Deze pagina is een vertaling van de officiële Engelse aankondiging. In het geval van verschillen prevaleert de Engelse tekst.
RESULTATEN VIERDE KWARTAAL EN GEHELE JAAR 2009
STERK GROEIMOMENTUM ONDANKS EEN UITDAGEND KLIMAAT
Hoofdpunten gehele jaar
· Groei van de onderliggende verkopen van 3,5%. De onderliggende volumegroei van 2,3% trok aan gedurende het
jaar tot 5,0% in het vierde kwartaal. Deze toename werd behaald in het merendeel van onze belangrijke categorieën
en landen, waardoor de marktaandelen in alle regio's naarmate het jaar vorderde een beter resultaat lieten zien.
· Brutowinstmarge vóór RDI's met 0,2 procentpunt omhoog. Uitgaven voor reclame en promoties stegen met
0,8 procentpunt. Margeontwikkeling werd ondersteund door kostenvoordelen uit hogere volumes en besparingen
van 1,4 miljard door lagere kosten in de toeleveringsketen en een plattere organisatiestructuur.
· Kasstroom uit bedrijfsactiviteiten omhoog met 1,4 miljard door significante verbetering van het werkkapitaal en na
een stijging van 0,5 miljard in afdrachten aan pensioenfondsen.
Hoofdpunten vierde kwartaal
· Groei van de onderliggende verkopen van 1,8% met positieve volumegroei van 5%, breed gespreid over landen en
categorieën. Onderliggende prijsgroei van -3,1% weerspiegelt de daling van grondstofkosten na de piek in 2008.
· Brutowinstmarge vóór RDI's met 1,0 procentpunt omhoog. Uitgaven voor reclame en promoties toegenomen met
2,4 procentpunt.
· Bedrijfswinst in Q4 2008 was inclusief winsten uit desinvesteringen van 611 miljoen vóór belastingen.
· Sterke generatie van kasgelden gehandhaafd in het vierde kwartaal.
Paul Polman, Chief Executive Officer: "We hebben goede vooruitgang geboekt onder uitdagende marktomstan-
digheden. De verbetering van onze marktaandelen had een brede basis en trok aan gedurende het jaar. Onze merken zijn
sterker, dankzij kwalitatief betere innovaties en een aanzienlijke verhoging van de uitgaven voor reclame en promoties.
Wij hebben onze leidende posities in ontwikkelings- en opkomende markten verder versterkt en bemoedigende
vooruitgang geboekt met het herstellen van de volumegroei in West-Europa. De organisatie ontwikkelt zich snel in de
richting van een meer op prestatie gerichte cultuur. We zijn sneller en alerter en erop gericht elke dag meer dan 2 miljard
consumenten van dienst te zijn.
Wij verwachten in 2010 een aanhoudende druk op de bestedingsruimte van consumenten en meer activiteiten van
concurrenten. Onze focus blijft op volumegroei als belangrijkste motor voor waardecreatie op de lange termijn, in
combinatie met een jaarlijkse gestage en duurzame verbetering van de brutowinstmarge en een sterke kasstroom."
Belangrijkste cijfers (niet door de externe
Vierde kwartaal
accountants gecontroleerd, actuele wisselkoersen. Incl. Gehele jaar 2009
2009
niet-GAAP maatstaven met *, zie pag. 2 voor uitleg)
9.659 (4,8)% Omzet ( miljoen) 39.823 (1,7)%
1,8% Groei van de onderliggende verkopen* 3,5%
972 (33)% Bedrijfswinst ( miljoen) 5.020 (30)%
1.258 4% Bedrijfswinst vóór RDI's* ( miljoen) 5.888 0%
906 (24)% Nettowinst ( miljoen) 3.659 (31)%
830 (3)% Nettowinst vóór RDI's* ( miljoen) 4.014 (6)%
0,30 (27)% Winst per aandeel () 1,21 (33)%
0,27 (6)% Winst per aandeel vóór RDI's* () 1,33 (7)%
Dividend: Eerste interim-kwartaaldividend 0,195
4 februari 2010
In the following commentary we report underlying sales growth (abbreviated to `USG' or `growth') at constant exchange rates, excluding the
effects of acquisitions and disposals. Turnover includes the impact of exchange rates, acquisitions and disposals. Unilever uses `constant rate'
and `underlying' measures primarily for internal performance analysis and targeting purposes. We also comment on trends in underlying
operating margins (meaning before the impact of restructuring, disposals, and other one-off items, which we collectively term RDIs) and use
the movements in Ungeared Free Cash Flow and Return On Invested Capital to measure progress against our longer-term value creation goals.
We may also discuss net debt, for which we provide an analysis in the notes to the financial statements. Unilever believes that such measures
provide additional information for shareholders on underlying business performance trends. Such measures are not defined under IFRS and
are not intended to be a substitute for GAAP measures of turnover, operating profit, EPS and cash flow. Please refer also to notes 2 to 5 to the
financial statements. Further information about certain of these measures is available on our website at www.unilever.com/investorrelations
OPERATIONAL REVIEW
Fourth Quarter 2009 Full Year 2009
(unaudited) Turnover USG Volume Price Turnover USG Volume Price
m % % % m % % %
Asia Africa CEE 3,659 7.4 9.4 (1.8) 14,897 7.7 4.1 3.4
Americas 3,141 1.2 5.5 (4.1) 12,850 4.2 2.5 1.6
Western Europe 2,859 (4.2) (0.7) (3.6) 12,076 (1.9) (0.1) (1.8)
Unilever Total 9,659 1.8 5.0 (3.1) 39,823 3.5 2.3 1.2
Savoury, dressings & spreads 3,473 (2.8) 13,256 (0.1)
Ice cream & beverages 1,439 2.6 7,753 4.0
Personal care 3,014 6.5 11,846 5.3
Home care & other 1,733 2.7 6,968 7.1
Unilever Total 9,659 1.8 39,823 3.5
REGIONS
Despite some of the most difficult trading conditions in recent memory, all regions delivered an improving trend
in volumes and market share, driven by stronger innovation and advertising and promotional support. Discipline
in execution is also improving. We have improved customer service levels and are starting to see progress in on-
shelf availability. We have taken decisive action to ensure that our prices stay competitive and where appropriate
we have adjusted prices to reflect easing commodity costs, just as we took necessary increases in 2008. Cost
saving programmes continued to deliver significant benefits across the business.
We are accelerating the roll-out of innovations across more countries.
Asia Africa CEE Full Year USG +7.7%, Volume +4.1%, Underlying operating margin +220 bps
In a very challenging and volatile environment the region posted another strong growth and margin
improvement. Volume growth accelerated quarter-on-quarter and market shares progressed in most parts of the
region with the exception of India, where actions have been taken across the portfolio to strengthen market
shares.
We continue to invest aggressively behind the fast-growing emerging markets including China and Russia. We
have implemented business models which have proven successful in other parts of the world in order to reach
increasing numbers of consumers and to build consumption. Having established the regional supply chain centre
in Singapore we are increasing leverage, speed and scale across the region.
The operating margin before RDIs was up by 220 bps in the year as a result of lower commodity costs and
operational leverage.
The Americas Full year USG +4.2%, Volume +2.5%, Underlying operating margin + 70 bps
A competitive performance with continuing momentum across the business. Volume growth continues to
accelerate with all major units contributing. Sales in Latin America were up 8.1% with an acceleration of volume
growth in Brazil. North America grew at 0.8% reflecting good growth in the retail channel while foodservice was
lower, mainly reflecting the exit from unbranded business.
Our focus on every day great execution has delivered benefits across the region with improvements in customer
service and in-store presence. The Customer Insight and Innovation Centre enables us to provide solutions which
help our customers to grow faster.
The operating margin before RDIs was up 70 bps in the year despite the impact of dilution from business
disposals.
2
Western Europe Full Year USG -1.9%, Volume -0.1%, Underlying operating margin 240 bps
There were encouraging performances in the year in a number of major markets, with an improving trend in
quarterly volume growth. Fourth quarter volume growth of -0.7% translates to between 1 and 2% adjusting for
the impact of two fewer trading days. The challenging conditions in Southern Europe continue.
The full power of the single IT system is being leveraged across the business to improve operational execution and
to drive efficiencies. We expect to complete the acquisition of the Personal Care business of Sara Lee by Q3 2010.
We are rolling out the Customer Insight and Innovation Centres, with the recent opening of a new centre in the
UK.
The operating margin before RDIs was down 240 bps in the year, largely due to a substantial increase in marketing
investment and the negative impact of a weaker sterling on our UK business.
CATEGORIES
We continued to support the growth of global brands through the rapid rollout of bigger and better innovations
to an increasing number of countries. In addition we substantially increased brand support levels at the same
time as media rates were lower. Overall, we significantly increased share of voice. We continue to see the impact
of the tough economic conditions on consumers in many key markets as we are focused on providing products
which meet their needs, increasingly at value prices.
Savoury, Dressings and Spreads Full Year USG -0.1%
Our Savoury business showed good growth with continued success from Knorr bouillon gel `stockpots' which have
been rolled out to 13 markets. Share trends are improving, with Western Europe benefiting from strong
renovation of Knorr. Latin America was boosted by Knorr instant soup and rice seasoning launches in Brazil.
South East Asia saw good progress from low cost seasoning mixes, especially in Vietnam and Indonesia.
In Spreads, market conditions remained challenging but good progress was made in gaining share, especially in
the UK, North America and Germany, where the `family goodness' campaign continues to celebrate the health
benefits of margarine. Dressings growth has been driven by the key markets of the UK, US and Brazil, and also by
France, where a return to growth was led by a new Amora campaign. Hellmann's mayonnaise with free range
eggs has been successfully rolled out to many markets supported by communication to inspire new healthy uses of
mayonnaise.
Ice Cream and Beverages Full Year USG +4.0%
In Tea we achieved double digit growth with strong performance from Lipton in many D&E markets. Pyramid
bags were successfully launched in CEE, Lipton Milk Tea was relaunched in China and a Lipton value variant drove
major share gains in Turkey. Ades soy-based drinks also delivered double digit growth, driven particularly by the
launch of a calcium enriched range in Brazil. In Ice Cream, Magnum continued to be a key growth driver, with the
Temptation range performing well in Western Europe. There was good progress in Latin America especially in
Brazil, where the brand was successfully re-launched. In North America the Klondike range has been re-launched
with a thicker chocolate shell and in Russia good progress was made from innovation and distribution gains.
Momentum continued in the South East Asian markets, especially Australia which saw strong growth across the
entire ice cream range.
Personal Care Full Year USG +5.3%
Our Personal Care category delivered strong growth across the board. Dove growth was sustained by advertising
which emphasises core moisturising benefits, the successful `Go Fresh' range and the launch of Dove Nutrium
Moisture in the US. The `Dove for Men +Care' range has been launched in Italy, France, Spain and Benelux with
encouraging early results. Lifebuoy delivered double digit growth on the back of a relaunch that emphasised core
hygiene benefits whilst Pond's delivered a strong performance in many markets behind new launches and
differentiated innovation.
Axe had another good year helped by the successful launch of Axe Hair in the US. Clear continues to make good
progress and is now present in over 30 markets. Although weaker in the early part of the year, Sunsilk is now
picking up on the back of the new range co-created with leading stylists. TIGI growth is on track, helped by the
successful relaunch of Catwalk the first joint collaboration with Unilever. The Signal White Now mouthwash
product has been rolled out to 12 markets with good results.
3
Home care and other Full year USG +7.1%
In Laundry our `Dirt is Good', Surf and Comfort brands all delivered strong growth. Dirt is Good was driven by the
continuing success of Small & Mighty concentrated liquids, the relaunch of Omo Automatic and Liquids in China,
Omo Tanquinho products for semi-automatic machines in Brazil and new Skip Black and White variants in Latin
America. The Surf brand has been launched in Nigeria and Twilight Sensations continues to perform well.
Comfort Fabric Conditioners benefited from the concentrated variants and `one-rinse' products launched in
Vietnam and Indonesia.
The Cif power cream spray relaunch with Active Shield technology is being rolled out across CEE and Western
Europe with promising results so far.
ADDITIONAL COMMENTARY ON THE FINANCIAL STATEMENTS FULL YEAR
Finance costs and tax
The cost of financing net borrowings was 429 million, 29 million higher than last year. The interest rate on net
borrowings was 4.9%, compared with 4.5% last year.
There was a net charge of 164 million for pensions financing compared with a credit of 143 million in the
previous year.
The tax rate before RDIs, was 26.6%, in line with last year, and 27.6% in the fourth quarter. The effective tax rate
for the year was 26.2% compared with 26.4% for 2008. Our longer-term expectation for the tax rate before RDIs
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 489 million, which included a gain of 327 million from the disposal of the majority of our equity
interest in JohnsonDiversey. This compares with 219 million last year, which included a gain of 61 million on
the disposal of our interests in plantations in Cote D'lvoire.
Earnings per share
Earnings per share before RDIs at 1.33 for the year were 7% lower, principally due to the net charge for pensions
financing, compared with a credit last year. Disposal dilution impacted Earnings per share by 2% and minorities a
further 1%. In the fourth quarter earnings per share before RDIs declined by 6%.
Reported earnings per share of 1.21 were 33% lower than last year which was boosted by one-off profits on
disposals of businesses.
Cash Flow
Cash flow from operating activities of 6.8 billion was up 1.4 billion and benefited from active management of
working capital across all regions, net of one-off contributions to several pension funds. Income tax paid was 0.5
billion higher in 2008, mainly due to tax on disposals. Investment in capital expenditure has been increased.
Several businesses were sold in 2008 generating large cash inflows. Acquisitions included Inmarko ice cream in
2008 and TIGI hair care in 2009. Unilever bought back 1.5 billion shares in 2008.
Ungeared free cash flow was 4.9 billion, which was 1.7 billion higher than last year.
Return on Invested Capital
Return on invested capital, excluding profits on disposals, was at the same level as in 2008. Overall return on
invested capital was 11.2% compared with 15.7% in 2008 which benefited from significant profits on business
disposals.
4
Balance sheet
Working capital is much reduced and contributed to the strong cash generation over the past year. Several bonds
were issued in 2009, reducing short-term borrowings and increasing financial liabilities due after one year. The
net deficit in pension schemes reduced by 0.8 billion to 2.6 billion.
DIVIDEND
As agreed at the 2009 Annual General Meetings, Unilever has moved to the payment of quarterly dividends with
effect from 1 January 2010. This means that, in 2010, four quarterly interim dividends will be paid in March, June,
September and December 2010. The Boards have declared a quarterly interim dividend of 0.195. Further details,
including amounts payable in sterling and US dollars are given in note 10 on page 15, together with the dividend
timetable for the remainder of 2010.
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. Unilever has received a
number of requests for information from the European Commission regarding the investigation and has been
subject to unannounced investigations at some of its premises. The investigation is ongoing although no
statement of objections against Unilever has been issued to date. It is too early to reliably assess the ultimate
resolution or to estimate the fines which the Commission will seek to impose on Unilever as a result of this
investigation. Therefore no provision has been made. However, substantial fines can be levied as a result of
European Commission investigations. Fines imposed in other sectors for violations of competition rules have
amounted to hundreds of millions of euros.
In December 2009, Unilever received separate statements of objection from the French competition authority and
from the Italian competition authority in connection with investigations into certain product markets in France
and Italy respectively. An earlier decision by the Greek authority fining Unilever in relation to alleged restrictions
on parallel trade within certain of its contracts with retailers in Greece is under appeal. Appropriate provisions
have been made in the fourth quarter in relation to these investigations and the fining decision.
In addition and as previously reported, Unilever is involved in a number of other ongoing investigations by
national competition authorities. These include investigations in Belgium, the Czech Republic, France, Germany
and The Netherlands. These investigations are at various stages and concern a variety of product markets. In
several cases it is not clear that the authorities will seek to impose a fine on Unilever, and in others it is too early
to be able reasonably to assess the level of fines which the authorities may seek to impose.
It is Unilever's 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.
5
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, including any financial objectives,
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, consumption levels,
costs, the ability to maintain and manage key customer relationships and supply chain sources, 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 Group's filings with the London Stock Exchange, Euronext Amsterdam
and the US Securities and Exchange Commission, including the Annual Report and Accounts on Form 20-F. These forward-
looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation,
the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
ENQUIRIES
Media: Media Relations Team Investors: Investor Relations Team
UK +44 20 7822 6805 tim.johns@unilever.com +44 20 7822 6830 investor.relations@unilever.com
or +44 20 7822 6010 trevor.gorin@unilever.com
NL +31 10 217 4844 flip.dotsch@unilever.com
There will be a web cast of the results presentation available at:
www.unilever.com/ourcompany/investorcentre/results/quarterlyresults/default.asp
6
CONDENSED FINANCIAL STATEMENTS
INCOME STATEMENT
(unaudited)
Fourth Quarter million Full Year
Increase/ Increase/
2009 2008 (Decrease) 2009 2008 (Decrease)
Current Constant Current Constant
rates rates rates rates
Continuing operations:
9,659 10,151 (5)% 1 % Turnover 39,823 40,523 (2)% 1 %
972 1,458 (33)% (28)% Operating profit 5,020 7,167 (30)% (29)%
Restructuring, business disposals and
(286) 244 other (RDIs) (see note 3) (868) 1,269
1,258 1,214 4 % 9 % Operating profit before RDIs 5,888 5,898 0% 1 %
(137) (56) Net finance costs (593) (257)
15 28 Finance income 75 106
(119) (127) Finance costs (504) (506)
(33) 43 Pensions and similar obligations (164) 143
12 19 Share in net profit/(loss) of joint ventures 111 125
12 (2) Share in net profit/(loss) of associates 4 6
346 73 Other income from non-current investments 374 88
1,205 1,492 (19)% (14)% Profit before taxation 4,916 7,129 (31)% (30)%
(299) (303) Taxation (1,257) (1,844)
906 1,189 (24)% (19)% Net profit 3,659 5,285 (31)% (29)%
Attributable to:
75 53 Minority interests 289 258
831 1,136 (27)% (22)% Shareholders' equity 3,370 5,027 (33)% (31)%
Combined earnings per share
0.30 0.41 (27)% (21)% Total operations (Euros) 1.21 1.79 (33)% (31)%
0.29 0.39 (27)% (21)% Total operations diluted (Euros) 1.17 1.73 (33)% (31)%
7
STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
million Full Year
2009 2008
Net profit 3,659 5,285
Other comprehensive income
Fair value gains/(losses) on financial instruments net of tax 105 (164)
Actuarial gains/(losses) on pension schemes net of tax 18 (2,293)
Currency retranslation gains/(losses) net of tax 396 (1,688)
Total comprehensive income 4,178 1,140
Attributable to:
Minority interests 301 205
Shareholders' equity 3,877 935
STATEMENT OF CHANGES IN EQUITY
(unaudited)
million Full Year
2009 2008
Equity at 1 January 10,372 12,819
Total comprehensive income for the year 4,178 1,140
Dividends on ordinary capital (2,115) (2,052)
Movement in treasury stock 129 (1,417)
Share-based payment credit 195 125
Dividends paid to minority shareholders (244) (208)
Currency retranslation gains/(losses) net of tax 3 (38)
Other movements in equity 18 3
Equity at 31 December 12,536 10,372
8
CASH FLOW STATEMENT
(unaudited)
million Full Year
2009 2008
Cash flow from operating activities 6,733 5,326
Income tax paid (959) (1,455)
Net cash flow from operating activities 5,774 3,871
Interest received 73 105
Net capital expenditure (1,258) (1,099)
Acquisitions and disposals (139) 2,265
Other investing activities 61 144
Net cash flow from/(used in) investing activities (1,263) 1,415
Dividends paid on ordinary share capital (2,106) (2,086)
Interest and preference dividends paid (517) (487)
Change in financial liabilities (1,567) 1,050
Share buy-back programme - (1,503)
Other movements on treasury stock 103 103
Other financing activities (214) (207)
Net cash flow from/(used in) financing activities (4,301) (3,130)
Net increase/(decrease) in cash and cash equivalents 210 2,156
Cash and cash equivalents at the beginning of the year 2,360 901
Effect of foreign exchange rate changes (173) (697)
Cash and cash equivalents at the end of the year 2,397 2,360
9
BALANCE SHEET
(unaudited)
As at As at
31 December 31 December
million 2009 2008
Goodwill 12,464 11,665
Intangible assets 4,583 4,426
Property, plant and equipment 6,644 5,957
Pension asset for funded schemes in surplus 759 425
Deferred tax assets 738 1,068
Other non-current assets 1,017 1,426
Total non-current assets 26,205 24,967
Inventories 3,578 3,889
Trade and other current receivables 3,429 3,823
Current tax assets 173 234
Cash and cash equivalents 2,642 2,561
Other financial assets 972 632
Non-current assets held for sale 17 36
Total current assets 10,811 11,175
Financial liabilities (2,279) (4,842)
Trade payables and other current liabilities (8,413) (7,824)
Current tax liabilities (487) (377)
Provisions (420) (757)
Total current liabilities (11,599) (13,800)
Net current assets/(liabilities) (788) (2,625)
Total assets less current liabilities 25,417 22,342
Financial liabilities due after one year 7,692 6,363
Non-current tax liabilities 107 189
Pensions and post-retirement healthcare liabilities:
Funded schemes in deficit 1,519 1,820
Unfunded schemes 1,822 1,987
Provisions 729 646
Deferred tax liabilities 764 790
Other non-current liabilities 248 175
Total non-current liabilities 12,881 11,970
Shareholders' equity 12,065 9,948
Minority interests 471 424
Total equity 12,536 10,372
Total capital employed 25,417 22,342
10
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. The basis of preparation is consistent with the year
ended 31 December 2008, except as set out below.
With effect from 1 January 2009 we have implemented IAS 1 (Revised) `Presentation of Financial Statements' and IFRS 8
`Operating Segments'. Our reportable segments under IFRS 8 are our three geographic regions, and the Group's chief
operating decision maker is the Unilever Executive (UEx). In note 4 we provide analysis of the key measure of profit, being
operating profit, which is used by UEx to assess the performance of the operating segments. There are no material sales
between our operating regions. Figures for the prior year have been restated to reflect the fact that our operations in Central
and Eastern Europe are now managed together with those in Asia and Africa. There has been no material change in the
segmental analysis of assets since the position reported at 31 December 2008. We provide additional analysis by product area
on a voluntary basis in note 5.
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 7, the statements of
comprehensive income and movements in equity on page 8 and the cash flow statement on page 9 are translated at rates
current in each period. The balance sheet on page 10 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 2008 have been delivered to the Registrar of
Companies. The auditors' report on those accounts was unqualified and did not contain a statement under Section 237(2) or
Section 237(3) of the UK Companies Act 1985.
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. The principal non-GAAP measure which we apply in our quarterly reporting is
underlying sales growth, which we reconcile to changes in the GAAP measure turnover in notes 4 and 5. In note 8 we reconcile
net debt to the amounts reported in our balance sheet and cash flow statement. We also comment on underlying trends in
operating margin before the impact of restructuring, disposals and other one-off items, on the grounds that the incidence of
these items is uneven between quarterly reporting periods. In addition, we report annually against two further non-GAAP
measures: Ungeared Free Cash Flow and Return on Invested Capital. Further information about these measures and their
reconciliation to GAAP measures is given on our website at www.unilever.com/investorrelations
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. In our operating review by geographic segment and in note 4 we highlight the impact of
these items on our operating margin. The following schedule shows the impact on net profit of RDIs arising within operating
profit, together with the related tax effect, and also highlights the impact of similar one-off items arising elsewhere in the
income statement. The impact of RDIs on reported Earnings Per Share is given in note 9.
million
Fourth Quarter Full Year
2009 2008 2009 2008
RDIs within operating profit:
(287) (378) Restructuring (897) (868)
1 611 Business disposals 4 2,190
- 11 Impairments and other one-off items 25 (53)
(286) 244 Total RDIs within operating profit (868) 1,269
79 27 Tax effect of RDIs within operating profit: 249 (333)
283 58 RDIs arising below operating profit: 264 82
76 329 Total impact of RDIs on net profit (355) 1,018
11
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
4 SEGMENT INFORMATION
Continuing operations Fourth Quarter
Asia Africa Western
million CEE Americas Europe Total
Turnover
2008 3,657 3,393 3,101 10,151
2009 3,659 3,141 2,859 9,659
Change 0.1 % (7.4)% (7.8)% (4.8)%
Impact of:
Exchange rates (6.7)% (7.6)% (2.4)% (5.7)%
Acquisitions 0.4 % 0.8 % 0.6 % 0.6 %
Disposals (0.5)% (1.7)% (2.0)% (1.4)%
Underlying sales growth 7.4 % 1.2 % (4.2)% 1.8 %
Price (1.8)% (4.1)% (3.6)% (3.1)%
Volume 9.4 % 5.5 % (0.7)% 5.0 %
Operating profit
2008 367 569 522 1,458
2009 432 462 78 972
Operating profit before RDIs
2008 323 567 324 1,214
2009 472 550 236 1,258
Operating margin
2008 10.0% 16.8% 16.8% 14.4%
2009 11.8% 14.7% 2.7% 10.1%
Operating margin before RDIs
2008 8.9% 16.7% 10.4% 12.0%
2009 12.9% 17.5% 8.2% 13.0%
Continuing operations Full Year
Asia Africa Western
million CEE Americas Europe Total
Turnover
2008 14,471 13,199 12,853 40,523
2009 14,897 12,850 12,076 39,823
Change 2.9 % (2.6)% (6.0)% (1.7)%
Impact of:
Exchange rates (4.0)% (1.2)% (2.5)% (2.7)%
Acquisitions 0.5 % 0.7 % 0.5 % 0.6 %
Disposals (0.9)% (6.0)% (2.2)% (3.0)%
Underlying sales growth 7.7 % 4.2 % (1.9)% 3.5%
Price 3.4 % 1.6 % (1.8)% 1.2 %
Volume 4.1 % 2.5 % (0.1)% 2.3 %
Operating profit
2008 1,701 2,945 2,521 7,167
2009 1,927 1,843 1,250 5,020
Operating profit before RDIs
2008 1,695 2,038 2,165 5,898
2009 2,074 2,074 1,740 5,888
Operating margin
2008 11.8% 22.3% 19.6% 17.7%
2009 12.9% 14.3% 10.4% 12.6%
Operating margin before RDIs
2008 11.7% 15.4% 16.8% 14.6%
2009 13.9% 16.1% 14.4% 14.8%
12
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
5 ADDITIONAL INFORMATION BY PRODUCT AREA
Continuing operations Fourth Quarter
Savoury Ice cream Home care
dressings and Personal and
million and spreads beverages care other Total
Turnover
2008 3,860 1,529 2,994 1,768 10,151
2009 3,473 1,439 3,014 1,733 9,659
Change (10.0)% (5.9)% 0.7% (2.0)% (4.8)%
Impact of:
Exchange rates (4.4)% (8.3)% (6.7)% (4.8)% (5.7)%
Acquisitions 0.5 % 0.0 % 1.3 % 0.3 % 0.6 %
Disposals (3.7)% 0.0 % 0.0 % 0.0 % (1.4)%
Underlying sales growth (2.8)% 2.6 % 6.5 % 2.7 % 1.8 %
Operating profit
2008 1,049 (34) 434 9 1,458
2009 464 (79) 478 109 972
Operating margin
2008 27.2% (2.2)% 14.5% 0.5% 14.4%
2009 13.4% (5.5)% 15.9% 6.3% 10.1%
Continuing operations Full Year
Savoury Ice cream Home care
dressings and Personal and
million and spreads beverages care other Total
Turnover
2008 14,232 7,694 11,383 7,214 40,523
2009 13,256 7,753 11,846 6,968 39,823
Change (6.9)% 0.8% 4.1% (3.4)% (1.7)%
Impact of:
Exchange rates (2.1)% (3.3)% (2.2)% (3.8)% (2.7)%
Acquisitions 0.3 % 0.3 % 1.1 % 0.5 % 0.6 %
Disposals (5.0)% 0.0 % 0.0 % (6.7)% (3.0)%
Underlying sales growth (0.1)% 4.0 % 5.3 % 7.1 % 3.5 %
Operating profit
2008 3,216 915 1,824 1,212 7,167
2009 1,840 731 1,834 615 5,020
Operating margin
2008 22.6% 11.9% 16.0% 16.8% 17.7%
2009 13.9% 9.4% 15.5% 8.8% 12.6%
13
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
6 TAXATION
The effective tax rate for the year was 26.2% compared with 26.4% for 2008. 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 2009 Full Year 2008
Tax Tax
Before (charge)/ After Before (charge)/ After
tax credit tax tax credit tax
Fair value gains/(losses) on financial instruments net of tax 163 (58) 105 (204) 40 (164)
Actuarial gains/(losses) on pension schemes net of tax 38 (20) 18 (3,127) 834 (2,293)
Currency retranslation gains/(losses) net of tax 396 - 396 (1,688) - (1,688)
Other comprehensive income 597 (78) 519 (5,019) 874 (4,145)
7 RECONCILIATION OF NET PROFIT TO CASH FLOW FROM OPERATING ACTIVITIES
million Full Year
2009 2008
Net profit 3,659 5,285
Taxation 1,257 1,844
Share of net profit of joint ventures/associates and other income
from non-current investments (489) (219)
Net finance costs 593 257
Operating profit 5,020 7,167
Depreciation, amortisation and impairment 1,032 1,003
Changes in working capital 1,701 (161)
Pensions and similar provisions less payments (1,028) (502)
Restructuring and other provisions less payments (258) (62)
Elimination of (profits)/losses on disposals 13 (2,259)
Non-cash charge for share-based compensation 195 125
Other adjustments 58 15
Cash flow from operating activities 6,733 5,326
8 NET DEBT
As at 31 As at 31
December December
million 2009 2008
Total financial liabilities (9,971) (11,205)
Financial liabilities due within one year (2,279) (4,842)
Financial liabilities due after one year (7,692) (6,363)
Cash and cash equivalents as per balance sheet 2,642 2,561
Cash and cash equivalents as per cash flow statement 2,397 2,360
Add bank overdrafts deducted therein 245 201
Financial assets 972 632
Net debt (6,357) (8,012)
On 12 February 2009 we issued a bond comprising two senior notes: (a) US $750 million at 3.65% maturing in 5 years and
(b) US $750 million at 4.80% maturing in 10 years. On 19 March 2009 we issued senior notes of £350 million at 4.0% maturing
in December 2014. On 29 May 2009 we redeemed floating rate notes of 750 million. On 11 June 2009 we issued fixed rate
notes on the Eurodollar market for US $450 million at 3.125%, maturing in 2013. On 17 June 2009 we issued senior fixed rate
notes for £400 million at 4.75%, maturing in 2017.
14
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
9 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 year were calculated as follows:
2009 2008
Combined EPS Basic Millions of units
Average number of combined share units 2,796.3 2,809.6
million
Net profit attributable to shareholders' equity 3,370 5,027
Combined EPS (Euros) 1.21 1.79
Combined EPS Diluted Millions of units
Adjusted average number of combined share units 2,890.0 2,905.9
Combined EPS diluted (Euros) 1.17 1.73
Impact of RDIs on Earnings Per Share
million
Total impact of RDIs on reported net profit (see note 3) (355) 1,018
Impact of RDIs on basic earnings per share (Euros) (0.12) 0.36
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 2008 (net of treasury stock) 2,789.1
Net movements in shares under incentive schemes 15.1
Number of shares at 31 December 2009 2,804.2
10 DIVIDENDS
As agreed at the 2009 Annual General Meetings, Unilever has moved to the payment of quarterly dividends with effect from
1 January 2010. This means that, in 2010, four quarterly interim dividends will be paid in March, June, September and
December 2010.
The Boards have declared a quarterly interim dividend for Q4 2009 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:
Per Unilever N.V. ordinary share: 0.1950
Per Unilever PLC ordinary share: £ 0.1704
Per Unilever N.V. New York share: US$ 0.2718
Per Unilever PLC American Depositary Receipt: US$ 0.2718
The quarterly interim dividends have been determined in Euros and converted into equivalent Sterling and US Dollar amounts
using exchange rates issued by the European Central Bank on 2 February 2010.
15
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
The quarterly interim dividends will be payable as from 17 March 2010, to shareholders registered at close of business on
12 February 2010. The shares will go ex-dividend on 10 February 2010.
US dollar checks for the quarterly interim dividend will be mailed on 16 March 2010, to holders of record at the close of
business on 12 February 2010. In the case of the NV New York shares, Netherlands withholding tax will be deducted.
The quarterly dividend calendar for the remainder of 2010 will be as follows:
Announcement Date Ex-Dividend Date Record Date Payment Date
Calendar Year 2010
Quarterly dividend for Q1 2010 29 April 2010 * 12 May 2010 14 May 2010 16 June 2010
Quarterly dividend for Q2 2010 5 August 2010 11 August 2010 13 August 2010 15 September 2010
Quarterly dividend for Q3 2010 4 November 2010 10 November 2010 12 November 2010 15 December 2010
* brought forward from originally published date of 6 May 2010.
11 ACQUISITIONS AND DISPOSALS
On 2 April 2009 we announced the completion of our purchase of the global TIGI professional hair product business and
its supporting advanced education academies. TIGI's major brands include Bed Head, Catwalk and S-Factor. Turnover of the
business worldwide in 2008 was around US $250 million.
On 23 June 2009 we announced that we had increased our holding in our business in Vietnam to 100%, following an
agreement with Vinachem who previously owned 33.3% of the business.
On 3 July 2009 we completed the acquisition of Baltimor Holding ZAO's sauces business in Russia. The acquisition includes
ketchup, mayonnaise and tomato paste business under the Baltimor, Pomo d'Oro and Vostochniy Gourmand brands
accounting for turnover of around 70 million and a production facility at Kolpino, near St Petersburg.
On 3 September 2009 we announced the sale of our oil palm plantation business in the Democratic Republic of Congo to
Feronia Inc, for an undisclosed sum.
On 25 September 2009 we announced a binding offer to acquire the personal care business of the Sara Lee Corporation for
1.275 billion in cash. The Sara Lee brands involved include Sanex, Radox and Duschdas, and generated annual sales in excess
of 750 million in the year ending June 2009. The transaction is subject to regulatory approval and consultation with European
Works Councils, and is expected to be completed by Q3 2010.
On 24 November 2009 we completed the sale of our interest in JohnsonDiversey. The cash consideration received was US $390
million, which included both the originally announced cash consideration of US $158 million plus the proceeds of the sale of
the 10.5% senior notes in JohnsonDiversey Holdings, Inc. We retain a 4% interest in JohnsonDiversey in the form of warrants.
12 EVENTS AFTER THE BALANCE SHEET DATE
There were no material post balance sheet events other than those mentioned elsewhere in this report.
16
Unilever NV