FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
For
the month of February, 2011
UNILEVER N.V.
(Translation of registrants name into English)
WEENA 455, 3013 AL, P.O. BOX 760, 3000 DK, ROTTERDAM, THE NETHERLANDS
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F
þ
Form 40-F
o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether the registrant by furnishing the information contained in this Form
is also thereby furnishing the information to the Commission pursuant to
Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes
o
No
þ
If Yes is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
TABLE OF CONTENTS
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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UNILEVER N.V.
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/s/
T. E. Lovell
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T. E. Lovell,
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Secretary
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Date: 4 February, 2011
2010 FULL YEAR RESULTS
STRONG YEAR AS TRANSFORMATION PROGRESSES
Full
year highlights
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Turnover up 11.1% at 44.3 billion,
with 7.3% due to currency
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Underlying volume growth 5.8%.
Underlying sales growth 4.1% and underlying price growth
(1.6)%.
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Underlying operating margin up 20bps
with increased investment in advertising and
promotions up 30 bps, funded by higher gross margins and lower indirects. Margin underpinned
by savings of 1.4 billion.
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Healthy free cash flow of 3.4 billion
reflecting continuing improvement in working
capital.
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Fully diluted earnings per share 1.46 up 25%.
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Chief Executive Officer
We are pleased with another year of good results in which we delivered against all our key
priorities and further progressed the transformation of Unilever. We delivered strong volume
growth, particularly in emerging markets which continued to be the engine of growth. We gained
volume share in all regions driven by stronger innovations, significant increases in marketing
investment and the extension of our brands into new territories. At the same time we delivered
margin improvement through a strong savings programme, lower indirects and volume efficiencies.
This, coupled with excellent working capital management, enabled us to deliver robust cash flow.
The Unilever of today is more agile and confident, now fully fit to compete. We remain focused on
serving our consumers and customers and building the long term health of our brands. Despite the
intense competition and the return of commodity cost volatility, our
objectives remain: profitable volume growth ahead of our markets,
steady and sustainable underlying operating margin
improvement and strong cash flow.
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Key Financials (unaudited)
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Full Year 2010
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Current rates
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Turnover
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44,262m
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+11.1
%
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Underlying sales growth*
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4.1%
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Operating profit
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6,339
m
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+26
%
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Net profit
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4,598
m
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+26
%
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Diluted earnings per share
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1.46
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+25
%
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Quarterly Dividend payable in March 2011 0.208 per share
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(*) Underlying sales growth is a non-GAAP measure, see note 2 on page 10 for further
explanation of non-GAAP measures used.
1
OPERATIONAL REVIEW: REGIONS
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Full Year 2010
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Change in
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(unaudited)
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Turnover
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USG
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Volume
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Price
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Underlying
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Op Margin
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m
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%
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%
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%
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bps
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Unilever
Total
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44,262
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4.1
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5.8
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(1.6
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20
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Asia Africa
CEE
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17,685
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7.7
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10.2
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(2.2
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(50
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Americas
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14,562
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4.0
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4.8
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(0.7
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(10
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Western
Europe
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12,015
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(0.4
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1.4
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(1.8
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170
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2010 results were strong despite intense competition, weak consumer confidence in many markets and
the impact of rising commodities costs in the second half. Whilst markets showed little or no
growth in the developed economies, emerging market growth remained healthy. We grew our volumes
ahead of the market in all regions and finished the year strongly despite a strong prior year
comparator. Savings programmes delivered strongly across both supply chain and indirects. We
invested in our product quality and significantly increased the investment behind our brands whilst
improving advertising quality.
The acquisition of Sara Lees personal care business and the disposal of the Italian frozen foods
business were completed during the year. The proposed acquisition of Alberto Culver has received
shareholder approval and now awaits approval of the relevant regulatory authorities. The previously
announced disposal of the Brazilian tomato business is expected to be finalised early in 2011.
Asia Africa CEE
In 2010 we grew ahead of the market and continued to gain volume share. Asia Pacific delivered
double digit volume growth in the year. There were particularly strong performances in Vietnam, the
Philippines, Pakistan and China. In India we delivered consistent double digit volume growth and we
are encouraged by our progress in this highly competitive market. The business in North Africa,
Middle East and Central Africa performed well throughout the year. Whilst market conditions in
Central and Eastern Europe were weaker, volume growth was still comfortably positive.
Underlying operating margin was down for the year reflecting stable gross margins and increased
investment in advertising and promotions. The rollout of the regional IT platform progressed well,
with successful rollout in 2010 to a number of countries including China, Australia, Vietnam and
North Africa.
Americas
We gained volume share in 2010 and saw higher underlying sales growth driven by consistent growth
in Latin America and good performance in North America.
Whilst the US economy remains difficult and increasingly competitive, our business continued to
benefit from our strong innovation programme. The Brazilian market continues to grow strongly but
remains highly competitive; in this context our business delivered good results. Mexico had a
particularly good year, gaining share in a number of key categories and the Southern Cone had
another excellent year with a strong recovery in Chile after the devastating earthquake. Underlying
operating margin was down slightly in the year.
Western Europe
Despite difficult markets we delivered volume growth and improved volume share in the year.
Underlying price continued to improve but was still negative year-on-year reflecting the high
levels of promotional intensity in many of our markets. Conditions in Southern Europe remain
particularly challenging. Northern Europe is more robust and we saw strong performances in the UK
and France.
Underlying operating margin was up in the year, reflecting the benefits of the cost saving
programmes and lower advertising and promotions.
2
OPERATIONAL REVIEW: CATEGORIES
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Full
Year 2010
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(unaudited)
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Turnover
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USG
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Volume
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Price
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m
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%
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%
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%
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Unilever Total
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44,262
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4.1
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5.8
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(1.6
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Savoury, Dressings
& Spreads
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14,164
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1.4
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2.5
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(1.0
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Ice Cream & Beverages
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8,605
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6.1
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5.9
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0.1
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Personal Care
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13,767
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6.4
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7.9
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(1.4
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Home Care
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7,726
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3.0
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8.2
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(4.8
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All categories grew volume and generated positive underlying sales growth in 2010, ending the year
on a strong note. Almost all of our major brands grew volume on the back of bigger, better
innovations rolled out more quickly across more markets. Magnum Gold?! was launched in 29
countries, Dove Men+Care is now in more than 30 markets and Dove Damage Therapy hair care products
have reached 22 markets. In addition we have accelerated the rates at which we are extending our
brands into new markets, with more than 100 new launches in the year.
Savoury, Dressings and Spreads
Savoury delivered strong volumes and impactful innovations. Knorr jelly bouillon helped to drive
growth across many markets in Europe and Latin America whilst a new gourmet soups range drove
strong share growth in France. Knorr soupy noodles continue to grow in India and soups have been
launched in Bangladesh. The Knorr Season and Shake baking bags have now been launched in more than
20 markets with good initial results. PF Changs restaurant quality frozen meals have been a great
success, exceeding 50m turnover in the launch year.
Dressings grew volume driven by a successful campaign to increase the consumption occasions of
mayonnaise in Latin America and the launch of a range of flavoured mayonnaises in Europe. Spreads
grew volume in the year by investing in improved product quality and communicating the new taste
benefits; a strong performance given the weak markets. Pro.Activ spreads again delivered strong
growth by emphasising its core heart health benefits and Pro.Activ Buttery was launched
successfully in Europe.
Ice Cream and Beverages
Ice cream delivered another good year of growth with a strong contribution from Western Europe,
Asia and Russia. Magnum was launched in Indonesia and Klondike continued to grow in the US driven
by improved product quality and a strong TV and digital marketing campaign which increased consumer
interaction with the brand.
Tea delivered strong volume and solid price growth. Tea grew particularly well in India, UK,
Turkey, Saudi Arabia and China driven by the strength of the Lipton brand equity, up-trading to new
formats such as green tea in pyramid bags, the development of milk teas in China and the conversion
from loose tea to tea-bags across emerging markets. Ades soy-based drinks continued to make
progress in Latin America with impactful new packaging and advertising.
Personal Care
Deodorants had another excellent year driven by Dove Men+Care, the continued strengthening of the
Rexona brand and by the launch towards the end of the year of the latest Axe variant, Excite. Hair
continued to make good progress with strong growth in North America, China, South East Asia and
India as a result of the rollout of Dove Damage Therapy, the continued rollout of Clear in Latin
America and the relaunch of Clear in Asia. TiGi continued to perform well ahead of the professional
market growth.
Skin delivered a solid year driven by continued momentum on Dove Nutrium moisture, Dove Men+Care,
the latest Axe shower variant Rise, which contributed to record Axe shower market shares in the
United States, and the rollout of Lifebuoy and Vaseline into new countries. Our Oral business
delivered a solid year despite a heightened level of competitive activity. Signal Sensitive Expert
was launched in France and White Now continues to do well across many markets including Vietnam and
the Philippines.
Home Care
In highly competitive markets Laundry delivered strong underlying volume growth and underlying
sales growth improved progressively through the year. Volume growth was particularly strong in
India on the back of the re-launches of Rin and Wheel laundry detergents. In China we continued to
close the share gap versus the market leader and the launch of Omo liquids is driving strong double
digit growth. Comfort, recently launched in India, continues to make good progress in developing
the market for fabric conditioners.
Household care continued to deliver volume-driven sales growth behind the market rollouts of Cif into Vietnam,
Indonesia, Malaysia and the Philippines. Sun Turbo All-in-1 concentrated gel is doing well in France and the
Netherlands.
3
ADDITIONAL COMMENTARY ON THE FINANCIAL STATEMENTS FULL YEAR
Finance costs and tax
The cost of financing net borrowings in the year was 414 million, as the adverse impact of
currency was more than offset by lower average net debt. The interest rate on borrowings was 4.4%
and on cash deposits was 1.7%. The charge for pensions financing was a credit of 20 million
compared with a net charge of 164 million in the prior year.
The effective tax rate was 25.5% compared with 26.2% in 2009 reflecting the geographical mix of
profits and the impact of the Frozen Foods disposal. The underlying tax rate excluding the effect
of restructuring, disposals and impairments was 27.1%. Our longer-term expectation for the tax rate
remains around 26%.
Joint ventures, associates and other income from non-current investments
Net profit from joint ventures and associates, together with other income from non-current
investments contributed 187 million compared to 489 million in the prior year which benefited
from the 327 million gain on disposal of the majority of the equity interest in JohnsonDiversey.
Earnings per share
Fully diluted earnings per share for the full year were 1.46, up 25%. This was driven by improved
underlying operating profit, lower restructuring charges, lower pension costs, the favourable
impact of foreign exchange and higher profit on business disposals partially offset by the
provision in respect of the European Commission investigation into consumer detergents (see page
5). Business disposals include the disposal of the Italian Frozen Foods business in 2010.
Restructuring
Restructuring in the year was 589 million. This reflects action being taken to make the business
fit to compete in the current environment.
Cash Flow and Net Debt
Free cash flow was 3.4 billion. Cash flow from operating activities was 6.8 billion reflecting
higher operating profit and lower pensions payments. Further progress was made on reducing working
capital, building on the strong performance in the prior year. Working capital reduced as a
percentage of turnover and has now been negative for five consecutive quarters. Tax payments
increased to 1.3 billion. Net capital expenditure increased 443 million to 1.7 billion,
representing 3.8% of turnover. This primarily reflects investment in new capacity required to
support the strong volume growth of the business in emerging markets.
Closing net debt at 6.7 billion was up from 6.4 billion as at 31
st
December 2009. The
outflow from dividends, acquisitions and the negative impact of foreign exchange rates on net debt
exceeded the inflow from free cash flow and business disposals.
Pensions
The net pensions deficit was 2.1 billion at the end of December 2010 down from 2.6 billion at the
end of 2009. This is due to cash contributions made and good asset returns over the year offset by
the impact of lower corporate bond rates on the calculation of the pension liabilities.
4
COMPETITION INVESTIGATIONS
As previously reported, in June 2008 the European Commission initiated an investigation into
potential competition law infringements in the European Union in relation to consumer detergents.
While the investigation is ongoing, Unilever has concluded that it is now appropriate to take a
provision of 110 million.
In addition and as previously reported, Unilever is involved in a number of other ongoing
investigations by national competition authorities in a number of European countries including
Greece, France, the Netherlands, Belgium and Germany. These investigations are at various stages
and concern a variety of product markets. Provisions have been made to the extent appropriate.
It is Unilevers policy to co-operate fully with the competition authorities in the context of all
ongoing investigations. In addition, Unilever reinforces and enhances its internal competition law
compliance procedures on an ongoing basis.
CAUTIONARY STATEMENT
This announcement may contain forward-looking statements, including forward-looking statements
within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words
such as expects, anticipates, intends, believes or the negative of these terms and other
similar expressions of future performance or results, and their negatives, are intended to identify
such forward-looking statements. These forward-looking statements are based upon current
expectations and assumptions regarding anticipated developments and other factors affecting the
Group. They are not historical facts, nor are they guarantees of future performance.
Because these forward-looking statements involve risks and uncertainties, there are important
factors that could cause actual results to differ materially from those expressed or implied by
these forward-looking statements, including, among others, competitive pricing and activities,
economic slowdown, industry consolidation, access to credit markets, recruitment levels,
reputational risks, commodity prices, continued availability of raw materials, prioritisation of
projects, consumption levels, costs, the ability to maintain and manage key customer relationships
and supply chain sources, consumer demands, currency values, interest rates, the ability to
integrate acquisitions and complete planned divestitures, the ability to complete planned
restructuring activities, physical risks, environmental risks, the ability to manage regulatory,
tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and
regulatory developments, political, economic and social conditions in the geographic markets where
the Group operates and new or changed priorities of the Boards. Further details of potential risks
and uncertainties affecting the Group are described in the Groups filings with the London Stock
Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the 20-F
Report and the Annual Report and Accounts 2009. These forward-looking statements speak only as of
the date of this document. Except as required by any applicable law or regulation, the Group
expressly disclaims any obligation or undertaking to release publicly any updates or revisions to
any forward-looking statements contained herein to reflect any change in the Groups expectations
with regard thereto or any change in events, conditions or circumstances on which any such
statement is based.
ENQUIRIES
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Media:
Media Relations Team
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Investors:
Investor Relations Team
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UK +44 20 7822 6010
trevor.gorin@unilever.com
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+44 20 7822 6830
investor.relations@unilever.com
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or +44 20 7822 5354
lucila.zambrano@unilever.com
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NL +31 10 217 4844
flip.dotsch@unilever.com
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There will be a web cast of the results presentation available at:
www.unilever.com/ourcompany/investorcentre/results/quarterlyresults/default.asp
5
INCOME STATEMENT
(unaudited)
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million
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Full Year
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2010
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2009
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Increase/
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(Decrease)
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Current
rates
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Constant
rates
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Continuing operations:
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Turnover
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44,262
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39,823
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11.1
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%
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3.6
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%
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Operating profit
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6,339
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5,020
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26
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%
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19
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%
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Restructuring, business
disposals and
other (RDIs) (see note 3)
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(281
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(868
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Underlying operating
profit
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6,620
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5,888
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12
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%
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6
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%
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Net finance costs
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(394
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(593
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Finance income
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77
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75
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|
|
|
|
|
|
Finance costs
|
|
|
|
(491
|
)
|
|
|
|
(504
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pensions and similar
obligations
|
|
|
|
20
|
|
|
|
|
(164
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share in net profit/(loss)
of joint ventures
|
|
|
|
120
|
|
|
|
|
111
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share in net profit/(loss)
of associates
|
|
|
|
(9
|
)
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income from
non-current investments
|
|
|
|
76
|
|
|
|
|
374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation
|
|
|
|
6,132
|
|
|
|
|
4,916
|
|
|
|
|
25
|
%
|
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation
|
|
|
|
(1,534
|
)
|
|
|
|
(1,257
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit
|
|
|
|
4,598
|
|
|
|
|
3,659
|
|
|
|
|
26
|
%
|
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
|
354
|
|
|
|
|
289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
equity
|
|
|
|
4,244
|
|
|
|
|
3,370
|
|
|
|
|
26
|
%
|
|
|
|
18
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined
earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operations basic (Euros)
|
|
|
|
1.51
|
|
|
|
|
1.21
|
|
|
|
|
25
|
%
|
|
|
|
17
|
%
|
|
|
Total operations diluted (Euros)
|
|
|
|
1.46
|
|
|
|
|
1.17
|
|
|
|
|
25
|
%
|
|
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6
STATEMENT
OF COMPREHENSIVE INCOME
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
Full Year
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit
|
|
|
|
4,598
|
|
|
|
|
3,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value gains/(losses)
on financial instruments net of tax
|
|
|
|
43
|
|
|
|
|
105
|
|
|
|
Actuarial gains/(losses)
on pension schemes net of tax
|
|
|
|
105
|
|
|
|
|
18
|
|
|
|
Currency retranslation
gains/(losses) net of tax
|
|
|
|
460
|
|
|
|
|
396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income
|
|
|
|
5,206
|
|
|
|
|
4,178
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
|
412
|
|
|
|
|
301
|
|
|
|
Shareholders
equity
|
|
|
|
4,794
|
|
|
|
|
3,877
|
|
|
|
|
|
|
|
|
|
|
|
STATEMENT OF CHANGES IN EQUITY
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
Full Year
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity at 1 January
|
|
|
|
12,536
|
|
|
|
|
10,372
|
|
|
|
Total comprehensive
income for the period
|
|
|
|
5,206
|
|
|
|
|
4,178
|
|
|
|
Dividends on ordinary
capital
|
|
|
|
(2,309
|
)
|
|
|
|
(2,115
|
)
|
|
|
Movement in treasury
stock
|
|
|
|
(126
|
)
|
|
|
|
129
|
|
|
|
Share-based payment
credit
|
|
|
|
144
|
|
|
|
|
195
|
|
|
|
Dividends paid to non-controlling
interests
|
|
|
|
(289
|
)
|
|
|
|
(244
|
)
|
|
|
Currency retranslation
gains/(losses) net of tax
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
Other movements in
equity
|
|
|
|
(86
|
)
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity at the end
of the period
|
|
|
|
15,078
|
|
|
|
|
12,536
|
|
|
|
|
|
|
|
|
|
|
|
7
CASH FLOW STATEMENT
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
Full Year
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating
activities
|
|
|
|
6,818
|
|
|
|
|
6,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax paid
|
|
|
|
(1,328
|
)
|
|
|
|
(959
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from
operating activities
|
|
|
|
5,490
|
|
|
|
|
5,774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest received
|
|
|
|
70
|
|
|
|
|
73
|
|
|
|
Net capital expenditure
|
|
|
|
(1,701
|
)
|
|
|
|
(1,258
|
)
|
|
|
Acquisitions and disposals
|
|
|
|
(361
|
)
|
|
|
|
(139
|
)
|
|
|
Other investing activities
|
|
|
|
828
|
|
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from/(used
in) investing activities
|
|
|
|
(1,164
|
)
|
|
|
|
(1,263
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid on ordinary
share capital
|
|
|
|
(2,323
|
)
|
|
|
|
(2,106
|
)
|
|
|
Interest and preference
dividends paid
|
|
|
|
(494
|
)
|
|
|
|
(517
|
)
|
|
|
Change in financial
liabilities
|
|
|
|
(1,373
|
)
|
|
|
|
(1,567
|
)
|
|
|
Other movements on
treasury stock
|
|
|
|
(124
|
)
|
|
|
|
103
|
|
|
|
Other financing activities
|
|
|
|
(295
|
)
|
|
|
|
(214
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash flow from/(used
in) financing activities
|
|
|
|
(4,609
|
)
|
|
|
|
(4,301
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease)
in cash and cash equivalents
|
|
|
|
(283
|
)
|
|
|
|
210
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at the beginning of the period
|
|
|
|
2,397
|
|
|
|
|
2,360
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange
rate changes
|
|
|
|
(148
|
)
|
|
|
|
(173
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at the end of the period
|
|
|
|
1,966
|
|
|
|
|
2,397
|
|
|
|
|
|
|
|
|
|
|
|
8
BALANCE SHEET
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
|
As
at
|
|
|
|
As at
|
|
|
|
|
|
|
31
December
|
|
|
|
31 December
|
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
13,178
|
|
|
|
|
12,464
|
|
|
|
Intangible assets
|
|
|
|
5,100
|
|
|
|
|
4,583
|
|
|
|
Property, plant and
equipment
|
|
|
|
7,854
|
|
|
|
|
6,644
|
|
|
|
Pension asset for funded
schemes in surplus
|
|
|
|
910
|
|
|
|
|
759
|
|
|
|
Deferred tax assets
|
|
|
|
607
|
|
|
|
|
738
|
|
|
|
Other non-current assets
|
|
|
|
1,034
|
|
|
|
|
1,017
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current
assets
|
|
|
|
28,683
|
|
|
|
|
26,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
|
|
|
4,309
|
|
|
|
|
3,578
|
|
|
|
Trade and other current
receivables
|
|
|
|
4,135
|
|
|
|
|
3,429
|
|
|
|
Current tax assets
|
|
|
|
298
|
|
|
|
|
173
|
|
|
|
Cash and cash equivalents
|
|
|
|
2,316
|
|
|
|
|
2,642
|
|
|
|
Other financial assets
|
|
|
|
550
|
|
|
|
|
972
|
|
|
|
Non-current assets
held for sale
|
|
|
|
876
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
12,484
|
|
|
|
|
10,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
(2,276
|
)
|
|
|
|
(2,279
|
)
|
|
|
Trade payables and
other current liabilities
|
|
|
|
(10,226
|
)
|
|
|
|
(8,413
|
)
|
|
|
Current tax liabilities
|
|
|
|
(639
|
)
|
|
|
|
(487
|
)
|
|
|
Provisions
|
|
|
|
(408
|
)
|
|
|
|
(420
|
)
|
|
|
Liabilities associated
with assets held for sale
|
|
|
|
(57
|
)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
(13,606
|
)
|
|
|
|
(11,599
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net current assets/(liabilities)
|
|
|
|
(1,122
|
)
|
|
|
|
(788
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less
current liabilities
|
|
|
|
27,561
|
|
|
|
|
25,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
due after one year
|
|
|
|
7,258
|
|
|
|
|
7,692
|
|
|
|
Non-current tax liabilities
|
|
|
|
184
|
|
|
|
|
107
|
|
|
|
Pensions and post-retirement
healthcare liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Funded schemes in deficit
|
|
|
|
1,081
|
|
|
|
|
1,519
|
|
|
|
Unfunded schemes
|
|
|
|
1,899
|
|
|
|
|
1,822
|
|
|
|
Provisions
|
|
|
|
886
|
|
|
|
|
729
|
|
|
|
Deferred tax liabilities
|
|
|
|
880
|
|
|
|
|
764
|
|
|
|
Other non-current liabilities
|
|
|
|
295
|
|
|
|
|
248
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current
liabilities
|
|
|
|
12,483
|
|
|
|
|
12,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders
equity
|
|
|
|
14,485
|
|
|
|
|
12,065
|
|
|
|
Non-controlling interests
|
|
|
|
593
|
|
|
|
|
471
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
|
|
15,078
|
|
|
|
|
12,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital employed
|
|
|
|
27,561
|
|
|
|
|
25,417
|
|
|
|
|
|
|
|
|
|
|
|
9
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
1 ACCOUNTING INFORMATION AND POLICIES
The condensed preliminary financial statements are based on International Financial Reporting
Standards (IFRS) as adopted by the EU and IFRS as issued by the International Accounting Standards
Board. With effect from 1 January 2010 the Group has adopted IFRS 3 Business Combinations
(Revised), all other accounting policies and methods of computation are consistent with the year
ended 31 December 2009.
The condensed financial statements are shown at current exchange rates, while percentage
year-on-year changes are shown at both current and constant exchange rates to facilitate
comparison.
The income statement on page 6, the statements of comprehensive income and changes in equity on
page 7, the cash flow statement on page 8, and the analysis of free cash flow on page 13 are
translated at rates current in each period.
The balance sheet on page 9 and the analysis of net debt on page 14 are translated at period-end
rates of exchange.
The financial statements attached do not constitute the full financial statements within the
meaning of Section 434 of the UK Companies Act 2006. Full accounts for Unilever for the year ended
31 December 2009 have been delivered to the Registrar of Companies. The auditors report on these
accounts was unqualified and did not contain a statement under Section 498 (2) or Section 498 (3)
of the UK Companies Act 2006.
Recent accounting developments
The Group is currently assessing the impact of the following revised standards and interpretations
or amendments that are not yet effective. These changes are not expected to have a material impact
on the Groups results of operations, financial position or disclosures:
|
|
|
IAS 24 Related Party Disclosures (Revised) will be effective for periods beginning on
or after 1 January 2011. The changes primarily relate to government-related entities and
the definition of a related party.
|
|
|
|
|
IAS 32 (Amendments) Financial Instruments: Disclosure will be effective for periods
beginning on or after 1 February 2010. The changes primarily relate to the classification
of rights, options and warrants.
|
|
|
|
|
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments is effective for
periods beginning on or after 1 July 2010.
|
|
|
|
|
IFRIC 14 Minimum Funding Requirement (Amendment) is effective for periods beginning on
or after 1 January 2011.
|
|
|
|
|
IFRS 9 Financial Instruments is effective for periods beginning on or after 1 January
2013 amends the classification and measurement for financial assets.
|
|
|
|
|
Improvements to IFRS (issued May 2010) is effective for periods beginning on or after
1 July 2010.
|
2 NON-GAAP MEASURES
In our financial reporting we use certain measures that are not recognised under IFRS or other
generally accepted accounting
principles (GAAP). We do this because we believe that these measures are useful to investors and
other users of our financial
statements in helping them to understand underlying business performance. Wherever we use such
measures, we make clear that these are not intended as a substitute for recognised GAAP measures.
Wherever appropriate and practical, we provide
reconciliations to relevant GAAP measures. Unilever uses constant rate and underlying measures
primarily for internal performance analysis and targeting purposes.
The principal non-GAAP measure which we apply in our reporting is underlying sales growth, which we
reconcile to changes in the GAAP measure turnover in notes 4 and 5. Underlying sales growth
(abbreviated to USG or growth) reports turnover growth at constant exchange rates, excluding
the effects of acquisitions and disposals. Turnover includes the impact of exchange rates,
acquisitions and disposals.
We also comment on underlying trends in operating margin before the impact of restructuring,
disposals and other one-off items, which we collectively term RDIs, on the grounds that the
incidence of these items is uneven between reporting periods. Further detail on RDIs can be found
in note 3. We also discuss free cash flow, which we reconcile in note 8 to the amounts in
the cash flow statement, and net debt, which we reconcile in note 9 to the amounts reported in our
balance sheet and cash flow statement.
10
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
3 SIGNIFICANT ITEMS WITHIN THE INCOME STATEMENT
In our income statement reporting we recognise restructuring
costs, profits and losses on business disposals and certain other one-off items, which we collectively term RDIs. We
disclose on the face of our income statement the total value of such items that arise within operating profit.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
|
Full
Year
|
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
RDIs within operating profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
|
|
|
(589
|
)
|
|
|
|
(897
|
)
|
|
|
Business disposals
|
|
|
|
468
|
|
|
|
|
4
|
|
|
|
Impairments and other one-off items
|
|
|
|
(160
|
)
|
|
|
|
25
|
|
|
|
Total RDIs within operating profit
|
|
|
|
(281
|
)
|
|
|
|
(868
|
)
|
|
|
|
|
|
|
|
|
|
|
The 2010 Impairments and other one-off items cost includes
the provision related to potential competition law infringements in the European Union (see page 5)
and one off costs related to acquisitions.
4 SEGMENT INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
Full Year
|
|
|
Asia Africa
|
|
|
Americas
|
|
|
Western
Europe
|
|
|
Total
|
|
|
million
|
|
|
CEE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
14,897
|
|
|
|
12,850
|
|
|
|
12,076
|
|
|
|
39,823
|
|
|
2010
|
|
|
|
17,685
|
|
|
|
14,562
|
|
|
|
12,015
|
|
|
|
44,262
|
|
|
Change
|
|
|
|
18.7%
|
|
|
|
13.3%
|
|
|
|
(0.5)%
|
|
|
|
11.1%
|
|
|
Impact of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rates
|
|
|
|
10.1%
|
|
|
|
9.0%
|
|
|
|
1.4%
|
|
|
|
7.3%
|
|
|
Acquisitions
|
|
|
|
0.2%
|
|
|
|
0.3%
|
|
|
|
0.5%
|
|
|
|
0.3%
|
|
|
Disposals
|
|
|
|
(0.1)%
|
|
|
|
(0.4)%
|
|
|
|
(2.0)%
|
|
|
|
(0.8)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying sales
growth
|
|
|
|
7.7
%
|
|
|
|
4.0
%
|
|
|
|
(0.4
)%
|
|
|
|
4.1
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
|
|
(2.2)%
|
|
|
|
(0.7)%
|
|
|
|
(1.8)%
|
|
|
|
(1.6)%
|
|
|
Volume
|
|
|
|
10.2%
|
|
|
|
4.8%
|
|
|
|
1.4%
|
|
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
1,927
|
|
|
|
1,843
|
|
|
|
1,250
|
|
|
|
5,020
|
|
|
2010
|
|
|
|
2,253
|
|
|
|
2,169
|
|
|
|
1,917
|
|
|
|
6,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
2,074
|
|
|
|
2,074
|
|
|
|
1,740
|
|
|
|
5,888
|
|
|
2010
|
|
|
|
2,361
|
|
|
|
2,328
|
|
|
|
1,931
|
|
|
|
6,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
12.9%
|
|
|
|
14.3%
|
|
|
|
10.4%
|
|
|
|
12.6%
|
|
|
2010
|
|
|
|
12.7%
|
|
|
|
14.9%
|
|
|
|
16.0%
|
|
|
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying operating
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
13.9%
|
|
|
|
16.1%
|
|
|
|
14.4%
|
|
|
|
14.8%
|
|
|
2010
|
|
|
|
13.4%
|
|
|
|
16.0%
|
|
|
|
16.1%
|
|
|
|
15.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
5 ADDITIONAL INFORMATION BY CATEGORY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savoury
|
|
|
Ice
Cream
and Beverages
|
|
|
Personal
Care
|
|
|
|
|
|
Total
|
|
|
Continuing
operations Full Year
|
|
|
Dressings
and
|
|
|
|
|
|
|
Home Care
|
|
|
|
|
million
|
|
|
Spreads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
13,256
|
|
|
|
7,753
|
|
|
|
11,846
|
|
|
|
6,968
|
|
|
|
39,823
|
|
|
2010
|
|
|
|
14,164
|
|
|
|
8,605
|
|
|
|
13,767
|
|
|
|
7,726
|
|
|
|
44,262
|
|
|
Change
|
|
|
|
6.8%
|
|
|
|
11.0%
|
|
|
|
16.2%
|
|
|
|
10.9%
|
|
|
|
11.1%
|
|
|
Impact of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange rates
|
|
|
|
5.8%
|
|
|
|
6.8%
|
|
|
|
8.5%
|
|
|
|
8.3%
|
|
|
|
7.3%
|
|
|
Acquisitions
|
|
|
|
0.2%
|
|
|
|
0.0%
|
|
|
|
0.6%
|
|
|
|
0.1%
|
|
|
|
0.3%
|
|
|
Disposals
|
|
|
|
(0.7)%
|
|
|
|
(2.0)%
|
|
|
|
0.0%
|
|
|
|
(0.7)%
|
|
|
|
(0.7)%
|
|
|
Underlying sales
growth
|
|
|
|
1.4
%
|
|
|
|
6.1
%
|
|
|
|
6.4
%
|
|
|
|
3.0
%
|
|
|
|
4.1
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Price
|
|
|
|
(1.0)%
|
|
|
|
0.1%
|
|
|
|
(1.4)%
|
|
|
|
(4.8)%
|
|
|
|
(1.6)%
|
|
|
Volume
|
|
|
|
2.5%
|
|
|
|
5.9%
|
|
|
|
7.9%
|
|
|
|
8.2%
|
|
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
1,840
|
|
|
|
731
|
|
|
|
1,834
|
|
|
|
615
|
|
|
|
5,020
|
|
|
2010
|
|
|
|
2,846
|
|
|
|
724
|
|
|
|
2,296
|
|
|
|
473
|
|
|
|
6,339
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
|
13.9%
|
|
|
|
9.4%
|
|
|
|
15.5%
|
|
|
|
8.8%
|
|
|
|
12.6%
|
|
|
2010
|
|
|
|
20.1%
|
|
|
|
8.4%
|
|
|
|
16.7%
|
|
|
|
6.1%
|
|
|
|
14.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6 TAXATION
The effective tax rate for was 25.5%
compared with 26.2% for 2009. The tax rate is calculated by dividing the tax charge by pre-tax profit excluding
the contribution of joint ventures and associates.
Tax effects of components of other comprehensive income were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
|
Full
Year 2010
|
|
|
|
Full
Year 2009
|
|
|
|
|
|
|
Before
tax
|
|
|
|
Tax
(charge)/
credit
|
|
|
|
After
tax
|
|
|
|
Before
tax
|
|
|
|
Tax
(charge)/
credit
|
|
|
|
After
tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value gains/(losses)
on financial instruments
|
|
|
|
41
|
|
|
|
|
2
|
|
|
|
|
43
|
|
|
|
|
163
|
|
|
|
|
(58
|
)
|
|
|
|
105
|
|
|
|
Actuarial gains/(losses)
on pension schemes
|
|
|
|
158
|
|
|
|
|
(53
|
)
|
|
|
|
105
|
|
|
|
|
38
|
|
|
|
|
(20
|
)
|
|
|
|
18
|
|
|
|
Currency retranslation
gains/(losses)
|
|
|
|
460
|
|
|
|
|
|
|
|
|
|
460
|
|
|
|
|
396
|
|
|
|
|
|
|
|
|
|
396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
659
|
|
|
|
|
(51
|
)
|
|
|
|
608
|
|
|
|
|
597
|
|
|
|
|
(78
|
)
|
|
|
|
519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
7 RECONCILIATION OF NET PROFIT TO CASH FLOW
FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
|
Full Year
|
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
profit
|
|
|
|
4,598
|
|
|
|
|
3,659
|
|
|
|
Taxation
|
|
|
|
1,534
|
|
|
|
|
1,257
|
|
|
|
Share of net profit of
joint ventures/associates and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
from non-current
investments
|
|
|
|
(187
|
)
|
|
|
|
(489
|
)
|
|
|
Net finance
costs
|
|
|
|
394
|
|
|
|
|
593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
6,339
|
|
|
|
|
5,020
|
|
|
|
Depreciation,
amortisation and impairment
|
|
|
|
993
|
|
|
|
|
1,032
|
|
|
|
Changes in working
capital
|
|
|
|
169
|
|
|
|
|
1,701
|
|
|
|
Pensions and similar
provisions less payments
|
|
|
|
(472
|
)
|
|
|
|
(1,028
|
)
|
|
|
Restructuring and other
provisions less payments
|
|
|
|
72
|
|
|
|
|
(258
|
)
|
|
|
Elimination of
(profits)/losses on disposals
|
|
|
|
(476
|
)
|
|
|
|
13
|
|
|
|
Non-cash charge for
share-based compensation
|
|
|
|
144
|
|
|
|
|
195
|
|
|
|
Other
adjustments
|
|
|
|
49
|
|
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities
|
|
|
|
6,818
|
|
|
|
|
6,733
|
|
|
|
|
|
|
|
|
|
|
|
8 FREE CASH FLOW
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
|
Full Year
|
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from
operating activities
|
|
|
|
6,818
|
|
|
|
|
6,733
|
|
|
|
Income tax
paid
|
|
|
|
(1,328
|
)
|
|
|
|
(959
|
)
|
|
|
Net capital
expenditure
|
|
|
|
(1,701
|
)
|
|
|
|
(1,258
|
)
|
|
|
Net interest and
preference dividends paid
|
|
|
|
(424
|
)
|
|
|
|
(444
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
|
3,365
|
|
|
|
|
4,072
|
|
|
|
|
|
|
|
|
|
|
|
9 NET DEBT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
million
|
|
|
As
at 31
|
|
|
|
As
at 31
|
|
|
|
|
|
|
December
|
|
|
|
December
|
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial
liabilities
|
|
|
|
(9,534
|
)
|
|
|
|
(9,971
|
)
|
|
|
Financial liabilities
due within one year
|
|
|
|
(2,276
|
)
|
|
|
|
(2,279
|
)
|
|
|
Financial liabilities
due after one year
|
|
|
|
(7,258
|
)
|
|
|
|
(7,692
|
)
|
|
|
Cash and cash
equivalents as per balance sheet
|
|
|
|
2,316
|
|
|
|
|
2,642
|
|
|
|
Cash and cash equivalents
as per cash flow statement
|
|
|
|
1,966
|
|
|
|
|
2,397
|
|
|
|
Add bank overdrafts
deducted therein
|
|
|
|
350
|
|
|
|
|
245
|
|
|
|
Other financial
assets
|
|
|
|
550
|
|
|
|
|
972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt
|
|
|
|
(6,668
|
)
|
|
|
|
(6,357
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
10 COMBINED EARNINGS PER SHARE
The combined earnings per share calculations are based on the average number of share units representing the combined
ordinary shares of NV and PLC in issue during the period, less the average number of shares held as treasury stock.
In calculating diluted earnings per share, a number of adjustments
are made to the number of shares, principally the following: (i) conversion into PLC ordinary shares in the year 2038 of shares in a group
company under the arrangements for the variation of the Leverhulme Trust and (ii) the exercise of share options by employees.
Earnings per share for total operations for the twelve months were
calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined EPS
Basic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
combined share units (Millions of units)
|
|
|
|
2,812.3
|
|
|
|
|
2,796.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit attributable
to shareholders equity
|
|
|
|
4,244
|
|
|
|
|
3,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined EPS basic
|
|
|
|
1.51
|
|
|
|
|
1.21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined EPS
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted average number
of combined share units (Millions of units)
|
|
|
|
2,905.1
|
|
|
|
|
2,890.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined EPS
diluted
|
|
|
|
1.46
|
|
|
|
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|
The numbers of shares included in the calculation of earnings per share is an average for the period.
During the period the following movements in shares have taken place:
|
|
|
|
|
|
|
|
|
|
|
Millions
|
|
|
|
|
|
|
|
|
|
Number of shares at 31
December 2009 (net of treasury stock)
|
|
|
|
2,804.2
|
|
|
|
Net movements in shares
under incentive schemes
|
|
|
|
5.6
|
|
|
|
|
|
|
|
|
|
Number of shares at 31
December 2010
|
|
|
|
2,809.8
|
|
|
|
|
|
|
|
|
14
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
11 DIVIDENDS
As agreed at the 2009 Annual General Meetings, Unilever moved to the
payment of quarterly dividends with effect from
1 January 2010.
The Boards have declared quarterly dividends at the following rates which are equivalent in value at the rate of exchange applied under the terms of the Equalisation Agreement between the two companies:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2010
|
|
|
Q2 2010
|
|
|
Q3 2010
|
|
|
Q4 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Unilever N.V. ordinary
share:
|
|
|
0.2080
|
|
|
0.2080
|
|
|
0.2080
|
|
|
0.2080
|
|
|
Per Unilever PLC ordinary
share:
|
|
|
£0.1803
|
|
|
£0.1726
|
|
|
£0.1820
|
|
|
£0.1775
|
|
|
Per Unilever N.V. New
York share:
|
|
|
US$0.2764
|
|
|
US$0.2750
|
|
|
US$0.2916
|
|
|
US$0.2861
|
|
|
Per Unilever PLC American
Depositary Receipt:
|
|
|
US$0.2764
|
|
|
US$0.2750
|
|
|
US$0.2916
|
|
|
US$0.2861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The quarterly dividend calendar will be as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Announcement
Date
|
|
|
Ex-Dividend
Date
|
|
|
Record
Date
|
|
|
Payment
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calendar Year 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly dividend announced with Q4 2010 results
|
|
|
3 February 2011
|
|
|
9 February 2011
|
|
|
11 February 2011
|
|
|
16 March 2011
|
|
|
Quarterly dividend announced with Q1 2011 results
|
|
|
28 April 2011
|
|
|
11 May 2011
|
|
|
13 May 2011
|
|
|
15 June 2011
|
|
|
Quarterly dividend announced with Q2 2011 results
|
|
|
4 August 2011
|
|
|
10 August 2011
|
|
|
12 August 2011
|
|
|
14 September 2011
|
|
|
Quarterly dividend announced with Q3 2011 results
|
|
|
3 November 2011
|
|
|
9 November 2011
|
|
|
11 November 2011
|
|
|
14 December 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 ACQUISITIONS AND DISPOSALS
On 18 January 2010 we announced a definitive agreement with Hormel
Foods Corporation to sell our Shedds Country Crock branded side dish
business in the US. The transaction was completed in February 2010.
Under the terms of the agreement, Hormel will market and sell Shedds Country
Crock chilled side-dish products, such as homestyle mashed potatoes, under a licence agreement.
On 26 April 2010 we announced the agreement with Strauss Holdings Ltd to increase the Unilever shareholding in Glidat Strauss Israel from 51% to 90% for an undisclosed sum. The transaction was completed on 7 October 2010.
On 1 June 2010 we completed the disposal of the Brunch brand in Germany to Bongrain.
On 9 August 2010 we announced an asset purchase agreement with the Norwegian dairy group TINE, to acquire the Ice Cream operations of Diplom-Is in Denmark, as of 30th September 2010. The value of the transaction is undisclosed.
On 24 September 2010 we announced a definitive agreement to sell our consumer tomato products business in Brazil to Cargill for approximately R$600 million. The assets and liabilities related to this business are reported as held for sale.
On 27 September 2010 we announced a definitive agreement to acquire Alberto Culver Company for US$3.7 billion in cash. The acquisition has received shareholder approval but is subject to regulatory approval.
On
28 September 2010 we announced an agreement to buy EVGAs ice cream brands and distribution network in Greece for an undisclosed sum. The transaction was completed on 27 January 2011.
The disposal of our frozen foods business in Italy for 805m to Birds Eye Iglo was completed on 1 October 2010.
The
acquisition of Sara Lees personal care business was completed on 6 December 2010.
13 EVENTS AFTER THE BALANCE SHEET DATE
There were no material post balance sheet events other than those mentioned elsewhere in this report.
15
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