CEO with the exception of the following matters which are
reserved for the Boards: structural and constitutional matters,
corporate governance, approval of dividends, approval of overall
strategy for the Group, approval of significant transactions or
arrangements in relation to mergers, acquisitions, joint ventures
and disposals, capital expenditure, contracts, litigation, financing
and pensions. The CEO is responsible to the Boards and is able to
delegate any of his powers and discretions which he does to
members of the ULE. The ULE is chaired by and reports to the
CEO. The biographies of ULE members are on page 59.

BOARD COMMITTEES
The Boards have established four Board Committees: the
Audit Committee, the Compensation Committee, the Corporate
Responsibility Committee and the Nominating and Corporate
Governance Committee. The terms of reference of these
Committees can be found on our website and the reports of
each Committee, including attendance at meetings in 2015, can
be found on pages 60 to 83.

www.unilever.com/committees

THE GOVERNANCE OF UNILEVER
Further details of the roles and responsibilities of the Chairman,
Vice-Chairman, CEO and other corporate officers and how our
Boards effectively operate as one board, govern themselves and
delegate their authorities are set out in the document entitled
‘The Governance of Unilever’, which can be found on our website.

The Governance of Unilever also describes the Foundation
Agreements, Directors’ appointment, tenure, induction and
training, Directors’ ability to seek independent advice at Unilever’s
expense and details about Board and Management Committees
(including the Disclosure Committee).

www.unilever.com/corporategovernance

BOARD EFFECTIVENESS

BOARD MEETINGS
A minimum of five face-to-face meetings are planned throughout
the calendar year to consider, for example, the half-year and full-year
results announcements of the Group and the Annual Report and
Accounts. Other Board meetings and telephone conferences are
held to discuss matters that arise as well as Group strategic issues.
Meetings of the Boards may be held either in London or in Rotterdam
or such other locations as the Boards think fit, with one or two
off-site Board meetings a year. The Chairman sets the Boards’
agenda, ensures the Directors receive accurate, timely and clear
information, and promotes effective relationships and open
communication between the Executive and Non-Executive Directors.

In 2015 the Boards met physically in January, March, April, July,
September and November and considered important corporate
events and actions, such as:
• developing and approval of the overall strategy;
• oversight of the performance of the business;
• review of risks and internal risk management and

control systems;

• authorisation of major transactions;
• declaration of dividends;
• convening of shareholders’ meetings;
• nominations for Board appointments, including Chairman and

CFO succession;

• review of the functioning of the Boards and their Committees; and
• review of corporate responsibility and sustainability,
in particular the Unilever Sustainable Living Plan.

Unilever Annual Report and Accounts 2015GovernanceCORPORATE GOVERNANCE CONTINUED

ATTENDANCE
The following table shows the attendance of Directors at Board
meetings in 2015. If Directors are unable to attend a Board meeting
they have the opportunity beforehand to discuss any agenda items
with the Chairman. Attendance is expressed as the number of
meetings attended out of the number eligible to be attended.

Michael Treschow(a)
Ann Fudge(b)
Paul Polman(c)
Jean-Marc Huët(d)
Nils Andersen(e)
Laura Cha
Vittorio Colao(f)
Louise Fresco
Byron Grote(g)
Judith Hartmann(e)
Mary Ma
Hixonia Nyasulu
Sir Malcolm Rifkind(g)
John Rishton
Feike Sijbesma
Kees Storm(g)
Paul Walsh(g)

Main Board

8 / 8
8 / 8
8 / 8
5 / 6
4 / 4
6 / 8
3 / 4
8 / 8
4 / 4
4 / 4
7 / 8
7 / 8
2 / 4
7 / 8
7 / 8
3 / 4
4 / 4

(a) Chairman
(b) Vice-Chairman/Senior Independent Director with effect from 30 April 2015
(c) Executive Director
(d) Executive Director until his resignation with effect from 1 October 2015
(e) Appointed to the Boards with effect from 30 April 2015
(f) Appointed to the Boards with effect from 1 July 2015
(g) Retired from the Boards on 30 April 2015

NON-EXECUTIVE DIRECTOR MEETINGS
The Non-Executive Directors meet as a group, without the
Executive Directors present, to consider specific agenda items
set by them, usually four or five times a year. In 2015 they met six
times. The Chairman, or in his absence the Vice-Chairman and
Senior Independent Director, chairs such meetings.

BOARD EVALUATION
Each year the Boards formally assess their own performance with
the aim of helping to improve the effectiveness of both the Boards
and the Committees and at least once every three years an
independent third party facilitates the evaluation. The last external
evaluation was performed in 2014. The evaluation consists of
individual interviews with the Directors by the Chairman and, when
relevant, by the external evaluator. These interviews complement
our annual process of completion by all Directors of three
confidential online evaluation questionnaires on our Boards, CEO
and Chairman. In this year’s evaluation the Board questionnaire
was simplified and shortened and invited comments on a number
of key areas including Board responsibility, operations,
effectiveness, training and knowledge. The Chairman’s Statement
on page 4 describes the key actions agreed by the Boards
following that evaluation.

In addition to the evaluation of the Boards’ effectiveness, each year
the Chairman conducts a process of evaluating the performance
and contribution of each Director which includes a one-to-one
performance and feedback discussion with each Director. The
evaluation of the performance of the Chairman is led by the
Vice-Chairman and Senior Independent Director and the Chairman
leads the evaluation of the CEO, both using bespoke questionnaires.
Committees of the Boards evaluate themselves annually under
supervision of their respective Chairmen taking into account the
views of respective Committee members and the Boards. The key
actions agreed by each Committee in this year’s evaluation can be
found in each Committee Report.

APPOINTMENT
In seeking to ensure that NV and PLC have the same Directors,
the Articles of Association of NV and PLC contain provisions which
are designed to ensure that both NV and PLC shareholders are
presented with the same candidates for election as Directors.
Anyone being elected as a Director of NV must also be elected as
a Director of PLC and vice versa. Therefore, if an individual fails
to be elected to both companies he or she will be unable to take his
or her place on either Board.

The report of the Nominating and Corporate Governance
Committee (NCGC) on pages 64 and 65 describes the work
of the NCGC in Board appointments and recommendations for
re-election. In addition, shareholders are able to nominate
Directors. The procedure for shareholders to nominate Directors
is contained within the document entitled ‘Appointment procedure
for NV and PLC Directors’ which is available on our website. To do
so they must put a resolution to both the NV and PLC AGMs in line
with local requirements. Directors are appointed by shareholders
by a simple majority vote at each AGM.

www.unilever.com/boardsofunilever

DIRECTOR INDUCTION AND TRAINING
All Directors receive induction on joining the Boards and a new, and
more comprehensive, induction programme was put in place in
2015. The Chairman ensures that ongoing training is provided for
Directors by way of site visits, presentations and circulated updates
at (and between) Board and Board Committee meetings on, among
other things, Unilever’s business, environmental, social, corporate
governance, regulatory developments and investor relations
matters. Details of the training provided to the Directors in 2015
can be found in the Chairman’s Statement on page 4.

INDEPENDENCE AND CONFLICTS
As the Non-Executive Directors make up the Committees of
the Boards, it is important that they can be considered to be
independent. Each year the Boards conduct a thorough review
of the Non-Executive Directors’, and their related or connected
persons’, relevant relationships referencing the criteria set out
in ‘The Governance of Unilever’ which is derived from the
relevant best practice guidelines in the Netherlands, UK and US.
The Boards currently consider all our Non-Executive Directors
to be independent of Unilever.

We attach special importance to avoiding conflicts of interest
between NV and PLC and their respective Directors. The Boards
ensure that there are effective procedures in place to avoid
conflicts of interest by Board members. If appropriate,
authorisation of situational conflicts is given by the Boards to the
relevant Director. The authorisation includes conditions relating to
keeping Unilever information confidential and to the Director’s
exclusion from receiving and discussing relevant information at
Board meetings. Situational conflicts are reviewed annually by the
Boards as part of the determination of Director independence. In
between those reviews Directors have a duty to inform the Boards
of any relevant changes to the situation. A Director may not vote on,
or be counted in a quorum in relation to, any resolution of the
Boards in respect of any situation in which he or she has a conflict
of interest. The procedures that Unilever has put in place to deal
with conflicts of interest operate effectively.

Unilever recognises the benefit to the individual and the Group
of senior executives acting as directors of other companies but,
to ensure outside directorships of our Executive Directors do
not involve an excessive commitment or conflict of interest, the
number of outside directorships of listed companies is generally
limited to one per Executive Director and approval is required from
the Chairman.

Unilever Annual Report and Accounts 2015GovernanceINDEMNIFICATION
The terms of NV Directors’ indemnification are provided for in NV’s
Articles of Association. The power to indemnify PLC Directors is
provided for in PLC’s Articles of Association and deeds of indemnity
have been issued to all PLC Directors. Appropriate qualifying third
party directors’ and officers’ liability insurance was in place for all
Unilever Directors throughout 2015 and is currently in force.

In addition, PLC provides indemnities (including, where applicable,
a qualifying pension scheme indemnity provision) to the Directors
of three subsidiaries each of which acts as trustee of a Unilever UK
pension fund. Appropriate trustee liability insurance is also in place.

OUR SHARES

NV SHARES

SHARE CAPITAL
NV’s issued share capital on 31 December 2015 was made up of:
• €274,356,432 split into 1,714,727,700 ordinary shares of

€0.16 each;

• €1,028,568 split into 2,400 special ordinary shares numbered

1 – 2,400 known as special ordinary shares; and

• €81,454,014 split into two classes (6% and 7%) of cumulative

preference shares*.

* These shares are included within liabilities (note 15C).

LISTINGS
NV has listings of ordinary shares, 6% and 7% cumulative
preference shares and depositary receipts for such ordinary
shares and 7% cumulative preference shares on Euronext
Amsterdam and a listing of New York Registry Shares* on the
New York Stock Exchange.

* One New York Registry Share represents one NV ordinary share with a

nominal value of €0.16.

VOTING RIGHTS
NV shareholders can cast one vote for each €0.16 nominal capital
they hold and can vote in person or by proxy. The voting rights
attached to NV’s outstanding shares are split as follows:

Total number of votes

% of issued capital

1,714,727,700 ordinary shares
2,400 special shares
161,060 6% cumulative
preference shares
29,000 7% cumulative
preference shares

1,714,727,700(a)
6,428,550

431,409,276(b)

77,678,313(c)

76.89
0.29

19.34

3.48

As at 31 December 2015:
(a) 141,560,629 shares were held in treasury and 11,077,932 shares were

held to satisfy obligations under share-based incentive schemes.

(b) 37,679 6% cumulative preference shares were held in treasury.
(c) 7,562 7% cumulative preference shares were held in treasury.
The special shares and the shares under (a), (b) and (c) are not voted on.

SHARE ISSUES AND BUY BACKS
NV may issue shares not yet issued and grant rights to subscribe
for shares only pursuant to a resolution of the General Meeting
or of another corporate body designated for such purpose by a
resolution of the General Meeting. At the NV AGM held on
29 April 2015 the Board of NV was designated as the corporate
body authorised to resolve on the issue of, or on the granting of
rights to subscribe for, shares not yet issued and to restrict or
exclude the statutory pre-emption rights that accrue to
shareholders upon issue of shares, on the understanding that this
authority is limited to 10% of the issued share capital of NV, plus an
additional 10% of the issued share capital of NV in connection with
or on the occasion of mergers, acquisitions or strategic alliances.

At the 2015 NV AGM the Board of NV was also authorised to cause
NV to buy back its own shares or depositary receipts thereof,
with a maximum of 10% of issued share capital, either through
purchase on a stock exchange or otherwise, at a price, excluding
expenses, not lower than €0.01 (one euro cent) and not higher than
10% above the average of the closing price of the shares on the
trading venue where the purchase is carried out for the five
business days before the day on which the purchase is made.

These authorities expire on the earlier of the conclusion of the
2016 NV AGM or the close of business on 30 June 2016 (the last
date by which NV must hold an AGM in 2016). Such authorities are
renewed annually and authority will be sought at NV’s 2016 AGM.

During 2015 Unilever group companies purchased 373,000 NV
ordinary shares, representing 0.02% of the issued share capital,
for €13,787,337 and 2,969,212 NV New York Registry Shares,
representing 0.17% of the issued share capital, for €116,956,117.
These purchases were made to facilitate grants made in
connection with Unilever’s employee compensation programmes.
No NV 6% cumulative preference shares nor NV 7% cumulative
preference shares were purchased by Unilever group companies
during 2015. Further information on these purchases can be found
in note 4 to the consolidated accounts on pages 104 and 105.

NV SPECIAL ORDINARY SHARES
To ensure unity of management, the provisions within the NV
Articles of Association containing the rules for appointing NV
Directors cannot be changed without the permission of the holders
of the special ordinary shares numbered 1 – 2,400 inclusive. These
NV special ordinary shares may only be transferred to one
or more other holders of such shares. The joint holders of these
shares are N.V. Elma and United Holdings Limited, which are
subsidiaries of NV and PLC respectively. The Boards of N.V. Elma
and United Holdings Limited comprise the members of the
Nominating and Corporate Governance Committee.

TRUST OFFICE
The Foundation Unilever N.V. Trust Office (Stichting
Administratiekantoor Unilever N.V.) is a trust office with a board
independent of Unilever. As part of its corporate objects, the Trust
Office issues depositary receipts in exchange for the NV ordinary
shares and NV 7% cumulative preference shares. These
depositary receipts are listed on Euronext Amsterdam, as are the
NV ordinary and 7% cumulative preference shares themselves.

Unilever Annual Report and Accounts 2015Governance
CORPORATE GOVERNANCE CONTINUED

Holders of depositary receipts can under all circumstances
exchange their depositary receipts for the underlying shares (and
vice versa) and are entitled to dividends and all economic benefits
on the underlying shares held by the Trust Office. There are no
limitations on the holders’ voting rights, they can attend all
General Meetings of NV, either personally or by proxy, and have the
right to speak. The Trust Office only votes shares that are not
represented at a General Meeting. The Trust Office votes in such
a way as it deems to be in the long-term interests of the holders of
the depositary receipts. This voting policy is laid down in the
Conditions of Administration that apply to the depositary receipts.

The Trust Office’s shareholding fluctuates daily. Its holdings
on 31 December 2015 were 1,374,039,272 NV ordinary shares
(80.13%) and 9,817 NV 7% cumulative preference shares (33.85%).

The members of the board at the Trust Office are Mr J H Schraven
(chairman), Mr P P de Koning, Ms C M S Smits-Nusteling and
Mr A A Olijslager. The Trust Office reports periodically on its
activities. Further information on the Trust Office, including its
Articles of Association, Conditions of Administration and Voting
Policy, can be found on its website.

Unilever considers the arrangements of the Trust Office to be
appropriate and in the interests of NV and its shareholders given
the size of the voting rights attached to the financing preference
shares and the relatively low attendance of holders of ordinary
shares at the General Meetings of NV.

www.administratiekantoor-unilever.nl

PLC SHARES

SHARE CAPITAL
PLC’s issued share capital on 31 December 2015 was made up of:
• £40,760,420 split into 1,310,156,361 ordinary shares of 31/9p

each; and

• £100,000 of deferred stock of £1 each.

LISTINGS
PLC has shares listed on the London Stock Exchange and, as
American Depositary Receipts*, on the New York Stock Exchange.

* One American Depository Receipt represents one PLC ordinary share with a

nominal value of 31/9 p.

VOTING RIGHTS
PLC shareholders can cast one vote for each 31/9p nominal capital
they hold, and can vote in person or by proxy. This means that
shareholders can cast one vote for each PLC ordinary share or
PLC American Depositary Receipt of Shares. Therefore, the total
number of voting rights attached to PLC’s outstanding shares is
as follows:

Total number of votes

% of issued capital

1,310,156,361 ordinary shares
£100,000 deferred stock

1,310,156,361(a)
3,214,285

99.76
0.24

SHARE ISSUES AND BUY BACKS
The PLC Board may, subject to the UK Companies Act 2006 and
the passing of the appropriate resolutions at a General Meeting,
issue shares within the limits prescribed within the resolutions.
At the PLC 2015 AGM held on 30 April 2015 the PLC Directors were
authorised to issue new shares, up to a maximum of £13,300,000
nominal value (which at the time represented approximately 33%
of PLC’s issued ordinary share capital) and to disapply pre-
emption rights up to approximately 5% of PLC’s issued ordinary
share capital.

In addition, at PLC’s 2015 AGM the PLC Board was authorised to
make market purchases of its ordinary shares, up to a maximum
of 128,345,000 shares representing just under 10% of PLC’s issued
ordinary share capital and within the limits prescribed in the
resolution until the earlier of the conclusion of PLC’s 2016 AGM
and 30 June 2016. These authorities are renewed annually and
authority will be sought at PLC’s 2016 AGM.

During 2015 Unilever group companies purchased 1,664,000
PLC ordinary shares, representing 0.13% of the issued capital,
for €64,388,675 and 438,300 PLC American Depositary Receipts,
representing 0.03% of the issued capital, for €18,220,076. These
purchases were made to facilitate grants made in connection with
its employee compensation programmes. Further information on
these purchases can be found in note 4 to the consolidated
accounts on pages 104 and 105.

PLC DEFERRED STOCK
The joint holders of the PLC deferred stock are N.V. Elma and United
Holdings Limited, which are subsidiaries of NV and PLC respectively.
The Boards of N.V. Elma and United Holdings Limited comprise the
members of the Nominating and Corporate Governance Committee.
The provisions within the PLC Articles of Association containing the
rules for appointing PLC Directors cannot be changed without the
permission of the holders of PLC’s deferred stock.

OUR SHAREHOLDERS

SIGNIFICANT SHAREHOLDERS OF NV
As far as Unilever is aware, the only holders of more than 3%
of, or 3% of voting rights attributable to, NV’s share capital on
31 December 2015 (apart from the Foundation Unilever N.V. Trust
Office, see pages 47 and 48, and shares held in treasury by NV, see
page 47), are NN Group N.V. (NN), ASR Nederland N.V. (ASR) and
BlackRock, Inc. (BlackRock) as indicated in the table below.

Shareholder

Class of shares

Total number of
shares held

% of relevant
class

ordinary shares
7% cumulative
preference shares

5,489,554

20,665

As at 31 December 2015:
(a) Of which 26,696,994 shares were held by PLC in treasury and 6,694,215

shares were held by NV group companies. These shares are not voted on.

ASR

6% cumulative
preference shares

ordinary shares
6% cumulative
preference shares

74,088

2,833,072

46,000

BlackRock

ordinary shares

67,041,916

0.32

71.26

46.0

0.17

28.56

3.91

Unilever Annual Report and Accounts 2015Governance
As far as Unilever is aware, no disclosable changes in interests
in the share capital of NV have been notified to the AFM between
1 January 2016 and 15 February 2016 (the latest practicable
date for inclusion in this report). Between 1 January 2013 and
15 February 2016, ING Group N.V. (ING), BlackRock and ASR have
held more than 3% in the share capital of NV. Deutsche Bank,
Bank of America Corporation and UBS AG also held more than
3% in the share capital of NV. However, during this period, and
as notified, these holdings reduced to below the 3% reporting
threshold. During 2015, ING transferred its holdings to NN as
part of the demerger of NN from ING.

SIGNIFICANT SHAREHOLDERS OF PLC
As far as Unilever is aware, the only holders of more than 3% of,
or 3% of voting rights attributable to, PLC’s ordinary share capital
on 31 December 2015 (apart from shares held in treasury by PLC,
see page 48), are BlackRock, Inc. (BlackRock) and the Leverhulme
Trust as indicated in the table below.

Shareholder

Class of shares

BlackRock
The Leverhulme
Trust

ordinary shares

Total number of
shares held

% of relevant
class

81,254,430

68,531,182

6.3

5.3

No disclosable changes in interests in the share capital of
PLC have been notified to PLC between 1 January 2016 and
15 February 2016 (the latest practicable date for inclusion in
this report). Between 1 January 2013 and 15 February 2016,
BlackRock and the trustees of the Leverhulme Trust and the
Leverhulme Trade Charities Trust have held more than 3% of, or
3% of voting rights attributable to, PLC’s ordinary shares. During
this period, and as notified, these holdings reduced to below the
3% reporting threshold.

During 2014, the trustees of the Leverhulme Trust and the trustees
of the Leverhulme Trade Charities Trust (comprising the same
individuals (together the ‘Trustees’)) together held 70,566,764
ordinary shares amounting to 5.5% of the voting rights of PLC. On
31 December 2014 the Leverhulme Trust and the Leverhulme Trade
Charities Trust became charitable incorporated organisations. As a
consequence of these changes, the balance of shares held by the
Trustees has reduced to zero and only the Leverhulme Trust has a
disclosable interest as shown in the table above.

SHAREHOLDER ENGAGEMENT
Unilever values open, constructive and effective communication
with our shareholders. Our shareholders can raise issues directly
with the Chairman and, if appropriate, the Vice-Chairman and
Senior Independent Director. The CFO has lead responsibility for
investor relations, with the active involvement of the CEO. They are
supported by our Investor Relations department which organises
presentations for analysts and investors. These and other
materials (eg an Introduction to Unilever and AGM materials)
are generally made available on our website.

Principal shareholders: the Executive Directors’ investor relations
programme, with an active involvement of the Executive Directors
in office during 2015 and our new CFO, Graeme Pitkethly,
continued in 2015 with meetings in ten major cities in Europe,
North America and Asia. In all, they met more than 100 investors
during these roadshows. In addition, the Chairman maintained
contact with principal shareholders with one-to-one and group
governance and strategy meetings in the UK, the Netherlands and
in the US in September.

Quarterly announcements: briefings on quarterly results are given
via teleconference and are accessible by telephone or via our website.

Annual investor seminar: this annual event was held in Manila
and Singapore. It focused on long-term value creation and the
development of our business in South East Asia. It included
presentations on Unilever strategy, South East Asia, digital
marketing and e-commerce, and delivering long-term returns.
The event was attended by the Chairman, CEO, CFO and other
senior management. The slides shown and an audio recording
of the presentations were made available and can be accessed
on our website. This allows those investors not attending in
person to access the information provided at the event.

Investor conferences: the Executive Directors and members of the
Investor Relations team also meet a large number of investors at
the industry conferences they attend. In 2015 the conferences that
were attended by Unilever representatives included broker
sponsored conferences in London, Paris, San Francisco, Boston,
Amsterdam, Stockholm and Singapore.

Feedback from shareholders: we maintain a frequent dialogue
with our principal shareholders and regularly collect feedback.
We use this feedback to help shape our investor programme and
future shareholder communications. Private shareholders are
encouraged to give feedback via shareholder.services@unilever.
com. The Chairman, Executive Directors and Chairmen of the
Committees are also generally available to answer questions
from the shareholders at the AGMs each year.

Board awareness: the Boards are briefed on investor reactions
to the Group’s quarterly results announcements and are briefed
on any issues raised by shareholders that are relevant to their
responsibilities.

www.unilever.com/investorrelations

GENERAL MEETINGS
Both NV and PLC hold an AGM each year. At the AGMs the Chairman
gives his thoughts on governance aspects of the preceding year and
the CEO gives a detailed review of the performance of the Group over
the last year. Shareholders are encouraged to attend the relevant
meeting and to ask questions at or in advance of the meeting.
Indeed, the question and answer session forms an important part of
each meeting. The external auditors are welcomed to the AGMs and
are entitled to address the meetings.

The 2015 AGMs were held in Rotterdam and Leatherhead in April
and the topics raised by shareholders included: Non-Executive
Director succession planning, acquisition policy, progress of the
Unilever Sustainable Living Plan, the Baking, Cooking and Spreads
business, diversity, tax transparency and the NV cumulative
preference shares.

SHAREHOLDER PROPOSED RESOLUTIONS
Shareholders of NV may propose resolutions if they individually
or together hold at least 1% of NV’s issued capital in the form of
shares or depositary receipts issued for NV shares. Shareholders
who together represent at least 10% of the issued capital of NV
can, under certain circumstances, also requisition the District
Court to allow them to convene an Extraordinary General Meeting
to deal with specific resolutions.

Shareholders of PLC may propose resolutions if they individually
or together hold shares representing at least 5% of the total voting
rights of PLC, or 100 shareholders who hold on average £100 each
in nominal value of PLC share capital can require PLC to propose a
resolution at a General Meeting. PLC shareholders holding in
aggregate 5% of the issued PLC ordinary shares are able to
convene a General Meeting of PLC.

Unilever Annual Report and Accounts 2015GovernanceCORPORATE GOVERNANCE CONTINUED

Non-Financial Performance Indicator: In determining the level
and structure of the remuneration of the Executive Directors,
among other things, the results, the share price performance
and non-financial indicators relevant to the long-term objectives
of the Company, with due regard for the risks to which variable
remuneration may expose the enterprise, shall be taken into
account (bpp II.2.3).

Unilever places a great deal of importance on corporate
responsibility and sustainability and is keen to ensure focus on key
financial performance measures which we believe to be the drivers
of shareholder value creation and relative total shareholder return.
Unilever therefore believes that the interests of the business and
shareholders are best served by linking our long-term share plans
to such measures as described above, which are further set out in
the Directors’ Remuneration Report (pages 66 to 83), and has
therefore not included a non-financial performance indicator.

Risk Management and Control: With regard to financial reporting
risks, as advised by the Audit Committee (as described in its
report on pages 60 and 61, the NV Board believes that the risk
management and control systems provide reasonable assurance
that the financial statements do not contain any errors of material
importance and the risk management and control systems have
worked properly in 2015 (bpp II.1.5). The statements in this
paragraph are not statements in accordance with the requirements
of Section 404 of the US Sarbanes-Oxley Act of 2002.

Retention Period of Shares: The Dutch Code recommends that
shares granted to the Executive Directors without financial
consideration shall be retained for a period of at least five years
or until at least the end of the employment, if this period is shorter
(bpp II.2.5).

Our Remuneration Policy requires Executive Directors to build and
retain a personal shareholding in Unilever. In addition, Executive
Directors are required to hold 100% of the shares needed to
maintain their minimum shareholding requirement until 12 months
after they leave Unilever and 50% of these shares for 24 months
after they leave Unilever.

Severance Pay: It is our policy to set the level of severance
payments for Directors at no more than one year’s salary,
unless the Boards, on the recommendation of the Compensation
Committee, find this manifestly unreasonable given circumstances
or unless otherwise dictated by applicable law (bpp II 2.8).

Financing Preference Shares: The voting rights of the 6% and
7% cumulative preference shares issued by NV are based on
their nominal value, as prescribed by Dutch law. NV agrees
with the principle in the Dutch Code that the voting rights of any
newly issued preference shares should be based on their
economic value rather than on their nominal value (bpp IV.1.2),
but cannot unilaterally reduce voting rights of its outstanding
preference shares.

Corporate Governance Statement: NV is required to make a
statement concerning corporate governance as referred to in
article 2a of the decree on additional requirements for annual
reports (Vaststellingsbesluit nadere voorschriften inhoud
jaarverslag) with effect from 1 January 2010 (the Decree). The
information required to be included in this corporate governance
statement as described in articles 3, 3a and 3b of the Decree can
be found on our website.

www.unilever.com/corporategovernance

REQUIRED MAJORITIES
Resolutions are usually adopted at NV and PLC General
Meetings by an absolute majority of votes cast, unless there are
other requirements under the applicable laws or NV’s or PLC’s
Articles of Association. For example, there are special
requirements for resolutions relating to the alteration of the
Articles of Association, the liquidation of NV or PLC and the
alteration of the Equalisation Agreement.

A proposal to alter the Articles of Association of NV can only
be made by the NV Board. A proposal to alter the Articles of
Association of PLC can be made either by the PLC Board or by
requisition of shareholders in accordance with the UK Companies
Act 2006. Unless expressly specified to the contrary in PLC’s
Articles of Association, PLC’s Articles of Association may be
amended by a special resolution. Proposals to alter the provisions
in the Articles of Association of NV and PLC respectively relating to
the unity of management require the prior approval of meetings of
the holders of the NV special ordinary shares and the PLC deferred
stock. The Articles of Association of both NV and PLC can be found
on our website.

www.unilever.com/corporategovernance

RIGHT TO HOLD SHARES
Unilever’s constitutional documents place no limitations on the
right to hold NV and PLC shares. There are no limitations on the
right to hold or exercise voting rights on the ordinary shares of
NV and PLC imposed by Dutch or English law.

CORPORATE GOVERNANCE COMPLIANCE

GENERAL
We conduct our operations in accordance with internationally
accepted principles of good governance and best practice, whilst
ensuring compliance with the corporate governance requirements
applicable in the countries in which we operate. Unilever is subject
to corporate governance requirements (legislation, codes and/or
standards) in the Netherlands, the UK and the US and in this
section we report on our compliance against these.

MATERIAL CONTRACTS
Under the European Takeover Directive as implemented in the
Netherlands and the UK, the UK Companies Act 2006 and rules of
the US Securities and Exchange Commission, Unilever is required
to provide information on contracts and other arrangements
essential or material to the business of the Group. Other than the
Foundation Agreements referred to on page 45, we believe we do
not have any such contracts or arrangements.

THE NETHERLANDS
NV complies with almost all of the principles and best practice
provisions of the Dutch Corporate Governance Code (Dutch Code),
which is available on the Commissie Corporate Governance’s
website.

www.commissiecorporategovernance.nl

Certain large Dutch companies with a two-tier board are required
to strive for a balanced composition of their management and
supervisory boards, to the effect that at least 30% of the positions
on the management and supervisory boards are held by women
and 30% by men. The rule does not acknowledge one-tier boards,
but NV confirms that over 30% of its Directors were female and
over 30% of its Directors were male in 2015.

Statements required by the Dutch Code and explanations of the NV
compliance position are set out below.

Unilever Annual Report and Accounts 2015GovernanceTHE UNITED KINGDOM
PLC, being a company that is incorporated in the UK and listed
on the London Stock Exchange, is required to state how it has
applied the main principles and how far it has complied with the
provisions set out in the 2014 UK Corporate Governance Code
(UK Code), which is available on the Financial Reporting Council’s
(FRC) website. In 2015 PLC complied with all UK Code provisions,
with the exception of D.2.1 for a short period of time, as explained
on page 82.

www.frc.org.uk

Risk Management and Control: Our approach to risk
management and systems of internal control is in line with the
recommendations in the FRC’s revised guidance ‘Risk
management, internal control and related financial and business
reporting’ (the Risk Guidance). It is Unilever’s practice to review
acquired companies’ governance procedures after acquisition
and to align them to the Group’s governance procedures as soon
as is practicable.

Greenhouse Gas (GHG) Emissions: In line with the Companies Act
2006 (Strategic Report and Directors’ Report) Regulations 2013
our greenhouse gas performance is set out below. Since 2008 we
report our CO2 emissions in accordance with the Greenhouse Gas
(GHG) Protocol Corporate Accounting and Reporting Standard
(GHG Protocol) to calculate emissions of carbon dioxide from the
combustion of fuels and the operation of facilities (Scope 1) and
from purchased electricity, heat, steam and cooling (Scope 2) for
our manufacturing facilities. Changes to the GHG Protocol for
Scope 2 reporting during this reporting year will be implemented
in subsequent years.

Carbon emission factors are used to convert energy used in
manufacturing to emissions of CO2. Carbon emission factors for
fuels are provided by the Intergovernmental Panel on Climate
Change (IPCC).

Carbon emission factors for electricity reflect the country or
sub-region where each manufacturing site is located and are
provided by the International Energy Agency (IEA) and local
regulatory authorities, for example the United States
Environmental Protection Agency (US EPA). We have selected
an intensity ratio based on production; this aligns with our
long-standing reporting of manufacturing performance.

The GHG data relates to emissions during the 12-month period
from 1 October 2014 to 30 September 2015. This period is different
from that for which the remainder of the Directors’ Report is
prepared (which is the calendar year 2015).

EMISSIONS OF CO2 FROM MANUFACTURING,
1 OCTOBER 2014 TO 30 SEPTEMBER 2015 (1 OCTOBER 2013
TO 30 SEPTEMBER 2014)

Our GHG data does not include minor emissions sources that are
beyond our boundary of operational control or that are not
material. For example, emissions of CO2 from energy used in our
offices and warehouses are excluded, although we continue to
drive improvements in these areas through our USLP targets. The
data also excludes Scope 3 emissions (including consumer use of
our products) which we report as part of our USLP.

www.unilever.com/sustainable-living

www.unilever.com/ara2015/downloads

Employee Involvement and Communication: Unilever’s UK
companies maintain formal processes to inform, consult and
involve employees and their representatives. A National
Consultative Forum comprising employees and management
representatives meets regularly to provide a forum for discussing
issues relating to all Unilever sites in the United Kingdom. We
recognise collective bargaining on a number of sites and engage
with employees via the Sourcing Unit Forum, which includes
national officer representation from the three recognised trade
unions. A European Works Council, embracing employee and
management representatives from countries within Europe, has
been in existence for several years and provides a forum for
discussing issues that extend across national boundaries.

The Directors’ Reports of the United Kingdom operating
companies contain more information about how they have
communicated with their employees during 2015.

Equal Opportunities and Diversity: In accordance with our
Code of Business Principles, Unilever aims to ensure that
applications for employment from everyone are given full and
fair consideration and that everyone is given access to training,
development and career opportunities. Every effort is made to
retrain and support employees who become disabled while
working within the Group.

Independent Auditors and Disclosure of Information to Auditors:
To the best of each of the Directors’ knowledge and belief, and
having made appropriate enquiries, all information relevant to
enabling the auditors to provide their opinions on PLC’s
consolidated and parent company accounts has been provided.
Each of the Directors has taken all reasonable steps to ensure
their awareness of any relevant audit information and to establish
that Unilever PLC’s auditors are aware of any such information.

Scope 1
Scope 2
Total Scope 1 & 2
Intensity ratio

852,672 tonnes CO2 (929,803 tonnes CO2)#
918,301 tonnes CO2 (920,483 tonnes CO2)#
1,770,973 tonnes CO2
88.49 kg CO2 per tonne of production+
(92.14 kg# CO2 per tonne of production+)

+ (1,850,286 tonnes CO2

+)#

# Prior year restated to exclude third party site.
+ PwC assured. For further details and the basis of preparation see our website.

Emissions data includes material sources of Scope 1 and 2
emissions that have been subject to external assurance, ie
emissions of CO2 from energy used in manufacturing. Emissions
from the combustion of biogenic fuels (biomass, fuel crops etc) at
our manufacturing sites are reported separately to other Scope 1
and 2 emissions, as recommended by the GHG Protocol, and
excluded from our intensity ratio calculation.

Unilever Annual Report and Accounts 2015GovernanceCORPORATE GOVERNANCE CONTINUED

Risk Management and Control: Following a review by the
Disclosure Committee, Audit Committee and Boards, the CEO
and the CFO concluded that the design and operation of the
Group’s disclosure controls and procedures, including those
defined in the United States Securities Exchange Act of 1934 –
Rule 13a – 15(e), as at 31 December 2015 were effective, and that
subsequently until 17 February 2016 (the date of the approval of the
Annual Report and Accounts by the Boards) there have been no
significant changes in the Group’s internal controls, or in other
factors that could significantly affect those controls.

Unilever is required by Section 404 of the US Sarbanes-Oxley
Act of 2002 to report on the effectiveness of its internal control
over financial reporting. This requirement will be reported on
separately and will form part of Unilever’s Annual Report on
Form 20-F.

THE UNITED STATES
Both NV and PLC are listed on the New York Stock Exchange
(NYSE). As such, both companies must comply with the
requirements of US legislation, such as the Sarbanes-Oxley Act
of 2002, regulations enacted under US securities laws and the
Listing Standards of the NYSE, that are applicable to foreign
private issuers, copies of which are available on their websites.

www.sec.gov

www.nyse.com

We are substantially compliant with the Listing Standards of the
NYSE applicable to foreign private issuers except as set out below.

We are required to disclose any significant ways in which our
corporate governance practices differ from those typically
followed by US companies listed on the NYSE. Our corporate
governance practices are primarily based on the requirements
of the UK Listing Rules, the UK Code and the Dutch Code but
substantially conform to those required of US companies listed
on the NYSE. The only significant way in which our corporate
governance practices differ from those followed by domestic
companies under Section 303A Corporate Governance Standards
of the NYSE is that the NYSE rules require that shareholders must
be given the opportunity to vote on all equity-compensation plans
and material revisions thereto, with certain limited exemptions.
The UK Listing Rules require shareholder approval of
equity-compensation plans only if new or treasury shares are
issued for the purpose of satisfying obligations under the plan or
if the plan is a long-term incentive plan in which a director may
participate. Amendments to plans approved by shareholders
generally only require approval if they are to the advantage of the
plan participants. Furthermore, Dutch law and NV’s Articles of
Association require shareholder approval of equity-compensation
plans only if the Executive Directors are able to participate in such
plans. Under Dutch law, shareholder approval is not required for
material revisions to equity-compensation plans unless the
Executive Directors participate in a plan and the plan does not
contain its own procedure for revisions.

Attention is drawn to the Report of the Audit Committee on pages
60 and 61. In addition, further details about our corporate
governance are provided in the document entitled ‘The Governance
of Unilever’ which can be found on our website.

All senior executives and senior financial officers have declared
their understanding of and compliance with Unilever’s Code of
Business Principles and the related Code Policies. No waiver from
any provision of the Code of Business Principles or Code Policies
was granted in 2015 to any of the persons falling within the scope
of the SEC requirements. No material amendments were made to
the Code of Business Principles or related Code Policies in 2015.
Our Code of Business Principles can be found on our website.

www.unilever.com/corporategovernance

Unilever Annual Report and Accounts 2015GovernanceRISKS

OUR RISK APPETITE AND
APPROACH TO RISK MANAGEMENT
Risk management is integral to Unilever’s strategy and to the
achievement of Unilever’s long-term goals. Our success as an
organisation depends on our ability to identify and exploit the
opportunities generated by our business and the markets we
are in. In doing this we take an embedded approach to risk
management which puts risk and opportunity assessment
at the core of the leadership team agenda, which is where
we believe it should be.

Unilever adopts a risk profile that is aligned to our vision to
accelerate growth in the business while reducing our
environmental footprint and increasing our positive social impact.
Our available capital and other resources are applied to underpin
our priorities. We aim to maintain a strong single A credit rating
on a long-term basis.

Our approach to risk management is designed to provide
reasonable, but not absolute, assurance that our assets are
safeguarded, the risks facing the business are being assessed and
mitigated and all information that may be required to be disclosed
is reported to Unilever’s senior management including, where
appropriate, the Chief Executive Officer and Chief Financial Officer.

ORGANISATION
The Unilever Boards assume overall accountability for the
management of risk and for reviewing the effectiveness of
Unilever’s risk management and internal control systems.

The Boards have established a clear organisational structure
with well defined accountabilities for the principal risks that
Unilever faces in the short, medium and long term. This
organisational structure and distribution of accountabilities
and responsibilities ensures that every country in which we
operate has specific resources and processes for risk review
and risk mitigation. This is supported by the Unilever Leadership
Executive, which takes active responsibility for focusing on the
principal areas of risk to Unilever. The Boards regularly review
these risk areas, including consideration of environmental, social
and governance matters, and retain responsibility for determining
the nature and extent of the significant risks that Unilever is
prepared to take to achieve its strategic objectives.

FOUNDATION AND PRINCIPLES
Unilever’s approach to doing business is framed by our Purpose.
Our Code of Business Principles sets out the standards of
behaviour that we expect all employees to adhere to. Day-to-day
responsibility for ensuring these principles are applied throughout
Unilever rests with senior management across categories,
geographies and functions. A network of Business Integrity
Officers and Committees supports the activities necessary to
communicate the Code, deliver training, maintain processes and
procedures (including support lines) to report and respond to
alleged breaches, and to capture and communicate learnings.

We have a framework of Code Policies that underpin the Code
of Business Principles and set out the non-negotiable standards
of behaviour expected from all our employees.

For each of our principal risks we have a risk management
framework detailing the controls we have in place and who is
responsible for both managing the overall risk and the individual
controls mitigating that risk.

Unilever’s functional standards define mandatory requirements
across a range of specialist areas such as health and safety,
accounting and reporting and financial risk management.

PROCESSES
Unilever operates a wide range of processes and activities across all
its operations covering strategy, planning, execution and performance
management. Risk management is integrated into every stage of this
business cycle. These procedures are formalised and documented
and are increasingly being centralised and automated into
transactional and other information technology systems.

ASSURANCE AND RE-ASSURANCE
Assurance on compliance with the Code of Business Principles
and all of our Code Policies is obtained annually from Unilever
management via a formal Code declaration. In addition, there
are specialist compliance programmes which run during the year
and vary depending on the business priorities. These specialist
compliance programmes supplement the Code declaration.
Our Corporate Audit function plays a vital role in providing to both
management and the Boards an objective and independent review
of the effectiveness of risk management and internal control
systems throughout Unilever.

BOARDS’ ASSESSMENT OF COMPLIANCE
WITH THE RISK MANAGEMENT FRAMEWORKS
The Boards, advised by the Committees where appropriate,
regularly review the significant risks and decisions that could have
a material impact on Unilever. These reviews consider the level of
risk that Unilever is prepared to take in pursuit of the business
strategy and the effectiveness of the management controls in
place to mitigate the risk exposure.

The Boards, through the Audit Committee, have reviewed the
assessment of risks, internal controls and disclosure controls and
procedures in operation within Unilever. They have also considered
the effectiveness of any remedial actions taken for the year covered
by this report and up to the date of its approval by the Boards.

Details of the activities of the Audit Committee in relation to
this can be found in the Report of the Audit Committee on pages
60 and 61.

Further statements on compliance with the specific risk
management and control requirements in the Dutch Corporate
Governance Code, the UK Corporate Governance Code, the US
Securities Exchange Act (1934) and the Sarbanes-Oxley (2002)
Act can be found on pages 50, 51 and 52.

VIABILITY STATEMENT
The activities of the Group, together with the factors likely to affect
its future development, performance, the financial position of the
Group, its cash flows, liquidity position and borrowing facilities are
described in the Strategic Report on pages 2 to 39. In addition, we
describe in notes 15 to 18 on pages 115 to 129 the Group’s
objectives, policies and processes for managing its capital, its
financial risk management objectives, details of its financial
instruments and hedging activities and its exposures to credit
and liquidity risk.

The Directors have carried out a robust assessment of the
principal risks facing the Group, including those that would
threaten its business model, future performance, solvency or
liquidity. These risks and the ways they are being managed and
mitigated by a wide range of actions are summarised on pages
54 to 57.

Unilever Annual Report and Accounts 2015GovernanceRISKS CONTINUED

Taking account of the Group’s position and principal risks, the
Directors assess the prospects of the Group by reviewing and
discussing at least once each year the annual forecast, the
three-year strategic plan and the Group risk framework.
Throughout the year the Directors review and discuss the potential
impact of each principal risk as well as the risk impact of any
major events or transactions. A three-year period is considered
appropriate for this assessment because:
•
•

it is the period covered by the strategic plan; and
it enables a high level of confidence, even in extreme adverse
events, due to a number of factors such as:
– the Group has considerable financial resources together

with established business relationships with many
customers and suppliers in countries throughout the world;

– high cash generation by the Group’s operations;
– flexibility of cash outflow including significant marketing

and capital expenditure; and

– the Group’s diverse product and geographical operations.

Based on the results of this analysis, the Directors believe that
the Group is well placed to manage its business risks successfully
despite the current uncertain outlook. The Directors have a
reasonable expectation that the Group will be able to continue
in operation and meet its liabilities as they fall due over the
three-year period of their assessment.

PRINCIPAL RISK FACTORS
Our business is subject to risks and uncertainties. On the following
pages we have identified the risks that we regard as the most
relevant to our business. These are the risks that we see as most
material to Unilever’s business and performance at this time.
There may be other risks that could emerge in the future. We have
also commented below on certain mitigating actions that we
believe help us to manage these risks. However, we may not be
successful in deploying some or all of these mitigating actions.
If the circumstances in these risks occur or are not successfully
mitigated, our cash flow, operating results, financial position,
business and reputation could be materially adversely affected.
In addition, risks and uncertainties could cause actual results to
vary from those described, which may include forward-looking
statements, or could impact on our ability to meet our targets or
be detrimental to our profitability or reputation.

DESCRIPTION OF RISK

WHAT WE ARE DOING TO MANAGE THE RISK

BRAND PREFERENCE
As a branded goods business, Unilever’s success depends
on the value and relevance of our brands and products to
consumers around the world and on our ability to innovate
and remain competitive.

Consumer tastes, preferences and behaviours are constantly
changing and Unilever’s ability to anticipate and respond to these
changes and to continue to differentiate our brands and products
is vital to our business.

We are dependent on creating innovative products that continue
to meet the needs of our consumers. If we are unable to innovate
effectively, Unilever’s sales or margins could be materially
adversely affected.

PORTFOLIO MANAGEMENT
Unilever’s strategic investment choices will affect the long-term
growth and profits of our business.

Unilever’s growth and profitability are determined by our portfolio
of categories, geographies and channels and how these evolve
over time. If Unilever does not make optimal strategic investment
decisions then opportunities for growth and improved margin
could be missed.

SUSTAINABILITY
The success of our business depends on finding sustainable
solutions to support long-term growth.

Unilever’s vision to accelerate growth in the business while
reducing our environmental footprint and increasing our positive
social impact will require more sustainable ways of doing business.
This means reducing our environmental footprint while increasing
the positive social benefits of Unilever’s activities. We are
dependent on the efforts of partners and various certification
bodies to achieve our sustainability goals. There can be no
assurance that sustainable business solutions will be developed
and failure to do so could limit Unilever’s growth and profit potential
and damage our corporate reputation.

We continuously monitor external market trends and collate
consumer, customer and shopper insight in order to develop
category and brand strategies.

Our strategy focuses on investing in markets and segments which
we identify as attractive because we have already built, or are
confident that we can build, competitive advantage.

Our Research and Development function actively searches for ways
in which to translate the trends in consumer preference and taste
into new technologies for incorporation into future products.

Our innovation management process deploys tools, technologies and
resources to convert category strategies into projects and category
plans, develop products and relevant brand communication and
successfully roll out new products to our consumers.

Our Compass strategy and our business plans are designed to
ensure that resources are prioritised towards those categories
and markets having the greatest long-term potential for Unilever.

Our acquisition activity is driven by our portfolio strategy with
a clear, defined evaluation process.

The Unilever Sustainable Living Plan sets clear long-term
commitments to improve health and well-being, reduce
environmental impact and enhance livelihoods. Underpinning
these are targets in areas such as hygiene, nutrition, sustainable
sourcing, fairness in the workplace, opportunities for women and
inclusive business as well as greenhouse gas emissions, water and
waste. These targets and more sustainable ways of operating are
being integrated into Unilever’s day-to-day business.

Progress towards the Unilever Sustainable Living Plan is
monitored by the Unilever Leadership Executive and the Boards.
The Unilever Sustainable Living Plan Council, comprising six
external specialists in sustainability, guides and critiques the
development of our strategy.

Unilever Annual Report and Accounts 2015GovernanceDESCRIPTION OF RISK

WHAT WE ARE DOING TO MANAGE THE RISK

CUSTOMER RELATIONSHIPS
Successful customer relationships are vital to our business and
continued growth.

Maintaining strong relationships with our existing customers and
building relationships with new customers who serve changing
shopper habits are necessary to ensure our brands are well
presented to our consumers and available for purchase at all times.

The strength of our customer relationships also affects our ability
to obtain pricing and competitive trade terms. Failure to maintain
strong relationships with customers could negatively impact the
terms of business with the affected customers and reduce the
availability of our products to consumers.

TALENT & ORGANISATION
A skilled workforce and agile organisation are essential for the
continued success of our business.

Our ability to attract, develop, organise and retain the right number
of appropriately qualified people is critical if we are to compete
and grow effectively.

This is especially true in our key emerging markets where there
can be a high level of competition for a limited talent pool. The loss
of management or other key personnel or the inability to identify,
attract and retain qualified personnel could make it difficult to
manage the business and could adversely affect operations and
financial results.

We build and maintain trading relationships across a broad
spectrum of channels ranging from centrally managed
multinational customers through to small traders accessed
via distributors in many developing countries. We identify changing
shopper habits and build relationships with new customers, such as
those serving the e-commerce channel.

We develop joint business plans with our key customers that
include detailed investment plans and customer service objectives
and we regularly monitor progress.

We have developed capabilities for customer sales and outlet
design which enable us to find new ways to improve customer
performance and enhance our customer relationships. We invest
in technology to optimise order and stock management processes
for our distributive trade customers.

Resource committees have been established and implemented
throughout our business. These committees have responsibility
for identifying future skills and capability needs, developing career
paths and identifying the key talent and leaders of the future.

We have an integrated management development process which
includes regular performance reviews underpinned by a common
set of leadership behaviours, skills and competencies.

We have targeted programmes to attract and retain top talent
and we actively monitor our performance in retaining talent
within Unilever.

We regularly review our ways of working and organisation structures
to ensure that we drive speed and simplicity through our business to
remain agile and responsive to marketplace trends.

SUPPLY CHAIN
Our business depends on purchasing materials, efficient
manufacturing and the timely distribution of products
to our customers.

Our supply chain network is exposed to potentially adverse
events such as physical disruptions, environmental and industrial
accidents or bankruptcy of a key supplier which could impact
our ability to deliver orders to our customers.

We have contingency plans designed to enable us to secure
alternative key material supplies at short notice, to transfer
or share production between manufacturing sites and to use
substitute materials in our product formulations and recipes.

These contingency plans also extend to an ability to intervene
directly to support a key supplier should it for any reason find itself
in difficulty or be at risk of negatively affecting a Unilever product.

The cost of our products can be significantly affected by the cost
of the underlying commodities and materials from which they
are made. Fluctuations in these costs cannot always be passed
on to the consumer through pricing.

We have policies and procedures designed to ensure the health
and safety of our employees and the products in our facilities, and
to deal with major incidents including business continuity and
disaster recovery.

SAFE AND HIGH QUALITY PRODUCTS
The quality and safety of our products are of paramount
importance for our brands and our reputation.

The risk that raw materials are accidentally or maliciously
contaminated throughout the supply chain or that other product
defects occur due to human error, equipment failure or other
factors cannot be excluded.

Commodity price risk is actively managed through forward buying
of traded commodities and other hedging mechanisms. Trends are
monitored and modelled regularly and integrated into our
forecasting process.

Our product quality processes and controls are comprehensive,
from product design to customer shelf. They are verified annually,
and regularly monitored through performance indicators that drive
continuous improvement activities. Our key suppliers are externally
certified and the quality of material received is regularly monitored
to ensure that it meets the rigorous quality standards that our
products require.

In the event of an incident relating to the safety of our consumers
or the quality of our products, incident management teams are
activated in the affected markets under the direction of our product
quality, science, and communications experts, to ensure timely and
effective market place action.

Unilever Annual Report and Accounts 2015GovernanceRISKS CONTINUED

DESCRIPTION OF RISK

WHAT WE ARE DOING TO MANAGE THE RISK

SYSTEMS AND INFORMATION
Unilever’s operations are increasingly dependent on IT systems
and the management of information.

Increasing digital interactions with customers, suppliers and
consumers place ever greater emphasis on the need for secure and
reliable IT systems and infrastructure and careful management of
the information that is in our possession.

Disruption of our IT systems could inhibit our business operations
in a number of ways, including disruption to sales, production and
cash flows, ultimately impacting our results.

There is also a threat from unauthorised access and misuse of
sensitive information. Unilever’s information systems could be
subject to unauthorised access or the mistaken disclosure of
information which disrupts Unilever’s business and/or leads to
loss of assets.

BUSINESS TRANSFORMATION
Successful execution of business transformation projects is
key to delivering their intended business benefits and avoiding
disruption to other business activities.

Unilever is continually engaged in major change projects, including
acquisitions and disposals and outsourcing, to drive continuous
improvement in our business and to strengthen our portfolio
and capabilities.

Failure to execute such transactions or change projects
successfully, or performance issues with third party outsourced
providers on which we are dependent, could result in under-
delivery of the expected benefits. Furthermore, disruption may
be caused in other parts of the business.

EXTERNAL ECONOMIC AND POLITICAL RISKS AND
NATURAL DISASTERS
Unilever operates around the globe and is exposed to a range
of external economic and political risks and natural disasters
that may affect the execution of our strategy or the running of
our operations.

Adverse economic conditions may result in reduced consumer
demand for our products, and may affect one or more countries
within a region, or may extend globally.

Government actions such as fiscal stimulus and price controls can
impact on the growth and profitability of our local operations.

Social and political upheavals and natural disasters can disrupt
sales and operations.

In 2015, more than half of Unilever’s turnover came from emerging
markets including Brazil, India, Indonesia, Turkey, South Africa,
China, Mexico and Russia. These markets offer greater growth
opportunities but also expose Unilever to related economic,
political and social volatility.

TREASURY AND PENSIONS
Unilever is exposed to a variety of external financial risks in
relation to Treasury and Pensions.

The relative values of currencies can fluctuate widely and could
have a significant impact on business results. Further, because
Unilever consolidates its financial statements in euros it is subject
to exchange risks associated with the translation of the underlying
net assets and earnings of its foreign subsidiaries.

Hardware that runs and manages core operating data is fully
backed up with separate contingency systems to provide real
time back-up operations should they ever be required.

We maintain a global system for the control and reporting of
access to our critical IT systems. This is supported by an annual
programme of testing of access controls.

We have policies covering the protection of both business
and personal information, as well as the use of IT systems and
applications by our employees. Our employees are trained to
understand these requirements.

We have standardised ways of hosting information on our
public websites and have systems in place to monitor compliance
with appropriate privacy laws and regulations, and with our
own policies.

All acquisitions, disposals and global restructuring projects
are sponsored by a member of the Unilever Leadership Executive.
Regular progress updates are provided to the Unilever
Leadership Executive.

Sound project disciplines are used in all merger, acquisitions,
restructuring and outsourcing projects and these projects are
resourced by dedicated and appropriately qualified personnel.
The performance of third party outsourced providers is kept under
constant review, with potential disruption limited to the time and
cost required to install alternative providers.

Unilever also monitors the volume of change programmes under
way in an effort to stagger the impact on current operations and
to ensure minimal disruption.

The breadth of Unilever’s portfolio and our geographic reach
help to mitigate our exposure to any particular localised risk
to an extent. Our flexible business model allows us to adapt
our portfolio and respond quickly to develop new offerings
that suit consumers’ and customers’ changing needs during
economic downturns.

We regularly update our forecast of business results and cash
flows and, where necessary, rebalance investment priorities.

We have continuity planning designed to deal with crisis
management in the event of political and social events and
natural disasters.

We believe that many years of exposure to emerging markets
have given us experience of operating and developing our business
successfully during periods of economic, political or social change.

Currency exposures are managed within prescribed limits and by
the use of forward foreign exchange contracts. Further, operating
companies borrow in local currency except where inhibited by
local regulations, lack of local liquidity or local market conditions.
We also hedge some of our exposures through the use of foreign
currency borrowing or forward exchange contracts.

Unilever Annual Report and Accounts 2015GovernanceDESCRIPTION OF RISK

WHAT WE ARE DOING TO MANAGE THE RISK

TREASURY AND PENSIONS (CONTINUED)
We are also subject to the imposition of exchange controls by
individual countries which could limit our ability to import materials
paid in foreign currency or to remit dividends to the parent company.

Currency rates, along with demand cycles, can also result in
significant swings in the prices of the raw materials needed
to produce our goods.

Unilever may face liquidity risk, ie difficulty in meeting its obligations,
associated with its financial liabilities. A material and sustained
shortfall in our cash flow could undermine Unilever’s credit rating,
impair investor confidence and also restrict Unilever’s ability to raise
funds.

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.

In times of financial market volatility, we are also potentially exposed
to counter-party risks with banks, suppliers and customers.

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.

ETHICAL
Acting in an ethical manner, consistent with the expectations
of customers, consumers and other stakeholders, is essential
for the protection of the reputation of Unilever and its brands.

Unilever’s brands and reputation are valuable assets and the
way in which we operate, contribute to society and engage with
the world around us is always under scrutiny both internally
and externally. Despite the commitment of Unilever to ethical
business and the steps we take to adhere to this commitment,
there remains a risk that activities or events cause us to fall
short of our desired standard, resulting in damage to Unilever’s
corporate reputation and business results.

LEGAL AND REGULATORY
Compliance with laws and regulations is an essential part
of Unilever’s business operations.

Unilever is subject to national and regional laws and regulations in
such diverse areas as product safety, product claims, trademarks,
copyright, patents, competition, employee health and safety, the
environment, corporate governance, listing and disclosure,
employment and taxes.

Failure to comply with laws and regulations could expose Unilever
to civil and/or criminal actions leading to damages, fines and
criminal sanctions against us and/or our employees with possible
consequences for our corporate reputation.

Changes to laws and regulations could have a material impact on
the cost of doing business. Tax, in particular, is a complex area
where laws and their interpretation are changing regularly, leading
to the risk of unexpected tax exposures. International tax reform
remains a key focus of attention with the OECD’s Base Erosion &
Profit Shifting project and the EU’s action plan for fair and efficient
corporation taxation.

Our interest rate management approach aims to achieve an optimal
balance between fixed and floating rate interest exposures on
expected net debt.

We seek to manage our liquidity requirements by maintaining
access to global debt markets through short-term and long-term
debt programmes. In addition, we have high committed credit
facilities for general corporate purposes.

Group treasury regularly monitors exposure to our banks, tightening
counter-party limits where appropriate. Unilever actively manages
its banking exposures on a daily basis.

We regularly assess and monitor counter-party risk in our
customers and take appropriate action to manage our exposures.

Our pension investment standards require us to invest across
a range of equities, bonds, property, alternative assets and cash
such that the failure of any single investment will not have a
material impact on the overall value of assets.

The majority of our assets, including those held in our ‘pooled’
investment vehicle, Univest, are managed by external fund
managers and are regularly monitored by pension trustees
and central pensions and investment teams.

Further information on financial instruments and capital and
treasury risk management is included in note 16 on pages
120 to 125.

Our Code of Business Principles and our Code Policies govern the
behaviour of our employees, suppliers, distributors and other third
parties who work with us.

Our processes for identifying and resolving breaches of our Code of
Business Principles and our Code Policies are clearly defined and
regularly communicated throughout Unilever. Data relating to such
breaches is reviewed by the Unilever Leadership Executive and by
relevant Board committees and helps to determine the allocation
of resources for future policy development, process improvement,
training and awareness initiatives.

Unilever is committed to complying with the laws and regulations
of the countries in which we operate. In specialist areas the relevant
teams at global, regional or local levels are responsible for setting
detailed standards and ensuring that all employees are aware of and
comply with regulations and laws specific and relevant to their roles.

Our legal and regulatory specialists are heavily involved in
monitoring and reviewing our practices to provide reasonable
assurance that we remain aware of and in line with all relevant
laws and legal obligations.

Our Global Tax Principles provide overarching governance and we
have a Tax Risk Framework in place which sets out the controls
established to assess and monitor tax risk for direct and indirect
taxes. We monitor proposed changes in taxation legislation and
ensure these are taken into account when we consider our future
business plans.

Unilever Annual Report and Accounts 2015GovernanceBIOGRAPHIES

BOARD OF DIRECTORS

MICHAEL TRESCHOW
Chairman

ANN FUDGE
Vice-Chairman and Senior
Independent Director

PAUL POLMAN
Chief Executive Officer
Executive Director

NILS ANDERSEN
Non-Executive Director

Nationality Swedish Age 72, Male
Appointed Chairman May 2007
Committee membership: Nominating
and Corporate Governance;
Compensation
Key areas of experience: Consumer,
science & technology
Current external appointments:
Eli Lilly and Company (European
Advisory Board member); The
Wallenberg Foundation AB
Previous relevant experience:
Telefonaktiebolaget L M Ericsson
(Chairman); AB Electrolux (Chairman);
Confederation of Swedish Enterprise
(Chairman); ABB Group (NED);
AB Electrolux (CEO)

Nationality American Age 64, Female
Appointed May 2009
Committee membership: Compensation
(Chairman)
Key areas of experience: Consumer,
sales & marketing
Current external appointments:
Novartis AG (NED); US Programs
Advisory Panel of Gates Foundation
(Chairman)
Previous relevant experience:
General Electric Co. (NED); Marriott
International (NED); Young & Rubicam
(Chairman and CEO)

Nationality Dutch Age 59, Male
Appointed CEO January 2009
Appointed Director October 2008
Key areas of experience:
Finance, consumer, sales & marketing
Current external appointments:
The Dow Chemical Company (NED);
World Business Council for Sustainable
Development (Chairman, Executive
Committee); UN Global Compact (Board
member); UK Business Ambassador
Previous relevant experience:
Procter & Gamble Co. (Group President,
Europe); Nestlé S.A. (CFO); Alcon Inc
(Director)

Nationality Danish Age 57, Male
Appointed April 2015
Committee membership: Compensation
Key areas of experience: Consumer,
sales & marketing
Current external appointments:
A.P. Moller – Maersk A/S (Group CEO);
Dansk Supermarket Group (Chairman);
European Round Table of Industrialists
(Vice-Chairman); member of the
Committee on Business Policies,
Confederation of Danish Industry
Previous relevant experience: Inditex
(member of the Board of Directors);
Carlsberg A/S and Carlsberg Breweries
A/S/ (CEO); Danske Sukkerfabrikker;
Tuborg International; Union Cervecera;
Hannen Brauerei; Hero Group

LAURA CHA
Non-Executive Director

VITTORIO COLAO
Non-Executive Director

PROFESSOR LOUISE FRESCO
Non-Executive Director

JUDITH HARTMANN
Non-Executive Director

Nationality Chinese Age 66, Female
Appointed May 2013
Committee membership: Corporate
Responsibility; Nominating and
Corporate Governance
Key areas of experience: Finance,
government, legal & regulatory affairs
Current external appointments:
HSBC Holdings plc (Independent NED);
China Telecom Corporation Limited
(Independent NED); The Hongkong and
Shanghai Banking Corporation
(Non-executive deputy Chairman);
Foundation Asset Management AB
(Senior international adviser)
Previous relevant experience:
Securities and Futures Commission,
Hong Kong; China Securities Regulatory
Commission

Nationality Italian Age 54, Male
Appointed July 2015
Committee membership: Compensation
Key areas of experience: Consumer,
science & technology, sales & marketing
Current external appointments:
Vodafone Group Plc (CEO); Bocconi
University (International Advisory Board);
Harvard Business School (Dean’s
Advisory Board); European Round Table
of Industrialists (Vice-Chairman);
Oxford Martin School (Advisor)
Previous relevant experience: RCS
MediaGroup (CEO); McKinsey & Co
(Partner); Finmeccanica Group (NED);
RAS Insurance NED)

Nationality Dutch Age 64, Female
Appointed May 2009
Committee membership:
Corporate Responsibility (Chairman)
Key areas of experience:
Science & technology, academia
Current external appointments:
Wageningen UR (President of the
Executive Board)
Previous relevant experience: Rabobank
(Supervisory Director); Agriculture
Department of the UN’s Food and
Agriculture Organisation (Assistant
director-general for agriculture)

Nationality Austrian Age 46, Female
Appointed April 2015
Committee membership: Audit
Key areas of experience: Finance
Current external appointments:
Suez Environment (NED); Engie (CFO)
Previous relevant experience:
Bertelsmann SE & Co. KGaA (CFO);
General Electric; The Walt Disney
Company; RTL Group (NED); Penguin
Random House (NED); Gruner + Jahr
GmbH & Co KG (NED)

MARY MA
Non-Executive Director

HIXONIA NYASULU
Non-Executive Director

JOHN RISHTON
Non-Executive Director

FEIKE SIJBESMA
Non-Executive Director

Nationality Chinese Age 63, Female
Appointed May 2013
Committee membership: Audit
Key areas of experience:
Finance, consumer, science &
technology
Current external appointments:
Boyu Capital (Chairman); MXZ
Investment Limited (Director); Lenovo
Group Limited (NED); Securities and
Futures Commission in Hong Kong
(NED); Stelux Holdings International
Limited (NED)
Previous relevant experience:
TPG Capital (Partner); TPG China
(Co-Chairman)

Nationality South African Age 61, Female
Appointed May 2007
Committee membership: Audit
Key areas of experience:
Sales & marketing
Current external appointments: Sasol
Oil (Pty) Limited (Director); Sequel
Property Investments (Beneficiary)
Previous relevant experience: Sasol
Ltd (Chairman); Ithala Development
Finance Corporation (Chairman);
Nedbank Limited (Deputy Chairman);
AVI Ltd (NED)

Nationality British Age 58, Male
Appointed May 2013
Committee membership: Audit
(Chairman)
Key areas of experience:
Finance, consumer, sales & marketing
Previous relevant experience:
Rolls-Royce Holdings plc (CEO); Royal
Ahold N.V. (CEO, President and CFO);
ICA AB (NED); Allied Domecq plc (NED);
AeroSpace and Defence Trade
Organisation (ASD) (Board member);
British Airways plc (CFO)

Nationality Dutch Age 56, Male
Appointed November 2014.
Committee membership: Corporate
Responsibility; Nominating and
Corporate Governance (Chairman)
Key areas of experience:
Finance, consumer, science &
technology, sales and marketing
Current external appointments:
Royal DSM N.V. (CEO and Chairman of
the Managing Board); De Nederlandsche
Bank (Member of the Supervisory
Board); CEFIC (European Chemical
Industry Council) (Board member)
Previous relevant experience:
Supervisory board of DSM Netherlands
(Chairman); Dutch Genomics Initiative
(NGI) (Member); Utrecht University
(Board member); Dutch Cancer Institute
(NKI/AVL) (Board member)

DIRECTORS’ KEY AREAS OF EXPERTISE

Finance
Consumer
Science & technology
Sales & marketing
Academia / Gov. / Legal / Regulatory Affairs

6
8
5
7
2

Unilever Annual Report and Accounts 2015GovernanceUNILEVER LEADERSHIP EXECUTIVE (ULE)

FOR PAUL POLMAN SEE PAGE 58

DOUG BAILLIE*
Chief Human Resources Officer

DAVID BLANCHARD
Chief R&D Officer

KEVIN HAVELOCK
President, Refreshment

ALAN JOPE
President, Personal Care

Nationality British Age 60, Male
Appointed to ULE May 2008
Joined Unilever 1978
Appointed Chief HR Officer
February 2011
Previous Unilever posts include:
Western Europe (President); Hindustan
Unilever Limited (CEO); South Asia
(Group VP); Africa, Middle East and
Turkey (Group VP)
Current external appointments:
Synergos (Board member); MasterCard
Foundation (Board member)

Nationality British Age 51, Male
Appointed to ULE January 2013
Joined Unilever 1986
Previous Unilever posts include:
Unilever Research & Development
(SVP); Unilever Canada Inc. (Chairman);
Foods America (SVP Marketing
Operations); Global Dressings (VP R&D);
Margarine and Spreads (Director of
Product Development)
Current external appointments: Ingleby
Farms and Forests (NED)

Nationality British Age 58, Male
Appointed to ULE November 2011
Joined Unilever 1985
Previous Unilever posts include:
Global Ice Cream Category (EVP);
Unilever North America and Caribbean
(EVP); Unilever France (Président
Directeur Général); Unilever Arabia
(Chairman); Unilever UK (Chairman)
Current External Appointments: Pepsi/
Lipton JV (Co-Chairman)

Nationality British Age 51, Male
Appointed to ULE November 2011
Joined Unilever 1985
Previous Unilever posts include:
Unilever Russia, Africa and Middle East
(President); Unilever North Asia
(President); SCC and Dressings (Global
Category Leader); Home and Personal
Care business in North America
(President)

KEES KRUYTHOFF
President, North America

NITIN PARANJPE
President, Home Care

GRAEME PITKETHLY
Chief Financial Officer

MARC ENGEL
Chief Supply Chain Officer

Nationality Dutch Age 47, Male
Appointed to ULE November 2011
Joined Unilever 1993
Previous Unilever posts include: Brazil
(EVP); Unilever Foods South Africa
(CEO); Unilever Bestfoods Asia (SVP and
Board member)
Current external appointments: Pepsi/
Lipton JV (Board member); Enactus
(Chairman); USA Grocery Manufacturing
Association (Board member)

Nationality Indian Age 52, Male
Appointed to ULE October 2013
Joined Unilever 1987
Previous Unilever posts include:
Hindustan Unilever Limited (CEO);
Home and Personal Care, India
(Executive Director); Home Care (VP);
Fabric Wash (Category Head); Laundry
and Household Cleaning, Asia (Regional
Brand Director)

Nationality British Age 49, Male
Appointed to ULE October 2015
Joined Unilever 2002
Previous Unilever posts include:
Unilever UK and Ireland (EVP and
General Manager); Finance-Global
Markets (EVP); Group Treasurer; Head
of Mergers & Acquisitions; Unilever
Indonesia (CFO); Group Chief Accountant

Nationality Dutch Age 49, Male
Appointed to ULE January 2016
Joined Unilever 1990
Previous Unilever posts include:
Unilever East Africa and Emerging
Markets (EVP); Chief Procurement
Officer; Supply Chain, Spreads,
Dressings and Olive Oil Europe (VP);
Ice Cream Brazil (Managing Director);
Ice Cream Brazil (VP); Corporate
Strategy Group; Birds Eye Wall’s,
Unilever UK (Operations Manager)
Current external appointments: PostNL
(Member of the Supervisory Board);
Kenya Association of Manufacturers
(Executive Board Member)

RITVA SOTAMAA
Chief Legal Officer

AMANDA SOURRY
President, Foods

Nationality Finnish Age 52, Female
Appointed to ULE February 2013
Joined Unilever 2013
Previous posts include: Siemens
AG – Siemens Healthcare (GC);
General Electric Company – GE
Healthcare (various positions including
GE Healthcare Systems (GC));
Instrumentarium Corporation (GC)
Current external appointments: Fiskars
Corporation (NED)

Nationality British Age 52, Female
Appointed to ULE October 2015
Joined Unilever 1985
Previous Unilever posts include:
Global Hair (EVP); Unilever UK and
Ireland (EVP and Chairman); Global
Spreads and Dressings (EVP); Unilever
US Foods (SVP)

KEITH WEED
Chief Marketing &
Communications Officer

Nationality British Age 54, Male
Appointed to ULE April 2010
Joined Unilever 1983
Previous Unilever posts include: Global
Home Care and Hygiene (EVP); Lever
Fabergé (Chairman); Hair and Oral Care
(SVP)
Current external appointments: Sun
Products Corporation (NED);
Collectively Limited (Chairman);
Business in the Community
International Board (Chairman);
Business in the Community (Board
member)

JAN ZIJDERVELD
President, Europe

Nationality Dutch Age 51, Male
Appointed to ULE February 2011
Joined Unilever 1988
Previous Unilever posts include: South
East Asia and Australasia (EVP); Unilever
Middle East North Africa (Chairman);
Nordic ice cream business (Chairman)
Current external appointments:
AIM (Vice-President); FoodDrinkEurope
(Board member); Pepsi/Lipton JV (Board
member); ECR Europe (Efficient
Consumer Response) (Board member)

KEY:
NED Non-Executive Director
EVP Executive Vice President
SVP Senior Vice President
VP
Vice President
GC General Counsel

* Doug Baillie will retire on

1 March 2016 and will
be succeeded by Leena Nair.

Unilever Annual Report and Accounts 2015Governance

REPORT OF THE AUDIT COMMITTEE

COMMITTEE MEMBERS AND ATTENDANCE

John Rishton
Chair (since April 2015)

Byron Grote (Chair until April 2015)
Judith Hartmann (Member since April 2015)
Mary Ma
Hixonia Nyasulu

ATTENDANCE

8 / 8

5 / 5
3 / 3
8 / 8
8 / 8

This table shows the membership of the Committee together with their
attendance at meetings during 2015. If Directors are unable to attend
a meeting, they have the opportunity beforehand to discuss any agenda
items with the Committee Chair. Attendance is expressed as the number
of meetings attended out of the number eligible to be attended.

HIGHLIGHTS OF 2015

• Annual Report and Accounts
• Viability assessment
• Non-Financial KPIs
• Impact of upcoming tax regulations
• IT security and data privacy
• IT resilience

PRIORITIES FOR 2016

• Exchange rate management
• Non-Financial KPIs
• IT security and data privacy
• Tax strategy and reporting

MEMBERSHIP OF THE COMMITTEE
The Audit Committee is comprised only of independent Non-
Executive Directors with a minimum requirement of three such
members. It is chaired by John Rishton. The composition of the
Committee changed after the AGMs in April 2015 when Byron Grote
left the Committee and Judith Hartmann joined the Committee. At that
time John Rishton took over the Chairmanship of the Committee from
Byron Grote. The other members are Mary Ma and Hixonia Nyasulu.
For the purposes of the US Sarbanes-Oxley Act of 2002 John Rishton
is the Audit Committee’s financial expert. The Boards have satisfied
themselves that the current members of the Audit Committee are
competent in financial matters and have recent and relevant
experience. Other attendees at Committee meetings (or part thereof)
were the Chief Financial Officer, Chief Auditor, Group Controller, Chief
Legal Officer, Group Secretary and the external auditors. Throughout
the year the Committee members periodically met without others
present and also held separate private sessions with the Chief
Financial Officer, Chief Auditor and the external auditors, allowing
the Committee to discuss any issues in more detail directly.

ROLE OF THE COMMITTEE
The role and responsibilities of the Audit Committee are set out
in written terms of reference which are reviewed annually by
the Committee taking into account relevant legislation and
recommended good practice. The terms of reference are
contained within ‘The Governance of Unilever’ which is available
on our website at www.unilever.com/corporategovernance.
The Committee’s responsibilities include, but are not limited to,
the following matters with a view to bringing any relevant issues
to the attention of the Boards:
• oversight of the integrity of Unilever’s financial statements;
• review of Unilever’s quarterly and annual financial statements

(including clarity and completeness of disclosure), and approval
of the quarterly trading statements for quarter 1 and quarter 3;

• oversight of risk management and internal control arrangements;
• oversight of compliance with legal and regulatory requirements;
• oversight of the external auditors’ performance, objectivity,
qualifications and independence; the approval process of
non-audit services; recommendation to the Boards of their
nomination for shareholder approval; and approval of their
fees, refer to note 25 on page 135;

• the performance of the internal audit function; and
• approval of the Unilever Leadership Executive (ULE) expense

policy and the review of Executive Director expenses.

In order to help the Committee meet its oversight responsibilities,
each year management organise knowledge sessions for the
Committee on subject areas within their remit. In 2015, sessions
on legislative developments in tax and the reporting and assurance
methods used for the Unilever Sustainable Living Plan were held.
In addition, both Byron Grote and John Rishton visited one of our
key accounting and reporting centres in Bangalore.

HOW THE COMMITTEE HAS DISCHARGED ITS RESPONSIBILITIES
During the year, the Committee’s principal activities were as follows:

FINANCIAL STATEMENTS
The Committee reviewed the quarterly financial press releases
together with the associated internal quarterly reports from the Chief
Financial Officer and the Disclosure Committee, and with respect
to the half-year, and full-year results the external auditors’ reports,
prior to their publication. They also reviewed the Annual Report
and Accounts and Annual Report on Form 20-F. These reviews
incorporated the accounting policies and significant judgements
and estimates underpinning the financial statements as disclosed
within note 1 on pages 94 and 95. Particular attention was paid to the
following significant issues in relation to the financial statements:
• revenue recognition – estimation of discounts, incentives on

sales made during the year, refer to note 2 on page 96;

• direct tax provisions and contingencies, refer to note 6 on pages

•

106 to 108; and
indirect tax provisions and contingencies, refer to note 19
on page 129

The external auditors have agreed the list of significant issues
discussed by the Audit Committee.

For each of the above areas the Committee considered the key
facts and judgements outlined by management. Members of
management attended the section of the meeting of the Committee
where their item was discussed to answer any questions or
challenges posed by the Committee. The issues were also
discussed with the external auditors and further information can
be found on page 86. The Committee was satisfied that there are
relevant accounting policies in place in relation to these significant
issues and management have correctly applied these policies.

At the request of the Boards the Committee undertook to:
• review the appropriateness of adopting the going concern basis
of accounting in preparing the annual financial statements; and

• assess whether the business was viable in accordance with
the new requirement of the UK Corporate Governance Code.
The assessment included a review of the principal risks facing
Unilever, their potential impact, how they were being managed,
together with a discussion as to the appropriate period for the
assessment. The Committee recommended to the Boards that
there is a reasonable expectation that the Group will be able to
continue in operation and meet its liabilities as they fall due
over the three-year period of the assessment.

At the request of the Boards the Committee also considered
whether the 2015 Annual Report and Accounts was fair, balanced
and understandable and whether it provided the necessary
information for shareholders to assess the Group’s position and
performance, business model and strategy. The Committee was

Unilever Annual Report and Accounts 2015Governancesatisfied that, taken as a whole, the 2015 Annual Report and
Accounts is fair, balanced and understandable.

RISK MANAGEMENT AND INTERNAL CONTROL ARRANGEMENTS
The Committee reviewed Unilever’s overall approach to risk
management and control, and its processes, outcomes and
disclosure. It reviewed:
• the Controller’s Quarterly Risk and Control Status Report,

including Code of Business Principles cases relating to frauds
and financial crimes and significant complaints received
through the Unilever Code Support Line;

• the 2015 corporate risks for which the Audit Committee had
oversight and the proposed 2016 corporate risks identified
by the ULE;

• management’s improvements to reporting and internal

financial control arrangements;

• processes related to cyber security, information management

and privacy;

• tax planning, insurance arrangements and related

risk management;

• treasury policies, including debt issuance and hedging; and
• litigation and regulatory investigations.

The Committee reviewed the application of the requirements
under Section 404 of the US Sarbanes-Oxley Act of 2002 with
respect to internal controls over financial reporting. In addition,
the Committee reviewed the annual financial plan and Unilever’s
dividend policy and dividend proposals.

During 2015 the Committee continued its oversight of the
independent assurance work that is performed on a number
of our Unilever Sustainable Living Plan (USLP) metrics
(selected on the basis of their materiality to the USLP).

In fulfilling its oversight responsibilities in relation to risk
management, internal control and the financial statements, the
Committee met regularly with senior members of management
and is fully satisfied with the key judgements taken.

INTERNAL AUDIT FUNCTION
The Committee reviewed Corporate Audit’s audit plan for the year and
agreed its budget and resource requirements. It reviewed interim and
year-end summary reports and management’s response. The
Committee carried out an evaluation of the performance of the internal
audit function and was satisfied with the effectiveness of the function.
The Committee met independently with the Chief Auditor during the
year and discussed the results of the audits performed during the year.

AUDIT OF THE ANNUAL ACCOUNTS
KPMG, Unilever’s external auditors and independent registered
public accounting firm, reported in depth to the Committee on the
scope and outcome of the annual audit, including their audit of
internal controls over financial reporting as required by Section
404 of the US Sarbanes-Oxley Act of 2002. Their reports included
audit and accounting matters, governance and control, and
accounting developments.

The Committee held independent meetings with the external
auditors during the year and reviewed, agreed, discussed and
challenged their audit plan, including their assessment of the
financial reporting risk profile of the Group. The Committee
discussed the views and conclusions of KPMG regarding
management’s treatment of significant transactions and areas of
judgement during the year and KPMG confirmed they were satisfied
that these had been treated appropriately in the financial statements.

EXTERNAL AUDITORS
Shareholders approved the appointment of KPMG as the Group’s
external auditors at the 2015 AGMs in April. On the recommendation
of the Committee, the Directors will be proposing the
re-appointment of KPMG at the AGMs in April 2016.

Both Unilever and KPMG have safeguards in place to avoid the
possibility that the external auditors’ objectivity and independence
could be compromised, such as audit partner rotation and the
restriction on non-audit services that the external auditors can
perform as described below. The Committee reviewed the report
from KPMG on the actions they take to comply with the professional
and regulatory requirements and best practice designed to ensure
their independence from Unilever.

Each year, the Committee assesses the effectiveness of the
external audit process which includes discussing feedback
from the members of the Committee and stakeholders at all
levels across Unilever. Interviews are also held with key senior
management within both Unilever and KPMG.

The Committee also reviewed the statutory audit, audit related and
non-audit related services provided by KPMG and compliance with
Unilever’s documented approach, which prescribes in detail the
types of engagements, listed below, for which the external auditors
can be used:
• statutory audit services, including audit of subsidiaries;
• audit related engagements – services that involve attestation,
assurance or certification of factual information that may be
required by external parties;

• non-audit related services – work that our external auditors

are best placed to undertake, which may include:
– tax services – all significant tax work is put to tender;
– acquisition and disposal services, including related due

diligence, audits and accountants’ reports; and

– internal control reviews.

Several types of engagements are prohibited, including:
• bookkeeping or similar services;
• design and/or implementation of systems or processes related

to financial information or risk management;

internal audit;

• valuation, actuarial and legal services;
•
• broker, dealer, investment adviser or investment bank services;
• transfer pricing advisory services; and
• staff secondments of any kind.

All audit related engagements over €250,000 and non-audit
related engagements over €100,000 required specific advance
approval by the Audit Committee Chairman. The Committee
further approved all engagements below these levels which have
been authorised by the Group Controller. These authorities are
reviewed regularly and, where necessary, updated in the light of
internal developments, external developments and best practice.

The Committee confirms that the Group is in compliance with The
Statutory Audit Services for Large Companies Market Investigation
(Mandatory use of Competitive Tender Processes and Audit
Committee Responsibilities) Order 2014. The last tender for the
audit of the annual accounts was performed in 2013.

EVALUATION OF THE AUDIT COMMITTEE
As part of the internal Board evaluation carried out in 2015,
the Boards evaluated the performance of the Committee.
The Committee also carried out an assessment of its own
performance in 2015. Whilst overall the Committee members
concluded that the Committee is performing effectively, the
Committee agreed that to further enhance its effectiveness they
needed to ensure they continued to develop their knowledge of
business operations and how they were evolving which would
involve further knowledge sessions and site visits.

John Rishton
Chair of the Audit Committee

Judith Hartmann
Mary Ma
Hixonia Nyasulu

Unilever Annual Report and Accounts 2015GovernanceREPORT OF THE CORPORATE RESPONSIBILITY COMMITTEE

COMMITTEE MEMBERS AND ATTENDANCE

Louise Fresco
Chair

Laura Cha
Feike Sijbesma (Member since April 2015)

ATTENDANCE

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HIGHLIGHTS OF 2015

• Review of Unilever’s Code of Business Principles and

Responsible Sourcing Policy

• Milestones on the Unilever Sustainable Living Plan
• Launch of first human rights report

PRIORITIES FOR 2016

• Compliance, particularly social compliance, by third parties
• Progress on the Unilever Sustainable Living Plan (USLP)
• Corporate reputational risk assessment

TERMS OF REFERENCE
The Corporate Responsibility Committee oversees Unilever’s
conduct as a responsible multinational business. The Committee
is also charged with ensuring that Unilever’s reputation is
protected and enhanced. A central element of the Committee’s role
is the need to identify any external developments that are likely to
have an influence upon Unilever’s standing in society and to bring
these to the attention of the Boards.

The Committee comprises three Non-Executive Directors: Louise
Fresco, who chairs the Committee, Laura Cha, and Feike
Sijbesma, who was appointed to the Committee on 30 April 2015.
The Chief Marketing & Communications Officer attends the
Committee’s meetings.

The Committee’s discussions are informed by the perspectives
of the Group’s two sustainability leadership groups, both of which
are chaired by the Chief Marketing & Communications Officer.
The first is the Unilever Sustainable Living Plan Council – a group
of experts from outside the Group who advise Unilever’s senior
leadership on its sustainability strategy. The second is the Unilever
Sustainable Living Plan Steering Team – the group of Unilever’s
senior executives who are accountable for driving sustainable
growth. The insights from these groups help to keep the Boards
informed of current and emerging trends and any potential risks
arising from sustainability issues.

During 2015 the Committee reviewed its terms of reference of
the Committee and, on the recommendation of the Committee,
the Boards approved minor changes to the terms.

The Committee’s terms of reference and details of the Unilever
Sustainable Living Plan Council are available on our website at
www.unilever.com/corporategovernance and
www.unilever.com/sustainable-living/governance respectively.

MEETINGS
Meetings are held quarterly and ad hoc as required. The Committee
Chairman reports the conclusions to the Boards. Four meetings
were held in 2015. Taking into account the Committee’s terms of
reference, Unilever’s corporate risks and the priorities the
Committee sets itself for the year, the Committee works to a
structured agenda, enabling members to focus in detail on the
responsibilities assigned to them.

The agenda covers Unilever’s Code of Business Principles (the
Code), litigation and investigations as well as occupational safety,
product safety and quality, the USLP and corporate reputation as
well as a range of strategic and current issues.

CODE OF BUSINESS PRINCIPLES
The Code and associated Code Policies set out the standards of
conduct expected of employees. Compliance with them is an
essential element in ensuring Unilever’s continued business
success. The Chief Executive Officer is responsible for
implementing these principles, supported by the Global Code and
Policy Committee which is chaired by the Chief Legal Officer.

The Committee is responsible for the oversight of the Code and
Code Policies, ensuring that they remain fit for purpose and are
appropriately applied. The Audit Committee also considers the
Code as part of its remit to review risk management.

The Committee maintains close scrutiny of the mechanisms for
compliance with the Code and Code Policies as ongoing compliance
is essential to promote and protect Unilever’s values and
standards, and hence the good reputation of the Group. At each
meeting the Committee reviews the completion of investigations
into non-compliance with the Code and Code Policies and is alerted
to any trends arising from such non-compliance.

In addition, the Committee keeps a close watch on compliance with
Unilever’s Responsible Sourcing Policy for suppliers and its new
Responsible Business Partner Policy for third parties. By initiating
a new policy specifically for business partners such as
distributors, Unilever is making a step change in its compliance
approach. Unilever piloted the Responsible Business Partner
Policy in a number of countries during 2015.

SAFETY
The Committee reviews quarterly scorecard analyses of progress
on occupational safety and product safety. These scorecards are
complemented by regular in-depth discussions so that Committee
members may reassure themselves that Unilever’s systems and
processes remain robust.

Occupational safety remains a priority for Unilever. The Committee
welcomed Unilever’s increased focus on road safety, especially
the ban on using mobile phones and other electronic devices
while driving.

The ban was introduced because mobile phone use is considered
one of the leading causes of vehicle accidents worldwide.
Research shows that drivers using mobiles – even hands-free –
are four times more likely to be involved in an accident. And 90%
of road deaths happen in developing and emerging countries, the
same regions in which Unilever is seeking to grow its business.
Between 2007 and 2015, car accidents were the main cause
of death and life-changing injuries to employees and members
of the public.

The ban came into effect in July 2015 and was supported by the
campaign ‘Motor On, Mobile Off’ to alert employees to the new
mandatory safety practice. The Committee will continue to
scrutinise this area to ensure risks are mitigated.

Unilever Annual Report and Accounts 2015GovernanceUNILEVER SUSTAINABLE LIVING PLAN (USLP)
Unilever’s Purpose is to make sustainable living commonplace and
the USLP is at the heart of Unilever’s vision to accelerate growth in
the business whilst reducing its environmental footprint and
increasing its positive social impact.

But Unilever recognises that change needs to be driven on
a wider scale to tackle the world’s major social, environmental
and economic issues – what is needed is fundamental
‘transformational’ change to broader systems. To this end,
Unilever is combining its own actions with external advocacy on
public policy and joint working with partners, focusing on three
areas where it has the scale, influence and resources to make a
difference: eliminating deforestation; sustainable agriculture and
smallholder farmers; and water, sanitation and hygiene. In all
these areas, empowering women is crucial to eradicating poverty
and accelerating development.

Given its strategic importance, the Committee monitors progress
against the USLP and any potential risks arising from it and the
Group’s transformational change agenda that could affect
Unilever’s reputation.

EMBEDDING SUSTAINABLE LIVING INTO THE BUSINESS
In July the Committee was briefed on two important workstreams
to further embed sustainable living into the business to drive
growth. The first is the development and piloting of a structured
approach to defining the business case for sustainability. This
simple framework seeks to quantify four primary value drivers for
the business – more growth, lower costs, less risk, more trust
– and is intended to provide strategic input into business planning
across categories and functions. The second is a methodology for
defining ‘Sustainable Living brands’ which enables brands to
generate a systematic view of their progress across social and
environmental factors.

FIRST HUMAN RIGHTS REPORT
In 2014, the Enhancing Livelihoods pillar of the USLP was
expanded with new commitments covering fairness in the
workplace, opportunities for women and inclusive business.
The promotion of human rights across Unilever’s value chain
is an important component in these commitments and the
Committee welcomed the publication of Unilever’s inaugural
human rights report in June.

The new UN Guiding Principles Reporting Framework provides
comprehensive guidance for businesses to report how they are
implementing the UN Guiding Principles on Business and Human
Rights. Unilever was the first to adopt the new principles and the
first to produce a detailed, stand-alone report using the
framework. ‘Enhancing Livelihoods, Advancing Human Rights’
outlines Unilever’s objectives to respect human rights and to
actively promote them across all areas of the business.

The report highlights Unilever’s work to empower women,
progress in the fight against sexual harassment, and the steps to
address health and safety issues across the supply chain. It also
describes key areas of focus for the future, which include human
rights issues beyond first-tier suppliers and continuing
collaboration with other organisations in order to influence
systemic change.

MONITORING REPUTATION
A global business working in many countries comes across
numerous issues in its everyday operations. It is crucial therefore
that the Committee seeks regular briefings on the systems and
processes in place for managing issues. The Committee requests
an annual summary of the most material issues Unilever is dealing
with, which in 2015 included issues such as climate change, food
and beverage taxes, the responsible use of technology and human
and labour rights. Compliance with Unilever standards, including
social compliance by third parties, and vigilance on Unilever’s
standing in society will continue to be a priority for the Committee
in 2016.

Given the Committee’s role in ensuring Unilever’s reputation is
well managed, it can also seek independent views on how Unilever
is perceived in society. One of the major annual surveys of
reputation in sustainability is conducted by the research agency
Globescan. Its methodology draws on the views of over 800
sustainability experts across more than 80 countries. It reveals
that an increasing number of them see that corporate leadership
in sustainable development is mainly driven by making
sustainability part of the company’s core business model. 38% of
respondents said that Unilever is ‘integrating sustainability into its
business strategy’, putting it well ahead of others in this respect.

LITIGATION REVIEW
The Chief Legal Officer reports to the Committee on litigation and
regulatory matters which may have a reputational impact including
environmental issues, bribery and corruption compliance and
competition law compliance. For further information on ‘legal
proceedings’ please see note 20 on page 131.

EVALUATION OF THE CORPORATE RESPONSIBILITY
COMMITTEE
As part of the internal Board evaluation carried out in 2015,
the Boards evaluated the performance of the Committee.
The Committee also carried out an assessment of its own
performance in 2015. Whilst overall the Committee members
concluded that the Committee is performing effectively, the
Committee has agreed to further enhance its effectiveness by
holding further knowledge sessions on topics such as assessing
the impacts of the USLP. The Corporate Responsibility Committee
will maintain its independent view of Unilever, and will keep this
view centre-stage in its critique of the Group’s reputation and
standing in society.

Louise Fresco
Chair of the Corporate Responsibility Committee

Laura Cha
Feike Sijbesma

Further details on the USLP can be found in Unilever’s online Sustainable
Living Report 2015, to be published in April 2016.

www.unilever.com/sustainable-living

Unilever Annual Report and Accounts 2015GovernanceREPORT OF THE NOMINATING AND
CORPORATE GOVERNANCE COMMITTEE

COMMITTEE MEMBERS, MEMBERSHIP STATUS
AND ATTENDANCE

Feike Sijbesma
Chair (since April 2015)

Kees Storm (Chair until April 2015)
Laura Cha (Member since April 2015)
Michael Treschow
Sir Malcolm Rifkind (Member until April 2015)

ATTENDANCE

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This table shows the membership of the Committee together with their
attendance at meetings during 2015. If Directors are unable to attend a
meeting, they have the opportunity beforehand to discuss any agenda
items with the Committee Chair. Attendance is expressed as the number of
meetings attended out of the number eligible to be attended.

HIGHLIGHTS OF 2015

• Recommendations for new Non-Executive Directors
• Planning for Chairman succession
• Monitoring of emerging Corporate Governance developments

PRIORITIES FOR 2016

• Chairman succession and induction
• Develop pipeline of potential (Non-Executive and Executive)

Director candidates

• Participating in the FRC corporate culture project

ROLE AND MEMBERSHIP OF THE COMMITTEE
The Nominating and Corporate Governance Committee is
responsible for evaluating the balance of skills, experience,
independence and knowledge on the Boards and for drawing
up selection criteria, ongoing succession planning and
appointment procedures. It also has oversight of all matters
relating to corporate governance and brings any issues in this
respect to the attention of the Boards.

The Committee’s terms of reference are set out in ‘The
Governance of Unilever’ which can be found on our website at
www.unilever.com/corporategovernance. During the year, the
Committee reviewed its own terms of reference to determine
whether its responsibilities are properly described. The amended
terms became effective on 1 January 2016.

The Committee is comprised of two Non-Executive Directors
and the Chairman. The Group Secretary acts as secretary to
the Committee. Other attendees at Committee meetings in 2015
(or part thereof) were the Chief Executive Officer, the Chief HR
Officer and relevant external search agencies.

In 2015 the Committee met ten times. At the start of the year the
Committee considered the results of the Committee’s annual
self-evaluation for 2014 and its priorities for the year and used
these to help create an annual plan for meetings for 2015.

APPOINTMENT AND REAPPOINTMENT OF DIRECTORS
Reappointment: Non-Executive Directors normally serve for a
maximum of nine years. The schedule the Committee uses for
orderly succession planning of Non-Executive Directors can be
found on our website at www.unilever.com/committees. All existing
Executive and Non-Executive Directors, unless they are retiring,
submit themselves for evaluation by the Committee every year.
The Chairman will inform the Committee of the outcomes of his
discussions with each Director on individual performance. Based
upon the evaluation of the Boards, its Committees and the
continued good performance of individual Directors, the Committee
recommends to each Board a list of Directors for re-election at the
relevant company’s AGMs. In 2015, Byron Grote, Sir Malcolm
Rifkind, Kees Storm and Paul Walsh decided not to put themselves
forward for re-election at the 2015 AGMs in April 2015. The
Committee proposed the reappointment of all other Directors.
Directors are appointed by shareholders by a simple majority vote
at the AGMs.

The Committee also recommends to the Boards candidates for
election as Chairman and Vice-Chairman and Senior Independent
Director. After being reappointed as Non-Executive Directors at the
2015 AGMs, Ann Fudge became the Vice-Chairman and Senior
Independent Director, and the following appointments of Committee
Chairs were made: John Rishton (Audit Committee), Ann Fudge
(Compensation Committee) and Feike Sijbesma (Nominating and
Corporate Governance Committee). Louise Fresco remained as
Chair of the Corporate Responsibility Committee.

Appointment: When recruiting, the Committee will take into
account the profile of Unilever’s Boards of Directors set out in ‘The
Governance of Unilever’ which is in line with the recommendations
of applicable governance regulations and best practice. Pursuant
to the profile the Boards should comprise a majority of Non-
Executive Directors who are independent of Unilever, free from any
conflicts of interest and able to allocate sufficient time to carry out
their responsibilities effectively. With respect to composition and
qualities, the Boards should be in keeping with the size of Unilever,
its portfolio, culture and geographical spread and its status as a
listed company, and the Boards should have sufficient financial
literacy. The objective pursued by the Boards is to have a variety
of age, gender, expertise, social background and nationality and,
wherever possible, the Boards should reflect Unilever’s consumer
base and take into account the footprint and strategy of the Group.
In addition, the Non-Executive Directors in aggregate should have
sufficient understanding of the markets where Unilever is active
in order to understand the key trends and developments relevant
for Unilever.

In 2015, the Committee engaged the services of Russell Reynolds
Associates and MWM Consulting (both executive search agencies
which also assist Unilever with the recruitment of senior
executives) to assist with the recruitment of new Non-Executive
Directors with the appropriate skills and expertise.

In the early part of the year, the Committee reviewed candidates
presented by the agency, or recommended by Directors, an
interview process was followed and the Committee ultimately
recommended to the Boards that Nils Andersen, Vittorio Colao
and Judith Hartmann all be nominated as new Non-Executive
Directors at the 2015 AGMs. In April 2015 the AGMs resolved to
appoint Nils and Judith with immediate effect and to appoint
Vittorio with effect from 1 July 2015. Nils, Judith and Vittorio
have further strengthened the financial and digital expertise
and industry experience of the Boards.

Unilever Annual Report and Accounts 2015GovernanceSuccession Planning: In consultation with the Committee,
the Boards review both the adequacy of succession planning
processes and the actual succession planning at each of Board
and ULE level.

The Committee, on behalf of the Boards, continued during 2015
to work on succession planning for the Boards given that Michael
Treschow (the Chairman) and Hixonia Nyasulu were expected
to retire in April 2016, each having then served for the maximum
nine years.

Chairman Succession: Having agreed in the 2014 Board and
Committee evaluation process that the Committee should give
fuller feedback to the Boards on the appointment process of
Non-Executive Directors the Committee actively engaged with the
Boards in 2015 on the profile of a future Chairman.

The Boards agreed that the main accountabilities of Unilever’s
Chairman were that the Chairman should chair the shareholder
meetings, oversee the overall strategy, act as a sounding board
for the Executive Directors and the Non-Executive Directors, plan
for succession of all Board members, keep all communication
open between the Boards and set an example of integrity and
ethical leadership for the entire Unilever Group. In addition, in
view of Unilever’s objectives and activities, it was important to the
Committee and the Boards that the profile of the new Chairman
included a proven track record as a CEO, deep knowledge of
industry, experience of working at more than one company, ability
to spend sufficient time in Europe and support for the Unilever
Sustainable Living Plan.

During the search, the experience of each potential candidate was
matched against the profile agreed by the Boards, the views of
Russell Reynolds and MWM on the shortlists of candidates drawn
up by the Committee were shared with the Boards, and the
preferred candidate met with all Directors.

Unilever Leadership Executive: During 2015, the Committee
consulted with the Chief Executive Officer on the selection criteria
and appointment procedures for senior management changes,
including changes to the ULE. In particular, the Committee was
consulted on the appointments of Graeme Pitkethly and Amanda
Sourry to the ULE and the appointment of Graeme as the new Chief
Financial Officer with effect from 1 October 2015 when Jean-Marc
Huët ceased to be an Executive Director and hence ceased to hold
executive office.

DIVERSITY POLICY
Unilever has long understood the importance of diversity within
our workforce because of the wide range of consumers we
connect with globally. This goes right through our organisation,
starting with the Boards. The Boards feel that, whilst gender is
an important part of diversity, Unilever Directors will continue
to be selected on the basis of their wide-ranging experience,
backgrounds, skills, knowledge and insight.

Unilever’s Board Diversity Policy, which is reviewed by the
Committee each year, can be found on our website at
www.unilever.com/boardsofunilever. The Committee also
reviewed and considered relevant recommendations on diversity
and remains pleased that over 50% of our Non-Executive Directors
are women.

CORPORATE GOVERNANCE DEVELOPMENTS
The Committee reviews relevant proposed legislation and
changes to relevant corporate governance codes at least twice a
year. It carefully considers whether and how the proposed laws/
rules would impact upon Unilever and whether Unilever should
participate in consultations on the proposed changes.

For example, during 2015 the subject of beneficial ownership
transparency and the new proposed legislation in the United
Kingdom were considered by the Committee as was the progress
of the European Shareholder Rights Directive.

EVALUATION
As part of the internal Board evaluation carried out in 2015,
the Boards evaluated the performance of the Committee. The
Committee also carried out an assessment of its own performance
in 2015. Whilst overall the Committee members concluded that
the Committee is performing well, the Committee has agreed to
further enhance its effectiveness by developing the pipeline of
potential (Non-Executive and Executive) Director candidates.

Feike Sijbesma
Chair of the Nominating and Corporate
Governance Committee

Laura Cha
Michael Treschow

Unilever Annual Report and Accounts 2015GovernanceDIRECTORS’ REMUNERATION REPORT

COMMITTEE MEMBERS AND ATTENDANCE

PRIORITIES FOR 2016

ATTENDANCE

• Further review and shaping of Unilever’s future reward

Ann Fudge (Chair since April 2015)
Paul Walsh (Chair until April 2015)
Nils Andersen (Member since April 2015)
Vittorio Colao (Member since July 2015)
Michael Treschow
Kees Storm (Member until April 2015)

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6 / 6
3 / 3

This table shows the attendance of Directors at Committee meetings
held in the year ended 31 December 2015. If Directors are unable to
attend a meeting, they have the opportunity beforehand to discuss any
agenda items with the Committee Chair. Attendance is expressed as the
number of meetings attended out of the number eligible to be attended.

HIGHLIGHTS OF 2015

• No changes have been made to the Remuneration Policy

during the year. The Committee reviewed the remuneration
framework and concluded that it continues to serve
Unilever well and people understand how it works.
In reaching this conclusion, different alternatives and
scenarios were reviewed to assess whether they would
further enhance alignment and linkage between
remuneration and strategy. This review will continue
in 2016 in preparation for renewal of the Remuneration
Policy in 2017.

• Benchmarking exercises for Unilever’s ‘Top 100’ executive
management population below Executive Director level
show that Unilever continues to be aligned against market
pay rates.

• In 2015 Unilever offered staff in over 100 countries the
opportunity to participate in the SHARES plan which
enables staff who are not eligible for executive share
incentives the opportunity to buy three Unilever shares
and get one Unilever share free.

framework to ensure that it remains aligned with strategy
and long-term shareholder value creation, with a view to
extending, modifying or replacing our Remuneration Policy
at the 2017 AGMs.

• Review of the development of Unilever’s ‘Fair Compensation

Framework’ and alignment with Living Wages.

• Review of progress in implementing and enhancing
‘SHARES’ (Unilever’s global all-employee share
acquisition plan).

• Communication with both shareholders and stakeholders

during the year in advance of the 2017 renewal of Unilever’s
Remuneration Policy and the Global Share Incentive Plan.

FORMAT OF THE DIRECTORS’ REMUNERATION REPORT
Our Directors’ Remuneration Report is split into the following
sections:

• Chairman’s letter – page 67
• Remuneration Principles – page 68
• Annual Remuneration Report – pages 69 to 83

REMUNERATION POLICY
Our Remuneration Policy, which was adopted at the 2014 NV and
PLC AGMs, remains unchanged for 2016 and is available on our
website. Reward decisions taken for 2016 by the Compensation
Committee have been reflected in the supporting information in
the Remuneration Policy table.

www.unilever.com/ara2015/downloads

Unilever Annual Report and Accounts 2015GovernanceCHAIRMAN’S LETTER

BUSINESS PERFORMANCE AND REMUNERATION
OUTCOMES FOR 2015

conditions to be measured at the normal vesting date and awards
being pro-rated for length of service. Full details of the payment
relating to Jean-Marc Huët’s cessation of employment are set
out on page 78. Graeme Pitkethly’s remuneration for his role as
Executive Director with effect from the 2016 AGMs is structured
wholly in line with our Remuneration Policy and details are set
out on page 69.

STRATEGIC LINKAGE OF REWARD TO BUSINESS
PERFORMANCE
In preparation for the 2016 annual bonus and long-term incentive
plan awards, the Committee has undertaken a review of the
performance measures and targets that will determine vesting
of these awards. Unilever’s success is driven by continued focus on
delivering consistent and competitive growth in a sustainable and
profitable manner. Accordingly, underlying sales growth and core
operating margin improvement are key measures in our annual
bonus plan and long-term executive incentive plans. Cash flow
generation remains central to the success of the business
in terms of both returns to shareholders and investment for future
growth and therefore remains a performance measure in both our
annual bonus plan (free cash flow) and long-term incentive plans
(operating cash flow). The Committee therefore concluded that the
performance measures for our 2016 annual bonus plan and for the
2016-2018 performance cycle of our long-term executive incentive
plans should remain unchanged. For reasons of commercial
sensitivity the target ranges for our performance measures will be
disclosed together with the outcomes of incentive plans at the end
of the respective performance periods.

Ann Fudge
Chair of the Compensation Committee

Unilever Annual Report and Accounts 2015GovernanceDIRECTORS’ REMUNERATION REPORT CONTINUED

REMUNERATION PRINCIPLES

SUPPORTING THE DELIVERY OF OUR STRATEGY THROUGH
REMUNERATION ARRANGEMENTS
Our vision is to accelerate growth in the business, while reducing
our environmental footprint and increasing our positive social
impact, through a focus on our brands, our operations, our people
and the Unilever Sustainable Living Plan (USLP). Remuneration is
one of the key tools that we have as a business to help us to
motivate our people to achieve our goals.

Our remuneration arrangements are designed to support our
business vision and the implementation of our strategy. The key
elements of our remuneration package for Executive Directors are
summarised below:

FIXED
ELEMENTS

PERFORMANCE-RELATED
ELEMENTS

Base salary

Fixed allowance
and other
benefits

Annual bonus

Longer-term:
MCIP

Longer-term:
GSIP

THE PACKAGE HAS BEEN DESIGNED BASED ON THE FOLLOWING KEY PRINCIPLES:

PAYING FOR
PERFORMANCE

The focus of our package is on variable pay, based on annual and long-term performance. Performance-
related elements are structured so that target levels of reward are competitive, but Executive Directors
can only earn higher rewards if they exceed the ongoing standards of performance that Unilever requires.

ALIGNING
PERFORMANCE
MEASURES
WITH STRATEGY

DELIVERING
SUSTAINABLE
PERFORMANCE

ALIGNMENT
WITH
SHAREHOLDER
INTERESTS

The performance measures for our annual and long-term plans have been selected to support our
business strategy and the ongoing enhancement of shareholder value through a focus on increasing
sales, improving margin, cash generation and returns for shareholders.

Acknowledging that success is not only measured by delivering financial returns, we also consider
the quality of performance in terms of business results and leadership, including corporate social
responsibility and progress against the USLP, when determining rewards.

To ensure that remuneration arrangements fully support our sustainability agenda, the personal
performance goals under the annual bonus include USLP targets, where relevant.

The majority of the package for our Executive Directors is delivered in Unilever shares to ensure that the
interests of executives are aligned with shareholders’ interests. This is further supported by significant
shareholding requirements, ensuring that a substantial portion of each Executive Director’s personal
wealth is linked to Unilever’s share price performance.

Non-Executive Directors are also encouraged to build up their personal holding of Unilever shares to
ensure alignment with shareholders’ interests.

PAYING
COMPETITIVELY

The overall remuneration package offered to Executive Directors should be sufficiently competitive to
attract and retain highly experienced and talented individuals, without paying more than is necessary.

PREVENTING
INAPPROPRIATE
RISK-TAKING

The Committee believes that Unilever’s risk management process provides the necessary control to
prevent inappropriate risk-taking. When the Committee reviews the structure and levels of performance-
related pay for Executive Directors and other members of the Unilever Leadership Executive (ULE), it
considers whether these might encourage behaviours that are incompatible with the long-term interests
of Unilever and its shareholders or that may raise any environmental, social or governance risks. Where
necessary, the Committee would take appropriate steps to address this.

Unilever Annual Report and Accounts 2015GovernanceANNUAL REMUNERATION REPORT
The following sets out how Unilever’s Remuneration Policy, which is available on our website, will be implemented in 2016 and how it was
implemented in 2015.

www.unilever.com/ara2015/downloads

IMPLEMENTATION OF THE REMUNERATION POLICY IN 2016 FOR EXECUTIVE DIRECTORS

Graeme Pitkethly
Graeme Pitkethly became CFO and a member of the ULE on 1 October 2015. He will be proposed for election as an Executive Director
of the Boards of NV and PLC at the AGMs in April 2016 and therefore his 2015 remuneration is not disclosed herein. The Committee
approved the following remuneration package for Graeme Pitkethly, which came into effect from 1 October 2015:
• base salary: £625,000;
• fixed allowance: £200,000;
• annual bonus for 2016: target award 100% of base salary with a maximum of 150% of base salary. Before Graeme became CFO
his target award was 70% of base salary. These rates have been applied pro rata for 2015 with the higher rate from the date of
his appointment as CFO;

• MCIP share award from 2016: a minimum of 25% of gross bonus must be, and up to 60% may be, invested in Unilever shares and

matched under the terms of the MCIP with vesting in the range of zero to 150%;

• GSIP share award from 2016: target award of 150% of base salary, ie the 2016 award has a face value of £937,500 under the terms

of the GSIP, to vest in 2019 in the range of zero to 200%; and

• death, disability and medical insurance cover and actual tax return preparation costs in line with Unilever’s Remuneration Policy.

Graeme’s package, as above, will remain unchanged if he is appointed as an Executive Director at the AGMs in April 2016. His
remuneration package is in accordance with the approved Remuneration Policy. The Committee believes that the positioning of the
package represents an acceptable balance in view of various considerations, such as Jean-Marc Huët’s package, competitive external
market pay rates across Unilever’s peer group and Graeme’s previous package.

ELEMENTS OF REMUNERATION

FIXED ELEMENTS
OF REMUNERATION

BASE SALARY

AT A GLANCE

DESCRIPTION

Salary effective from
1 January 2016:
• CEO – £1,010,000

(unchanged from 2015)

• CFO – £625,000

The Committee recognises that the CEO’s salary is below competitive benchmarks
compared to similar sized UK and European companies. Having regard to the CEO’s
sustained track record of good performance, the Committee has expressed its
intention to make further increases to salary to address this over the last few years.
However, the Committee once more agreed to Paul Polman’s request to not increase
his base salary in light of his view that the CEO should be rewarded through
performance-based pay rather than a salary increase. Accordingly, the CEO’s salary
will be held steady for the fourth year in a row.

Graeme Pitkethly’s salary has been set in accordance with the approved Remuneration
Policy and with regard to the previous CFO’s salary level, competitive external market
pay rates across Unilever’s peer group and his previous package inside Unilever.

FIXED ALLOWANCE

Fixed allowance for 2016:
• CEO – £250,000
• CFO – £200,000

A fixed allowance not linked to base salary is provided as a simple, competitive
alternative to the provision of itemised benefits and pensions.

OTHER BENEFIT
ENTITLEMENTS

• Amounts for other

benefits are not known
until the year end.

In line with Unilever’s Remuneration Policy, Executive Directors will be provided with death,
disability and medical insurance cover and actual tax return preparation costs in 2016.

www.unilever.com/ara2015/downloads

In line with the commitments made to the current CEO on recruitment and included
in the Remuneration Policy, Unilever also pays the CEO’s social security obligations in
his country of residence to protect him against the difference between employee social
security obligations in his country of residence versus the UK.

Conditional supplemental pension
The CEO also receives a conditional supplemental pension accrual to compensate him
for the arrangements forfeited on leaving his previous employer. The CEO will receive
a contribution to his supplemental pension of 12% of the lower of his actual base salary
over the year and his 2011 base salary (£920,000) plus 3% per annum. The cap for 2016
has been kept at £976,028 with a maximum contribution of £117,123.

This supplemental pension accrual is conditional on the CEO remaining in employment
with Unilever to age 60 and subsequently retiring from active service or his death or
total disability prior to retirement.

Unilever Annual Report and Accounts 2015GovernanceDIRECTORS’ REMUNERATION REPORT CONTINUED

PERFORMANCE ELEMENTS OF REMUNERATION
The actual targets for the annual bonus and the three business-focused performance measures for the MCIP and GSIP awards to be
made in 2016 have not been disclosed up front. The Boards deem this to be commercially sensitive information as targets could reveal
information about Unilever’s business plan and budgeting process to competitors, which could be damaging to Unilever’s business
interests and therefore to shareholders. Where appropriate, targets will be disclosed in the Directors’ Remuneration Report following
the end of the respective performance period.

Performance measures are selected to align with Unilever’s clearly stated growth ambition and our long-term business strategy.
Unilever’s primary business objective is to generate a sustainable improvement in business performance through increasing underlying
sales while steadily improving core operating margins and cash flow.

The measures chosen for the annual and long-term incentives support the delivery of this objective. Performance measures focus
management on the delivery of a combination of top-line revenue growth and bottom-line profit growth that Unilever believes will build
shareholder value over the longer term. The use of a performance measure based on total shareholder return measures Unilever’s
success relative to peers.

PERFORMANCE
ELEMENTS OF
REMUNERATION

ANNUAL BONUS

MCIP 2016

GSIP 2016 AWARDS

AT A GLANCE

DESCRIPTION

• CEO – target 120% of base salary,
maximum 200% of base salary.
• CFO – target 100% of base salary,
maximum 150% of base salary.

The performance measures for 2016 will be:

Underlying sales
growth (⅓)

Free cash flow (⅓)

Core operating
margin
improvement (⅓)

• Out of their annual bonus awards,
Executive Directors are required
to invest 25% of their gross bonus
and may invest up to 60% of their
gross bonus in the MCIP
(investment shares which are
held in the individual’s name).
• They are awarded an equal number

of MCIP matching shares.
• Maximum vesting for matching

shares is 150% of the initial award.
• The maximum award of matching
shares for the CEO and CFO (as a
percentage of base salary at grant),
assuming maximum bonus and
maximum deferral under the MCIP,
would be 180% of base salary and
135% of base salary respectively.

• Target award 200%

of base salary for the CEO and
150% of base salary for CFO.

• Maximum vesting of 200%

initial award.

• Maximum vesting of 400% of
base salary for the CEO and
300% of base salary for the CFO.

In addition, when determining annual bonus awards, the Committee will
also consider personal performance and the quality of results in terms
of both business results and leadership, including corporate social
responsibility and progress against the delivery of USLP goals.

Matching shares awarded under the MCIP in 2016 will be subject to the
same performance measures as GSIP awards made in the year. Further
details of the performance measures are disclosed below.

The Committee considers that using the same performance measures
across both the MCIP and GSIP is appropriate, as the performance
measures used reflect our key strategic goals and maintain the alignment
of our incentive plans with the delivery of our clearly stated growth
ambitions. Given that we use four different performance measures, the
Committee believes that the proportion of remuneration linked to each
performance measure is not excessive.

Performance targets are assessed over a three-year period.

Performance measures for 2016 awards:

Underlying
sales growth
(25%)(a)

Core operating
margin
improvement
(25%)(a)

Cumulative
operating cash
flow (25%)(a)

Relative total
shareholder
return (25%)(b)

Both performance conditions
must reach threshold
performance, before any
payout in respect of either
measure is made.

Unilever Annual Report and Accounts 2015Governance(a) For the three business-focused performance measures, 25% of target awards vest for achieving threshold performance. 200% of target awards vest (capped

at 150% under the MCIP) for maximum performance.

(b) For the relative TSR measure, Unilever’s TSR is measured against a comparator group of other consumer goods companies. TSR measures the return

received by a shareholder, capturing both the increase in share price and the value of dividend income (assuming dividends are reinvested). The TSR results
are measured on a common currency basis to better reflect the shareholder experience.

The current TSR peer group is as follows:

Avon
Beiersdorf
Campbell Soup
Coca-Cola

Colgate-Palmolive
Danone
General Mills
Estée Lauder

Henkel
Kao
Kellogg’s
Kimberly-Clark

L’Oréal
Nestlé
PepsiCo
Procter & Gamble

Reckitt Benckiser
Shiseido

The TSR comparator group consists of 18 companies (19 including Unilever). No shares in the portion of the award subject to TSR vest if Unilever is ranked
below position 10 in the peer group at the end of the three-year period, 50% vests if Unilever is ranked 10th, 100% vests if Unilever is ranked 7th and 200%
(150% under the MCIP) vests if Unilever is ranked 3rd or above. Straight-line vesting occurs between these points. The Committee may change the TSR
vesting levels set out above if the number of companies in the TSR comparator group changes.

ULTIMATE REMEDY/MALUS
Grants under the GSIP and MCIP are subject to ultimate remedy. Upon vesting of an award, the Committee shall have the discretionary
power to adjust the value of the award if the award, in the Committee’s opinion taking all circumstances into account, produces an unfair
result. In exercising this discretion, the Committee may take into account Unilever’s performance against non-financial measures. The
Committee will only adjust the value of a vesting GSIP and MCIP award upwards after obtaining shareholder consent. With effect from
the 2015 GSIP and MCIP awards, the Committee may apply malus to reduce an award or determine that it will not vest or only vest in
part in the event of a significant downward restatement of the financial results of Unilever, gross misconduct or gross negligence,
material breach of Unilever’s Code of Business Principles or any of the Unilever Code Policies or conduct by the individual that results
in significant losses or serious reputational damage to Unilever. The annual bonus will also be subject to malus on the same grounds as
apply for GSIP and MCIP awards.

CLAW-BACK
The Committee has discretion to reclaim or claw-back some or all of the value of awards of performance-related payments to Executive
Directors in the event of a significant downward restatement of the financial results of Unilever. This includes the annual bonus together
with any awards that have been made and/or vested shares under the Share Matching Plan, the GSIP and the MCIP. This claw-back
may be effected up to two years from vesting by reducing outstanding awards or requiring the return of the net value of vested awards
to Unilever.

In 2015, the Committee did not reclaim or claw-back any of the value of awards of performance-related payments to Executive Directors.

SINGLE FIGURE OF REMUNERATION AND IMPLEMENTATION OF THE REMUNERATION POLICY IN 2015 FOR EXECUTIVE
DIRECTORS (AUDITED)
The table below shows a single figure of remuneration for each of our Executive Directors, for the years 2014 and 2015.

Base salary and fixed allowance are set in sterling and remain
unchanged from 2014 through 2015, please read the notes below
the table for more information

(A) Base salary
(B) Fixed allowances and other benefits
(C) Annual bonus

Long-term incentives

(D) MCIP matching shares –
(required by UK law)
(E) GSIP performance shares –
(required by UK law)

Long-term incentives (sub-total)
(F) Conditional supplemental pension

Total remuneration paid – (required by UK law) (A+B+C+D+E+F)

(G) Share awards (required by Dutch law)

Total remuneration paid – (required by Dutch law) (A+B+C+F+G)

Paul Polman
CEO (UK)
(€’000)

Jean-Marc Huët
CFO (UK)
(€’000)

2015

1,392
901
2,573

1,972

3,404
5,376
161

10,403

3,274

8,301

2014

1,251
787
1,652

1,803

3,923
5,726
145

9,561

4,206

8,041

2015(a)

738
273
812

382

1,820
2,202
n/a

4,025

573

2,396

2014

885
377
778

370

3,022
3,392
n/a

5,432

2,249

4,289

(a) The 2015 figures relate to amounts paid or payable to Jean-Marc Huët for his services between 1 January 2015 and 1 October 2015, the date that Jean-Marc

Huët ceased to be CFO and an Executive Director of Unilever. Details regarding his leaving arrangements can be found on page 78.

We do not grant our Executive Directors any personal loans or guarantees.

Unilever Annual Report and Accounts 2015Governance
DIRECTORS’ REMUNERATION REPORT CONTINUED

ELEMENTS OF SINGLE FIGURE REMUNERATION 2015

(A) BASE SALARY (AUDITED)
Salary set in sterling and paid in 2015:
• CEO – £1,010,000.
• CFO – £535,500.

(B) FIXED ALLOWANCE AND OTHER BENEFITS (AUDITED)
For 2015 this comprises:

Fixed allowance
Medical insurance cover and actual tax return preparation costs
Provision of death-in-service benefits and administration
Payment to protect against difference between employee social security obligations in country of residence
versus UK
Total

Paul Polman
CEO (UK)

Jean-Marc Huët
CFO (UK)

(£)(a)

2015

250,000
41,053
9,797

352,555
653,405

(£)(a)(b)

2015

165,000
27,132
5,758

n/a
197,890

(a) The numbers in this table are quoted in sterling and have been translated into euros for the single figure of remuneration table above using the average

exchange rate over 2015 of €1 = £0.7254.

(b) Jean-Marc Huët ceased to be an Executive Director of Unilever on 1 October 2015.

(C) ANNUAL BONUS (AUDITED)
Annual bonus 2015 actual outcomes
• CEO – £1,866,480 (which is 92% of maximum, 185% of base salary).
• CFO – £589,050 (which is 73% of maximum, 110% of base salary – for the nine months from January through September 2015).

This includes cash and, for the CEO, the portion of annual bonus re-invested in shares under the MCIP. See below for details.

Performance against targets:

Performance metrics

Threshold

Target

Maximum

Underlying sales growth (⅓)

Free Cash Flow growth (⅓)

4.1%

11.6%

15%

PERFORMANCE

Result
vesting
(% of target)

124%

131%

Core operating margin improvement
compared to prior year (⅓)

0 percentage
points

0.3 percentage
points

Overall performance ratio (based on
actual performance bonus formula)

Actual performance ratio
(after Committee discretion)

0.6 percentage
points

100%

200%

118%

110%

At the beginning of the year, the Committee set stretching financial performance targets which management delivered against during
the course of the year. In 2015 underlying sales growth improved to 4.1%, ahead of our markets. Improvement in core operating margin
compared with 2014 was 0.3 percentage points driven by margin-accretive innovation, pricing and continued delivery from our savings
programmes, which more than offset currency-related cost increases. All categories delivered progress against their strategic priorities.
For the annual bonus calculations, we have adjusted free cash flow (FCF) downwards for one-offs from €4.8 billion to €4.3 billion.
After that adjustment, the growth in FCF was still strong, with an 11.6% improvement driven by the increase in core operating profit and
an improvement in year-end working capital. On a formulaic basis, the outcome of Unilever’s 2015 performance was 118% of target.

However, Unilever’s performance over 2015 was not without challenges. Further progress needs to be made in winning market share,
agility and cost control. Accordingly, the Committee exercised its discretion to reduce the formulaic outcome for the 2015 annual bonus
from 118% to 110%. The Committee considered this to be a fair representation of the performance delivery by the executive team during
2015. In the past six years, including 2015, the Committee has exercised its discretion to adjust the formulaic outcome of the annual bonus
calculation downwards four times and upwards twice.

Unilever Annual Report and Accounts 2015GovernanceIn determining bonus outcomes for Paul Polman, the Committee also considered his very strong personal performance and leadership,
both internally and externally. In 2015, Paul again received recognition for his work in leading Unilever and helping to promote a
sustainable and responsible long-term business model around the world. Unilever not only delivered consistent growth in underlying
sales and core operating margin together with strong cash flow in a difficult market, but also made significant progress in driving its USLP
strategy, management succession, gender balance, simplification, empowerment initiatives and in reshaping the portfolio. As a
consequence of that review, Paul Polman was awarded a personal performance multiplier of 140%. This resulted in Paul Polman receiving
a bonus of 185% of his base salary. This is calculated as follows:

Target bonus: 120% of
base salary = £1,212,000

Unilever’s 2015
performance ratio = 110%

Personal performance
multiplier = 140%

£1,866,480
(185% of base salary)

In determining bonus outcomes for Jean-Marc Huët for the nine-month period ended 30 September 2015, the Committee also considered
his personal performance and leadership, including the management of Unilever’s financial risk exposure and the continuing drive for
enterprise-wide efficiencies. During 2015 Jean-Marc successfully completed an important stage in the development of Unilever’s Finance
function and achieved a smooth succession in his role as CFO with the appointment of and handover to Graeme Pitkethly. As a
consequence of that review, Jean-Marc Huët was awarded a personal performance multiplier of 100%. This resulted in Jean-Marc Huët
receiving a bonus of 110% of his base salary pro rata for the nine-month period of service during 2015. This is calculated as follows:

Target bonus: 100% of
base salary = £535,500
(for the nine months of service
during 2015)

Unilever’s 2015
performance ratio = 110%

Personal performance
multiplier = 100%

£589,050
(110% of base salary)

MCIP 2016 AWARDS (BASED ON 2015 ANNUAL BONUS OUTCOMES)
Paul Polman elected to invest 60% (£1,119,888) of his 2015 bonus in MCIP investment shares, fully in NV shares.

(D) MCIP – UK LAW REQUIREMENT (AUDITED)

2015 OUTCOMES
This includes MCIP matching shares granted on 18 February 2013 (based on the percentage of 2012 bonus that Executive Directors had
invested in Unilever shares, as well as performance in the three-year period to 31 December 2015) which will vest on 18 February 2016.
Further details of the performance measures are disclosed below in note (E).

The values included in the single figure table for 2015 are calculated by multiplying the number of shares granted on 18 February 2013
(including additional shares in respect of accrued dividends through to 31 December 2015) by the level of vesting (98% of target awards)
and the three-month average share price to 31 December 2015 (NV €40.07 and PLC £28.43). These have been translated into euros using
the average exchange rate over 2015 (€1 = £0.7254). Jean-Marc Huët’s MCIP value in the single figure table for 2015 is pro-rated to 87%
reflecting his length of service within the vesting period.

(E) GSIP – UK LAW REQUIREMENT (AUDITED)

2015 OUTCOMES
This includes GSIP performance shares granted on 18 February 2013, based on performance in the three-year period to 31 December
2015 which will vest on 18 February 2016.

The values included in the single figure table for 2015 are calculated by multiplying the number of shares granted on 18 February 2013
(including additional shares in respect of accrued dividends through to 31 December 2015) by the level of vesting (98% of target awards)
and the three-month average share price to 31 December 2015 (NV €40.07 and PLC £28.43). These have been translated into euros using
the average exchange rate over 2015 (€1 = £0.7254). Jean-Marc Huët’s GSIP value in the single figure table for 2015 is pro-rated to 87%
reflecting his length of service within the vesting period.

Unilever Annual Report and Accounts 2015GovernanceDIRECTORS’ REMUNERATION REPORT CONTINUED

Performance against targets:

Performance metrics

Threshold

Underlying sales growth (pa) (25%)

3.8%

Core operating margin improvement (25%)

Cumulative operating cash flow (25%)

Total shareholder return (25%)(a)

Overall vesting

0 percentage
points

€13.0bn

15th

10th

PERFORMANCE

Maximum

Result
vesting
(% of target)

58%

0.37 percentage
points

0.5 percentage
points

153%

€16.6bn

€17.0bn

182%

3rd

98%

(a) Comparator group of 19 companies including Unilever. The comparator group is the same as disclosed on page 71.
25% of target awards vest for threshold performance under the three business-focused performance measures. 50% of target awards vest for threshold
performance under the TSR performance measure.

Over the past three years, Unilever has consistently delivered solid financial performance despite volatile market conditions. Underlying sales
growth during this period was 3.8% per annum and core operating margin improvement over the period was an average of 0.37 percentage
points per year, demonstrating management’s drive for consistent top and bottom line growth. Unilever also generated strong operating cash
flow in the period, with cumulative operating cash flow of €16.6 billion. Total shareholder return (TSR) over this three-year period was below
the performance of many of our peers and as such no part of the GSIP and MCIP awards related to TSR will vest. On the basis of this
performance, the Committee considers that the formulaic outcomes for GSIP and MCIP vesting are a fair reflection of Unilever’s performance
over the period and determined that the GSIP awards granted to Executive Directors in 2013 will vest at 98% of the initial award level (ie 49% of
maximum). The Committee also determined that MCIP awards granted to Executive Directors in 2013 will vest at 98% of initial award levels
(vesting of MCIP is capped at 150% for Executive Directors) ie 65% of maximum awards.

(F) CONDITIONAL SUPPLEMENTAL PENSION (AUDITED)

CEO: Paul Polman
Conditional supplemental pension provision agreed with Paul Polman on hiring, which is conditional on his remaining in employment
with Unilever to age 60 and subsequently retiring from active service or his death or total disability prior to retirement. This was £117,123
based on 12% of a capped salary of £976,028 for 2015.

CFO: Jean-Marc Huët
Jean-Marc Huët did not receive a conditional supplemental pension.

(G) SHARE INCENTIVES – DUTCH LAW REQUIREMENT (AUDITED)
As per the Dutch requirements, these costs are non-cash costs and relate to the expenses recognised for the period following IFRS 2. This
is based on share prices on grant dates and a 98% adjustment factor for GSIP shares and MCIP matching shares awarded in 2015, 2014 and
2013. Jean-Marc Huët’s GSIP and MCIP awards granted in 2014 and 2015 have lapsed in full on his departure on 1 October 2015. Further
details can be found on page 78.

Unilever Annual Report and Accounts 2015Governance

OTHER IMPLEMENTATION INFORMATION FOR 2015

SCHEME INTERESTS AWARDED IN THE YEAR (AUDITED)

PLAN

BASIS OF AWARD

MAXIMUM FACE
VALUE OF
AWARDS

THRESHOLD
VESTING (% OF
TARGET AWARD)

PERFORMANCE
PERIOD

MCIP
Conditional
matching share
award made on
13 February 2015

Based on the level of
2014 bonus paid in 2015
invested by the CEO
and CFO.

The following numbers
of matching shares
were awarded on
13 February 2015(a):

CEO:
£1,173,635(b)

CFO:
The award of the
CFO lapsed in full
on his departure
on 1 October 2015.

1 January 2015 –
31 December 2017

Four equally
weighted long-term
performance
measures. For the
three business-
focused metrics, 25%
of the target award
vests for threshold
performance. For the
TSR measure, 50%
of the target award
vests for threshold
performance.

DETAILS OF
PERFORMANCE
MEASURES

Subject to four equally
weighted performance
measures(c):
• underlying sales

growth;

• core operating

margin
improvement;

• cumulative

operating cash
flow; and
• relative total

shareholder return.

Further details are set
out on pages 70 to 71.

As above

CEO:
£3,996,536(b)

CFO:
The award of the
CFO lapsed in full
on his departure
on 1 October 2015.

GSIP
Conditional share
award made on
13 February 2015

CEO:
PLC – 0
NV – 29,128

CFO:
PLC – 2,839
NV – 2,839

Maximum vesting
results in 150% of
target awards vesting.

The CEO received a
target award of 200%
of base salary.

CEO:
PLC – 36,497
NV – 36,497

The CFO received a
target award of 175%
of base salary.

CFO:
PLC – 22,576
NV – 22,576

Maximum vesting
results in 200% of
target awards vesting,
which translates to a
maximum vesting of
400% of base salary for
the CEO and 350% of
base salary for the CFO.

(a) Under MCIP, Executive Directors are able to choose whether they invest in PLC or NV shares or a 50/50 mix. Executive Directors receive a corresponding

number of performance-related matching shares. Matching shares will be awarded in the same form as the investment shares (ie in PLC or NV shares or
a 50/50 mix). On 13 February 2015, the CEO invested 60% (£799,920) and the CFO invested 25% (£157,080) of their 2014 bonus in MCIP investment shares.
The CEO elected to invest fully in NV shares. The CFO elected to receive a 50/50 mix of PLC/NV shares.

(b) The face values included in this table are calculated by multiplying the number of shares granted on 13 February 2015 by the share price on that day of

PLC £27.89 and NV €37.03 respectively, assuming maximum performance and therefore maximum vesting of 200% for GSIP and 150% for MCIP and then
translating into sterling using an average exchange rate over 2015 of €1 = £0.7254.

(c) The actual targets for the three business-focused performance measures for the 2015 MCIP and GSIP awards have not been disclosed up front as the
Boards deem this to be commercially sensitive information as targets could reveal information about Unilever’s business plan and budgeting process
to competitors, which could be damaging to Unilever’s business interests and therefore to shareholders. Targets will be disclosed in the Directors’
Remuneration Report following the end of the relevant performance period.

Unilever Annual Report and Accounts 2015GovernanceDIRECTORS’ REMUNERATION REPORT CONTINUED

MINIMUM SHAREHOLDING REQUIREMENT AND EXECUTIVE DIRECTOR SHARE INTERESTS (UNAUDITED)
The table below shows the Executive Directors’ share ownership against the minimum shareholding requirements as at 31 December
2015 and the interest in NV and PLC ordinary shares of Executive Directors and their connected persons as at 31 December 2015.

When calculating an Executive Director’s personal shareholding the following methodology is used:
• Base salary at the date of measurement.
• Shares in either Unilever PLC or Unilever N.V. (or a combination of both) will qualify provided they are personally owned by

the Executive Director or by a member of his (immediate) family (‘connected person’).

• Shares purchased under the MCIP from the annual bonus will qualify as from the moment of purchase as these are held in

the individual’s name and are not subject to further restrictions.

• Shares or entitlements to shares that are subject only to the Director remaining in employment will qualify on a net of tax basis.
• Shares awarded on a conditional basis by way of the GSIP, or the MCIP, will not qualify until the moment of vesting (ie once

the precise number of shares is fixed after the three-year vesting period has elapsed).

• The shares will be valued on the date of measurement or, if that outcome fails the personal shareholding test, on the date

of acquisition. The share price for the relevant measurement date will be based on the average closing share prices and the
euro/sterling/US dollar exchange rates from the 60 calendar days prior to the measurement date.

Executive Directors are required to hold shares to the value of 100% of their shareholding requirement for 12 months post cessation
of employment at Unilever, and 50% of these shares for 24 months post cessation of employment with Unilever.

All ULE members are required to build a shareholding of 300% of base salary. This requirement is 150% of base salary for the ‘Top 100’
management layer below ULE.

EXECUTIVE DIRECTORS’ AND THEIR CONNECTED PERSONS’ INTERESTS IN SHARES AND SHARE OWNERSHIP (AUDITED)

Share ownership
guideline as % of
base salary

Have guidelines
been met?

Actual share
ownership (as a %

Shares held as at

1 January 2015(b)

Shares held as at
31 December 2015(b)

of base salary)(a)

PLC

CEO: Paul Polman

CFO: Jean-Marc Huët

400

300

yes

n/a

2,755

486,191

287,296

655,307

297,008

n/a

118,050

118,559

145,034(c) 145,840(c)(d)

(a) Calculated based on the minimum shareholding requirements and methodology set out above and the base salaries as included for the CEO and CFO in the

single figure table.

(b) NV shares are ordinary €0.16 shares and PLC shares are ordinary 3⅟9p shares.
(c) Shares held on 1 October 2015 (the date on which Jean-Marc Huët ceased to be an Executive Director of Unilever).
(d) 72,920 PLC shares of the total of 145,840 PLC shares are held by Jean-Marc Huët’s connected persons.

There has been no change in Paul Polman’s interests in shares between 31 December 2015 and 15 February 2016.

The voting rights of the Directors (Executive and Non-Executive) and members of the ULE, including Graeme Pitkethly, who hold
interests in the share capital of NV and PLC are the same as for other holders of the class of shares indicated. As at 15 February 2016
none of the Directors’ (Executive and Non-Executive) or other ULE members’, including Graeme Pitkethly’s, shareholdings amounted
to more than 1% of the issued shares in that class of share, excluding the holdings of the Leverhulme Trust and the Leverhulme Trade
Charities Trust, which amounted to 5.5%. All shareholdings in the table above are beneficial. In addition, 68,531,182 shares are held by
the Leverhulme Trust and 2,035,582 shares are held by the Leverhulme Trade Charities Trust, of which Paul Polman is a director.

INFORMATION IN RELATION TO OUTSTANDING SHARE INCENTIVE AWARDS
As at 31 December 2015, Paul Polman held awards over a total of 380,206 shares which are subject to performance conditions.
Jean-Marc Huët held, at the date he ceased to be an Executive Director of Unilever, awards over a total of 182,216 shares which
were subject to performance conditions. Jean-Marc Huët’s GSIP and MCIP awards granted in 2014 and 2015 have lapsed in full
on his departure on 1 October 2015.

There are no awards of shares without performance conditions and no awards in the form of options.

Unilever Annual Report and Accounts 2015GovernanceMANAGEMENT CO-INVESTMENT PLAN (AUDITED)
The following conditional shares vested during 2015 or were outstanding at 31 December 2015 under the MCIP:

Balance of
conditional shares
at 1 January 2015

Conditional shares

awarded in 2015(a)

Balance of
conditional shares
at 31 December 2015

Original
award

87,182(b)
44,600(b)

13,701(c)
13,775(c)

Performance period
1 January 2015 to
31 December 2017

29,128
0

2,839
2,839

Dividend
shares
accrued
during
the year(d)

2,829
869

275
302

Additional
shares
earned in
2015

4,154
4,193

854
861

Vested in

2015(e)

23,931
24,153

4,914
4,960

Price at
award

€37.03
£27.89

Price at
vesting

€37.04
£28.01

Shares
lapsed

n/a
n/a

7,852(f)
7,877(f)

No. of
shares

99,362
25,509

4,903
4,940

Paul Polman

Jean-Marc Huët

Share
type

NV
PLC

(a) Each award of conditional matching shares vests three years after the date of the award, subject to performance conditions (further details can be found

on pages 70 to 71). Awards are all subject to continued employment and maintenance of the underlying investment shares. Under MCIP, Executive Directors
are able to choose whether they invest in PLC or NV shares or a 50/50 mix. Executive Directors receive a corresponding number of performance-related
matching shares. Matching shares will be awarded in the same form as the investment shares (ie in PLC or NV shares or a 50/50 mix). On 13 February 2015,
Paul Polman and Jean-Marc Huët invested in the MCIP 60% and 25% respectively of their annual bonus earned during 2014 and paid in 2015 and received a
corresponding award of matching shares. For Paul Polman these will vest, subject to performance, on 13 February 2018.

(b) This includes a grant of 17,772 of each of NV and PLC shares made on 17 February 2012 (121% of which vested on 17 February 2015), a grant of 22,999 of each
NV and PLC shares made on 18 February 2013 (vesting 18 February 2016) and a grant of 41,775 NV shares made on 14 February 2014 (vesting 14 February
2017) and 4,636 NV shares and 3,829 PLC shares from reinvested dividends accrued in prior years in respect of awards.

(c) This includes a grant of 3,649 of each of NV and PLC shares made on 17 February 2012 (121% of which vested on 17 February 2015), a grant of 5,157 of each

NV and PLC shares made on 18 February 2013 (pro-rated vesting on 18 February 2016 – reference is made to ‘Payments to former Directors’ on page 78) and
a grant of 4,036 of each of NV and PLC shares made on 14 February 2014 (which were due to vest on 14 February 2017 – see footnote (f) below) and 859 NV
shares and 933 PLC shares from reinvested dividends accrued in prior years in respect of awards.

(d) Reflects reinvested dividend equivalents accrued during 2015 and subject to the same performance conditions as the underlying matching shares.
(e) The 17 February 2012 grant vested on 17 February 2015 at 121%. In accordance with Unilever’s Remuneration Policy (www.unilever.com/ara2015/downloads),

Executive Directors are able to choose whether they receive any shares that are due to vest under MCIP in PLC or NV shares or keep the 50/50 mix. Paul
Polman elected for share choice and chose to receive his shares in the form of 100% NV shares. Therefore, upon vesting, his 17 February 2012 PLC award
was cancelled and converted and delivered to him as 24,744 NV shares (resulting in a total vesting for the 17 February grant of 48,675 NV shares).

(f) 664 NV and 663 PLC shares of the 18 February 2013 grant of both 5,157 NV and PLC shares, the 14 February 2014 grant of both 4,036 of each NV and PLC

shares and the 13 February 2015 grant of both 2,839 of each NV and PLC shares and 313 NV shares and 339 PLC shares from reinvested dividends accrued
in prior years in respect of these grants, lapsed upon the departure of Jean-Marc Huët on 1 October 2015.

GLOBAL SHARE INCENTIVE PLAN (AUDITED)
The following conditional shares vested during 2015 or were outstanding at 31 December 2015 under the GSIP:

Balance of
conditional shares
at 1 January 2015

Conditional shares

awarded in 2015(a)

Balance of
conditional shares
at 31 December 2015

Paul Polman

Jean-Marc Huët

Share
type

NV
PLC

Original
award

130,219(b)
130,920(b)

87,086(c)
87,580(c)

Performance period
1 January 2015 to
31 December 2017

36,497
36,497

22,576
22,576

Dividend
shares
accrued
during
the year(d)

3,630
4,050

1,651
1,805

Additional
shares
earned in
2015

9,039
9,123

6,965
7,030

Vested in

2015(e)

52,079
52,561

40,125
40,496

Price at
award

€37.03
£27.89

Price at
vesting

€37.04
£28.01

Shares
lapsed

n/a
n/a

54,808(f)
54,973(f)

No. of
shares

127,306
128,029

23,345
23,552

(a) Each award of conditional shares vests three years after the date of the award, subject to performance conditions (further details can be found on pages 70

to 71). The 2015 award was made on 13 February 2015 (vesting 13 February 2018).

(b) This includes a grant of 38,676 of each of NV and PLC shares made on 17 February 2012 (121% of which vested on 17 February 2015), a grant of 39,698 of each
of NV and PLC shares made on 18 February 2013 (vesting 18 February 2016) and a grant of 43,700 of each of NV and PLC shares made on 14 February 2014
(vesting 14 February 2017) and 8,145 NV shares and 8,846 PLC shares from reinvested dividends accrued in prior years in respect of awards.

(c) This includes a grant of 29,798 of each of NV and PLC shares made on 17 February 2012 (121% of the award vested on 17 February 2015), a grant of 24,556 of

each of NV and PLC shares made on 18 February 2013 (pro-rated vesting on 18 February 2016 – reference is made to ‘Payments to former Directors’ on page
78) and a grant of 27,031 of each of NV and PLC shares made on 14 February 2014 (which were due to vest on 14 February 2017 – see footnote (f) below) and
5,701 NV shares and 6,195 PLC shares from reinvested dividends accrued in prior years in respect of awards.

(d) Reflects reinvested dividend equivalents accrued during 2015 and subject to the same performance conditions as the underlying GSIP shares.
(e) The 17 February 2012 grant vested on 17 February 2015 at 121%. In accordance with Unilever’s Remuneration Policy (www.unilever.com/ara2015/downloads),

Executive Directors are able to choose whether they receive any shares that are due to vest under GSIP in PLC or NV shares or keep the 50/50 mix. Paul
Polman elected for share choice and chose to receive his shares in the form of 100% NV shares. Therefore, upon vesting, his 17 February 2012 PLC award
was cancelled and converted and delivered to him as 53,847 NV shares (resulting in a total vesting for the 17 February grant of 105,926 NV shares).

(f) 3,159 NV and 3,159 PLC shares of the 18 February 2013 grant of both 24,556 NV and PLC shares, the 14 February 2014 grant of both 27,031 of each NV and

PLC shares and the 13 February 2015 grant of both 22,576 of each NV and PLC shares and 2,042 NV shares and 2,207 PLC shares from reinvested dividends
accrued in prior years in respect of these grants, lapsed upon the departure of Jean-Marc Huët on 1 October 2015.

On 11 February 2016, Paul Polman received an award of 35,115 NV and 35,115 PLC performance-related shares under the GSIP.

Unilever Annual Report and Accounts 2015Governance

DIRECTORS’ REMUNERATION REPORT CONTINUED

EXECUTIVE DIRECTORS’ SERVICE CONTRACTS
Starting dates of our Executive Directors’ service contracts:
• Paul Polman: 1 October 2008 (signed on 7 October 2008); and
• Jean-Marc Huët: 1 February 2010 (signed on 19 March 2010) and terminated with effect from 1 October 2015.

The CEO’s service contract shall end upon termination and is available to shareholders to view at the AGMs or on request from the
Group Secretary.

Service contracts can be terminated with 12 months’ notice from Unilever or six months’ notice from the Executive Director. A payment in
lieu of notice can be made of no more than one year’s base salary, fixed allowance and other benefits unless the Boards, at the proposal of
the Committee, find this manifestly unreasonable given the circumstances or unless dictated by applicable law. Other payments that can
be made to Executive Directors in the event of loss of office are disclosed in our Remuneration Policy which is available on our website.

www.unilever.com/ara2015/downloads

PAYMENTS TO FORMER DIRECTORS (AUDITED)
Leaving arrangement Jean-Marc Huët
Jean-Marc Huët tendered his resignation as CFO and as an Executive Director of Unilever on 18 May 2015. He remained an employee and
Executive Director until 1 October 2015, actively engaged in the business and ensuring a handover of all responsibilities. He continued to
receive his regular salary, fixed allowance and benefits until 1 October 2015. The single figure remuneration table on page 71 details the
remuneration Jean-Marc Huët received during 2015.

Based on his personal performance the Committee determined that Jean-Marc Huët would receive an annual bonus, pro-rated to
1 October 2015, as shown on page 73.

In accordance with the Remuneration Policy and the relevant GSIP and MCIP share plan rules, the Committee has exercised its
discretion to treat Jean-Marc Huët as a ‘good leaver’ in respect of the 2013 GSIP and MCIP awards vesting 18 February 2016. These
awards will be pro-rated to 87% reflecting Jean-Marc Huët’s length of service within the vesting period and will vest at 98%.

The following outstanding share awards held by Jean-Marc Huët have vesting dates in the future and lapsed in full upon his departure
from Unilever, in accordance with the rules of each plan:

Award

GSIP

MCIP

GSIP

MCIP

GSIP

MCIP

Dividends accrued on lapsed awards

(a) Pro-rated amount as described above.

Date of grant

Vesting Date

18 February 2013

18 February 2016

18 February 2013

18 February 2016

14 February 2014

14 February 2017

14 February 2014

14 February 2017

13 February 2015

13 February 2018

13 February 2015

13 February 2018

Shares lapsed as at
1 October 2015

PLC

3,159(a)

663(a)

27,031

4,036

22,576

2,839

2,546

3,159(a)

664(a)

27,031

4,036

22,576

2,839

2,355

Unilever made a payment of £31,800 in lieu of Jean-Marc Huët’s 2016 tax return preparation and advisory services. Jean-Marc will not be
receiving any payments relating to his departure from Unilever.

PAYMENTS FOR LOSS OF OFFICE (AUDITED)
There were no payments for loss of office.

Unilever Annual Report and Accounts 2015GovernanceIMPLEMENTATION OF THE REMUNERATION POLICY IN 2016 FOR NON-EXECUTIVE DIRECTORS
The current Non-Executive Director fee levels will not be changed for 2016. The table below outlines the current 2016 fee structure:

Role

Basic Non-Executive Director fee

Current Chairman (all-inclusive figure)

Vice-Chairman

Membership of the Nominating and Corporate Governance, Compensation
or Corporate Responsibility Committee

Membership of the Audit Committee

Chair of the Nominating and Corporate Governance, Compensation
or Corporate Responsibility Committee

Chair of the Audit Committee

Reference
sterling
total fees

£75,000

€48,065

£550,000

€352,474

£30,000

€19,226

£10,000

£15,000

€6,409

€9,613

£20,000

£30,000

€12,817

€19,226

and

PLC

£37,500

£275,000

£15,000

£5,000

£7,500

£10,000

£15,000

All reasonable travel and other expenses incurred by Non-Executive Directors in the course of performing their duties are considered
to be business expenses. Non-Executive Directors also receive expenses relating to the attendance of the Director’s spouse or partner,
when they are invited by Unilever.

SINGLE FIGURE OF REMUNERATION IN 2015 FOR NON-EXECUTIVE DIRECTORS (AUDITED)
The table below shows a single figure of remuneration for each of our Non-Executive Directors, for the years 2014 and 2015.

Non-Executive Director

Total

2015

2014

Fees(a)
€’000

Benefits(b)
€’000

Total
remuneration
€’000

Fees(a)
€’000

Benefits(b)
€’000

Total
remuneration
€’000

732
75
122
57
126
149
n/a
47
80
120
120
38
133
126
73
42

2,040

2
4
–
–
–
–
n/a
–
–
–
–
–
–
1
–
–

734
79
122
57
126
149
n/a
47
80
120
120
38
133
127
73
42

654
n/a
101
n/a
113
101
42
125
n/a
107
107
101
107
15
196
113

2,047

1,882

3
n/a
–
n/a
–
11
–
–
n/a
–
–
–
–
1
3
2

657
n/a
101
n/a
113
112
42
125
n/a
107
107
101
107
16
199
115

1,902

(a) This includes fees received from NV in euros and PLC in sterling for 2014 and 2015 respectively. Includes basic Non-Executive Director fee and Committee

chairmanship and/or membership.

(b) The only benefit received relates to travel by spouses or partners where they are invited by Unilever.
(c) Chairman.
(d) Chair, Corporate Responsibility Committee.
(e) Vice-Chairman and Chair of the Compensation Committee.
(f) Chose not to put himself forward for re-election at the May 2014 AGMs.
(g) Chose not to put himself forward for re-election at the April 2015 AGMs.
(h) Chair, Audit Committee.
(i) Chair, Nominating and Corporate Governance Committee.

We do not grant our Non-Executive Directors any personal loans or guarantees, nor are they entitled to any severance payments.

Unilever Annual Report and Accounts 2015GovernanceDIRECTORS’ REMUNERATION REPORT CONTINUED

NON-EXECUTIVE DIRECTORS’ INTERESTS IN SHARES (AUDITED)
Non-Executive Directors are encouraged to build up a personal shareholding of at least one times their annual fees over the five years
from 1 January 2012 (or appointment if later).

The table shows the interests in NV and PLC ordinary shares of Non-Executive Directors and their connected persons as at 31 December
2015. There has been no change in these interests between 31 December 2015 and 15 February 2016.

Michael Treschow

Nils Andersen(a)

Laura Cha

Vittorio Colao(b)

Louise Fresco

Ann Fudge

Byron Grote

Judith Hartmann(a)

Shares held at
1 January
2015

15,158
15,000

n/a
n/a

–
200

n/a
n/a

1,800
–

–
3,950

8,200
7,200

n/a
n/a

Shares
held at
31 December
2015

15,158
15,000

5,800
–

310
208

2,600
–

1,800
–

–
5,000

8,200(c)
7,200(c)

–
–

Share type

NV
PLC

NV NY
PLC ADRs

NV
PLC

Mary Ma

Hixonia Nyasulu

Sir Malcolm Rifkind

John Rishton

Feike Sijbesma

Kees Storm

Paul Walsh

Shares held at
1 January
2015

Shares
held at
31 December
2015

Share type

NV
PLC

–
400

600
750

–
3,000

3,340
–

2,500
–

7,500
–

–
2,000

–
400

600
750

–

3,000(c)

3,340
–

6,000
–

7,500(c)

–

2,000(c)

(a) Elected at April 2015 AGMs.
(b) Elected at April 2015 AGMs with effect from 1 July 2015.
(c) Shares held at 30 April 2015 (the date by which Byron Grote,
Sir Malcolm Rifkind, Kees Storm and Paul Walsh chose not
to put themselves forward for re-election).

NON-EXECUTIVE DIRECTORS’ LETTERS OF APPOINTMENT
All Non-Executive Directors were re-elected to the Boards at the 2015 AGMs, with the exception of Nils Andersen and Judith Hartmann
who were elected for the first time. Vittorio Colao was also elected for the first time at the 2015 AGMs, with effect from 1 July 2015.
Byron Grote, Sir Malcolm Rifkind, Kees Storm and Paul Walsh chose not to put themselves forward for re-election.

Non-Executive Director

Michael Treschow
Nils Andersen
Laura Cha
Vittorio Colao
Louise Fresco
Ann Fudge
Byron Grote
Judith Hartmann
Mary Ma
Hixonia Nyasulu
Sir Malcolm Rifkind
John Rishton
Feike Sijbesma
Kees Storm
Paul Walsh

Date first appointed to
the Board

Effective date of current
appointment(a)

16 May 2007
30 April 2015
15 May 2013
1 July 2015
14 May 2009
14 May 2009
09 May 2006
30 April 2015
15 May 2013
16 May 2007
12 May 2010
15 May 2013
01 November 2014
09 May 2006
14 May 2009

30 April 2015
30 April 2015
30 April 2015
1 July 2015
30 April 2015
30 April 2015
n/a
30 April 2015
30 April 2015
30 April 2015
n/a
30 April 2015
30 April 2015
n/a
n/a

(a) The unexpired term for all Non-Executive Directors’ letters of appointment is the period up to the 2016 AGMs, as they all, unless they are retiring, submit

themselves for annual re-election.

Unilever Annual Report and Accounts 2015GovernanceOTHER DISCLOSURES RELATED TO DIRECTORS’ REMUNERATION

SERVING AS A NON-EXECUTIVE ON THE BOARD OF ANOTHER COMPANY
Executive Directors serving as non-executive directors on the boards of other companies are permitted to retain all remuneration
and fees earned from outside directorships subject to a maximum of one outside listed directorship (see ‘Independence and Conflicts’
on page 46 for further details).

Paul Polman is a non-executive director of The Dow Chemical Company and received an annual fee of €103,529 (US$115,000 based on
the average exchange rate over the year 2015 of €1 = US$1.1108). In addition, he received a restricted award of 2,630 ordinary shares with
a nominal value of US$2.50 per share in the capital of The Dow Chemical Company. The shares include the rights to vote and to receive
dividends thereon. The shares cannot be sold or transferred until Paul Polman leaves the board of directors of The Dow Chemical
Company, and in any case not earlier than 15 May 2017.

Jean-Marc Huët is a non-executive director of the unlisted company Delta Topco Limited and received a fee of €162,045 (US$180,000).
Furthermore, Jean-Marc Huët is a non-executive director of Heineken N.V. and received a fee of €60,000. These fees relate to the period
starting from 1 January 2015 until 1 October 2015, the date on which Jean-Marc Huët ceased to be an Executive Director of Unilever.

SEVEN-YEAR HISTORICAL TOTAL SHAREHOLDER RETURN (TSR) PERFORMANCE
The table below includes:
• growth in the value of a hypothetical £100 holding over seven years’ FTSE 100 comparison based on 30-trading-day average values; and
• growth in the value of a hypothetical €100 investment over seven years’ AEX comparison based on 30-trading-day average values.

The Committee has decided to show Unilever’s performance against the FTSE 100 Index, London and also the Euronext 100 index (AEX),
Amsterdam as these are the most relevant indices in the UK and the Netherlands where we have our principal listings. Unilever is a
constituent of both these indices.

Dec 2008

Dec 2009

Dec 2010

Dec 2011

Dec 2012

Dec 2013

Dec 2014

Dec 2015

g
n
d
l
o
h
€
/
£
l
a
c
i
t
e
h
t
o
p
y
h
f
o
e
u
l
a
V

300

280

260

240

220

200

180

160

140

120

100

Unilever NV

Unilever PLC

FTSE 100

AEX

CEO SINGLE FIGURE SEVEN-YEAR HISTORY
The table below shows the seven-year history of the CEO single figure of total remuneration:

CEO
Single figure of total remuneration (€‘000)

3,859

6,292

6,010

7,852

7,740

9,561

10,403

2009

2010

2011

2012

2013

2014

2015

Annual bonus award rates against maximum opportunity

82%

GSIP performance shares vesting rates against
maximum opportunity

MCIP matching shares vesting rates against
maximum opportunity

Share Matching Plan vesting rates against
maximum opportunity(a)

(a) Shown in year of award.

80%

47%

n/a

100%

68%

100%

44%

55%

n/a

78%

64%

n/a

66%

61%

81%

92%

49%

65%

n/a

Unilever Annual Report and Accounts 2015Governance

DIRECTORS’ REMUNERATION REPORT CONTINUED

PERCENTAGE CHANGE IN REMUNERATION OF DIRECTOR UNDERTAKING THE ROLE OF CHIEF EXECUTIVE OFFICER
The table below shows the percentage change from 2014 to 2015 for base salary, bonus and benefits (excluding pension) for both the
CEO and all UK and Dutch management in Unilever. The subset of UK and Dutch management has been used as a fair representation
of our dual listing status.

% change from 2014 to 2015

CEO(a)(b)
UK and Dutch management(c)

Salary

11.3%
10.3%

Bonus

55.8%
77.8%

Benefits
(not including
pension)

14.5%
3.8%

(a) Calculated using the data from the Executive Directors single figure table on page 71.
(b) It is noted that although the CEO’s salary has increased by 11.3% in the above table, this is due to currency movements, rather than a change in base salary which

was £1,010,000 in both 2014 and 2015. Currency movements also had a similar impact on benefits and bonus.

(c) In addition to the above, while the table shows that the average base salary costs for all employees increased by 10.3% for the subset of UK and Dutch
Management, this is driven by a proportionately larger increase in the total headcount during the year. The average increase was approximately 12.3%
if the 2014 UK and Dutch management population remain constant. The same applies for both benefits and bonus numbers where, on a constant basis,
the average benefit provision increased by 78.9% rather than 3.8% and the bonuses increased by 108.4% rather than the 77.8% disclosed.

RELATIVE IMPORTANCE OF SPEND ON PAY
The chart below shows the relative spend on pay compared with dividends paid to Unilever shareholders and core earnings. Core
earnings represent the net profit attributable to Unilever shareholders, adjusted for non-core items. Over time, both core earnings
and core earnings growth provide a good reference point to compare spend on pay.

RELATIVE IMPORTANCE OF SPEND ON PAY

8.3%

12.4%

6.5%

€7,000m

€6,000m

€5,000m

€4,000m

€3,000m

€2,000m

€1,000m

€0m

Core earnings(a)

Dividends paid to
Unilever shareholders

Total staff costs

2014

2015

In calculating core earnings, net profit attributable to shareholders’
(a)
equity is adjusted to eliminate the post tax impact of non-core items.
Refer to note 7, and the table entitled ‘Calculation of core earnings’
on page 108 for reconciliation of core earnings to net profit attributable
to shareholders’ equity.

THE COMPENSATION COMMITTEE
In line with the UK Corporate Governance Code requirement D.2.1, the Committee’s terms of reference state it shall be comprised of
three Non-Executive Directors (other than the Chairman, who may be appointed as an additional member). The quorum for a meeting of
the Committee is two Non-Executive Directors.

During 2015 the Committee’s membership changed significantly, due to directors choosing not to put themselves forward for re-election,
and being appointed. In April 2015, Kees Storm and Paul Walsh chose not to put themselves forward for re-election as Non-Executive
Directors. Ann Fudge succeeded Paul Walsh as chair of the Committee and Nils Andersen joined the Committee as a member at this time.
From 30 April 2015 until 1 July 2015 the Committee comprised three Non-Executive Directors including the Chairman, Michael Treschow.
Vittorio Colao joined the Committee on 1 July 2015, immediately upon his appointment as a Non-Executive Director becoming effective.

The Committee reviewed its terms of reference during the year. The Committee’s revised terms of reference are contained within
‘The Governance of Unilever’, and are also set out on our website.

www.unilever.com/corporategovernance

Pursuant to the Committee’s self-assessment carried out in 2014, a specific remuneration module was added to the induction
programme for Non-Executive Directors in 2015. As part of the internal Board evaluation carried out in 2015, the Boards evaluated
the performance of the Committee. The Committee also carried out an assessment of its own performance in 2015. Whilst overall
the Committee members concluded that the Committee is performing well, the Committee has agreed to further enhance its
effectiveness and that of the Boards by keeping the Boards informed of the progress of the Committee’s review of the executive
remuneration framework in 2016, including any consultations with shareholders, in a timely manner so as to further enhance the Boards’
decision-making around proposals to extend or modify the Remuneration Policy.

Unilever Annual Report and Accounts 2015GovernanceADVISERS
While it is the Committee’s responsibility to exercise independent judgement, the Committee does request advice from management
and professional advisers, as appropriate, to ensure that its decisions are fully informed given the internal and external environment.

The Committee appointed Tom Gosling of PricewaterhouseCoopers (PwC) to provide independent advice on various matters it
considered. The wider PwC firm has also provided tax and consultancy services to Unilever including tax compliance, transfer pricing,
R&D and grant claims, other tax related services, contract compliance reviews, finance controllers’ training, internal audit advice and
secondees, third party risk and compliance advice, sustainability assurance and consulting, and financial due diligence.

PwC is a member of the Remuneration Consultants Group and, as such, voluntarily operates under the code of conduct in relation
to executive remuneration consulting in the UK, which is available at www.remunerationconsultantsgroup.com.

www.remunerationconsultantsgroup.com

The Committee is satisfied that the PwC engagement partner and team, which provide remuneration advice to the Committee, do not
have connections with Unilever N.V. or Unilever PLC that might impair their independence. The Committee reviewed the potential for
conflicts of interest and judged that there were appropriate safeguards against such conflicts. The fees paid to PwC in relation to advice
provided to the Committee in the year to 31 December 2015 were £30,000. This figure is calculated based on time spent and expenses
incurred for the majority of advice provided, but on occasion for specific projects a fixed fee may be agreed.

During the year, the Committee also sought input from the CEO (Paul Polman), the Chief Human Resources Officer (Doug Baillie) and
the SVP Global Head of Reward (Peter Newhouse) on various subjects including the remuneration of senior management. No individual
Executive Director was present when their own remuneration was being discussed to ensure a conflict of interest did not arise. The
Committee also received legal and governance advice from the Group Secretary (Tonia Lovell).

CLARIFICATION STATEMENT
After publication of our Directors’ Remuneration Report 2013 the Committee issued a clarification statement at the request of The
Investment Association (previously: IMA and ABI). The statement is available on our website. The statement confirms that we will not
make share awards higher than the maximum awards stated in our Remuneration Policy for existing and newly hired Executive Directors
without prior shareholder approval. It further clarifies that awards to newly hired Executive Directors to buy out remuneration items on
leaving the previous employer as provided in the new hires policy will be done under the GSIP. Consequently, under such exceptional
circumstances, the aggregated GSIP share awards for a newly hired Executive Director may be higher than the maximum annual award
set out in the Remuneration Policy. As stated in the Remuneration Policy in relation to new hires, we will inform shareholders of any such
buyout awards when announcing the appointment.

www.unilever.com/ara2015/downloads

SHAREHOLDER VOTING
Unilever remains committed to ongoing shareholder dialogue and takes an active interest in voting outcomes. In the event of a substantial
vote against a resolution in relation to Directors’ remuneration, Unilever would seek to understand the reasons for any such vote and
would set out in the following Annual Report and Accounts any actions in response to it.

The following table sets out actual voting in respect of our previous report:

Voting outcome (% of votes)

For

Against

2014 Directors’ Remuneration Report (excluding the Directors’ Remuneration Policy)
(2015 AGM)(a)

PLC

96.28%

3.72%

(a) 8,729,239 votes were withheld (approximately 0.68% of share capital).

The Directors’ Remuneration Report is not subject to a shareholder vote in the Netherlands.

The Directors’ Remuneration Report has been approved by the Boards and signed on their behalf by Tonia Lovell, Group Secretary.

Unilever Annual Report and Accounts 2015GovernanceFINANCIAL STATEMENTS
STATEMENT OF DIRECTORS’ RESPONSIBILITIES

ANNUAL ACCOUNTS
The Directors are required by Part 9 of Book 2 of the Civil Code
in the Netherlands and the UK Companies Act 2006 to prepare
accounts for each financial year which give a true and fair view
of the state of affairs of the Unilever Group, and the NV and PLC
entities, as at the end of the financial year and of the profit or
loss and cash flows for that year.

The Directors consider that, in preparing the accounts, the Group
and the NV and PLC entities have used the most appropriate
accounting policies, consistently applied and supported by
reasonable and prudent judgements and estimates, and that all
International Financial Reporting Standards as adopted by the EU
and as issued by the International Accounting Standards Board
(in the case of the consolidated financial statements), Financial
Reporting Standard 101 ‘Reduced Disclosure Framework’ (FRS
101) (in the case of the PLC parent company accounts) and Dutch
law (in the case of the NV parent company accounts) which they
consider to be applicable have been followed.

The Directors have responsibility for ensuring that NV and PLC
keep accounting records which disclose with reasonable accuracy
their financial position and which enable the Directors to ensure
that the accounts comply with the relevant legislation. They also
have a general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Group, and
to prevent and detect fraud and other irregularities.

This statement, which should be read in conjunction with the
Independent Auditors’ reports, is made with a view to
distinguishing for shareholders the respective responsibilities
of the Directors and of the auditors in relation to the accounts.

A copy of the financial statements of the Unilever Group is
placed on our website at www.unilever.com/investorrelations.
The maintenance and integrity of the website are the responsibility
of the Directors, and the work carried out by the auditors does not
involve consideration of these matters. Accordingly, the auditors
accept no responsibility for any changes that may have occurred
to the financial statements since they were initially placed on the
website. Legislation in the UK and the Netherlands governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.

UK law sets out additional responsibilities for the Directors of PLC
regarding disclosure of information to auditors. Disclosure in
respect of these responsibilities is made on page 51.

DIRECTORS’ RESPONSIBILITY STATEMENT
Each of the Directors confirms that, to the best of his or her
knowledge:
• The Annual Report and Accounts, taken as a whole, is fair,

balanced and understandable, and provides the information
necessary for shareholders to assess the Group’s position and
performance, business model and strategy;

• The financial statements which have been prepared in

accordance with International Financial Reporting Standards
as adopted by the EU and as issued by the International
Accounting Standards Board (in the case of the consolidated
financial statements) and Financial Reporting Standard 101
‘Reduced Disclosure Framework’ (FRS 101) (in the
case of the PLC parent company accounts) and UK accounting
standards and Part 9 of Book 2 of the Dutch Civil Code (in the
case of the NV parent company accounts), give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Group and the undertakings included in the
consolidation taken as a whole; and

• The Strategic Report includes a fair review of the development
and performance of the business and the position of the Group
and the undertakings included in the consolidation taken as a
whole, together with a description of the principal risks and
uncertainties that they face.

The Directors and their roles are listed on pages 45 and 58.

GOING CONCERN
The activities of the Group, together with the factors likely to affect
its future development, performance, the financial position of the
Group, its cash flows, liquidity position and borrowing facilities are
described in the Strategic Report on pages 2 to 39. In addition, we
describe in notes 15 to 18 on pages 115 to 129 the Group’s
objectives, policies and processes for managing its capital; its
financial risk management objectives; details of its financial
instruments and hedging activities and its exposures to credit and
liquidity risk. Although not assessed over the same period as the
going concern, the viability of the Group has been assessed on
pages 53 and 54.

The Group has considerable financial resources together with
established business relationships with many customers and
suppliers in countries throughout the world. As a consequence,
the Directors believe that the Group is well placed to manage its
business risks successfully despite the current uncertain outlook.

After making enquiries, the Directors consider it appropriate to
adopt the going concern basis of accounting in preparing this
Annual Report and Accounts.

INTERNAL AND DISCLOSURE CONTROLS AND
PROCEDURES
Please refer to pages 53 to 57 for a discussion of Unilever’s
principal risk factors and to pages 54 to 57 for commentary
on the Group’s approach to risk management and control.

Unilever Annual Report and Accounts 2015Financial statementsINDEPENDENT AUDITORS’ REPORTS

NETHERLANDS – KPMG ACCOUNTANTS N.V.

UNITED KINGDOM – KPMG LLP

TO: THE GENERAL MEETING OF UNILEVER N.V.

TO: THE MEMBERS OF UNILEVER PLC ONLY

For the purpose of these reports, the terms ‘we’ and ‘our’ denote KPMG Accountants N.V. in relation to the Netherlands responsibilities
and reporting obligations to the General Meeting of Unilever N.V. and KPMG LLP in relation to UK responsibilities and reporting obligations
to the members of Unilever PLC. The Unilever Group (‘the Group’) consists of Unilever PLC, Unilever N.V. and the entities they controlled during
the financial year. The reports of KPMG Accountants N.V. and KPMG LLP are presented in the left and right hand columns of this report
respectively. Where separate columns are not presented, the content of the reports of KPMG Accountants N.V. and KPMG LLP are identical.

The financial statements (‘the Financial Statements’) comprise:
• the consolidated financial statements of the Group (‘the Consolidated Financial Statements’);
• the parent company financial statements of Unilever N.V. (‘the NV Company Accounts’); and
• the parent company financial statements of Unilever PLC (‘the PLC Company Accounts’),

each of which are defined below.

Unqualified
audit opinion

Materiality
was set at
€350 million
(2014: €350 million)

Key audit
matters

Revenue recognition
Indirect tax provisions
and contingencies

Direct tax
provisions and
contingencies

Audits at a
component level
resulting in a
coverage of 70%
of revenue
(2014: 63%)

Materiality

Audit scope

OPINIONS AND CONCLUSIONS ARISING FROM OUR AUDIT
1. OUR OPINIONS ON THE FINANCIAL STATEMENTS ARE UNMODIFIED

We have audited the consolidated financial statements of the Group for the year ended 31 December 2015 which comprise the
consolidated balance sheet as at 31 December 2015, the consolidated statements of income, comprehensive income, changes
in equity and cash flows for the year then ended and notes to the Consolidated Financial Statements, including a summary of the
significant accounting policies and other explanatory information. In addition, KPMG Accountants N.V. has audited the NV Company
Accounts (which comprise the company balance sheet as at 31 December 2015, the company profit and loss account for 2015 and the
notes comprising a summary of the significant accounting policies and other explanatory information) and KPMG LLP has audited
the PLC Company Accounts (which comprise the company balance sheet as at 31 December 2015 and the notes to the
PLC Company Accounts, including the summary of the significant accounting policies and other explanatory information).

In our opinion:
• the Consolidated Financial Statements give a true and fair

view of the financial position of the Group as at 31 December
2015 and of its result and its cash flows for the year then
ended in accordance with International Financial Reporting
Standards as adopted by the European Union (IFRS as
adopted by the EU) and with Part 9 of Book 2 of the
Netherlands Civil Code; and

• the NV Company Accounts give a true and fair view of the
financial position of Unilever N.V. as at 31 December 2015
and of its result for 2015 in accordance with United
Kingdom accounting standards, including FRS 101
‘Reduced Disclosure Framework’ and Part 9 of Book 2
of the Netherlands Civil Code.

Basis for our opinion
We conducted our audit in accordance with Dutch law,
including the Dutch Standards on Auditing. Our responsibilities
under those standards are further described in the ‘Auditor’s
responsibilities’ section of our report.

We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.

In our opinion:
• the Consolidated Financial Statements and the PLC Company
Accounts give a true and fair view of the state of the Group’s
and of Unilever PLC’s affairs as at 31 December 2015 and of
the Group’s profit for the year then ended;

• the Consolidated Financial Statements have been properly

prepared in accordance with International Financial
Reporting Standards as adopted by the European Union
(IFRS as adopted by the EU);

• the PLC Company Accounts have been properly prepared in
accordance with United Kingdom Accounting Standards,
including FRS 101 ‘Reduced Disclosure Framework’; and
• both the Consolidated Financial Statements and the PLC
Company Accounts have been prepared in accordance
with the requirements of the Companies Act 2006 and, as
regards the Consolidated Financial Statements, Article 4
of the IAS Regulation.

Separate opinion in relation to IFRS as issued by the
International Accounting Standards Board (IASB)
As explained in the accounting policies set out in the
Consolidated Financial Statements, the Group, in addition to
complying with its legal obligation to apply IFRS as adopted
by the EU, has also applied IFRS as issued by the IASB.
In our opinion, the Consolidated Financial Statements comply
with IFRS as issued by the IASB.

Unilever Annual Report and Accounts 2015Financial statements

INDEPENDENT AUDITORS’ REPORTS CONTINUED

2. OUR ASSESSMENT OF RISKS OF MATERIAL MISSTATEMENT

In arriving at our audit opinion above on the Financial Statements the risks of material misstatement that had the greatest
effect on our audit (key audit matters) were as set out below and are unchanged from 2014.

These are the matters that, in our professional judgement, had the greatest effect on: the overall audit strategy; the allocation of
resources in our audit; and directing the efforts of the engagement team. We have communicated these matters to the Audit
Committee. Our audit procedures relating to these matters were designed in the context and solely for the purposes of our
audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not express discrete opinions on
these matters.

Revenue recognition
• The risk – Revenue is measured taking account of discounts, incentives and rebates earned by customers on the Group’s
sales. Due to the multitude and variety of contractual terms across the Group’s markets, the estimation of discounts,
incentives and rebates recognised based on sales made during the year is considered to be complex.

Revenue is recognised when the risks and rewards of the underlying products have been transferred to the customer.
There is a risk that revenue may be overstated because of fraud resulting from the pressure local management may feel
to achieve performance targets at the reporting period end. The Group focuses on revenue as a key performance measure
which could create an incentive for revenue to be recognised before the risks and rewards have been transferred.

• Our response – Our audit procedures included considering the appropriateness of the Group’s revenue recognition
accounting policies including those relating to discounts, incentives and rebates and assessing compliance with the
policies in terms of applicable accounting standards. We tested the effectiveness of the Group’s controls over calculation
of discounts, incentives and rebates and correct timing of revenue recognition.

We assessed sales transactions taking place at either side of the balance sheet date as well as credit notes issued after the
year end date to assess whether that revenue was recognised in the correct period. We also developed an expectation of the
current year revenue balance based on trend analysis information taking into account historical weekly sales and returns
information and our understanding of each market. We then compared this expectation to actual results.

We also considered the adequacy of the Group’s disclosures (in note 2) in respect of revenue.

Indirect tax provisions and contingencies
• The risk – Provisions for indirect tax require the Directors to make judgements and estimates in relation to the issues

and exposures. In Brazil (one of the Group’s largest markets) the complex nature of the local tax regulations and
jurisprudence make this a particular area of significant judgement.

• Our response – Our audit procedures included testing the effectiveness of the Group’s controls around the recording
and re-assessment of tax provisions. Furthermore, our procedures included using our own indirect tax and legal
specialists to consider the level of provisions required in light of the nature of the Group’s exposures, applicable
regulations and the Group’s correspondence with the authorities. We assessed relevant historical and recent judgements
passed by the court authorities in considering any legal precedent or case law, as well as assessing legal opinions from
third party lawyers. We also gained an understanding of the Group’s provisioning methodology and challenged
assumptions using the knowledge and experience of our own specialists. In addition, we obtained formal confirmations
from the Group’s external counsel, where appropriate. We also considered the adequacy of the Group’s disclosures
(in note 19) made in relation to indirect tax provisions and contingencies.

Direct tax provisions and contingencies
• The risk – The Group has extensive international operations and in the normal course of business the Directors make

judgements and estimates in relation to tax issues and exposures. This is a key judgement due to the Group operating in
a number of tax jurisdictions, the complexities of transfer pricing and other tax legislation.

• Our response – Our audit procedures included testing the effectiveness of the Group’s controls around the recording

and continuous re-assessment of tax provisions.

Our own tax specialists performed an assessment of the Group’s correspondence with relevant tax authorities, to consider
the completeness of tax provisions for all associated risks. We also challenged the assumptions used, taking into
consideration our own tax specialists’ knowledge and experience. In addition, we assessed relevant judgements passed by
authorities in considering any need for a provision, as well as assessing relevant opinions from third parties.

We also considered the adequacy of the Group’s disclosures (in note 20) in respect of tax and uncertain tax positions.

For each risk noted above refer to related disclosure within the Report of the Audit Committee (page 60), accounting policies
and financial disclosures within the notes to the Consolidated Financial Statements.

Unilever Annual Report and Accounts 2015Financial statements3. OUR APPLICATION OF MATERIALITY AND AN OVERVIEW OF THE SCOPE OF OUR AUDIT

Materiality
Based on our professional judgement the materiality for the Consolidated Financial Statements as a whole was set at €350 million
(2014: €350 million), determined with reference to a benchmark of Group profit before taxation (of which it represents 4.8% (2014:
4.6%)). We also take misstatements into account that are in our opinion material for qualitative reasons.

We agreed with the Audit Committee to report to it any corrected and uncorrected identified misstatements exceeding €25 million in
addition to other identified misstatements that warranted reporting on qualitative grounds.

Scope of our audit
The Group operates through a significant number of legal entities, these form reporting components which are primarily based on
country. To provide sufficient coverage over the Group’s significant risks, we performed audits for Group reporting purposes of 13
components (2014: 13 components), as well as audits of revenue and the related accounts receivable balances at a further 10
components (2014: 5 components). The further 10 components were not individually financially significant enough to require an audit
for Group reporting purposes but were included in the scope of our Group reporting work in order to provide further coverage over
the Group’s revenue.

The Group has 5 centralised operating centres that perform accounting and reporting activities alongside related controls. Together
these operating centres process a substantial portion of the Group’s transactions. The outputs from the centralised operating
centres are included in the financial information of the component entities they service and therefore they are not separate reporting
components. Each of the operating centres is subject to specified audit procedures. Further audit procedures are performed at each
reporting component to cover matters not covered at the centralised operating centres. Together this results in audits for Group
reporting purposes on those reporting components.

The percentages of the Group’s Revenue, Profit before Taxation and Total Assets represented by the components within the scope of
our work and procedures performed at corporate level are as follows:

GROUP REVENUE

GROUP PROFIT BEFORE TAXATION

TOTAL ASSETS

30%
(2014: 37%)

51%
(2014: 51%)

25%
(2014: 30%)

39%
(2014: 57%)

19%
(2014: 12%)

36%
(2014: 13%)

5%
(2014: 22%)

9%
(2014: 3%)

86%
(2014: 75%)

Audits for Group Reporting Purposes

Audits of Account Balances

Other Components

The remaining 30% of Group Revenue and 25% of Group Profit before Taxation is represented by a significant number of components,
‘Other Components’ none of which individually represents more than 2% of Group Revenue and/or Group Profit before Taxation.
A substantial portion of these Other Components utilise the five operating centres and are therefore subject to audit procedures
performed at these operating centres. In addition, for these Other Components, we performed analysis (focusing specifically on
revenue and operating margins) at the aggregated Group level to re-examine our assessment that there are no significant risks
of material misstatement within these components.

The Group audit team instructed component auditors as to the significant areas to be covered, including the significant risks detailed
above and the information to be reported back. The Group audit team approved component materiality levels, which ranged from
€5 million to €275 million (2014: €5 million to €275 million), having regard to the mix of size and risk profile of the Group across the
components. The work on all components was performed by component auditors.

The Group audit team visited locations in the USA, India, Indonesia, Switzerland, Brazil, South Africa, Russia, Singapore, China,
Mexico, Thailand, Australia, Poland, Kenya, Philippines and Zimbabwe (2014: the USA, the UK, the Netherlands, India, Indonesia,
Switzerland, Brazil, South Africa, Germany, Turkey, Russia, Singapore, China, Mexico and Argentina). Telephone and/or online
meetings were also held with the auditors of these components and the majority of all other components. The findings reported
to the Group audit team were discussed in more detail with component auditors, and any further work required by the Group audit
team was then performed by the component auditor.

Unilever Annual Report and Accounts 2015Financial statementsINDEPENDENT AUDITORS’ REPORTS CONTINUED

4. OTHER REPORTING

Our report on the Report of the Directors and the other
information is unmodified
Pursuant to the legal requirement under Part 9 of Book 2
of the Netherlands Civil Code:
• we have no deficiencies to report as a result of our

examination whether the Report of the Directors, to the
extent we can assess, has been prepared in accordance
with Part 9 of Book 2 of this Code, and whether the
information as required under Part 9 of Book 2 has been
annexed; and

• further we report that the Report of the Directors, to the
extent we can assess, is consistent with the Consolidated
Financial Statements and the NV Company Accounts as
required by Article 2:391 sub 4 of the Netherlands Civil Code.

Engagement
We have been engaged by the General Meeting at 14 May 2015 as
auditor of Unilever N.V. since the audit of year 2014 and we are
the statutory auditor since that date up until today.

Independence
We are independent of the Unilever Group in accordance with
the Regulation regarding the Independence of Auditors in
the case of Assurance Engagements (‘Verordening inzake de
onafhankelijkheid van accountants bij assurance-opdrachten’
(ViO)) and other relevant independence regulations in the
Netherlands. Furthermore we have complied with the
Regulation Code of Conduct and Professional Practice Auditors
(‘Verordening gedrags-en beroepsregels accountants’ (VGBA)).

Our opinion on other matters prescribed by the Companies
Act 2006 is unmodified
In our opinion:
• the part of the Directors’ Remuneration Report to be audited

has been properly prepared in accordance with the
Companies Act 2006; and

• the information given in the Strategic Report and the Directors’
Report for the financial year is consistent with the Consolidated
Financial Statements and the PLC Company Accounts.

Based solely on the work required to be undertaken in the
course of the audit of the Financial Statements and from reading
the Strategic Report and the Directors’ Report;
• we have not identified material misstatements in those

•

reports; and
in our opinion, those reports have been prepared in
accordance with the Companies Act 2006.

We have nothing to report on the disclosure of principal risks
Based on the knowledge we acquired during our audit, we have
nothing material to add or draw attention to in relation to:
• the directors’ viability statement on pages 53 to 54, concerning
the principal risks, their management, and, based on that, the
directors’ assessment and expectations of the Group’s
continuing operation over the three years to 2018; or
• the disclosure in note 1 of the financial statements

concerning the use of the going concern basis of accounting.

We have nothing to report in respect of the matters on which
we are required to report by exception
Under ISAs (UK and Ireland) we are required to report to you if, based
on the knowledge we acquired during our audit, we have identified
other information in the Annual Report that contains a material
inconsistency with either that knowledge or the Consolidated
Financial Statements and/or the PLC Company Accounts, a
material misstatement of fact, or that is otherwise misleading.

In particular, we are required to report to you if:
• we have identified material inconsistencies between the

knowledge we acquired during our audit and the Directors’
statement that they consider that the Annual Report and
Financial Statements taken as a whole is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Group’s performance, business
model and strategy; or

• the Report of the Audit Committee does not appropriately

address matters communicated by us to the Audit Committee.

Under the Companies Act 2006 we are required to report to you
if, in our opinion:
• adequate accounting records have not been kept by Unilever

PLC, or returns adequate for our audit have not been
received from branches not visited by us; or

• the PLC Company Accounts and the part of the Directors’
Remuneration Report to be audited are not in agreement
with the accounting records and returns; or

• certain disclosures of Directors’ remuneration specified

by law are not made; or

• we have not received all the information and explanations

we require for our audit.

Under the Listing Rules we are required to review:
• the Directors’ statement, set out on page 84 and pages 53 to
54, in relation to going concern and longer term viability; and

• the part of the Corporate Governance Statement on pages

50 to 52 relating to Unilever PLC’s compliance with the eleven
provisions of the 2014 UK Corporate Governance Code specified
for our review.

We have nothing to report in respect of the above responsibilities.

Unilever Annual Report and Accounts 2015Financial statementsSCOPE AND RESPONSIBILITIES

Directors’ and Audit Committee’s responsibilities
The Directors are responsible for:
• the preparation and fair presentation of the Consolidated

Financial Statements in accordance with IFRSs as adopted by
the EU and Part 9 of Book 2 of the Netherlands Civil Code, and
for the preparation of the Report of the Directors in accordance
with Part 9 of Book 2 of the Netherlands Civil Code;

Directors’ responsibilities
As explained more fully in the Directors’ Responsibilities
Statement (set out on page 84), the Directors are responsible for
the preparation of the Consolidated Financial Statements and
the PLC Company Accounts and for being satisfied that they give
a true and fair view.

• the preparation and fair presentation of the N.V. Company
Accounts in accordance with United Kingdom accounting
standards and Part 9 of Book 2 of the Netherlands Civil Code;
and

Scope of an audit of financial statements
A description of the scope of an audit of financial statements
is provided on the Financial Reporting Council’s website at
www.frc.org.uk/auditscopeukprivate.

This report is made solely to Unilever PLC’s members as a body
and is subject to important explanations and disclaimers
regarding our responsibilities which can be accessed on our
website via www.kpmg.com/uk/auditscopeukco2014b, and are
incorporated into this report as if set out in full and should be
read to provide an understanding of the purpose of this report,
the work we have undertaken and the basis of our opinions.

• such internal control as management determines is
necessary to enable the preparation of the Financial
Statements that are free from material misstatement,
whether due to fraud or error.

In preparing the Financial Statements, the Directors are
responsible for assessing the Group’s and Unilever N.V.’s ability
to continue as a going concern. Based on the financial reporting
frameworks mentioned, the Directors should prepare the
Consolidated Financial Statements and NV Company Accounts
using the going concern basis of accounting unless the Directors
either intend to liquidate the Group and/or Unilever N.V. or
to cease operations, or have no realistic alternative but to do
so. The Directors should disclose in the Financial Statements
events and circumstances that may cast significant doubt
on the Group’s and/or Unilever N.V.’s ability to continue as
a going concern.

The Audit Committee is responsible for overseeing the Group’s
financial reporting process.

Auditor’s responsibilities
Our objective is to plan and perform the audit assignment in a
manner that allows us to obtain sufficient and appropriate audit
evidence for our opinion.

Our audit has been performed with a high, but not absolute, level
of assurance, which means we may not have detected all errors
and fraud.

For more information about an audit of financial statements,
we refer to the NBA website: www.nba.nl/standardtexts-
auditorsreport.

Eric van Leeuwen
(External auditor)
KPMG Accountants N.V.
Amsterdam
17 February 2016

SIGNING

Paul Korolkiewicz
(Senior Statutory Auditor)
for and on behalf of KPMG LLP
Chartered Accountants and Statutory Auditor
London
17 February 2016

Unilever Annual Report and Accounts 2015Financial statementsFINANCIAL STATEMENTS
UNILEVER GROUP

CONSOLIDATED INCOME STATEMENT
for the year ended 31 December

Turnover

Operating profit

After (charging)/crediting non-core items

Net finance costs

Finance income
Finance costs
Pensions and similar obligations

Share of net profit/(loss) of joint ventures and associates
Other income/(loss) from non-current investments and associates

Profit before taxation
Taxation

Net profit

Attributable to:
Non-controlling interests
Shareholders’ equity

Combined earnings per share
Basic earnings per share (€)
Diluted earnings per share (€)

Notes

€ million
2015

€ million
2014

€ million
2013

53,272

48,436

49,797

7,515

7,980

7,517

(350)

(493)

144
(516)
(121)

107
91

7,220
(1,961)

5,259

350
4,909

960

(477)

117
(500)
(94)

98
45

7,646
(2,131)

5,515

344
5,171

501

(530)

103
(500)
(133)

113
14

7,114
(1,851)

5,263

421
4,842

1.73
1.72

1.82
1.79

1.71
1.66

References in the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes
in equity, consolidated balance sheet and consolidated cash flow statement relate to notes on pages 94 to 147, which form
an integral part of the consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December

Net profit

Other comprehensive income
Items that will not be reclassified to profit or loss:

Remeasurement of defined benefit pension plans net of tax

Items that may be reclassified subsequently to profit or loss:

Currency retranslation gains/(losses) net of tax(a)
Fair value gains/(losses) on financial instruments net of tax

Total comprehensive income

Attributable to:

Non-controlling interests
Shareholders’ equity

Notes

€ million
2015

€ million
2014

€ million
2013

5,259

5,515

5,263

15B

15B
15B

884

(1,250)

697

(481)
100

5,762

(25)
(85)

(999)
106

4,155

5,067

357
5,405

404
3,751

339
4,728

(a) Includes fair value gains/(losses) on net investment hedges and exchange differences in net investments in foreign operations of €617 million (2014: €412 million;

2013: €(275) million).

Unilever Annual Report and Accounts 2015Financial statementsCONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Consolidated statement of changes in equity

€ million
Called up
share
capital

€ million
Share
premium
account

€ million

Other
reserves

Retained
profit

31 December 2012

484

140

(6,196)

20,964

Profit or loss for the period
Other comprehensive income net of tax:

Fair value gains/(losses) on financial instruments
Remeasurement of defined benefit pension plans
net of tax
Currency retranslation gains/(losses)

Total comprehensive income
Dividends on ordinary capital
Movements in treasury stock(a)
Share-based payment credit(b)
Dividends paid to non-controlling interests
Currency retranslation gains/(losses) net of tax
Other movements in equity(c)

–

–
–

–
–
–
–
–
–
–

–

–
–

–
–
–
–
–
(5)
3

–

106

–
(788)

(682)
–
112
–
–
–
20

4,842

–

697
(129)

5,410
(2,981)
(83)
242
–
–
(3,084)

Total

15,392

4,842

106

697
(917)

4,728
(2,981)
29
242
–
(5)
(3,061)

31 December 2013

484

138

(6,746)

20,468

14,344

Profit or loss for the period
Other comprehensive income net of tax:

Fair value gains/(losses) on financial instruments
Remeasurement of defined benefit pension plans
net of tax
Currency retranslation gains/(losses)

–

–
–

–
–
–
–
–
–
–

–

–
–

–
–
–
–
–
7
–

–

5,171

(85)

–
(290)

(375)
–
(235)
–
–
–
(182)

–

(85)

(1,253)
208

4,126
(3,196)
(217)
188
–
–
(809)

(1,253)
(82)

3,751
(3,196)
(452)
188
–
7
(991)

31 December 2014

484

145

(7,538)

20,560

13,651

Profit or loss for the period
Other comprehensive income net of tax:

Fair value gains/(losses) on financial instruments
Remeasurement of defined benefit pension plans
net of tax
Currency retranslation gains/(losses)

–

–
–

–
–
–
–
–
–
–

–

–
–

–
–
–
–
–
7
–

–

100

–
(377)

(277)
–
6
–
–
–
(7)

4,909

–

882
(109)

5,682
(3,404)
(282)
150
–
–
(87)

100

882
(486)

5, 405
(3,404)
(276)
150
–
7
(94)

€ million
Non-
controlling
interests

557

421

–

–
(82)

339
–
–
–
(307)
(5)
(113)

471

344

–

3
57

404
–
–
–
(342)
(2)
81

612

350

–

2
5

357
–
–
–
(326)
–
–

€ million

Total
equity

15,949

5,263

106

697
(999)

5,067
(2,981)
29
242
(307)
(10)
(3,174)

14,815

5,515

(85)

(1,250)
(25)

4,155
(3,196)
(452)
188
(342)
5
(910)

14,263

5,259

100

884
(481)

5,762
(3,404)
(276)
150
(326)
7
(94)

31 December 2015

484

152

(7,816)

22,619

15,439

643

16,082

(a) Includes purchases and sales of treasury stock, and transfer from treasury stock to retained profit of share-settled schemes arising from prior years and

differences between exercise and grant price of share options.

(b) The share-based payment credit relates to the non-cash charge recorded against operating profit in respect of the fair value of share options and awards

granted to employees.

Unilever Annual Report and Accounts 2015Financial statements

FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

CONSOLIDATED BALANCE SHEET
as at 31 December

Assets
Non-current assets
Goodwill
Intangible assets
Property, plant and equipment
Pension asset for funded schemes in surplus
Deferred tax assets
Financial assets
Other non-current assets

Current assets
Inventories
Trade and other current receivables
Current tax assets
Cash and cash equivalents
Other financial assets
Non-current assets held for sale

Total assets

Liabilities
Current liabilities
Financial liabilities
Trade payables and other current liabilities
Current tax liabilities
Provisions
Liabilities associated with assets held for sale

Non-current liabilities
Financial liabilities
Non-current tax liabilities
Pensions and post-retirement healthcare liabilities:

Funded schemes in deficit
Unfunded schemes

Provisions
Deferred tax liabilities
Other non-current liabilities

Total liabilities

Equity
Shareholders’ equity
Called up share capital
Share premium account
Other reserves
Retained profit

Shareholders’ equity
Non-controlling interests

Total equity

Total liabilities and equity

These financial statements have been approved by the Directors.

The Board of Directors
17 February 2016

Notes

€ million
2015

€ million
2014

9
9
10
4B
6B
17A
11

12
13

17A
17A
22

15C
14

19
22

15C

4B
4B
19
6B
14

15A

15B

16,213
8,846
11,058
934
1,185
605
771

39,612

4,335
4,804
230
2,302
836
179

14,642
7,532
10,472
376
1,286
715
657

35,680

4,168
5,029
281
2,151
671
47

12,686

12,347

52,298

48,027

4,789
13,788
1,127
309
6

20,019

9,854
121

1,569
1,685
831
1,744
393

16,197

36,216

484
152
(7,816)
22,619

15,439
643

16,082

5,536
12,606
1,081
418
1

19,642

7,186
161

2,222
1,725
916
1,534
378

14,122

33,764

484
145
(7,538)
20,560

13,651
612

14,263

52,298

48,027

Unilever Annual Report and Accounts 2015Financial statementsCONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December

Net profit
Taxation
Share of net profit of joint ventures/associates and other income/(loss) from
non-current investments and associates
Net finance costs

Operating profit
Depreciation, amortisation and impairment
Changes in working capital:

Inventories
Trade and other receivables
Trade payables and other liabilities

Pensions and similar obligations less payments
Provisions less payments
Elimination of (profits)/losses on disposals
Non-cash charge for share-based compensation
Other adjustments

Cash flow from operating activities
Income tax paid

Net cash flow from operating activities

Interest received
Purchase of intangible assets
Purchase of property, plant and equipment
Disposal of property, plant and equipment
Acquisition of group companies, joint ventures and associates
Disposal of group companies, joint ventures and associates
Acquisition of other non-current investments
Disposal of other non-current investments
Dividends from joint ventures, associates and other non-current investments
(Purchase)/sale of financial assets

Net cash flow (used in)/from investing activities

Dividends paid on ordinary share capital
Interest and preference dividends paid
Acquisition of non-controlling interests
Purchase of Estate shares
Net change in short-term borrowings
Additional financial liabilities
Repayment of financial liabilities
Capital element of finance lease rental payments
Other movements on treasury stock
Other financing activities

Net cash flow (used in)/from financing activities

Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Effect of foreign exchange rate changes

Cash and cash equivalents at the end of the year

Notes

€ million
2015

€ million
2014

€ million
2013

5,259
1,961

(198)
493

7,515
1,370
720

(129)
2
847

(385)
(94)
26
150
49

9,351
(2,021)

7,330

119
(334)
(1,867)
127
(1,897)
199
(78)
127
176
(111)

(3,539)

(3,331)
(579)
–
–
245
7,566
(6,270)
(14)
(276)
(373)

5,515
2,131

(143)
477

7,980
1,432
8

(47)
82
(27)

(364)
32
(1,460)
188
38

7,854
(2,311)

5,543

123
(359)
(1,893)
207
(313)
1,741
(82)
69
162
4

(341)

(3,189)
(521)
–
(880)
338
5,174
(5,305)
(16)
(467)
(324)

5,263
1,851

(127)
530

7,517
1,151
200

168
(917)
949

(383)
126
(725)
228
(15)

8,099
(1,805)

6,294

100
(377)
(1,791)
141
(142)
1,053
(273)
302
136
(310)

(1,161)

(2,993)
(511)
(2,901)
–
350
4,219
(3,294)
(11)
24
(273)

(3,032)

(5,190)

(5,390)

759
1,910
(541)

2,128

12
2,044
(146)

1,910

(257)
2,217
84

2,044

17A

The cash flows of pension funds (other than contributions and other direct payments made by the Group in respect of pensions
and similar obligations) are not included in the Group cash flow statement.

Acquisition of non-controlling interests in 2013 includes various transactions to acquire non-controlling interests, primarily an outflow
of €2,515 million to increase the Group’s ownership of Hindustan Unilever Limited from 52% to 67%.

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP

1. ACCOUNTING INFORMATION
AND POLICIES
The accounting policies adopted are the same as those which were
applied for the previous financial year, except as set out below
under the heading ‘Recent accounting developments’.

UNILEVER
The two parent companies, NV and PLC, together with their group
companies, operate as a single economic entity (the Unilever
Group, also referred to as Unilever or the Group). NV and PLC have
the same Directors and are linked by a series of agreements,
including an Equalisation Agreement, which are designed so that
the positions of the shareholders of both companies are as closely
as possible the same as if they held shares in a single company.

The Equalisation Agreement provides that both companies adopt
the same accounting principles. It also requires that dividends and
other rights and benefits attaching to each ordinary share
of NV, be equal in value to those rights and benefits attaching to
each ordinary share of PLC, as if each such unit of capital formed
part of the ordinary share capital of one and the same company.

BASIS OF CONSOLIDATION
Due to the operational and contractual arrangements referred to
above, NV and PLC form a single reporting entity for the purposes
of presenting consolidated financial statements. Accordingly, the
financial statements of Unilever are presented by both NV and PLC
as their respective consolidated financial statements. Group
companies included in the consolidation are those companies
controlled by NV or PLC. Control exists when the Group has the
power to direct the activities of an entity so as to affect the return
on investment.

The net assets and results of acquired businesses are included in
the consolidated financial statements from their respective dates
of acquisition, being the date on which the Group obtains control.
The results of disposed businesses are included in the
consolidated financial statements up to their date of disposal,
being the date control ceases.

Intra-group transactions and balances are eliminated.

The company income statement for NV is included in the
consolidated financial statements. An abbreviated income
statement has been disclosed in the NV company accounts on
page 148 in accordance with Section 402, Book 2 of the
Netherlands Civil Code.

COMPANIES LEGISLATION AND ACCOUNTING STANDARDS
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the European Union (EU), IFRIC Interpretations and in
accordance with Part 9 of Book 2 of the Civil Code in the Netherlands
and the UK Companies Act 2006 applicable to companies reporting
under IFRS. They are also in compliance with IFRS as issued by the
International Accounting Standards Board (IASB).

These financial statements are prepared under the historical cost
convention unless otherwise indicated.

These financial statements have been prepared on a going
concern basis. Refer to the going concern statement on page 84.

ACCOUNTING POLICIES
Accounting policies are included in the relevant notes to the
consolidated financial statements. These are presented as text
highlighted in grey on pages 96 to 147. The accounting policies
below are applied throughout the financial statements.

FOREIGN CURRENCIES
The consolidated financial statements are presented in euros.
The functional currencies of NV and PLC are euros and sterling
respectively. Items included in the financial statements of
individual group companies are recorded in their respective
functional currency which is the currency of the primary economic
environment in which each entity operates.

Foreign currency transactions in individual group companies are
translated into functional currency using exchange rates at the
date of the transaction. Foreign exchange gains and losses
from settlement of these transactions, and from translation
of monetary assets and liabilities at year-end exchange rates,
are recognised in the income statement except when deferred
in equity as qualifying hedges.

In preparing the consolidated financial statements, the balances in
individual group companies are translated from their functional
currency into euros. The income statement, the cash flow
statement and all other movements in assets and liabilities
are translated at average rates of exchange as a proxy for the
transaction rate, or at the transaction rate itself if more
appropriate. Assets and liabilities are translated at year-end
exchange rates.

The ordinary share capital of NV and PLC is translated in
accordance with the Equalisation Agreement. The difference
between the value for PLC and the value by applying the
year-end rate of exchange is taken to other reserves (see note
15B on page 117).

The effect of exchange rate changes during the year on net assets
of foreign operations is recorded in equity. For this purpose net
assets include loans between group companies and any related
foreign exchange contracts where settlement is neither planned
nor likely to occur in the foreseeable future.

The Group applies hedge accounting to certain exchange
differences arising between the functional currencies of a foreign
operation and NV or PLC as appropriate, regardless of whether the
net investment is held directly or through an intermediate parent.
Differences arising on retranslation of a financial liability
designated as a foreign currency net investment hedge are
recorded in equity to the extent that the hedge is effective. These
differences are reported within profit or loss to the extent that the
hedge is ineffective.

Cumulative exchange differences arising since the date of
transition to IFRS of 1 January 2004 are reported as a separate
component of other reserves. In the event of disposal or part
disposal of an interest in a group company either through sale or
as a result of a repayment of capital, the cumulative exchange
difference is recognised in the income statement as part of the
profit or loss on disposal of group companies.

CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of financial statements requires management to
make judgements, estimates and assumptions in the application of
accounting policies that affect the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from
these estimates. Estimates and judgements are continuously
evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to
be reasonable. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future
period affected.

Unilever Annual Report and Accounts 2015Financial statements1. ACCOUNTING INFORMATION
AND POLICIES CONTINUED
Information about critical judgements in applying accounting
policies, as well as estimates and assumptions that have the most
significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year,
are included in the following notes:
• separate presentation of items in the income statement – note 3;
• measurement of defined benefit obligations – note 4B;
• utilisation of tax losses and recognition of other deferred tax

assets – note 6B;

• key assumptions used in discounted cash flow projections –

note 9;

• likelihood of occurrence of provisions and contingencies,

including direct and indirect tax investigations and audits –
notes 19 and 20; and

• measurement of consideration and assets and liabilities
acquired as part of business combinations – note 21.

RECENT ACCOUNTING DEVELOPMENTS

ADOPTED BY THE GROUP
The following new and amended standards are relevant to the
Group and have been adopted for the first time in these financial
statements, with no material impact:
•

Amendments to IFRS 2 ‘Share based Payment’ clarifies issues
relating to the definitions of performance and service
conditions which are vesting conditions.
Amendments to IFRS 3 ‘Business Combinations’ clarifies when
other applicable IFRSs should be referred to when determining
the classification of contingent consideration as a financial
liability or equity instrument.
Amendments to IFRS 3 ‘Business Combinations’ clarifies that
it excludes from its scope the accounting for the formation of
a joint arrangement in the financial statements of the joint
arrangement itself.
Amendments to IFRS 8 ‘Operating Segments’ clarifies that
entities should disclose those factors that are used to identify
the entity’s reportable segments when operating segments
have been aggregated.

•

• Amendments to IFRS 13 ‘Fair Value Measurement’ clarifies

that the portfolio exception in IFRS 13 can be applied not only
to financial assets and financial liabilities, but also to other
contracts within the scope of IAS 39 ‘Financial Instruments:
Recognition and Measurement’.
Amendment to IAS 16 ‘Property, Plant and Equipment’ and IAS
38 ‘Intangible Assets’ clarifies that when an item of property,
plant and equipment or an intangible asset is revalued the
gross carrying amount is adjusted in a manner that is
consistent with the revaluation of the carrying amount.
Amendments to IAS 19 ‘Defined Benefit Plans: Employee
Contributions’ simplifies the accounting for contributions that
are independent of the number of years of employee service.
Amendments to IAS 24 ‘Related Party Disclosures’ clarifies
that an entity providing key management personnel services
to the reporting entity or to the parent of the reporting entity
is a related party of the reporting entity.

•

NOT ADOPTED BY THE GROUP
All of the following new standards, amendments and interpretations
are effective from 1 January 2016 unless otherwise stated. Standards
have been endorsed by the EU unless otherwise stated.

The Group does not currently believe adoption of the following
new standards would have a material impact on the consolidated
results or financial position of the Group.
• Amendments to IFRS 5 ‘Non-Current Assets Held for Sale and
Discontinued Operations’ adds specific guidance in IFRS 5 for
cases in which an entity reclassifies an asset from held for
sale to held for distribution to owners or vice versa.

• IFRS 14 ‘Regulatory Deferral Accounts’ permits first time

adopters of IFRS to continue to account for amounts related
to rate regulation in accordance with their previous GAAP.
The standard does not apply to the Group and has not been
endorsed by the EU yet.

• The ‘Disclosure Initiative’ aims at clarifying IAS 1 ‘Presentation
of Financial Statements’ through exploring how presentation
and disclosure principles and requirements in existing
standards can be improved to enable preparers in exercising
their judgement in presenting their financial reports.

• Amendments to IAS 16 ‘Property, Plant and Equipment’ and
IAS 38 ‘Intangible Assets’ covers clarification of the principle
of the basis of depreciation and revenue based methods are
not appropriate.

• Amendments to IAS 19 ‘Employee Benefits’ clarifies that the
high quality corporate bonds used in estimating the discount
rate for post-employment benefits should be denominated
in the same currency as the benefits to be paid.

• Amendments to IAS 41 ‘Agriculture: Bearer Plants’ change
the accounting for biological assets that meet the definition
of bearer plants. These will now be in the scope of IAS 16
‘Property, Plant and Equipment’.

The Group is currently assessing the impact of the following
new standards that are not yet effective and is yet to quantify
the potential impact.
• IFRS 9 ‘Financial Instruments’ (effective from the year ending

31 December 2018) reflects all phases of the financial
instruments project and replaces IAS 39 ‘Financial
Instruments: Recognition and Measurement’. The standard
introduces new requirements for classification and
measurement of financial instruments, a new expected credit
loss model for calculating impairment on financial assets and
new general hedge accounting requirements. Based on work
performed we expect the adoption of IFRS 9 to impact the
classification and measurement of certain financial assets not
financial liabilities. Work on the impact of the new impairment
and hedge accounting requirements is in the early stages and
we expect new processes and IT systems may be required.
• IFRS 15 ‘Revenue from Contracts with Customers’ (effective

from the year ended 31 December 2018) supersedes all existing
revenue recognition requirements under IFRS. It is based on
the principle that revenue is recognised when control of goods
or services is transferred and provides a single, principle-
based model. It applies to all transactions to provide goods and
services except those in the scope of other standards and
replaces the separate models for goods, services and
construction contracts under current IFRS.

Unilever has commenced work to train our people and
identify areas of divergence with current practice. Based on
a preliminary assessment from work performed to date, the
Group believes that the adoption of IFRS 15 will not have a
material impact on consolidated results or financial position
but work is ongoing.

• IFRS 16 ‘Leases’ was issued on 13 January 2016 and is effective
from the year ended 31 December 2019. The standard replaces
all existing lease accounting requirements and represents a
significant change in the accounting and reporting of leases, with
more assets and liabilities to be reported on the balance sheet
and a different recognition of lease costs. Unilever will begin to
assess the impact of this standard on the Group during 2016.

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

2. SEGMENT INFORMATION

SEGMENTAL REPORTING
Personal Care

– including sales of skin care and hair care products, deodorants and oral care products.

Foods

– including sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, margarines and spreads.

Home Care

– including sales of home care products, such as powders, liquids and capsules, soap bars and a wide range

of cleaning products.

Refreshment

– including sales of ice cream and tea-based beverages.

REVENUE RECOGNITION
Turnover comprises sales of goods after the deduction of discounts, sales taxes and estimated returns. It does not include sales
between group companies. Discounts given by Unilever include rebates, price reductions and incentives given to customers,
promotional couponing and trade communication costs.

Turnover is recognised when the risks and rewards of the underlying products have been substantially transferred to the customer.
Depending on individual customer terms, this can be at the time of dispatch, delivery or upon formal customer acceptance.

CORE OPERATING PROFIT
Core operating profit represents our measure of segment profit or loss as it is the primary measure used for the purpose of making
decisions about allocating resources and assessing performance of segments. Core operating margin is calculated as core operating
profit divided by turnover.

2015
Turnover

Operating profit
Non-core items

Core operating profit

Share of net profit/(loss) of joint ventures and associates

Depreciation and amortisation
Impairment and other non-cash charges(a)(b)

2014
Turnover

Operating profit
Non-core items

Core operating profit

Share of net profit/(loss) of joint ventures and associates

Depreciation and amortisation
Impairment and other non-cash charges(a)(b)

2013
Turnover

Operating profit
Non-core items

Core operating profit

Share of net profit/(loss) of joint ventures and associates

Depreciation and amortisation
Impairment and other non-cash charges(a)(b)

€ million
Personal
Care

Notes

€ million

Foods

Home Care

€ million
Refresh-
ment

€ million

Total

20,074

12,919

10,159

10,120

53,272

3,637
151

3,788

(4)

377
267

2,298
56

2,354

308
113

740
35

775

–

235
134

840
108

948

107

450
153

7,515
350

7,865

107

1,370
667

17,739

12,361

9,164

9,172

48,436

3,259
66

3,325

(1)

307
198

3,607
(1,302)

2,305

257
122

576
3

579

–

192
100

538
273

811

371
393

7,980
(960)

7,020

1,127
813

18,056

13,426

8,946

9,369

49,797

3,078
128

3,206

327
267

3,064
(687)

2,377

293
139

524
53

577

201
179

851
5

856

330
97

7,517
(501)

7,016

113

1,151
682

(a) See note 3 for further information.
(b) Other non-cash charges include charges to the income statement during the year in respect of the share-based compensation, provisions and foreign

exchange losses resulting from remeasurement of the Venezuelan and Argentinian businesses.

Transactions between the Unilever Group’s reportable segments are immaterial and are carried out on an arm‘s length basis.

The Unilever Group is not reliant on revenues from transactions with any single external customer and does not receive 10% or more
of its revenues from transactions with any single external customer.

Unilever Annual Report and Accounts 2015Financial statements

2. SEGMENT INFORMATION CONTINUED
Segment assets and liabilities are not provided because they are not received or reviewed by our chief operating decision-maker,
which is the Unilever Leadership Executive (ULE) as explained in the Corporate Governance section.

The home countries of the Unilever Group are the Netherlands and the United Kingdom. Turnover and non-current assets for these
two countries combined, United States (being the largest country outside the home countries) and all other countries are:

2015

Turnover
Non-current assets(c)

2014

Turnover
Non-current assets(c)

2013

Turnover
Non-current assets(c)

€ million
Netherlands/
United
Kingdom

4,157
4,878

€ million

United
States

7,956
9,674

Others

41,159
22,336

Total

53,272
36,888

3,851
3,921

6,684
7,668

37,901
21,714

48,436
33,303

3,872
3,390

7,084
7,626

38,841
19,794

49,797
30,810

No other country had turnover or non-current assets (as shown above) greater than 10% of the Group total.

ADDITIONAL INFORMATION BY GEOGRAPHIES
Although the Group’s operations are managed by product area, we provide additional information based on geographies. The analysis of
turnover by geographical area is stated on the basis of origin. Sales between geographical areas are carried out at arm’s length and were
not material.

2015
Turnover

Operating profit
Non-core items

Core operating profit

Share of net profit/(loss) of joint ventures and associates

2014
Turnover

Operating profit
Non-core items

Core operating profit

€ million
Asia/

AMET/RUB(d)

€ million
The
Americas

€ million

Europe

Total

22,425

17,294

13,553

53,272

3,019
16

3,035

2,273
244

2,517

2,223
90

2,313

(1)

7,515
350

7,865

107

19,703

15,514

13,219

48,436

2,626
(15)

2,611

3,233
(959)

2,274

2,121
14

2,135

7,980
(960)

7,020

Share of net profit/(loss) of joint ventures and associates

–

2013
Turnover

Operating profit
Non-core items

Core operating profit

20,085

16,206

13,506

49,797

2,765
(85)

2,680

2,859
(542)

2,317

1,893
126

2,019

7,517
(501)

7,016

Share of net profit/(loss) of joint ventures and associates

(1)

113

(d) Refers to Asia, Africa, Middle East, Turkey, Russia, Ukraine and Belarus.

Unilever Annual Report and Accounts 2015Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

3. GROSS PROFIT AND OPERATING COSTS

RESEARCH AND MARKET SUPPORT COSTS
Expenditure on research and market support, such as advertising, is charged to the income statement as incurred.

NON-CORE ITEMS
Disclosed on the face of the income statement are costs and revenues relating to business disposals, acquisition and disposal related
costs, impairments and other one-off items, which we collectively term non-core items due to their nature and frequency of occurrence.
These items are material in terms of nature and/or amount and are relevant to an understanding of our financial performance.

Business disposals generate both gains and losses which are not reflective of underlying performance. Acquisition and disposal
related costs are charges directly attributable to the acquisition or disposal of group companies.

Turnover
Cost of sales

of which: Distribution costs

Gross profit
Selling and administrative expenses

of which: Brand and Marketing Investment

Research and Development

Operating profit

€ million
2015

53,272
(30,808)
(3,358)

22,464
(14,949)
(8,003)
(1,005)

€ million
2014

48,436
(28,387)
(3,079)

20,049
(12,069)
(7,166)
(955)

€ million
2013

49,797
(29,065)
(3,139)

20,732
(13,215)
(7,383)
(1,040)

7,515

7,980

7,517

NON-CORE ITEMS
Non-core items are disclosed on the face of the income statement to provide additional information to users to help them better
understand underlying business performance.

Acquisition and disposal related costs
Gain/(loss) on disposal of group companies(a)
Impairments and other one-off items(b)

Non-core items before tax
Tax impact of non-core items

Non-core items after tax

Attributable to:

Non-controlling interests
Shareholders’ equity

€ million
2015

€ million
2014

€ million
2013

(105)
(9)
(236)

(350)
49

(301)

–
(301)

(97)
1,392
(335)

960
(423)

537

–
537

(112)
733
(120)

501
(266)

235

–
235

(a) 2014 includes a gain of €1,316 million from the sale of the Ragu & Bertolli brands and related assets. The total cash consideration for this transaction was

approximately US$2.15 billion.

(b) 2015 includes foreign exchange losses resulting from remeasurement of the Venezuelan and Argentinian businesses amounting to €136 million. Also

included in 2015 is an €86 million charge for legal cases pertaining to a number of investigations by local competition regulators (2014: €30 million, 2013:
€120 million) and €14 million relating to other one-off legal cases (2014 and 2013: nil). 2014 includes an impairment charge of €305 million on assets related
to the Slim.Fast business.

OTHER
Other significant cost items by nature within operating costs include:

Staff costs
Raw and packaging materials and goods purchased for resale
Amortisation of finite-life intangible assets and software
Depreciation of property, plant and equipment
Exchange gains/(losses):

On underlying transactions
On covering forward contracts

Lease rentals:

Minimum operating lease payments
Contingent operating lease payments
Less: Sub-lease income relating to operating lease agreements

Notes

9
10

€ million
2015

(6,555)
(21,543)
(273)
(1,097)
(87)

(118)
31

(534)

(546)
–
12

€ million
2014

€ million
2013

(6,054)
(19,816)
(180)
(947)
12

15
(3)

(535)

(544)
–
9

(6,194)
(20,149)
(167)
(984)
(35)

(48)
13

(489)

(523)
(5)
39

Unilever Annual Report and Accounts 2015Financial statements
4. EMPLOYEES

4A. STAFF AND MANAGEMENT COSTS

Staff costs

Wages and salaries
Social security costs
Other pension costs
Share-based compensation costs

Average number of employees during the year

Asia/AMET/RUB
The Americas
Europe

Key management compensation(a)

Salaries and short-term employee benefits
Non-Executive Directors’ fees
Post-employment benefits
Share-based benefits(b)

Of which:

Executive Directors
Non-Executive Directors
Other(c)

€ million
2015

€ million
2014

€ million
2013

(5,474)
(606)
(325)
(150)

(4,992)
(586)
(288)
(188)

(6,555)

(6,054)

’000
2015

97
42
32

171

’000
2014

99
42
32

173

(5,002)
(631)
(333)
(228)

(6,194)

’000
2013

97
43
34

174

€ million
2015

€ million
2014

€ million
2013

(34)
(2)
(1)
(30)

(67)

(18)
(2)
(47)

(67)

(28)
(2)
(1)
(19)

(50)

(15)
(2)
(33)

(50)

(30)
(2)
(1)
(17)

(50)

(15)
(2)
(33)

(50)

(a) 2015 includes full year compensation for two new Unilever Leadership Executive members (Graeme Pitkethly and Amanda Sourry).
(b) Share-based benefits are shown on a vesting basis.
(c) Other includes all members of the Unilever Leadership Executive, including Graeme Pitkethly, other than Executive Directors.

Key management personnel are defined as the members of Unilever Leadership Executive and the Non-Executive Directors.

Details of the remuneration of Directors are given in the parts noted as audited in the Directors’ Remuneration Report on pages 66 to 83.

4B. PENSIONS AND SIMILAR OBLIGATIONS

For defined benefit plans, operating and finance costs are recognised separately in the income statement. The amount charged to
operating cost in the income statement is the cost of accruing pension benefits promised to employees over the year, plus the costs
of individual events such as past service benefit changes, settlements and curtailments (such events are recognised immediately in
the income statement). The amount charged or credited to finance costs is a net interest expense calculated by applying the liability
discount rate to the net defined benefit liability or asset. Any differences between the expected interest on assets and the return
actually achieved, and any changes in the liabilities over the year due to changes in assumptions or experience within the plans, are
recognised immediately in the statement of comprehensive income.

The defined benefit plan surplus or deficit on the balance sheet comprises the total for each plan of the fair value of plan assets less
the present value of the defined benefit liabilities (using a discount rate based on high-quality corporate bonds, or a suitable alternative
where there is no active corporate bond market).

All defined benefit plans are subject to regular actuarial review using the projected unit method, either by external consultants or by
actuaries employed by Unilever. The Group policy is that the most important plans, representing approximately 85% of the defined
benefit liabilities, are formally valued every year. Other major plans, accounting for a further 13% of the liabilities, have their liabilities
updated each year. Group policy for the remaining plans requires a full actuarial valuation at least every three years.
Asset values for all plans are updated every year.

For defined contribution plans, the charges to the income statement are the company contributions payable, as the company’s
obligation is limited to the contributions paid into the plans. The assets and liabilities of such plans are not included in the balance
sheet of the Group.

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

4B. PENSIONS AND SIMILAR OBLIGATIONS CONTINUED

DESCRIPTION OF PLANS
The Group increasingly operates a number of defined contribution plans, the assets of which are held in external funds. In certain
countries the Group operates defined benefit pension plans based on employee pensionable remuneration and length of service.
The majority of defined benefit plans are either career average, final salary or hybrid plans and operate on a funded basis. Benefits are
determined by the plan rules and are linked to inflation in some countries. The Group also provides other post-employment benefits,
mainly post-employment healthcare plans in the United States. These plans are predominantly unfunded.

GOVERNANCE
The majority of the Group’s externally funded plans are established as trusts, foundations or similar entities. The operation of these
entities is governed by local regulations and practice in each country, as is the nature of the relationship between the Group and the
Trustees (or equivalent) and their composition. Where Trustees (or equivalent) are in place to operate plans, they are generally required
to act on behalf of the plan’s stakeholders. They are tasked with periodic reviews of the solvency of the fund in accordance with local
legislation and play a role in the long-term investment and funding strategy. The Group also has an internal body, the Pensions and
Equity Committee, that is responsible for setting the company’s policies and decision making on plan matters, including but not limited to
design, funding, investments, risk management and governance.

INVESTMENT STRATEGY
The Group’s investment strategy in respect of its funded plans is implemented within the framework of the various statutory
requirements of the territories where the plans are based. The Group has developed policy guidelines for the allocation of assets to
different classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order to
limit the cost to the Group of the benefits provided. To achieve this, investments are well diversified, such that the failure of any single
investment would not have a material impact on the overall level of assets. The plans continue to invest a good proportion of the assets in
equities, which the Group believes offer the best returns over the long term commensurate with an acceptable level of risk. The plans
expose the Group to a number of actuarial risks such as investment risk, interest rate risk, longevity risk and, in certain markets,
inflation risk. There are no unusual entity or plan specific risks to the Group. For risk control, the pension funds also have significant
investments in liability matching assets (bonds) as well as in property and other alternative assets; additionally, the Group uses
derivatives to further mitigate the impact of the risks outlined above. The majority of assets are managed by a number of external fund
managers with a small proportion managed in-house. Unilever has a pooled investment vehicle (Univest) which it believes offers its
pension plans around the world a simplified externally managed investment vehicle to implement their strategic asset allocation models,
currently for bonds, equities and alternative assets. The aim is to provide high-quality, well diversified, cost-effective, risk-controlled
vehicles. The pension plans’ investments are overseen by Unilever’s internal investment company, the Univest Company.

ASSUMPTIONS
With the objective of presenting the assets and liabilities of the pensions and other post-employment benefit plans at their fair value on
the balance sheet, assumptions under IAS 19 are set by reference to market conditions at the valuation date. The actuarial assumptions
used to calculate the benefit liabilities vary according to the country in which the plan is situated. The following table shows the
assumptions, weighted by liabilities, used to value the principal defined benefit plans (which cover approximately 96% of total pension
liabilities) and the plans providing other post-employment benefits.

Discount rate
Inflation
Rate of increase in salaries
Rate of increase for pensions in payment (where provided)
Rate of increase for pensions in deferment (where provided)
Long-term medical cost inflation

31 December 2015

31 December 2014

Principal
defined benefit
pension plans

Other post-
employment
benefit
plans

Pension
plans

20,466

–
–
–
–

18
18
–
–

–
–
–
–
1

–

8,336
2,957
3,086
2,293

8,864
4,637
2,749
1,478

(1,182)
762
1,384
1,050
962

290

–
–
–
–

17
17

–

–
–
–
–
1

–

Pension
plans

20,723

7,993
2,526
3,313
2,154

9,741
4,870
2,970
1,901

(1,647)
721
1,689
1,123
810

293

The fair values of the above equity and fixed income instruments are determined based on quoted market prices in active markets.
The fair value of private equity, properties, derivatives and hedge funds are not based on quoted market prices in active markets.
The Group uses swaps to hedge some of its exposure to inflation and interest rate risk. Foreign currency exposures in part are also
hedged by the use of forward foreign exchange contracts. Assets included in the Other category are commodities, cash and insurance
contracts which are also unquoted assets.

Equity securities include Unilever securities amounting to €14 million (0.1% of total plan assets) and €71 million (0.3% of total plan
assets) at 31 December 2015 and 2014 respectively. Property includes property occupied by Unilever amounting to €17 million at
31 December 2015 (2014: €15 million).

The pension assets above exclude the assets in a Special Benefits Trust amounting to €86 million (2014: €86 million) to fund pension
and similar liabilities in the United States (see also note 17A on page 126.

SENSITIVITIES
The sensitivity of the overall pension liabilities to changes in the weighted key assumptions are:

Discount rate
Inflation rate
Life expectancy
Long-term medical cost inflation(b)

Change in assumption

Change in liabilities

Increase by 0.5%
Increase by 0.5%
Increase by 1 year
Increase by 1.0%

-7%
+5%
+4%
+1%

An equivalent decrease in each assumption would have an equal and opposite impact on liabilities.
(b) Long-term medical cost inflation only relates to post-retirement medical plans.

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring
at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption
while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate
the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity
analysis did not change compared with the previous period.

103

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

4B. PENSIONS AND SIMILAR OBLIGATIONS CONTINUED

CASH FLOW
Group cash flow in respect of pensions and similar post-employment benefits comprises company contributions paid to funded
plans and benefits paid by the company in respect of unfunded plans, as set out in the following table (including the current estimate
of contributions for 2016):

Company contributions to funded plans:

Defined benefit
Defined contributions

Benefits paid by the company in respect of unfunded plans:

Defined benefit

Group cash flow in respect of pensions and similar benefits

€ million
2016
Estimate

350
190

160

700

€ million
2015

€ million
2014

€ million
2013

356
197

157

710

386
115

151

652

453
121

141

715

The Group’s funding policy is to periodically review the contributions made to the plans while taking account of local legislation.

4C. SHARE-BASED COMPENSATION PLANS

The fair value of awards at grant date is calculated using appropriate pricing models. This value is expensed over their vesting period,
with a corresponding credit to equity. The expense is reviewed and adjusted to reflect changes to the level of awards expected to vest,
except where this arises from a failure to meet a market condition. Any cancellations are recognised immediately in the income
statement.

As at 31 December 2015, the Group had share-based compensation plans in the form of performance shares, share options and other
share awards.

The numbers in this note include those for Executive Directors shown in the Directors’ Remuneration Report on pages 66 to 83 and those
for key management personnel shown in note 4A on page 99. Non-Executive Directors do not participate in any of the share-based
compensation plans.

The charge in each of the last three years is shown below, and relates to equity settled plans:

Income statement charge

Performance share plans
Other plans

€ million
2015

€ million
2014

€ million
2013

(143)
(7)

(150)

(186)
(2)

(188)

(221)
(7)

(228)

PERFORMANCE SHARE PLANS
Performance share awards are made under the Management Co-Investment Plan (MCIP) and the Global Share Incentive Plan (GSIP). The
MCIP allows Unilever’s managers to invest up to 60% of their annual bonus in shares in Unilever and to receive a corresponding award of
performance-related shares. Under GSIP Unilever’s managers receive annual awards of NV and PLC shares. The awards of both plans
will vest after three years between 0% and 200% of grant level, depending on the satisfaction of performance metrics.

The performance metrics of both MCIP and GSIP are underlying sales growth, operating cash flow and core operating margin
improvement. There is an additional target based on relative total shareholder return (TSR) for senior executives.

A summary of the status of the Performance Share Plans as at 31 December 2015, 2014 and 2013 and changes during the years ended on
these dates is presented below:

Outstanding at 1 January
Awarded
Vested
Forfeited

Outstanding at 31 December

104

2015
Number of
shares

17,468,291
8,890,394
(8,448,454)
(1,931,091)

2014
Number of
shares

18,909,204
9,724,186
(9,347,225)
(1,817,874)

2013
Number of
shares

18,031,101
7,780,730
(5,823,102)
(1,079,525)

15,979,140

17,468,291

18,909,204

Unilever Annual Report and Accounts 2015Financial statements

4C. SHARE-BASED COMPENSATION PLANS CONTINUED

Share award value information
Fair value per share award during the year

2015

2014

2013

€33.17

€27.80

€28.91

ADDITIONAL INFORMATION
At 31 December 2015, shares and options in NV or PLC totalling 17,363,014 (2014: 19,428,560) were held in respect of share-based
compensation plans of NV, PLC and its subsidiaries, including North American plans.

To satisfy the options granted, certain NV group companies hold 17,772,147 (2014: 18,822,613) ordinary shares of NV or PLC, and trusts
in Jersey and the United Kingdom hold no (2014: 1,053,470) NV or PLC shares. Shares acquired during 2015 represent 0.18% of the
Group’s called up share capital. The balance of shares held in connection with share plans at 31 December 2015 represented 0.6%
(2014: 0.7%) of the Group’s called up share capital.

The book value of €639 million (2014: €647 million) of all shares held in respect of share-based compensation plans for both NV and PLC
is eliminated on consolidation by deduction from other reserves. Their market value at 31 December 2015 was €710 million
(2014: €656 million).

At 31 December 2015, the exercise price of nil PLC options (NV: nil) were above the market price of the shares. At 31 December 2014,
the exercise price of 167,479 PLC options (NV: nil) were above the market price of the shares.

Shares held to satisfy options and related trusts are accounted for in accordance with IAS 32 ‘Financial Instruments: Presentation’
and SIC 12 ‘Consolidation of Special Purpose Entities’. All differences between the purchase price of the shares held to satisfy options
granted and the proceeds received for the shares, whether on exercise or lapse, are charged to reserves. The basis of the charge to
operating profit for the economic value of options granted is discussed on page 104.

Between 31 December 2015 and 15 February 2016 (the latest practicable date for inclusion in this report), 4,287,756 shares were granted,
no shares were vested and 190,719 shares were forfeited related to the Performance Share Plans.

5. NET FINANCE COSTS

Net finance costs are comprised of finance costs and finance income, including net finance costs in relation to pensions and
similar obligations.

Finance income includes income on cash and cash equivalents and income on other financial assets. Finance costs include interest
costs in relation to financial liabilities.

Borrowing costs are recognised based on the effective interest method.

Net finance costs

Finance costs

Bank loans and overdrafts
Interest on bonds and other loans(a)
Dividends paid on preference shares
Net gain/(loss) on transactions for which hedge accounting is not applied(b)

On foreign exchange derivatives
Exchange difference on underlying items

Finance income
Pensions and similar obligations

Notes

€ million
2015

€ million
2014

€ million
2013

(516)

(56)
(492)
(4)
36

(218)
254

144
(121)

(493)

(500)

(57)
(425)
(4)
(14)

(655)
641

117
(94)

(477)

(500)

(36)
(457)
(4)
(3)

368
(371)

103
(133)

(530)

(a) ‘Interest on bonds and other loans’ includes the impact of interest rate derivatives that are part of a fair value hedge accounting relationship and the

recycling of results from the cash flow hedge accounting reserve relating to derivatives that were part of a cash flow hedge accounting relation.

(b) For further details of derivatives for which hedge accounting is not applied, please refer to note 16C.

105

Unilever Annual Report and Accounts 2015Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

6. TAXATION

6A. INCOME TAX

Income tax on the profit for the year comprises current and deferred tax. Income tax is recognised in the income statement except
to the extent that it relates to items recognised directly in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
balance sheet date, and any adjustments to tax payable in respect of previous years.

Current tax in the consolidated income statement will differ from the income tax paid in the consolidated cash flow statement
primarily because of deferred tax arising on temporary differences and payment dates for income tax occurring after the balance
sheet date.

Tax charge in income statement

Current tax
Current year
Over/(under) provided in prior years

Deferred tax
Origination and reversal of temporary differences
Changes in tax rates
Recognition of previously unrecognised losses brought forward

€ million
2015

€ million
2014

€ million
2013

(1,992)
(57)

(2,111)
68

(2,049)

(2,043)

(2,320)
232

(2,088)

82
(13)
19

(112)
4
20

(88)

177
7
53

237

(1,961)

(2,131)

(1,851)

The reconciliation between the computed weighted average rate of income tax expense, which is generally applicable to Unilever
companies, and the actual rate of taxation charged is as follows:

Reconciliation of effective tax rate

Computed rate of tax(a)
Differences due to:

Incentive tax credits
Withholding tax on dividends
Expenses not deductible for tax purposes
Irrecoverable withholding tax
Income tax reserve adjustments – current and prior year
Transfer to/from unrecognised deferred tax assets

Effective tax rate

%
2015

(5)
2
2
2
2
1

%
2014

(5)
2
1
1
1
1

%
2013

(4)
2
2
1
(3)
–

(a) The computed tax rate used is the average of the standard rate of tax applicable in the countries in which Unilever operates, weighted by the amount of profit
before taxation generated in each of those countries. For this reason the rate may vary from year to year according to the mix of profit and related tax rates.

6B. DEFERRED TAX

Deferred tax is recognised using the liability method on taxable temporary differences between the tax base and the accounting base
of items included in the balance sheet of the Group. Certain temporary differences are not provided for as follows:

• goodwill not deductible for tax purposes;
• the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and
• differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets
and liabilities, using tax rates enacted, or substantively enacted, at the year end.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which
the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.

106

Unilever Annual Report and Accounts 2015Financial statements6B. DEFERRED TAX CONTINUED

Movements in 2015 and 2014

Pensions and similar obligations
Provisions
Goodwill and intangible assets
Accelerated tax depreciation
Tax losses
Fair value gains
Fair value losses
Share-based payments
Other

€ million
As at
1 January
2015

874
657
(1,292)
(753)
123
(10)
10
172
(29)

(248)

€ million

Income
statement

(23)
144
8
7
14
(2)
(62)
(2)
4

Other

(294)
(93)
(17)
(6)
(14)
(13)
68
20
(50)

(399)

€ million
As at
31 December
2015

€ million
As at
1 January
2014

557
708
(1,301)
(752)
123
(25)
16
190
(75)

(559)

440
672
(1,163)
(697)
147
(17)
(5)
173
10

(440)

€ million

Income
statement

(36)
(9)
(1)
(30)
3
6
5
(2)
(24)

(88)

Other

470
(6)
(128)
(26)
(27)
1
10
1
(15)

280

€ million
As at
31 December
2014

874
657
(1,292)
(753)
123
(10)
10
172
(29)

(248)

At the balance sheet date, the Group had unused tax losses of €3,338 million (2014: €2,664 million) and tax credits amounting to
€629 million (2014: €441 million) available for offset against future taxable profits. Deferred tax assets have not been recognised in
respect of unused tax losses of €2,941 million (2014: €2,371 million) and tax credits of €629 million (2014: €441 million), as it is not
probable that there will be future taxable profits within the entities against which the losses can be utilised. The majority of these tax
losses and credits arise in tax jurisdictions where they do not expire with the exception of €1,790 million (2014: €1,192 million) comprising
corporate income tax losses in the Netherlands which expire between now and 2024 and state and federal tax losses in the US which
expire between now and 2034.

Other deductible temporary differences of €67 million (2014: €67 million) have not been recognised as a deferred tax asset. There is
no expiry date for these differences.

At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for
which deferred tax liabilities have not been recognised was €1,505 million (2014: €1,566 million). No liability has been recognised in
respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences, and
it is probable that such differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when the deferred income taxes relate to the same fiscal authority. The following amounts, determined after appropriate
offsetting, are shown in the consolidated balance sheet:

Deferred tax assets and liabilities

Pensions and similar obligations
Provisions
Goodwill and intangible assets
Accelerated tax depreciation
Tax losses
Fair value gains
Fair value losses
Share-based payments
Other

€ million
Assets
2015

€ million
Assets
2014

€ million
Liabilities
2015

€ million
Liabilities
2014

€ million
Total
2015

€ million
Total
2014

434
516
126
(66)
96
12
(5)
59
13

564
515
127
(113)
88
14
(8)
85
14

123
192
(1,427)
(686)
27
(37)
21
131
(88)

310
142
(1,419)
(640)
35
(24)
18
87
(43)

1,185

1,286

(1,744)

(1,534)

557
708
(1,301)
(752)
123
(25)
16
190
(75)

(559)

874
657
(1,292)
(753)
123
(10)
10
172
(29)

(248)

Of which deferred tax to be recovered/(settled) after
more than 12 months

856

1,037

(1,811)

(1,586)

(955)

(549)

107

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

6C. TAX ON OTHER COMPREHENSIVE INCOME

Income tax is recognised in other comprehensive income for items recognised directly in equity.

Tax effects of the components of other comprehensive income were as follows:

€ million

Before
tax
2015

82
1,124
(510)

696

€ million
Tax
(charge)/
credit
2015

18
(240)
29

(193)

€ million

After
tax
2015

100
884
(481)

503

Before
tax
2014

(110)
(1,710)
(16)

(1,836)

€ million
Tax
(charge)/
credit
2014

25
460
(9)

476

€ million

After
tax
2014

(85)
(1,250)
(25)

(1,360)

Fair value gains/(losses) on financial instruments
Remeasurements of defined benefit pension plans
Currency retranslation gains/(losses)

7. COMBINED EARNINGS PER SHARE

The combined earnings per share calculations are based on the average number of share units representing the combined ordinary
shares of NV and PLC in issue during the period, less the average number of shares held as treasury stock.

In calculating diluted earnings per share and core earnings per share, a number of adjustments are made to the number of shares,
principally: (i) conversion into PLC ordinary shares in the year 2038 of shares in a group company (refer below) and (ii) the exercise
of share options by employees.

On 19 May 2014 Unilever PLC purchased the shares convertible to PLC ordinary shares in 2038. Due to the repurchase the average
number of combined share units is not adjusted for these shares from 20 May 2014 to 31 December 2015. For 2014 the adjusted average
number of share units is calculated based on the number of days the shares were dilutive during the year ended 31 December 2014.

Earnings per share for total operations for the 12 months were calculated as follows:

Combined earnings per share

Basic earnings per share
Diluted earnings per share
Core EPS

Calculation of average number of share units

Average number of shares: NV
PLC
Less shares held by employee share trusts and companies

Combined average number of share units
Add shares issuable in 2038
Add dilutive effect of share-based compensation plans

Diluted combined average number of share units

Calculation of earnings

Net profit
Non-controlling interests

Net profit attributable to shareholders’ equity

Calculation of core earnings

Net profit attributable to shareholders’ equity
Post-tax impact of non-core items

Core profit attributable to shareholders’ equity

108

€
2015

1.73
1.72
1.82

€
2014

1.82
1.79
1.61

€
2013

1.71
1.66
1.58

Millions of share units

2015

2014

2013

1,714.7
1,310.2
(184.8)

2,840.1
–
15.3

1,714.7
1,310.2
(184.4)

2,840.5
26.8
15.3

2,855.4

2,882.6

1,714.7
1,310.2
(186.8)

2,838.1
70.9
15.0

2,924.0

€ million
2015

€ million
2014

€ million
2013

5,259
(350)

4,909

5,515
(344)

5,171

5,263
(421)

4,842

Notes

€ million
2015

€ million
2014

€ million
2013

4,909
301

5,210

5,171
(537)

4,634

4,842
(235)

4,607

Unilever Annual Report and Accounts 2015Financial statements

8. DIVIDENDS ON ORDINARY CAPITAL

Dividends are recognised on the date that the shareholder’s right to receive payment is established. This is generally the date when
the dividend is declared.

Dividends on ordinary capital during the year

NV dividends
PLC dividends

€ million
2015

€ million
2014

€ million
2013

(1,862)
(1,542)

(3,404)

(1,757)
(1,439)

(3,196)

(1,638)
(1,343)

(2,981)

Four quarterly interim dividends were declared and paid during 2015 totalling €1.19 (2014: €1.12) per NV ordinary share and £0.87
(2014: £0.91) per PLC ordinary share.

Quarterly dividends of €0.30 per NV ordinary share and £0.23 per PLC ordinary share were declared on 19 January 2016, to be payable
in March 2016. See note 26 ‘Events after the balance sheet date’ on page 135. Total dividends declared in relation to 2015 were €1.21
(2014: €1.14) per NV ordinary share and £0.88 (2014: £0.90) per PLC ordinary share.

9. GOODWILL AND INTANGIBLE ASSETS

GOODWILL
Goodwill is initially recognised based on the accounting policy for business combinations (see note 21). Goodwill is subsequently
measured at cost less amounts provided for impairment. The Group’s cash generating units (CGUs) are based on the four product
categories and the three geographical areas.

Goodwill acquired in a business combination is allocated to the Group’s CGUs, or groups of CGUs, that are expected to benefit from the
synergies of the combination. These might not always be the same as the CGUs that include the assets and liabilities of the acquired
business. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill
is monitored for internal management purposes, and is not larger than an operating segment.

INTANGIBLE ASSETS
Separately purchased intangible assets are initially measured at cost. On acquisition of new interests in group companies, Unilever
recognises any specifically identifiable intangible assets separately from goodwill. Intangible assets are initially measured at fair
value as at the date of acquisition.

Finite-life intangible assets mainly comprise patented and non-patented technology, know-how and software. These assets are
capitalised and amortised on a straight-line basis in the income statement over the period of their expected useful lives, or the period
of legal rights if shorter. None of the amortisation periods exceeds ten years. Indefinite-life intangibles mainly comprise trademarks
and brands. These assets are capitalised at cost but are not amortised. They are subject to a review for impairment annually, or more
frequently if events or circumstances indicate this is necessary. Any impairment is charged to the income statement as it arises.

Internally produced intangibles generally are not capitalised unless it can be demonstrated that the recognition criteria are met.

RESEARCH AND DEVELOPMENT
Development expenditure is capitalised only if the costs can be reliably measured, future economic benefits are probable, the product
is technically feasible and the Group has the intent and the resources to complete the project. Research expenditure is recognised in
profit or loss as incurred.

109

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

9. GOODWILL AND INTANGIBLE ASSETS CONTINUED

Movements during 2015

Cost
1 January 2015
Acquisitions of group companies
Disposals of group companies
Reclassed to held for disposal
Additions
Disposals
Currency retranslation

31 December 2015

Accumulated amortisation and impairment
1 January 2015
Disposals of group companies
Amortisation/impairment for the year
Disposals
Currency retranslation

31 December 2015

Net book value 31 December 2015

Movements during 2014

Cost
1 January 2014
Acquisitions of group companies
Disposals of group companies
Reclassed to held for disposal
Additions
Disposals
Currency retranslation

31 December 2014

Accumulated amortisation and impairment
1 January 2014
Disposals of group companies
Amortisation/impairment for the year
Disposals
Currency retranslation

31 December 2014

Net book value 31 December 2014

€ million

Goodwill

€ million
Indefinite-life
intangible
assets

€ million
Finite-life
intangible
assets

€ million

Software

Total

15,725
1,012
(5)
(34)
–
–
680

17,378

(1,083)
–
–
–
(82)

(1,165)

16,213

14,890
184
(207)
–
–
–
858

15,725

(973)
–
–
–
(110)

(1,083)

14,642

6,364
842
(42)
(9)
3
–
286

7,444

(12)
–
–
–
(1)

(13)

7,431

6,266
356
(587)
(11)
36
(2)
306

6,364

(227)
566
(305)
1
(47)

(12)

6,352

685
112
–
–
3
(3)
22

819

(644)
–
(8)
3
(24)

(673)

146

641
20
–
–
–
–
24

685

(613)
–
(2)
–
(29)

(644)

2,136
–
–
–
329
(7)
80

24,910
1,966
(47)
(43)
335
(10)
1,068

2,538

28,179

(997)
–
(265)
7
(14)

(2,736)
–
(273)
10
(121)

(1,269)

(3,120)

1,269

25,059

1,715
–
(1)
–
328
(9)
103

23,512
560
(795)
(11)
364
(11)
1,291

2,136

24,910

(795)
–
(178)
9
(33)

(997)

(2,608)
566
(485)
10
(219)

(2,736)

1,139

22,174

There are no significant carrying amounts of goodwill and intangible assets that are allocated across multiple cash generating units.

IMPAIRMENT CHARGES
We have tested all material goodwill and indefinite-life intangible assets for impairment. No impairments were identified.

SIGNIFICANT CGUs
The goodwill and indefinite-life intangible assets held in the three CGUs relating to Foods across the geographical areas are considered
significant within the total carrying amounts of goodwill and indefinite-life intangible assets at 31 December 2015 in terms of size, headroom
and sensitivity to assumptions used. No other CGUs are considered significant in this respect.

The goodwill and indefinite-life intangible assets held in the significant CGUs are:

Foods Europe
Foods The Americas
Foods Asia/AMET/RUB

€ billion
2015

Goodwill

€ billion
2015
Indefinite-
life
intangibles

€ billion
2014

Goodwill

€ billion
2014
Indefinite-
life
intangibles

6.0
3.7
1.6

1.6
1.6
0.5

5.9
3.7
1.6

1.6
1.5
0.4

Value in use has been calculated as the present value of projected future cash flows. A pre-tax discount rate of 7.4% (2014: 7.4%) was used.

110

Unilever Annual Report and Accounts 2015Financial statements

9. GOODWILL AND INTANGIBLE ASSETS CONTINUED
For the significant CGUs, the following key assumptions were used in the discounted cash flow projections:

Long-term sustainable growth rates
Average near-term nominal growth rates
Average operating margins

Foods

Europe

Foods
The
Americas

Foods
Asia/
AMET/RUB

0.0%
0.2%
20% – 23%

2.6%
4.0%
16%

4.0%
5.6%
11%

The growth rates and margins used to estimate future performance are based on past performance and our experience of growth rates
and margins achievable in our key markets.

The projections covered a period of five years, as we believe this to be the most appropriate timescale over which to review and consider
annual performances before applying a fixed terminal value multiple to the final year cash flows.

The growth rates and other key assumptions used are consistent with the prudent end of the range of estimates from our annual forecast
and three year strategic plan extended to year 4 and 5.

We have performed sensitivity analyses around the base assumptions and have concluded that no reasonable possible changes in key
assumptions would cause the recoverable amount of the significant CGUs to be less than the carrying value.

10. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment is measured at cost including eligible borrowing costs less depreciation and accumulated impairment
losses.

Depreciation is provided on a straight-line basis over the expected average useful lives of the assets. Residual values are reviewed at
least annually. Estimated useful lives by major class of assets are as follows:

• Freehold buildings (no depreciation on freehold land) 40 years
• Leasehold land and buildings
• Plant and equipment

40 years (or life of lease if less)
2-20 years

Property, plant and equipment is subject to review for impairment if triggering events or circumstances indicate that this is
necessary. If an indication of impairment exists, the asset’s or cash generating unit’s recoverable amount is estimated and any
impairment loss is charged to the income statement as it arises.

Movements during 2015

Cost
1 January 2015
Acquisitions of group companies
Disposals of group companies
Additions
Disposals
Currency retranslation
Reclassification as held for sale

31 December 2015

Accumulated amortisation and impairment
1 January 2015
Disposals of group companies
Depreciation for the year
Disposals
Currency Translation
Reclassification as held for sale

31 December 2015

Net Book Value as at 31 December 2015

Includes payments on account and assets in course of construction

(a) Includes €270 million (2014: €259 million) of freehold land.

The Group has committed to capital expenditure of €535 million (2014: €640 million).

€ million
Land and
buildings

€ million
Plant and
equipment

€ million

Total

4,200
40
–
369
(64)
37
(31)

14,714
13
(5)
1,513
(723)
(5)
(141)

18,914
53
(5)
1,882
(787)
32
(172)

4,551

15,366

19,917

(1,346)
–
(120)
31
(29)
21

(7,096)
2
(977)
620
(29)
64

(8,442)
2
(1,097)
651
(58)
85

(1,443)

(7,416)

(8,859)

3,108

217

7,950

1,334

11,058(a)

1,551

111

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

10. PROPERTY, PLANT AND EQUIPMENT CONTINUED

Movements during 2014

Cost
1 January 2014
Acquisitions of group companies
Disposals of group companies
Additions
Disposals
Currency retranslation
Reclassification as held for sale

31 December 2014

Accumulated depreciation
1 January 2014
Disposals of group companies
Depreciation charge for the year
Disposals
Currency retranslation
Reclassification as held for sale

31 December 2014

Net book value 31 December 2014

Includes payments on account and assets in course of construction

11. OTHER NON-CURRENT ASSETS

€ million
Land and
buildings

€ million
Plant and
equipment

€ million

Total

3,847
21
(50)
306
(109)
155
30

13,382
20
(191)
1,593
(619)
523
6

17,229
41
(241)
1,899
(728)
678
36

4,200

14,714

18,914

(1,254)
27
(102)
31
(52)
4

(1,346)

2,854

253

(6,631)
108
(845)
516
(243)
(1)

(7,885)
135
(947)
547
(295)
3

(7,096)

(8,442)

7,618

1,499

10,472

1,752

Joint ventures are undertakings in which the Group has an interest and which are jointly controlled by the Group and one or more
other parties. Associates are undertakings where the Group has an investment in which it does not have control or joint control but
can exercise significant influence.

Interests in joint ventures and associates are accounted for using the equity method and are stated in the consolidated balance sheet
at cost, adjusted for the movement in the Group’s share of their net assets and liabilities. The Group’s share of the profit or loss after
tax of joint ventures and associates is included in the Group’s consolidated profit before taxation.

Where the Group’s share of losses exceeds its interest in the equity accounted investee, the carrying amount of the investment is
reduced to zero and the recognition of further losses is discontinued, except to the extent that the Group has an obligation to make
payments on behalf of the investee.

Biological assets are measured at fair value less costs to sell with any changes recognised in the income statement.

Interest in net assets of joint ventures
Interest in net assets of associates
Long-term trade and other receivables
Fair value of biological assets
Other non-financial assets(a)

(a) Other non-financial assets mainly relate to tax deposits paid.

€ million
2015

€ million
2014

48
59
413
48
203

771

52
42
265
42
256

657

112

Unilever Annual Report and Accounts 2015Financial statements11. OTHER NON-CURRENT ASSETS CONTINUED

Movements during 2015 and 2014

Joint ventures(a)
1 January
Additions
Dividends received/reductions
Share of net profit
Currency retranslation

31 December

Associates(b)
1 January
Additions
Dividends received/reductions
Share of net (loss)/profit
Currency retranslation

31 December

€ million
2015

€ million
2014

52
4
(137)
117
12

42
24
–
(10)
3

57
4
(123)
103
11

38
2
5
(5)
2

(a) Our principal joint ventures are Unilever Jerónimo Martins for Portugal, the Pepsi/Lipton Partnership for the US and Pepsi Lipton International for the rest of

the world.

(b) Associates as at 31 December 2015 primarily comprise our investments in Langholm Capital Partners. Other Unilever Ventures assets are included under

‘Other non-current non-financial assets’. During the year we sold shares in an associate (carrying value zero) for a consideration of €110 million.

The joint ventures and associates have no significant contingent liabilities to which the Group is exposed, and the Group has no significant
contingent liabilities in relation to its interest in the joint ventures and associates.

The Group has no outstanding capital commitments to joint ventures.

Outstanding balances with joint ventures and associates are shown in note 23 on page 134.

12. INVENTORIES

Inventories are valued at the lower of weighted average cost and net realisable value. Cost comprises direct costs and, where
appropriate, a proportion of attributable production overheads. Net realisable value is the estimated selling price less the estimated
costs necessary to make the sale.

Inventories

Raw materials and consumables
Finished goods and goods for resale

€ million
2015

€ million
2014

1,381
2,954

4,335

1,364
2,804

4,168

Inventories with a value of €100 million (2014: €76 million) are carried at net realisable value, this being lower than cost. During 2015,
€119 million (2014: €126 million) was charged to the income statement for damaged, obsolete and lost inventories. In 2015,
€123 million (2014: €120 million) was utilised or released to the income statement from inventory provisions taken in earlier years.

13. TRADE AND OTHER CURRENT RECEIVABLES

Trade and other receivables are initially recognised at fair value plus any directly attributable transaction costs. Subsequently these
assets are held at amortised cost, using the effective interest method and net of any impairment losses.

We do not consider the fair values of trade and other receivables to be significantly different from their carrying values. Credit terms
for customers are determined in individual territories. Concentrations of credit risk with respect to trade receivables are limited, due
to the Group’s customer base being large and diverse. Our historical experience of collecting receivables, supported by the level of
default, is that credit risk is low across territories and so trade receivables are considered to be a single class of financial assets.
Balances are considered for impairment on an individual basis rather than by reference to the extent that they become overdue.

113

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

13. TRADE AND OTHER CURRENT RECEIVABLES CONTINUED

Trade and other current receivables

Due within one year
Trade receivables
Prepayments and accrued income
Other receivables

€ million
2015

€ million
2014

2,917
561
1,326

4,804

2,827
540
1,662

5,029

Other receivables comprise financial assets of €379 million (2014: €425 million), including supplier and customer deposits, employee
advances and certain derivatives, and non-financial assets of €947 million (2014: €1,237 million), including tax deposits and reclaimable
sales tax.

Ageing of trade receivables

Total trade receivables
Less impairment provision for trade receivables

Of which:

Not overdue
Past due less than three months
Past due more than three months but less than six months
Past due more than six months but less than one year
Past due more than one year

Impairment provision for trade receivables

Impairment provision for trade and other receivables – current and non-current impairments

1 January
Charged to income statement
Reductions/releases
Currency retranslation

31 December

€ million
2015

€ million
2014

3,047
(130)

2,917

2,200
634
73
52
88
(130)

2,917

2,956
(129)

2,827

2,156
584
70
46
100
(129)

2,827

€ million
2015

€ million
2014

145
38
(25)
(3)

155

149
30
(36)
2

145

14. TRADE PAYABLES AND OTHER LIABILITIES

Trade payables and other liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequently
these liabilities are held at amortised cost, using the effective interest method.

We do not consider the fair values of trade and other payables to be significantly different from their carrying values.

Trade payables and other liabilities

Due within one year
Trade payables
Accruals
Social security and sundry taxes
Others

Due after more than one year
Accruals
Others

Total trade payables and other liabilities

Included in others are third party royalties, certain derivatives and dividends to non-controlling interests.

114

€ million
2015

€ million
2014

8,296
3,616
559
1,317

7,636
3,172
555
1,243

13,788

12,606

120
273

393

109
269

378

14,181

12,984

Unilever Annual Report and Accounts 2015Financial statements15. CAPITAL AND FUNDING

ORDINARY SHARES
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised
as a deduction from equity, net of any tax effects.

INTERNAL HOLDINGS
The ordinary shares numbered 1 to 2,400 (inclusive) in NV (‘Special Shares’) and deferred stock of PLC are held as to one half
of each class by N.V. Elma – a subsidiary of NV – and one half by United Holdings Limited – a subsidiary of PLC. This capital is
eliminated on consolidation.

SHARE-BASED COMPENSATION
The Group operates a number of share-based compensation plans involving options and awards of ordinary shares of NV and PLC.
Full details of these plans are given in note 4C on pages 104 and 105.

OTHER RESERVES
Other reserves include the fair value reserve, the foreign currency translation reserve, the capital redemption reserve and
treasury stock.

SHARES HELD BY EMPLOYEE SHARE TRUSTS AND GROUP COMPANIES
Certain PLC trusts, NV and group companies purchase and hold NV and PLC shares to satisfy performance shares granted, share
options granted and other share awards (see note 4C). The assets and liabilities of these trusts and shares held by group companies
are included in the consolidated financial statements. The book value of shares held is deducted from other reserves, and trusts’
borrowings are included in the Group’s liabilities. The costs of the trusts are included in the results of the Group. These shares are
excluded from the calculation of earnings per share.

FINANCIAL LIABILITIES
Financial liabilities are initially recognised at fair value, less any directly related transaction costs. Certain bonds are designated
as being part of a fair value hedge relationship. In these cases, the bonds are carried at amortised cost, adjusted for the fair value
of the risk being hedged, with changes in value shown in profit and loss. Other financial liabilities, excluding derivatives, are
subsequently carried at amortised cost.

DERIVATIVE FINANCIAL INSTRUMENTS
The Group’s use of, and accounting for, derivative instruments is explained in note 16 on page 120 and on pages 124 to 125.

The Group’s Treasury activities are designed to:
• maintain a competitive balance sheet in line with A+/A1 rating (see below);
• secure funding at lowest costs for the Group’s operations, M&A activity and external dividend payments (see below);
• protect the Group’s financial results and position from financial risks (see note 16);
• maintain market risks within acceptable parameters, while optimising returns (see note 16); and
• protect the Group’s financial investments, while maximising returns (see note 17).

The Treasury department provides central deposit taking, funding and foreign exchange management services for the Group’s
operations. The department is governed by standards and processes which are approved by Unilever Leadership Executive (ULE).
In addition to guidelines and exposure limits, a system of authorities and extensive independent reporting covers all major areas
of activity. Performance is monitored closely by senior management. Reviews are undertaken periodically by corporate audit.

Key instruments used by the department are:
• short-term and long-term borrowings;
• cash and cash equivalents; and
• plain vanilla derivatives, including interest rate swaps and FX contracts.

The Treasury department maintains a list of approved financial instruments. The use of any new instrument must be approved
by the Chief Financial Officer. The use of leveraged instruments is not permitted.

115

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

15. CAPITAL AND FUNDING CONTINUED
Unilever considers the following components of its balance sheet to be managed capital:
• total equity – retained profit, other reserves, share capital, share premium, non-controlling interests (notes 15A and 15B);
• short-term debt – current financial liabilities (note 15C); and
• long-term debt – non-current bank loans, bonds and other loans (note 15C).

The Group manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders
through an appropriate balance of debt and equity. The capital structure of the Group is based on management’s judgement of the
appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion
to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

Our current long-term credit rating is A+/A1 and our short-term credit rating is A1/P1. We aim to maintain a competitive balance sheet
which we consider to be the equivalent of a credit rating of A+/A1 in the long term. This provides us with:
• appropriate access to the debt and equity markets;
• sufficient flexibility for acquisitions;
• sufficient resilience against economic and financial uncertainty while ensuring ample liquidity; and
• optimal weighted average cost of capital, given the above constraints.

Unilever monitors the qualitative and quantitative factors utilised by the rating agencies. This information is publicly available and
is updated by the credit rating agencies on a regular basis.

Unilever will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. Unilever is not subject to financial
covenants in any of its significant financing agreements.

15A. SHARE CAPITAL

Unilever N.V.

NV ordinary shares of €0.16 each
NV ordinary shares of €428.57 each (shares numbered 1 to 2,400 – ‘Special Shares’)
Internal holdings eliminated on consolidation (€428.57 shares)

Unilever PLC

PLC ordinary shares of 31/9p each
PLC deferred stock of £1 each
Internal holding eliminated on consolidation (£1 stock)

Euro equivalent in millions (at £1.00 = €5.143)(c)

Unilever Group

Ordinary share capital of NV
Ordinary share capital of PLC

Issued,
called up
and

Authorised(a)

fully paid(b)

Authorised(a)

2015

2014

Issued,
called up
and

fully paid(b)
2014

€ million

480
1
–

481

274
1
(1)

274

480
1
–

481

274
1
(1)

274

£ million

40.8
0.1
(0.1)

40.8

€ million

210

€ million

274
210

484

40.8
0.1
(0.1)

40.8

€ million

210

€ million

274
210

484

(a) As at 31 December 2015, Unilever N.V. had 3,000,000,000 (2014: 3,000,000,000) authorised ordinary shares. The requirement for a UK company to have an
authorised share capital was abolished by the UK Companies Act 2006. In May 2010 Unilever PLC shareholders approved new Articles of Association to
reflect this.

(b) As at 31 December 2015, the following quantities of shares were in issue: 1,714,727,700 of NV ordinary shares; 2,400 of NV Special Shares; 1,310,156,361 of

PLC ordinary shares and 100,000 of PLC deferred stock. The same quantities were in issue at 31 December 2014.

(c) Conversion rate for PLC ordinary shares nominal value to euro is £1 = €5.143 (which is calculated by dividing the nominal value of NV ordinary shares by the

nominal value of PLC ordinary shares).

For information on the rights of shareholders of NV and PLC and the operation of the Equalisation Agreement, see the Corporate
Governance report on page 45.

A nominal dividend of 6% per annum is paid on the deferred stock of PLC.

116

Unilever Annual Report and Accounts 2015Financial statements

15B. EQUITY

BASIS OF CONSOLIDATION
Unilever is the majority shareholder of all material subsidiaries and has control in all cases. Information in relation to Group Companies
is provided on page 136 to 147.

SUBSIDIARIES WITH SIGNIFICANT NON-CONTROLLING INTERESTS
Unilever has one subsidiary company which has a material non-controlling interest, Hindustan Unilever limited (HUL). Summary
financial information in relation to HUL is shown below.

HUL Balance sheet as at 31 December

Non-current assets
Current assets
Current liabilities
Non-current liabilities

HUL Comprehensive income for the year ended 31 December

Turnover
Profit after tax
Total comprehensive income

HUL Cash flow for the year ended 31 December

Net increase/(decrease) in cash and cash-equivalents

HUL Non-controlling interest

1 January
Share of (profit)/loss for the year ended 31 December
Other comprehensive income
Dividend paid to the non-controlling interest
Other changes in equity
Currency translation

31 December

ANALYSIS OF RESERVES FOR THE GROUP

Other reserves as at 31 December

Fair value reserves

Cash flow hedges
Available-for-sale financial assets

Currency retranslation of group companies
Adjustment on translation of PLC’s ordinary capital at 31/9p = €0.16
Capital redemption reserve
Book value of treasury stock
Other(a)

(a) Relates to option on purchase of subsidiary for non-controlling interest.

€ million
2015

€ million
2014

649
1,265
(968)
(125)

636
1,093
(911)
(77)

4,212
438
484

3,529
445
519

(107)

(258)
(143)
(10)
152
–
(12)

(271)

(221)
(145)
1
130
–
(23)

(258)

€ million
Total
2015

€ million
Total
2014

€ million
Total
2013

(98)

(174)
76

(3,285)
(164)
32
(4,119)
(182)

(198)

(234)
36

(2,901)
(164)
32
(4,125)
(182)

(7,816)

(7,538)

(113)

(162)
49

(2,611)
(164)
32
(3,890)
–

(6,746)

Unilever acquired 3,342,212 (2014: 7,304,993) NV ordinary shares and 2,102,300 (2014: 6,058,733) PLC shares through purchases on the
stock exchanges during the year. These shares are held as treasury stock as a separate component of other reserves. The total number
held at 31 December 2015 was 152,638,561 (2014: 153,928,997) NV shares and 33,391,209 (2014: 34,204,709) PLC shares. Of these,
11,077,932 NV shares and 6,694,215 PLC shares were held in connection with share-based compensation plans (see note 4C on pages 104
and 105.

117

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

15B. EQUITY CONTINUED

Treasury stock – movements during the year

1 January
Purchases and other utilisations

31 December

Currency retranslation reserve – movements during the year

1 January
Currency retranslation during the year
Movement in net investment hedges and exchange differences in net investments in foreign operations
Recycled to income statement

31 December

OTHER COMPREHENSIVE INCOME RECONCILIATION

Fair value gains/(losses) on financial instruments – movement during the year

1 January
Cash flow hedges
Available for sale financial assets

31 December

€ million
2015

€ million
2014

(4,125)
6

(3,890)
(235)

(4,119)

(4,125)

€ million
2015

€ million
2014

(2,901)
(1,001)
617
–

(2,611)
(626)
412
(76)

(3,285)

(2,901)

€ million
2015

€ million
2014

(198)
60
40

(98)

(113)
(72)
(13)

(198)

Refer to the consolidated statement of comprehensive income on page 90, the consolidated statement of changes in equity on page 91
and note 6C on page 108.

Remeasurement of defined benefit pension plans net of tax

1 January
Movement during the year

31 December

€ million
2015

€ million
2014

(2,357)
884

(1,107)
(1,250)

(1,473)

(2,357)

Refer to the consolidated statement of comprehensive income on page 90, the consolidated statement of changes in equity on page 91,
note 4B from page 99 to 104 and note 6C on page 108.

Currency retranslation gains/(losses) – movement during the year

1 January
Currency retranslation during the year:

Other reserves
Retained profit
Non-controlling interest

31 December

€ million
2015

€ million
2014

(3,031)

(3,006)

(377)
(109)
5

(290)
208
57

(3,512)

(3,031)

118

Unilever Annual Report and Accounts 2015Financial statements15C. FINANCIAL LIABILITIES

Financial liabilities 2015(a)(b)

Preference shares
Bank loans and overdrafts
Bonds and other loans
Finance lease creditors
Derivatives
Other financial liabilities

€ million
Current
2015

€ million
Non-current
2015

Notes

–
762
3,583
37
118
289

4,789

68
302
9,120
158
6
200

9,854

€ million
Total
2015

68
1,064
12,703
195
124
489

14,643

€ million
Current
2014

€ million
Non-current
2014

–
588
4,428
13
277
230

5,536

68
526
6,145
186
73
188

7,186

€ million
Total
2014

68
1,114
10,573
199
350
418

12,722

(a) For the purposes of notes 15C and 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities

which are covered in notes 13 and 14 respectively.

(b) Financial liabilities include €4 million (2014: €1 million) of secured liabilities.

ANALYSIS OF BONDS AND OTHER LOANS

Unilever N.V.
Floating Rate Notes 2018 (€)
1.750% Bonds 2020 (€)
0.500% Notes 2022 (€)
1.000% Notes 2023 (€)
2.950% Notes 2017 (Renminbi)
3.375% Bonds 2015 (€)
3.500% Notes 2015 (Swiss Francs)
Commercial paper

Total NV

Unilever PLC
4.750% Bonds 2017 (£)
2.000% Notes 2018 (£)

Total PLC

Other group companies
Switzerland
Other

United States
4.250% Notes 2021 (US$)
5.900% Bonds 2032 (US$)
4.800% Notes 2019 (US$)
2.200% Notes 2019 (US$)
0.850% Notes 2017 (US$)
2.750% Notes 2016 (US$)
2.100% Notes 2020 (US$)
3.100% Notes 2025 (US$)
7.250% Bonds 2026 (US$)
6.625% Bonds 2028 (US$)
5.150% Notes 2020 (US$)
7.000% Bonds 2017 (US$)
5.600% Bonds 2097 (US$)
0.450% Notes 2015 (US$)
Commercial paper (US$)

Other countries

Total other group companies

Total bonds and other loans

€ million
Total
2015

€ million
Total
2014

749
747
742
495
42
–
–
1,551

4,326

542
339(b)

881

–
746
–
–
40
764(a)
291
2,739

4,580

511
317(b)

828

912
904
686
681
502
458
454
451
265
206
145
136
84
–
1,532

819
812
616
610
449
411
–
–
237
185
132
121
74
370
255

7,496

5,165

12,703

10,573

(a) Of which €14 million related to a fair value adjustment following the fair value hedge accounting of a fix-to-float interest rate swap.
(b) Of which €1 million (2014: €(2) million) relates to a fair value adjustment following the fair value hedge accounting of a fix-to-float interest rate swap.

Information in relation to the derivatives used to hedge bonds and other loans within a fair value hedge relationship is shown in note 16.

119

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

16. TREASURY RISK MANAGEMENT

DERIVATIVES AND HEDGE ACCOUNTING
Derivatives are measured at fair value with any related transaction costs expensed as incurred. The treatment of changes in the value
of derivatives depends on their use as explained below.

(I) FAIR VALUE HEDGES(a)
Certain derivatives are held to hedge the risk of changes in value of a specific bond or other loan. In these situations, the Group
designates the liability and related derivative to be part of a fair value hedge relationship. The carrying value of the bond is adjusted by
the fair value of the risk being hedged, with changes going to the income statement. Gains and losses on the corresponding derivative
are also recognised in the income statement. The amounts recognised are offset in the income statement to the extent that the hedge
is effective. When the relationship no longer meets the criteria for hedge accounting, the fair value hedge adjustment made to the
bond is amortised to the income statement using the effective interest method.

(II) CASH FLOW HEDGES(a)
Derivatives are also held to hedge the uncertainty in timing or amount of future forecast cash flows. Such derivatives are classified as
being part of cash flow hedge relationships. For an effective hedge, gains and losses from changes in the fair value of derivatives are
recognised in equity. Any ineffective elements of the hedge are recognised in the income statement. If the hedged cash flow relates to
a non-financial asset, the amount accumulated in equity is subsequently included within the carrying value of that asset. For other
cash flow hedges, amounts deferred in equity are taken to the income statement at the same time as the related cash flow.

When a derivative no longer qualifies for hedge accounting, any cumulative gain or loss remains in equity until the related cash flow
occurs. When the cash flow takes place, the cumulative gain or loss is taken to the income statement. If the hedged cash flow is no
longer expected to occur, the cumulative gain or loss is taken to the income statement immediately.

(III) NET INVESTMENT HEDGES(a)
Certain derivatives are designated as hedges of the currency risk on the Group’s investment in foreign subsidiaries. The accounting
policy for these arrangements is set out in note 1.

(IV) DERIVATIVES FOR WHICH HEDGE ACCOUNTING IS NOT APPLIED
Derivatives not classified as hedges are held in order to hedge certain balance sheet items and commodity exposures. No hedge
accounting is applied to these derivatives, which are carried at fair value with changes being recognised in the income statement.

(a) Applying hedge accounting has not led to material ineffectiveness being recognised in the income statement for both 2014 and 2015.

The Group is exposed to the following risks that arise from its use of financial instruments, the management of which is described
in the following sections:
• liquidity risk (see note 16A);
• market risk (see note 16B); and
• credit risk (see note 17B).

16A. MANAGEMENT OF LIQUIDITY RISK
Liquidity risk is the risk that the Group will face in meeting its obligations associated with its financial liabilities. The Group’s approach
to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses.
In doing this, management considers both normal and stressed conditions. A material and sustained shortfall in our cash flow could
undermine the Group’s credit rating, impair investor confidence and also restrict the Group’s ability to raise funds.

The Group maintained a cautious funding strategy, with a positive cash balance throughout 2015. This was the result of cash delivery
from the business, coupled with the proceeds from bond issuances. This cash has been invested conservatively with low risk counter-
parties at maturities of less than six months.

Cash flow from operating activities provides the funds to service the financing of financial liabilities on a day-to-day basis.
The Group seeks to manage its liquidity requirements by maintaining access to global debt markets through short-term and
long-term debt programmes. In addition, Unilever has committed credit facilities for general corporate use.

On 31 December 2015 Unilever had undrawn revolving 364-day bilateral credit facilities in aggregate of US$6,550 million
(2014: US$6,550 million) with a 364-day term out. As part of the regular annual process the intention is that these facilities
will again be renewed in 2016.

120

Unilever Annual Report and Accounts 2015Financial statements16A. MANAGEMENT OF LIQUIDITY RISK CONTINUED
The following table shows Unilever’s contractually agreed undiscounted cash flows, including expected interest payments, which are
payable under financial liabilities at the balance sheet date:

€ million

Undiscounted cash flows

Notes

Due
within
1 year

Due
between
1 and
2 years

Due
between
2 and
3 years

Due
between
3 and
4 years

Due
between
4 and
5 years

Due
after
5 years

Total

€ million
Net
carrying
amount as
shown in
balance
sheet

2015
Non-derivative financial
liabilities:
Preference shares
Bank loans and overdrafts
Bonds and other loans
Finance lease creditors
Other financial liabilities
Trade payables excluding social
security and sundry taxes
Issued financial guarantees

Derivative financial liabilities:
Interest rate derivatives:

Derivative contracts – receipts
Derivative contracts –
payments

Foreign exchange derivatives:

Derivative contracts – receipts
Derivative contracts –
payments

Commodity derivatives:

Derivative contracts – receipts
Derivative contracts –
payments

(4)
(741)
(3,912)
(51)
(289)

(13,228)
(15)

(4)
(337)
(1,493)
(25)
–

(393)
–

(4)
–
(1,331)
(22)
–

–
–

(4)
–
(1,567)
(20)
–

–
–

(4)
–
(1,519)
(18)
–

–
–

(72)
–
(5,509)
(166)
(200)

(92)
(1,078)
(15,331)
(302)
(489)

(68)
(1,064)
(12,703)
(195)
(489)

–
–

(13,621)
(15)

(13,621)
–

(18,240)

(2,252)

(1,357)

(1,591)

(1,541)

(5,947)

(30,928)

(28,141)

(255)

198

5,686

(5,817)

–

(11)

(199)

(65)

(125)

124

–

(5)

(1)

–

(445)

382

5,686

(5,817)

–

(11)

(205)

(194)

Total

(18,439)

(2,257)

(1,358)

(1,591)

(1,541)

(5,947)

(31,133)

(28,334)

2014
Non-derivative financial
liabilities:
Preference shares
Bank loans and overdrafts
Bonds and other loans
Finance lease creditors
Other financial liabilities
Trade payables excluding social
security and sundry taxes
Issued financial guarantees

Derivative financial liabilities:
Interest rate derivatives:

Derivative contracts – receipts
Derivative contracts –
payments

Foreign exchange derivatives:

Derivative contracts – receipts
Derivative contracts –
payments

Commodity derivatives:

Derivative contracts – receipts
Derivative contracts –
payments

(4)
(601)
(4,758)
(25)
(230)

(12,051)
(11)

(4)
(257)
(647)
(48)
–

(378)
–

(4)
(272)
(1,289)
(23)
–

–
–

(4)
–
(511)
(19)
–

–
–

(4)
–
(1,418)
(18)
–

–
–

(72)
–
(4,513)
(172)
(188)

(92)
(1,130)
(13,136)
(305)
(418)

–
–

(12,429)
(11)

(68)
(1,114)
(10,573)
(199)
(418)

(12,429)
–

(17,680)

(1,334)

(1,588)

(534)

(1,440)

(4,945)

(27,521)

(24,801)

289

(429)

9,957

(10,284)

405

(421)

(483)

229

(255)

230

(277)

(2)

–

(26)

(47)

(19)

347

(304)

–

765

(980)

10,306

(10,590)

405

(421)

(515)

(514)

Total

(18,163)

(1,360)

(1,635)

(493)

(1,440)

(4,945)

(28,036)

(25,315)

121

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

16A. MANAGEMENT OF LIQUIDITY RISK CONTINUED
The following table shows cash flows for which cash flow hedge accounting is applied. The derivatives in the cash flow hedge relationships
are expected to have an impact on profit and loss in the same periods as the cash flows occur.

€ million

Due
within
1 year

2,884
(2,883)
(2)
(11)

1,506
(1,503)
(97)
(421)

Due
between
1 and 2
years

Due
between
2 and 3
years

Due
between
3 and 4
years

Due
between
4 and 5
years

Due
after
5 years

6
–
(1)
–

2
(2)
–
–

348
(300)
–
–

–
–
–
–

347
(304)
–
–

–
–
–
–

Total

3,238
(3,183)
(3)
(11)

1,855
(1,809)
(97)
(421)

€ million
Net
carrying
amount of
related
derivatives(b)

41
(1)
(5)

34
(100)
(15)

2015
Foreign exchange cash inflows(a)
Foreign exchange cash outflows(a)
Interest rate cash flows
Commodity contracts cash flows

2014
Foreign exchange cash inflows(a)
Foreign exchange cash outflows(a)
Interest rate cash flows
Commodity contracts cash flows

(a) Including cash flows related to cross currency swaps.
(b) See note 16C.

16B. MANAGEMENT OF MARKET RISK
Unilever’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:
• commodity price risk;
• currency risk; and
interest rate risk.
•

The above risks may affect the Group’s income and expenses, or the value of its financial instruments. The objective of the Group’s
management of market risk is to maintain this risk within acceptable parameters, while optimising returns. Generally, the Group applies
hedge accounting to manage the volatility in profit and loss arising from market risk.

The Group’s exposure to, and management of, these risks is explained below. It often includes derivative financial instruments,
the uses of which are described in note 16C.

POTENTIAL IMPACT OF RISK

MANAGEMENT POLICY AND
HEDGING STRATEGY

SENSITIVITY TO THE RISK

(I) COMMODITY PRICE RISK
The Group is exposed to the risk of
changes in commodity prices in relation
to its purchase of certain raw materials.

At 31 December 2015, the Group had hedged
its exposure to future commodity purchases
with commodity derivatives valued at
€221 million (2014: €197 million).

(II) CURRENCY RISK
Currency risk on sales, purchases
and borrowings
Because of Unilever’s global reach, it is
subject to the risk that changes in foreign
currency values impact the Group’s sales,
purchases and borrowings.

The Group uses commodity forward contracts
to hedge against this risk. All commodity
forward contracts hedge future purchases
of raw materials and the contracts are settled
either in cash or by physical delivery.

Commodity derivatives are generally
designated as hedging instruments in
cash flow hedge accounting relations.
All commodity forward contracts are done
in line with approvals from the Global
Commodity Executive which is chaired by the
Unilever Chief Supply Chain Officer (CSCO).

The Group manages currency exposures within
prescribed limits, mainly through the use of
forward foreign currency exchange contracts.

Operating companies manage foreign
exchange exposures within prescribed limits.
Local compliance is monitored centrally.

At 31 December 2015, the unhedged
exposure to the Group from companies
holding financial assets and liabilities other
than in their functional currency amounted to
€60 million (2014: €76 million).

Exchange risks related to the principal
amounts of the US$ and Swiss franc
denominated debt either form part of
hedging relationships themselves, or are
hedged through forward contracts.

The aim of the Group’s approach to
management of currency risk is to leave the
Group with no material residual risk. This
aim has been achieved in all years presented.

122

A 10% increase in commodity prices as
at 31 December 2015 would have led to
an €22 million gain on the commodity
derivatives in the cash flow hedge reserve
(2014: €18 million gain in the cash flow
hedge reserve). A decrease of 10% in
commodity prices on a full-year basis
would have the equal but opposite effect.

As an estimation of the approximate impact
of the residual risk, with respect to financial
instruments, the Group has calculated the
impact of a 10% change in exchange rates.

Impact on income statement
A 10% strengthening of the euro against key
currencies to which the Group is exposed
would have led to approximately an
additional €6 million gain in the income
statement (2014: €8 million gain). A 10%
weakening of the euro against these
currencies would have led to an equal but
opposite effect.

Unilever Annual Report and Accounts 2015Financial statements

16B. MANAGEMENT OF MARKET RISK CONTINUED

POTENTIAL IMPACT OF RISK

Currency risk on the Group’s net
investments
The Group is also subject to exchange risk
in relation to the translation of the net
investments of its foreign operations into
euros for inclusion in its consolidated
financial statements.

These net investments include Group
financial loans which are monetary items
that form part of our net investment in
foreign operations, of €8.2 billion (2014:
€7.0 billion), of which €4.1 billion (2014:
€4.0 billion) is denominated in GBP. In
accordance with IAS 21, the exchange
differences on these financial loans are
booked through reserves.

Part of the currency exposure on the
Group’s investments is also managed using
US$ net investment hedges with a nominal
value of €3.9 billion (2014 mostly US$
hedges €2.7 billion).

At 31 December 2015, the net exposure of
the net investments in foreign currencies
amounts to €11.3 billion (2014 €10.4 billion).

MANAGEMENT POLICY AND
HEDGING STRATEGY

Unilever aims to minimise this foreign
investment exchange exposure by
borrowing in local currency in the operating
companies themselves. In some locations,
however, the Group’s ability to do this is
inhibited by local regulations, lack of local
liquidity or by local market conditions.

Where the residual risk from these
countries exceeds prescribed limits,
Treasury may decide on a case-by-case
basis to actively hedge the exposure. This is
done either through additional borrowings
in the related currency, or through the use
of forward foreign exchange contracts.

Where local currency borrowings, or
forward contracts, are used to hedge the
currency risk in relation to the Group’s net
investment in foreign subsidiaries, these
relationships are designated as net
investment hedges for accounting purposes.

(III) INTEREST RATE RISK(a)
The Group is exposed to market interest rate
fluctuations on its 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. The
Group’s ability to manage interest costs also
has an impact on reported results.

Taking into account the impact of interest
rate swaps, at 31 December 2015, interest
rates were fixed on approximately 70% of
the expected net debt for 2016, and 61%
for 2017 (70% for 2015 and 67% for 2016
at 31 December 2014).

For interest management purposes,
transactions with a maturity shorter than
six months from inception date are not
included as fixed interest transactions.

The average interest rate on short-term
borrowings in 2015 was 0.9% (2014: 1.2%).

Unilever’s interest rate management
approach aims for an optimal balance
between fixed and floating-rate interest
rate exposures on expected net debt. The
objective of this approach is to minimise
annual interest costs after tax and to
reduce volatility.

This is achieved either by issuing fixed or
floating-rate long-term debt, or by
modifying interest rate exposure through
the use of interest rate swaps.

Furthermore, Unilever has interest rate
swaps for which cash flow hedge
accounting is applied.

(a) See the split in fixed and floating-rate interest in the following table.

SENSITIVITY TO THE RISK

Impact on equity – trade related cash flow
hedges reserves
A 10% strengthening of the euro against
other currencies would have led to a
€22 million loss (of which €40 million loss
would relate to strengthening against
sterling) on hedges used to cover future
trade cash flows to which cash flow hedge
accounting is applied. A 10% weakening of the
euro against other currencies would have led
to a €24 million gain (out of which €44 million
gain would relate to strengthening against
sterling) on hedges used to cover future
trade cash flows to which cash flow hedge
accounting is applied.

Impact on equity – net investment hedges
A 10% strengthening of the euro against other
currencies would have led to a €352 million
(2014: €283 million) loss on the net investment
hedges used to manage the currency
exposure on the Group’s investments.
A 10% weakening of the euro against other
currencies would have led to a €430 million
(2014: €311 million) gain on the net investment
hedges used to manage the currency
exposure on the Group’s investments.

Impact on equity – net investments in
group companies
A 10% strengthening of the euro against
all other currencies would have led to a
€675 million negative retranslation effect
(2014: €697 million negative retranslation
effect). A 10% weakening of the euro against
those currencies would have led to a
€825 million positive retranslation effect
(2014: €852 million positive retranslation
effect). In line with accepted hedge
accounting treatment and our accounting
policy for financial loans, the retranslation
differences would be recognised in equity.

Assuming that all other variables remain
constant, a 1.0 percentage point increase
in floating interest rates on a full-year basis
as at 31 December 2015 would have led to
an additional €21 million of finance costs
(2014: €26 million additional finance costs).
A 1.0 percentage point decrease in floating
interest rates on a full-year basis would
have an equal but opposite effect.

Assuming that all other variables remain
constant, a 1.0 percentage point increase in
floating interest rates on a full-year basis as
at 31 December 2015 would have led to an
additional €1 million credit in equity from
derivatives in cash flow hedge relationships
(2014: €39 million credit). A 1.0 percentage
point decrease in floating interest rates
on a full-year basis would have led to an
additional €1 million debit in equity from
derivatives in cash flow hedge relationships
(2014: €42 million debit).

123

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

16B. MANAGEMENT OF MARKET RISK CONTINUED
The following table shows the split in fixed and floating-rate interest exposures, taking into account the impact of interest rate swaps and
cross-currency swaps:

Cash and cash equivalents
Current other financial assets
Current financial liabilities
Non-current financial liabilities

Net debt
Of which:

Fixed rate (weighted average amount of fixing for the following year)

€ million
2015

€ million
2014

2,302
836
(4,789)
(9,854)

2,151
671
(5,536)
(7,186)

(11,505)

(9,900)

(9,429)

(7,297)

16C. DERIVATIVES AND HEDGING
The Group does not use derivative financial instruments for speculative purposes. The uses of derivatives and the related values of
derivatives are summarised in the following table. Derivatives used to hedge:

31 December 2015
Foreign exchange derivatives including cross currency swaps

Fair value hedges
Cash flow hedges
Hedges of net investments in foreign operations
Hedge accounting not applied

Interest rate swaps
Fair value hedges
Cash flow hedges
Hedge accounting not applied

Commodity contracts
Cash flow hedges
Hedge accounting not applied

31 December 2014
Foreign exchange derivatives including Cross Currency swaps

Fair value hedges
Cash flow hedges
Hedges of net investments in foreign operations
Hedge accounting not applied

Interest rate swaps
Fair value hedges
Cash flow hedges
Hedge accounting not applied

Commodity contracts
Cash flow hedges
Hedge accounting not applied

€ million

Trade
and other
receivables

Financial
assets

€ million
Trade
payables
and other
liabilities

€ million

Current
financial
liabilities

€ million
Non-
current
financial
liabilities

–
29
–
39

–
–
–

5
–

Total assets

6
9
–
106

–
–
–

–
–

1
45
155(a)
25(a)

–
–
4

–
–

230

303

–
28
356(a)
(88)(a)

–
–
–

–
–

121

Total assets

296

417

–
(34)
–
(26)

–
–
–

(10)
–

(70)

–
–
–
(118)

–
–
–

–
–

(118)

–
–
–
(5)

–
(1)
–

–
–

(6)

Total liabilities

(194)

(1)
(3)
–
(44)

–
(100)
–

(15)
(1)

(164)

Total liabilities

–
–
(23)
(254)

–
–
–

–
–

(277)

–
–
–
(71)

(2)
–
–

–
–

(73)

(514)

€ million

Total

1
40
155
(85)

–
(1)
4

(5)
–

109

5
34
333
(351)

(2)
(100)
–

(15)
(1)

(97)

(a) Swaps that hedge the currency risk on intra-group loans and offset €155 million within ‘Hedges of net investments in foreign operations’ are included within

‘Hedge Accounting not applied’.

124

Unilever Annual Report and Accounts 2015Financial statements

16C. DERIVATIVES AND HEDGING CONTINUED

MASTER NETTING OR SIMILAR AGREEMENTS
A number of legal entities within our Group enter into derivative transactions under International Swap and Derivatives Association
(ISDA) master netting agreements. In general, under such agreements the amounts owed by each counter-party on a single day in
respect of all transactions outstanding in the same currency are aggregated into a single net amount that is payable by one party to the
other. In certain circumstances such as when a credit event such as a default occurs, all outstanding transactions under the agreement
are terminated, the termination value is assessed and only a single net amount is payable in settlement of all transactions.

The ISDA agreements do not meet the criteria for offsetting the positive and negative values in the consolidated balance sheet.

This is because the Group does not have any currently legally enforceable right to offset recognised amounts, between various Group and
bank affiliates, because the right to offset is enforceable only on the occurrence of future credit events such as a default.

The column ‘Related amounts not set off in the balance sheet – Financial instruments’ shows the netting impact of our ISDA agreements,
assuming the agreements are respected in the relevant jurisdiction.

(A) FINANCIAL ASSETS
The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements.

€ million

Gross amounts of
recognised
financial assets

€ million
Gross amounts of
recognised
financial liabilities
set off in the
balance sheet

Related amounts not set off
in the balance sheet

€ million

Net amounts of
financial assets
presented in the
balance sheet

Financial
instruments

Cash collateral
received

Net amount

458

773

(155)

303

(153)

(356)

417

(246)

(30)

(24)

120

147

As at 31 December 2015

Derivative financial assets

As at 31 December 2014

Derivative financial assets

(B) FINANCIAL LIABILITIES
The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements.

€ million

Gross amounts of
recognised
financial
liabilities

€ million
Gross amounts of
recognised
financial liabilities
set off in the
balance sheet

€ million
Net amounts of
financial
liabilities
presented in the
balance sheet

Related amounts not set off
in the balance sheet

€ million

Financial
instruments

Cash collateral
pledged

Net amount

As at 31 December 2015

Derivative financial liabilities

349

(155)

194

(153)

As at 31 December 2014

Derivative financial liabilities

870

(356)

514

(246)

–

268

17. INVESTMENT AND RETURN

CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the balance sheet include deposits, investments in money market funds and highly liquid investments.
To be classified as cash and cash equivalents, an asset must:
• be readily convertible into cash;
• have an insignificant risk of changes in value; and
• have a maturity period of three months or less at acquisition.

Cash and cash equivalents in the cash flow statement also include bank overdrafts and are recorded at amortised cost.

OTHER FINANCIAL ASSETS
Other financial assets are first recognised on the trade date. At that point, they are classified as:
• held-to-maturity investments;
• loans and receivables;
• available-for-sale financial assets; or
• financial assets at fair value through profit or loss.

125

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

17. INVESTMENT AND RETURN CONTINUED

(I) HELD-TO-MATURITY INVESTMENTS
These are assets with set cash flows and fixed maturities which Unilever intends to hold to maturity. They are held at cost plus
interest using the effective interest method, less any impairment.

(II) LOANS AND RECEIVABLES
These are assets with an established payment profile and which are not listed on a recognised stock exchange. They are initially
recognised at fair value, which is usually the original invoice amount plus any directly related transaction costs. Afterwards, loans and
receivables are carried at amortised cost, less any impairment.

(III) AVAILABLE-FOR-SALE FINANCIAL ASSETS
Any financial assets not classified as either loans and receivables or financial assets at fair value through profit or loss are designated
as available-for-sale. They are initially recognised at fair value, usually the original invoice amount plus any directly related
transaction costs. Afterwards, they are measured at fair value with changes being recognised in equity. When the investment is sold
or impaired, the accumulated gains and losses are moved from equity to the income statement. Interest and dividends from these
assets are recognised in the income statement.

(IV) FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
These are derivatives and assets that are held for trading. Related transaction costs are expensed as incurred. Unless they
form part of a hedging relationship, these assets are held at fair value, with changes being recognised in the income statement.

IMPAIRMENT OF FINANCIAL ASSETS
Each year, the Group assesses whether there is evidence that financial assets are impaired. A significant or prolonged fall in value
below the cost of an asset generally indicates that an asset may be impaired. If impaired, financial assets are written down to their
estimated recoverable amount. Impairment losses on assets classified as loans and receivables are recognised in profit and loss.
When a later event causes the impairment losses to decrease, the reduction in impairment loss is also recognised in profit and loss.
Impairment losses on assets classified as available-for-sale are recognised by moving the loss accumulated in equity to the income
statement. Any subsequent recovery in value of an available-for-sale debt security is recognised within profit and loss. However,
any subsequent recovery in value of an equity security is recognised within equity, and is recorded at amortised cost.

17A. FINANCIAL ASSETS
The Group’s treasury function aims to protect the Group’s financial investments, while maximising returns. The fair value of financial
assets is the same as the carrying amount for 2015 and 2014. The Group’s cash resources and other financial assets are shown below.

Financial assets(a)

Cash and cash equivalents
Cash at bank and in hand
Short-term deposits with maturity of less than three months
Other cash equivalents

Other financial assets

Held-to-maturity investments
Loans and receivables(b)
Available-for-sale financial assets(c)
Financial assets at fair value through profit or loss:

Derivatives
Other

€ million

Current
2015

€ million
Non-
current
2015

€ million

Total
2015

Current
2014

€ million
Non-
current
2014

€ million

Total
2014

1,547
655
100

2,302

38
269
179

230
120

836

–
–
–

–

106
34
462

–
3

1,547
655
100

2,302

144
303
641

230
123

605

1,441

1,390
540
221

2,151

17
180
157

296
21

671

–
–
–

–

72
28
514

–
101

715

1,390
540
221

2,151

89
208
671

296
122

1,386

Total

3,138

605

3,743

2,822

715

3,537

(a) For the purposes of notes 15C and 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities

which are covered in notes 13 and 14 respectively.

(b) Current loans and receivables include short-term deposits with banks with maturities of longer than three months.
(c) Current available-for-sale financial assets include government securities and A- or higher rated money and capital market instruments. Non-current

available-for-sale financial assets predominantly consist of investments in a number of companies and financial institutions in Europe, India and the US,
including €86 million (2014: €86 million) of assets in a trust to fund benefit obligations in the US (see also note 4B).

126

Unilever Annual Report and Accounts 2015Financial statements17A. FINANCIAL ASSETS CONTINUED

Cash and cash equivalents reconciliation to the cash flow statement

Cash and cash equivalents per balance sheet
Less: bank overdrafts

Cash and cash equivalents per cash flow statement

€ million
2015

€ million
2014

2,302
(174)

2,128

2,151
(241)

1,910

Approximately €1.8 billion (or 79%) of the Group’s cash and cash equivalents are held in foreign subsidiaries which repatriate distributable
reserves on a regular basis. For most countries this is done through dividends free of tax. In a few countries we face cross-border foreign
exchange controls and/or other legal restrictions that inhibit our ability to make these balances available in any means for general use by
the wider business. The amount of cash held in these countries was €284 million (2014: €452 million). The cash will generally be invested
or held in the relevant country and, given the other capital resources available to the Group, does not significantly affect the ability of the
Group to meet its cash obligations.

17B. CREDIT RISK
Credit risk is the risk of financial loss to the Group if a customer or counter-party fails to meet its contractual obligations. Additional
information in relation to credit risk on trade receivables is given in note 13. These risks are generally managed by local controllers.
Credit risk related to the use of treasury instruments is managed on a Group basis. This risk arises from transactions with financial
institutions involving cash and cash equivalents, deposits and derivative financial instruments. The maximum exposure to credit risk
at the reporting date is the carrying value of each class of financial assets. To reduce this risk, Unilever has concentrated its main
activities with a limited number of counter-parties which have secure credit ratings. Individual risk limits are set for each counter-party
based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the
Group’s treasury department. Netting agreements are also put in place with Unilever’s principal counter-parties. In the case of
a default, these arrangements would allow Unilever to net assets and liabilities across transactions with that counter-party. To further
reduce the Group’s credit exposures on derivative financial instruments, Unilever has collateral agreements with Unilever’s principal
counter-parties in relation to derivative financial instruments. Under these arrangements, counter-parties are required to deposit
securities and/or cash as a collateral for their obligations in respect of derivative financial instruments. At 31 December 2015 the
collateral held by Unilever under such arrangements amounted to €30 million (2014: €24 million), of which €30 million (2014: €24 million)
was in cash, and €nil (2014: €nil) was in the form of bond securities. The non-cash collateral has not been recognised as an asset in the
Group’s balance sheet.

Further details in relation to the Group’s exposure to credit risk are shown in note 13 and note 16A.

18. FINANCIAL INSTRUMENTS FAIR VALUE RISK
The Group is exposed to the risks of changes in fair value of its financial assets and liabilities. The following table summarises the fair
values and carrying amounts of financial instruments.

Fair values of financial assets and financial liabilities

Financial assets
Cash and cash equivalents
Held-to-maturity investments
Loans and receivables
Available-for-sale financial assets
Financial assets at fair value through profit or loss:

Derivatives
Other

Financial liabilities
Preference shares
Bank loans and overdrafts
Bonds and other loans
Finance lease creditors
Derivatives
Other financial liabilities

€ million
Fair value
2015

€ million
Fair value
2014

€ million
Carrying
amount
2015

€ million
Carrying
amount
2014

2,302
144
303
641

230
123

2,151
89
208
671

296
122

2,302
144
303
641

230
123

2,151
89
208
671

296
122

3,743

3,537

3,743

3,537

(132)
(1,067)
(13,509)
(217)
(124)
(489)

(108)
(1,119)
(11,417)
(224)
(350)
(418)

(68)
(1,064)
(12,703)
(195)
(124)
(489)

(68)
(1,114)
(10,573)
(199)
(350)
(418)

(15,538)

(13,636)

(14,643)

(12,722)

127

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

18. FINANCIAL INSTRUMENTS FAIR VALUE RISK CONTINUED
The fair value of trade receivables and payables is considered to be equal to the carrying amount of these items due to their short-term
nature. The instruments that have a fair value that is different from the carrying amount are classified as Level 2 for both 2014 and 2015
with exception of preference shares which are classified as Level 1 for both years.

FAIR VALUE HIERARCHY
The fair values shown in notes 15C and 17A have been classified into three categories depending on the inputs used in the valuation
technique. The categories used are as follows:
• Level 1: quoted prices for identical instruments;
• Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and
• Level 3: inputs which are not based on observable market data.

For assets and liabilities which are carried at fair value, the classification of fair value calculations by category is summarised below:

€ million

Notes

Level 1
2015

Level 1
2014

Level 2
2015

Level 2
2014

Level 3
2015

Level 3
2014

€ million
Total fair
value
2015

€ million
Total fair
value
2014

Assets at fair value
Other cash equivalents
Available-for-sale financial assets
Financial assets at fair value
through profit or loss:

Derivatives(a)
Other

Liabilities at fair value
Derivatives(b)

17A
17A

16C
17A

16C

–
14

–
120

–

–
15

–
119

100
180

303
–

221
158

417
–

–

(194)

(514)

–
447

–
498

–
3

–

–
3

–

100
641

303
123

221
671

417
122

(194)

(514)

(a) Includes €73 million (2014: €121 million) derivatives, reported within trade receivables, that hedge trading activities.
(b) Includes €71 million (2014: €(164) million) derivatives, reported within trade payables, that hedge trading activities.

There were no significant changes in classification of fair value of financial assets and financial liabilities since 31 December 2014.
There were also no significant movements between the fair value hierarchy classifications since 31 December 2014.

The impact in the 2015 income statement due to Level 3 instruments is a loss of €46 million (2014: loss of €3 million).

Reconciliation of Level 3 fair value measurements of financial assets is given below:

Reconciliation of movements in Level 3 valuations

1 January
Gains and losses recognised in profit and loss
Gains and losses recognised in other comprehensive income
Purchases and new issues
Sales and settlements
Transfers into Level 3
Transfers out of Level 3

31 December

€ million
2015

€ million
2014

501
(46)
120
13
(138)
–
–

450

483
(3)
17
4
–
–
–

501

SIGNIFICANT UNOBSERVABLE INPUTS USED IN LEVEL 3 FAIR VALUES
The only individually material asset valued using Level 3 techniques is a particular unlisted investment with a carrying value at year end
of €62 million (2014: €189 million, 2013: €190 million), which is recognised as an available for sale financial asset. During the year part
of this asset was settled for €128 million and an additional impairment of €42 million has been recognised within ‘Other income/(loss)
from non-current investments and associates’ in the consolidated income statement. The ‘Gains and losses recognised in other
comprehensive income’ include €51 million relating to the value of the Unilever Venture companies and €40 million positive currency
retranslation (mainly relating to the assets held in the US). A change in one or more of the inputs to reasonably possible alternative
assumptions would not change the value significantly.

CALCULATION OF FAIR VALUES
The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate
the fair values are consistent with those used in the year ended 31 December 2014.

ASSETS AND LIABILITIES CARRIED AT FAIR VALUE
• The fair values of quoted investments falling into Level 1 are based on current bid prices.
• The fair values of unquoted available-for-sale financial assets are based on recent trades in liquid markets, observable market

rates, discounted cash flow analysis and statistical modelling techniques such as Monte Carlo simulation. If all significant inputs
required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the significant inputs
is not based on observable market data, the instrument is included in Level 3.

128

Unilever Annual Report and Accounts 2015Financial statements18. FINANCIAL INSTRUMENTS FAIR VALUE RISK CONTINUED
• Derivatives are valued using valuation techniques with market observable inputs. The models incorporate various inputs including
the credit quality of counter-parties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the
underlying commodities.

• For listed securities where the market is not liquid, and for unlisted securities, valuation techniques are used. These include the use of
recent arm’s length transactions, reference to other instruments that are substantially the same and discounted cash flow calculations.

OTHER FINANCIAL ASSETS AND LIABILITIES (FAIR VALUES FOR DISCLOSURE PURPOSES ONLY)
• Cash and cash equivalents, trade and other current receivables, bank loans and overdrafts, trade payables and other current

liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

• The fair values of preference shares and listed bonds are based on their market value.
• Non-listed bonds, other loans, bank loans and non-current receivables and payables are based on the net present value of the

anticipated future cash flows associated with these instruments using rates currently available for debt on similar terms, credit risk
and remaining maturities.

• Fair values for finance lease creditors have been assessed by reference to current market rates for comparable leasing arrangements.

POLICIES AND PROCESSES USED IN RELATION TO THE CALCULATION OF LEVEL 3 FAIR VALUES
Assets valued using Level 3 valuation techniques are primarily made up of long-term cash receivables and unlisted investments.
Valuation techniques used are specific to the circumstances involved. Unlisted investments include €192 million (2014: €136 million)
of investments within Unilever Ventures companies.

19. PROVISIONS

Provisions are recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event,
where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable.

Provisions

Due within one year
Due after one year

Total provisions

€ million

Movements during 2015

Restructuring

1 January 2015
Income statement:

Charges
Releases

Utilisation
Currency translation

31 December 2015

215

143
(42)
(133)
5

188

Legal

228

145
(15)
(193)
(4)

161

€ million
2015

€ million
2014

309
831

418
916

1,140

1,334

€ million

Other

Total

185

1,334

83
(16)
(35)
4

520
(140)
(400)
(174)

221

1,140

€ million
Disputed
indirect taxes

706

149
(67)
(39)
(179)

570

The provision for legal includes provisions related to competition cases (see also note 20).

The provision for disputed indirect taxes is comprised of a number of small disputed items. The largest elements relate to disputes
with Brazilian authorities. Due to the nature of the disputes, the timing of provision utilisation and any cash outflows is uncertain.
The majority of disputed items attract an interest charge.

No individual items within the remaining provisions are significant. Unilever expects that the issues relating to these restructuring,
legal and other provisions will be substantively resolved within five years.

129

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

20. COMMITMENTS AND CONTINGENT LIABILITIES

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership.
All other leases are classified as operating leases.

Assets held under finance leases are initially recognised at the lower of fair value at the date of commencement of the lease and the
present value of the minimum lease payments. Subsequent to initial recognition, these assets are accounted for in accordance with
the accounting policy relating to that specific asset. The corresponding liability is included in the balance sheet as a finance lease
obligation. Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation
so as to achieve a constant rate of interest on the remaining balance of the liability.

Lease payments under operating leases are charged to the income statement on a straight-line basis over the term of the lease.

Contingent liabilities are either possible obligations that will probably not require a transfer of economic benefits, or present
obligations that may, but probably will not, require a transfer of economic benefits. It is not appropriate to make provisions for
contingent liabilities, but there is a chance that they will result in an obligation in the future. Contingent liabilities are disclosed at the
risk adjusted best estimate of the amount that would be required to settle the liability as at the end of the reporting period. Where a
risk weighting is not available, the maximum exposure is reported.

Long-term finance lease commitments

Buildings(a)
Plant and machinery

The commitments fall due as follows:

Within 1 year
Later than 1 year but not later than 5 years
Later than 5 years

(a) All leased land is classified as operating leases.

€ million
Future
minimum
lease
payments
2015

€ million

Finance
cost
2015

Present
value
2015

€ million
Future
minimum
lease
payments
2014

€ million

Finance
cost
2014

Present
value
2014

284
18

302

51
85
166

302

105
2

107

14
37
56

107

179
16

195

37
48
110

195

283
22

305

25
108
172

305

102
4

106

12
36
58

106

181
18

199

13
72
114

199

The table below shows the net book value of property, plant and equipment under a number of finance lease agreements.

Net book value

Cost
Accumulated depreciation

31 December 2015

Cost
Accumulated depreciation

31 December 2014

€ million

Buildings

€ million
Plant and
equipment

239
(82)

157

218
(69)

149

154
(133)

148
(124)

€ million

Total

393
(215)

178

366
(193)

173

The Group has sublet part of the leased properties under finance leases. Future minimum sublease payments of €41 million
(2014: €38 million) are expected to be received.

Long-term operating lease commitments

Land and buildings
Plant and machinery

€ million
2015

€ million
2014

2,024
430

2,454

1,903
424

2,327

130

Unilever Annual Report and Accounts 2015Financial statements

20. COMMITMENTS AND CONTINGENT LIABILITIES CONTINUED

Operating lease and other commitments fall due as follows:

Within 1 year
Later than 1 year but not later than 5 years
Later than 5 years

€ million

Operating
leases
2015

Operating
leases
2014

410
1,187
857

2,454

390
1,171
766

2,327

€ million
Other
commit-
ments
2015

919
830
35

1,784

€ million
Other
commit-
ments
2014

1,034
950
41

2,025

The Group has sublet part of the leased properties under operating leases. Future minimum sublease payments of €5 million
(2014: €7 million) are expected to be received.

Other commitments principally comprise commitments under contracts to purchase materials and services. They do not include
commitments for capital expenditure, which are reported in note 10 on page 111.

Contingent liabilities arise in respect of litigation against group companies, investigations by competition, regulatory and fiscal
authorities and obligations arising under environmental legislation. The estimated total of such contingent liabilities at
31 December 2015 was €1,310 million (2014: €1,406 million), the largest of which relates to the local corporate reorganisation in 2001
explained further below. The Group does not believe that any of these contingent liabilities will result in a material loss.

LEGAL PROCEEDINGS
The Group is involved from time to time in legal and arbitration proceedings arising in the ordinary course of business.

As previously disclosed, along with other consumer products companies and retail customers, Unilever is involved in a number of ongoing
investigations by national competition authorities. These proceedings and investigations are at various stages and concern a variety of
product markets. In the second half of 2015 Unilever recognised an expense of €86 million (2014: €30 million, 2013: €120 million) related to
these cases, disclosed within non-core items.

Ongoing compliance with competition laws is of key importance to Unilever. It is Unilever’s policy to co-operate fully with competition
authorities whenever questions or issues arise. In addition, the Group continues to reinforce and enhance our internal competition law
compliance programme on an ongoing basis. As disclosed above, where specific issues arise provisions are made and contingent
liabilities disclosed to the extent appropriate.

During 2004 in Brazil, and in common with many other businesses operating in that country, one of our Brazilian subsidiaries received a
notice of infringement from the Federal Revenue Service. The notice alleges that a 2001 reorganisation of our local corporate structure
was undertaken without valid business purpose. The 2001 reorganisation was comparable with restructurings done by many companies
in Brazil. The original dispute was resolved in the courts in the Group’s favour. However, in 2013 a new assessment was raised in respect
of a similar matter. Additionally, during the course of 2014 another notice of infringement was issued based on the same ground argued
in the previous assessments. The Group believes that the likelihood of a successful challenge by the tax authorities is low, however, there
can be no guarantee of success in court. The maximum exposure related to this matter is €1,134 million (2014: €1,250 million).

In many markets, there is a high degree of complexity involved in the local tax regimes. In common with other businesses operating in this
environment, the Group is required to exercise judgement in the assessment of any potential exposures in these areas. Where appropriate,
the Group will make provisions or disclose contingencies in accordance with the relevant accounting principles.

21. ACQUISITIONS AND DISPOSALS

Business combinations are accounted for using the acquisition accounting method as at the acquisition date, which is the date at
which control is transferred to the Group.

Goodwill is measured at the acquisition date as the fair value of consideration transferred, plus non-controlling interests and the fair
value of any previously held equity interests less the net recognised amount (which is generally fair value) of the identifiable assets
and liabilities assumed. Consideration transferred does not include amounts related to settlement of pre-existing relationships. Such
amounts are generally recognised in net profit.

Transaction costs are expensed as incurred, other than those incurred in relation to the issue of debt or equity securities. Any contingent
consideration payable is measured at fair value at the acquisition date. Subsequent changes in the fair value of contingent
consideration are recognised in net profit.

Changes in ownership that do not result in a change of control are accounted for as equity transactions and therefore do not have any
impact on goodwill. The difference between consideration and the non-controlling share of net assets acquired is recognised within equity.

131

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

21. ACQUISITIONS AND DISPOSALS CONTINUED
In 2015 the Group completed acquisition of the businesses listed below for a total consideration of €2,011 million (2014: €424 million for
acquisitions completed during that year). More information related to the 2015 acquisitions is given on page 33 of the Strategic Report.

2015

DEAL COMPLETION DATE

ACQUIRED BUSINESS

1 May 2015

REN Skincare, a prestige Personal Care business with an iconic British skin care brand.

1 May 2015

6 May 2015

1 August 2015

Camay and Zest brands acquired from The Procter & Gamble Company. In addition a manufacturing
site was acquired.

Kate Somerville Skincare, a prestige Personal Care business with a leading independent
skin care brand.

Dermalogica, a prestige Personal Care business with the leading skin care brand in professional
salons and spas. The assets acquired are principally the Dermalogica brand.

1 September 2015

Murad, the leading clinical skin care brand, part of our prestige Personal Care business.

30 September 2015

Grom, a premium Italian gelato business.

CONSOLIDATED INCOME STATEMENT
Since the acquisition dates the acquisitions above have contributed €216 million to the Group revenue and €32 million to Group
operating profit.

If all the above acquisitions had taken place at the beginning of the year, Group revenue would have been €53,612 million and Group
operating profit would have been €7,551 million.

2014

DEAL COMPLETION DATE

ACQUIRED/DISPOSED BUSINESS

17 January 2014

Sold the Royal Pasta brand in the Philippines to RFM Corporation.

7 March 2014

Acquired a 55% equity stake in the Qinyuan Group, a leading Chinese water purification business.

1 April 2014

30 June 2014

10 July 2014

Sold the meat snacks business, including the Bifi and Peperami brands, to Jack Link’s.

Sold the global Ragu and Bertolli pasta sauce business to Mizkan Group.

Sold the Slim.Fast brand to Kainos Capital. Unilever retains a minority stake in the business.

2 December 2014

Acquired Talenti Gelato & Sorbetto.

132

Unilever Annual Report and Accounts 2015Financial statements
21. ACQUISITIONS AND DISPOSALS CONTINUED

CONSOLIDATED BALANCE SHEET
The following table sets out the effect of the acquisitions in 2015, 2014 and 2013 on the consolidated balance sheet. The fair values
currently established for all acquisitions made in 2015 are provisional. The goodwill arising on these transactions has been capitalised
and is subject to an annual review for impairment (or more frequently if necessary) in accordance with our accounting policies as set out
in note 9 on page 109. Any impairment is charged to the income statement as it arises. Detailed information relating to goodwill is given in
note 9 on pages 110 to 111.

Acquisitions

Net assets acquired
Goodwill arising in subsidiaries

Consideration

In 2015 the net assets acquired consist of:

Intangible assets
Other non-current assets
Trade and other receivables
Other current assets
Non-current liabilities
Current liabilities

Net assets acquired

Consideration
Contingent consideration

Total consideration

Goodwill

€ million
2015

€ million
2014

€ million
2013

999
1,012

2,011

240
184

424

55
62

117

€ million
2015

954
67
46
44
(30)
(82)

999

1,832
179

2,011

1,012

No contingent liabilities were acquired.

The table below shows the impact of all disposals during the year on the Group. The results of disposed businesses are included in the
consolidated financial statements up to their date of disposal:

Disposals

Goodwill and intangible assets
Other non-current assets
Current assets
Trade creditors and other payables

Net assets sold
(Gain)/loss on currency retranslation on disposal
Profit/(loss) on sale attributable to Unilever

Consideration

Cash
Cash balances of business sold
Non-cash items and deferred consideration

€ million
2015

€ million
2014

€ million
2013

47
2
23
(2)

70
–
(9)

62
(1)
–

229
106
50
(5)

380
(76)
1,392

1,696

1,727
(4)
(27)

1,696

189
43
59
(8)

283
–
733

1,016

1,030
–
(14)

1,016

133

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

22. ASSETS AND LIABILITIES HELD FOR SALE

Non-current assets and groups of assets and liabilities which comprise disposal groups are classified as ‘held for sale’ when all of
the following criteria are met: a decision has been made to sell; the assets are available for sale immediately; the assets are being
actively marketed; and a sale has been agreed or is expected to be concluded within 12 months of the balance sheet date.

Immediately prior to classification as held for sale, the assets or groups of assets are remeasured in accordance with the Group’s
accounting policies. Subsequently, assets and disposal groups classified as held for sale are valued at the lower of book value or
fair value less disposal costs. Assets held for sale are not depreciated.

Groups of assets held for sale
Goodwill and intangibles
Property, plant and equipment
Inventories
Trade and other receivables
Other

Non-current assets held for sale

Property, plant and equipment

Liabilities held for sale

Liabilities associated with assets held for sale

23. RELATED PARTY TRANSACTIONS

€ million
2015

€ million
2014

43
73
35
3
5

159

12
4
1
1
5

A related party is a person or entity that is related to the Group. These include both people and entities that have, or are subject to, the
influence or control of the Group.

The following related party balances existed with associate or joint venture businesses at 31 December:

Related party balances

Trading and other balances due from joint ventures
Trading and other balances due from/(to) associates

€ million
2015

€ million
2014

116
–

105
–

JOINT VENTURES
Sales by Unilever group companies to Unilever Jerónimo Martins and Pepsi Lipton joint ventures were €121 million and €69 million
in 2015 (2014: €106 million and €51 million) respectively. Sales from Unilever Jerónimo Martins and from Pepsi Lipton joint ventures
to Unilever group companies were €46 million and €51 million in 2015 (2014: €46 million and €54 million) respectively. Balances
owed by/(to) Unilever Jerónimo Martins and Pepsi Lipton joint ventures at 31 December 2015 were €121 million and €(5) million
(2014: €112 million and €(6) million) respectively.

ASSOCIATES
Langholm Capital Partners invests in private European companies with above-average longer-term growth prospects.
Langholm Capital II was launched in 2009. Unilever has invested €55 million in Langholm II, with an outstanding commitment
at the end of 2015 of €20 million (2014: €40 million).

134

Unilever Annual Report and Accounts 2015Financial statements

24. PURCHASE OF ESTATE SHARES CONVERTIBLE TO UNILEVER PLC SHARES IN 2038
The first Viscount Leverhulme was the founder of the company which became Unilever PLC. When he died in 1925, he left in his will
a large number of PLC shares in various trusts. When the will trusts were varied in 1983, the interests of the beneficiaries of his will were
also preserved. Four classes of special shares were created in Margarine Union (1930) Limited, a subsidiary of PLC.

One of these classes of shares (‘Estate shares’) has rights that enable it to be converted at the end of the year 2038 to 70,875,000 Unilever
PLC ordinary shares. Before this date, these shares have no rights to dividends nor do they allow early conversion. There are 20,000
Estate shares with a nominal value of £0.01 each.

On 19 May 2014, Unilever PLC purchased all of the Estate shares for a cash consideration of £715 million plus transaction costs. The
resulting loss of €880 million, being the difference between the nominal value and the amount paid, was recorded in retained earnings.
Unilever does not intend to re-sell these shares.

25. REMUNERATION OF AUDITORS

This note includes all amounts paid to the Group’s auditors, whether in relation to their audit of the Group or otherwise.

Following a competitive tender process KPMG LLP and KPMG Accountants N.V. (together referred to as ‘KPMG’) were appointed as the
Group’s auditor for the year ended 31 December 2014 at the Annual General Meetings on 14 May 2014. PricewaterhouseCoopers LLP and
PricewaterhouseCoopers Accountants N.V. (together referred to as ‘PricewaterhouseCoopers’) served as Group auditor for the year
ended 31 December 2013. Remuneration of the Group’s auditor in respect of 2015 and 2014 was payable to KPMG while in respect of 2013
remuneration was payable to PricewaterhouseCoopers.

During the year the Group (including its subsidiaries) obtained the following services from the Group auditor and its associates:

Fees payable to the Group’s auditor for the audit of the consolidated and parent
company accounts of Unilever N.V. and Unilever PLC(a)
Fees payable to the Group’s auditor for the audit of accounts of subsidiaries of
Unilever N.V. and Unilever PLC pursuant to legislation(b)

Total statutory audit fees(c)

Audit-related assurance services
Other taxation advisory services
Services relating to corporate finance transactions
Other assurance services
All other non-audit services

€ million
2015

€ million
2014

€ million
2013

–(d)
–(d)
–
–(d)
–(d)

3
1
–
–
1

(a) Of which:
€1 million was payable to KPMG Accountants N.V. (KPMG Accountants N.V. 2014: €1 million; and PricewaterhouseCoopers Accountants N.V. 2013: €1 million)

and €4 million was payable to KPMG LLP (KPMG LLP 2014: €4 million and PricewaterhouseCoopers LLP 2013: €5 million).

(b) Comprises fees payable to the KPMG network of independent member firms affiliated with KPMG International Cooperative for audit work on statutory
financial statements and Group reporting returns of subsidiary companies in 2015 and 2014 (2013: PricewaterhouseCoopers International Limited).

(c) Amount payable to KPMG in respect of services supplied to associated pension schemes was less than €1 million individually and in aggregate (KPMG 2014:

less than €1 million individually and in aggregate and PricewaterhouseCoopers 2013: €1 million).

(d) Amounts paid in relation to each type of service are individually less than €1 million. In aggregate the fees paid were €1 million (2014: less than €1 million).

26. EVENTS AFTER THE BALANCE SHEET DATE

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the
impact of these events is adjusted within the financial statements. Otherwise, events after the balance sheet date of a material size or
nature are disclosed below.

On 19 January 2016 Unilever announced a quarterly dividend with the 2015 fourth quarter results of €0.3020 per NV ordinary share and
£0.2300 per PLC ordinary share.

135

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

27. GROUP COMPANIES
AS AT 31 DECEMBER 2015
In accordance with section 409 of the Companies Act 2006 a list of subsidiaries, partnerships, associates, and joint ventures as at
31 December 2015 is set out below. All subsidiary undertakings are subsidiary undertakings of their immediate parent undertaking(s)
pursuant to section 1162 (2) (a) of the Companies Act 2006 unless otherwise indicated – see the notes on page 147. All subsidiary
undertakings not included in the consolidation are not included because they are not material for such purposes. All associated
undertakings are included in the Unilever Group’s financial statements using the equity method of accounting unless otherwise indicated
– see the notes on page 147.

Principal group companies are identified in bold. These companies are incorporated and principally operate in the countries under which
they are shown.

The aggregate percentage of capital held by the Group is shown in the first column, except where it is 100%.

SUBSIDIARY UNDERTAKINGS INCLUDED IN THE CONSOLIDATION

Country of
Incorporation

Name of
Undertaking

% holding
as between
NV/PLC

Class of share
held in subsidiary
undertaking

Registered
address

Unilever Algérie SPA

NV 72.50 PLC 0

DZD1,000.00 Ordinary

Zone industrielle Hassi Ameur Oran 31000

ARA1.00 Ordinary

Tucumán 1, Piso 4°, Cdad. de Buenos Aires

Mendoza km 7/8 – Pocitos, San Juan

ARA1.00 Ordinary

11 de septiembre de 1888, N° 2173, 1° Piso, Buenos Aires

ARA1.00 Ordinary

Tucumán 1, Piso 4°, Cdad. de Buenos Aires

ARA1.00 Ordinary

11 de septiembre de 1888, N° 2173, 1° Piso, Buenos Aires

72.5

Algeria

Argentina

Australia

Austria

Arisco S.A.

Helket S.A.

La Farmaco Argentina I.y C.S.A

S.A.G.R.A. S.A.

Santamaria y Bellora S.R.L.

Unilever de Argentina S.A.

Ben & Jerry’s Franchising Australia Limited

Dermalogica Holdings Pty Limited

Dermalogica Pty Limited

Tea Too Pty Limited

TIGI Australia Pty Limited

Unilever Australia (Holdings) Pty Limited

Unilever Australia Group Partnership

Unilever Australia Limited

Unilever Australia Supply Services Limited

Unilever Australia Trading Limited

NV 64.55 PLC 35.45

NV 63.26 PLC 34.74

NV 55.40 PLC44.60

NV64.55 PLC35.45

NV 0 PLC 100

NV 0 PLC 100
NV 0 PLC 100

NV 0 PLC 100

ARA1.00 Ordinary

AUD1.00 Ordinary

AUD2.00 Ordinary

AUD1.00 Ordinary

AUD1.00 Ordinary-A
AUD1.00 Ordinary-B

AUD1.00 Ordinary

Partnership Interest

AUD1.00 Ordinary

Delico Handels GmbH

NV 100 PLC 0

EUR36,337.00 Ordinary

Kuner Nahrungsmittel GmbH

NV 100 PLC 0

EUR36,336.00 Ordinary

Intuiskin GmbH

TIGI Handels GmbH

ULPC Handels GmbH

Unilever Austria GmbH

NV 100 PLC 0

EUR35,000.00 Ordinary

NV 100 PLC 0

EUR36,336.00 Ordinary

NV 100 PLC 0

EUR218,019.00 Ordinary

NV 100 PLC 0 EUR10,000,000.00 Ordinary

Unilever BCS Austria GmbH

NV 55.40 PLC 44.60

EUR35,000.00 Ordinary

Tucumán 1, Piso 4°, Cdad. de Buenos Aires

Level 17, 2-26 Park Street, Sydney, NSW 2000

111 Chandos Street, Crows Nest, NSW 2065

Level 17, 2-26 Park Street, Sydney, NSW 2000

Stella-Klein-Löw Weg 13, 1023 Wien

Seilerstätte 13, 1010, Wien

Stella-Klein-Löw Weg 13, 1023 Wien

60.75

Bangladesh

Unilever Bangladesh Limited

NV 0 PLC 60.75

BDT100.00 Ordinary

51 Kalurghat Heavy Industrial Area, Kalurghat, Chittagong

Belgium

Bolivia

Brazil

136

Intuiskin SPRL

NV 100 PLC 0

EUR185.50 Ordinary

Rond-Point Schuman, 6 Box 5, 1040 Ettebeek

Unilever BCS Belgium NV/SA

NV 55.40 PLC 44.60

No Par Value Ordinary

Unilever Belgium NV/SA

NV 100 PLC 0

No Par Value Ordinary

Unilever Belgium Services SA/NV

NV 100 PLC 0

No Par Value Ordinary

Unilever Lipton Tea NV/SA

Unilever Andina Bolivia S.A.

NV 100 PLC 0

EUR1.00 Ordinary

BOB10.00 Ordinary

Alberto Culver Participacoes Ltda

NV 55.40 PLC 44.60

BRL1.00 Quotas

Humaniteitslaan 292, 1190 Brussels

Av. Blanco Galindo Km. 10.4 Cochabamba

Rua Líbero Badaró, 293 – 27º Floor – Suite 27D, Room 18 – São
Paulo/SP

Alberto-Culver do Brasil Cosmeticos Ltda

NV 55.40 PLC 44.60

BRL1.00 Quotas

Rua Caio Prado, 267 – Room 13, São Paulo/SP

NV 64.55 PLC 35.45

BRL2.80 Ordinary

Rod. BR 101-Norte, s/n, km. 43,6 – Room 4, Igarassu /PE

Cicanorte Industria de Conservas Alimenticas
S.A.

RGG – Comércio E Representações De
Produtos De Higiene Pessoal Ltda

NV 64.55 PLC 35.45

BRL1.00 Quotas

UB 4 – Comércio de Produtos de Limpeza Ltda NV 64.55 PLC 35.45

BRL1.00 Quotas

Av. Presidente Juscelino Kubitschek, 1.309 –13º floor – Room 19
– São Paulo/SP

Av. Presidente Juscelino Kubitschek, 1.309 –13º floor – Room 29
– São Paulo/SP

UBA 2 – Comércio e Representação de
Alimentos Ltda

NV 64.55 PLC 35.45

BRL1.00 Quotas Av. Presidente Juscelino Kubitschek, 1.309 –13º floor – Room 21
– São Paulo/SP

UBI 2 – Comercio de Alimentos Ltda

NV 64.55 PLC 35.45

UBI 4 – Comércio de Alimentos Ltda

NV 64.55 PLC 35.45

Unilever Brasil Gelados do Nordeste S.A.

Unilever Brasil Gelados Ltda

NV 64.55 PLC 35.45
NV 64.55 PLC 35.45

NV 64.55 PLC 35.45

BRL1.00 Quotas Av. Presidente Juscelino Kubitschek, 1.309 –13º floor – Room 24
– São Paulo/SP

BRL1.00 Quotas Av. Presidente Juscelino Kubitschek, 1.309 –13º floor – Room 28
– São Paulo/SP

BRL Ordinary – A
BRL Ordinary – B

Rod. BR 232, s/n, km. 13 – Jaboatão dos Guararapes/PE

BRL1.00 Quotas Av. Presidente Juscelino Kubitschek, 1.309 –13º floor – Room 23
– São Paulo/SP

Unilever Brasil Industrial Ltda

NV 64.55 PLC 35.45

BRL1.00 Quotas

Av. Presidente Juscelino Kubitschek, 1.309 –13º floor – Room 4
– São Paulo/SP

Unilever Brasil Ltda

NV 64.55 PLC 35.45

BRL1.00 Quotas Av. Presidente Juscelino Kubitschek, 1.309 – 1º to 12º Floor, part
of 13º floor and 14º floor – São Paulo/SP

UP! Alimentos Ltda

Veritas do Brazil Ltda

NV 32.28 PLC 17.72

NV 63.90 PLC 35.10

BRL1.00 Quotas

Av. Escola Politécnica, 760, 2º Floor – Room 6 – São Paulo/SP

BRL1.00 Quotas Av. Marechal Floriano, 19 – Room 1001 Part – Rio de Janeiro/RJ

Unilever Annual Report and Accounts 2015Financial statements
27. GROUP COMPANIES CONTINUED

Country of
Incorporation
Bulgaria

Name of
Undertaking
Unilever BCS Bulgaria EOOD

% holding
as between
NV/PLC
NV 55.40 PLC 44.60

Class of share
held in subsidiary
undertaking
BGN1,000.00 Ordinary

Bulgaria

Unilever Bulgaria EOOD

NV 100 PLC 0

BGN1,000.00 Ordinary

Registered
address
City of Sofia, Borough Mladost, 1, Business Park, Building 3,
Floor 1

City of Sofia, Borough Mladost, 1, Business Park, Building 3,
Floor 1

Unilever Bulgaria Holding EOOD

NV 100 PLC 0

BGN1,000.00 Ordinary City of Sofia, Borough Mladost, 1, Business Park, Building 3, Floor 1

Bulgaria

Unilever Bulgaria Distribution EOOD

NV 100 PLC 0

BGN1,000.00 Ordinary

Cambodia

Unilever (Cambodia) Limited

NV 100 PLC 0

KHR20,000.00 Ordinary

Canada

Dermalogica Canada Limited

NV 0 PLC 100

No Par Value Class A
Common

City of Sofia, Borough Mladost, 1, Business Park, Building 3,
Floor 1

No. 443A Street 105, Sangkat Boeung Pralit, Khan 7 Makara
Phnom Penh Capital

3081, 3rd Avenue, Whitehorse, Yukon Territory, Y1A 4Z7

Canada

Rexdale Property Inc.

Unilever BCS Canada Inc.

4012208 Canada Inc.

Unilever Canada Inc.

NV 64.55 PLC 35.45

No Par Value Common

195 Belfield Road, Rexdale, Toronto, Ontario M9W 1G9

NV 64.55 PLC 35.45

No Par Value Common

195 Belfield Road, Rexdale, Toronto, Ontario M9W 1G9

NV 64.55 PLC 35.45

No Par Value Common 1000 rue de la Gauchetière Ouest, Bureau 2500, Montreal H3B 0A2

NV 64.55 PLC 35.45
NV 64.55 PLC 35.45
NV 0 PLC 100
NV 64.55 PLC 35.45
NV 64.55 PLC 35.45

No Par Value Class A
No Par Value Class B
No Par Value Class C
No Par Value Common
No Par Value Special
Common

160 Bloor Street East, Suite 1400, Toronto ON M4W 3R2

Chile

China

Unilever Chile Limitada

Unilever Chile SCC Limitada

NV 64.55 PLC 35.45

Membership Interest

Av. Carrascal N°3351, Quinta Normal, Santiago

NV 64.55 PLC 35.45

Membership Interest

Av. Carrascal N°3351, Quinta Normal, Santiago

Ningbo Qinyuan Marketing Services Co.
Limited

Ningbo Qinyuan Water Equipment Co. Limited

Qinyuan Group Co. Limited

NV 55 PLC 0

CNY1.00 Ordinary

298, Seaside Avenue, Hangzhou Bay New Zone

NV 55 PLC 0

CNY1.00 Ordinary

358, Ci Yi Road, Hangzhou Bay New Zone

CNY1.00 Ordinary Seaside Avenue, Cixi Econimce and Technical Development Zone
(Hangzhou Bay New Zone)

Shanghai Qinyuan Environment Protection
Technology Co. Limited

Unilever (China) Investing Company

Unilever (China) Limited

NV 55 PLC 0

CNY1.00 Ordinary

NV 100 PLC 0

USD1.00 Ordinary

CNY1.00 Ordinary

Unilever (Tianjin) Company Limited

NV 100 PLC 0

USD1.00 Ordinary

Unilever Foods (China) Co. Limited

NV 100 PLC 0

USD1.00 Ordinary

Room 23, Hall 5, No. 38, Lane 168, Xing Fu Li Road, Fenjing
Town, Jinsham District, Shanghai 201100

No.33 North Fuquan Road, Shanghai, 200335,

88 Jinxiu Avenue, Hefei Economic and Technology Development
Zone, Hefei, 230601

Jingyi Road and Weiliu Road, Tianjin Airport Economic Area,
Tianjin

1068 Ting Wei Road, Jinshanzui Industrial region, Jinshan
district, Shanghai

Unilever Services (Hefei) Co. Limited

NV 100 PLC 0

CNY1.00 Ordinary 88 Jinxiu Avenue,, Hefei Economic and Technology Development
Zone, Hefei, 230601

Unilever (Sichuan) Company Limited

NV 100 PLC 0

Membership Interest

No. 1 Unilever Avenue, Pengshan Country, Sichuan Province
610016

Walls (China) Co. Limited

Zhejiang Qinyuan Water Treatment Technology
Co. Limited

NV 100 PLC 0

NV 55 PLC 0

CNY1.00 Ordinary

No.16 Wanyuan Road Beijing E&T Development Beijing 100076

CNY1.00 Ordinary

358, Ci Yi Road, Hangzhou Bay New Zone

Colombia

Unilever Colombia SCC S.A.S.

NV 100 PLC 0

COP100.00 Ordinary

Colombia

Unilever Andina Colombia Limitada

NV 100 PLC 0

COP100.00 Ordinary

Av. El Dorado, No. 69B-45. Bogota Corporate Center Piso 7,
Bogotá

Costa Rica

Unilever de Centroamerica S.A.

Unilever Costa Rica SCC S.A.

NV 100 PLC 0

CRC1.00 Ordinary

Del cruce de San Antonio de Belén, 400 mts. Oeste y 800 Nte

CRC1.00 Ordinary

Del cruce de San Antonio de Belén, 400 mts. Oeste y 800 Nte

89.98

Cote D’Ivoire

Unilever-Cote D’Ivoire

NV 0 PLC 89.98

XOF5,000.00 Ordinary

01 BP 1751 Abidjan 01, Boulevard de Vridi

Croatia

Cyprus

Unilever Hrvatska d.o.o.

Unilever Tseriotis Cyprus Limited

NV 100 PLC 0

NV 0 PLC 65

HRK1.00 Ordinary

Strojarska cesta 20, 10000 Zagreb

EUR1.00 Ordinary Head Offices, 195C Old Road Nicosia Limassol, CY-2540 Idalion
Industrial Zone – Nicosia

Czech Republic Unilever BCS ČR, spol. s r.o.

NV 55.40 PLC 44.60

CZK1.00 Ordinary

Rohanské nábřeží 670/17, Karlín, Praha 8, 186 00

Czech Republic Unilever ČR, spol. s r.o.

NV 0 PLC 100

CZK210,000.00 Ordinary

Rohanské nábřeží 670/17, Karlín, Praha 8, 186 00

Denmark

Unilever BCS Danmark A/S

NV 55.40 PLC 44.60

DKK1,000.00 Ordinary

Ørestads Boulevard 73, 2300 København S

Unilever Danmark A/S

Unilever Production ApS

NV 100 PLC 0

DKK1,000.00 Ordinary

Ørestads Boulevard 73, 2300 København S

NV 100 PLC 0

DKK100.00 Ordinary

Petersmindevej 30, 5000 Odense C

80.15

Denmark

Froosh ApS

NV 0 PLC 80.15

DKK1,000.00 Ordinary

Lindgreens Alle 12, 3 Sal, 2300 København S

Dominican
Republic

Unilever Caribe, S.A.

NV 100 PLC 0

DOP1,000.00 Ordinary Ave. Winston Churchill, Torre Acrópolis Piso 17, Santo Domingo

Ecuador

Unilever Andina Ecuador S.A.

Egypt

Fine Tea Co (SAE)

Unilever Mashreq – Foods (SAE)

Unilever Mashreq – Home Care (SAE)

Unilever Mashreq Trading LLC

Unilever Mashreq – Personal Care (SAE)

Unilever Mashreq – Tea (SAE)

El Salvador

Unilever El Salvador SCC S.A. de C.V.

El Salvador

Unilever de Centro America S.A.

Accantia Group Holdings
(unlimited company)

NV 100 PLC 0

NV 0 PLC 60

NV 100 PLC 0

USD1.00 Ordinary

EGP2.00 Ordinary

EGP20.00 Ordinary

Km 25 Vía a Daule, Guayaquil

Bourg El-Arab City, Alexandria

EGP2.00 Ordinary

6th of October City, 4th Industrial Zone, Piece Number 68, Giza

EGP10.00 Ordinary

Industrial Zone – 14th May Bridge, Smouha, Alexandria

EGP10.00 Ordinary

6th of October City, 4th Industrial Zone, Piece Number 68, Giza

EGP100.00 Ordinary Bourg El-Arab City, 1st Industrial Zone, Block 11, Piece Number
5, Alexandria

USD1.00 Ordinary

Boulevard del Ejercito Nacional, Km. 3 1/2, San Salvador

USD100.00 Ordinary

Boulevard del Ejercito Nacional, Km. 3 1/2, San Salvador

NV 5.61 PLC 94.39

GBP0.01 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

England and
Wales

Alberto-Culver (Europe) Limited

NV 55.40 PLC 44.60

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Alberto-Culver Company (U.K.) Limited

NV 5.61 PLC 94.39

GBP1.00 Ordinary

Unilever House, Springfield Drive, Leatherhead, KT22 7GR

Alberto-Culver Group Limited

NV 55.40 PLC 44.60

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Alberto-Culver UK Holdings Limited

NV 55.40 PLC 44.60

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

137

Unilever Annual Report and Accounts 2015Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

27. GROUP COMPANIES CONTINUED

Country of
Incorporation
England and
Wales

Name of
Undertaking
Alberto-Culver UK Products Limited

% holding
as between
NV/PLC
NV 55.40 PLC 44.60
NV 55.40 PLC 44.60

Class of share
held in subsidiary
undertaking
GBP1.00 Ordinary
GBP5.00 Preference

Registered
address
Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

England and
Wales

Associated Enterprises Limited°

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

BBG Investments (France) Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Brooke Bond Assam Estates Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Brooke Bond Group Limited°

NV 0 PLC 100

GBP0.25 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Brooke Bond South India Estates Limited°

NV 0 PLC 100
NV 0 PLC 100

GBP1.00 Ordinary
GBP1.00 Redeemable
Preference

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

CPC (UK) Pension Trust Limited

NV 0 PLC 100

Limited by Guarantee

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Dermalogica (UK) Limited

NV 0 PLC 100

GBP1.00 Ordinary

The Manser Building, Thorncroft Manor , Thorncroft Drive,
Dorking, KT22 8JB

Intuiskin Limited

NV 100 PLC 0

GBP1.00 Ordinary

16 Great Queen Street, Covent Garden, London, WC2B 5AH

Margarine Union (1930) Limited°

MBUK Trading Limited

NV 0 PLC 100
NV 0 PLC 100
NV 0 PLC 100

NV 0 PLC 100

GBP0.01 Estate
GBP1.00 Ordinary
GBP1.00 Viscountcy

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Mixhold Investments Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Murad Europe Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Ren Limited

NV 0 PLC 100

GBP1.00 Ordinary

64 New Cavendish Street, London, W1G 8TB

Ren Skincare Limited

NV 0 PLC 100

GBP1.00 Ordinary

The Edison, 223 – 231 Old Marylebone Road, London, NW1 5QT

T2 Tea (UK) Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

TIGI Holdings Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

TIGI International Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, Springfield Drive, Leatherhead, KT22 7GR

TIGI Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Toni & Guy Products Limited°

NV 0 PLC 100

GBP0.001 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

UAC International Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

UML Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unidis Forty Nine Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever Australia Investments Limited

Unilever Australia Partnership Limited

Unilever Australia Services Limited

NV 0 PLC 100
NV 0 PLC 100

AUD10.00 Ordinary-A
GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever BCS Limited

NV 55.40 PLC 44.60

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever BCS UK Limited°

Unilever BCS UK Services Limited°

NV 55.40 PLC 44.60
NV 0 PLC 100

GBP1.00 Ordinary
GBP1.00 Redeemable
Golden Share

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever Company for Industrial Development
Limited

Unilever Company for Regional Marketing and
Research Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever Corporate Ventures Limited°

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever Employee Benefit Trustees Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever General Partner (Colworth Park)
Limited

Unilever Innovations Limited

Unilever Overseas Holdings Limited°

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

NV 0 PLC 100
NV 0 PLC 100

NV 0 PLC 100

GBP1.00 Deferred
GBP0.10 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever Pension Trust Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, Springfield Drive, Leatherhead, KT22 7GR

138

Unilever Annual Report and Accounts 2015Financial statements
27. GROUP COMPANIES CONTINUED

Country of
Incorporation
England and
Wales

England and
Wales

Estonia

Ethiopia

Finland

France

80.15

99.99

Name of
Undertaking
Unilever Superannuation Trustees Limited

% holding
as between
NV/PLC
NV 0 PLC 100

Class of share
held in subsidiary
undertaking
GBP1.00 Ordinary

Registered
address
Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever U.K. Central Resources Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever U.K. Holdings Limited°

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever UK & CN Holdings Limited

Unilever UK Group Limited

NV 0 PLC 100

NV 0 PLC 100
NV 0 PLC 100

NV 49.86 PLC 50.14
NV 1.67 PLC 98.33
NV 5.61 PLC 94.39

GBP10.00 Class A
Redeemable Preference
GBP10.00 Class B
Redeemable Preference
GBP1.00 Ordinary-A
GBP1.00 Ordinary-B

GBP1.00 Ordinary-A
GBP1.00 Ordinary-B
GBP1.00 Ordinary-C

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever UK Limited

NV 5.61 PLC 94.39

GBP1.00 Ordinary

Unilever House, Springfield Drive, Leatherhead, KT22 7GR

Unilever UK Pension Fund Trustees Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, Springfield Drive, Leatherhead, KT22 7GR

Unilever US Investments Limited°

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever Ventures General Partner Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Unilever Ventures III Limited Partnership

NV 0 PLC 100

Partnership Interest

1st Floor, 16 Charles II Street, London, SW1Y 4QU

Unilever Ventures Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

United Holdings Limited°

NV 0 PLC 100
NV 99.67 PLC 0.33

GBP1.00 Ordinary
GBP500.00 Preferred

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

USF Nominees Limited

NV 0 PLC 100

GBP1.00 Ordinary

Unilever House, Springfield Drive, Leatherhead, KT22 7GR

Unilever Eesti AS

Unilever Manufacturing PLC

Unilever Finland Oy

Unilever Ingman Production Oy

NV 100 PLC 0

NV 0 PLC 100

NV 100 PLC 0

EUR16.82 Ordinary

EUR1.00 Ordinary

Unilever Spreads Finland Oy

NV 55.40 PLC 44.60

EUR1,250.00 Ordinary

NV 0 PLC 80.15

EUR25.00 Ordinary

Froosh OY

Alsa France S.A.S.

EUR6.30 Ordinary

Kalmistu tee 28a, Tallinna linn, Harju maakond, 11216

ETB1,000.00 Ordinary

Bole Sub city, Kebele 03/05, Lidiya Building, Addis Ababa

Post Box 254, 00101 Helsinki

Roineentie 10, 00510 Helsinki

Energiataku 3, 00180 Helsinki

NV 64.54 PLC 35.45

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

Amora Maille Societe Industrielle S.A.S.

NV 64.54 PLC 35.45

No Par Value Ordinary

ZI de la Norge – Chevigny Saint-Sauveur, 21800 Quetigny

Bestfoods France Industries S.A.S.

NV 64.54 PLC 35.45

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

Cogesal-Miko S.A.S.

NV 64.54 PLC 35.45

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

Fralib Sourcing Unit S.A.S.

NV 64.54 PLC 35.45

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

Grom France S.a.r.l

Intuiskin S.A.S.

Relais D’or-Miko S.A.S.

Saphir S.A.S.

Sfejer S.A.S.

Tigi Services France S.A.S.

Unilever BCS France S.A.S.

Unilever France S.A.S.

NV 100 PLC 0

EUR10,000.00 Ordinary

81 Rue De Seine, 75006 Paris

NV 100 PLC 0

EUR1.00 Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

NV 64.54 PLC 35.45

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

NV 64.54 PLC 35.45

EUR1.00 Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

NV 64.54 PLC 35.45

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

NV 64.54 PLC 35.45

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

NV 55.40 PLC 44.60

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

NV 64.54 PLC 35.45

No Par Value Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

Unilever France Holdings S.A.S.

NV 64.54 PLC 35.45

EUR1.00 Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

Unilever France HPC Industries S.A.S.

NV 64.54 PLC 35.45

EUR1.00 Ordinary

20, rue des Deux Gares, 92500, Ruiel-Malmaison

Germany

Dermalogica GmbH

NV 100 PLC 0

EUR25,000.00 Ordinary

Gerresheimer Landstraße 71, 40627 Düsseldorf

99.99

Germany

99.99

Germany

DU Gesellschaft für
Arbeitnehmerüberlassung mbH

Maizena Grundstücksverwaltung GmbH &
Co. OHG

NV 64.54 PLC 35.45

DEM50,000.00 Ordinary

Am Strandkai 1, 20457 Hamburg

NV 63.60 PLC 36.39

Partnership Interest

Schultetusstraße 37, 17153 Stavenhagen

99.99

Germany

Pfanni GmbH & Co. OHG

NV 64.54 PLC 35.45

Partnership Interest

Schultetusstraße 37, 17153 Stavenhagen

Germany

Rizofoor GmbH

Germany

Schafft GmbH

Germany

TIGI Eurologistic GmbH

TIGI Haircare GmbH

UBG Vermietungs GmbH

NV 96.45 PLC 3.55
NV 100 PLC 0

EUR15,350.00 Ordinary
EUR138,150.00 Ordinary

NV 64.55 PLC 35.45
NV 64.55 PLC 35.45

EUR63,920.00 Ordinary
EUR100,000.00 Ordinary

NV 0 PLC 100
NV 0 PLC 100

EUR100.00 Ordinary
EUR24.900.00 Ordinary

Schultetusstraße 37, 17153 Stavenhagen

Hertzstraße 6, 71083 Herrenberg-Gülstein

NV 0 PLC 100

EUR25,600.00 Ordinary

Hertzstraße 6, 71083 Herrenberg-Gülstein

Unilever BCS Deutschland GmbH

NV 64.55 PLC 35.45

EUR25,000.00 Ordinary

NV 66.22 PLC 33.78

Partnership Interest

NV 64.55 PLC 35.45
NV 96.45 PLC 3.55

EUR136,377,489.00 Ordinary
EUR8,090,190.00 Ordinary

Schultetusstraße 37, 17153 Stavenhagen

Am Strandkai 1, 20457 Hamburg

Unilever BCS Deutschland Immobilien
Leasing GmbH & Co. OHG

Unilever BCS IP Deutschland GmbH & Co.
OHG

Unilever BCS Sourcing Deutschland GmbH &
Co. OHG

NV 64.45 PLC 35.55

Partnership Interest

Am Strandkai 1, 20457 Hamburg

NV 64.45 PLC 35.55

Partnership Interest

Am Strandkai 1, 20457 Hamburg

Germany

Unilever BCS Verwaltungs GmbH

NV 55.40 PLC 44.60

EUR1.00 Ordinary

Unilever Deutschland GmbH

NV 64.55 PLC 35.45
NV 64.55 PLC 35.45
NV 64.55 PLC 35.45

EUR90,000,000.00 Ordinary
EUR2,000,000.00 Ordinary
EUR1,000,000.00 Ordinary

Am Strandkai 1, 20457 Hamburg

139

Unilever Annual Report and Accounts 2015Financial statements
Germany

Germany

Ghana

Greece

66.56

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

27. GROUP COMPANIES CONTINUED

Country of
Incorporation
Germany

Name of
Undertaking
Unilever Deutschland Holding GmbH

% holding
as between
NV/PLC
NV 64.55 PLC 35.45
NV 64.55 PLC 35.45
NV 64.55 PLC 35.45
NV 64.55 PLC 35.45
NV 64.55 PLC 35.45

Class of share
held in subsidiary
undertaking
EUR39,000.00 Ordinary
EUR18,000.00 Ordinary
EUR14,300.00 Ordinary
EUR5.200.00 Ordinary
EUR6,500.00 Ordinary

Registered
address
Am Strandkai 1, 20457 Hamburg

Unilever Deutschland Immobilien Leasing
GmbH & Co. OHG

NV 66.33 PLC 33.67

Partnership Interest

Schultetusstraße 37, 17153 Stavenhagen

Unilever Deutschland IPR GmbH & Co. OHG

NV 64.55 PLC 35.45

Partnership Interest

Schultetusstraße 37, 17153 Stavenhagen

Unilever Deutschland Produktions GmbH &
Co. OHG

Unilever Deutschland Produktions
Verwaltungs GmbH

Unilever Deutschland Supply Chain Services
GmbH

NV 64.55 PLC 35.45

Partnership Interest

Am Strandkai 1, 20457 Hamburg

NV 64.55 PLC 35.45

EUR179,000.00 Ordinary

Am Strandkai 1, 20457 Hamburg

NV 64.55 PLC 35.45

EUR51,150.00 Ordinary

Am Strandkai 1, 20457 Hamburg

Millers Swanzy (Ghana) Limited

NV 0 PLC 100

GHC1.00 Ordinary

Swanmill, Kwame Nkrumah Avenue, Accra

Unilever Ghana Investments Limited

NV 0 PLC 66.56

GHC10.00 Ordinary

Plot No. Ind/A/3A-4, Heavy Industrial Area, Tema

NV 0 PLC 66.56

GHC0.0192 Ordinary

Plot No. Ind/A/3A-4, Heavy Industrial Area, Tema

Unilever Ghana Limited

Elais Unilever Hellas SA

Elanthi SA

Unilever Knorr SA

UL BCS Logistics Consulting SA

Lipoma Management Consulting SA

Unilever Logistics SA

Guatemala

Unilever de Centroamerica S.A. Guatemala

Guatemala

Unilever Guatemala SCC S.A.

Honduras

Unilever de Centroamerica, S.A.

NV 100 PLC 0

EUR10.00 Ordinary

GTQ60.00 Ordinary

GTQ100.00 Ordinary

HNL100.00 Ordinary

Kymis ave & 10, Seneka str. GR-145 64 Kifissia

Diagonal 6. 10-50 zona 10, Ciudad de Guatemala. Nivel 17 Torre
Norte Ed. Interamericas World Financial Center

24 Avenida 35-87 Calzada Atanacio Tzul, Zona 12

Anillo Periférico 600 metros después de la colonia, Residencial
Las Uvas contigua acceso de colonia residencial, Tegucigalpa

Honduras

Alberto-Culver Centroamericana S.A. de C.V.

NV 55.40 PLC 44.60

HNL10.00 Ordinary

Hong Kong

Kate Somerville Skincare, Hong Kong Limited NV 64.55 PLC 35.45

HKD1.00 Ordinary

Room 1505, Wheelock House, 20 Pedder Street, Central

Hong Kong

Unilever Hong Kong Limited

NV 64.55 PLC 35.45

HKD0.10 Ordinary

6 Dai Fu Street, Tai Po Industrial Estate, N.T.

Hungary

Multifrozen Kereskedelmi Kft

NV 0 PLC 100

HUF1.00 Ordinary

Unilever BCS Hungary Kft

Unilever Magyarország Kft

NV 55.40 PLC 44.60

HUF1.00 Ordinary

NV 0 PLC 100

HUF1.00 Ordinary

67.21

India

Bhavishya Alliance Child Nutrition Initiatives

NV 0 PLC 67.21

INR10.00 Ordinary

67.21

India

Daverashola Estates Private Limited

NV 0 PLC 67.21

INR10.00 Ordinary

67.21

India

Hindlever Trust Limited

NV 0 PLC 67.21

INR10.00 Ordinary

67.21

India

Hindustan Unilever Limited°

NV 0 PLC 67.21

INR1.00 Ordinary

1138-Budapest, Váci u. 182

Unilever House, B. D. Sawant Marg, Chakala, Andheri (E),
Mumbai 400 099

22.18

67.21

India

Hi-Tech Surfactants Private Limited

Jamnagar Properties Private Limited

NV 0 PLC 22.18

NV 0 PLC 67.21

INR20.00 Ordinary

488, Bartan Market, Sadar Bazaar, New Delhi 110 006

INR10.00 Ordinary

Unilever House, B. D. Sawant Marg, Chakala, Andheri (E),
Mumbai 400 099

67.21

India

Lakme Lever Private Limited

NV 0 PLC 67.21

INR10.00 Ordinary

67.21

India

Levers Associated Trust Limited

NV 0 PLC 67.21

INR10.00 Ordinary

67.21

India

Levindra Trust Limited

NV 0 PLC 67.21

INR10.00 Ordinary

67.21

India

Pond’s Exports Limited

NV 0 PLC 67.21

INR1.00 Ordinary

67.21

India

Unilever India Exports Limited

NV 0 PLC 67.21

INR10.00 Ordinary

Unilever Industries Private Limited°

NV 0 PLC 100

INR10.00 Ordinary

Unilever Ventures India Advisory Private
Limited

NV 0 PLC 100

INR1.00 Ordinary

1st Floor, Shreeniwas House, H. Somani Marg, (behind Bombay
Gymkhana) Fort, Mumbai 40001

Unilever House, B. D. Sawant Marg, Chakala, Andheri (E),
Mumbai 400 099

PT Unilever Indonesia Tbk

NV 54.86 PLC 30.13

IDR10.00 Ordinary

Graha Unilever, Jl. Jend. Gatot Subroto Kav 15, Jakarta 12930

PT Unilever Enterprises Indonesia

NV 64.07 PLC 35.19

IDR1,000.00 Ordinary

Graha Unilever, Jl. Jend. Gatot Subroto Kav 15, Jakarta 12930

PT Unilever Oleochemical Indonesia

NV 100 PLC 0

IDR1,000,000.00 Ordinary

Graha Unilever, Jl. Jend. Gatot Subroto Kav 15, Jakarta 12930

99.35

Iran

Unilever Iran (Private Joint Stock Company)

NV 99.35 PLC 0

IRR1,000,000.00 Ordinary

Ireland

Lipton Soft Drinks (Ireland) Limited

PLC 100 NV 0

EUR1.26 Ordinary

137 Shiraz Building, Corner of the 21st Street,
Khaled Eslamboli Ave, Tehran

20 Riverwalk, National Digital Park, Citywest Business Campus
Dublin 24

Ireland

Unilever BCS Ireland Limited

NV 55.40 PLC 44.60

Ireland

Unilever Ireland (Holdings) Limited

NV 0 PLC 100

EUR1.00 Ordinary 20 Riverwalk, National Digital Park, Citywest Business Campus
Dublin 24

EUR1.26 Ordinary 20 Riverwalk, National Digital Park, Citywest Business Campus
Dublin 24

140

India

84.99

99.26

Indonesia

Unilever Annual Report and Accounts 2015Financial statements
27. GROUP COMPANIES CONTINUED

Country of
Incorporation
Ireland

Name of
Undertaking
Unilever Ireland Limited

% holding
as between
NV/PLC
NV 0 PLC 100

Class of share
held in subsidiary
undertaking

Registered
address
EUR1.26 Ordinary 20 Riverwalk, National Digital Park, Citywest Business Campus
Dublin 24

Ireland

Unilever Superannuation (Ireland) Trust
Limited

PLC 100 NV 0

EUR1.26 Ordinary

20 Riverwalk, National Digital Park, Citywest Business Campus
Dublin 24

Israel

Italy

Japan

Jersey

Kenya

80.15

96.02

51.08

Beigel & Beigel Mazon (1985) Limited

NV 12.8 PLC 87.2

ILS1.00 Ordinary

3 Gilboa St. Airport City, Ben Gurion Airport

Bestfoods TAMI Holdings Limited

NV 25.11 PLC 74.89

ILS0.001 Ordinary

52 Julius Simon Street, Haifa

Glidat Strauss Limited

NV 0 PLC 100
NV 0 PLC 100
NV 0 PLC 0

ILS1.00 Management
ILS1.00 Ordinary
ILS1.00 Dormant†

Israel Vegetable Oil Company Limited

NV 25.11 PLC 74.89

ILS0.0001 Ordinary

Lever Distribution of Personal Care and
Cleaning Products Limited

Unilever Israel Foods Limited

NV 0 PLC 100

ILS0.0001 Ordinary

NV 25.10 PLC 74.90
NV 25.10 PLC 74.90
NV 25.10 PLC 74.90
NV 25.10 PLC 74.90

ILS0.10 Class A
ILS0.10 Class B
ILS0.10 Class C
ILS0.0002 Special

Haharoshet 1, PO Box 2288, Akko, 24122

52 Julius Simon Street, Haifa

Unilever Israel Home and Personal Care
Limited

NV 0 PLC 100

ILS1.00 Ordinary

52 Julius Simon Street, Haifa

Unilever Israel Marketing Limited

NV 25.11 PLC 74.89

ILS0.0001 Ordinary

Unilever Shefa Israel Limited

NV 25.11 PLC 74.89

ILS1.00 Ordinary

Gromart S.R.L.

G.L.L. S.R.L.

Grom-PD S.R.L.

Intuiskin S.R.L.

NV 100 PLC 0

EUR1,815,800.00 Ordinary

NV 100 PLC 0

EUR40,000.00 Common

NV 100 PLC 0

EUR40,000.00 Common

NV 100 PLC 0

EUR10,000.00 Ordinary

Unilever BCS Italia S.R.L.

NV 55.40 PLC 44.60

EUR10,000.00 Ordinary

52 Julius Simon Street, Haifa

Piazza Paleocapa 1/D 10100 Torino

Via Crea 10, Grugliasco

Via Roma 101, Padova

Via Tortona 25, cap 20144 – Milano

Via Paolo di Dono 3/A 00142 Roma

Unilever Italia Administrative Services S.R.L.

NV 100 PLC 0

EUR70,000.00 Ordinary

Piazzale Biancamano n.8, 20121, Milano

Unilever Italia Logistics S.R.L.

NV 100 PLC 0

EUR600,000.00 Ordinary

Unilever Italia Manufacturing S.R.L.

NV 100 PLC 0 EUR10,000,000.00 Ordinary

Unilever Italia Mkt Operations S.R.L.

NV 100 PLC 0 EUR25,000,000.00 Ordinary

NV 100 PLC 0 EUR200,000,000.00 Ordinary

Unilever Italy Holdings S.R.L.

Unilever Japan Beverage K.K.

Via Paolo di Dono 3/A 00142 Roma

NV 100 PLC 0

JPY50,000.00 Ordinary

2-1-1, Kamimeguro, Meguro-ku, Tokyo 153-8578

Unilever Japan Customer Marketing K.K.

NV 100 PLC 0

JPY50,000.00 Ordinary

2-1-1, Kamimeguro, Meguro-ku, Tokyo 153-8578

Unilever Japan Holdings K.K.

NV 100 PLC 0

JPY50,000.00 Ordinary

2-1-1, Kamimeguro, Meguro-ku, Tokyo 153-8578

Unilever Japan K.K.

Froosh K.K.

NV 100 PLC 0

JPY50,000.00 Ordinary

2-1-1, Kamimeguro, Meguro-ku, Tokyo 153-8578

NV 0 PLC 80.15

JPY50,000.00 Ordinary

1–10–3–901 Roppongi, Minatu–ku, Tokyo 106–0032

Unilever Japan Service K.K.

NV 100 PLC 0

JPY50,000.00 Ordinary

2-1-1, Kamimeguro, Meguro-ku, Tokyo 153-8578

Unilever Chile Investments Limited

NV 64.55 PLC 35.45

GBP1.00 Ordinary

13 Castle Street, St Helier, Jersey , JE4 5UT

Brooke Bond Mombasa Limited

Mabroukie Tea & Coffee Estates Limited

NV 0 PLC 96.02

KES1.00 Ordinary Head Office, Kericho-Nakuru Road, P.O. BOX 20, 20200, Kericho

The Limuru Tea Company Limited

NV 0 PLC 51.08

KES20.00 Ordinary Head Office, Kericho-Nakuru Road, P.O. BOX 20, 20200, Kericho

Unilever Kenya Limited°

NV 0 PLC 100

KES20.00 Ordinary

Commercial Street, Industrial Area, P.O. BOX 30062-00100,
Nairobi

98.54

Kenya

Unilever Tea Kenya Limited

NV 0 PLC 98.54

KES1.00 Ordinary Head Office, Kericho-Nakuru Road, P.O. BOX 20, 20200, Kericho

Korea

Unilever Korea Chusik Hoesa

NV 100 PLC 0
NV 100 PLC 0

KRW10,000.00 Ordinary
KRW10,000.00 Preference

443 Taeheran-ro, Samsung-dong, Kangnam-gu, Seoul

Laos

Unilever Services (Lao) Sole Co Limited

NV 100 PLC 0

LAK80,0000.00 Ordinary

Viengvang Tower, 4th Floor, Room no. 402A, Boulichan Road,
Dongpalan Thong Village, Sisattanak District, Vientiane Capital

Latvia

Lebanon

Lithuania

Malawi

Malaysia

Mexico

Unilever Baltic LLC

Unilever Levant s.a.r.l.

NV 100 PLC 0

EUR1.00 Ordinary

Kronvalda bulvāris 3-10, Rīga, LV-1010

NV 100 PLC 0

LBP1,000,000.00 Ordinary

Sin El Fil, Zakher Building, Floor 4, Beirut

UAB Unilever Lietuva distribucija

NV 100 PLC 0

EUR3,620.25 Ordinary

UAB Unilever Lietuva ledu gamyba

NV 100 PLC 0

EUR3,620.25 Ordinary

Unilever South East Africa (Private) Limited

NV 0 PLC 100

MWK2.00 Ordinary

Skuodo st. 28, Mazeikiai, LT-89100

Corner of Tsiranana Road and Citrona Avenue, P.O. Box 5151
Limbe

Unilever (Malaysia) Holdings Sdn. Bhd.

Unilever (Malaysia) Services Sdn. Bhd.

Unilever Foods (Malaysia) Sdn. Bhd.

Unilever Malaysia Aviance Sdn. Bhd.

NV 0 PLC 70

NV 0 PLC 100

RM1.00 Ordinary

Level 34, Menara TM, Jalan Pantai Baru, 59200 Kuala Lumpur

RM1.00 Ordinary

Level 34, Menara TM, Jalan Pantai Baru, 59200 Kuala Lumpur

RM75.00 Ordinary

Level 34, Menara TM, Jalan Pantai Baru, 59200 Kuala Lumpur

RM1.00 Ordinary

Level 34, Menara TM, Jalan Pantai Baru, 59200 Kuala Lumpur

Unilever de Mexico S.de R.L. de C.V.

NV 64.55 PLC 35.45

Partnership Interest

Mexico

Unilever Holding Mexico S.de R.L. de C.V.

NV 64.55 PLC 35.45

Partnership Interest

Mexico

Unilever Manufacturera S.de R.L. de C.V.

NV 64.55 PLC 35.45

Partnership Interest

Mexico

Servicios Professionales Unilever S.de R.L. de
C.V.

NV 64.55 PLC 35.45

Partnership Interest

Mexico

Unilever Mexicana S.de R.L. de C.V.

NV 64.55 PLC 35.45

Partnership Interest

Mexico

Unilever Real Estate Mexico S.de R.L. de C.V.

NV 64.55 PLC 35.45

Partnership Interest

Mexico

Unilever Servicios de Promotoria, S.de R.L. de
C.V.

NV 64.55 PLC 35.45

Partnership Interest

Av. Tepalcapa No.2, Col. Rancho Santo Domingo, C.P. 54900
Tultitlán, Estado de México

99.98

Morocco

Unilever Maghreb S.A.

NV 99.98 PLC 0

MAD100.00 Ordinary

Km 10, Route Cotiere, Ain Sebaa, Casablanca

Mozambique

Unilever Mocambique Limitada

NV 100 PLC 0

USD0.01 Ordinary

Avenida Samora Machel, Nr. 666, Plot 526A, Matola,

Myanmar

Unilever (Myanmar) Limited

NV 100 PLC 0

MMK8,200.00 Ordinary

40,41,47, Mintheidie Kyaw Swar Street, Shwe Pyi Thar Industrial
Zone (2), Yangon

141

Unilever Annual Report and Accounts 2015Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

27. GROUP COMPANIES CONTINUED

Country of
Incorporation
Myanmar

Name of
Undertaking
Unilever (Myanmar) Services Limited

% holding
as between
NV/PLC
NV 100 PLC 0

Class of share
held in subsidiary
undertaking
USD10.00 Ordinary

Registered
address
150, Kabar Aye Pagoda Road, Bahn Township, Yangon

53.79

Nepal

Unilever Nepal Limited

NV 0 PLC 53.79

NPR100.00 Ordinary

Basamadi V.D.C. – 5, P.O. Box-11, Hetauda, Dist. Makwanpur

Netherlands

Alberto-Culver Netherlands B.V.*

NV 55.40 PLC 44.60
NV 55.40 PLC 44.60

EUR1.00 Ordinary-A
EUR1.00 Ordinary-B

Weena 455, 3013 AL Rotterdam

Netherlands

Argentina Investments B.V.*

NV 64.55 PLC 35.45

EUR454.00 Ordinary

Weena 455, 3013 AL Rotterdam

Netherlands

Ben en Jerry’s Hellendoorn B.V.*

NV 100 PLC 0

EUR453.78 Ordinary

Reggeweg 15, 7447 AN Hellendoorn

Netherlands

BFO Holdings B.V.*

NV 64.55 PLC 35.45

EUR1.00 Ordinary

Netherlands

BFO TWO B.V.*

Netherlands

BrazH1 B.V.*

Netherlands

BrazH2 B.V.*

Netherlands

Brazinvest B.V.*

Netherlands

Brazinvestee B.V.*

Netherlands

Chico-invest B.V.*

Netherlands

Doma B.V.*

NV 55.40 PLC 44.60

EUR1.00 Ordinary

NV 64.55 PLC 35.45

EUR1.00 Ordinary

NV 64.55 PLC 35.45

EUR1.00 Ordinary

NV 64.55 PLC 35.45

EUR1.00 Ordinary

NV 64.55 PLC 35.45

EUR1.00 Ordinary

NV 64.55 PLC 35.45

EUR455.00 Ordinary

NV 100 PLC 0

NLG1,000.00 Ordinary

Netherlands

Handelmaatschappij Noorda B.V.°*

NV 100 PLC 0

NLG1,000.00 Ordinary

Netherlands

Immobilia Transhome B.V.*

NV 100 PLC 0

NLG1,000.00 Ordinary

Netherlands

Itaho B.V.*

NV 100 PLC 0

EUR1.00 Ordinary

Weena 455, 3013 AL Rotterdam

NV 100 PLC 0

NLG1,000.00 Ordinary

Deltaweg 150, 3133 KM Vlaardingen

Netherlands

Lever Faberge Europe-Sourcing Unit
Vlaardingen B.V.*

Netherlands

Lipoma B.V.°*

Netherlands

Marga B.V.°*

Netherlands

Mavibel (Maatschappij voor Internationale
Beleggingen) B.V.°*

Netherlands

Mexinvest B.V.*

Netherlands

Mixhold B.V.*

Netherlands

Naamlooze Vennootschap Elma°*

Netherlands

New Asia B.V.*

Netherlands

Nommexar B.V.*

NV 100 PLC 0

NLG1,000.00 Ordinary

NV 100 PLC 0

EUR1.00 Ordinary

NV 64.55 PLC 35.45

EUR1.00 Ordinary

NV 100 PLC 0
NV 0 PLC 100
NV 55.40 PLC 44.60
NV 55.40 PLC 44.60
NV 55.40 PLC 44.60
NV 55.40 PLC 44.60
NV 55.40 PLC 44.60
NV 55.40 PLC 44.60

NV 100 PLC 0
NV 0.25 PLC 99.75

EUR1.00 Ordinary-A
EUR1.00 Ordinary-B
EUR1.00 Preference C
EUR1.00 Preference D
EUR1.00 Preference E
EUR1.00 Preference F
EUR1.00 Preference G
EUR1.00 Preference H

NLG1,000.00 Ordinary
NLG1,000.00 5% Cumulative
Preference

NV 64.55 PLC 35.45

EUR1.00 Ordinary

NV 64.55 PLC 35.45

EUR1.00 Ordinary

Netherlands

Ortiz Finance B.V.*

NV 64.55 PLC 35.45

NLG100.00 Ordinary

Netherlands

Pabulum B.V.*

Netherlands

Rizofoor B.V.*

NV 100 PLC 0

NLG1,000.00 Ordinary

NV 0 PLC 100

NLG1,000.00 Ordinary

Netherlands

Rolf von den Baumen’s Vetsmelterij B.V.*

NV 100 PLC 0

EUR454.00 Ordinary

Netherlands

Rolon B.V.*

Netherlands

Saponia B.V.°*

Netherlands

ThaiB1 B.V.*

Netherlands

ThaiB2 B.V.

Netherlands

Unilever Administration Centre B.V.*

Netherlands

Unilever Alser B.V.*

NV 64.55 PLC 35.45

NLG1,000.00 Ordinary

NV 100 PLC 0

NLG1,000.00 Ordinary

NV 64.55 PLC 35.45

NLG1,000.00 Ordinary

NV 64.55 PLC 35.45

NLG1,000.00 Ordinary

NV 100 PLC 0

EUR1.00 Ordinary

Netherlands

Unilever BCS Europe B.V.*

NV 55.40 PLC 44.60

EUR1.00 Ordinary

Weena 455, 3013 AL Rotterdam

Netherlands

Unilever BCS Nederland B.V.*

NV 55.40 PLC 44.60

EUR1.00 Ordinary

Nassaukade 5, 3071 JL Rotterdam

Netherlands

Unilever BCS NL Holdings One B.V.*

NV 64.55 PLC 35.45

EUR1.00 Ordinary

Netherlands

Unilever BCS NL Holdings Two B.V.*

NV 55.40 PLC 44.60

EUR1.00 Ordinary

Weena 455, 3013 AL Rotterdam

Netherlands

Unilever BCS Research and Development B.V.* NV 55.40 PLC 44.60

EUR1.00 Ordinary

Olivier van Noortlaan 120, 3133 AT Vlaardingen

Netherlands

Unilever BCS Sourcing Nederland B.V.*

NV 55.40 PLC 44.60

EUR1.00 Ordinary

Nassaukade 3, 3071 JL Rotterdam

Netherlands

Unilever Berran B.V.*

NV 100 PLC 0

EUR1.00 Ordinary

Netherlands

Unilever Canada Investments B.V.*

NV 64.55 PLC 35.45

EUR1.00 Ordinary

Netherlands

Unilever Caribbean Holdings B.V.*

NV 100 PLC 0

EUR1,800.00 Ordinary

Netherlands

Unilever Employee Benefits Management B.V.*

NV 0 PLC 100

NLG1,000.00 Ordinary

Netherlands

Unilever Employment Services B.V.*

NV 100 PLC 0

NLG1,000.00 Ordinary

Netherlands

Unilever Europe Business Center B.V.*

Netherlands

Unilever Finance International B.V.°*

Netherlands

Unilever Foodsolutions B.V.*

Netherlands

Unilever Global Services B.V.*

NV 100 PLC 0

EUR454.00 Ordinary

EUR1.00 Ordinary

Netherlands

Unilever Holdings B.V.*

NV 100 PLC 0

EUR454.00 Ordinary

Netherlands

Unilever Home & Personal Care Nederland
B.V.*

NV 100 PLC 0

EUR100.00 Ordinary

Netherlands

Unilever Indonesia Holding B.V.*

NV 64.55 PLC 35.45

EUR1.00 Ordinary

Netherlands

Unilever Insurances N.V.

NV 100 PLC 0

EUR454.00 Ordinary

Weena 455, 3013 AL Rotterdam

Netherlands

Unilever Nederland B.V.*

NV 100 PLC 0

EUR454.00 Ordinary

Nassaukade 5, 3071 JL Rotterdam

142

Unilever Annual Report and Accounts 2015Financial statements
27. GROUP COMPANIES CONTINUED

Country of
Incorporation
Netherlands

Name of
Undertaking
Unilever Nederland Foods Factories B.V.*

Netherlands

Unilever Netherlands Retail Operations B.V.*

Netherlands

Unilever NewCo 5 B.V.*

% holding
as between
NV/PLC
NV 100 PLC 0

NV 100 PLC 0

Class of share
held in subsidiary
undertaking
EUR46.00 ordinary

EUR1.00 Ordinary

Netherlands

Unilever Nederland Holdings B.V.°*

NV 100 PLC 0

EUR454.00 Ordinary

Registered
address
Nassaukade 5, 3071 JL Rotterdam

Weena 455, 3013 AL Rotterdam

Netherlands

Unilever Nederland Services B.V.*

NV 100 PLC 0

EUR460.00 Ordinary

Nassaukade 3, 3071 JL Rotterdam

Netherlands

Unilever Overseas Holdings B.V.*

NV 0 PLC 100

NLG1,000.00 Ordinary

Unilever House , 100 Victoria Embankment, London, EC4Y 0DY
(Registered Seat: Rotterdam)

Netherlands

Unilever Research and Development
Vlaardingen B.V.*

NV 100 PLC 0

EUR460.00 Ordinary

Olivier van Noortlaan 120, 3133 AT Vlaardingen

Netherlands

Unilever Turkey Holdings B.V.*

NV 64.55 PLC 35.45

EUR1.00 Ordinary

Netherlands

Unilever US Investments B.V.°*

NV 100 PLC 0

EUR1.00 Ordinary

Netherlands

Unilever Ventures Holdings B.V.

NV 100 PLC 0

EUR453.79 Ordinary

Netherlands

Univest Company B.V.

Netherlands

UNUS Holding B.V.*

NV 100 PLC 0

NV 100 PLC 0
NV 0 PLC 100
NV 0 PLC 0

EUR1.00 Ordinary

EUR0.10 Ordinary-A
EUR0.10 Ordinary-B
EUR0.10 Ordinary–B
Non-voting†

Netherlands

Verenigde Zeepfabrieken B.V.*

NV 100 PLC 0

NLG1,000.00 Ordinary

Weena 455, 3013 AL Rotterdam

Netherlands

Wemado B.V.°*

New Zealand

T2 NZ Limited

New Zealand

Unilever New Zealand Limited

New Zealand

Unilever New Zealand Superannuation
Trustee Limited

New Zealand

Unilever New Zealand Trading Limited

New Zealand

Ben & Jerry’s Franchising New Zealand
Limited

NV 100 PLC 0

NLG1,000.00 Ordinary

NV 0 PLC 100

NZD1.00 Ordinary

Level 4, 103 Carlton Gore Rd, Newmarket, Auckland 1023

NZD2.00 Ordinary

Level 4, 103 Carlton Gore Rd, Newmarket, Auckland 1023

NZD1.00 Ordinary

Level 4, 103 Carlton Gore Rd, Newmarket, Auckland 1023

NZD1.00 Ordinary

Level 4, 103 Carlton Gore Rd, Newmarket, Auckland 1023

NZD1.00 Ordinary

Level 4, 103 Carlton Gore Rd, Newmarket, Auckland 1023

Nicaragua

Unilever de Centroamerica S.A.

NV 100 PLC 0

NIC50.00 Ordinary

Km 11.5, Carretera Vieja a León, 800 Mts Norte, 100 Mts Este,
300 Mts Norte, Managua

54.56

58.55

Niger

Nigeria

Norway

Unilever Niger S.A.

Unilever Nigeria Plc

NV 0 PLC 54.56

XOF10,000.00 Ordinary

NV 0 PLC 58.55

NGN0.50 Ordinary

West Africa Popular Foods Nigeria Limited

NV 0 PLC 51

NGN1.00 Ordinary

BP 10272 Niamey

1 Billings Way, Oregun, Ikeja, Lagos

Unilever Norge AS

NV 100 PLC 0

NOK100.00 Ordinary

Martin Linges vei 25, Postbox 1, 1331 Fornebu

80.15

Norway

Froosh AS

NV 0 PLC 80.15

NOK100.00 Ordinary

Karl Johans Gate 2, Oslo, 0154

98.22

75.85

99.15
70.52

Pakistan

Palestine

Panama

Paraguay

Peru

Lever Associated Pakistan Trust (Private)
Limited

Lever Chemicals (Private) Limited

Sadiq (Private) Ltd

Unilever Birds Eye Foods Pakistan (Private)
Limited

NV 0 PLC 100

PKR10.00 Ordinary

Avari Plaza, Fatima Jinnah Road, Karachi – 75530

NV 0 PLC 98.22

PKR10.00 Ordinary

Avari Plaza, Fatima Jinnah Road, Karachi – 75530

NV 0 PLC 100

PKR10.00 Ordinary

Avari Plaza, Fatima Jinnah Road, Karachi – 75530

Unilever Pakistan Foods Limited

NV 42.02 PLC 33.83

PKR10.00 Ordinary

Avari Plaza, Fatima Jinnah Road, Karachi – 75530

Unilever Pakistan Limited

Unilever Market Development Company

Unilever Regional Services Panama S.A.

NV 0 PLC 99.15
NV 0 PLC 70.52

NV 0 PLC 100

NV 100 PLC 0

PKR50.00 Ordinary
PKR100.00 Preference

Avari Plaza, Fatima Jinnah Road, Karachi – 75530

ILS1.00 Ordinary

Ersal St. Awad Center P.O.B 3801 Al-Beireh, Ramallah

USD855.00 Ordinary Vía Transistmica, Milla 8, Parque Industrial, Local No. 6, Distrito
de San Miguelito, Provincia de Panamá

Unilever de Centroamerica, S.A.

NV 100 PLC 0

PAB2,595.00 Ordinary

4544 Río Salado N 316 y Río Montelindo, Villa Elisa

Unilever de Paraguay S.A.

Unilever Andina Perú S.A.

NV 100 PLC 0

PYG1,000,000.00 Ordinary

4544 Río Salado N 316 y Río Montelindo, Villa Elisa

NV 100 PLC 0

PEN1.00 Ordinary

Av. Paseo de la Republica 5895 OF. 401, Miraflores, Lima 18

Philippines

Metrolab Industries, Inc.

NV 64.55 PLC 35.45
NV 64.55 PLC 35.45

PHP1.00 Common
PHP10.00 Preference

Linares Road, Gateway Business Park, Gen. Trias, Cavite

Philippines

Unilever Philippines, Inc.

NV 64.55 PLC 35.45

PHP50.00 Common

1351 United Nations Avenue, Manila

Philippines

Unilever Philippines Body Care, Inc.

NV 64.55 PLC 35.45

PHP100.00 Common

Philippines

Unilever Philippines Manufacturing, Inc.

NV 64.55 PLC 35.45

PHP1.00 Common

Philippines

Unilever RFM Ice Cream, Inc.

NV 32.28 PLC 17.72

PHP1.00 Common-B

Poland

Unilever Polska Sp. z o.o.

Unilever Poland Services Sp. z o.o.

Unilever Polska S.A.

NV 0 PLC 100

PLN50.00 Ordinary

PLN10.00 Ordinary

Unilever BCS Polska Sp. z o.o.

NV 55.40 PLC 44.60

PLN50.00 Ordinary

Unilever BCS Polska Holding Sp. z o.o.

PLN50.00 Ordinary

11th Avenue corner 39th Street, Bonifacio Triangle, Bonifacio
Global City, Taguig City

Manggahan Light Industrial Compound, A. Rodriguez Avenue,
Bo. Manggahan, Pasig City

Jerozolimskie 134, 02-305, Warszawa

NV 0 PLC 100

NV 100 PLC 0

NV 99 PLC 0

USD100.00 Ordinary Professional Services Park 997, San Roverta St., Suite 7, San Juan

ROL0.10 Ordinary

ROL20.00 Ordinary

Ploiesti, 291 Republicii Avenue, Prahova County

Unilever South Central Europe S.A.

NV 99 PLC 0

ROL260.50 Ordinary

Ploiesti, 291 Republicii Avenue, Prahova County

NV 55.40 PLC 44.60

ROL10.00 Ordinary

Ploiesti, 291 Republicii Avenue, Prahova County

98.28

Russia

JLLC Tulskiy Khladokombinat

NV 9.81 PLC 88.47

RUR1.00 Ordinary

Inmarko Trade LLC

NV 9.98 PLC 90.02

Membership Interest

644031, 205, 10 let Oktyabrya, Omsk

300016, 78, Ostrovskogo Street, Tula

Russia

OOO Unilever Rus

NV 9.98 PLC 90.02

Membership Interest

123022, 13, Sergeya Makeeva Street, Moscow

Saudi Arabia

Binzagr Unilever Limitedx

NV 0 PLC 49

SAR1,000.00 Ordinary

P.O.Box 5694, Jeddah 21432

Scotland

Unilever Ventures (SLP) General Partner
Limited

NV 0 PLC 100

GBP1.00 Ordinary

15 Atholl Crescent, Edinburgh, EH3 8HA

Serbia

Unilever Beograd d.o.o.

NV 100 PLC 0

Membership Interest

Belgrade, Serbia, Omladinskih brigada 90b – Novi Beograd

143

Puerto Rico

Unilever de Puerto Rico, Inc°

Unilever Romania S.A.

Unilever Distribution SRL

Unilever BCS SCE SRL

Romania

Russia

Unilever Annual Report and Accounts 2015Financial statements
Spain

Spain

Sri Lanka

Sweden

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

27. GROUP COMPANIES CONTINUED

Country of
Incorporation
Singapore

Name of
Undertaking
Unilever Asia Private Limited

Singapore

Unilever Singapore Pte. Limited

% holding
as between
NV/PLC
NV 100 PLC 0

NV 0 PLC 100

Class of share
held in subsidiary
undertaking
SGD1.00 Ordinary

Registered
address
20 Pasir Panjang Road, #06-22 Mapletree Business City, 17439

SGD1.00 Ordinary 20 Pasir Panjang Road, #06-22 Mapletree Business City, 117439

Slovakia

Unilever BCS Slovensko, spol. s r.o.

NV 55.40 PLC 44.60

EUR1.00 Ordinary

Unilever Slovensko spol. s r.o.

NV 100 PLC 0

EUR1.00 Ordinary

Karadzicova 10, 821 08 Bratislava

74.25

South Africa

Nollsworth Park Properties (Pty) Limited

NV 11.21 PLC 63.04

South Africa

Unilever Market Development (Pty) Limited

NV 0 PLC 100

74.25

South Africa

Unilever South Africa (Pty) Limited

NV 11.21 PLC 63.04

ZAR2.00 Ordinary 15 Nollsworth Crescent, Nollsworth Park, La Lucia Ridge Office
Estate, La Lucia, 4051

ZAR1.00 Ordinary 15 Nollsworth Crescent, Nollsworth Park, La Lucia Ridge Office
Estate, La Lucia, 4051

ZAR2.00 Ordinary 15 Nollsworth Crescent, Nollsworth Park, La Lucia Ridge Office
Estate, La Lucia, 4051

South Africa

Unilever South Africa Holdings (Pty) Limited∆

74.25
0.02
0.009

NV 11.21 PLC 63.04
NV 0.005 PLC 0.015
NV 0.002 PLC 0.007

ZAR1.00 Ordinary
ZAR1.00 Ordinary-A
ZAR1.00 Ordinary-B

15 Nollsworth Crescent, Nollsworth Park, La Lucia Ridge Office
Estate, La Lucia, 4051

Intuiskin S.L.U.

NV 100 PLC 0

EUR1.00 Ordinary

Unilever BCS Spain, S.L.U.

NV 55.40 PLC 44.60

EUR1.00 Ordinary

Unilever Espana S.A.

Unilever HPC Industrial Espana S.L.U.

Unilever Services Espana S.A.

Unilever Foods Industrial Espana, S.L.U

Brooke Bond Ceylon Limited

Ceytea Limited

Lever Brothers (Exports and Marketing)
Limited°

Maddema Trading Co. Limited

Premium Exports Ceylon Limited

R.O. Mennell & Co. (Ceylon) Limited

Tea Estates Ceylon Limited

Unilever Ceylon Services Limited

Unilever Lipton Ceylon Limited

Unilever Sri Lanka Limited°

NV 100 PLC 0

NV 0 PLC 100

PA / Reding, 43, Izda 1, 29016 Malaga

C/ Tecnología 19, 08840 Viladecans

EUR48.00 Ordinary

EUR1.00 Ordinary

C/ Fuente de la Mora, 3-5-7-Edificio A, 3ª planta, 28050 Madrid

EUR60.00 Ordinary

EUR1.00 Ordinary

LKR100.00 Ordinary

LKR10.00 Ordinary

LKR2.00 Ordinary

LKR10.00 Ordinary

LKR100.00 Ordinary

LKR10.00 Ordinary

C/ Tecnología 19, 08840 Viladecans

C/ Felipe del Río, 14 – 48940 Leioa

258 M Vincent Perera Mawatha, Colombo 14

Webster Automatic Packeting Factory Limited

NV 0 PLC 100

LKR10.00 Ordinary

258 M Vincent Perera Mawatha, Colombo 14

William Gossage & Sons (Ceylon) Limited

NV 0 PLC 100

LKR10.00 Ordinary

258 M Vincent Perera Mawatha, Colombo 14

Alberto Culver AB

NV 55.40 PLC 44.60

SEK100.00 Ordinary

Box 1056, Svetsarevaegen 15, 17122, Solna

Unilever BCS Sourcing Sweden AB

NV 55.40 PLC 44.60

Unilever BCS Sweden AB

NV 55.40 PLC 44.60

NV 100 PLC 0

NV 0 PLC 81.61
NV 0 PLC 24.90

NV 0 PLC 80.15

SEK1.00 Ordinary

SEK100.00 Ordinary

SEK50.00 Ordinary

SEK100.00 Ordinary

SEK0.10–A
SEK0.10–B

SEK100.00–A

Box 1056, Svetsarevaegen 15, 17122, Solna

Hammarby Kaj 24, Stockholm, 120 62

NV 100 PLC 0

CHF100.00 Ordinary

Chemin Frank-Thomas 34, 1208 Genève

Unilever Holding AB

Unilever Produktion AB

Unilever Sverige AB

Froosh AB∆

81.61
24.90

80.15

Sweden

Froosh Sverige AB

Switzerland

Intuiskin SARL

Switzerland

Knorr-Nährmittel AG

NV 100 PLC 0

CHF1,000.00 Ordinary

Bahnhofstrasse 19, CH 8240 Thayngen

Switzerland

Oswald Nahrungsmittel GmbH

NV 100 PLC 0

CHF1,000.00 Ordinary

Hinterbergstr. 30, CH-6312 Steinhausen

Switzerland

Unilever ASCC AG

NV 100 PLC 0

CHF1,000.00 Ordinary

Spitalstrasse 5, 8200, Schaffhausen

Switzerland

Unilever BCS Schweiz GmbH

NV 55.40 PLC 44.60

CHF1.00 Ordinary

Bahnhofstrasse 19, CH-8240 , Thayngen

Switzerland

Unilever Business and Marketing Support AG

NV 100 PLC 0

CHF1,000.00 Ordinary

Switzerland

Unilever Finance International AG

NV 100 PLC 0

CHF1,000.00 Ordinary

Switzerland

Unilever Overseas Holdings AG

NV 0 PLC 100

CHF1,000.00 Ordinary

Switzerland

Unilever Reinsurance AG

NV 100 PLC 0

CHF1,000.00 Ordinary

Spitalstrasse 5, 8200 Schaffhausen

Spitalstrasse 5, 8200, Schaffhausen

Baarerstrasse 75, CH-6302 Zug

Switzerland

Unilever Schaffhausen Service AG

NV 100 PLC 0

CHF1,000.00 Ordinary

Spitalstrasse 5, 8200, Schaffhausen

Switzerland

Unilever Schweiz GmbH

NV 100 PLC 0

CHF1,000.00 Ordinary

Bahnhofstrasse 19, CH-8240 Thayngen

Switzerland

Unilever Supply Chain Company AG

NV 100 PLC 0

CHF1,000.00 Ordinary

Switzerland

Unilever Swiss Holdings AG

NV 100 PLC 0

CHF1,000.00 Ordinary

Spitalstrasse 5, 8201, Schaffhausen

Spitalstrasse 5, 8200, Schaffhausen

99.92

Taiwan

Unilever Taiwan Limited

NV 64.50 PLC 35.42

TWD10.00 Ordinary 3F., No. 550, Sec. 4, Zhongxiao East Rd., Xinyi District, Taipei City

Tanzania

Thailand

50.01

Trinidad &
Tobago

Distan Limited

UAC of Tanzania Limited

Uniafric Trust Tanzania Limited

Unilever Tanzania Limited

Unilever Tea Tanzania Limited

NV 0 PLC 100

TZS20.00 Ordinary

Plot NO.4A Pugu Road, Dar Es Salaam

Plot No.4A Pugu Road, Dar Es Salaam

Plot 4A Nyerere Road, Dar Es Salaam

P.O. Box 40, Mufindi

Unilever Thai Holdings Limited

NV 64.55 PLC 35.45

THB100.00 Ordinary

161 Rama 9 Road, Huay Kwang, Bangkok 10310

Unilever Thai Services Limited

NV 64.55 PLC 35.45

THB100.00 Ordinary

161 Rama 9 Road, Huay Kwang, Bangkok 10310

Unilever Thai Trading Limited

NV 64.55 PLC 35.45

THB100.00 Ordinary

161 Rama 9 Road, Huay Kwang, Bangkok 10310

Unilever Caribbean Limited

NV 0 PLC 50.01

TTD1.00 Ordinary

Eastern Main Road, Champs Fleurs

97.61

Tunisia

Unilever Tunisia S.A.

NV 97.61 PLC 0

TND6.00 Ordinary

Z.I. Voie Z4-2014 Mégrine Erriadh – Tunis

144

Unilever Annual Report and Accounts 2015Financial statements
27. GROUP COMPANIES CONTINUED

%
99.98

Country of
Incorporation
Tunisia

Name of
Undertaking
Unilever Maghreb Export S.A.

Tunisia

UTIC Distribution S.A.x

% holding
as between
NV/PLC
NV 99.98 PLC 0

Class of share
held in subsidiary
undertaking
TND5.00 Ordinary

Registered
address
Voie Z4-2014 Mégrine Erriadh – Tunis

NV 49 PLC 0

TND10.00 Ordinary

Z.I. Voie Z4 , Megrine Riadh, Tunis, 2014

99.96

Turkey

Unilever Gida Sanayi ve Ticaret AŞ°

NV 0.05 PLC 99.91

TRY0.01 Ordinary

99.98

Turkey

Unilever Sanayi ve Ticaret Türk AŞ°

NV 64.54 PLC 35.44

TRY0.01 Ordinary

99.99

Turkey

Besan Besin Sanayi ve Ticaret AŞ

NV 64.55 PLC 35.44

TRY0.01 Ordinary

99.64

Turkey

Dosan Konserve Sanayi ve Ticaret AŞ

NV 64.32 PLC 35.32

TRY0.01 Ordinary

Saray Mahallesi Dr. Adnan Büyükdeniz Cad. No.13 34768
Ümraniye – İstanbul

Uganda

Ukraine

United Arab
Emirates

Unilever Uganda Limited

NV 0 PLC 100

UGX20.00 Ordinary Plot 10/12 Nyondo Close, Industrial Area, P.O. Box 3515 Kampala

Pallada Ukraine LLC

Unilever Ukraine LLC

Severn Gulf FZCOx

NV 100 PLC 0

Membership Interest

NV 100 PLC 0

Membership Interest

NV 50 PLC 0

AED1,000,000.00 Ordinary

04119, 27-T, Dehtyarivska Str., Kyiv

PO Box 17053, Jebel Ali, Dubai

Unilever General Trading LLCx

NV 0 PLC 49

AED1,000.00 Ordinary

Parcel ID 598633, German Emarati Business Centre, Dubai
Complex for Investment First, Office BC6, Dubai

Unilever Gulf FZE

NV 0 PLC 100

AED1,000.00 Ordinary

P.O.Box 17055, Jebel Ali, Dubai

Unilever Trading LLCx

NV 49 PLC 0

AED1,000.00 Ordinary

P.O.Box 18221 European Business Center Dubai Investments
Park 1

United States

ACI Brazil Holdings, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

ACUSA Brazil Holdings, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Alberto Share Holdings LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Alberto-Culver Company

NV 55.40 PLC 44.60

No Par Value Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Alberto-Culver International, Inc

NV 55.40 PLC 44.60

USD1.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Alberto-Culver (P.R.), Inc

NV 55.40 PLC 44.60

USD1.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Alberto-Culver USA, Inc

NV 55.40 PLC 44.60

No Par Value Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Ben & Jerry’s Franchising, Inc

NV 55.40 PLC 44.60

USD1.00 Common

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Ben & Jerry’s Gift Card, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Ben & Jerry’s Homemade, Inc

NV 55.40 PLC 44.60

USD0.01 Common

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Bestfoods International (Holdings) Inc

NV 55.40 PLC 44.60

USD100.00 Common

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Carapina LLC

NV 100 PLC 0

Membership Interest

233 Bleecker Street, New York, 10014

United States

Chesebrough-Pond’s Manufacturing
Company

NV 55.40 PLC 44.60

No Par Value Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Conopco, Inc

NV 55.40 PLC 44.60

USD1.00 Common

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Dermalogica Academy, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Dermalogica, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

DTJJS, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Grom Columbus LLC

United States

Grom Franchising LLC

United States

Grom Malibu LLC

United States

Grom USA LLC

United States

Hollywood LLC

United States

Intuiskin Inc

NV 100 PLC 0

Membership Interest

233 Bleecker Street, New York, 10014

NV 100 PLC 0

Membership Interest

2711 Centerville Road, Suite 400, Wilmington, Delaware

NV 100 PLC 0

Membership Interest

NV 100 PLC 0

Membership Interest

NV 100 PLC 0

Membership Interest

NV 100 PLC 0

No Par Value Ordinary

233 Bleecker Street, New York, 10014

55 East 59th Street, New York, 10022

United States

International Dermal Institute, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Kate Somerville Holdings, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Kate Somerville Skincare LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Lipton Industries, Inc.

NV 55.40 PLC 44.60

USD1.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Murad LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Old Pro International, Inc

NV 55.40 PLC 44.60

USD1,000.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Pantresse, Inc

United States

Ren USA Inc

NV 55.40 PLC 44.60

USD120.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

NV 0 PLC 100

No Par Value Common

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Skin Health Experts, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Spatula LLC

NV 100 PLC 0

Membership Interest

233 Bleecker Street, New York, 10014

United States

St. Ives Laboratories, Inc

NV 55.40 PLC 44.60

USD0.01 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

T2 US LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Talenti Gelato, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Talenti Holdings, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

TIGI Linea Corp

NV 55.40 PLC 44.60

No Par Value Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever AC Canada Holding, Inc

NV 55.40 PLC 44.60

USD10.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever BCS Sourcing US Inc

NV 55.40 PLC 44.60

USD1.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever BCS US Inc

NV 55.40 PLC 44.60

USD1.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever Bestfoods (Holdings) LLC

NV 25.10 PLC 74.90

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever Capital Corporation

NV 55.40 PLC 44.60

USD1.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever Illinois Manufacturing, LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever Manufacturing (US), Inc

NV 55.40 PLC 44.60

USD1.00 Ordinary

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever Trumbull Holdings, Inc

NV 42.54 PLC 57.46

USD1.00 Common

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever Trumbull Research Services, Inc

NV 55.40 PLC 44.60
NV 55.40 PLC 44.60

USD1.00 Ordinary
USD1.00 Cumulative
Redeemable Preference

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever United States Foundation, Inc

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

145

Unilever Annual Report and Accounts 2015Financial statements
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
UNILEVER GROUP CONTINUED

27. GROUP COMPANIES CONTINUED

Country of
Incorporation
United States

Name of
Undertaking
Unilever United States, Inc

% holding
as between
NV/PLC
NV 55.40 PLC 44.60

Class of share
held in subsidiary
undertaking
USD0.3333 Common

Registered
address
700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

United States

Unilever Ventures Advisory LLC

NV 55.40 PLC 44.60

Membership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

Uruguay

Unilever del Uruguay S.R.L.

Unilever Uruguay SCC S.A.

Lever S.A.

NV 100 PLC 0

UYU1.00 Ordinary

UYP0.10 Ordinary

Arisco Productos Alimenticios Uruguay S.A.

NV 64.55 PLC 35.45

UYP1.00 Ordinary

Camino Carrasco 5975, Montevideu

Camino Carrasco 5976, Montevideu

Camino Carrasco 5977, Montevideu

Camino Carrasco 5978, Montevideu

Venezuela

Unilever Andina Venezuela S.A.

NV 100 PLC 0

VEB1,000.00 Ordinary Edificio Torre Corp Banca, Piso 15, entre Avenidas Blandín y Los
Chaguaramos, Urbanización La Castellana, Caracas

Vietnam

Unilever Vietnam International Company
Limited

NV 100 PLC 0

Membership Interest

Zambia

Unilever South East Africa Zambia Limited

NV 0 PLC 100

Zimbabwe

Unilever – Zimbabwe (Pvt) Limited∆

NV 0 PLC 100

ZMK2.00 Cumulative
Redeemable Preference
ZMK2.00 Ordinary

ZWD2.00 Ordinary

Lot A2-3, Tay Bac Cu Chi Industry Zone, Tan An Hoi Ward, Cu Chi
District, Ho Chi Minh City

Stand No. 7136, Mwembeshi Road, P.O.Box 31953 Lusaka

Box 950 Harare

SUBSIDIARY UNDERTAKINGS NOT INCLUDED IN THE CONSOLIDATION

Country of
Incorporation

Name of
Undertaking

Ecuador

Ghana

Visanuasa S.A.

United Africa Trust Limited

% holding
as between
NV/PLC

NV 100 PLC 0

NV 0 PLC 100

Class of share
held in subsidiary
undertaking

USD1.00 Ordinary

GHC10.00 Ordinary

67.21

India

Hindustan Unilever Foundation

NV 0 PLC 67.21

INR10.00 Ordinary

Jamaica

Unilever Jamaica Limited

NV 0 PLC 100

JMD1.00 Ordinary

Kenya

Morocco

Union East African Trust Limited*

Societe Commerciale du Rif

Societe Tangeroise de Parfumerie et
d’Hygiene S.A.R.L.

NV 0 PLC 100

KES20.00 Ordinary

MAD50.00 Ordinary

Registered
address

Km 25 Vía a Daule, Guayaquil

Plot No. Ind/A/3A–4, Heavy Industrial Area, Tema

Unilever House, B. D. Sawant Marg, Chakala, Andheri (E),
Mumbai 400 099

White Marl Street, Spanish Town, PO Box 809, Parish Saint
Catherine

Commercial Street, P.O. BOX 40592-00100, Nairobi

Km 10, Route Cotiere, Ain Sebaa, Casablanca

Rwanda

Unilever Tea Rwanda Limited

NV 0 PLC 100

RWF1,000.00 Ordinary

Nyarugenge, Umujyi Wa, Kigali

United Arab
Emirates

Unilever Home & Personal Care Products
Manufacturing LLCx

PLC 49 NV 0

AED1,000.00 Ordinary

P.O.Box 18221 European Business Center Dubai Investments
Park 1

Zimbabwe

Birds Eye Foods (Private) Limited

Zimbabwe

Hudson and Knight (Private) Limited

NV 0 PLC 100

ZWD2.00 Ordinary

Zimbabwe

Van den Berghs and Jurgens (Private) Limited

NV 0 PLC 100

ZWD2.00 Ordinary

ASSOCIATED UNDERTAKINGS

Country of
Incorporation

Name of
Undertaking

% holding
as between
NV/PLC

Class of share
held in associated
undertaking

Box 950 Harare

Registered
address

Bahrain

Brazil

Canada

Unilever Bahrain Co. W.L.L.

ITB Ice Tea do Brazil Ltda

NV 0 PLC 49

BHD50.00 Ordinary

161, Road 328, Block 358, Zinj, Manama

NV 32.28 PLC 17.72

BRL1.00 Quotas

Rod. Dom Gabriel Paulino Bueno Couto, km. 66 – Part

A&W Root Beer Beverages Canada Inc.

NV 25.82 PLC 14.18

No Par Value Class B
Common

171 West Esplanade, Suite 300, North Vancouver, British
Colombia V7M 3K9

Cyprus

Unilever PMT Limited∆

NV 0 PLC 49

EUR1.71 Ordinary-B

2 Marcou Dracou str., Engomi Industrial Estate, 2409 Nicosia

Arecor Limited∆◊

Big Sync Music Limited∆◊

Catexel Limited∆◊

Chemsenti Limited∆◊

Cequus Limited∆◊

NV 0 PLC 24.22
NV 0 PLC 41.45

GBP0.01 Ordinary
GBP0.10 A Ordinary

NV 67.39 PLC 0
NV 100 PLC 0

GBP0.001 A Ordinary
GBP1.00 Preferred Ordinary

NV 0 PLC 97.67
NV 0 PLC 45.25
NV 0 PLC 96.65

GBP0.01 Ordinary-A
GBP0.01 Ordinary-G
GBP0.01 Preference

2 Cambridge Science Park, Cambridge, Cambridgeshire, CB4 0FE

5th Floor 6 St Andrew Street, London, EC4A 3AE

NV 0 PLC 79.51

GBP0.001 A Ordinary

5th Floor 6 St Andrew Street, London, EC4A 3AE

NV 0 PLC 79.19

GBP0.001 A Ordinary

5th Floor 6 St Andrew Street, London, EC4A 3AE

CDDM Technology Limited∆◊

NV 0 PLC 50 GBP0.01 Preferred Ordinary

5th Floor 6 St Andrew Street, London, EC4A 3AE

Langholm Capital II L.P

NV 46.3 PLC 0

Partnership Interest

1st Floor Charles House, 5-11 Regent Street, London, SW1Y 4LR

P2i Limited∆◊

Parogle Technologies Limited∆◊

SCA Investments Limited∆◊

Voltea Limited∆◊

England and
Wales

Insense Limited◊

NV 12.89 PLC 0
NV 50 PLC 0

GBP0.0001 Ordinary
GBP1.00 N Ordinary

NV 0 PLC 98.97
NV 0 PLC 98.96

GBP0.001 Ordinary-A
GBP0.001 Preferred Ordinary

NV 74.60 PLC 0
NV 25.19 PLC 0

NV 0 PLC 22.21
NV 0 PLC 58.32
NV 0 PLC 25.41
NV 0 PLC 15.32

NV 0 PLC 25.9

GBP0.001 H Ordinary
GBP0.001 I Ordinary

EUR0.10 A Ordinary
EUR0.10 Preferred
EUR0.10 A1 Preferred
EUR0.10 B Preferred

GBP0.001 Ordinary

127 North Milton Park, Abingdon, Oxfordshire OX14 4SA

5th Floor 6 St Andrew Street, London, EC4A 3AE

Unit 3 Morris House, Swainson Road, London, England, W3 7UP

Unilever House, 100 Victoria Embankment, London, EC4Y 0DY

Colworth Park, Sharnbrook, Bedford, MK44 1LQ

England and
Wales

24.22
41.45

67.39
100

97.67
45.25
96.65

79.51

79.19

46.3

12.89
50

98.97
98.96

74.60
25.19

22.21
58.32
25.41
15.32

25.9

146

Unilever Annual Report and Accounts 2015Financial statements

27. GROUP COMPANIES CONTINUED

%
%
49.99

Country of
Country of
Incorporation
Incorporation
France

Name of
Name of
Undertaking
Undertaking
Relais D’or Centrale S.A.S.

% holding
% holding
as between
as between
NV/PLC
NV/PLC
NV 32.27 PLC 17.72

Class of share
Class of share
held in associated
held in subsidiary
undertaking
undertaking
No Par Value Ordinary

Hans Henglein & Sohn GmbH

NV 32.78 PLC 17.22

EUR100,000.00 Ordinary

Henglein & Co. Handels-und Beteiligungs
GmbH & Co. KG◊

NV 32 PLC 18

Partnership Interest

Registered
Registered
address
address
7 rue Armand Peugeot, 92500 Rueil-Malmaison

Beerbachstraße 19, 91183 Abenberg

Henglein Geschäftsführungs GmbH◊

NV 32 PLC 18

DEM 50,000.00 Ordinary

Beerbachstraße 19, 91183 Abenberg

Henglein GmbH◊

NV 32 PLC 18

DEM 50,000.00 Ordinary

Bad Bribaer Straße, 06647 Klosterhäseler

Hochreiter Frischteigwaren GmbH

NV 32.78 PLC 17.22

DEM250,000.00 Ordinary

Beerbachstruße 37, 17153 Stavenhagen

33.61

India

Kimberly Clark Lever Private Limited◊

NV 0 PLC 33.61

INR10.00 Ordinary

Nürnberger Kloßteig NK GmbH & Co. KG◊

NV 32 PLC 18

Partnership Interest

Beerbachstraße 19, 91183 Abenberg

GAT No. 934-937, Village Sanaswadi

Indonesia

PT Anugrah Mutu Bersama

NV 26.22 PLC 13.78

IDR1,000,000.00 Ordinary

Wisma Bongo, JL, Sulaiman No. 32, Jakarta 11540

Germany

51.78
70.38

21.38

19.99

Ireland

Brandtone Holdings Limited∆◊

Ireland

Pepsi Lipton International Limited∆

Israel

Japan

Jersey

42.8

Iluminage Beauty Limited∆

Grom Japan K.K◊

NV 51.78 PLC 0
NV 70.38 PLC 0

NV 21.38 PLC 0

NV 19.99 PLC 0

NV 100 PLC 0
NV 100 PLC 0
NV 100 PLC 0
NV 100 PLC 0

NV 100 PLC 0

EUR0.001 A Ordinary
EUR0.001 Preferred
Ordinary
EUR0.001 Series 2
Preferred Ordinary
EUR0.001 Series 3
Preferred Ordinary

EUR1.00 B Ordinary
EUR1.00 C Preferred
EUR1.00 E Ordinary
EUR1.00 G Preferred

ILS1.00 Preference

51-54 Pearse Street, Dublin 2

70 Sir John Rogersons Quay, Dublin 2

Kochav Yokneam Building, 4th Floor, P.O Box 14, Yokneam Illit
20692

NV 34 PLC 0

JPY50,000.00 Ordinary

#308, 5–4–1, Minami Azabu, Tokyo

Snog Pure Frozen Yoghurt Limited∆◊

NV 0 PLC 42.8

GBP0.001 Preferred
Ordinary

Equity Trust House, 28-30 The Parade, St Helier, Jersey JE1 1EQ

40.4

Mauritius

Capvent Asia Consumer Fund Limited∆

NV 40.4 PLC 0

USD0.01 Class A

3rd Floor, Harbour Front Building, President John Kennedy
Street, Port Louis

Oman

Towell Unilever LLC

NV 0 PLC 49

OMR10.00 Ordinary

Po Box 1711, Ruwi, Postal code 112

Philippines

Sto Tomas Paco Land Corp∆◊

NV 64.55 PLC 35.45

PHP1.00 Common

Philippines

WS Holdings Inc.∆◊

NV 64.55 PLC 35.45

PHP1.00 Common B

Philippines

Selecta Walls Land Corp∆◊

NV 64.55 PLC 35.45

PHP10.00 Common B

Philippines

Paco Platform 7.5 Inc.∆◊

NV 64.55 PLC 35.45

PHP1.00 Common

11th Avenue corner 39th Street, Bonifacio Triangle, Bonifacio
Global City, Taguig City, M.M

Manggahan Light Industrial Compound, Bo. Manggahan, Pasig
City

11th Avenue corner 39th Street, Bonifacio Triangle, Bonifacio
Global City, Taguig City, M.M

35.10

Philippines

Cavite Horizons Land, Inc.◊

NV 22.66 PLC 12.44
NV 64.55 PLC 35.45

PHP1.00 Common
PHP10,000.00 Preference

11th Avenue corner 39th Street, Bonifacio Triangle, Bonifacio
Global City, Taguig City

45.4

Philippines

Industrial Realties, Inc.◊

NV 29.30 PLC 16.1

PHP1.00 Common

11th Avenue corner 39th Street, Bonifacio Triangle, Bonifacio
Global City, Taguig City

Portugal

United Arab
Emirates

Fima Ola – Produtos Alimentares, S.A.

NV 0 PLC 55

EUR500.00 Ordinary

Largo Monterroio Mascarenhas, 1,1099–081 Lisboa

Gallo Worldwide Lda

NV 0 PLC 55

EUR1,000,000.00 Quotas

Largo Monterroio Mascarenhas, 1,1099–081 Lisboa

Transportadora Central do Infante, Limitada

NV 0 PLC 54

EUR1.00 Ordinary

Largo Monterroio Mascarenhas, 1,1099–081 Lisboa

Unilever Jerónimo Martins, Lda

NV 0 PLC 55

EUR26,295,157.00 Quotas

Largo Monterroio Mascarenhas, 1,1099–081 Lisboa

Victor Guedes – Industria e Comercio, S.A.

NV 0 PLC 55

EUR5.00 Ordinary

Largo Monterroio Mascarenhas, nº 1,1070-184 Lisboa

Al Gurg Unilever LLC

NV 0 PLC 49

AED1,000.00 Ordinary

Thani Murshid Unilever LLC

NV 49 PLC 0

AED1,000.00 Ordinary

P.O.Box 49, Dubai

Po Box 49, Abu Dhabi

United States

Pepsi Lipton Tea Partnership

NV 27.70 PLC 22.30

Partnership Interest

700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201

57.27

United States

Physic Ventures L.P.◊

NV 57.27 PLC 0

Partnership Interest

2711 Centerville Road, Suite 400, Wilmington, Delaware

Notes:
* Indicates an undertaking for which Unilever N.V. has issued a declaration of assumption of liability in accordance with section 403, Book 2, Dutch Civil Code.
o Indicates an undertaking directly held by N.V. or PLC. All other undertakings are indirectly held. In the case of Hindustan Unilever Limited 51.50% is directly
held and the remainder of 15.71% is indirectly held. In the case of Unilever Kenya Limited 39.13% is directly held and the remainder of 60.87% is indirectly
held. In the case of Unilever Sri Lanka Limited 5.49% is directly held and the remainder of 94.51% is indirectly held. In the cases of each of Unilever BCS UK
Services Limited and Unilever BCS UK Limited the ordinary shares are indirectly held and the redeemable golden share is directly held. In the case of Mixhold
B.V. 27.71% is directly held and the remainder of 72.29% is indirectly held. In the cases of each of Unilever Gida Sarayi ve Ticaret A.Ş. and Unilever Sarayi ve
Ticaret Turk A.Ş. a fractional amount is directly held and the remainder is indirectly held. In the case of United Holdings Limited, the ordinary shares are
directly held and the preferred shares are indirectly held. In the case of Mixhold N.V., 55.37% of the ordinary – A shares are directly held, the remainder of
44.63% are indirectly held and the other share classes are indirectly held. In the case of Naamlooze Vernootschap Elma the ordinary shares are directly held
and the cumulative preference shares are indirectly held.
† Shares the undertaking holds in itself.
∆ Denotes an undertaking where other classes of shares are held by a third party.
X Unilever Trading LLC, Binzagr Unilever Limited, Unilever Home and Personal Care Products Manufacturing LLC and UTIC Distribution S.A. are subsidiary
undertakings pursuant to section 1162(2)(b) Companies Act 2006. Servern Gulf FZCO is a subsidiary undertaking pursuant to section 1162(4)(a) Companies Act
2006. The Unilever Group is entitled to 50% of the profits made by Binzagr Unilever Limited. The Unilever Group is entitled to 80% of the profits made by
Unilever Trading LLC, Unilever Home and Personal Care Products Manufacturing LLC and Unilever General Trading LLC.
◊ Accounted for as non-current investments within non-current financial assets.

Further to the above disclosures (1) due to the unified board of Unilever N.V. and Unilever PLC, Unilever N.V. and Unilever PLC are each
considered to be a subsidiary undertaking of the other in accordance with section 1162 (4) (b) of the Companies Act 2006 and (2) details
of holdings of subsidiary undertakings in the share capitals of Unilever N.V. and Unilever PLC are given under the heading Our Shares
on pages 47 and 48.

The Group has established branches in a number of countries in which it operates including China, the Dominican Republic, Kazakhstan,
the Netherlands, the Philippines, Saudi Arabia, Slovenia and Turkey.

147

Unilever Annual Report and Accounts 2015Financial statements

COMPANY ACCOUNTS
UNILEVER N.V.

BALANCE SHEET
AS AT 31 DECEMBER

Assets
Non-current assets
Intangible assets
Investments in subsidiaries
Other non-current assets

Current assets

Trade and other current receivables
Cash and cash equivalents

Total assets

Liabilities
Current liabilities
Trade payables and other current liabilities
Provisions

Non-current liabilities
Financial liabilities
Pensions and similar obligations
Provisions
Deferred tax liabilities

Total liabilities

Equity
Shareholders’ equity
Called up share capital
Share premium
Legal reserves
Other reserves
Retained profit

Shareholders’ equity / total equity

Total liabilities and equity

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER

Income from fixed investments after taxation
Other income and expenses

Profit for the year

€ million

Notes

2015

€ million
Restated
2014

1
2
3

4
5

6
9

7
8
9
9

11
12
13
14
15

2,031
29,260
2,766

34,057

2,479
3

2,482

1,274
29,240
782

31,296

4,462
5

4,467

36,539

35,763

24,161
5

24,166

2,850
99
3
92

3,044

27,210

275
20
16
(3,339)
12,357

9,329

26,181
9

26,190

864
117
4
77

1,062

27,252

275
20
16
(3,325)
11,525

8,511

36,539

35,763

€ million

2015

1,751
908

2,659

€ million
Restated
2014

2,064
166

2,230

Notes

For the information required by Article 2:392 of the Dutch Civil Code, refer to pages 85 to 89 and 154. Pages 149 to 153 are part of the
notes to the Unilever N.V. company accounts.

The company accounts of Unilever N.V. are included in the consolidated accounts of the Unilever Group. Therefore, and in accordance
with Article 2:402 of the Dutch Civil Code, the profit and loss account only reflects the income from fixed investments after taxation and
other income and expenses after taxes.

148

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE COMPANY ACCOUNTS
UNILEVER N.V.

ACCOUNTING INFORMATION AND POLICIES

BASIS OF PREPARATION
The company accounts of Unilever N.V. (the Company) were
prepared on the going concern basis and comply in all material
respects with legislation in the Netherlands. As allowed by
Article 2:362.1 of the Dutch Civil Code, the company accounts are
prepared in accordance with Financial Reporting Standard 101
‘Reduced Disclosure Framework’ (FRS 101), unless such
standards conflict with the Civil Code in the Netherlands which
would in such case prevail.

The accounts are prepared under the historical cost convention,
except for the revaluation of financial assets classified as
‘available-for-sale’ or ‘fair value through profit or loss’, as well as
derivative financial instruments, which are reported in accordance
with the accounting policies set out below. These have been
consistently applied to all periods presented and in preparing an
opening FRS 101 balance sheet at 1 January 2014 for the purposes
of the transition to FRS 101.

On transition to FRS 101, the Company has applied the
requirements of paragraphs 6-33 of IFRS 1 ‘First time adoptions
of International Financial Reporting Standards’. Transition tables
showing all material adjustments are disclosed in note 21.
The accounting policies which follow set out those policies which
apply in preparing the financial statements for the year ended
31 December 2015.

FINANCIAL INSTRUMENTS
The Company’s accounting policies are the same as the Unilever
Group’s accounting, namely International Accounting Standard 32
‘Financial Instruments: Presentation’ (IAS 32), IAS 39 ‘Financial
Instruments: Recognition and Measurement’ and IFRS 7 ‘Financial
Instruments: Disclosures’. The policies are set out under the
heading ‘Capital and funding’ in note 15 to the consolidated
accounts on pages 115 and 116. Unilever N.V. is taking the
exemption for financial instruments disclosures, because
IFRS 7 disclosures are given in notes 15 to 18 to the consolidated
accounts on pages 115 to 129.

DEFERRED TAXATION
Deferred tax is recognised using the liability method on taxable
temporary differences between the tax base and the accounting
base of items included in the balance sheet of the Company.
Certain temporary differences are not provided for as follows:
• The initial recognition of assets or liabilities that affect

neither accounting nor taxable profit; and

• Differences relating to investments in subsidiaries

to the extent that they will probably not reverse in the
foreseeable future.

The amount of deferred tax provided is based on the expected
manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted, or substantively
enacted, at the year end.

Unilever N.V. is included within the consolidated financial
statements of the Group. The consolidated financial statements of
the Group are prepared in accordance with International Financial
Reporting Standards as issued by the IASB and as adopted by the
European Union.

A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against which
the asset can be utilised. Deferred tax assets are reduced to the
extent that it is no longer probable that the related tax benefit will
be realised.

As permitted by FRS 101, the Company has taken advantage of the
disclosure exemptions available under that standard in relation to
share based payments, financial instruments, capital management,
presentation of comparative information in respect of certain
assets, presentation of a cash flow statement, standards not yet
effective, impairment of assets and related party transactions.
Where required equivalent disclosures are given in the group
accounts of Unilever, which are available within this report.

ACCOUNTING POLICIES
The principal accounting policies are as follows:

INTANGIBLE ASSETS
Finite life intangible assets mainly comprise know-how and
software. These assets are capitalised and amortised on a straight
line basis in the income statement over the period of their expected
useful lives. None of the amortisation periods exceed 20 years.
There are no assets where the useful life cannot be reliably
determined. Indefinite life intangible assets mainly comprise
trademarks and brands. These assets are capitalised at cost but
not amortised. They are subject to review for impairment annually,
or more frequently if events or circumstances indicate this
necessary. Any impairment is charged to the income statement
as it arises.

INVESTMENTS IN SUBSIDIARIES
Shares in group companies are stated at amortised cost less any
amounts written off to reflect a permanent impairment. Any
impairment is charged to the profit and loss account as it arises.

SHARES HELD BY EMPLOYEE SHARE TRUSTS
Shares held to satisfy options are accounted for in accordance
with IAS 32 ‘Financial Instruments: Presentation’ and Standards
Interpretation Committee 12 ‘Consolidation of Special Purpose
Entities’ (SIC 12). All differences between the purchase price
of the shares held to satisfy options granted and the proceeds
received for the shares, whether on exercise or lapse, are charged
to reserves.

RETIREMENT BENEFITS
Unilever N.V. is the sponsoring employer to a number of pension
schemes. There are formal agreements in place for how the
contributions to be paid are split between participating companies.
In line with this stated policy, Unilever N.V. recognises the assets
and liabilities of the schemes of which it is a sponsoring employer
in full on the N.V. balance sheet. The recovery of contributions
from other employing entities is in line with the existing
agreements that are already in place.

Unilever N.V. has accounted for pensions and similar benefits
under IAS 19R ‘Employee Benefits’. The operating and financing
costs of defined benefit plans are recognised separately in the
profit and loss account; service costs are systematically spread
over the service lives of employees, and financing costs are
recognised in the periods in which they arise. Variations from
expected costs, arising from the experience of the plans or
changes in actuarial assumptions, are recognised immediately
in equity. The costs of individual events such as past benefits,
enhancements, settlements and curtailments are recognised
immediately in the profit and loss account. The liabilities and,
where applicable, the assets of defined benefit plans are
recognised at fair value in the balance sheet. The charges to the
profit and loss account for defined contribution plans are Unilever
N.V. contributions payable and the assets of such plans are not
included in Unilever N.V.’s balance sheet.

149

Unilever Annual Report and Accounts 2015Financial statementsNOTES TO THE COMPANY ACCOUNTS
UNILEVER N.V. CONTINUED

DIVIDENDS
Under IAS 10 ‘Events after the Balance Sheet Date’, proposed
dividends do not meet the definition of a liability until such time as
they have been approved by shareholders at the Annual General
Meeting. Therefore, we do not recognise a liability in any period for
dividends that have been proposed but will not be approved until
after the balance sheet date. This holds for external dividends as
well as intra-group dividends paid to the parent company.

TAXATION
Unilever N.V., together with certain of its subsidiaries, is part of a
tax grouping for Dutch corporate income tax purposes. Unilever
N.V. is the head of the fiscal unity. The members of the fiscal entity
are jointly and severally liable for any taxes payable by the Dutch
tax grouping.

PROVISIONS
Provisions are recognised where a legal or constructive obligation
exists at the balance sheet date, as a result of a past event, where
the amount of the obligation can be readily estimated and where
the outflow of economic benefit is probable.

FINANCIAL GUARANTEES
Where the Company enters in financial guarantee contracts to
guarantee the indebtedness of other companies within its group,
the Company considers these to be insurance arrangements and
accounts for them as such. In this respect, the Company treats the
guarantee contract as a contingent liability until such time as it
becomes probable that the Company will be required to make a
payment under the guarantee.

1. INTANGIBLE ASSETS

2. INVESTMENTS IN SUBSIDIARIES

Cost
At 1 January 2015
Additions
Disposals

At 31 December 2015

Impairment losses
At 1 January 2015
Additions
Reversal of previous impairments

At 31 December 2015

Carrying amount at 31 December 2015
Carrying amount at 31 December 2014

€ million
2015

29,240
31
(11)

29,260

–
–
–

–

29,260
29,240

Details of the company’s subsidiary undertakings are given in note 27 to the
consolidated financial statements.

3. OTHER NON-CURRENT ASSETS

Loans to group companies(b)

€ million
2015

€ million
2014

2,766

782

(b) Loans to group companies include balances with several group companies

which are interest bearing at market rates and are unsecured and
repayable on demand.

4. TRADE AND OTHER CURRENT RECEIVABLES

€ million
Indefinite-
life
intangible
assets

€ million

Finite-life
intangible
assets

Software

Total

Loans to group companies(c)
Amounts due from group companies(c)
Taxation
Other

€ million
2015

€ million
2014

1,579
804
28
68

2,479

3,801
548
35
78

4,462

include balances with several group companies which are interest bearing
at market rates and are unsecured and repayable on demand.

5. CASH AND CASH EQUIVALENTS
There was no cash at bank and in hand for which payment notice
was required at either 31 December 2015 or 31 December 2014.

6. TRADE PAYABLES AND OTHER CURRENT LIABILITIES

Other amounts owed to group companies(d)
Loans from group companies(d)
Bonds and other loans
Other

€ million
2015

€ million
2014

19,935
2,481
1,551
194

20,423
1,775
3,777
206

24,161

26,181

(d) Amounts owed to group companies include balances with several group

companies which are interest bearing at market rates. They are unsecured
and repayable on demand.

Cost
At 1 January 2015(a)
Additions
Disposals

At 31 December 2015

Amortisation &
Impairment
At 1 January 2015(a)
Additions

At 31 December 2015

Carrying amount at
31 December 2015
Carrying amount at
31 December 2014

440
506
(20)

926

–
–

–

926

440

935
349
–

1,284

(121)
(67)

(188)

1,096

814

137
–
–

137

1,512
855
(20)

2,347

(117)
(11)

(128)

(238)
(78)

(316)

2,031

1,274

(a) The amounts as at 1 January 2015 have been restated to FRS 101.

Further details can be found in note 21.

150

Unilever Annual Report and Accounts 2015Financial statements

7. FINANCIAL LIABILITIES

Bonds and other loans
Accruals and deferred income
Preference shares

€ million
2015

€ million
2014

2,775
7
68

2,850

789
7
68

864

Creditors due after five years amount to €68 million
(2014: €68 million).

8. PENSIONS AND SIMILAR OBLIGATIONS

Funded retirement (benefit)/liability
Unfunded retirement liability

€ million
2015

€ million
2014

2
97

8
109

117

In respect of the key assumptions for the Netherlands, disclosures
are given in note 4B to the consolidated accounts on pages 99 to 104.

9. PROVISIONS AND SIMILAR OBLIGATIONS

At 1 January 2015(e)
Income statement:

Charges
Releases

Utilisation

At 31 December 2015

Due within one year

Due after one year

€ million

Provisions

€ million
Deferred
Tax

–
(1)
(4)

33
(18)
–

–

11. CALLED UP SHARE CAPITAL
The called up share capital amounting to €275 million consists
of 1,714,727,700 Unilever N.V. ordinary shares and 2,400 Unilever
N.V. ordinary special shares. These special shares numbered 1
to 2,400 are held by a subsidiary of Unilever N.V. and a subsidiary
of Unilever PLC, each holding 50%. Further details are given in
note 15A to the consolidated accounts on page 116. 152,637,026
(2014: 153,681,322) of the ordinary shares are held by Unilever N.V.
(see note 14) and 1,535 (2014: 247,675) ordinary shares are held
by other group companies.

12. SHARE PREMIUM
The share premium shown in the balance sheet is not available
for the issue of bonus shares or for repayment without incurring
withholding tax payable by Unilever N.V. This is despite the change
in tax law in the Netherlands, as a result of which dividends
received from 2001 onwards by individual shareholders who are
resident in the Netherlands are no longer taxed.

13. LEGAL RESERVES
In 2006 the Unilever N.V. ordinary shares were split in the ratio 3 to
1 and at the same time the share capital, previously denominated
in Dutch guilders, was converted into euros. Due to rounding the
new nominal value per share differs from the value expressed in
Dutch guilders. As a result, the reported share capital issued at
31 December 2006 was €16 million lower than in 2005.

14. OTHER RESERVES

1 January
Change during the year

31 December

€ million
2015

€ million
2014

(3,325)
(14)

(3,237)
(88)

(3,339)

(3,325)

Unilever N.V. holds 152,637,026 (2014: 153,681,322) of its own
ordinary shares. These are included in other reserves.

(e) The amounts as at 1 January 2015 have been restated to FRS 101.

Further details can be found in note 21.

15. RETAINED PROFIT

At the balance sheet date, Unilever N.V. has unused tax credits
amounting to €324 million (2014: €300 million) available for offset
against future tax profits. Deferred tax assets have not been
recognised for an amount of €324 million (2014: €300 million)
as it is not probably that there will be future taxable profits against
which the credits will be utilised.

10. CAPITAL AND RESERVES

Company accounts Unilever N.V.
Unilever Group: shareholders’ equity

€ million

2015

9,329
15,439

€ million
Restated
2014

8,511
13,651

The equity of Unilever Group €15,439 million (2014: €13,651
million) includes the equity of the parent Unilever N.V. €9,329
million (2014: €8,511 million), the equity of parent Unilever PLC
£4,714 million (2014: £1,249 million). The remaining difference
arises from recognising investments in subsidiaries in the Unilever
N.V. accounts at cost less any amounts written off to reflect a
permanent impairment, not eliminating intra-group balances and
transactions and not performing other consolidation procedures
which are performed for the Unilever Group financial statements.

1 January
Profit for the year
Dividends
Realised profit on shares/certificates held to
meet employee share options.
Other charges

31 December

€ million

2015

11,525
2,659
(1,862)

€ million
Restated
2014

11,010
2,230
(1,757)

25
10

44
(2)

12,357

11,525

Unilever N.V. approved the waiver by one of its subsidiaries of
the dividends receivable of €567 million in 2014. The profits for
the year in that subsidiary are reduced by this amount.

In 2014 Unilever N.V. approved a transfer of assets being a
receivable amounting to €2,929 million through a gift from a
subsidiary of Unilever N.V. to a subsidiary of Unilever PLC.

151

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE COMPANY ACCOUNTS
UNILEVER N.V. CONTINUED

16. PROFIT FOR THE YEAR

Company accounts Unilever N.V.
Unilever Group excluding non-controlling interest

€ million

2015

2,659
4,909

€ million
Restated
2014

2,230
5,171

The net profit of Unilever Group of €4,909 million (2014:
€5,171 million) includes the net profit of parent Unilever N.V.
€2,659 million (2014: €2,230 million) and the net profit of parent
Unilever PLC £4,583 million (2014: £1,095 million). The remaining
difference arises from the recognition in Unilever N.V.’s accounts
of investments in subsidiaries at cost less any amounts written
off to reflect a permanent impairment, intra-group balances
and transactions are not eliminated and other consolidated
procedures are not performed.

17. CONTINGENT LIABILITIES AND FINANCIAL
COMMITMENTS
Unilever N.V. has issued joint and several liability undertakings,
as defined in Article 403 of Book 2 of the Civil Code in the
Netherlands, for almost all Dutch group companies. These written
undertakings have been filed with the office of the Company
Registry in whose area of jurisdiction the group company
concerned has its registered office.

The total amount of guarantees, is €9,292 million (2014:
€6,833 million). This consists mainly of joint guarantees with
Unilever PLC and Unilever United States, Inc. relating to the
long-term debt and commercial paper issued by Unilever PLC and/
or Unilever Capital Corporation Inc. Unilever N.V. also guarantees
some borrowings of other group companies and some contingent
consideration of Group companies relating to past business
acquisitions. Other joint guarantees with Unilever PLC relate to
derivatives taken out by Group companies.

Additionally Unilever N.V. has guarantees and financial
commitments including indemnities arising from past business
disposals and for certain global service contracts. No value can
be attributed to these financial commitments at this time.

The likelihood of these guarantees, financial commitments and
contingencies being called is considered to be remote and so
accordingly the fair value is deemed to be immaterial.

18. REMUNERATION OF AUDITORS
For details of the remuneration of the auditors please refer to note
25 on page 135.

19. DIRECTORS’ REMUNERATION
Information about the remuneration of Directors is given in the
tables noted as audited in the Directors’ Remuneration Report on
pages 66 to 83, incorporated and repeated here by reference.

21. EXPLANATION OF TRANSITION TO FRS 101 FROM
UK GAAP
This is the first year that the Company has presented its financial
statements under FRS 101. The last financial statements were
prepared under UK Generally Accepted Accounting Practice (UK
GAAP) for the year ended 31 December 2014. The date of transition
is 1 January 2014. This note explains the principal adjustments
made by the Company in restating its balance sheet as at
1 January 2014. On transition to FRS 101, the Company has applied
the requirements of paragraphs 6-33 of IFRS 1 ‘First time adoption
of International Financial Reporting Standards’.

Reconciliation of equity at 31 December 2014

UK GAAP
€ million

Notes

Effect of
transition
€ million

FRS 101
€ million

Assets
Non-current assets
Intangible assets
Investments in subsidiaries
Other non-current assets

(a)

Current assets
Trade and other current
receivables
Cash and cash equivalents

1,217
29,240
782

31,239

4,462
5

4,467

57
–
–

–
–

–

1,274
29,240
782

31,296

4,462
5

4,467

Total assets

35,706

35,763

Liabilities
Current liabilities
Trade payables and other
current liabilities
Provisions

Non-current liabilities
Financial liabilities
Pensions and similar
obligations
Provisions
Deferred tax liabilities

Total liabilities

Equity
Shareholders’ equity
Called up share capital
Share premium
Legal reserves
Other reserves
Retained profit

26,181
9

26,190

864

117
4
62

1,047

27,237

275
20
16
(3,325)
11,483

8,469

35,706

(b)

(c)

–
–

–

–
–
15

–
–
–
–
42

26,181
9

26,190

864

117
4
77

1,062

27,252

275
20
16
(3,325)
11,525

8,511

35,763

Information on key management compensation is provided in note
4A to the consolidated group financial statements on page 99.

Shareholders’ equity /
total equity

20. EMPLOYEE INFORMATION
During 2015, the average number of employees employed by
Unilever N.V. was 16, of whom 15 worked abroad.

Total liabilities and equity

152

Unilever Annual Report and Accounts 2015Financial statements

Reconciliation of equity as at 1 January 2014

UK GAAP
€ million

Notes

Effect of
transition
€ million

FRS 101
€ million

Assets
Non-current assets
Intangible assets
Investments in subsidiaries

(a)

Current assets
Trade and other current
receivables
Cash and cash equivalents

1,311
28,381

29,692

4,960
3

4,963

44
–

–
–

–

1,355
28,381

29,736

4,960
3

4,963

Total assets

34,655

34,699

Liabilities
Current liabilities
Trade payables and other
current liabilities
Provisions

Non-current liabilities
Financial liabilities
Pensions and similar
obligations
Provisions
Deferred tax liabilities

Total liabilities

Equity
Shareholders’ equity
Called up share capital
Share premium
Legal reserves
Other reserves
Retained profit

Shareholders’ equity/ total
equity

Total liabilities and equity

(b)

(c)

24,561
9

24,570

1,865

100
5
64

2,034

26,604

275
20
16
(3,237)
10,977

8,051

34,655

–
–

–

–
–
11

–
–
–
–
33

24,561
9

24,570

1,865

100
5
75

2,045

26,615

275
20
16
(3,237)
11,010

8,084

34,699

(a) In line with UK GAAP, Unilever N.V. did not recognise a computer software
intangible asset. Under FRS 101, internally generated computer software
is required to be capitalised when certain criteria are met and accordingly
an adjustment is made in the books of Unilever N.V. to recognise an
intangible asset for computer software. Under FRS 101, amortisation of
indefinite life intangibles is not permitted. An adjustment is made to
reverse the amortisation charged in 2014 under UK GAAP. For all intangible
assets deemed cost has been used as fair value on transition to FRS 101.
There have been no adjustments to the carrying value reported under UK
GAAP in arriving at the deemed cost under FRS 101.

(b) Deferred tax position is updated based on the capitalisation of the

computer software.

THE BOARD OF DIRECTORS
17 February 2016

153

Unilever Annual Report and Accounts 2015Financial statementsFURTHER STATUTORY AND OTHER INFORMATION
UNILEVER N.V.

THE RULES FOR PROFIT APPROPRIATION IN THE
ARTICLES OF ASSOCIATION (SUMMARY OF ARTICLE 38)
The profit for the year is applied firstly to the reserves required
by law or by the Equalisation Agreement, secondly to cover losses
of previous years, if any, and thirdly to the reserves deemed
necessary by the Board of Directors. Dividends due to the holders
of the Cumulative Preference Shares, including any arrears in
such dividends, are then paid; if the profit is insufficient for this
purpose, the amount available is distributed to them in proportion
to the dividend percentages of their shares. Any profit remaining
thereafter shall be distributed to the holders of ordinary shares
in proportion to the nominal value of their respective holdings of
ordinary shares. The General Meeting can only decide to make
distributions from reserves on the basis of a proposal by the Board
and in compliance with the law and the Equalisation Agreement.

PROPOSED PROFIT APPROPRIATION

Profit for the year (available for distribution)
Dividend

To profit retained

€ million
2015

€ million
Restated
2014

2,220
(1,417)

1,868
(1,337)

803

531

POST-BALANCE SHEET EVENT
On 19 January 2016 the Directors announced a dividend of €0.302
per Unilever N.V. ordinary share. The dividend is payable from
9 March 2016 to shareholders registered at the close of business
on 5 February 2016.

SPECIAL CONTROLLING RIGHTS UNDER THE ARTICLES
OF ASSOCIATION
See note 15 to the consolidated accounts on pages 115 to 119.

INDEPENDENT AUDITORS
A resolution will be proposed at the Annual General Meeting on
21 April 2016 for the reappointment of KPMG N.V. as auditors of
Unilever N.V.

CORPORATE CENTRE
Unilever N.V.
Weena 455
PO Box 760
3000 DK Rotterdam
The Netherlands

154

Unilever Annual Report and Accounts 2015Financial statements
COMPANY ACCOUNTS
UNILEVER PLC

BALANCE SHEET
AS AT 31 DECEMBER

Assets
Non-current assets
Intangible assets
Investments in subsidiaries

Current assets
Trade and other current receivables

Total assets

Liabilities
Current liabilities
Trade payables and other current liabilities

Non-current liabilities
Financial liabilities
Deferred Tax liabilities

Total liabilities

Equity
Shareholders’ equity
Called up share capital
Share premium
Capital redemption reserve
Other reserves
Retained profit

Shareholders’ equity/total equity

Total liabilities and equity

£ million

Notes

2015

£ million
Restated
2014

1
2

5
6

8
9

171
8,365

8,536

445

8,981

3,617

648
2

650

183
8,372

8,555

598

9,153

7,256

648
–

648

4,267

7,904

41
94
11
(366)
4,934

4,714

8,981

41
94
11
(394)
1,497

1,249

9,153

The total profit for 2015 was £4,583 million (2014: £1,095 million).

The financial statements on pages 155 to 159 were approved by the Board of Directors on 17 February 2016 and signed on its behalf
by M Treschow and P Polman.

On behalf of the Board of Directors

M Treschow
Chairman

P Polman
Chief Executive Officer
17 February 2016

155

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE COMPANY ACCOUNTS
UNILEVER PLC

ACCOUNTING INFORMATION AND POLICIES

BASIS OF PREPARATION
These financial statements were prepared on the going concern
basis and in accordance with Financial Reporting Standard 101
‘Reduced Disclosure Framework’ (FRS 101) and the UK Companies
Act 2006. The Companies, Partnership and Groups (Accounts and
Reports) Regulations 2015 have been adopted from 1 January
2015. No profit and loss account is presented by Unilever PLC (the
Company) as permitted by Section 408 of the Companies Act 2006.

On transition to FRS 101, the Company has applied the
requirements of paragraphs 6-33 of IFRS 1 ‘First time adoptions
of International Financial Reporting Standards’. Transition tables
showing all material adjustments are disclosed in note 14. The
accounting policies which follow set out those policies which
apply in preparing the financial statements for the year ended
31 December 2015.

Unilever PLC is included within the consolidated financial
statements of the Group. The consolidated financial statements
of the Group are prepared in accordance with International
Financial Reporting Standards as issued by the IASB and as
adopted by the European Union.

ACCOUNTING POLICIES
The principal accounting policies are as follows:

INTANGIBLE ASSETS
Finite life intangible assets mainly comprise trademarks
purchased after 1 January 1998. These assets are capitalised and
amortised on a straight line basis in the income statement over
the period of their expected useful lives. None of the amortisation
periods exceed 20 years. There are no assets where the useful
life cannot be reliably determined. Indefinite life intangible assets
mainly comprise trademarks and brands. These assets are
capitalised at cost but not amortised. They are subject to review
for impairment annually, or more frequently if events or
circumstances indicate this is necessary. Any impairment is
charged to the income statement as it arises.

156

heading ‘Capital and funding’ in note 15 to the consolidated
accounts on pages 115 and 116. Unilever PLC is taking the
exemption for financial instruments disclosures, because IFRS 7
disclosures are given in notes 15 to 18 to the consolidated accounts
on pages 115 to 129.

accounting nor taxable profit; and

• Differences relating to investments in subsidiaries to the extent
that they will probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected
manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted, or substantively
enacted, at the year end.

A deferred tax asset is recognised only to the extent that it is
probable that future taxable profits will be available against which
the asset can be utilised. Deferred tax assets are reduced to the
extent that it is no longer probable that the related tax benefit will
be realised.

SHARES HELD BY EMPLOYEE SHARE TRUSTS
Shares held to satisfy options are accounted for in accordance
with IAS 32 ‘Financial Instruments: Presentation’ and Standards
Interpretation Committee 12 ‘Consolidation of Special Purpose
Entities’ (SIC 12). All differences between the purchase price of the
shares held to satisfy options granted and the proceeds received for
the shares, whether on exercise or lapse, are charged to reserves.

TAXATION
Current tax is the expected tax payable on the taxable income for
the period, using the tax rates enacted or substantively enacted
at the balance sheet date, and any adjustments to tax payable in
respect of previous periods.

Unilever Annual Report and Accounts 2015Financial statements1. INTANGIBLE ASSETS

4. TRADE PAYABLES AND OTHER CURRENT LIABILITIES

Cost
At 1 January 2015(a)

At 31 December 2015

Amortisation & Impairment
At 1 January 2015(a)
Additions

At 31 December 2015
Carrying amount at
31 December 2015

Carrying amount at
31 December 2014

£ million
Indefinite-
life
intangible
assets

£ million

Finite-life
intangible
assets

Amounts due to group companies(c)
Accruals and deferred income

£ million
2015

£ million
2014

3,606
11

3,617

7,245
11

7,256

–
–

–

166

(28)
(12)

(40)

126

138

211

(28)
(12)

(40)

171

183

companies which are interest bearing at market rates and are unsecured
and repayable on demand if this is the case.

5. FINANCIAL LIABILITIES

Bonds and other loans(d)

£ million
2015

£ million
2014

648

(d) This includes £400 million 4.75% note issued in 2009 maturing June 2017
(year-end value amortised cost £398 million) and £250 million 2% note
issued in 2014 maturing in December 2018 (year-amortised cost £249
million). Further details are given in note 15C to the consolidated accounts
on pages 118 and 119.

(a) The amounts as at 1 January 2015 have been restated to FRS 101.

Further details can be found in note 14.

2. INVESTMENTS IN SUBSIDIARIES

6. DEFERRED TAX LIABILITIES

Cost
At 1 January 2015
Disposals

At 31 December 2015

Impairment losses
At 1 January 2015

At 31 December 2015

Carrying amount at 31 December 2015
Carrying amount at 31 December 2014

£ million

8,377
(7)

8,370

(5)

8,365
8,372

Fixed asset investments comprise equity shares of group companies
and include the associated company Hindustan Unilever Limited,
with a cost of £2,197 million (2014: £2,197 million). These are listed on
the Bombay Stock Exchange and have a market value of £9,764
million (2014: £8,594 million) as 31 December 2015. The carrying
value of the investments is supported by their underlying net assets.

Details of the company’s subsidiary undertakings are given in note
27 to the consolidated financial statements.

3. TRADE AND OTHER CURRENT RECEIVABLES

Amounts due from group companies(b)
Taxation and social security
Other

£ million
2015

£ million
2014

392
52
1

445

569
26
3

598

(b) Amounts due from group companies include balances with several group
companies which are interest bearing at market rates and are unsecured
and repayable on demand if this is the case.

Deferred tax liabilities

£ million
2015

£ million
2014

–

7. CALLED UP SHARE CAPITAL
The called up share capital amounting to £41 million at
31 December 2015 (31 December 2014: £41 million) consists of
1,310,156,361 (2014: 1,310,156,361) Unilever PLC ordinary shares
and 100,000 (2014: 100,000) Unilever PLC deferred stock. 50%
of the deferred stock of Unilever PLC is held by N.V. Elma – a
subsidiary of Unilever N.V. and 50% owned the deferred stock
of Unilever PLC is held by United Holdings Limited – a subsidiary
of Unilever PLC.

8. OTHER RESERVES
The own ordinary shares held by Unilever PLC amount to
26,696,994 as at 31 December 2015 (31 December 2014: 27,750,464)
and are included in Other reserves.

1 January
Movement in shares

31 December

9. RETAINED PROFIT

1 January
Profit for the year
Other movements(e)
Dividends paid(f)

31 December

£ million
2015

£ million
2014

(394)
28

(366)

(367)
(27)

(394)

£ million
2015

£ million
2014
Restated

1,497
4,583
(26)
(1,120)

2,286
1,095
(721)
(1,163)

4,934

1,497

(e) Further details are given in note 24 to the consolidated accounts on page 135.
(f) Further details are given in note 8 to the consolidated accounts on page 109.

157

Unilever Annual Report and Accounts 2015Financial statements

NOTES TO THE COMPANY ACCOUNTS
UNILEVER PLC CONTINUED

10. PROFIT APPROPRIATION

Reconciliation of equity at 31 December 2014

Profit for the year (available for distribution)
Dividends(g)

To profit retained

£ million
2015

£ million
2014
Restated

4,586
(836)

3,750

1,095
(876)

219

(g) The dividend to be paid in March 2016 (see note 13) is not included in the

2015 dividend amount.

11. CONTINGENT LIABILITIES AND FINANCIAL
COMMITMENTS
The total amount of guarantees is £11,232 million (2014: £10,166
million). This mainly consists of guarantees relating to the
long-term debt and commercial paper issued by Unilever N.V.
and/or Group companies such as Unilever Capital Corporation Inc.,
some of which are joint with Unilever N.V. and Unilever United
States Inc. Other joint guarantees with Unilever N.V. relate to
derivatives taken out by Group companies. There is also a
guarantee to the pension fund in respect of the UK pension scheme.

Additionally Unilever PLC has financial commitments including
indemnities arising from past business disposals and trademarks
used by joint ventures. No value can be attributed
to these financial commitments at this time.

The likelihood of these guarantees, financial commitments and
contingencies being called is considered to be remote and so
accordingly the fair value is deemed to be immaterial.

12. REMUNERATION OF AUDITORS
The parent company accounts of Unilever PLC are required to
comply with The Companies (Disclosure of Auditor Remuneration
and Liability Limitation Agreements) Regulations 2008. Auditor’s
remuneration in respect of Unilever PLC is included within the
disclosures in note 25 on page 135.

13. POST BALANCE SHEET EVENT
On 19 January 2016 the Directors announced a dividend of
£0.2300 per Unilever PLC ordinary share. The dividend is payable
from 9 March 2016 to shareholders registered at the close of
business on 5 February 2016.

14. EXPLANATION OF TRANSITION TO FRS 101 FROM
UK GAAP
This is the first year that the Company has presented its financial
statements under FRS 101. The last financial statements were
prepared under UK Generally Accepted Accounting Practice (UK
GAAP) for the year ended 31 December 2014. The date of transition
is 1 January 2014. This note explains the principal adjustments
made by the Company in restating its balance sheet as at
1 January 2014. On transition to FRS 101, the Company has applied
the requirements of paragraphs 6-33 of IFRS 1 ‘First time
adoptions of International Financial Reporting Standards’.

UK GAAP
£ million

Notes

Effect of
transition
£ million

FRS 101
£ million

Assets
Non-current assets
Intangible assets
Investments in subsidiaries
Deferred tax assets

(a)

(b)

Current assets
Trade and other current
receivables

Total assets

Liabilities
Current liabilities
Trade payables and other
current liabilities

Non-current liabilities
Financial liabilities

Total liabilities

Equity
Shareholders’ equity
Called up share capital
Share premium
Capital redemption reserve
Other reserves
Retained profit

Shareholders’ equity/total
equity

Total liabilities and equity

(c)

176
8,372
5

8,553

598

9,151

7,256

648

7,904

41
94
11
(394)
1,495

1,247

9,151

7
–
(5)

–

–
–
–
–
2

–

183
8,372
–

8,555

598

9,153

7,256

648

7,904

41
94
11
(394)
1,497

1,249

9,153

(a) In line with UK GAAP, Unilever PLC amortised indefinite life intangible

assets. Under FRS 101, indefinite life intangible assets are not amortised
but reviewed annually for impairment and accordingly an adjustment is
made in the books of Unilever PLC to remove the amortisation charge
of indefinite life intangible assets. For all intangible assets deemed cost
has been used as fair value on transition to FRS 101. There have been no
adjustments to the carrying value reported under UK GAAP in arriving
at the deemed cost under FRS 101.

(b) The deferred tax position is updated due to the change in the intangible

asset balance.

158

Unilever Annual Report and Accounts 2015Financial statements
Reconciliation of equity as at 1 January 2014

UK GAAP
£ million

Notes

Effect of
transition
£ million

FRS 101
£ million

Assets
Non-current assets
Intangible assets
Investments in subsidiaries

Current assets
Trade and other current
receivables

Total assets

Liabilities
Current liabilities
Trade payables and other
current liabilities

Non-current liabilities
Financial liabilities
Provisions

Total liabilities

Equity
Shareholders’ equity
Called up share capital
Share premium
Capital redemption reserve
Other reserves
Retained profit

Shareholders’ equity/total
equity

Total liabilities and equity

189
8,115

8,304

248

8,552

6,081

398
8

406

6,487

41
94
11
(367)
2,286

2,065

8,552

–
–

–

–
–

–

–
–
–
–
–

–

189
8,115

8,304

248

8,552

6,081

398
8

406

6,487

41
94
11
(367)
2,286

2,065

8,552

159

Unilever Annual Report and Accounts 2015Financial statementsINDEX

Our Annual Report and Accounts is in two parts; for pages 1 to 44 please refer to our Strategic Report and for pages 45 to 159 please
refer to this Governance and Financial Report.

Accounting policies
Acquisitions
Americas, The
Annual General Meetings
Asia/AMET/RUB
Associates
Audit Committee
Auditors
Balance sheet
Biographies
Board committees
Board remuneration
Boards
Brand and marketing investments
Brands
Capital expenditure
Cash
Cash flow
Categories
Cautionary statement
Chairman
Chief Executive Officer
Commitments
Company accounts, statutory and other information
Compensation Committee
Comprehensive income
Contingent liabilities
Core earnings per share
Core operating margin
Core operating profit
Corporate governance
Corporate responsibility
Corporate Responsibility Committee
Deferred tax
Depreciation
Directors’ responsibilities
Disposals
Diversity
Dividends
Earnings per share
Employees
Equalisation Agreement
Equity
Europe
Exchange rates
Executive Directors
Finance and liquidity
Finance costs and income
Financial assets
Financial calendar
Financial instruments
Financial liabilities
Financial review
Foods
Free cash flow
Geographies
Goodwill

94-95
35-39, 131-133
97, 99, 110-111
44, 49, 60-61
97, 99, 110, 111
90, 93, 96-97, 112-113, 134
60-61
51, 60-61, 85-89, 135, 152-154, 158
37, 92, 148, 155
58-59
45
66-83
4-5, 45-47
36,98
2
111
125-127
37-93
2, 36, 96
Inside back cover
4, 45-47, 49, 58
6-8, 58
130-131
148-159
42, 64-83
90, 102, 108
130-131, 152, 158
35, 39, 108
16, 35-36, 39
35-36, 39
45-52
62-63
45, 62-63
106-107, 149, 156
98, 111-112
84
35-39, 131-133
17, 51, 65
44, 109, 150, 156
35, 90, 108
28-31, 51, 99
45
91, 117-118
97, 99, 110-111
94
45-47, 58, 70-83
38, 120-122
105
125-127
44
115, 118, 120-129
115, 118-119
35-39
16, 21, 36, 96, 111
16, 37, 39
3, 97, 99, 110
109-111

98
Gross profit
94
Group structure
16,22, 36, 96
Home Care
96, 98, 110-111
Impairment
35, 90
Income statement
4, 14-15, 27
Innovation
109-110, 149, 156
Intangible assets
94
International Financial Reporting Standards
113
Inventories
90, 93, 96-97, 112-113, 134, 136
Joint ventures
99
Key management
16, 35, 39
Key Performance Indicators
130-131
Leases
131
Legal proceedings
37
Market capitalisation
Net debt
39
Nominating and Corporate Governance Committee 45-46, 64-65
96-98
Non-core items
5, 43, 45-47, 49, 58, 64-65, 79-81
Non-Executive Directors
38-39
Non-GAAP measures
Operating costs
98
35, 36, 90, 96-98
Operating profit
8
Outlook
114
Payables
Pensions and similar obligations
99-104
16, 20, 36, 96
Personal Care
135, 154, 158
Post balance sheet events
44, 105
Preference shares and dividends
136-147
Principal group companies
111-112
Property, plant and equipment
129
Provisions
Receivables
113-114
16, 23, 36, 96
Refreshment
134
Related party transactions
Research and development
15
91, 123, 151
Reserves
129
Restructuring
96
Revenue recognition
40-41, 50, 57, 61
Risk management and control
40-41, 53-57
Risks
36, 96-97
Segment information
Share-based payments
104-105
47-50, 116, 151, 157
Share capital
32-34, 48-50
Shareholders
44
Share registration
99
Staff costs
Strategy
12-17
106-108, 149-151, 156-158
Taxation
81
Total shareholder return
115-127
Treasury
Turnover
90, 96-97
16, 35-36, 39
Underlying volume growth
16, 35-36, 38
Underlying sales growth
9, 59
Unilever Leadership Executive
47, 49
Voting
44
Website

160

Unilever Annual Report and Accounts 2015Shareholder informationCAUTIONARY STATEMENT
This document may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vision’, or the negative of these terms and other
similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking
statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Unilever Group (the
“Group”). They are not historical facts, nor are they guarantees of future performance.

This report comprises regulated information within the meaning of Sections 1:1 and 5:25c of the Act on Financial Supervision (“Wet op het financieel toezicht
(Wft)”) in the Netherlands.

The brand names shown in this report are trademarks owned by or licensed to companies within the Group.

Designed and produced by Unilever Communications in conjunction with Addison Group at www.addison-group.net.

Printed at Pureprint Group, ISO 14001. FSC® certified and CarbonNeutral®.

This document is printed on Amadeus 100% Recycled Silk and Offset. These papers have been exclusively supplied by Denmaur Independent Papers which has
offset the carbon produced by the production and delivery of them to the printer.

These papers are 100% recycled and manufactured using de-inked post-consumer waste. All the pulp is bleached using an elemental chlorine free process
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a CarbonNeutral® company. Both the manufacturing mill and the printer are registered to the Environmental Management System ISO 14001 and are Forest
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If you have finished with this document and no longer wish to retain it, please pass it on to other interested readers or dispose of it in your recycled paper
waste. Thank you.

FOR FURTHER INFORMATION ABOUT
UNILEVER PLEASE VISIT OUR WEBSITE:
WWW.UNILEVER.COM

UNILEVER N.V.
Head Office and Registered Office
Weena 455, PO Box 760
3000 DK Rotterdam
The Netherlands
T +31 (0)10 217 4000

Commercial Register Rotterdam
Number: 24051830

UNILEVER PLC
Head Office
100 Victoria Embankment
London EC4Y 0DY
United Kingdom
T +44 (0)20 7822 5252

Registered Office
Unilever PLC
Port Sunlight
Wirral
Merseyside CH62 4ZD
United Kingdom

Registered in England and Wales
Company Number: 41424