Unilever Annual Report and Accounts 2016 and Is an Exact Copy of the Printed Document Provided to Unilever’S Shareholders
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DISCLAIMER This is a PDF version of the Unilever Annual Report and Accounts 2016 and is an exact copy of the printed document provided to Unilever’s shareholders. Certain sections of the Unilever Annual Report and Accounts 2016 have been audited. These are on pages 84 to 154, and those parts noted as audited within the Directors’ Remuneration Report on pages 48 to 77. The maintenance and integrity of the Unilever website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters. Accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially placed on the website. Legislation in the United Kingdom and the Netherlands governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Except where you are a shareholder, this material is provided for information purposes only and is not, in particular, intended to confer any legal rights on you. This Annual Report and Accounts does not constitute an invitation to invest in Unilever shares. Any decisions you make in reliance on this information are solely your responsibility. The information is given as of the dates specified, is not updated, and any forward-looking statements are made subject to the reservations specified in the cautionary statement on the inside back cover of this PDF. Unilever accepts no responsibility for any information on other websites that may be accessed from this site by hyperlinks. MAKING SUSTAINABLE LIVING COMMONPLACE UNILEVER ANNUAL REPORT AND ACCOUNTS 2016 UNILEVER ANNUAL REPORT CONTENTS AND ACCOUNTS 2016 About us ...........................................................................................1 This document is made up of the Strategic Report, the Governance Our purpose .....................................................................................1 Report, the Financial Statements and Notes, and Additional Chairman’s statement .....................................................................2 Information for US Listing Purposes. Board of Directors............................................................................3 Our Strategic Report, pages 1 to 28, contains information about Chief Executive Officer’s review ......................................................4 us, how we create value and how we run our business. It includes Unilever Leadership Executive (ULE) ..............................................5 our strategy, business model, market outlook and key performance indicators, as well as our approach to sustainability Our markets .....................................................................................6 and risk. The Strategic Report is only part of the Annual Report Our business model .........................................................................8 and Accounts 2016. The Strategic Report has been approved by Our strategic focus.........................................................................10 the Boards and signed on their behalf by Tonia Lovell – Group Secretary. Our performance............................................................................12 Delivering value for our stakeholders ...........................................14 Our Governance Report, pages 29 to 77 contains detailed corporate governance information, how we mitigate risk, our Our consumers..............................................................................14 Committee reports and how we remunerate our Directors. Society............................................................................................16 Our Financial Statements and Notes are on pages 78 to 154. Our people .....................................................................................20 Pages 1 to 156 constitute the Unilever Annual Report and Accounts Our shareholders ..........................................................................22 2016 for UK and Dutch purposes, which we may also refer to as ‘this Financial Review ............................................................................23 Annual Report and Accounts’ throughout this document. Governance ..................................................................................29 The Directors’ Report of Unilever PLC (PLC) on pages 29 to 47, Corporate Governance..............................................................29 78 (Statement of Directors’ responsibilities), 104 (Dividends on Risks.........................................................................................36 ordinary capital), 115 to 120 (Treasury Risk Management), 143 (branch disclosure) and 150 and 154 (Post balance sheet event) Report of the Audit Committee .................................................42 has been approved by the PLC Board and signed on its behalf by Report of the Corporate Responsibility Committee...................44 Tonia Lovell – Group Secretary. Report of the Nominating and The Strategic Report, together with the Governance Report, Corporate Governance Committee ...........................................46 constitutes the report of the Directors within the meaning of Directors’ Remuneration Report ..............................................48 Section 2:391 of the Dutch Civil Code and has been approved Financial Statements ...................................................................78 by the Unilever N.V. (NV) Board and signed on its behalf by Tonia Lovell – Group Secretary. Statement of Directors’ responsibilities ...................................78 Pages 157 to 178 are included as Additional Information for US Independent auditors’ reports ..................................................79 Listing Purposes. Consolidated financial statements ...........................................84 Consolidated income statement ...........................................84 Consolidated statement of comprehensive income...............84 ONLINE Consolidated statement of changes in equity........................85 You can find more information about Unilever online at Consolidated balance sheet ..................................................86 www.unilever.com. For further information on the Consolidated cash flow statement ........................................87 Unilever Sustainable Living Plan (USLP) visit Notes to the consolidated financial statements........................88 www.unilever.com/sustainable-living Company accounts – Unilever N.V. ........................................144 The Unilever Annual Report and Accounts 2016 (and the Additional Information for US Listing Purposes) along Notes to the Company accounts – Unilever N.V. ....................146 with other relevant documents can be downloaded at Company accounts – Unilever PLC .........................................151 www.unilever.com/ara2016/downloads Notes to the Company accounts – Unilever PLC.....................152 Shareholder Information............................................................155 Index ..........................................................................................156 Additional Information for US Listing Purposes ........................157 ABOUT US OUR PURPOSE UNILEVER IS ONE OF THE WORLD’S BEST KNOWN UNILEVER HAS A CLEAR PURPOSE – TO MAKE SUSTAINABLE CONSUMER GOODS COMPANIES. EVERY DAY, 2.5 BILLION LIVING COMMONPLACE. WE BELIEVE THIS IS THE BEST WAY TO PEOPLE USE OUR PRODUCTS TO FEEL GOOD, LOOK GOOD CREATE LONG-TERM VALUE FOR ALL OUR STAKEHOLDERS, AND GET MORE OUT OF LIFE. ESPECIALLY IN A VOLATILE AND UNCERTAIN WORLD. We are truly global, operating in more than 100 countries, selling Our Purpose inspires our Vision – to accelerate growth in our our products in more than 190 countries and employing around business, while reducing our environmental footprint and increasing 169,000 people. our positive social impact. We want our business to grow but we recognise that growth at the expense of people or the environment is Unilever is organised in four categories, each with a clearly defined both unacceptable and commercially unsustainable. Sustainable strategy and portfolio of brands. The largest is Personal Care, then growth is the only acceptable model for our business. Foods followed by Home Care and Refreshment. Each one is discussed in more detail on pages 14 and 15. Our Purpose and Vision combine a commercial imperative to succeed against competition globally and locally, with the changing attitudes We have 13 brands with sales of €1 billion or more: and expectations of consumers. 1. Axe This Annual Report and Accounts explains how, in 2016, we have 2. Dirt is Good (e.g. Omo) continued to pursue our Purpose and work towards making our Vision 3. Dove a reality. During 2016 we continued to deliver growth that is 4. Family Goodness (e.g. Rama) consistent, competitive, profitable and responsible. This track record 5. Heartbrand (e.g. Wall’s) of long-term success is underpinned by the USLP, which helps us 6. Hellmann’s manage risk, inspires brand purpose and innovation, drives down 7. Knorr costs to improve returns and builds trust among consumers across 8. Lipton our categories and operations. 9. Lux 10. Magnum Our success depends on the expertise and talent of our people. They 11. Rexona are constantly challenged by an environment that remains volatile, 12. Sunsilk uncertain, complex and ambiguous. Digitalisation is impacting all 13. Surf aspects of life. At the same time it is getting easier to enter our industry. Our