TIDMULVR

RNS Number : 8421R

Unilever PLC

10 March 2021

Unilever PLC ("Unilever")

2020 Annual Financial Report Announcement

Unilever announces that the following documents are available on its website www.unilever.com/ara:

Unilever Annual Report and Accounts 2020

Unilever Annual Report on Form 20-F 2020

A copy of each of the documents listed has been submitted to the National Storage Mechanism and will shortly be available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism . A copy of the Unilever Annual Report on Form 20-F 2020 has also been filed with the U.S. Securities and Exchange Commission and is available at: www.sec.gov/edgar.shtml.

Attached to this announcement is the additional information for the purposes of compliance with the Disclosure and Transparency Rules including principal risk factors, details of related party issues and a responsibility statement.

The unaudited 2020 Full Year and Fourth Quarter Results for the year ended 31 December 2020, which were announced on 4 February 2021, were prepared in accordance with IAS 34.

ADDITIONAL INFORMATION

Principal Risk Factors

These are the risks that we see as most material to Unilever's business and performance at this time. There may be other risks that could emerge in the future.

We set out below certain mitigating actions that we believe help us to manage our principal risks. However, we may not be successful in deploying some or all of these mitigating actions. If the circumstances in these risks occur or are not successfully mitigated, our cash flow, operating results, financial position, business and reputation could be materially adversely affected. In addition, risks and uncertainties could cause actual results to vary from those described, which may include forward-looking statements, or could impact on our ability to meet our targets or be detrimental to our profitability or reputation.

 
 DESCRIPTION OF RISK                                 WHAT WE ARE DOING TO MANAGE THE 
                                                      RISK 
 
   BRAND PREFERENCE 
 
   Our success depends on the value                    We monitor external market trends 
   and relevance of our brands and                     and collate consumer, customer 
   products to consumers around the                    and shopper insights in order 
   world and on our ability to innovate                to develop category and brand 
   and remain                                          strategies. We invest in markets 
   competitive.                                        and segments where we have built, 
                                                       or are confident that we can build, 
   Consumer tastes, preferences and                    competitive advantage. 
   behaviours are changing more rapidly 
   than ever before. We see a growing                  Our brand communication strategies 
   trend for consumers preferring                      are designed to optimise digital 
   brands which both meet their functional             communication opportunities. We 
   needs and have an explicit social                   develop and customise brand messaging 
   purpose.                                            content specifically for each 
                                                       of our chosen communication channels 
   Technological change is disrupting                  (both traditional and digital) 
   our traditional brand communication                 to ensure that our brand messages 
   models. Our ability to develop                      reach our target consumers. Brand 
   and deploy the right communication,                 teams are driving social purpose 
   both in terms of messaging content                  into their brand's proposition 
   and medium is critical to the                       and communication. 
   continued strength of our brands. 
                                                       Our Research and Development function 
   We are dependent on creating innovative             actively searches for ways in 
   products that continue to meet                      which to translate the trends 
   the needs of our consumers and                      in consumer preference and taste 
   getting these new products to                       into new technologies for incorporation 
   market with speed.                                  into future products. 
 
   The Covid-19 pandemic has driven                    Our innovation management process 
   significant changes in consumer                     converts category strategies into 
   habits and demand which is requiring                projects which deliver new products 
   a continuing and rapid evolution                    to market. We develop product 
   of our brands.                                      ideas both in house and with selected 
                                                       partners to enable us to respond 
   Risk change since last year: Increase               to rapidly changing consumer trends 
                                                       with speed. 
                                                    --------------------------------------------- 
 
   PORTFOLIO MANAGEMENT 
 
   Unilever's strategic investment                     Our strategy and our business 
   choices will affect the long-term                   plans are designed to ensure that 
   growth and profits of our business.                 resources are prioritised towards 
                                                       those categories and markets having 
   Unilever's growth and profitability                 the greatest long-term potential 
   are determined by our portfolio                     for Unilever. Our acquisition 
   of divisions, geographies and                       and 
   channels and how these evolve                       disposal activity is driven by 
   over time. If Unilever does not                     our portfolio strategy with a 
   make optimal strategic investment                   clear, defined evaluation process. 
   decisions, then opportunities 
   for growth and improved margin 
   could be missed. 
 
   Risk change since last year: No 
   change 
                                                    --------------------------------------------- 
 
   CLIMATE CHANGE 
 
   Climate change and governmental                     As part of our sustainability 
   actions to reduce such changes                      targets we monitor climate change 
   may disrupt our operations and/or                   and are responding by ensuring 
   reduce consumer demand for our                      we reduce the carbon intensity 
   products.                                           of operations and by developing 
                                                       products with a lower carbon footprint 
   Climate change is occurring around                  or that require less water during 
   the world which may impact our                      consumer use. 
   business in various ways. It could 
   lead to water shortages which                       We aim to minimise our contribution 
   would reduce demand for those                       to climate change by committing 
   of our products that require a                      to emission reduction targets. 
   significant amount of water during                  We have developed roadmaps for 
   consumer use. It could also lead                    our two Science Based Target initiative 
   to an increase in raw material                      approved commitments: to achieve 
   and packaging prices or reduced                     zero emissions in our operations 
   availability. Governments may                       by 2030 and to halve the greenhouse 
   take action to reduce climate                       gas impact of our products across 
   change such as the introduction                     the lifecycle by 2030. In 2021, 
   of a carbon tax or zero net deforestation           we will publish our climate transition 
   requirements which could impact                     action plan which will provide 
   our business through higher costs                   further details on how we will 
   or reduced flexibility of operations.               achieve our net zero emissions 
                                                       by 2039 target. 
   Increased frequency of extreme 
   weather (storms and floods) could                   We monitor trends in raw material 
   cause increased incidence of disruption             availability and pricing due to 
   to our manufacturing and distribution               short-term weather impacts, and 
   network. Climate change could                       proactively reformulate our products 
   result therefore in making products                 where appropriate to ensure continued 
   less affordable or less available                   availability of input materials. 
   for our consumers resulting in 
   reduced growth and profitability.                   We monitor governmental developments 
                                                       around actions to combat climate 
   Risk change since last year: No                     change and take proactive action 
   change                                              to minimise the impact on our 
                                                       operations. We also advocate for 
                                                       changes to public policy frameworks 
                                                       that will enable accelerated 
                                                       decarbonisation, in line with 
                                                       the upper level of ambition of 
                                                       the Paris Agreement on Climate 
                                                       Change. 
                                                    --------------------------------------------- 
 
   PLASTIC PACKAGING 
 
   We use a significant amount of                      We are committed to reducing the 
   plastic to package our products.                    amount of postconsumer plastic 
   A reduction in the amount of virgin                 packaging waste going to landfill. 
   plastic we use, the use of recycled                 We have committed to ensuring 
   plastic and an increase in the                      100% of our plastic packaging 
   recyclability of our packaging                      is reusable, recyclable or compostable 
   are critical to our future success.                 by 2025. 
 
   Both consumer and customer responses                We aim to halve our use of virgin 
   to the environmental impact of                      plastic by both reducing usage 
   plastic waste and emerging regulation               and accelerating use of recycled 
   by governments to tax or ban the                    plastic. This requires us to redesign 
   use of certain plastics requires                    products by considering multiple-use 
   us to find solutions to reduce                      packs, wider use of refills, recycling 
   the amount of plastic we use;                       and using post-consumer recycled 
   increase recycling post-consumer                    materials in innovative ways. 
   use; and to source recycled plastic                 We are working on innovative solutions 
   for use in our packaging. We are                    through new business models. 
   also dependent on the work of 
   our industry partners to create                     We aim to collect and process 
   and improve recycling infrastructures               more plastic packaging than we 
   throughout the world.                               sell, enabled through driving 
                                                       systematic change in circular 
   Not only is there a risk around                     thinking at an industry level 
   finding appropriate replacement                     working with partners such as 
   materials, due to high demand                       the Ellen MacArthur Foundation. 
   the cost of recycled plastic or                     We are also working with governments, 
   other alternative packaging materials               industry partners, suppliers and 
   could significantly increase in                     consumers to raise awareness and 
   the foreseeable future and this                     find solutions to improve the 
   could impact our business performance.              recycling infrastructure for plastics. 
   We could also be exposed to higher                  We are helping consumers to understand 
   costs as a result of taxes or                       disposal methods and supporting 
   fines if we are unable to comply                    collection schemes and facilities. 
   with plastic regulations which 
   would again impact our profitability 
   and reputation. 
 
   Risk change since last year: No 
   change 
                                                    --------------------------------------------- 
 
   CUSTOMER 
 
   Successful customer relationships                   We build and maintain trading 
   are vital to our business and                       relationships across a broad spectrum 
   continued growth.                                   of channels ranging from centrally 
                                                       managed multinational customers 
   Maintaining strong relationships                    through to small traders accessed 
   with our existing customers and                     via distributors in many developing 
   building relationships with new                     countries. We identify changing 
   customers who have built new technology-enabled     shopper habits and build relationships 
   business models to serve changing                   with new customers, such as those 
   shopper habits are necessary to                     serving the eCommerce channel. 
   ensure our brands are well presented 
   to our consumers and available                      We develop joint business plans 
   for purchase at all times.                          with our key customers that include 
                                                       detailed investment plans and 
   The strength of our customer relationships          customer service objectives and 
   also affects our ability to obtain                  we regularly monitor progress. 
   pricing and competitive trade 
   terms. Failure to maintain strong                   We have developed capabilities 
   relationships with customers could                  for customer sales and outlet 
   negatively impact our terms of                      design which enable us to find 
   business with affected customers                    new ways to improve customer performance 
   and reduce the availability of                      and enhance our customer relationships. 
   our products to consumers.                          We invest in technology to optimise 
                                                       order and stock management processes 
   The Covid-19 pandemic has driven                    for our distributive trade customers. 
   a rapid increase in online shopping 
   which means we need to accelerate 
   development of eCommerce capabilities. 
 
   Risk change since last year: Increase 
                                                    --------------------------------------------- 
 
   TALENT 
 
   A skilled workforce and agile                       We have an integrated management 
   ways of working are essential                       development process which includes 
   for the continued success of our                    regular performance reviews underpinned 
   business.                                           by a common set of leadership 
                                                       behaviours, skills and competencies. 
   With the rapidly changing nature                    We have development plans to upskill 
   of work and skills, there is a                      and reskill employees for future 
   risk that our workforce is not                      roles and will bring in flexible 
   equipped with the skills required                   talent to access new skills. 
   for the new environment. 
                                                       We have targeted programmes to 
   Our ability to attract, develop                     attract and retain top talent 
   and retain a diverse range of                       and we actively monitor our performance 
   skilled people is critical if                       in retaining a diverse talent 
   we are to compete and grow effectively.             pool within Unilever. 
   This is especially true in our 
   key emerging markets where there                    We regularly review our ways of 
   can be a high level of competition                  working to drive speed and simplicity 
   for a limited talent pool.                          through our business in order 
                                                       to remain agile and responsive 
   The loss of management or other                     to marketplace trends. We are 
   key personnel or the inability                      moving to agile ways of working 
   to identify, attract and retain                     to unlock internal capacity and 
   qualified personnel could make                      prioritise work based on growth 
   it difficult to manage the business                 and impact. 
   and could adversely affect operations 
   and financial results. 
 
   The wellbeing of our employees 
   is vital to the success of our 
   business. Covid-19 has had a significant 
   impact on their wellbeing, therefore 
   helping our employees manage the 
   impact of Covid-19 on their lives 
   and their ability to work effectively 
   requires continued focus. 
 
   Risk change since last year: Increase 
                                                    --------------------------------------------- 
 
   SUPPLY CHAIN 
 
   Our business depends on purchasing                  We have contingency plans designed 
   materials, efficient manufacturing                  to enable us to secure alternative 
   and the timely distribution of                      key material supplies at short 
   products to our customers.                          notice, to transfer or share production 
                                                       between manufacturing sites and 
   Our supply chain network is exposed                 to use substitute materials in 
   to potentially adverse events                       our product formulations and recipes. 
   such as physical disruptions, 
   environmental and industrial accidents,             We have policies and procedures 
   trade restrictions or disruptions                   designed to ensure the health 
   at a key supplier, which could                      and safety of our employees and 
   impact our ability to deliver                       the products in our facilities, 
   orders to our customers.                            and to deal with major incidents 
                                                       including business continuity 
   Covid-19 is an adverse event that                   and disaster recovery. 
   has challenged and continues to 
   challenge the continuity of our                     Commodity price risk is actively 
   supply chain. Maintaining manufacturing             managed through forward buying 
   and logistics operations whilst                     of traded commodities and other 
   adhering to changing local regulations              hedging mechanisms. Trends are 
   and meeting enhanced health and                     monitored and modelled regularly 
   safety standards requires continued                 and integrated into our forecasting 
   focus and flexibility.                              process. 
 
   The cost of our products can be 
   significantly affected by the 
   cost of the underlying commodities 
   and materials from which they 
   are made. Fluctuations in these 
   costs cannot always be passed 
   on to the consumer through pricing. 
 
   Risk change since last year: Increase 
                                                    --------------------------------------------- 
 
   SAFE AND HIGH QUALITY PRODUCTS 
 
   The quality and safety of our                       Our product quality processes 
   products are of paramount importance                and controls are comprehensive, 
   for our brands and our reputation.                  from product design to customer 
                                                       shelf. They are verified annually 
   The risk that raw materials are                     and regularly monitored through 
   accidentally or maliciously contaminated            performance indicators that drive 
   throughout the supply chain or                      improvement activities. Our key 
   that other product defects occur                    suppliers are externally certified 
   due to human error, equipment                       and the quality of material received 
   failure or other factors cannot                     is regularly monitored to ensure 
   be excluded.                                        that it meets the rigorous quality 
                                                       standards that our products require. 
   Labelling errors can have potentially 
   serious consequences for both                       In the event of an incident relating 
   consumer safety and brand reputation.               to the safety of our consumers 
   Therefore on-pack labelling needs                   or the quality of our products, 
   to provide clear and accurate                       incident management teams are 
   ingredient information in order                     activated in the affected markets 
   that consumers can make informed                    under the direction of our product 
   decisions regarding the products                    quality, science and communications 
   they buy.                                           experts, to ensure timely and 
                                                       effective marketplace action. 
   Risk change since last year: No 
   change                                              We have processes in place to 
                                                       ensure that the data used to generate 
                                                       on-pack labelling is compliant 
                                                       with applicable regulations and 
                                                       with relevant Unilever labelling 
                                                       policies in order to provide the 
                                                       clarity and transparency needed 
                                                       for consumers. 
                                                    --------------------------------------------- 
 
   SYSTEMS AND INFORMATION 
 
   Unilever's operations are increasingly              To reduce the impact of external 
   dependent on IT systems and the                     cyber-attacks impacting our business 
   management of information.                          we have firewalls and threat monitoring 
                                                       systems in place, complete with 
   The cyber-attack threat of unauthorised             immediate response capabilities 
   access and misuse of sensitive                      to mitigate identified threats. 
   information or disruption to operations             We also maintain a global system 
   continues to increase. Such an                      for the control and reporting 
   attack could inhibit our business                   of access to our critical IT systems. 
   operations in a number of ways,                     This is supported by an annual 
   including disruption to sales,                      programme of testing of access 
   production and cash flows, ultimately               controls. 
   impacting our results. 
                                                       We have policies covering the 
   In addition, increasing digital                     protection of both business and 
   interactions with customers, suppliers              personal information, as well 
   and consumers place ever greater                    as the use of IT systems and applications 
   emphasis on the need for secure                     by our employees. Our employees 
   and reliable IT systems and infrastructure          are trained to understand these 
   and careful management of the                       requirements. 
   information that is in our possession 
   to ensure data privacy.                             We also have a set of IT security 
                                                       standards and closely monitor 
   Given the changes in ways of working                their operation to protect our 
   of all of our employees as well                     systems and information. Hardware 
   as our customers and suppliers                      that runs and manages core operating 
   as a result of Covid-19 there                       data is fully backed up with separate 
   has been an increased reliance                      contingency systems to provide 
   on certain elements of our IT                       real-time backup operations should 
   infrastructure. We are particularly                 they ever be required. 
   reliant on third party experts 
   in this space and thus the impact                   We have standardised ways of hosting 
   of Covid-19 on their operations                     information on our public websites 
   also poses a risk for us.                           and have systems in place to monitor 
                                                       compliance with appropriate privacy 
   Risk change since last year: Increase               laws and regulations, and with 
                                                       our own policies. 
                                                    --------------------------------------------- 
 
   BUSINESS TRANSFORMATION 
 
   Successful execution of business                    All acquisitions, disposals and 
   transformation projects is key                      global organisational transformation 
   to delivering their intended business               projects are sponsored by a member 
   benefits and avoiding disruption                    of the Unilever Leadership Executive. 
   to other business activities.                       All such projects have steering 
                                                       groups in place led by a senior 
   Unilever is continually engaged                     executive and regular progress 
   in major change projects, including                 updates are provided to the Unilever 
   acquisitions, disposals and organisational          Leadership Executive. Sound project 
   transformation, to drive continuous                 disciplines are used in all transformation 
   improvement in our business and                     projects and these projects are 
   to strengthen our portfolio and                     resourced by dedicated and appropriately 
   capabilities. Continued digitalisation              qualified personnel. 
   of our business models and processes 
   together with enhancing data management             The digitalisation of our business 
   capabilities is a critical part                     is led by a dedicated specialist 
   of our transformation.                              team together with representatives 
                                                       from all parts of the business 
   We have an extensive programme                      to ensure an integrated and holistic 
   of transformation projects. Failure                 approach. A significant part of 
   to execute such initiatives successfully            the organisational transformation 
   could result in under-delivery                      involves the transfer of activities 
   of the expected benefits and there                  to third parties on and offshore. 
   could be a significant impact                       New ways of working are being 
   on the value of the business.                       developed to manage this new business 
                                                       model. 
   Risk change since last year: No 
   change                                              Unilever also monitors the volume 
                                                       of change programmes under way 
                                                       in an effort to stagger the impact 
                                                       on current operations and to ensure 
                                                       minimal disruption. 
                                                    --------------------------------------------- 
 
   ECONOMIC AND POLITICAL INSTABILITY 
 
   Unilever operates around the globe                  The breadth of Unilever's portfolio 
   and is exposed to economic and                      and our geographic reach help 
   political instability that may                      to mitigate our exposure to any 
   reduce consumer demand for our                      particular localised risk. Our 
   products, disrupt sales operations                  flexible business model allows 
   and/or impact the profitability                     us to adapt our portfolio and 
   of our operations. Adverse economic                 respond quickly to develop new 
   conditions may affect one or more                   offerings that suit consumers' 
   countries within a region, or                       and customers' changing needs 
   may extend globally.                                during economic downturns. 
 
   Government actions such as foreign                  We regularly update our forecast 
   exchange or price controls can                      of business results and cash flows 
   impact on the growth and profitability              and, where necessary, rebalance 
   of our local operations.                            investment priorities. 
 
   Unilever has more than half its                     We believe that many years of 
   turnover in emerging markets which                  exposure to emerging markets have 
   can offer greater growth opportunities              given us experience of operating 
   but also expose Unilever to related                 and developing our business successfully 
   economic and political volatility.                  during periods of economic and 
                                                       political volatility. 
   Risk change since last year: No 
   change 
                                                    --------------------------------------------- 
 
   TREASURY AND TAX 
 
   Unilever is exposed to a variety                    Currency exposures are managed 
   of external financial risks in                      within prescribed limits and by 
   relation to Treasury and Tax.                       the use of financial hedging instruments. 
                                                       Further, operating companies borrow 
   The relative values of currencies                   in local currency except where 
   can fluctuate widely and could                      inhibited by local regulations, 
   have a significant impact on business               lack of local liquidity or local 
   results. Further, because Unilever                  market conditions. 
   consolidates its financial statements 
   in euros, it is subject to exchange                 We seek to maintain access to 
   risks associated with the translation               global debt markets through short-term 
   of the underlying net assets and                    and long-term debt programmes. 
   earnings of its foreign subsidiaries.               In addition, we maintain significant 
                                                       undrawn committed credit facilities 
   We are also subject to the imposition               for general corporate purposes 
   of exchange controls by individual                  as disclosed in note 16A. 
   countries which could limit our 
   ability to import materials paid                    Group treasury regularly monitors 
   in foreign currency or to remit                     exposure to our banks, tightening 
   dividends to the parent company.                    counter-party limits where appropriate. 
                                                       Unilever actively manages its 
   A material shortfall in our cash                    banking exposures on a daily basis. 
   flow could undermine Unilever's                     We regularly assess and monitor 
   credit rating, impair investor                      counter-party risk in our suppliers 
   confidence and restrict Unilever's                  and customers and take appropriate 
   ability to raise funds. In times                    action to manage our exposures. 
   of financial crisis, there is 
   a further risk that we may not                      Our Global Tax Principles provide 
   be able to raise funds due to                       overarching governance and we 
   market liquidity.                                   have a process in place to monitor 
                                                       compliance with the Tax Principles. 
   We are exposed to counter-party                     We have a Tax Risk Framework in 
   risks with banks, suppliers and                     place which sets out the controls 
   customers which could result in                     established to assess and monitor 
   financial losses.                                   tax risk for direct and indirect 
                                                       taxes. We monitor proposed changes 
   Tax is a complex and evolving                       in taxation legislation and ensure 
   area where laws and their interpretation            these are taken into account when 
   are changing regularly, leading                     we consider our future business 
   to the risk of unexpected tax                       plans. 
   exposures. International tax reform 
   remains a key focus of attention 
   with the OECD's Base Erosion and 
   Profit Shifting project, and the 
   Digitalising Economy Project, 
   and further potential tax reform 
   in the EU. 
 
   Risk change since last year: No 
   change 
                                                    --------------------------------------------- 
 
   ETHICAL 
 
   Unilever's brands and reputation                    Our Code of Business Principles 
   are valuable assets and the way                     and our Code Policies govern the 
   in which we operate, contribute                     behaviour of our employees, suppliers, 
   to society and engage with the                      distributors and other third parties 
   world around us is always under                     who work with us. Our processes 
   scrutiny both internally and externally.            for identifying and resolving 
                                                       breaches of our Code of Business 
   Acting in an ethical manner, consistent             Principles and our Code Policies 
   with the expectations of customers,                 are clearly defined and regularly 
   consumers and other stakeholders,                   communicated throughout Unilever. 
   is essential for the protection                     Data relating to such breaches 
   of the reputation of Unilever                       is reviewed by the Unilever Leadership 
   and its brands.                                     Executive and by relevant Board 
                                                       Committees and helps to determine 
   A key element of our ethical approach               the allocation of resources for 
   to business is to reduce inequality                 future policy development, process 
   and promote fairness. Our activities                improvement, training and awareness 
   touch the lives of millions of                      initiatives. 
   people and it is our responsibility 
   to protect their rights and help                    Our Responsible Sourcing Policy 
   them live well. The safety of                       and Responsible Business Partners 
   our employees and the people and                    Policy help us improve the lives 
   communities we work with is critical.               of the people in our supply chains 
   Failure to meet these high standards                by ensuring human rights are protected 
   could result in damage to Unilever's                and makes a healthy and safe workplace 
   corporate reputation and business                   a mandatory requirement for our 
   results.                                            suppliers. We have detailed safety 
                                                       standards and monitor safety incidents 
   Risk change since last year: No                     at the highest level. 
   change 
                                                       Through our Brands with Purpose 
                                                       agenda, a number of our brands 
                                                       are taking action on societal 
                                                       issues such as fairness and equality. 
                                                    --------------------------------------------- 
 
   LEGAL AND REGULATORY 
 
   Compliance with laws and regulations                Unilever is committed to complying 
   is an essential part of Unilever's                  with the laws and regulations 
   business operations.                                of the countries in which we operate. 
                                                       In specialist areas the relevant 
   Unilever is subject to national                     teams at global, regional or local 
   and regional laws and regulations                   levels are responsible for setting 
   in such diverse areas as product                    detailed standards and ensuring 
   safety, product claims, trademarks,                 that all employees are aware of 
   copyright, patents, competition,                    and comply with regulations and 
   employee health and safety, data                    laws specific and relevant to 
   privacy, the environment, corporate                 their roles. 
   governance, listing and disclosure, 
   employment and taxes.                               Our legal and regulatory specialists 
                                                       are heavily involved in monitoring 
   Failure to comply with laws and                     and reviewing our practices to 
   regulations could expose Unilever                   provide reasonable assurance that 
   to civil and/or criminal actions                    we remain aware of and in line 
   leading to damages, fines and                       with all relevant laws and legal 
   criminal sanctions against us                       obligations. 
   and/or our employees with possible 
   consequences for our corporate 
   reputation. Changes to laws and 
   regulations could have a material 
   impact on the cost of doing business. 
 
   Risk change since last year: No 
   change 
                                                    --------------------------------------------- 
 

RELATED PARTY TRANSACTIONS

The following related party balances existed with associate or joint venture businesses at 31 December:

 
 Related party balances             EUR million   EUR million 
                                           2020          2019 
 Sales to joint ventures                  1,004           839 
                                   ------------  ------------ 
 Purchases from joint ventures              118           113 
                                   ------------  ------------ 
 Receivables from joint ventures             80            92 
                                   ------------  ------------ 
 Payables to joint ventures                  43            38 
                                   ------------  ------------ 
 Loans to joint ventures                    255           289 
                                   ------------  ------------ 
 Royalties and service fees                  21            23 
                                   ------------  ------------ 
 

Significant joint ventures are Unilever FIMA Lda for Portugal, Binzagr Unilever Distribution and Al Gurg Unilever for Middle East, the Pepsi/Lipton Partnership for the US and Pepsi Lipton International Ltd for the rest of the world.

ASSOCIATES

There are no trading balances from/to associates.

Langholm Capital II was launched in 2009. Unilever has invested EUR64 million in Langholm II, with an outstanding commitment at the end of 2020 of EUR2 million (2019: EUR 11 million). During 2020, Unilever received EURnil (2019: EURnil) from its investment in Langholm Capital II.

DIRECTORS' RESPONSIBILITY STATEMENT

Each of the Directors confirms that, to the best of his or her knowledge:

-- The Unilever Annual Report and Accounts 2020, taken as a whole, is fair, balanced and understandable, and provides the information necessary for shareholders to assess the Group's position and performance, business model and strategy;

-- The financial statements which have been prepared in accordance with International Financial Reporting Standards as adopted by the EU and as issued by the International Accounting Standards Board give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group and the undertakings included in the consolidation taken as a whole; and

-- The Strategic Report includes a fair review of the development and performance of the business and the position of the Group and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

 
 Name                Function 
 Nils Andersen       Chairman 
  Youngme Moon        Vice-Chairman / Senior Independent 
  Alan Jope           Director 
  Graeme Pitkethly    Chief Executive Officer 
  Laura Cha           Chief Financial Officer 
  Judith Hartmann     Non-Executive Director 
  Andrea Jung         Non-Executive Director 
  Susan Kilsby        Non-Executive Director 
  Strive Masiyiwa     Non-Executive Director 
  John Rishton        Non-Executive Director 
  Feike Sijbesma      Non-Executive Director 
                      Non-Executive Director 
                    ------------------------------------ 
 

Safe Harbour

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 'will', 'aim', 'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision', 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 Unilever Group (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. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: Unilever's global brands not meeting consumer preferences; Unilever's ability to innovate and remain competitive; Unilever's investment choices in its portfolio management; the effect of climate change on Unilever's business; Unilever's ability to find sustainable solutions to its plastic packaging; significant changes or deterioration in customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain and distribution; increases or volatility in the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; execution of acquisitions, divestitures and business transformation projects; economic, social and political risks and natural disasters; financial risks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters. A number of these risks have increased as a result of the current Covid-19 pandemic.

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.

10 March 2021.

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END

ACSEBLFFFXLBBBL

(END) Dow Jones Newswires

March 10, 2021 10:12 ET (15:12 GMT)

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