Disclaimer This is a PDF version of the Unilever Annual Report and Accounts 2019 and is an exact copy of the printed document provided to Unilever’s shareholders. Certain sections of the Unilever Annual Report and Accounts 2019 have been audited. These are on pages 87 to 152, and those parts noted as audited within the Directors’ Remuneration Report on pages 66 to 72. 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. 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Unilever Unilever Annual Report and Accounts 2019 and Accounts Annual Report Unilever Purpose-led, future-fit Unilever Annual Report and Accounts 2019 Unilever Annual Report and In this report Accounts 2019 This document is made up of the Strategic Report, the Governance Strategic Report Report, the Financial Statements and Notes, and Additional How our strategy is delivering value for our stakeholders Information for US Listing Purposes. At a glance 2 The Unilever Group consists of Unilever N.V. (NV) and Unilever PLC (PLC) together with the companies they control. The terms “Unilever”, Chairman's introduction 4 the “Group”, “we”, “our” and “us” refer to the Unilever Group. Our Board of Directors 5 Our Strategic Report, pages 1 to 46, contains information about us, Chief Executive Officer's Q&A 6 how we create value and how we run our business. It includes our Unilever Leadership Executive 7 strategy, business model, market outlook and key performance indicators, as well as our approach to sustainability and risk. The Our strategy Strategic Report is only part of the Annual Report and Accounts 2019. Our fast-changing world 8 The Strategic Report has been approved by the Boards and signed on their behalf by Ritva Sotamaa – Group Secretary. Our strategy 9 Our Governance Report, pages 47 to 77 contains detailed corporate Our value creation model 10 governance information, our Committee reports and how we Our stakeholders remunerate our Directors. Stakeholder review: 12 Our Financial Statements and Notes are on pages 78 to 142. – Consumers 14 Pages 1 to 162 constitute the Unilever Annual Report and Accounts 2019 for UK and Dutch purposes, which we may also refer to as – Our People 16 ‘this Annual Report and Accounts’ throughout this document. – Society 18 The Directors’ Report of PLC on pages 47 to 59, 78 (Statement of – Planet 19 Directors’ responsibilities), 108 (Dividends on ordinary capital), 121 to 127 (Treasury Risk Management), 148 and 152 (Post balance sheet – Customers 20 events) and 160 (Branch disclosure) has been approved by the PLC – Shareholders 21 Board and signed on its behalf by Ritva Sotamaa – Group Secretary. Our performance 22 The Strategic Report, together with the Governance Report, Financial review 24 constitutes the report of the Directors within the meaning of Article 2:391 of the Dutch Civil Code and has been approved by the NV Board Our risks 33 and signed on its behalf by Ritva Sotamaa – Group Secretary. Non-financial information statement 46 Pages 163 to 178 are included as Additional Information for US Listing Purposes. Governance Report How we’re running a responsible and effective business Online Corporate Governance 47 You can find more information about Unilever Report of the Audit Committee 54 online at Report of the Corporate Responsibility Committee 56 www.unilever.com Report of the Nominating and Corporate Governance Committee 58 For further information on our sustainability activities and performance visit Directors’ Remuneration report 60 www.unilever.com/sustainable-living Financial Statements The Unilever Annual Report and Accounts 2019 Our full financial results and notes for the year (and the Additional Information for US Listing Purposes) along with other relevant documents can be downloaded at Statement of directors’ responsibilities 78 Independent auditors’ reports 79 www.unilever.com/ara2019/downloads Financial statements 87 Notes to the consolidated financial statements 91 Unilever N.V. company accounts and notes 143 Unilever PLC company accounts and notes 148 Group companies 153 Shareholder information 161 Index 162 Additional information for US listing purposes 163 Purpose-driven performance One in three people around the world use our brands every day. With this reach comes responsibility – and opportunity. That’s why we've made it our purpose to make sustainable living commonplace. To help people live well within the limits of the planet. This isn’t just something we say – it steers our decisions and shapes our actions, at every level of the business. Our focus on purpose goes back to the days of one of our founders, William Lever, well over 100 years ago. It’s part of Unilever history, and it’s integral to our future. This is why we want all our brands to take a stand, and act, on the big social and environmental issues facing the world. We believe we’ll be a better and more successful business by following this path. To truly make sustainable living commonplace, we have to be fit for the future. This means anticipating the significant changes which are shaping our industry. Becoming fully digitised, lower cost, faster acting and more agile. Using our scale and influence to create positive change well beyond Unilever. Expanding into high-growth markets with superior products that are good for both people and the planet. And continuing to attract the very best people into a diverse, inclusive and flexible working culture. Purpose-led, future-fit At a glance As one of the world’s largest and oldest consumer goods businesses, we’re on a mission to make sustainable living commonplace. A truly global business Strong brands with purpose Our brands are available in over 190 countries. Our 400+ household brands help people feel good, look good and get more out of life. A growing 2.5 portfolio 12 brands billion of brands people use our with purpose with turnover of more products every day than €1 billion in the year 13 of the 60% 25 top 50 84% million of brands in top 1 or 2 retail sales FMCG brands* market positions outlets in our of turnover in distribution chain emerging markets Read more about our brands and consumers on pages 14 to 15. Using our scale for good Powered by our people We have ambitious time-bound sustainability Our purposeful and inclusive culture attracts goals which are delivering significant impact. and keeps the very best. 150 51/49 1.3 62% gender balance thousand in management billion employees (female/male)** people helped to improve their health of agricultural and hygiene since 2010 raw materials sustainably sourced Number 1 90% FMCG graduate % of our leaders employer of choice 100 are local in 52 markets renewable grid electricity in 5 continents Read more about our people on pages 16 to 17. * Based on market penetration and consumer interactions (Kantar Brand Footprint report). Read more about society and the planet on pages 18 to 19. ** Based on a total management population of 15,028 Unilever employees. 2 Unilever Annual Report and Accounts 2019 Strategic Report Financial highlights What we stand for: Making sustainable living commonplace. €52.0 billion turnover What we offer: Beauty & Personal Care, Foods & Refreshment, €6.1 billion Home Care free cash flow* Read more about our brands and consumers on pages 14 to 15. €4.2 billion dividends paid 19.1% underlying operating margin* 16.8% operating margin Beauty & Personal Care What we stand for: Beauty that cares for people, society and our planet. €21.9 billion turnover Our largest categories: Deodorants, Haircare, Skin care, Skin cleansing 42% of total turnover A selection of our brands: Axe, Clear, Dove, Lifebuoy, Lux, Pond's, Rexona, Signal, Suave, Sunsilk, TRESemmé, Vaseline 52% of total operating profit Foods & Refreshment What we stand for: Taste good. Feel good. Force for good. €19.3 billion turnover Our largest categories: Ice cream, Savoury, Dressings, Tea 37% of total turnover A selection of our brands: Ben & Jerry’s, Breyers, Brooke Bond, Heart (Wall’s), Hellmann’s, Knorr, Lipton, Magnum, Pukka, % of total operating profit Sir Kensington’s, Unilever Food Solutions 32 Home Care What we stand for: Making your home a better world. turnover Making our world a better home. €10.8 billion Our largest categories: Fabric solutions, Home and hygiene 21% of total turnover A selection of our brands: Cif, Dirt is Good (Omo, Persil), Domestos, Seventh % of total operating profit Generation, Sunlight 16 Read more about our Divisions on pages 14 to 15. * Free cash flow and underlying operating margin are non-GAAP measures. For further information about these measures, and the reasons why we believe they are important for an understanding of the performance of the business, please refer to our commentary on non-GAAP measures on page 27.