Unilever N.V.

Report and accounts I g 75

Directors Advisory Directors

H. F. van den Hoven, Chairman B. W. Biesheuvel

D.A. Orr, Vice-Chairman G. D. A. Klijnstra

J. M. Goudswaard, Vice-Chairman R. Mueller

M. R. Angus J. H. van Roijen

W. B. Blaisse P. P. Schweitzer

J. G. Collingwood Secretaries K. Durham C. Zwagerman J. P. Erbe H. A. Holmes G. E. Graham

C. T. C. Heyning

A. H. C. Hill

F. A. Maljers

H. Meij

M. Ormerod

Jonkheer I. E. B. Quarles van Ufford

C. F. Sedcole

A. W. P. Stenham

0. Strugstad

S. G. Sweetman

The Viscount Trenchard Auditors

K. H. Veldhuis Price Waterhouse & Co.

E. J. Verloop Coopers & Lybrand Nederland

All the present Directors named above were Directors on 31 st December, 1975. Mr. A. I. Anderson and Mr. R. H. Del Mar were also Directors on 31 st December, 1975. Contents

The cover Unilever The 26 metre-high detergent 1975 in brief spraying tower at our Angke Summary of Combined results factory in Jakarta was the first in Summary of Combined assets Indonesia. and liabilities 5 On the right is a mosque built by Return on shareholders’ equity, the company for factory personnel. capital employed and sales 6

Review of the year Photograph by Brian Worth. Introduction 7-8 Capital expenditure 9 Source and use of funds 10 Finance 11 Sales, capital employed and profit, by geographical areas 12 Sales and profit by operations 13 Illustrations 14 Review of operations 15-26 Exports 23 Personnel 25 Research and development 26 Quarterly results Dividends ;I: Capital and membershrp Directors E! Auditors 30

Accounts Reports of the auditors Accounting policies General notes to the accounts Consolidated accounts Unilever N.V.-balance sheet and notes 44-45 Unilever Limited-balance sheet and notes 46-49 Principal subsidiaries 50-52 Principal trade investments 52 Salient figures in guilders and other currencies 53 Financial review 1965-l 975 54-55 Dates to note 56

A special survey of the activities of UAC International is issued as a supplement to this Report. Unilever

Unilever comprises Unilever N.V., the United Kingdom Companies Rotterdam (N.V.) and Unilever Acts 1948 and 1967. Limited, London (Limited) and their respective subsidiary companies. These operate in more than seventy-five countries and are mainly engaged in the manufacture and sale of a wide variety of goods 1975 in brief for household use. The principal products are foods (including margarine, other fats and oils; Profits in Europe in 1975 were well ice-cream; frozen and other below 1974. This was mainly due to packaged ‘convenience’ foods; difficult operating conditions in the meat and fish); drinks; detergents edible fats and oil milling businesses and toilet preparations; chemicals; in the early part of the year, and to paper, plastics, packaging; and falls in sales volume of a number of animal feeds. Unilever also has our products, especially those sold interests in transport and in for industrial uses. Our trawling plantations. Through UAC operation had a bad year, and the International a substantial business dairy products and meat businesses is carried on in Africa and other operated in total at a loss. parts of the world as merchants and Ice-cream had an excellent year. specialist distributors, in diverse industrial ventures, and in the In the United States and Canada operation of an ocean fleet. profits were slightly below 1974 mainly because of disappointing N.V. and Limited have identical results from edible fats in the United Boards of Directors and are linked States. by agreements, including an Equalisation Agreement which Elsewhere outside Europe most requires dividends and other rights countries showed satisfactory and benefits (including rights on improvements in profit. UAC liquidation) attaching to each FI. 12 International had a very good year nominal of ordinary share capital of for nearly all their main activities. N.V. to be equal in value at the World-wide, operating profits were current guilder/sterling rate of about 6 o/o below 1974. exchange to those attaching to each fl nominal of ordinary capital of Economies in working capital Limited as if each such unit formed requirements were achieved and part of the ordinary share capital of interest earned on liquid funds one and the same company. In exceeded interest on short-term consequence, the combined affairs borrowings, but interest on loan of N.V. and Limited are more capital increased and the average important than the separate affairs rate of taxation on profits was also of either company. The Report and higher. There was a significant accounts as usual deal with the increase in outside interests in results and operations of Unilever profits of subsidiaries, mainly as a whole, with the figures because of improved profitability expressed in guilders. Except where of partly owned subsidiaries in the otherwise stated, therefore, all UAC International group. As a figures are for N.V. and Limited result of these factors, profit combined. attributable to ordinary capital was about 16% below 1974. This is a translation of the original Dutch report. French and German The Board’s final ordinary dividend translations, with the figures proposals represent an increase of remaining in guilders, are also 5.5% in N.V.‘s total dividend for published. the year. Shareholders in Limited will receive the maximum payment The Report and accounts ot permitted by the statutory controls Limited, which are in English with in the United Kingdom, leaving a the figures expressed in sterling, balance of dividends declared to be contain the same information as this carried forward for payment when document, apart from certain circumstances permit. statutory information required by Summary of combined results for the year ended 31 st December Figures in italics represent deductions FI. million

1974 1975

Sales to third parties 34471 36705

Operating profit 2109 1 986

Non-recurring and financial items 142 205

Profit before taxation 1 967 1 781

Taxation 961 883

Profit after taxation 1 006 898

Outside interests and preference dividends 97 727

Profit attributable to ordinary capital 915 771

Ordinary dividends 345 362

Profit of the year retained’) 570 409

Earnings per share2) per FI. 20 of capital FI. 16.43 FI. 13.84 per 25p of capital 41.76~ 38.23~

Ordinary dividends N.V.-per FI. 20 of capital FI. 7.25 FI. 7.65 Limited-per 25p of capital 12.09p 13.67~

I) Other movements In Profits retamed are shown In the consolidated accounts on page 36

*) The basis of calculation is shown on page 39. The decrease in guilders is 16% and in sterling 8O/,. The difference arises from the use of the rate of f 1 = FI. 5.90 in 1974 and fl = FI. 5.43 in 1975.

4 Summary of combined assets and liabilities as at 31 st December Figures in italics represent deductions FI. million

1974 1975 Capital employed

Preferential share capital 295 293

Ordinary shareholders’ equity 7 199 7 513

Outside interests in subsidiaries 327 381

Loan capital 2 120 2 223

Deferred liabilities 1418 1 759

11 359 12169

Employment of capital

Land, buildings and plant 5 577 5 958

Trade investments 197 256

Long-term debtors 291 184

Working capital 5 858 5 336

Provision for taxation 639 694

Dividends 295 334

Net liquid funds 370 1 463

11 359 12 169

Ordinary shareholders’ equity per share per FI. 20 of capital FI. 129.21 FI. 134.84 per 25p of capital 328.49p 372.50~ Return on shareholders’ equity, capital employed and sales

Profit’) as percentage of ordinary shareholders’ equity/ \

I) Based on profit attrmutaole to oramary 2, Based on profit after raxarlon but before 3) Based on profit after taxation. capital. loan interest.

6 Review of I g 7 5 to be submitted at the annual flowing to the oil producers. Trade concluding the Lome Agreement general meeting of shareholders with members of the Organisation with 46 developing countries. An to be held at the of Petroleum Exporting Countries important feature of the company’s offices, (OPEC) increased rapidly and their Agreement was the introduction of Burgemeester S’Jacobplein 7, current account surplus fell to about a system for stabilising the income Rotterdam, half the 1974 level. For the from exports of a number of raw on 12th May, 1976. industrialised countries steadily materials to the E.C. by the 46 rising exports to OPEC, falling countries. This could point the way imports due to the recession, and to the wider adoption of similar improved terms of trade resulted in systems for mitigating the effect on the total deficit being substantially developing countries of fluctuations less than expected. in world commodity prices, without Introduction directly interfering with the market The cost of the 1975 recession in mechanism. both human and economic terms The economic background was considerable. Profitability fell The current economic uncertainties Economic developments in 1975 to a dangerously low level in view involve an unusual risk of spreading again created very difficult of industry’s need to invest for the protectionism and the erection of conditions for business. Both in future-the first step towards new trade barriers. It is therefore to North America and Western Europe, creating new employment be hoped that negotiations economic activity fell by some 3%. opportunities. conducted within the General In the developing world, the Agreement on Tariffs and Trade economies of the oil producing Exchange rates and earnings (GATT) will contribute to further countries, including Nigeria, per share liberalisation and expansion of continued to grow rapidly. The Conditions in the foreign exchange world trade. other developing countries markets were more stable in 1975 maintained economic expansion in than in 1974. There continued to be During the year a number 01 the face of worsening trade significant changes in floating rates international bodies have turned balances, but this was at the between major currencies, but their attention to devising codes of expense of increased foreign fluctuations were less pronounced. conduct for international investment indebtedness and a rapid rundown The dollar strengthened against the and for the transfer of technology. in their foreign exchange reserves. linked European currencies, amongst In particular the Organisation for In the industrialised countries, which the guilder remained strong Economic Co-operation and unemployment rose to post-war throughout the year. Sterling Development (OECD) has made record levels. As well as the adverse depreciated against the dollar and progress with preparing guidelines social consequences this had a other major European currencies. for multinational corporations. The depressing effect on consumer United Nations (UN) through its demand. Inflation remained For the purpose of calculating the Commission for Transnational excessively high. 1975 combined results, we have Corporations has started its work used the sterling exchange rate The first half of the year was current at the year-end of f 1 = We are co-operating with dominated by a very sharp FI. 5.43. This was 8% below the governments and the international recession, worsened by earlier fiscal rate of fl = FI. 5.90 used for the organisations concerned in these and monetary measures designed to 1974 results. Calculated at these projects. By co-operating with the restrain rapidly accelerating rates, combined earnings per share international bodies in their work, inflation. The resulting shortage of fell by 16% in terms of guilders and we seek to promote a better liquid funds and high interest rates by 8% in sterling. If the 1975 understanding of our record which, caused manufacturers and the trade combined results had been particularly in the developing to reduce their stocks on a massive calculated at the same rates of countries, has proved our capacity scale. The reaction was sharpest in exchange as those for 1974, to develop natural resources, teach the United States, Italy and Japan. earnings per share would have managerial skills, transfer fallen by 14% in both currencies. appropriate technology, promote In the second half of the year, industrialisation and create wealth. however, activity in a number of the International developments key economies ceased to decline Having consistently supported Taxation and the first signs of recovery United Kingdom membership of the The average rate of taxation on all occurred in the United States. At European Community (E.C.), we our profits was higher than in 1974. the same time inflation rates began were particularly glad to see it This was partly due to a higher to decelerate. By the end of the reaffirmed by the national proportion of all profits being year the rate of inflation in almost referendum in June. Progress with earned in countries with higher tax all the major countries was well the integration of internal policies rates and partly due to our inability below the year’s peak. of the member states remained slow. in certain countries to offset some losses against taxable profits of the The world monetary system coped In its external relations, the E.C. year. reasonably well with the large funds made a significant advance by In our previous annual reports we proposals on our reported results have mentioned the dispute with Preliminary calculations indicate the German tax authorities that that our 1974 operating profit arose rn 1968 regarding the refund would have been reduced by more of part of the German dividend tax than half whereas that for 1975 on dividends paid by our would have been reduced by about subsidiaries in Germany to a 15%. The main reason for the number of our Dutch holding disparity between 1974 and 1975 companies. In the 1974 annual is that the prices of all our raw report it was stated that the amount materials rose sharply in 1974 of the contingent liability was whereas in 1975 raw material price FI. 302 million. During 1975 the movements tended to offset one Federal Tax Court in Munich gave another. a final decision in our favour as we had expected. Zaire Negotiations are taking place with Inflation and profits the Government of Zaire concerning Present accounting conventions the future ownership of our interests ignore the effect of inflation on the in that country. These interests have profit and loss account and balance not been included in the sheet and tend to overstate company Consolidated Accounts. profits, often significantly. The same conventions are used in many cases Prospects for price control and taxation The economic recovery which purposes. began in the United States during the second half of 1975 is now Recently much attention has been spreading to a number of other given throughout the world to new countries. However, the rate at accounting systems which would which economic activity will grow eliminate the distorting effect of and the effect on demand for our inflation from reported profits. The products are still uncertain, and report of the Sandilands Committee, unemployment seems likely to in the United Kingdom, proposing remain high. to use current cost to determine the results and the value of the assets The drastic reduction of customers’ of the business, has received stocks, which had a particularly bad widespread support. The effect of effect on our sales of industrial these proposals would be very products in 1975, has come to an similar to that of the application of end. Raw material prices seem the replacement cost system as unlikely to fluctuate as violently in known in the Netherlands. 1976 as in the two previous years. Other costs are still rising, but the This means broadly that rate of inflation has slowed down depreciation is increased to take in most countries. account of replacement cost and that raw materials consumed are We have continued to invest for the charged to profits at current cost- future and in spite of some thereby eliminating stock profits and uncertainties, the immediate losses. prospects are now appreciably better than they were a year ago. We believe that the reporting of profits in real terms is of great Employees importance in present conditions Thanks are due to our employees at and strongly support the efforts all levels for their efforts in 1975, rn being made to achieve a generally circumstances which were accepted system of accounting for difficult for many of them. inflation. It will be of crucial importance for the maintenance of business activities that both price control and taxation authorities accept such a system.

The Sandilands Report was published too late in the year for us to calculate the full impact of the

8 Capital expenditure

In 1975 capital expenditure totalled Analysis by geographical areas and FI. 1 213 million (1974: FI. 1 309 operations. million). % FI. million E.C. countries 68 828 Other European countries 7 89 United States and Canada 9 113 Central and South America 3 29 Africa 7 78 Asia, Australia, New Zealand 6 76 100 1213

Margarine, other fats and oils, dairy products 23 272 Other foods 29 354 Detergents 10 126 Toilet preparations 2 28 Chemicals, paper, plastics, packaging 15 176 Animal feeds 3 32 UAC International 6 76 Plantations, transport and other interests 12 149 100 1213

Projects amounting to FI. 1 214 million (1 974: FI. 1 404 million) were approved in 1975.

The more important projects were:

Oil milling and processing facilities in Expansion of savoury snack production Plant for simultaneously onented polypropy Canada. capacity in Germany. lene films in Germany. Expansion of margarine production capacity Facilities for the manufacture and packing of Modifications to waste paper stock in Japan. NSD powders, and a new glycerine still, in preparation system in the United Kingdom. Australia. Expansions of oil refining capacity in Kenva Particle-board plant, and factory for domestic and Spain. Rationalisation of packmg facilities for radio and television merchandise in Nigeria. washing powders, cartoned soaps and Plant for extruded soya proteins in the Semi-continuous deodoriser and lrqutd dishwash liquids in Germany. Netherlands. detergent facilities in the United States Expansion of production and distributron Conversion of steam raising from gas to 011 In facilities for toilet preparations in the United a Netherlands plant. Kingdom. Modernisation of six factory trawlers and new Facilities for the manufacture of industrial buildings, renovation and modernisation of phosphates, and a distilled fatty acid plant, restaurants and shops for the Nordsee Group. in India. Sites for supermarkets in the United Ktngdom. Oleochemical facilities in the Netherlands. Replacement of meat processing facrlities in Facilities for the manufacture of water- the United Kingdom. treatment polymers in the United Kingdom Source and use of funds

Ffgures m italics represent deducttons FI million

1970 1971 1972 1973 1974 1975

Funds generated from operations 2108 2 326 2 600 2 851 2 676 2618 Profit before taxation Costs not involving outflow of funds: Unfunded retirement benefits Depreciation

Funds from other sources 182 50 42 101 605 122

Loan capital issued/repaid 156 50 42 101 605 122 Share capital issued 26 - -

Total sources 2 290 2 376 2 642 2 952 3 281 2 740

Taxation payments during year 598 589 705 692 906 592 Capital expenditure less disposals 906 749 781 887 1223 1065 Acquisitions/disposals of subsidiaries and trade investments 221 46 191 317 81 84

Additional/reduced working capital 329 112 96 753 1557 449 Stocks 63 36 996 1993 613 Debtors 54 410 571 526 250 Creditors 121 278 814 962 86

Dividends paid during year 324 322 303 337 311 327 Other sources/uses 3 788 1 71 169 18

Total uses 2 381 1782 2 077 3 057 4 247 1637

Net increase/decrease in net liquid funds 91 594 565 105 966 1103

Net liquid funds 1st January 552 461 1 051 1 570 1 371 370 Effect of exchange rate changes 4 46 94 35 10

Net liquid funds 31st December 461 1 051 1 570 1 371 370 1 463 Of which:

Marketable securities 398 253 264 491 344 262 Cash and deposits 876 1 586 2 017 1 490 1 209 2 270 Short-term borrowings 813 788 711 610 1 183 1069 Finance

Pressures on finance eased in 1975. this increase (FI. 122 million) 1974/75 emphasise the importance This partly reflected the sharp fall in reflected a net increase in loan of maintaining our strong balance some key raw material prices, capital. sheet, so that sudden large notably margarine, and edible oils increases in financial requirements and fats. It also reflected reduced The main company acquired during can be met without strain. stocks in line with lower sales the year was Nairn Williamson volume in some industries and Limited in the United Kingdom at The movement of FI. 10 million greater management emphasis on a cost of FI. 46 million. shown as effect of exchange rate tight working capital control. changes arises mainly from the Capital expenditure remained well The increased funds at the ena of recalculation of opening funds in above depreciation and was below 1975, when combined with our Limited at closing rates of the level of the previous year. relatively low gearing, put us in a exchange. The movements under good position to meet any future other headings are shown after As a consequence, our net liquid increase needed in working capital eliminating the influence of funds rose by FI. 1 103 million to and capital expenditure. The exchange rate changes on opening FI 1 463 million. A small part of substantial financial swings in balances. Sales, capital employed and profit, by geographical areas rl mlllloa 1970 1971 1972 1973 1974 1975

Sales to third parties E.C. countries 14760 15788 15975 18024 22020 22260 Other European countries 1412 1515 1574 1 796 2208 2482 United States and Canada 3080 3179 3149 3072 3293 3856 Central and South America 532 602 568 597 757 864 Africa 3 271 3394 3386 3424 3690 4326 Asia, Australia, New Zealand 1862 2005 2180 2284 2503 2917

24 917 26483 26832 29 197 34471 36705

Capital employed E.C. countries 6186 6512 6788 7033 7652 8073 Other European countries 507 531 577 668 774 786 United States and Canada 1 122 1 147 1 279 1135 1128 1 229 Central and South America 221 182 179 182 238 292 Africa 1 251 1 167 898 910 923 1088 Asia, Australia, New Zealand 621 601 617 615 644 701

9 908 10140 10338 10543 11 359 12 169

Operating profit E.C. countries 946 1 101 1248 1 099 815 Other European countries 100 156 187 150 130 United States and Canada 221 193 187 237 201 Central and South America 45 69 68 45 50 Africa 271 234 289 342 527 Asia, Australia, New Zealand 134 195 214 236 263

1717 1 948 2193 2109 1 986

Profit attributable to ordinary capital E.C. countries 337 483 580 617 446 313 Other European countries 59 55 79 99 73 53 United States and Canada 71 108 86 89 111 92 Central and South America 5 18 37 37 31 25 Africa 118 123 124 115 140 180 Asia, Australia, New Zealand 39 32 69 83 114 108

629 819 975 1040 915 771 Sales and profit by operations

Fl. million 1970 1971 1972 1973 1974 1975

Sales Margarine, other fats and oils, dairy products 6863 7476 7417 8471 11 609 10763 Other foods 6784 7338 7978 8886 9252 10220 Detergents 5141 5402 5266 5279 5 906 6780 Toilet preparations 903 1036 1077 1125 1226 1445 Chemicals, paper, plastics, packaging 1 955 1 999 1 938 2256 2971 2 515 Animal feeds 1 972 1 871 1725 2169 2395 2234 UAC International 2980 3043 3020 2932 3328 4258 Plantations, transport, other interests 808 974 1720 1828 1 982 1880

Total sales’) 27406 29 139 30141 32946 38669 40095 of which internal sales*) 2 489 2656 3309 3749 4 198 3390

Sales to third parties 24917 26483 26832 29 197 34471 36705

Operating profit31 Margarine, other fats and oils, dairy products 382 480 566 559 475 312 Other foods 295 395 416 514 354 422 Detergents 362 442 488 461 470 498 Toilet preparations 26 51 61 91 71 111 Chemicals, paper, plastics, packaging 103 85 142 218 309 73 Animal feeds 26 8 43 85 40 33 UAC International 162 154 135 172 255 450 Plantations, transport, other interests 77 102 97 93 135 87

1433 1717 1 948 2193 2109 1 986

‘) The sales figures reported for product the sales to which the operating profit of signifrcanr ana rose from FI. 48 mrlrron rn groups are total sales, comprising sales to these groups should be related. For the 1974 to FL 116 million in 1975. third parties and internal sales. Internal sales business as a whole only sales to third parties represent supplies of marketable products and are used. The movements in exchange rates during the services between one industry and another years 1972 to 1975 have decreased the within the organisation. The profit on these 3, Operating profits are before any deduction figures expressed in guilders, and increased internal sales is included in the profit of the for outsrde interests and the significance of them when expressed in sterling by Limited, supplying industry. outside interests in the operations of influencing the apparent trend to a subsidiaries has been increasing. In UAC significant extent. 2, The inclusion of internal sales in the total International the proportion of operating sales of the product groups properly reflects profit attributable to outside interests is now Illustrations Unilever is long established in many parts of the world-the companies from which it was formed were in 41 countries as early as 1914. We now have subsidiaries in more than 75 countries and their products are sold in many more, so we have experience of countries at every stage of economic development.

The pictures in the Review show some of our activities in what have come to be called the developing countries, in which we employ over 100 000 people.

It is a characteristic of our companies that they are integrated into the local culture and society. They both contribute to and thrive on rising standards of living. In doing so they call upon the skills and experience we collect together centrally from our world-wide operations and adapt them to local conditions. This is why so many of our products are household names in so many countries.

There is much more to investment in the developing countries than just the availability of capital. In our experience the right combination of management, research and technology, and commercial and organisational expertise has to be found in each one. It is an ever-changing pattern-moving forward all the time.

(TOP) KENYA: In a rural area, two hundred miles from the capital Nairobi, an East Africa Industries demonstratron team tells people about the company’s products, then use and benefits to the consumer. ‘Krmbo’ cookmg fat is a household name, and the market leader.

(CENTRE) SRI LANKA: At the Rural Development Institute in Colombo our company’s home adviser gives a cookery demonstration to teachers from rural trainmg centres all over the country. Her recipes feature low-cost substitutes for ingredients in short supply. The Institute is supported by the Konrad Adenauer Foundation of Western Germany.

(BOTTOM) EL SALVADOR: Our companies marketing toothpaste work closely with the dental profession in many countries to promote better standards of oral hygiene. Among their activities are demonstratrons and distribution of literature in schools. Review of operati.ons

Margarine, other fats production of speciality fats in the course of 1976. and oils, Reduced demand for protein for dairy products animal consumption had an adverse effect on the sales and profits of 1974 1975 our oil milling business. Total sales (FI. million) 11 609 10763 Increase/Decrease 37 010 7% The construction of a major new Operating margin 4.1 Olo 2.9% extraction plant in Europoort, Rotterdam, will start in 1976. We Margarine, other fats and oils were, however, unable to proceed World consumption of margarine, with our plan to construct a plant butter and all other edible fats and in Switzerland. Agreement has been oils showed some increase in 1975 reached for an oil milling project in although in the industrialised Canada in partnership with Maple countries there is a tendency for the Leaf Mills Limited, a leading diet to include fewer calories and, Canadian oil milling company. therefore, less fat than formerly. In Continental Europe and North Dairy products America the ratio of butter to In view of losses incurred in recent margarine consumption was almost years, we carried out a thorough stable. In the United Kingdom review of our business in yoghurt, margarine sales have been adversely TURKEY: The main margarine packing hall desserts and other fresh dairy affected since 1974 by the at our Bakirkoy factory in Istanbul which products. The review and discriminatory butter subsidy and employs 700 people in the production of consequent rationalisation have the high cost of margarine raw margarine and vegetable ghee. already reduced the losses materials, but were beginning to significantly. recover by the end of 1975. In the developing countries, particularly In the United Kingdom we disposed Brazil and Turkey, margarine Margarine sales in Europe began to of our business and made a joint consumption continued to grow. recover in the third quarter and venture arrangement with a dairy continued to improve for the rest of company for the manufacture and World market prices for oils and the year. sale of a reduced range of products. fats, having risen dramatically in Reorganisation of production and 1974, fell sharply until the middle of In the United States our share of distribution is under way in France 1975 and have since been the margarine market fell in the face and Germany, and substantial relatively stable. Our selling prices, of intense price competition, and savings in packaging costs have particularly in Europe, were forced our results were poor. been achieved by investment in new down by competition and price machinery. control before we had consumed Our table oil business is particularly the high priced raw materials, and vulnerable to fluctuations in raw Our sales made satisfactory this had a serious effect on our material prices such as those of progress. Sales volume increased results. In total our profits were 1974 and 1975. Nevertheless, in the more rapidly than the total market, below those of 1974 but there were Netherlands, the United Kingdom especially in Belgium, Germany, substantial profit improvements in and Germany our brands maintained Finland and Sweden where we are countries outside Europe and the their position against strong price now market leaders in desserts. United States. competition. In France our ‘Fruit d’Or’ sunflower oil became more We maintained our share of a static expensive than other oils and sales world margarine market but there were lower than in 1974, although were big differences from region to we slightly improved our share of region. In Canada we increased our this market. share of a growing market; in Australia, South Africa, Indonesia, Our speciality fats business was less Turkey and Japan sales developed successful than in recent years. satisfactorily. Our sales of Consumption of chocolate, biscuits vanaspati in India increased and confectionery declined substantially. In Europe our health considerably in the Netherlands, margarines and low calorie spreads the United Kingdom, Belgium and stood up well against a trend of the United States. This led to a declining sales volume in premium reduction in demand from the products. manufacturers of these products, who are our main customers. Our Canadian company will start Other foods successes included a new range of pizzas in Germany and the ‘Quick 1974 1975 Dinner’ range of meat in thick sauce Total sales (FI. million) 9 252 10220 in Belgium. Frozen confectionery Increase 4 % 10% and desserts suffered from lack of Operating margin 3.8% 4.1~lo consumer demand in most Continental European countries, but General Birds Eye in the United Kingdom Markets in Europe for a number of increased its sales considerably. The our more important products were introduction of a new range of static or declined with consumers frozen cheese cakes was successful tending to reduce the proportion of and also helped sales of other their income spent on food and, in confectionery products. particular, on convenience foods. Intense competitive activity, In France, where consumption of generally stringent price controls, frozen foods is still low, our sales and the continuing effect of showed considerable improvemenr. inflation on manufacturing costs put considerable pressure on margins. Sales of ready meals to catering They did, however, show a small establishments did not develop as improvement. expected mainly because of short time working or less overtime in The main contributions to the factories where canteens make use increase in operating profit came of the service. In Austria and Italy from ice-cream in Europe and however we were able to find Lipton Inc. in the United States. enough new customers to maintain our progress. Our sales of frozen We intensified our efforts to improve food in bulk packs were held back operational efficiency. Significant by cheap, lower quality competition. improvements and cost reductions were achieved. Means were found The Monopolies and Mergers of reducing stock levels and Commission continued its therefore the need for working investigation into the supply in the capital, without endangering sales. United Kingdom of certain frozer foods. Birds Eye has given furthe Frozen foods information to the Commission. After a slow start frozen food sales in Continental Europe picked up in Ice-cream April. Demand received a new The spell of very warm weather i stimulus in the autumn when fresh Northern Europe in the summer vegetables became expensive, and enabled us to increase sales sales in November and December considerably above those of 1971 were particularly good. For the year Our companies in the United as a whole the rate of growth in Kingdom, Denmark, Germany an our sales was greater than in 1974. Ireland did very well.

Sales of staple vegetables such as Sales of tubs, bars and other single (TOP) SI-RE: ‘Birds Eye’ frozen foods peas, spinach and beans remained portions of ice-cream increased rn exported from the United Kingdom are sluggish especially in the United all countries. Much attention was popular in parts of the Far East, Middle East Kingdom, but sales of the more devoted to formulation and and Africa. In pioneering this business, specialised varieties increased and presentation, and many new lines together with ice-cream and frozen meat, we now account for a higher proportion were successfully introduced have developed a complex refrigerated of our total sales volume than the including new types of water ices distribution system. staple products. for children in several countries. In Germany there were five new single (BOTTOM) MALAYSIA: A television Sales of potato products rose by portion lines, all successful. In commercial being made in Kuala Lumpur for 30%. In Belgium the launch of Spain the product range was Wall’s ice-cream which is manufactured pommes frites was very successful, brought more into line with our locally from indigenous raw materials. In the and we also entered this market in ranges in other countries, and profits background is the Federal Parliament building. Germany. Sales of fish fillets and improved. In Portugal we were able other fish products which fell in to increase sales volume 1974 recovered in 1975. Frozen considerably but profits fell as a meat products sold particularly well. result of price control. In Italy a new range of pancakes with meat was a success. Other The market for ‘take home’

16 progress. Among other new products introduced during the year were ‘Betuwe Vital’ in the Netherlands, a vegetable cocktail which is rich in vitamins and low in calories, and in Sweden ‘Mer’ concentrated soft drinks in compact cartons.

The chocolate market in Europe suffered not only from the general economic situation, but also from the warm summer. Our granulated instant chocolate drink continues to be successful, particularly in Denmark, and has also been introduced in Finland.

In Austria, a new range of high-quality chocolate wafers was introduced under the brand name ‘Pischinger’.

Following unprecedented increases in tea costs during 1974, our tea business has faced difficult trading conditions. An expected increase in NIGERIA: Quality control includes tasting the tea consumption did not materialise, pies and sausage rolls baked daily by the mainly because of the recession and Foods Division of UAC of Nigeria for the effect of sharply increased prices immediate distribution in major towns. The Our sales to the catering trade also of packaged tea. In certain division produces a comprehensive variety of improved. In Germany and Austria countries, such as Japan, where products made from Nigerian beef, pork and the high quality of our products black tea is regarded as a luxury poultry. enabled us to increase our share of product, total consumer sales the market in spite of our prices declined. The decrease in volume being higher than those of together with the rapid increase in ice-cream, sold mainly through the competitors. In Italy a range of costs put considerable pressure on grocery trade, continued to grow. special products for the catering profits. Nevertheless, Lipton Inc. in In Germany, Langnese-lglo did well trade sold very well. the United States, and our tea with their lower priced ‘take home’ businesses in Australia and Pakistan products and among the more Sundry packaged foods continued their development, while expensive lines their ‘Royal’ range and drinks India, Japan and South Africa of ice-cream gateaux were Although the soup market in Europe continued to trade satisfactorily. The successful. Wall’s in the United is relatively static, we continue to relocation and modernisation of Kingdom improved their position in lead in instant soups, maintaining production facilities for export trade this market by introducing large the considerable success of is nearing completion in the United packs of ‘soft scoop’, an ice-cream ‘Cup-a-Soup’ in the United Kingdom. which remains soft at low Kingdom and of our brands in temperatures. Belgium and France. Lipton Inc. sustained its growth in profits, but had to contend with the In Italy the new ice-cream factory Other new activities in the soup effects of lower volumes in most of near Naples was almost completed. market included the launch of its markets other than tea. Their A new factory in Switzerland ‘Royce’ dietetic dried soups in ‘Make a Better Burger’ product has started production in July. Belgium and France and dehydrated successfully adapted soya protein speciality soups in France; ‘Unox’ to a consumer need and it is now In Australia and South Africa cost liquid bouillons in glass jars in the on national sale. In their ‘Wishbone’ savings and reorganisation schemes Netherlands and canned speciality dressings range there has been were started to meet the challenge soups in Belgium. continued growth, particularly of of increased competition. In Brazil the chunky cheese variety. we met with production and Responding to increased health distribution difficulties. In Malaysia consciousness, ‘Calve’ low calorie Rosella Foods in Australia had a we are increasing storage capacity mayonnaises were successfully difficult year. There was an acute and in Singapore we have built a launched in the Netherlands, and shortage of peas and beans early in new factory to cope with sales of ‘De Betuwe’ low calorie the year and reduced consumer continuously increasing demand. jams and spreads made good demand was aooarent in all markets,

17 with the exception of bouillons. several years, and the costs will be Altogether sales and profits were high. disappointingly low. Our poultry business in the United Increasing attention is being grven Kingdom had a good year, taking to foods and drinks operations in advantage of greater price stability countries outside Europe and North in the industry. America. We sell our traditional products in several countries. Dried Fish soups have been launched in the The trawling operations of Nordsee, Philippines with notably good Germany, showed poor results results, and ‘Cup-a-Soup’ was because of the low prices for fresh successfully launched in Venezuela. fish, frozen fish and fish meal. Sales of canned fish were below Meat products and poultry expectations. Our meat products business had another poor year and the result in Catering and retailing total was a loss. While the smaller The Nordsee shops and restaurants companies remained profitable, did well. There are 265 shops there were heavy losses in The mainly in Germany and Austria, and Wall’s Meat Company and Lawson’s 126 restaurants in Germany, the in the United Kingdom and the meat Netherlands, Austria and group in the Netherlands. The Switzerland. reorganisation of Wall’s will continue throughout 1976. Major Reduced margins in the retail food manufacturing and distribution trade in the United Kingdom economies are being achieved, but affected MacFisheries’ results the costs of reorganisation outweigh adversely. During the year eight these in the short term. new supermarkets were opened, and three closed, bringing the total In addition to Wall’s special to 73. Of the smaller shops two problems, they and our other were opened and 19 closed, companies in the United Kingdom reducing the total to 200. again encountered very difficult trading conditions. The pig shortage and the recession have affected much of the industry. Competition from cheaper and heavily subsidised beef and beef products, and from subsidised imported bacon and ham, particularly affected high quality pigmeat products. As a result, British pigmeat products were seriously affected both in sales and margins.

In the Netherlands, reorganisation also continues. Exports to the United States have fallen and production capacity has to be reduced accordingly. In the longer term, every possible cost saving will be necessary to maintain the traditional export trade.

The reputation of our meat products and brand names stands high in all the countries in which we trade. However, changes in international economic relationships and inflation, particularly in the United Kingdom, necessitate major changes in the structure and type of business we conduct. These changes are well under way but will inevitably take

18 etergents

1974 1975 Total sales (FL million) 5906 6760 Increase l2Qlo 15% Operating margin 8.00/~ 7.3%

In the continued aftermath of the world energy crisis as the full effects of cost increases were absorbed, selling prices for detergents had to rise sharply everywhere. In many countries this coincided with deepening economic recession: where this happened, markets whose growth was already slackening in 1974, became static or even declined for the first time in a generation.

Our own sales volume showed no increase on a world-wide basis, but our share of world markets held constant. Sales in money terms were appreciably up on 1974, but such was the continued impact of cost inflation that despite substantial economies and improved efficiencies achievea by our companies during the year, operating margins declined. However, conditions were beginning to improve in some important markets during the fourth quarter, and this was reflected in an upward trend in margins and in the increase in total operating profit for the year.

In Europe, operating profit showed a modest improvement in the face of a small decline in sales volume. In North America operating profit was lower than in 1974. Elsewhere conditions on the whole were better, and there was continued growth both in sales and profits notably in Indonesia and Nigeria. In some countries, however, results continued to be influenced to a disproportionate extent by the vagaries of price control procedures, which in their practical application can produce large short term swings in the profitability of well managed companies. For instance, in the United Kingdom a

(BOTTOM) BRAZIL: Part of the toilet soap production line at the Valhinos factory of Gessy Lever, which was extended during 1975, and now produces more ‘Lux’ than any other country. significant improvement in our busrtltbs ag~illai d L.lac;kyroulid 0i competitive position and efficiency substantial reduction of stocks held was not reflected in any real gain by the trade. Nevertheless, our in profit, while in Sweden the Atkinsons perfumery business in imposition of a general price free:2 Italy had another record year. marred an otherwise good result In India and Italy where similar f* t-: Brazil and Indonesia produced freezes had operated in 1974, th-,‘l excellent results, but in Argentina was some relaxation in 1975, an- political and economic problems our companies were able to mak impeded sales and we suffered progress with plans for future trading losses. Generally in other development. countries outside Europe and North America we made satisfactory The greater part of our capital progress. Our exports from the investment was again directed INDONESIA: Taking a sample of ‘Pepsodent’ United Kingdom showed towards projects designed to reduce toothpaste from one of the mixing vessels in outstanding growth. costs by increasing productivity. our Surabaya factory. For example, new high-speed During the year we extended our packing lines were installed in the manufacturing facilities in France. United Kingdom and France, and In addition several major there has been a considerable mechanisation projects were carried investment in packaging Toilet preparations out resulting in faster and more equipment in Germany. New efficient production lines. facilities were installed in France 1974 1975 and Germany for manufacturing Total sales (FI. million) 1 226 1 445 In August, 1975 we acquired the ‘Sun’, our dishwashing machine Increase 9 % 18”/,, Swedish toiletry and cosmetic powder. Amongst other investments Operating margin 5.8% 7.7% company Pierre Robert. This in developing countries the new strengthens our position in production facilities for toilet soap World consumption of toilet Scandinavia and provides us with in Brazil were completed. preparations expanded slightly in excellent products and technology 1975 but the economic pressures for use in other countries. Despite the difficult circumstances restricted the rate of growth which continued progress was made with was materially less than in past In all product groups we continued a wide range of activities years. However, our share of the with our programme of new product representing investment for the market increased and our sales were launches backed by considerable future. A new high efficiency fabric therefore higher both in value and research and development effort. washing powder-the first in in volume. We made appreciable In the United Kingdom the Europe to incorporate solvent gains with hair and skin care well-known ‘SR’ brand became the action-was launched in the products and in spite of first ‘anti-plaque’ toothpaste for United Kingdom under the brand considerable competitive activity, improving gum health. Successful name ‘Drive’ and has already we held our own in the toothpaste new shampoos were introduced in achieved substantial success in this market. six countries and new brands of highly competitive market. skin care preparations and perfume Elsewhere new products introduced The growth in our profits in most were also launched. within the last two years, for major markets came partly from example, ‘Atlantik’ toilet soap in increased sales volume and partly Germany, are now firmly established from higher productivity. The as major brands in their markets. improvement in operating margin Some are being extended with was heavily influenced by Lever considerable success to other Brothers Company in the United countries, for example ‘Jif’, our States, where ‘Aim’ toothpaste is international liquid household now successfully established after cleaner specially developed for the heavy launch expenditure of the modern surfaces. ‘Comfort’ fabric previous year. conditioner was successfully introduced in Brazil and New In Europe our major companies did Zealand; ‘Breeze’ and ‘Lyril’ well. Outstanding progress was freshness toilet soaps in India and made in the United Kingdom. In South Africa; ‘Rexona’ toilet soap Germany we improved our position in Central America; ‘Vim’ scouring in an intensely competitive market. powder in Indonesia and a liquid In Spain and Sweden we advanced floor cleaner in Brazil. strongly. An exception was Italy where we experienced a considerable loss in the sales volume of our general toiletries Chemicals, paper, . flexibility in the choice of raw level for most products except some materials for printing ink resins. plastic films, but margins fell as plastics, cost increases could not, in the The results from our chemical conditions prevailing, be recovered packaging companies in Australia, Canada and through prices. The packaging South Africa were slightly below companies in Denmark and Austria 1974 1975 1974. This was a creditable traded satisfactorily. Total sales (FI. million) 2971 2515 achievement in difficult conditions. IncreaselDecrease 32 O/o 15% Substantial capital investment Operating margin 10.4yo 2.9% A major investment plan by continues where, because of the Unilever-Emery in the competitive strengths of our Chemicals Netherlands---our joint venture products, satisfactory returns can be In a most difficult year for the with Emery Industries, Inc., of expected. Development work is chemical industry, our operations Cincinnati-has been approved. concentrated on evolving were no exception. The This will more than double their increasingly sophisticated products, spectacular building up of stocks capacity for the manufacture of improving efficiencies and by our major customers ceased organic chemicals by ozonisation responding to prospective towards the end of 1974. In the of fatty acids. In India there will be movements in raw material costs, as opening months of 1975 the effects a major investment in the building influenced by world markets. of their reduced sales to consumers of a factory for the production of were compounded by heavy phosphate. reductions in their stocks. At the same time, there were heavy falls in Paper, plastics and packaging the price of many of our raw With the general recession and the materials-particularly feedstocks associated heavy stock reductions of natural origin. In consequence, by customers, these industries had we had to reduce our selling prices a difficult year and most of our whilst still consuming high-priced interests suffered accordingly. Our raw materials. Not only were sales shares of the various markets were 20% down on the previous year, in general maintained or improved but there was an even greater but the need to adapt costs to the reduction in profits. reduced levels of activity involved exceptional rationalisation Our companies showed measures and appreciable considerable flexibility in the face redundancies, especially where of these trying conditions, with recovery is likely to be delayed and strict control on all forms of costs. slow.

Substantial benefits resulted from In the United Kingdom Thames changes in product formulation and Board Mills suffered from economies in manpower, energy considerable under-utilisation of its and services. board-making capacity. However, their high quality packaging boards We continued to develop innovative manufactured largely from speciality products. In the United home-grown pulp wood and Kingdom the new Vinyl Products re-cycled paper held their position plant at Warrington, which well. A new corrugating plant was produces high-pressure emulsion opened by Thames Case at polymers, performed well. A Northampton. The business of Nairn satisfactory level of sales was Williamson was acquired. It achieved in its first year of complements that of Commercial operation. New capacity is being Plastics, providing us with a much installed by Crosfields at enlarged base in interior decor Warrington to manufacture products (floorings, wall coverings, speciality water treatment chemicals. surfacings, veneers, etc.) in the In the Netherlands, a major United Kingdom and export extension of the Scado plant for markets. ‘Mayfair’ vinyl manufacturing novel surface wallcoverings continued to increase coating resins is under way. Food their share of home and export Industries, both in the Netherlands markets. and in the United Kingdom expanded their facilities for In the Continental European producing food additives. Sheby, countries our highly diversified in France, has completed a new 4P Group maintained its sales plant which will bring enhanced volume on a comparatively high Animal feeds UAC International

1974 1975 1974 1975 Total sales (FI. million) 2395 2234 Total sales (FI. million) 3328 4258 Increase/Decrease 10% 7% Increase 14010 28% Operating margin 1 .7010 1.5% Operating margin 7.7% 1O.8o/o

Livestock farming throughout UAC International (UACI) had a Western Europe went into a decline very good year in 1975. The group’s during the latter part of 1974 and own sales, as well as those of the remained in the doldrums trade investment companies in throughout most of 1975. Profits which UACI has a management from the industry dwindled under responsibility, showed outstanding the usual pressures of inflating increases. Profits also rose costs and stagnant selling prices. substantially, but world-wide As a result there has been a inflation inevitably caused a further reduction in livestock numbers and increase in working capital. livestock production. During the INDONESIA: Timber extraction in East latter months of 1975, however, Generally speaking, the political Kalimantan where UACI is in partnership with there were signs of improvement in situation in most of the countries in local and other interests. profitability and confidence. which UACI operates was fairly stable. A number of countries in These market conditions adversely tropical Africa suffered from a affected the results of our deterioration in their terms of trade; bedding and furniture manufacture, compound feed businesses. There on the other hand some benefited were again very profitable. was, however, an improving trend from higher world oil prices. The towards the end of the year, geographical pattern of group In radio, electrical and mechanical reflecting the general recovery of sales and profits was affected by goods and services we did very agriculture and the effects of cost these economic factors. In Nigeria well notably in Nigeria, and there saving measures taken by our and the Arabian Gulf states we did was a further marked growth of companies. The United Kingdom particularly well. business in the Arabian Gulf. Our business in particular is deriving ‘Caterpillar’ dealerships in Africa benefit from further reorganisation Most of the main activities of UACI and the United Kingdom had an as well as the recently completed recorded improved results. The outstanding year. Our building construction of seven country mills. medical supplies business did well materials business in the United with growing strength on the Kingdom suffered from depressed Our agricultural merchant technical side including sales of economic conditions but the companies in the United Kingdom surgical equipment. After a slow garden centres did very well. The suffered from the reduced volume start, the foods business finished insurance businesses achieved of activity in both livestock and the year with record results. The further profitable growth. arable farming. motors operation had a good year in West Africa, especially in Nigeria, In French-speaking Africa, there We extended our animal feeds and the complementary operations was a further increase in sales and activities by the acquisition of in the United Kingdom stood up profits with increasing emphasis on interests in feed supplement well to the difficult economic the technical side of the business; businesses in the United Kingdom climate. The G.B. Ollivant Division our textile ventures in these and France. In 1975 both these achieved record results from its countries achieved very good companies suffered from the varied activities. It has continued results. In France we acquired a recession in livestock farming in to expand its office equipment controlling interest in another their home markets but their business. In the United Kingdom, electrical contracting materials associated export operations had a as a result of further acquisitions, business. successful year. there are now 35 branches. Dividends from UACl’s trade We have gained operational Palm Line had a good year in spite investments achieved further experience in the United Kingdom of delays at Nigerian ports and satisfactory growth; including with a prototype commercial-scale poor north-bound cargoes. The significant contributions from the plant for improving the nutritional timber operations did well in nine breweries in four countries in properties of straw as an ingredient Nigeria where the local market was Africa in which we have minority in animal feeds, by means of a buoyant, but elsewhere, especially interests. chemical treatment process which in the Far East, results were badly we have patented and developed. affected by low world prices and This is a promising activity for demand. further development and expansion. Textile manufacture and distribution, and packaging, Plantations low-yielding parts of the business. Exports New activities were successfully The prices we obtained on the launched in groupage, warehousing In 1975 our exports-from over world market for nearly all our and distribution, and specialised 30 countries throughout the world plantation crops fell well below the haulage. -reached a combined total of very high levels of 1974 with a FI. 4 732 million, compared with consequent drop in profits. We substantially increased our FI. 4 530 million in 1974. investment in sections of the Production of palm oil and palm industry where quality of service The values of these shipments from kernels showed some commands a premium. The increase each of the three main exporting improvement on 1974, while that of in third party business was less than countries, and from all other copra was much improved due to that achieved in the more favourable countries combined, since 1973, more favourable climatic conditions conditions of 1974, but was still are as follows: and to the higher yields being satisfactory. obtained from recent plantings. FL million 1973 1974 1975 Rubber production, on the other In the United Kingdom and Ireland The Netherlands 1 388 1 561 1748 hand, was down on 1974 mainly the hanging garment distribution United Kingdom 839 1 087 1 272 because of labour unrest in Nigeria. and specialised haulage businesses West Germany 764 1 087 1 029 performed well. In Germany our Other countries 518 795 663 Our Lipton tea plantation in Sri new national warehousing and Lanka has been nationalised. distribution system had an The main increases in exports from excellent first year. In accordance the Netherlands came from higher with our plan to develop our shipments of edible oils and fats, groupage activities, an interest was and chocolate. Exports of acquired in Unitransa, a leading merchandise, mainly to West Africa, Transport Spanish express parcels service. were also higher. Chemicals exports declined in value. Most of the Our main transport activities are in increase in our exports from the trunk haulage, warehousing and United Kingdom was achieved in distribution throughout the E.C. and the form of merchandise shipped by in Spain; shipping on the Rhine; the UAC International. Other increases Norfolk Line ferries; other coastal were in canned fish, detergents and shipping in northern Europe; toilet preparations. harbour services in the Netherlands, the United Kingdom and Germany; forwarding services in the Netherlands, the United Kingdom, Germany, France and Italy; parcels groupage in various European countries and hanging garment distribution. In 1975 sales increased by about a quarter and nearly half of all revenue came from third parties.

The recession in the haulage industry, of which signs had begun to appear towards the end of 1974, deepened in 1975. Surplus capacity led to severe pressure on freight rates, particularly in general haulage and Rhine shipping. Wage costs continued to increase rapidly, with the result that margins were reduced to 65% of their 1974 level. Our businesses in France and Spain were the hardest hit by the difficult trading conditions.

For our established transport activities the year was one of consolidation. The sales function was strengthened. Programmes for improving efficiency were initiated, and capacity was reduced in

23 (TOP) INDIA: One of the canteens at the Bombay factory of Hindustan Lever which, together with other employee welfare and medical services, contribute to the health of the work force.

(LEFT) SRI LANKA: The industrial medical centre of Lever Brothers (Ceylon) includes a dental surgery and a dispensary which handles both eastern and western medicines,

(BOTTOM) INDIA: A test in progress on ‘Rin’ detergent bar in the Product Assessment Unit at our Bombay Research Centre which employs 225 people.

(RIGHT) INDIA: Hindustan Lever has developed the technology for processing a range of fine chemicals and catalysts, which would otherwise have to be imported. Personnel retirement and death benefit amounted to FI. 412 million in 1975. The total number of Unilever At the end of 1975 the book value employees world-wide is 321 000 of the assets of our funds amounted (1974: 357 000). The previous to FI. 4 194 million (1974: year’s figure included 25 000 FI. 4 089 million) and the provisions employees in Zaire and 1 300 on in our accounts to meet obligations the Lipton tea plantation in Sri under unfunded schemes Lanka. amounted to FI. 808 million (1974: FI. 673 million). These provisions, The depressed economic conditions together with the assets of the of 1975 made it more necessary pension funds, are sufficient in total than ever for us to keep the number to cover all pensions in the course of employees under tight control, of payment at their existing levels but in order to safeguard future and all contractual entitlements to growth we continued recruitment deferred benefits in respect of on a selective basis. service to date.

Much effort has been devoted to Because of the general decline in the best possible deployment of world stock market values, the manpower resources. Training market value of the assets at the methods have been further end of 1974 was below book value. developed to improve individual and However, stock market values have group work effectiveness. risen significantly in 1975 and at the year-end the market value was We have devoted special efforts to above book value. For the longer the training of nationals of term current market values are less developing countries both in their important to pension funds than the home countries and elsewhere. profitability of industry and its effect Specialist training has been given on income yields. in accounting, marketing, management, engineering, work We pointed out last year that methods, safety and other subjects. during the inflationary conditions This policy has enabled us to make of 1974 the investment income of significant reductions in the our funds had failed to keep pace proportion of expatriates with pay increases, and that after employed in developing countries, actuarial reviews it had been thereby providing better necessary to increase contribution opportunities for nationals of those rates. The effect was to increase countries. total Company contributions from 1975 by FI. 43 million per annum Our well established appraisal in addition to the increases which systems are continuously developed would have resulted from applying and their application extended so as the normal contribution rates to to ensure that the best use is made 1975 pay levels. Unless our of individual talents and potential. investment returns improve in relation to pay increases, further We have continued to improve increases in contribution rates must methods of informing our employees be expected in 1976 and thereafter. about the business and the reasons for, and intentions behind activities and decisions. In doing so we have special regard to local requirements, and we attach the greatest importance to establishing communication channels voluntarily and with the participation of our staff.

Pensions Our contributions to our own pension schemes amounted to FI. 275 million in 1975. Contributions to state schemes and other payments for employees’ Research and problems and staffed by Turkish scientists, Similar projects are under development consideration for certain other overseas countries and preliminary Regular evolution of new products surveys have been made in Asia which are commercially viable, and Latin America effective, attractive and safe would not be possible without research In India, Hindustan Lever’s and development activity. Major substantial research centre has been breakthroughs are rare but progress of mutual value to country and in the commercial application of our company. research and development has been continuous. We continued to make steady progress in the control of effluent For example, our knowledge and from our factories. Members of our experience of bakery fats and of staff take an active part in the work packaging and keepability enabled of various national and international us to develop pre-baked or committees concerned with part-baked bread which remains protecting the environment. stable at ambient temperatures for 10 weeks, and can then be Our total expenditure on research finished by the housewife in and development in 1975 amounted 10 minutes to provide freshly-baked to FI. 423 million (1974: FI. 372 bread when needed. This product is million). now in test market in the Netherlands and in the United Kingdom. In foods generally, our achievements have included a method of growing carrots in the United Kingdom for freezing; new varieties of peas specially bred to extend the harvest season and improve quality; and a steady increase in quality of re-formed meat.

Our increasing knowledge of detergent active systems in both hand dishwash and fabric wash products has enabled us to use ingredients more effectively and profitably. As mentioned earlier in this Review, an effective toothpaste to reduce plaque on teeth has been developed and marketed after five years of basic research, evaluation, consumer testing and clinical testing.

Basic research into the properties of potential ingredients, development of alternative formulae and market research have led to the successful launching of a skin moisturising hand cream (‘Elida Handbalsam’) in several countries.

For many years we have given special attention to the business and natural resource problems of the developing countries. Our activities have now been complemented by the establishment of a small research group in Turkey entirely concerned with local

26 Quarterlv / results

FI. million Sales to Operating Profit Earnings third parties profit attributable to per share ordinary capital guilders per FI. 20 pence per 25p 1974 1975 1974 1975 1974 1975 1974 1975

1 st Quarter 7 935 8 626 581 228 278 61 FI. 4.99 FI. 1.10

23 01~ 23 01~ 28 O/o 12% 30 % 8 O/o 12.65~ 2.96p

2nd Quartet 8 625 9218 581 446 254 144 FI. 4.56 FI. 2.58

25 “lo 25 01~ 28 Oh, 22 % 28 O/o 19% 11.61~ 7.27~

3rd Quarter 8 631 9100 516 675 227 276 FI. 4.07 FI. 4.95

25 01~ 25 of0 24 01~ 34 % 25 01~ 36 O/c, 10.37p 13.73p

4th Quarter 9 280 9 761 431 637 156 290 FI. 2.81 FI. 5.21

27 O/t, 27 01~ 20 Olcl 32 01~ 17 Olo 37 % 7.13p 14.27~

Total year 34 471 36 705 2109 1 986 915 771 FI. 16.43 FI. 13.84

100 y. 100 o/o 100 y. 100 Olo 100 y. 100 ojo 41.76~ 38.23~

The published results for each of the quarters of 1974 and 1975 have been recalculated at the year-end rates of exchange which have been used for the results of the respective years.

The figures in the table therefore differ from the figures originally published for each quarter. Dividends

The proposed appropriatiom of the balance of Limited’s ‘I 975 isnai profits of N.V. and Limited are dividend which together with the shown in the consolidated profit deferred balance of earlier dividends and loss account on page 36. will amount in total to 9.48 pence per share, will be paid when The Boards have resolved to circumstances permit to holders of recommend to the Annual General Ordinary capital now in issue Meetings on 12th May, 1976 the registered at the time of payment declaration of final dividends in respect of 1975 on the Ordinary For the purpose of equalising capitals at the following rates, dividends under the Equalisation which are equivalent in value in Agreement the United Kingdom terms of the Equalisation Agreement: Advance Corporation Tax in respect of any dividend paid by Limited N.V. has to be treated as part of the per FI. 20 ordinary capital dividend. If the rate of United Interim FI. 2.93 Kingdom Advance Corporation Tax is changed from the current rate of Final FI. 4.72 thirty-five sixty-fifths before Total FI. 7.65 payment of these dividends has (1974: FI. 7.25) been completed, the figures now announced will be adjusted Limited accordingly and a further per 25p ordinary share announcement made. Interim 5.24~ Final dividends on the New York Final 8.43~ shares of N.V. will be payable as Total 13.67~ from 11 th June, 1976, and those (1974: 12.09p) on the American Depositary Receipts representing ordinary The above proposals represent an capital of Limited as from 1st June, increase of 5.5% in N.V.‘s total 1976 to holders of record on dividend for 1975. The N.V. final 22nd April, 1976. dividend of FI. 4.72 will be available from 24th May, 1976. After provision for the Ordinary dividends for 1975 it is proposed to Because of the fall since last year set aside FI. 266 million (N.V. in the sterling/guilder exchange FI. 150 million, Limited FI. 116 rate, Limited will be obliged under million) to reserve for replacement the Equalisation Agreement to of fixed assets (on behalf of increase its total dividend subsidiaries). declarations for 1975 by an amount which exceeds the statutory limit of 10% currently in force for United Kingdom companies. As before the Treasury have agreed to such declarations by Limited subject to the condition that the total amount paid to shareholders by way of dividends for 1975 is kept within the statutory limit and payment of the balance of 1975 dividends is postponed.

It is therefore again proposed to make the final dividend of Limited payable by instalments. The first instalment of 6.38 pence per share will be paid on 24th May, 1976 to shareholders registered in the books of the Company on 23rd April, 1976. This payment will bring Limited’s dividend payments for 1975 up to 10.18 pence per share which is within the statutory limit. The

28 Capital and membership

During 1975 there was no change At the year-end Limited had 86 997 in the share capital of N.V. or ordinary and 1 176 preferential Limited. N.V. issued FI. 125 shareholdings and 93 028 million 83/4o/o notes 1981/85 to debenture and unsecured loan replace the 8% notes 1975 which stockholdings. As N.V.‘s share and were redeemed on 1st December, loan capital is held by the public 1975, and DM 100 million 81/2O/o largely in the form of bearer scrip. notes 1981187. it is impossible to ascertain the total number of holders or the The outstanding 3 3/4o/o debenture proportions held by different classes stock 1955/75 of Limited was of holder. redeemed.

Other changes m roan capital are shown in the Notes to the consolidated balance sheets on page 41. Directors Auditors

In accordance with Article 21 of the The auditors, Price Waterhouse Articles of Association all the & Co., The Hague, and Coopers & Directors named on page 1 will Lybrand Nederland, Rotterdam, retire from office at the forthcoming retire and offer themselves for Annual General Meeting and will reappointment. offer themselves for re-election. It is also intended to nominate Mr. G. K. G. Stevens for election as a Director at the Annual General Meeting.

Mr. A. I. Anderson and Mr. R. H. Del Mar retired on 27th February, 1976. Mr. Anderson joined Unilever in 1935 and became a Director of N.V. and Limited in 1970. Mr. Del Mar joined Unilever in 1937 and became a Director of N.V. and Limited in 1968. Both these Directors have served Unilever with distinction and their colleagues wish to record their appreciation of the contribution each has made to the development of the business.

Mr. H. F.van den Hoven was appointed Chairman of N.V. and a Vice-Chairman of Limited following the retirement in 1975 of Mr. G. D.A. Klijnstra.

At the Annual General Meetings on 13th May, 1975 Mr. H. Meij was elected a Director of both Companies.

BY ORDER OF THE BOARD, C. ZWAGERMAN Secretary H. A. HOLMES Secretary

23rd March, 1976. Accounts

N.V. and Limited are linked by a series of agreements of which the principal is the Equalisation Agreement. Inter alia this equalises the rights of the ordinary capitals of the two Companies as to dividends and, on liquidation, as to capital value, on the basis of FI. 12 nominal of N.V.‘s ordinary capital being equivalent to fl of Limited’s ordinary capital. Combined figures are given for the information of shareholders.

Reports of the Auditors

N.V. Group’ ) Limited Group

To the Members of Unilever N.V To the Members of Unilever Limited

In our opinion the accounts and the In our opinion the accounts and the notes relevant thereto set out on notes relevant thereto set out on pages 4 and 5, 31 to 45 and 50 to pages 4 and 5, 31 to 43 and 46 to 52 together give a true and fair 52 together give a true and fair view of the state of affairs of the view of the state of affairs of the Company and the Group at Company and the Group at 31st December, 1975 and of the 31 st December, 1975 and of the profit of the Group for the year then profit of the Group for the year then ended and comply with the ended and comply with the United Netherlands Act on Annual Kingdom Companies Acts 1948 and Accounts 1970. 1967.

Price Waterhouse & Co. Coopers & Lybrand The Hague London

Coopers & Lybrand Nederland Price Waterhouse & Co. Rotterdam London

23rd March, 1976 23rd March, 1976 Accounting policies

Companies legislation account of Article 14(3) of the for obsolescence. Cost-mainly The accounts comply with the Netherlands Annual Accounts Act averaged cost-includes direct Netherlands Annual Accounts Act 1970. expenditure and, where appropriate 1970 and the United Kingdom a proportion of manufacturing Companies Acts 1948 and 1967. Recognising the seasonal nature of overheads. The recommended standards in the their operations, some companies Netherlands and the United having substantial interests in Africa Debtors are stated after deducting Kingdom have been implemented close their financial year on 30th adequate provisions for doubtful except where any change from September. Their accounts at this debts. present policy would have no date are included in the material effect. consolidation. Marketable securities represent liquid funds temporarily invested Foreign currencies Trade investments and are shown at their realisable The policy is to use closrng rates of These are minority investments in value. exchange, those current at the companies with which N.V. or year-end, for translation of all assets Limited has a long-term trading That proportion of loan capital and liabilities in foreign currencies relationship. There are some 200 which is repayable within one year into the reporting currencies in such investments in businesses is included in loan capital. which N.V. and Limited’s throughout the world. consolidated accounts are prepared, Deferred liabilities guilders and sterling respectively. A statement summarising the Unfunded retirement benefits The effect of restating the opening interest in the results and net assets represent the estimated present balances in 1975 at 1975 closing of all trade investments is given on value of the future liability for rates is an addition to profit page 43. These are not significant retirement and death benefits to retained of FI. 89 million in N.V. in relation to the consolidated past and present employees other and FI. 59 million in Limited. 01 results or capital employed. than benefits provided through the total addition of FI. 148 million, pension and provident funds. FI. 108 million (N.V. FI. 56 million, Trade investments are shown at Limited FI. 52 million) is in respect cost less FI. 15 million written off Taxation not due before 1 st Januarv. of land, buildings and plant. in N.V. and FI. 23 million written 1977 includes United Kingdom off in Limited and dividends are corporation tax on the profits of The effect of exchange rate changes accounted for when received. The 1975 and FI. 242 million in respecl during the year on transactions is principal trade investments are of tax postponed on increases in included in operating profit. listed on page 52. stocks in the United Kingdom in 1973 and 1974 together with For the purpose of the combined Goodwill certain other countries’ taxes not sterling figures all Limited figures Since no value is attributed to due before that date. are converted at the rate of fl = goodwill in our businesses the FI. 5.90 in 1974 and f 1 = FI. 5.43 excess of the price paid for new Deferred taxation arises mainly from in 1975, except for the ordinary interests over the value of the net the charge made to profits in capital of Limited which is tangible assets is deducted from respect of the tax postponed converted, as in past years, at the profit retained in the year of through fixed assets being written Equalisation Agreement rate of acquisition. off in some countries more rapidly fl = FI. 12. The effect of for tax purposes than under the converting all other balance sheet Depreciation group depreciation policy, less the items at 1st January, 1975 at the Depreciation of fixed assets is estimated future tax relief on the 1975 closing sterling/guilder rate is provided by the straight line method provision for unfunded retirement reflected in profit retained and at percentages of cost related to the benefits. shown separately as sterling/guilder expected average lives of the assets. realignment, FI. 213 million (1974: The provision for deferred taxation FI. 246 million). To make provision towards the at 31st December, 1974 has been higher cost of replacing existing adjusted for subsequent changes in Consolidated companies assets an annual allocation is made rates of tax the effect of which is Companies included in the to fixed asset replacement reserve included in tax adjustments consolidated accounts are those in from the profit of the year retained. previous years. which N.V. or Limited holds This allocation is the amount by directly or indirectly more than 50% which depreciation calculated on No provision has been made for the of the equity or more than 50% of estimated replacement value tax which would become payable if the total issued capital, or bemg a exceeds the depreciation charged retained profits of subsidiaries shareholder controls the in the consolidated accounts. were distributed to the parent composition of a majority of the companies as it is not the intention Board of Directors. Net current assets to distribute more than the Stocks are consistently stated on dividends, the tax on which is The list of principal consolidated the basis of the lower of cost and included in the accounts. companies on pages 50 to 52 takes net realisable value, less provisions

32 General Expenditure on research and the development of new products is charged against profits of the year in which it is incurred. General notes to the accounts

Ordinary shareholders’ equity FI. million the business and their continued Ordinary shares numbered 1 to suitability for these purposes is kept 1974 1975 2400 (inclusive) in N.V. and the under review. In these deferred stock of Limited are held Bank advances circumstances it is considered that as to one-half of each class by N.V. 35 55 an assessment of the market value N.V. Elma-a subsidiary of N.V.- Limited 40 80 of all interests in land throughout and one-half by United Holdings Combined 75 135 the world would not produce Limited-a subsidiary of Limited. information of significance to This capital is eliminated in Creditors members or debenture or consolidation. It carries the right to N.V. 12 14 unsecured loan stockholders in nominate persons for election as Limited 4 terms of Section 16 of the United directors at general meetings of Combined 16 14 Kingdom Comoanies Act 1967. shareholders. A nominal dividend of 1/4o/o was paid on this deferred Bills discounted stock and the above-mentioned at 31 st December subsidiaries have waived their amount to: rights to dividends on their ordinary N.V. 126 129 shares. Limited 20 24 146 153 The directors of N.V. Elma are N.V. Combined and Limited, who with Mr. H. F. van den Hoven and 1974 Dividends Mr. D. A. Orr are also directors of The change in the rate of Advance United Holdings Limited. Corporation Tax in the United Kingdom reduced the amount of Contingent liabilities the final dividend for 1974 payable Contingent liabilities are not to Limited shareholders in order to expected to give rise to any material maintain equalisation with the loss and include guarantees, security N.V. dividend. The Combined and issued and bills discounted as set Limited dividend figures in respect out below. of 1974 have, therefore, been reduced by FI. 3 million from those Long-term commitments in respect published last year. of leaseholds, rental agreements, hire purchase and other contracts General are mainly in respect of buildings The close company provisions of and computers. The commitments the United Kingdom Income and are not material. Corporation Taxes Act 1970 do not apply to Limited. The parent companies have given guarantees in respect of subsidiary The Trustees of the Leverhulme companies’ liabilities included in the Trust have waived their right to that consolidated accounts. proportion of the 1974 and 1975 dividends on the Trustees’ holding Guarantees given by subsidiaries of of ordinary shares of Limited which N.V. and Limited amount to: would flow back to the Company through its wholly owned subsidiary FI. million which has a beneficial interest in 1974 1975 the income of the Trust.

N.V. 94 153 Interests in land Limited 145 137 N.V. and Limited have interests in Combined ~ 239 - 290 land in Europe, North and South America, Africa, Asia and Security has been issued in Australasia. Such interests are respect of: developed either as purpose- designed factories, warehouses and Loan capital trading establishments with ancillary N.V. 176 204 offices and laboratories or as Limited 219 163 plantations. Substantially all the Combined 395 367 land and buildings are fully used in Accounts Unilever N.V. and Unilever Limited and their subsidiaries

Consolidated profit and loss accounts

for the year ended 31 st December Figures m italics represent deductions FI. million 1974 1975 Limited N.V. Combined Combined N.V. Limited

14401 20 070 34 471 Sales to third parties 36 705 21 088 15617 13 436 18 926 32 362 Costs (a) 34 719 20 228 14 491

965 1 144 2109 Operating profit 1 986 860 1 126 Non-recurring items (b) 67 22 45 2: 119 -17 Income from trade investments (c) 36 4 32 58 101 159 Interest (d) 174 133 41

926 1 041 1 967 Profit before taxation 1 781 709 1 072 469 484 953 Taxation on profit of the year (e) 909 377_- 532 13 5 8 Taxation adjustments previous years 26 18 7

444 562 1 006 Profit after taxation 898 351 547 Outside interests and preference 42 49 91 dividends (f) 127 32 95

Profit attributable to ordinary 402 513 915 capital 771 319 452

Combined earnings per share (g) FI. 16.43 per FI. 20 of capital FI. 13.84 41.76~ per 25p of capital 38.23~ I

Extraordinary items less taxation - - and outside interests -

402 513 915 Profit after extraordinary items 771 319

Dividends on ordinary and 113 232 345 deferred capital 362 245 117

289 281 570 Profit of the year retained 409 74 335

Movements in profit retained Goodwill on acquisition of new 20 63 83 subsidiaries 4 3 1 15 128 143 Effect of exchange rate changes 148 89 59 246 - 246 Sterling/Guilder realignment 213 - 213 289 281 570 Profit of the year retained 409 74 335 of which added to fixed asset I 70 96 166 I replacement reserve 266 150 116 1

8 98 Net additions to profit retained 340 160 180 2 667 34;: 6 087 Profit retained-l st January 6 185 3 510 2 675

2 675 3510 6 185 -31 st December 6 525 3 670 2 855

The nores on pages 31 to 34, 38 and 39 form part of these accounts. 36 The letters between brackets refer to notes on pages 38 and 39. Unilever N.V. and Unilever Limited and their subsidiaries

Consolidated balance sheets as at 31 st December Figures in italics represent deductions FI. million

1974 1975 Limited N.V. Combined Combined N.V. Limited Capital Employed

30 265 295 Preferential share capital (h) 293 265 28

7 199 Ordinary shareholders’ equity 7513 4362 3151 Ordinary share capital (i) 1 189 640 549 6525 3670 2855 201 52 253

155 172 327 Outside interests in subsidiaries 381 168 213

649 1471 2 120 Loan capital (I) 2223 1638 585

619 799 1 418 Deferred liabilities (m) 1 759 943 816

35 35 - Inter-Group-N.V./Limited - 8 8

4485 6874 11 359 1 2169 7368 4801

Employment of Capital

2 231 3346 5577 Land, buildings and plant (n) 5958 3 681 2277

76 121 197 Trade investments (0) 256 121 135

174 117 291 Long-term debtors (p) 184 135 49

2597 3 261 5858 Working capital 5336 2652 2684 Stocks (q) Debtors (r) Creditors (s)

368 271 639 Provision for taxation 6.94 282 412

146 749 295 Dividends 334 167 773

79 449 370 Net liquid funds 1463 1222 241 183 161 344 Marketable securities (t) 262 200 62 233 976 1 209 Cash and deposits 2270 1568 702 495 688 7183 Short-term borrowings 1 069 546 523

4485 6874 11 359 12 169 7368 4801

The notes on pages 31 to 34 and 40 to 43 form part of these accounts The letters between brackets refer to notes on pages 40 to 43. 37 Notes to the consolidated profit and loss accounts

Figures in italics represent deductions FI. million

1974 1975 Limited N.V. Combined Combined N.V

13 436 18 926 32 362 (a) Costs 34 719 20 228 14 491 6 662 II 099 17 761 19 038 11673 7 365 239 423 662 692 445 247

2 149 3 719 5 868 6 684 4231 2 453

4 5 9 10 6 4 2 3 5 5 3 2 55 71 126 138 80 58 5 6 11 13 7 6 4 320 3 600 7 920 8 139 3 783 4 356

9 9 45 I

19 I 20 45 ~ - ‘> ~ IO 22 SL 12 12

17 (c) Income from trade investments 36 4 r-- 8 QLiOtPdshar+ 23 3 18 14 6 3 3 2 12 4 7

58 101 159 (d) Interest 174 133 47 47 83 130 Interest on loan capital 184 124 60 ~ 56 130 186 Interest pald on short-term borrowrngs 173 113 60 Interest received rncludlng change In ; i , 157 market value of marketable secuntres

Interest on loan capital includes: Interest on loans, the final repayment of 4 40 44 which will be made within 5 years 85 62 Notes to the consolidated profit and loss accounts

Figures in italics represent deductions i-i;. <::;I! So,,

1974 1975 Combined Combined N.V. :

(e) Taxation on profit of the year 469 for Limited is made up of: 532 334 U K corporatron tax’) 358 less. double tax relref 259 plus. non U.K taxes 318

‘) The U K corporatron tax for 1975 has been based on a rate of 520/0 (1974 52Ve) The charge rncludes FI 59 mrllron (1974, FI 94 mrllionl transferred to Deferred taxation

(f) Outside interests and 42 49 91 preference dividends 127 32 95 40 34 74 ‘,.!!.:,,a !y!.<.r:y!r, 110 17 93 2 15 17 ~ P .\.FL~ii,L.? .:,t’:i;(‘;,r,‘~ 77 15 2

(g) Combined earnings per share The calculatron of earnrngs per share IS based on the combrned profit of the year attributable to ordrnary caprtal drvrded by the combined number of share unrts representrng the combined ordrnary caprtal of N.V. and Limited of FI 1 189 mrllron (as set out on page 40) less FI. 75 mrllron (1974 FI. 75 mrllton) berng 74O/e (1974 74%) of the ordinary caprtal held by the Leverhulme Trust on whrch the rights to drvrdends whrch would flow back to the Company, have been warved. For the calculatron of combrned ordinary capital the rate of exchange fl = FI. 12 has been used, rn accordance wrth the Equalrsatron Agreement The combined number of share unrts IS therefore 55 719 254 (1974 55 719 248) of FI 20 or alternatrvely, 371 461 691 (1974 371 461 654) of 25 pence

The calculations for 1974 and 1975 are therefore: Profit attributable to ordinary capital (see FI. 91 5 mrrrron we 36) 55 719 248 Drvided by units of Fl. 20 FI. 16.43 = 155.1 million Sterling equivalent 371 461 654 Divided by units of 25~ 41.76~ = Notes to the consolidated balance sheets

Figures in italics represent deductions

1974 1975 1974 1975 Authorised Issued and fully paid

(h) Preferential share capital (FI mllllon) 295 293 FI. million Unilever N.V. FI. million 75 75 7 o/o Cumulative Preference Ranking 29 29 t 200 200 60/O Cumulative Preference par! 161 161 75 75 4o/o Cumulative Preference i passu 75 75 350 350 265 265 fmillion Unilever Limited’) fmillion 0.2 02 So/, First Cumulative Preference 0.2 0.2 35 35 7o/o First Cumulative Preference 3.5 3.5 12 12 8% Second Cumulative Preference 1.2 1.2 02 02 2O”/o Third Cumulative Preferred Ordinary 0.2 0.2 51 51 5.1 5.1 Gullder equivalent (mllllon) 30 28

‘) The rates shown for the preferential capital of Limited are before the reduction of three- tenths which followed the Introduction of the imputation system of taxation in the United Kingdom in April 1973.

The 4(/o cumulative preference capital of N.V. IS redeemable at par at the Company’s optlon either wholly or In part

(i) Ordinary share capital (FI. milllon) 1189 1189 FI. million Unilever N.V. FI. million 1 002 Ordinary 642 642 internal holdings ellmlnated in consolidation 2 2 640 640 fmillion Unilever Limited fmlllion 136.2 Ordinary (In 25p shares) 45.8 45.8 01 Deferred 0.1 01 Internal holdlngs ellmrnated In consolldatlon 0.1 0.7 45.8 45.8 Guilder equivalent (mlllion) 549 549

FI. million

1974 1975 Limited N.V. Combined Combined L;mired (j) Profit retained Includes cumulative 267 406 673 fixed assets replacement reserve 918 362

227 52 175 (k) Other reserves 253 52 52 104 Premiums on capital Issued 100 48 ’ Adlustment on converslon of Limited’s 279 279 ordinary capital at fl = FI 12 301 301 Notes to the consolidated balance sheets

Figures in italics represent deductions

1974 1975

2120 (I) Loan capital / FI rnrrllron) 2 223 i 1F1. million Unilever N V FI. million i 255 6o/o Notes 1972,91 240 121 So/, Notes 1975 100 IO 1/z”/, Eurogurlder Notes 1979 100 52 93l,“/, Euro DM Notes 1981 (DM 50 mrilron) 52 8 ‘1, “lo Notes 198 1 I85 I25 57 6 J/,o/, Notes 1981/86 (SWISS Frs 60 mrllron) 62 81/20/0 Notes 1981/87 (DM 100 mrllron) 104 585 683

Subsidiaries 97 Netherlands. 4’/,O/, Loans 1986187 88 100 9 3/a o/o Loans 1 989 100 Germany 3 ‘I2 o/0-8 ‘/,O/, Mortgage loans on shops 97 repayable period to 1989 (DM 91 4 mullion) 95 21 1 l()/o Bank loan 1979 (DM 20 nrrllron) 21 51 10’/i,“/,, Mank loan 1979 (U S $20 mrllron) 54 41 IJ SA 45/Ho/0 Notes 1973182 (U S $14 mrliron) 38 76 7Y,,O/, Notes 1982/97 (U 5 $30 mrllron) 81 96 Curacao 7?/,% Notes 4 979 (SWISS Frs 100 mrllron) 103 96 83/40/0 Notes 1979 (SWISS Frs 100 mrllron) 103 211 Others 272 1 471 1 638

Emiilion Unilever Limited fmlllion 67 3 ‘/J “J/t, Debenture stock 19551 75 HAIJXII)~ J 94 4 “/ Debenture stock 1960/80 par, 110 6 ‘/~Oi,i Debenture stock 1985/88 i /~,rsao 22 5 ‘/,“/, Unsecured lodn stock 1991 /ZOO6 / R,;/?k//~q 54 7 7 ‘/,I’/, Unsecured loan stock 1991/2006 \ odrr passu 02 Others 84.2

Subsidiaries 3.2 Canada 6V0 Debenture Serves A 1985 (Can $7 mrllron) 34 86 8 7/e c/0 Debenture Serves B 1993 (Can $20 mrllron) 9.8 3.4 Australra 7 ‘/40/0 Debentures 1982/87 tAust $6 mrllron) 3.7 10.5 Others 13.8 109.9 649 Gurlder equrvalent (mrllron)

The issues of debenture stock of Limited are secured by a During the year f0.2 of the 4O/, stock floating charge on the assets of the Company was purchased by the Company.

FI. million

1974 1975 Limited N.V. Combined Combined N.V. Limited The repayments fall due as follows: 50 177 227 Within 1 year 84 71 13 28 661 689 After 1 year but within 5 years 807 708 99 88 309 397 After 5 years but within 10 years 555 520 35 138 285 423 After 10 years but within 20 years 422 301 121 345 39 384 After 20 years 355 38 317

Loans on whrch the final repayment wrll 583 835 1418 be made after 5 years amount to 1 577 1 090 487

41 Notes to the consolidated balance sheets

Figures in italics represent deductions

1975 Combined

1 759

194 194

5 958

/ 2”

1 _ i,, 383 334 334 4 >‘> 44 148 56 92 112 418 278 140

13

L sr 187 157 157 95 227 418 278 140 Notes to the consolidated balance sheets

Figures in italics represent deductions FI. million

1974 1975 Combined Combined

197 64 83 50

18 32 50

339 25

68 42 I?0

45 1 1 0

(p) Long-term debtors ’ I

6543 5857 3077 2578 1672 ^_ i 1823 1 149 ‘- 1456 256

(r) Debtors I-’

1795 2620 4415 4439 2559 1880 1204 1416 2620 2452 1235 12171

33 44 77 70 39 558 1160 1718 1917 1285

161 344 (t) Marketable securities 101 274 Quoted-at market value 60 Unquoted 70 Unilever N.V. balance sheet

25 ai 31at Deccwlh~r Figures in italics represent deductions Fl. BOO’s

1974 1975 Capital employed

265 060 Preferential share capital (h) 265 060

Ordinary capital and reserves 642 565 Ordinary share capital (i) 642 565 52 166 Premiums on capital issued 52 166 1 333 162 Profits retained 1 503 156 2 027 893 2197887 585 180 Loan capital (I) 682 740

24411 Deferred liabilities 16 834

19 523 Inter-Grouwlimited 16295 2 883 021 3146226

Employment of capital

Interests in subsidiaries 304 631 Shares 304 640 2 363 498 Advances 2 162006 118017 Deposits 30 271 2550112 2 436 375 203 Long-term debtors 918

Working capital 43 472 Debtors 64 509 88 054 Creditors 128 486 39 582 63 977 13 121 Provision for taxation 39 674

148 105 Dividends due or proposed 157 873

Net liquid funds Marketable securities 12661 Cash and deposits 957 796 533 514 970 457 2 883 021 3146226

The Board of Directors. Unilever N.V.-Notes

Ftgures m italics represent deductlons FI 000’s

1974 1975 For the application of Article 44 of the Income Tax Act, 1964, only a small part, if any, of the premium shown in the balance sheet is available for issue of tax free bonus shares.

Profits retained 1st January Profn of the year retained of whrch Frxed assets replacement reserve (on behalf of subsrdranes)

31 st December of which: Fixed assets replacement reserve

Loan capital Includes an amount of FI 15 mrllton repayable wrthrn one year

Deferred liabilities represent provision for deferred taxation.

Interests in subsidiaries Shares in subsrdianes are stated at cost. Profits retamed and the profrt of the year shown in this balance sheet and the notes thereto are less than the amounts shown under these headings in the consolrdated balance sheet and profit and loss account mainly because only part of the profits of

the subsrdranes IS drstributed in the form of drvrdend

Debtors include: 1 Trade debtors 3 363 Payments in advance

Creditors Include: 7 939 Debts to suppliers

Marketable securities 64 666 Quoted stocks

Profit and loss account 469 442 Profit of the year

Proposed profit appropriation in accordance with article 41 of the Articles of Association 469 442 Profit of the year 429 551 14 694 Preference dividends 14 694 Profit at disposal of the annual general meeting 454 748 of shareholders 414 857 232 060 Ordinary dividends 244 863 222 688 Profit of the year retained 169 994 Unilever Limited balance sheet i/ I r!eccin!;p! Figures in italics represent deductions frnilli:3El

Capital employed

5.1 Preferential share capital (h)

Ordinary and deferred capital and reserves Ordinary share capital (i) Deferred capital (i) Premiums on capital issued Profits retained and other reserves 268 0 84 2 Loan capital (I)

11.6 Deferred liabilities 20.4

so Inter-Gr0upN.V. 4 I 351 7 .-:s!? 3

Employment of capital

Land, buildings and plant

Trade investments

Interests in subsidiaries 209.2 Shares 219 !; 25iI.I Advances 214 ii 109.0 Deposrts 143.8 290.4? Working capital 32 Stocks 25 9 6 Debtors 144 14.7 Credrtors 12.7 1.9 15.7 Provision for taxation

24.7 Dividends due or proposed

Net liquid funds 29 I Marketable securities 8.5 24 Cash and deposits 83.7 18.4 Short-term borrowings 13.1 92.2 351.7 359.2

The notes on pages 32 to 34, 40, 41 ana 47 to 4Y form part ot these accounts. The letters between brackets refer to notes on pages 40 and 41. Unilever Limited-Notes

Figures in italics represent deductions

Profits retained and other reserves 1 st January Proftt of the year Bonus shares from subsrctranes Preferenttal dtvtdends 0.3 Drvrdends on ordinary and deferred capnal 21.6 Profit of the year retained ‘. of whrch Fixed assets replacement reserve (on behalf of subsidtanes)

31 st December * I of whrch. Fixed assets replacement reserve

Deferred liabilities: Unfunded retirement benetlts U.K. corporation tax 22.8 Advance Corporation Tax Deferred taxation

The Advance Corporation Tax borne by the parent company wrll be surrendered and set off against llablllties of the subsrdlary compantes.

Land, buildings and plant: Land and buildings--freehold -leasehold--long-term (50 years or over) -leasehold-short-term Plant and equipment

cost Denrectatlorl

30.3 11.0 3.1 0.1 0.7 0.7 1.6 32.6 11.9 Unilever Limited-Notes

Figures in itahcs represent deductions fmilllon

1974 Trade investments at net book value at 31 st December, 1947 with additions at cost or valuation less f0.9 written off: 1.2 Quoted shares 0.8 Unquoted shares 0.3 Loans 2.3

15 Market value of quoted shares

Directors’ valuation of unquoted shares-on the basis of the book value of underlying net assets

Interests in subsidiaries Shares in subsidtaries are stated at Directors’ valuation made on the re-arrangement of the Unrlever Groups m 1937, wrth bonus shares at par and other additions at cost or valuatron, less amounts wntten off.

Profits retained and the profit of the year shown in this balance sheet and the notes thereto are less than the amounts shown under these headings in the consolidated balance sheet and profit and loss account, mainly because only part of the profits of the subsidiaries is distributed in the form of dividend.

Dividends due or proposed Payable January/May 16.2 Deferred Instalment Frnal drvidend 1974 9.5 Deferred dividends 1975 5.5 31.2

Marketable securities Quoted-at market value 8.5

Profit of the year is after chargtng Auditors’ remuneration 0.06 Unilever Limited- -Notes

Emoiuments of Directors and senior Directors Senior employees employees 1974 1975 1974 1975 The adjoining table shows the numbers of 5 f2 501- f5 000 Directors of the Company (excluding the f5 OOI- f7 500 Chairmen) and the numbers of employees 5 f7 501-flOOOO - - (including Chairmen and Directors of wholly f10001-f12500 180 296 owned subsidiary companies) employed 3 f12501Lf15000 103 147 wholly or mainly in the United Kingdom 2 f15001-f17500 60 65 and receiving emoluments in excess of f 17 501 -f 20 000 28 57 fl0 000, whose emoluments fell within the 2 f20 OOlLf22 500 19 24 ranges shown. f22 501-f25 000 10 16 4 f25 OOI-f27 500 3 14 During the year there were two Drrectors who 2 f 27 501 -f 30 000 1 8 served for only part of the year (1974. 12) f 30 001 -f 32 500 1 3 The Charrman of Limited Mr. D.A. Orr f 32 501 -f 35 000 4 4 recerved remuneratron of f56 000 (In 1974 f35 OOI-f37 500 2 Mr. D. A. Orr recerved f50 105 mcludmg f37 501-f40 000 2 f34 938 as Chairman. Srr Ernest Woodroofe f40 OOl-f42 500 1 recerved f8 375 as Charrman). f42 501-f45 000

All contracts of service of Directors of the 27 24 414 Company with the Company or any of its subsidiaries are determinable by the employing company without payment of compensation at less than one year’s notice.

Effect of United Kingdom taxation Gross Retirement Tax Amount on emoluments emoluments contributions received The foregoing table deals with gross tr f f f emoluments before taxation. The table 5 000 400 1 085 3 515 adjoining gives examples of the amounts 8 500 680 2 380 5 440 which would actually have been received, 10000 800 3105 6 095 after United Kingdom taxation at the rates in 12500 1 000 4 470 7 030 force for 1975, by a married man with two 15000 1 200 5 980 7 820 dependent children, no other source of 17 500 1 400 7 590 8510 income, and no deductions other than an 20 000 1 600 9 295 9105 8% contribution to a Unilever retirement 22 500 1 800 11020 9 680 scheme: 25 000 2 000 12865 10135 27 500 2 200 14 775 10525 30 000 2 400 16685 10915 32 500 2 600 18590 11310 35 000 2 800 20 500 11700 37 500 3 000 22410 12090 40 000 3 200 24 320 12480 42 500 3 400 26 225 12875 45 000 3 600 28135 13265 47 500 3 800 30 045 13655 50 000 4 000 31 955 14045 52 500 4 200 33 865 14435 55 000 4 400 35 770 14830

49 Principal subsidiaries

(Preference capital held 9Y0/,,) E Noack s Koninklilke Fi~ne Vleeswaren en Conservenfabrleken B V Arnersfoort Handelmaatschapplj Noorda I? V Rottetdam Norfolk Line B V, ‘s-Gravenhage Saflal B V Rotterdam 75 Saponla , Maatschappl] tot Beheer van Aandeelen I” lndustrteele Ondetnemrngen B V, Rotterdam Scado 5 V, Zwolle Sheby-Kern1 B V, Wolmerveer U Twrlnstra’s Ollefabrreken B V Akkrtlm Exportslachtenl Udema B V , Gleten Umlever-Emery N V, Gouda 50 /i (Preference capital held 50”/,) E.C. Countries Untlever Export B V, Rotterdarn Unilever Grondstoffen Maatschappl] B V Belgium-N.V. group Rotterdarn Hartog s Levensmrddelen N V, Brussels Unlrnrlls B V , Zwljndrecht Iglo-Ola N V, Brussels Unox B v, 0% N V Jacky, Antwerp Verenrgde Zeepfabncken B V, Rotterdam Lever N V , Brussels Vlruly B V, Maarssen Unton N V, Merksem-Antwerp ‘Wemado’, Maatschappl. tot Beheer van N V Zwanenberg’s Levensmlddelenbednlf Aandeelen In lndustneele ‘Zwan’, Schoten Ondernemrngen 6 V, Rotteidam Zwanenberg’s Fabneken B V Oss Denmark-N.V. group Uni-Dan A/S, Copenhagen United Kingdom--Limited group Austin Packaging Group Ltd., Bromborough Germany-N.V. group Batchelors Foods Ltd., Sheffield Bensdorp G m b H , Cleves Birds Eye Foods Ltd.. Walton-on-Thames Deutsche Unrlever G m b H , Hamburg BOCM Silcock Ltd., Basingstoke Schlffahrts- und Spedrtronskontor BOCM Silcock (N.I.) Ltd., Belfast ‘Elbe’ G m b H, Hamburg Chemical and Industrial Investment Ellda-Grbbs G m b H , Hamburg Company Ltd., Wallsend 4P Folle Forchhelm G m b H , Clynol Ltd., High Wycombe Forchherm Commercial Plastics Industries Ltd., 4P Papler Gunrach G m b H., tiunzach Wallsend Langnese-lglo G m b H , Hamburg 75 C.W.A. Holdings Ltd., London Lever Sunllcht G.m b H , Hamburg Joseph Crosfield & Sons Ltd., Warringron Merstermarken-Werke G m b H , Elida Gibbs Ltd., London Spezralfabnk fur Back- und Food Industries Ltd., Bromborough Grosskuchenbedarf, Bremen Ford & Slater Holdings Ltd., Leicester 4P Nlcolaus Kempten G m b H , Kempten Kennedy’s (Builders’ Merchants) Ltd 4P Nrcolaus Ronsberg G.m b.H , Ronsberg Bournemouth ‘Nordsee’ Deutsche Hochseeflscherel Lawson of Dyce Ltd., Aberdeen G.m.b H , Bremerhaven 68 Lever Brothers Ltd., Kingston-upon-Thames (Preference capital held 68 o/0) Leverton Group Ltd., Windsor 4P Rube Gottrngen G.m b H., Gottrngen Lipton Ltd., London Scado G m b H , Emslage Mat Fisheries Ltd., Bracknell Schafft Flerschwerke G.m.b.H , Ansbach Robert B. Massey & Co. Ltd., York Mattessons Meats Ltd., London

50 Gabon-Limited group

Ghana-Limited group

Switzerland-N.V. group

Ivory Coast-Limited group

Unrted Republic of Cameroons -Limited group

Canada-N.V. group Kenya-Limited group

-Limited group

People’s Republic of the Congo (Brazzaville) -Limited group

Finland-N.V. group

United States of America-N.V. group Malawi-Limited group

Nigeria-Limited group Greece-N.V. group

Austrra-N.V. group Uganda-Lrmited group Argentina-N.V. group

Brazil-N.V. group Sierra Leone-Limited group

Colombia-N.V. group Tanzania-Limited group

Portugal-N.V. group Zambia-Limited group Netherlands Antilles-N.V. group

South Africa-Limited group

Spain-N.V. group Trinidad-Limited group

Venezuela-N.V. group Sweden-N.V. group New Zealand-Limited group - ‘,I,. _,L, I’, -..> ,-.~_: _, Australia-Limited group ,, ..- ,

Japan-N.V. group Pakistan-Limited group

Philippines-N.V. group Malaysia-Limited group Sri Lanka-Limrted group ‘_ India-Limited group Thailand-N.V. group .s ,,. ‘,,.‘2 .I Indonesra-N.V. group Turkey-N.V. group

Principal trade investments

“lo of “1, of equitv ildd eqtuty held Germany-N.V. group United Kingdom-Limited group Indonesia-N.\/. group Fritz IHomann Lebensmlttelwerke G m IJ IH Ellis & Evetard Lid 32 PT. Sangkulirang &Co KG 50 Nigeria-Limited group The Netherlands-N.V. group Gu11111ess (Nrgena) Ltd 22 Gamma Iioltllng IV V 43 Nqerm Kredvrrles Ltd 22 Salient figures in guilders and other currencies

1975 above 1974

Rates of exchange Dutch Sterling Belgian GPrm,ln French Austrian us SWISS one unit = FI GUlldeE Pounds Francs Marks Francs Schllllngs Dollars Francs

MIllion 5.43 0.0689 1.0420 0.6041 0.1463 2.6900 1.0240 5.90 0 0689 1 0420 0.5627 0 1463 2.5400 0 9900

Sales to third parties 36 705 6 760 532 726 35 218 60 769 250 917 13654 35 826 34 471 5 843 500 296 33 069 61 288 235 629 13555 34 821

Operating profit 1 986 366 28 827 1 906 3 288 13578 739 1 939 2109 357 30 609 2 023 3 750 14416 829 2130

Taxation on profit of 909 168 13 201 873 1506 6218 338 888 the year 953 162 13 831 914 1694 6514 375 963

Profit of the year attributable to ordinary capital before 771 142 11192 740 I 277 5 271 287 753 extraordinary items 915 155 13284 878 1 627 6 256 360

Ordinary dividends 362 67 5 257 348 600 2 476 135 354 345 59 5 006 331 613 2 358 136 348

Capital employed 12169 2 241 176 616 11 676 20 147 83187 4 527 11 877 11 359 1 925 164 865 10897 20197 77 648 4 467 11475

Ordinary shareholders’ 7513 1384 109 049 7 209 12439 51 363 2 795 7 334 equity 7 199 1 220 104 488 6 906 12800 49212 2 831 7 273

Loan capital 2 223 409 32 260 2133 3 680 15195 827 2170 2120 359 30 768 2 034 3 769 14491 834 2142

Capital expenditure 1213 223 17607 1164 2 008 8 293 451 1184 1 309 222 19003 1 256 2 328 8 950 515 1 323

Depreciation 692 127 10041 664 1 145 4 729 257 675 662 112 9 609 635 1 177 4 526 260 669

In units of currency Shareholders’ equity Per FI. 20 of capital 134.84 2 483.33~ 1 957.11 129.41 223.22 921.70 50.13 131.68 129.21 2 189.96p 1 875.29 124.00 229.62 883.17 50.87 130.51

Per 25p of capital 20.23 372.50~ 293.57 19.41 33.48 138.25 7.52 19.75 19.38 328.49p 281.29 18.60 34.44 132.48 7.63 19.58

Earnings’) Per FI. 20 of capital 13.84 254.87~ 200.86 13.28 22.91 94.60 5.14 13.51 16.43 278.41 p 238.41 15.76 29.19 II 2.28 6.47 16.59

Per 25p of capital 2.08 38.23~ 30.13 1.99 3.44 14.19 0.77 2.03 2.46 41.76~ 35.76 2.36 4.38 16.84 0.97 2.49

Dividends’) N.V.-per FI 20 of capital 7.65 140.88~ 111.03 7.34 12.66 52.29 2.84 7.47 7.25 122.88~ 105.22 6.96 12.88 49.56 2.85 7.32

Limited-per 25p of capital 0.74 13.67~ 10.77 0.71 1.23 5.07 0.28 0.72 0.71 12.09p 10.35 0.68 1.27 4.88 0.28 0.72 Financial review I g 6 5- 1 g 7 5

/ -.

? 6 ,‘“_/ - 17274 17966 18303 18538 20386 23484 24766 24884 27004 32362 34719

,"J+% -i' .I< 1 / 29 50 71 14 29 126 81 712 34 142 205

' -; : _, I -\ , 511 541 641 716 672 633 777 793 1035 961 883

64 48 46 68 84 91 127

65 78 110

195 236 254 264 3052) 307 348 347 324 345 362

420 450 520 550 528 610 704 736 801 639 694 112 107 135 135 176 178 220 272 257 295 334

The 1967 figures reflect the devaluation of ‘) With the change to corporation tax in the to the shareholders in line with the change sterling on 18th November, 1967, the 1971 United Kingdom from 1966, income tax to the imputation system of taxation from figures the realignment of major currencies deducted from dividends had to be handed to 1 st April, 1973. and the 1972 to 1975 figures the floating of the Revenue and the cost of dividends in sterling and other currencies. 1966-l 971 is the gross amount. In 1972 the 2, The special ordinary dividends, paid with first interim dividend of Limited is included the final 1969 dividends, amounting to gross. The second interim and final dividends FI. 41 million, are not included. for 1972 and all 1973 to 1975 dividends are included at the amounts paid or to be paid 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975

Shareholders’ equity per FI. 20 of caprtal (FI ) 103 106 106 111 116 121 125 127 128 129 135 per 25p of capttal (pence) 152 157 182 191 200 209 222 253 295 328 372 -- Earnings’) per FI. 20 of caprtal (FI.) 10.44 1042 11 74 12 71 1228 11.17 14.69 1748 1864 1643 1384 per 25p of caprtal (pence) 15.45 15.41 20.26 21.94 21.19 1929 26 06 34 63 43.02 41 76 38 23

Earnings plus depreciation per FI 20 of caprtal (FI ) 1853 19.34 20.93 22 03 22.46 23 00 26.64 29.02 30 36 28 31 26 26 per 25p of capital (pence) 27.41 28 62 36 13 38 02 38 77 39.71 47.27 57.50 70 06 71 97 72 53

DividendS) N.V. per FI. 20 capital (FI ) 4 22 4 21 4 67 4.70 5.433) 5 43 6 20 6 71 6 71 7 25 7 65 Limited per 25p of capital (pence) 6.25 6.25 7.50 8.13 9.383) 9.42 11 20 11.02 10.63 1209 1367

Capital expenditure (FI. million) 673 605 616 716 881 993 850 927 974 1 309 1213 Depreciation (FI. million) 453 500 498 523 572 666 667 64.4 653 662 692

Employees Remuneration of employees (FI. mrllron) 2 929 3152 3 245 3 368 3 886 4 508 4 693 4 931 5 243 5 868 6 684 Number of employees (000’s) 294 300 304 312 326 335 324 337 353 357 321

Ratios Sales capital employed 22 22 23 22 23 25 26 2.6 28 30 30 Sales per employee (FI.) 62803 63963 64849 64205 66960 74379 81 738 79620 82711 96557 114346 Sales : working capital 5.2 5.4 60 55 54 5.7 6.3 65 64 59 69 Drvrdends earnrngs 0 33 0 40 0 39 0 37 0.44 049 0 43 0 36 0.31 0 38 0 47 Gearmg4) 019 0.26 0.26 0.24 0 24 0 25 0 25 0 23 0 22 0 30 0 29 Current assets current lrabilrtres 22 23 2.2 2.1 2.0 1.9 2.0 20 1.9 18 19

Share prices N.V. per FI. 20 ordinary share in Amsterdam High 144 120 112 144 131 121 122 150 162 118 123 Low 107 73 85 105 98 79 87 118 100 69 80 Limited par 25p ordinary share in London High 181 172 251 420 350 313 345 405 397 339 434 Low 148 132 149 219 228 188 209 325 278 149 167

‘) Limited dividends for 1965-l 971 and 4, Gearing IS roan capital plus short-term the first interim for 1972 are gross. The second borrowings divided by the sum of loan capital, interim and final for 1972 and all 1973 to short-term borrowings, preferential share 1975 dividends are the amounts paid or to capital, ordinary shareholders’ equity and be paid to the shareholders net of tax credit. outside interests in subsidiaries.

3) Excludes special ordinary dividends of FI. 0.73 and 1.25~ paid with the final 1969 dividends. Dates to note

Announced mid-November. Payable second half of December.

Proposed early March. Payable second half of May (New York shares: beginning of June)

7% and 6% Cumulative Preference First halt Payable 1st July.

Second half Payable 2nd January.

First half Payable 1 st October.

Second half Payable 1 st April.

6% Notes 1972/91 Payable 15th January.

10 1/,o/o Euroguilder Notes 1979 Payable 16th August.

93/4O/o Euro DM Notes 1981 Payable 1 st December.

8 3/4 o/o Notes 1981 I85 Payable 1 st December.

6 “I4 Olo Notes 1981 I86 Payable 16th February.

8 II2 “lo Notes 1981 I87 Payable 3rd May.

interim announcement of results

First quarter results Mid-May.

First half-year results Mid-August.

Nine months results Mid-November.

Provisional results for the year Early March. Unilever Report & Accounts 1975-Supplement

UAC International

The UAC International (UACI) Group, whose sales in 1975 amounted to FI. 4 258 million, consists of UAC International Limited (formerly The United Africa Company Limited) and subsidiaries operating in a total of 39 countries. UACI is also responsible for the Unilever interest in a number of trade investments, notably in breweries. The Group’s history can be traced back through predecessors for nearly 300 years in West Africa, and 50 years in East Africa, some countries in the Middle ml East, and Morocco.

UACI employs 61 600 people. The main operations are in the United Kingdom, France, Commonwealth West and East Africa, French speaking Africa, the Arabian Gulf. and the South Pacific.

Group strategy the Group will continue to seek creation of industrial enterprises in In West Africa, UACl’s traditional opportunities for expansion in partnership with other expatriate activities were buying and exporting territories and types of activity to companies with which we had local produce and importing and which its skills and experience are long-standing business relationships selling general merchandise. As the relevant. Such new developments as buyers of their products for countries concerned moved towards will not detract from the importance export to Africa. Their technical political independence after the we attach to our existing operations, know-how and skills have second world war, they naturally but will provide additional complemented our own knowledge aspired to a degree of economic geographical diversification. of national conditions and local self-sufficiency as well: an markets. aspiration to which it was UACl’s Local participation and duty and interest to respond. This industrial partnerships Management called for radical changes in the For many years the policy of the Strong local participation in the nature of our business; over the Group has been to seek local management of our overseas years we have systematically participation in its operations and, operations is even more important streamlined our trading activities from the beginning of its than local participation in and redeployed resources into development into industrial ownership. It has long been our industries and services where activities, local Governments have objective that our business in each UACl’s management, finance and been partners in many of the country where we operate should technology could make a projects, and the local public in be managed as far as possible by contribution. These changes have others. For example, there has been nationals of that country. In pursuit inevitably led us into diverse a public shareholding in one of the of this objective, carefully activities which in the main are Nigerian brewery ventures since integrated plans for the training and different from those of the rest 01 1958. African distributors have been development of indigenous Unilever. There has been fruitful systematically encouraged to take managers have been required co-operation with other Unilever over the distribution of the Group’s companies in the manufacture of many manufactured products, We have reached a stage where the packaging materials, toilet which is now mainly in African chairmen of the main UACI preparations, ice-cream and meat hands. companies in four African countries products. are Africans, and many directorships In recent years in several countries, and senior appointments are held The Group’s diversification in Africa Governments have introduced by Africans. In Africa as a whole, introduced new management skills. legislation to increase the degree of we have achieved a level of a little These rapidly became one of our local participation. In 1974, in less than 80% indigenous main assets, and we have been able accordance with Nigerian management. This has required to employ them in complementary legislation, 40% of the equity of dedication to the principle of activities outside Africa. In the UAC of Nigeria Limited was offered indigenisation, which we have now United Kingdom and France over to Nigerians: twelve State demonstrated over 30 years but, the past five years, companies in Governments and over 80 000 even before, there were Africans in types of business with which we private Nigerian investors are now managerial positions in the were already familiar have been shareholders. In the same year we company. acquired. were required to sell 50% of our equity in Morocco to local interests. We shall, however, maintain a policy In the Arabian Gulf, where we have In Ghana legislation will result in a of keeping expatriate managers in long had trading operations, we minimum of 40% of the shares in each country. We firmly believe have extended into the supply of our companies being owned locally. that a degree of internationalisation refrigeration, air-conditioning and of management provides office equipment. A feature of the development and opportunities for transferring skills redirection of our business in Africa and exchanging experience to the In line with Unilever’s own strategy, over the last 20 years has been the benefit of the countries concerned, the indigenous managers, and our proprietary medicines and market activities include design, own companies. these together with imported ethical installation and maintenance medicines, hospital equipment and facilities for air-conditioning and Training and development photographic materials. refrigeration projects; for electrical The system of annual review of the contracting industry materials; potential of all employees provides Motors assembly and wholesaling of the means for identifying those who Our motors sale and service domestic radio, television and other are capable of training and businesses in Nigeria, Ghana, Sierra household equipment; and development and, ultimately, Leone and Uganda include-a highly contractor plant hire. In the United appointment to management status. specialised fuel injection/ Kingdom we manufacture and sell ‘On-the-job’ training in Africa is a automotive electrical service, which ‘Europower’ high pressure continuous process and is also extends to Kenya and Tanzania. hydraulic fittings, and supply supplemented by local courses at We assemble Bedford vehicles in agricultural machinery and our own training schools, or Nigeria and Ghana, where we also equipment. externally at technical colleges. We build bus and other commercial have a training centre in Nigeria vehicle bodies. In Morocco we G.B. Ollivant Division and technical training schools in assemble Land Rovers. This division provides advisory, other countries. buying, support and shipping In the United Kingdom, through services for a number of United We also provide training for Ford & Slater, we sell and lease Kingdom and overseas companies employees outside their own Leyland commercial vehicles. within UACI. Their general trading countries. In 1975 we brought 126 Through Armstrong-Massey and activities cover wholesale managers and others to the United Massey Coldshield in the United distribution of imported and local Kingdom alone on advanced Kingdom we distribute Rolls Royce merchandise, and marketing of management courses, on general and Leyland cars, and manufacture building materials throughout development courses, and for refrigerated vehicle bodies. Nigeria, Ghana and Sierra Leone. technical and specialised training. The period spent outside their own Caterpillar sales and service Their 13 ‘Kingsway’ department countries varied from two months to We operate ‘Caterpillar’ dealerships stores and supermarkets in Nigeria a year or more. in Commonwealth West and East and ten in Ghana sell a full range Africa and one through H. Leverton of retail merchandise. They have Acquisitions & Company in several parts of two franchised retail chains in The diversification of our actrvmes England. The full range of Nigeria, one selling menswear and in Africa and elsewhere outside ‘Caterpillar’ earth moving equipment, the other electrical goods. Europe has mainly come from lift trucks and engines is offered, internal growth and investment in with complete advisory and The division markets office new ventures either alone or in after-sales and spare parts services. equipment and furniture in Nigeria, partnership with others. The equipment is used extensively Ghana, Sierra Leone and the Diversification in Europe has mainly in land clearing, road building, in Arabian Gulf, and through 35 been brought about by acquisitions. agriculture and in marine branches in the United Kingdom. Our criteria for a company to be applications, such as the offshore acquired are that it should have oil industries of Nigeria and on the Textiles development potential, be engaged North Sea. In textiles we are strong in quality in activities complementary to of design and product and have a existing Group activities, and be Timber prominent distributive position in self-sufficient in terms of Our tropical hardwood extraction African markets. In Nigeria and management. Our role is to provide and processing businesses have an Ghana we are in partnership with assistance with modern annual output of over half a million the local Governments and with management techniques, technical tons of logs, a substantial part of Dutch and Hong Kong companies know-how and the finance which is processed in our own in spinning, weaving, printing and necessary to achieve the potential factories in Africa into sawn timber, finishing textile mills. development which we originallv plywood, blockboard, timber identified. building systems, flush doors and Industrial ventures flooring. A particle board plant is The Group has commercial Summary of activities under construction in Nigeria. Our management responsibility for The following is a summary of the ventures in Indonesia and the many manufacturing ventures in Group’s activities. Solomon Islands export logs, Commonwealth West Africa, mainly to Japan. including packaging materials, Medical supplies plastics, mattresses, metal beds, In the United Kingdom we market Electrical and mechanical chairs and other furniture, such as surgical equipment, laboratory goods and services school furniture. supplies and pharmaceuticals in the We cover a wide range of name of A. J. Seward. In Nigeria, construction, industrial and Breweries Ghana and Sierra Leone we agricultural engineering needs in Among the more important trade manufacture toilet preparations and 11 overseas countries, where other investments in Nigeria, Ghana and insurance businesses in Nigeria and Accounts for 1975. These Ghana. The Group operates a figures speak for themselves. network of warehousing depots in In achieving these results we Nigeria. believe that UACI can also claim to have made a Palm Line significant contribution to the Palm Line Limited, part of UACI, prosperity and economic has 13 ships operating between growth of the African and North West Europe and ports in other overseas countries in West Africa. It also has interests in which the Group operates. shipping agencies in West Africa. With its knowledge derived stevedoring companies, and a from long experience of container company. conditions and markets in these countries, and with the help of The results of these diverse its more recently developed activities in terms of sales and activities in Europe, the Group operating profit for the last six should be soundly based for years are shown on page 13 of further progress. the Unilever Report and