Unilever N.V.

Rotterdam

Konzernabschluss zum Geschäftsjahr vom 01.01.2019 bis zum 31.12.2019

(Auszug aus "Unilever Annual Report and Accounts 2019" in englischer Sprache)

Purpose-led, future-fit

Unilever Annual Report and Accounts 2019

Purpose-driven performance

One in three people around the world use our brands every day. With this reach comes responsibility - and opportunity. That's why we've made it our purpose to make sustainable living commonplace. To help people live well within the limits of the planet. This isn't just something we say - it steers our decisions and shapes our actions, at every level of the business.

Our focus on purpose goes back to the days of one of our founders, William Lever, well over 100 years ago. It's part of Unilever history, and it's integral to our future. This is why we want all our brands to take a stand, and act, on the big social and environmental issues facing the world. We believe we'll be a better and more successful business by following this path.

To truly make sustainable living commonplace, we have to be fit for the future. This means anticipating the significant changes which are shaping our industry. Becoming fully digitised, lower cost, faster acting and more agile. Using our scale and influence to create positive change well beyond Unilever. Expanding into high-growth markets with superior products that are good for both people and the planet. And continuing to attract the very best people into a diverse, inclusive and flexible working culture.

Purpose-led, future-fit

At a glance

As one of the world's largest and oldest consumer goods businesses, we're on a mission to make sustainable living commonplace.

Strategic Report

Financial highlights

What we stand for:

Making sustainable living commonplace.

What we offer:

Beauty & Personal Care, Foods & Refreshment, Home Care

Read more about our brands and consumers on pages 14 to 15.

€52.0 billion

turnover

€6.1 billion

free cash flow ^*

€4.2 billion

dividends paid

19.1%

underlying operating margin ^*

16.8%

operating margin

Beauty & Personal Care

What we stand for:

Beauty that cares for people, society and our planet.

Our largest categories:

Deodorants, Haircare, Skin care. Skin cleansing

A selection of our brands:

Axe, Clear, Dove, Lifebuoy, Lux, Pond's, Rexona, Signal, Suave, Sunsilk, TRESemmé, Vaseline

€21.9 billion turnover

42% of total turnover

52% of total operating profit

Foods & Refreshment

What we stand for:

Taste good. Feel good. Force for good.

Our largest categories:

Ice cream, Savoury, Dressings, Tea

A selection of our brands:

Ben & Jerry's, Breyers, Brooke Bond, Heart (Wall's), Hellmann's, Knorr, Lipton, Magnum, Pukka, Sir Kensington's, Unilever Food Solutions

€ 19.3 billion turnover

37% of total turnover

32% of total operating profit

Home Care

What we stand for:

Making your home a better world.

Making our world a better home.

Our largest categories:

Fabric solutions, Home and hygiene

A selection of our brands:

Cif, Dirt is Good (Omo, Persil), Domestos, Seventh Generation, Sunlight

€ 10.8 billion turnover

21 % of total turnover

16% of total operating profit

Read more about our Divisions on pages 14 to 15.

^* Free cash flow and underlying operating margin are non-GAAP measures. For further information about these measures, and the reasons why we believe they are important for an understanding of the performance of the business, please refer to our commentary on non-GAAP measures on page 27.

Chairman's introduction

Our new Chairman reflects on a year of positive value creation, changes to the Board and the steps being taken to accelerate growth in 2020 and beyond.

Nils Andersen

Chairman

Having served on the Board for five years, I am already well aware of Unilever's reputation as a purpose-driven company, one founded on strong values, wonderful brands and a talented and committed workforce. It was an honour therefore to have been asked to become your Chairman in November 2019 and since then I have continued to work with the Board and the Unilever Leadership team to support the Group's ambitions. On behalf of the Board, I would like to thank my predecessor, Marijn Dekkers, for his strong leadership as Chairman and for his support in helping to ensure a seamless transition.

2019 Performance

Unilever delivered another year of positive value creation in 2019, driven by a continuing balance of underlying sales growth, improved profitability and strong cash generation.

Underlying sales growth fell slightly short of the company's targeted range of 3-5%, which while disappointing, could be explained in part by a significant slowdown in some of Unilever's high-growth markets. Some of these economic headwinds will continue throughout 2020, but clear plans are in place - which the Board has reviewed - to accelerate the rate of Unilever's growth in 2020 and beyond.

Board composition and succession

The Board appointed Alan Jope to the role of CEO on 1 January 2019 and Alan was duly elected as an Executive Director at the 2019 AGMs. The Board fully endorses the strategy Alan has set out to ensure that Unilever is purpose-led and future-fit, a strategy that at its heart believes sustainable business drives superior performance, creating long-term value for our stakeholders.

I was delighted that you also elected Susan Kilsby as a Non-Executive Director at the 2019 AGMs in May, with her appointment taking effect on 1 August 2019. Susan has extensive Board experience as a non-executive in global consumer goods, financial and pharmaceutical sectors, and possesses deep international banking, financial and M&A experience.

Sadly, on 31 August 2019, Mary Ma, one of our Non-Executive Directors, passed away after a short illness. Mary was a highly committed and capable Director who put her expertise and experience at the service of Unilever and is greatly missed.

Remuneration

During 2019 we continued to consult with shareholders on our Remuneration Policy, particularly for the Executive Directors, and set in motion the consultation process for implementing our Remuneration Policy in 2020.

With the aim of maintaining the high levels of support from shareholders at the 2019 AGMs for the implementation of our Remuneration Policy, we continued constructive engagement with both our investors and proxy voting agencies on how we intend to evolve the implementation of our Directors' Remuneration Policy.

Corporate Governance

Recent revisions of Corporate Governance Codes applicable to Unilever expanded on the longstanding requirements for directors to remain mindful of the duties they have to consider the many stakeholders who have an interest in our business.

A particular stakeholder focus for the Board during the year was our workforce. As a result, NEDs conducted a number of workforce engagement events to assess employee sentiment. Four face-to-face events were held in Brazil and the UK, allowing for open discussions on issues important to our people. The Board believes that an open, authentic and agile culture at all levels of Unilever fuels personal and business growth. The Board will therefore continuously monitor the culture within the organisation, whether during Board visits, through workforce engagements or by continuing to engage regularly with the Unilever Leadership Executive and other Unilever managers. Further information on our engagement with Unilever's employees can be found on page 48.

In 2019, we took further steps in our commitment to be at the forefront of good governance by cancelling the NV preference shares. We also initiated the termination of the depositary receipt structure for the NV ordinary shares which took effect on 28 June 2019.

Evaluation

Our Board evaluation in 2019 was externally facilitated and the results were discussed at the January 2020 Board meeting. The Board continues to operate in an effective manner overall, and reflecting on the lessons learnt by the Board in the previous year the Board agreed, in particular, in the evaluation discussions to maintain strong focus on organic growth, portfolio evolution, leadership talent, and organisation.

Each Board Committee also performed its own self-evaluation, agreeing areas where it could enhance its effectiveness further. These are described within each Committee Report.

Looking ahead

The Board fully supports the strategy Unilever is following, including the strategic review of the tea business, and is confident that everything possible is being done to help accelerate topline growth in 2020. The Board's confidence also derives from the high calibre of Unilever's management. We look forward to working with Alan Jope and his team in helping to ensure Unilever remains a long-term, sustainable growth company.

During its various visits last year to Unilever's operations, including in Brazil and the United States, the Board was able to witness first-hand the passion and commitment of Unilever's hard-working employees. On behalf of the Board, I want to thank all of the 150,000 employees of Unilever for their efforts in 2019, and also acknowledge our appreciation for the continuing support of the Group's shareholders.

Our Board of Directors

Our Non-Executive Directors bring diverse experience to the Board's strategic discussions and decision-making.

Youngme Moon

Vie-Chair and Senior Independent Director

Laura Cha

Non-Executive Director

Vittorio Colao

Non-Executive Director

Marijn Dekkers

Non-Executive Director

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

Mary Ma

1952 - 2019

Our fellow Board member Mary Ma passed away unexpectedly on 31 August 2019. Mary joined Unilever in 2013 and served as a Non-Executive Director. She contributed strongly to the Board, serving as a member of the Audit Committee and more recently, the Compensation Committee. We will remember Mary as a wonderful friend and will miss her warmth of character and kindness of spirit. She was a highly capable and committed Director who put her expertise and distinguished experience at the service of Unilever for many years.

Chief Executive Officer's Q&A

Alan Jope answers questions on our performance in 2019, our Compass strategy, and other highlights and challenges of the year.

Alan Jope

Chief Executive Officer

How do you see the current state of the world and the impact on Unilever's markets?

There's no doubt that conditions are challenging right now. Sluggish economies and a high degree of geopolitical uncertainty are inevitably impacting consumer confidence and spending, which in turn is intensifying competition in the retail sector. However, Unilever has now been around for 90 years and so we are very accustomed to operating through downturns and periods of uncertainty like this, and indeed emerging stronger. Moreover, all our competitors - big and small - face the same challenges.

The key in this environment is to remain relevant to the consumers you serve. For us, that comes down to two things. First, earning trust by operating a responsible, multi-stakeholder business model. And second, harnessing advances in science and technology - and especially digital - in ways that allow us to reach and delight consumers in new and ever more inventive ways. We are firmly focused on both.

The recent outbreak of Coronavirus (COVID-19) is clearly concerning and we are monitoring developments very closely. The safety and wellbeing of our people has been the overriding priority. We are also doing all we can to ensure business continuity and our teams are working tirelessly to help mitigate the risks. Inevitably, however, there will be an adverse impact on the business although the extent is not yet clear.

As you look back, how do you reflect on Unilever's business performance in 2019?

It was a mixed performance. Our profitability was good with a healthy improvement in underlying operating margin, strong free cash flow delivery of more than €6.1 billion and cash flow from operating activities of €10.6 billion. This is important because our model is predicated on being able to re-invest in the long-term health of the business, while also paying out a competitive annual dividend.

On the flip side, growth is also a key driver of value creation and our underlying sales growth performance fell slightly short of expectations, at 2.9%, which was naturally disappointing. Turnover increased 2.0% to €52.0 billion. While growth was hindered by a marked slowdown in some of Unilever's high growth markets like South Asia and West Africa, these markets all remain very attractive long-term prospects for us. We are confident therefore of restoring underlying sales growth to Unilever's 3-5% multi-year range.

What were the highlights for you of 2019?

A strong performance in the emerging markets - growing at over 5% - was an undoubted highlight. We also grew across each of our three global Divisions, which was encouraging and reflects the inherent strengths of our brands and our portfolio. Our Home Care Division had a particularly strong year, growing by more than 6%, driven by some great innovations and an intensifying focus around 'green cleaning'. The performance of our recently acquired prestige beauty brands - which grew double-digit - was also a highlight, further establishing Unilever as an important player in this highly attractive and fast-growing segment of the market.

We have set out some very ambitious goals for Unilever. We want, for example, to be a global leader in sustainability; to be the world's best marketing company; and to be an organisation that stands as a beacon for diversity and inclusion. Seeing Unilever recognised in 2019, therefore, as a leader in multiple external benchmarks, including the GlobeScan Sustainability Leaders Survey (for the ninth consecutive year); the World's Most Effective Marketing Company; and as recipient of the prestigious Catalyst Award (for the company which has done most to accelerate the progress of women through workplace inclusion), were all special moments - as well as a spur to increase our efforts still further in these important areas.

Where do you feel the company could have done better?

In markets as dynamic and fast-moving as ours, speed is essential, both in seizing opportunities to meet changing consumer preferences but also in responding when our business is under competitive challenge. While we do this well on many occasions and in many parts of the world, we haven't yet developed the consistency of response that I am looking for everywhere, and this was apparent in 2019. We made some important organisational changes during the year - including flattening our market structure under a newly created Chief Operating Officer position - which I am confident will help to make Unilever a faster and even more operationally effective business.

As far as our global Divisions are concerned, while it was an excellent year as mentioned for Home Care, our Beauty & Personal Care and Foods & Refreshment Divisions both fell short of expectation - with underlying sales growth at 2.6% and 1.5% respectively-and so this is where we will be looking to accelerate growth most specifically in 2020.

In the area of diversity, we reached an important milestone in 2019 on our journey to become a gender-balanced organisation. Our management population is now made up of just over 50% women. Pleasing as this is, the overall figure masks the fact we haven't yet made the progress we want at the most senior levels of the company, where women are still underrepresented. This is very much a job half-done therefore and something I intend to make a personal priority in 2020.

What steps are you taking to accelerate growth?

We're doing a lot. I've already mentioned speed. There are two other areas I would highlight. First, we are putting a heightened level of focus around some proven growth fundamentals, which we are confident will accelerate our top- line performance. These include making our innovations even more impactful; building our presence in faster-growing retail channels, like e-commerce; ensuring that more and more of our brands have a clearly articulated purpose that resonate with consumers; and driving our savings programmes further to help fuel the many growth opportunities we have.

The second relates to our portfolio. We have made significant changes over recent years, acquiring businesses in new parts of the market and disposing of businesses such as Spreads. The overall effect has been to improve Unilever's exposure to faster growing markets, those that offer better long-term prospects for value creation. We will continue that process, evaluating our portfolio rigorously against a range of exacting criteria. It is in that context that we have announced a strategic review of our global tea business, which has a large footprint in the slower growing black tea segment and a history of being dilutive to Unilever's overall growth and margin. We will explore all options, with an open mind and with the intention of sharing the conclusions of the review by the middle of 2020.

How are you planning to take forward Unilever's commitment to social and environmental sustainability?

Under the Unilever Sustainable Living Plan (USLP) we have developed an enviable reputation for leadership on these issues. We now mean to build on that, not least because many of the challenges the world faces - like the climate crisis or growing inequality - are becoming ever more pressing.

We will do this by embedding sustainability in a new purpose-led, future-fit Unilever Compass strategy, and in two principal ways. First, we will continue to use our size and scale to help drive change through our extended value chain. A great example last year was the ambitious commitment we made to address the issue of plastic packaging by halving our use of virgin plastic and by helping to collect and process more plastic packaging than we sell, both by 2025.

Second, we will make our product brands even more prominent vehicles for driving social and environmental change. Many of our brands already do this, to great effect, but we now intend to make it an integral feature of every brand. We know that it works and that it also helps to drive growth. Last year, our most purposeful brands grew faster than the rest of the portfolio. Unilever's brands touch the lives of two and a half billion people every day so the opportunity for us to influence behaviour and drive positive change is enormous.

I am very proud of all the women and men of Unilever- and the millions more we partner with throughout the value chain - who work so hard every day to bring these commitments to life and who are determined to show that Unilever can remain a force for good in the world.

Unilever Leadership Executive (ULE)

Our executive management team is responsible for the day-to-day running of the business and the execution of our strategy, making sure we're purpose-led and future-fit.

Graeme Pitkethly

Chief Financial Officer

Conny Braams

Chief Digital and Marketing Officer

Marc Engel

Chief Supply Chain Officer

Hanneke Faber

President, Foods & Refreshment

Fabian Garcia

President, North America

Sunny Jain

President, Beauty & Personal Care

Peter Ter Kulve

President, Home Care

Sanjiv Mehta

President, South Asia

Leena Nair

Chief HR Officer

Nitin Paranjpe

Chief Operating Officer

Richard Slater

Chief R&D Officer

Ritva Sotamaa

Chief Legal Officer & Group Secretary

Our performance

We measure our success by tracking both non-financial and financial key performance indicators that reflect our strategic priorities.

Non-financial performance

	Target	2019	2018	2017
Improving health & wellbeing
Big Goal: By 2020 we will help more than a billion people take action to improve their health and wellbeing. See page 18.
Health & hygiene Target: By 2020 we will help more than a billion people to improve their health and hygiene. This will help reduce the incidence of life-threatening diseases like diarrhoea.	1 billion	On ground reach: 615 million	On ground reach: 570 million	On ground reach: 523 million
		TV reach: 710 million ^*	TV reach: 670 million ^*	TV reach: 78 million ^*
Nutrition Target: By 2020 we will double (i.e. up to 60%) the proportion of our portfolio that meets the highest nutritional standards, based on globally recognised dietary guidelines. This will help hundreds of millions of people to achieve a healthier diet.	60%	56% ^†	48%	39% ^◊
Reducing environmental impact Big Goal:
Big Goal: By 2030 our goal is to halve the environmental footprint of the making and use of our products as we grow our business. See page 19.
Greenhouse gases Target: Halve the greenhouse gas impact of our products across the lifecycle (from the sourcing of the raw materials to the greenhouse gas emissions linked to people using our products) by 2030 (greenhouse gas impact per consumer use). ⁺	(50%)	2% ^†	6%	9% ^◊
Target: By 2020 CO ₂ emissions from energy from our factories will be at or below 2008 levels despite significantly higher volumes (reduction in CO ₂ from energy per tonne of production since 2008). ^**	≤145.92	50.76 ^†	70.46 ^Δ	76,77 ^◊
Water Target: Halve the water associated with the consumer use of our products by 2020 (water impact per consumer use).	(50%)	1% ^†	(2%)	(2%) ^◊
Target: By 2020 water abstraction by our global factory network will be at or below 2008 levels despite significantly higher volumes (reduction in water abstraction per tonne of production since 2008). ^**	≤2.97	1.58 ^†	1.67 ^Δ	1.80 ^°
Waste Target: Halve the waste associated with the disposal of our products by 2020 (waste impact per consumer use).	(50%)	(32%)	(31%) ^Δ	(29%)
Target: By 2020 total waste sent for disposal will be at or below 2008 levels despite significantly higher volumes (reduction in total waste per tonne of production since 2008). ^**	≤7.91	0.30 ^†	0.23 ^ΔΛ	0.18 ^°
Sustainable sourcing Target: By 2020 we will source 100% of our agricultural raw materials sustainably (% of tonnes purchased).	100%	62%	56%	56%
Enhancing livelihoods
Big Goal: By 2020 we will enhance the livelihoods of millions of people as we grow our business. See page 18.
Fairness in the workplace Target: By 2020 we will advance human rights across our operations and extended supply chain, by:
• Sourcing 100% of procurement spend from suppliers meeting the mandatory requirements of the Responsible Sourcing Policy (% of spend of suppliers meeting the Policy).	100%	70%	61% ^‡Δ	55% ^‡◊
• Reducing workplace injuries and accidents (Total Recordable Frequency Rate of workplace accidents per million hours worked) ^**.		0.76 ^†	0.69 ^Δ	0.89 ^◊
Opportunities for women Target: By 2020 we will empower 5 million women, by:
• Promoting safety for women in communities where we operate. • Enhancing access to training and skills (numberof women). • Expanding opportunities in our value chain (number of women).	5 million	2.34 million ^±	1.85 million ^Δ	1.26 million ^◊
• Building a gender-balanced organisation with a focus on management (% of managers that are women) ^**.	50%	51%	49% ^Δ	47% ^◊
Inclusive business Target By 2020 we will have a positive impact on the lives of 5.5 million people by:
• Enabling small-scale retailers to access initiatives aiming to improve their income (number of small-scale retailers).	5 million	1.81 million ^†±	1.73 million	1.60 million
• Enabling smallholder farmers to access initiatives aiming to improve their agricultural practices (number of smallholder farmers).	0.5 million	0.79 million ^†±	0.75 million	0.72 million ^◊

Baseline 2010 unless otherwise stated

^** Kev Non-Financial Indicators.
^† PricewaterhouseCoopers assured in 2019. For details and 2019 basis of preparation see www.unilever.com/investor-relations/annual-report-and-accounts/
^Δ PricewaterhouseCoopers assured in 2018. For details and 2018 basis of preparation see www.unilever.com/sustainable-living/our-approach-to-reporting/reports-and-publications-archive
^◊ PricewaterhouseCoopers assured in 2017. For details and 2017 basis of preparation see www.unilever.com/sustainable-living/our-approach-to-reporting/reports-and-publications-archive
^* The number of people reached through TV advertisements and programmes aimed at encouraging health and hygiene behaviour change ('TV reach') was only measured for our oral care brands in 2017, Lifebuoy and Dove started measuring TV reach in 2018 and 2019 respectively.
^‡ During 2017 and 2018 we amended how we assessed compliance with the Responsible Sourcing Policy, hence year-on-year data is not comparable.
^± Around 568.000 women have accessed initiatives under both the Inclusive Business and the Opportunities for Women pillars in 2019.
⁽⁾ Brackets around environmental targets indicate that our aim is to reduce our greenhouse gas, waste and water footprints. Brackets around the corresponding actuals indicate that we have reduced our footprints by the numbers quoted.
⁺ Target approved by the Science Based Targets Initiative.
^Λ Restated from 0.20 kg/tonne of production due to a classification error during the data reporting process.
2019 Total Recordable Frequency Rate (TRFR) includes for the first time all acquisitions which operate as decentralised business units, as we now have processes in place to collect the data. Had we included these acquisitions in 2017 and 2018, our reported TRFR would have been approximately 6% higher in each year.

Financial performance

	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Group
Turnover growth	2.0%	(5,1%)	1.9%
Turnover growth averaged 1.6% over five years
Underlying sales growth ^*	2.9%	3,2%	2,8%
Underlying sales growth averaged 3.3% over five years
Underlying volume growth ^*	1.2%	1.9%	0,8%
Underlying volume growth averaged 1.4% over five years
Operating margin	16.8%	24.8%	16.7%
Underlying operating margin ^*	19.1%	18.6%	17.7%
Free cash flow*	€6.1 billion	€5.4 billion	€5.8 billion
Cash flow from operating activities	€10.6 billion	€9.6 billion	€10.0 billion
Cash flow (used in)/from investing activities	(€2.2) billion	€4.6 billion	(€5.9) billion
Cash flow (used in)/from financing activities	(€4.7) billion	(€12.1) billion	(€2.0) billion
Divisions
Beauty & Personal Care	€21.9 billion	€20.6 billion	€ 20.7 billion
Turnover
Turnover growth	6.0%	(0.3%)	2.6%
Underlying sales growth	2.6%	3.4%	2.9%
Operating margin	20.7%	20.2%	20.0%
Underlying operating margin	22.7%	22.0%	21.3%
Foods & Refreshment	€19.3 billion	€ 20.2 billion	€22.4 billion
Turnover
Turnover growth	(4.6%)	(9.9%)	(0.4%)
Underlying sales growth	1.5%	2.2%	2.1%
Operating margin	14.6%	36.0%	16.3%
Underlying operating margin	17.5%	17.7%	16.8%
Home Care	€10.8 billion	€ 10,1 billion	€10.6 billion
Turnover
Turnover growth	6.9%	(4.2%)	5.6%
Underlying sales growth	6.1%	4.7%	4.4%
Operating margin	12.7%	11.7%	11.0%
Underlying operating margin	14.8%	13.3%	12.4%

^(a) Restated following adoption of IFRS 16, see note 1 and note 24 for further details, and the change in treatment of hyperinflationary economies in underlying sales growth, see page 29 for further details.
^* Key Financial Indicators.

Underlying sales growth, underlying volume growth, underlying operating margin and free cash flow are non-GAAP measures. For further information about these measures, and the reasons why we believe they are important for an understanding of the performance of the business, please refer to our commentary on non-GAAP measures on pages 27 to 32.

Financial review

2019 performance

The Group generated turnover of €52.0 billion, operating profit of €8.7 billion and net profit of €6.0 billion.

Turnover growth at 2.0% was lower than underlying sales growth of 2.9% reflecting a negative impact of the spreads disposal partially offset by a positive impact from currency.

Emerging markets performed well with underlying sales growth of 5.3% but developed markets declined by 0.5% mainly as a result of difficult and deflationary conditions in Europe. Overall underlying sales growth was slightly below expectation due to slow down experienced in the last quarter. Price growth decelerated in the fourth quarter as a result of pricing reductions in India and low inflation in Turkey. Africa declined due challenges in West Africa where there were distributor stock resets in Ghana and Nigeria.

Argentina's and Venezuela's hyperinflationary conditions persisted during 2019 and Zimbabwe also became hyperinflationary during the year. In our calculation of underlying sales growth we exclude price growth in excess of 26% in hyperinflationary economies. See pages 28 to 29 for more details.

Nine business acquisition deals were completed during the year spanning across all Divisions and the global Alsa baking and dessert business was sold in the first half of the year. More details on acquisitions and disposals are in note 21 on pages 134 to 136.

Within non-underlying costs, during the year the Group spent €1,159 million (2018: €914 million) on restructuring; both supply chain optimisation projects to improve gross margin and organisational change projects to reduce overheads. Supply chain activities were concentrated in the manufacturing and logistics networks, particularly in Europe and the Americas. Change projects in the markets were focused on transforming the organisation to make it future-fit and digitally enabled, as well as reducing the overhead base in businesses impacted by the spreads disposal.

Highlights for the year ended

	Beauty & Personal Care		Foods & Refreshment		Home Care		Group
	2019	2018 (Restated) ^(a)	2019	2018 (Restated) ^(a)	2019	2018 (Restated) ^(a)	2019	2018 (Restated) ^(a)
Turnover (€ million)	21,868	20,624	19,287	20,227	10,825	10,131	51,980	50,982
Underlying sales growth ^Λ (%)	2.6	3.4	1.5	2.2	6.1	4.7	2.9	3.2
Underlying volume growth (%)	1.7	2.5	(0.2)	1.3	2.9	2.3	1.2	1.9
Underlying price growth ^Λ (%)	0.9	0.9	1.7	0.9	3.1	2.4	1.6	1.2
Operating profit (€ million)	4,520	4,165	2,811	7,287	1,377	1,187	8,708	12,639
Underlying operating profit (€ million)	4,960	4,543	3,382	3,576	1,605	1,344	9,947	9,463
Operating margin (%)	20.7	20.2	14.6	36.0	12.7	11.7	16.8	24.8
Underlying operating margin (%)	22.7	22.0	17.5	17.7	14.8	13.3	19.1	18.6
Return on assets (%)	124	117	61	58	99	86	89	82

^(a) Restated following adoption of IFRS 16 and the change in treatment of hyperinflationary economies in underlying sales growth. See note 1, note 24 and pages 28 to 29 for further details.
^Λ Wherever referenced in this announcement, underlying sales growth and underlying price growth do not include price growth in excess of 26% per year in hyperinflationary economies. See pages 28 to 29 on non-GAAP measures for more details.

Divisional review

Beauty & Personal Care

TURNOVER grew by 6.0% coming from underlying sales growth of 2.6%, a favourable currency related impact of 2.4% and a positive contribution of 0.9% from acquisitions.

Deodorants delivered strong, broad-based growth, supported by double digit growth from Dove. The Rexona Clinical range, with patented antiperspirant technology to better serve consumer needs, and Dove's zero aluminium range performed well. Growth in skin cleansing was muted by price reductions as a result of lower commodity prices. Dove's growth in skin cleansing was supported by microbiome-friendly innovations. Growth was weak in hair care with high competitive intensity in the US and continued pressure from local players in China. Japan and Europe also underperformed. In skin care, Pond's and Vaseline continued to perform well, with on-trend innovations such as Pond's Glow Up cream. We expanded into white space markets with our Simple brand, which is now in 30 markets, including Turkey and the Gulf region. Oral care grew slightly and natural variants such as charcoal, aloe and clove drove growth in Smile.

Prestige brands continued to deliver double digit growth, with strong performances from brands such as Dermalogica, Hourglass and Living Proof. Carver Korea and Sundial had a more challenging year. We added to our prestige portfolio by acquiring Garancia, a French derma-cosmetic brand, and Tatcha, a modern skincare brand rooted in classical Kyoto rituals.

UNDERLYING OPERATING PROFIT increased by €417 million to €4,960 million. Turnover growth and underlying operating margin improvement added €274 million and €143 million respectively. Underlying operating margin improvement of 70bps was driven by efficiencies in brand and marketing investment and overheads from the zero-based budgeting programme. Non-underlying costs of €440 million were slightly higher than last year; most were related to the ongoing restructuring programme. Operating Profit increased by €355 million.

Foods & Refreshment

TURNOVER declined by 4.6% reflecting the disposal of the spreads business in the second half of 2018. The net impact of acquisitions and disposals on revenue was a reduction of 6.9% whilst underlying sales growth was 1.5% and currency movements had a favourable impact of 1.0%.

Ice cream grew, however volumes declined due to a strong comparator from a particularly good European summer in the prior year. Growth was supported by plant based and 'better for you' offerings, including Magnum vegan and Ben & Jerry's lighter Moophoria variants. Tea also had price-led growth with declining volume due to subdued consumer demand for black tea in developed markets. Premium black tea, black tea in emerging markets and fruit and herbal variants, including our premium herbal brand Pukka, performed well. In dressings, Hellmann's grew, with the US business returning to growth in the second half of the year. The Hellmann's vegan mayonnaise variant is now on shelves in over 20 countries while Sir Kensington's premium ranges of mayonnaise and salad dressings grew strongly in the US, with the brand now more than doubled in size since the acquisition. Price-led growth in savoury was supported by Knorr's portfolio in scratch cooking and the launch of snacking ranges which address the convenience trend. Savoury declined in Europe, most notably in Germany as a result of the loss of a key customer for a period of time, sales to this customer have now resumed The newly-acquired brand The Vegetarian Butcher entered a partnership with Burger King® to offer the Rebel Whopper® across 25 countries in Europe.

UNDERLYING OPERATING PROFIT decreased by €194 million to €3,382 million. Turnover and underlying operating margin decline contributed €166 million and €28 million respectively. Underlying operating margin decreased by 20bps as a result of a lower gross margin from weak pricing and higher supply chain costs. The non-underlying costs of €571 million in the year were related to additional restructuring within the business following the spreads disposal in 2018. Operating Profit decreased by €4,476 million which was primarily due to last year's operating profit including a €4,331 million profit arising from the sale of the spreads business.

Home Care

TURNOVER grew by 6.9% largely coming from underlying sales growth of 6.1 % and a favourable currency impact of 0.4%.

Home and hygiene performed well, benefitting from products such as Cif surface sprays with natural cleaning ingredients. Hand dish wash saw continued growth momentum, with good performance from Sunlight with recycled packaging, as well as white space launches in Brazil with Brilhante and in China with Omo. Format premiumisation continued to be a growth driver in fabric, with good growth in liquids and capsules. Laundry brand Seventh Generation, based on renewable plant-based ingredients, grew strongly. Fabric performance was supported by ongoing market development driven growth in India, where we also launched premium detergent brand Love & Care. In China we successfully launched Love Home & Planet. Home Care turnover in Africa was lower than expected and declined driven by a reduction in both volume and price.

UNDERLYING OPERATING PROFIT increased by €261 million to €1,605 million. Turnover growth and underlying operating margin improvement added €92 million and €169 million respectively. Underlying operating margin improvement of 150bps was driven by a strong gross margin improvement and lower overheads. Gross margin improved due to strong pricing and positive mix. Non-underlying costs of €228 million primarily related to restructuring programmes. Operating Profit increased by €190 million.

Cash flow

Cash flow from operating activities was up by €1.0 billion mainly driven by working capital improvement in 2019 compared to the prior year which was impacted by the disposal of spreads. Gross margin improvement had a favourable contribution a result of strong delivery from 5-S savings programmes. Overheads and brand and marketing efficiencies also had a favourable contribution as a result of our zero-based-budgeting programme.

	€ million	€ million
	2019	2018 (Restated) ^(a)
Operating profit	8,708	12,639
Depreciation, amortisation and impairment	1,982	2,216
Changes in working capital	(9)	(793)
Pensions and similar obligations less payments	(260)	(128)
Provisions less payments	7	55
Elimination of (profits)/losses on disposals	60	(4,313)
Non-cash charge for share-based compensation	151	196
Other adjustments	2	(260)
Cash flow from operating activities	10,641	9,612
Income tax paid	(2,532)	(2,294)
Net capital expenditure	(1,429)	(1,424)
Net interest and preference dividends paid	(548)	(461)
Free cash flow ^*	6,132	5,433
Net cash flow (used in)/from investing activities	(2,237)	4,644
Net cash flow (used in)/from financing activities	(4,667)	(12,113)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^* Certain measures used in our reporting are not defined under IFRS. For further information about these measures, please refer to the commentary on non-GAAP measures on pages 27 to 32.

Net cash outflow as a result of investing activities was € 2.2 billion compared to an inflow of € 4.6 billion in the prior year which included € 7.1 billion from the disposal of spreads business.

Net outflow from financing activities was € 4.7 billion compared to € 12.1 billion in the prioryear. 2018 included € 6.0 billion relating to repurchase of shares. In 2019 borrowings net of repayments was € 1.4 billion higher than the prior year.

Balance sheet

	€ million	€ million
	2019	2018 (Restated) ^(a)
Goodwill and intangible assets	31,029	29,493
Other non-current assets	17,347	16,140
Current assets	16,430	15,478
Total assets	64,806	61,111
Current liabilities	20,978	20,150
Non-current liabilities	29,942	28,844
Total liabilities	50,920	48,994
Shareholders' equity	13,192	11,397
Non-controlling interest	694	720
Total equity	13,886	12,117
Total liabilities and equity	64,806	61,111

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details

Goodwill and intangible assets increased to €31.0 billion (2018: €29.5 billion) mainly as a result of acquisitions which contributed €1.2 billion and favourable currency impact of €0.5 billion driven by strengthening of the US Dollar and Pound Sterling.

In current assets, cash and cash equivalents increased by €1.0 billion. The increase is primarily due to strong cash delivery in several countries which will be used to repay short term debt in due course.

Current and non-current financial liabilities increased by €1.5 billion as a result of commercial paper issue and bank borrowings.

The net pension plan deficit was lower than prior year by €0.7 billion as gains from investment performance exceeded the increase in liabilities.

Movement in net pension liability

The table below shows the movement in net pension liability during the year. The decrease from €0.9 billion at the beginning of the year to €0.2 billion at the end of 2019 was primarily due to good investment performance offsetting an increase in liabilities as interest rates fell.

	€ million
	2019
1 January	(874)
Current service cost	(216)
Employee contributions	17
Actual return on plan assets (excluding interest)	2,385
Net interest cost	(30)
Actuarial loss	(1,967)
Employer contributions	401
Currency retranslation	85
Other movements ^(a)	3
31 December	(196)

^(a) Other movements relate to special termination benefits, changes in asset ceiling, past service costs including losses/(gains) on curtailment, settlements and other immaterial movements. For more details see note 4B on pages 98 to 103.

Finance and liquidity

Approximately €1 billion (or 24%) of the Group's cash and cash equivalents are held in the parent and central finance companies, for maximum flexibility. These companies provide loans to our subsidiaries that are also funded through retained earnings and third party borrowings. We maintain access to global debt markets through an infrastructure of short and long-term debt programmes. We make use of plain vanilla derivatives, such as interest rate swaps and foreign exchange contracts, to help mitigate risks. More detail is provided in notes 16, 16A, 16B and 16C on pages 121 to 127.

The remaining €3.2 billion (76%) of the Group's cash and cash equivalents are held in foreign subsidiaries which repatriate distributable reserves on a regular basis. For most countries, this is done through dividends free of tax. This balance includes €146 million (2018: €154 million, 2017: €206 million) of cash that is held in a few countries where we face cross-border foreign exchange controls and/or other legal restrictions that inhibit our ability to make these balances available in any means for general use by the wider business. The cash will generally be invested or held in the relevant country and, given the other capital resources available to the Group, does not significantly affect the ability of the Group to meet its cash obligations.

We closely monitor all our exposures and counter-party limits. Unilever has committed credit facilities in place for general corporate purposes. The undrawn bilateral committed credit facilities in place on 31 December 2019 were $7,865 million.

Contractual obligations at 31 December 2019

	€ million	€ million	€ million	€ million	€ million
	Total	Due within 1 year	Due in 1-3 years	Due in 3-5 years	Due in over 5 years
Long-term debt	26,095	4,074	4,902	4,394	12,725
Interest on financial liabilities	3,677	494	802	673	1,708
Lease liabilities	2,279	432	694	433	720
Other lease commitments	223	69	74	37	43
Purchase obligations ^(a)	361	213	118	29	1
Other long-term commitments	1,137	578	453	84	22
Other financial liabilities	206	125	24	57	-
Total	33,978	5,985	7,067	5,707	15,219

^(a) For raw and packaging materials and finished goods.

Further details are set out in the following notes to the consolidated financial statements: note 10 on pages 111 and 112, note 15C on pages 119 and 120, note 16 on pages 121 to 123 and note 20 on page 133. Unilever is satisfied that its financing arrangements are adequate to meet its working capital needs for the foreseeable future. In relation to the facilities available to the Group, borrowing requirements do not fluctuate materially during the year and are not seasonal

Non-GAAP measures

Certain discussions and analyses set out in this Annual Report and Accounts (and the Additional Information for US Listing Purposes) include measures which are not defined by generally accepted accounting principles (GAAP) such as IFRS. We believe this information, along with comparable GAAP measurements, is useful to investors because it provides a basis for measuring our operating performance, and our ability to retire debt and invest in new business opportunities. Our management uses these financial measures, along with the most directly comparable GAAP financial measures, in evaluating our operating performance and value creation. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP. Wherever appropriate and practical, we provide reconciliations to relevant GAAP measures.

Explanation and reconciliation of non-GAAP measures

Unilever uses 'constant rate' and 'underlying' measures primarily for internal performance analysis and targeting purposes. We present certain items, percentages and movements, using constant exchange rates, which exclude the impact of fluctuations in foreign currency exchange rates. We calculate constant currency values by translating both the current and the prior period local currency amounts using the prior year average exchange rates into euro, except for the local currency of entities that operate in hyperinflationary economies. These currencies are translated into euros using the prior year closing exchange rate before the application of IAS 29.

The table below shows exchange rate movements in our key markets.

	Annual average rate in 2019	Annual average rate in 2018
Brazilian real (€1 = BRL)	4.367	4.282
Chinese yuan (€1 = CNY)	7.725	7.807
Indian rupee (€1 = INR)	78.812	80.730
Indonesia rupiah (€1 = IDR)	15863	16831
Philippine peso (€ 1 = PHP)	58.112	62.379
UK pound sterling (€1 = GBP)	0.880	0.884
US dollar (€1 = US$)	1.120	1.185

In the following sections we set out our definitions of the following non-GAAP measures and provide reconciliations to relevant GAAP measures:

• underlying sales growth;

• underlying volume growth;

• underlying price growth;

• non-underlying items;

• underlying earnings per share;

• underlying operating profit and underlying operating margin;

• underlying effective tax rate;

• constant underlying earnings per share;

• free cash flow;

• return on assets;

• net debt; and

• return on invested capital.

Underlying sales growth

Underlying Sales Growth (USG) refers to the increase in turnover for the period, excluding any change in turnover resulting from acquisitions, disposals, changes in currency and price growth in excess of 26% in hyperinflationary economies. Inflation of 26% per year compounded over three years is one of the key indicators within IAS 29 to assess whether an economy is deemed to be hyperinflationary. We believe this measure provides valuable additional information on the underlying sales performance of the business and is a key measure used internally. The impact of acquisitions and disposals is excluded from USG for a period of 12 calendar months from the applicable closing date. Turnover from acquired brands that are launched in countries where they were not previously sold is included in USG as such turnover is more attributable to our existing sales and distribution network than the acquisition itself.

Previously, USG was calculated on a different basis as explained on treatment of hyperinflationary economies in underlying sales growth section below. 2018 and 2017 comparative numbers have been restated for the new basis.

The reconciliation of USG to changes in the GAAP measure turnover is as follows:

2019 vs 2018 (%)	Beauty & Personal Care	Foods & Refreshment	Home Care	Total Group
Turnover growth ^(a)	6.0	(4.6)	6.9	2.0
Effect of acquisitions	0.9	0.6	0.3	0.7
Effect of disposals	-	(7.5)	-	(3.0)
Effect of currency-related items,	2.4	1.0	0.4	1.5
of which:
Exchange rate changes	1.7	(3.5)	(0.3)	(0.7)
Extreme price growth in hyperinflationary markets ^(b)	0.6	4.7	0.7	2.2
Underlying sales growth ^(b)	2.6	1.5	6.1	2.9
2018 vs 2017 (%)
Turnover growth ^(a)	(0.3)	(9.9)	(4.2)	(5.1)
Effect of acquisitions	3.9	0.8	0.5	2.0
Effect of disposals	-	(7.2)	(0.2)	(3.0)
Effect of currency-related items, of which:	(7.2)	(5.8)	(8.8)	(7.0)
Exchange rate changes	(8.1)	(47.7)	(9.1)	(29.4)
Extreme price growth in hyperinflationary markets ^(b)	1.0	79.1	0.4	31.7
Underlying sales growth ^(b)	3.4	2.2	4.7	3.2
2017 vs 2016 (%)
Turnover growth ^(a)	2.6	(0.4)	5.6	1.9
Effect of acquisitions	1.8	0.2	3.1	1.3
Effect of disposals	(0.1)	(0.8)	(0.2)	(0.4)
Effect of currency-related items, of which:	(1.9)	(1.8)	(1.7)	(1.8)
Exchange rate changes	(1.9)	(4.3)	(1.7)	(2.8)
Extreme price growth in hyperinflationary markets ^(b)	-	2.5	-	1.1
Underlying sales growth ^(b)	2.9	2.1	4.4	2.8

^(a) Turnover growth is made up of distinct individual growth components, namely underlying sales, currency impact, acquisitions and disposals. Turnover growth is arrived at by multiplying these individual components on a compounded basis as there is a currency impact on each of the other components. Accordingly, turnover growth is more than just the sum of the individual components.
^(b) Underlying price growth in excess of 26% per year in hyperinflationary economies has been excluded when calculating the underlying sales growth in the tables above, and an equal and opposite amount is shown as extreme price growth in hyperinflationary markets.

Treatment of hyperinflationary economies in underlying sales growth

Previously Underlying Sales Growth (USG) excluded all price growth from countries where the impact of consumer price inflation (CPI) rates had escalated to extreme levels. There were two countries where we had determined extreme levels of CPI existed. Price growth in Venezuela has been excluded from USG since Q4 2017 and price growth in Argentina has been excluded from USG since Q3 2018. This approach was adopted for Argentina in 2018 as it was considered that hyperinflationary conditions would only exist for a short while and thus all price movements would be related to hyperinflation.

Following a review during 2019, we now consider that hyperinflationary conditions are likely to persist for some time and thus price growth will represent both hyperinflationary price growth plus normal pricing actions. As a result, our definition of USG has been updated to include price growth in markets deemed to be hyperinflationary economies, up to a maximum of 26% per year (equivalent to approximately 2% per month compounded). Inflation of 26% per year compounded over three years is one of the key indicators within IAS 29 to assess whether an economy is deemed to be hyperinflationary.

The change is intended to ensure our reporting provides a more realistic representation of underlying performance. Price increases in hyperinflationary economies reflect normal pricing actions that relate to fluctuations in demand, changes in commodity and other operating costs and tactical steps to drive competitiveness, in addition to the exceptional pricing actions taken to respond to hyperinflationary conditions. The new USG definition aims to include these normal pricing actions but excludes the exceptional pricing actions that give rise to the extreme impact that results from hyperinflation.

Also, as a consequence of this change, we are providing a breakdown of the impact of currency-related items on turnover. Whilst previously the devaluation of the currency and all price growth in hyperinflationary economies were grouped under "exchange rate" (now called "currency-related items"), we are now breaking this down between:

• exchange rate changes (including the devaluation of hyperinflationary currencies); and

• extreme price growth in hyperinflationary economies (i.e. price growth that is not included in underlying price growth).

The table below show the impact of this change on USG, UPG and currency-related items on the previously reported numbers:

	2018				2017
Underlying sales growth and underlying price growth (%)	Beauty & Personal Care	Foods & Refreshment	Home Care	Total	Beauty & Personal Care	Foods & Refreshment	Home Care	Total
Previously reported
Underlying sales growth	3.1	2.0	4.2	2.9	2.9	2.7	4.4	3.1
Underlying price growth	0.6	0.7	1.9	0.9	1.5	3.0	2.3	2.3
Restated Underlying sales growth	3.4	2.2	4.7	3.2	2.9	2.1	4.4	2.8
Underlying price growth	0.9	0.9	2.4	1.2	1.5	2.3	2.3	2.0
Currency related changes (%)
Previously reported
Currency related items	(7.0)	(5.6)	(8.3)	(6.7)	(1.9)	(2.4)	(1.7)	(2.1)
Of which:
Exchange rate changes
Extreme price growth in hyperinflationary markets
Restated
Currency related items	(7.2)	(5.8)	(8.8)	(7.0)	(1.9)	(1.8)	(1.7)	(1.8)
Of which:
Exchange rate changes	(8.1)	(47.4)	(9.1)	(29.4)	(1.9)	(4.3)	(1.7)	(2.8)
Extreme price growth in hyperinflationary markets	1.0	79.1	0.4	31.7	-	2.5	-	1.1

Underlying price growth

Underlying price growth (UPG) is part of USG and means, for the applicable period, the increase in turnover attributable to changes in prices during the period. UPG therefore excludes the impact to USG due to (i) the volume of products sold; and (ii) the composition of products sold during the period. In determining changes in price we exclude the impact of price growth in excess of 26% per year in hyperinflationary economies as explained in USG above.

Underlying volume growth

Underlying volume growth (UVG) is part of USG and means, for the applicable period, the increase in turnover in such period calculated as the sum of (i) the increase in turnover attributable to the volume of products sold; and (ii) the increase in turnover attributable to the composition of products sold during such period. UVG therefore excludes any impact on USG due to changes in prices.

The relationship between USG, UVG and UPG is set out below:

	2019 vs 2018	2018 vs 2017	2017 vs 2016
Underlying volume growth (%)	1.2	1.9	0.8
Underlying price growth (%)	1.6	1.2	2.0
Underlying sales growth (%)	2.9	3.2	2.8

Refer to page 24 for the relationship between USG, UVG and UPG for each of the categories.

Non-underlying items

Several non-GAAP measures are adjusted to exclude items defined as non underlying due to their nature and/or frequency of occurrence.

• Non-underlying items within operating profit are: gains or losses on business disposals, acquisition and disposal related costs, restructuring costs, impairments and one-off items within operating profit.

• Non-underlying items not in operating profit but within net profit are: net monetary gain/(loss) arising from hyperinflationary economies and significant and unusual items in net finance cost, share of profit/(loss) of joint ventures and associates and taxation.

• Non-underlying items are both non-underlying items within operating profit and those non-underlying items not in operating profit but within net profit.

Refer to note 3 for details of non-underlying items.

Underlying operating profit and underlying operating margin

Underlying operating profit and underlying operating margin mean operating profit and operating margin before the impact of non-underlying items within operating profit. Underlying operating profit represents our measure of segment profit or loss as it is the primary measure used for making decisions about allocating resources and assessing performance of the segments.

The Group reconciliation of operating profit to underlying operating profit is as follows:

	€ million	€ million	€ million
	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Operating profit	8,708	12,639	8,957
Non-underlying items within operating profit (see note 3)	1,239	(3,176)	543
Underlying operating profit	9,947	9,463	9,500
Turnover	51,980	50,982	53,715
Operating margin	16.8%	24.8%	16.7%
Underlying operating margin	19.1%	18.6%	17.7%

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Further details of non-underlying items can be found in note 3 on page 96 of the consolidated financial statements.

Refer to Note 2 on page 94 for the reconciliation of operating profit to underlying operating profit by Division. For each Division operating margin is computed as operating profit divided by turnover and underlying operating margin is computed as underlying operating profit divided by turnover.

Underlying earnings per share

Underlying earnings per share (underlying EPS) is calculated as underlying profit attributable to shareholders' equity divided by the diluted combined average number of share units. In calculating underlying profit attributable to shareholders' equity, net profit attributable to shareholders' equity is adjusted to eliminate the post-tax impact of non-underlying items. This measure reflects the underlying earnings for each share unit of the Group.

Refer to note 7 on page 107 for reconciliation of net profit attributable to shareholders' equity to underlying profit attributable to shareholders' equity.

Underlying effective tax rate

The underlying effective tax rate is calculated by dividing taxation excluding the tax impact of non-underlying items by profit before tax excluding the impact of non-underlying items and share of net profit/(loss) of joint ventures and associates. This measure reflects the underlying tax rate in relation to profit before tax excluding non-underlying items before tax and share of net profit/(loss) of joint ventures and associates.

Tax impact on non-underlying items within operating profit is the sum of the tax on each non-underlying item, based on the applicable country tax rates and tax treatment. This is shown in the table:

	€ million	€ million
	2019	2018 (Restated) ^(a)
Taxation	2,263	2,572
Tax impact of:
Non-underlying items within operating profit®	309	(259)
Non-underlying items notin operating profit but within net profit ^(b)	(196)	(29)
Taxation before tax impact of non-underlying	2,376	2,284
Profit before taxation	8,289	12,360
Non-underlying items within operating profit before tax®	1,239	(3,176)
Non-underlying items not in operating profit but within net profit before tax ^(c)	(32)	(122)
Share of net (profit)/loss of joint ventures and associates	(176)	(185)
Profit before tax excluding non-underlying items before tax and share of net profit/ (loss) of joint ventures and associates	9,320	8,877
Underlying effective tax rate	25.5%	25.7%

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) Refer to note 3 for further details on these items.
^(c) Excludes €3 million (2018: €32 million) gain on disposal of spreads business by the joint venture in Portugal which is included in the share of net profit/(loss) of joint ventures and associates line. Including the gain, total non-underlying items not in operating profit but within net profit before tax is €35 million (2018: €154 million). See note 3.

Constant underlying earnings per share

Constant underlying earnings per share (constant underlying EPS) is calculated as underlying profit attributable to shareholders' equity at constant exchange rates and excluding the impact of both translational hedges and price growth in excess of 26% per year in hyperinflationary economies divided by the diluted average number of ordinary share units. This measure reflects the underlying earnings for each ordinary share unit of the Group in constant exchange rates.

The reconciliation of underlying profit attributable to shareholders' equity to constant underlying earnings attributable to shareholders' equity and the calculation of constant underlying EPS is as follows:

	€ million	€ million
	2019	2018 (Restated) ^(a)
Underlying profit attributable to shareholders' equity ^(b)	6,688	6,345
Impact of translation from current to constant exchange rates and translational hedges	13	46
Impact of price growth in excess of 26% per year in hyperinflationary economies ^(c)	(108)	(10)
Constant underlying earnings attributable to shareholders' equity	6,593	6,381
Diluted combined average number of share units (millions of units)	2,626.7	2,694.8
Constant underlying EPS (€)	2.51	2.37

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) See note 7.
^(c) See pages 28 and 29 for further details.

Free cash flow

Free cash flow (FCF) is defined as cash flow from operating activities, less income taxes paid, net capital expenditure and net interest payments. It does not represent residual cash flows entirely available for discretionary purposes; for example, the repayment of principal amounts borrowed is not deducted from FCF. FCF reflects an additional way of viewing our liquidity that we believe is useful to investors because it represents cash flows that could be used for distribution of dividends, repayment of debt or to fund our strategic initiatives, including acquisitions, if any.

The reconciliation of net profit to FCF is as follows:

	€ million	€ million	€ million
	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Net profit	6,026	9,788	6,456
Taxation	2,263	2,572	1,670
Share of net profit of joint ventures/ associates and other income from non-current investments	(176)	(207)	(173)
Net monetary gain arising from hyperinflationary economies	(32)	(122)	-
Net finance costs	627	608	1,004
Depreciation, amortisation and impairment	1,982	2,216	2,025
Changes in working capital	(9)	(793)	(68)
Pensions and similar obligations less payments	(260)	(128)	(904)
Provisions less payments	7	55	200
Elimination of (profits)/losses on disposals	60	(4,313)	(298)
Non-cash charge for share-based compensation	151	196	284
Other adjustments	2	(260)	(153)
Cash flow from operating activities	10,641	9,612	10,043
Income tax paid	(2,532)	(2,294)	(2,164)
Net capital expenditure	(1,429)	(1,424)	(1,621)
Net interest payments	(548)	(461)	(420)
Free cash flow	6,132	5,433	5,838
Net cash flow (used in)/from investing activities	(2,237)	4,644	(5,879)
Net cash flow (used in)/from financing activities	(4,667)	(12,113)	(2,020)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Net debt

Net debt is a measure that provides valuable additional information on the summary presentation of the Group's net financial liabilities and is a measure in common use elsewhere.

Prior to this quarter, all financial asset derivatives were current financial assets and so reduced net debt. Following a recent review we now also have financial asset derivatives that are non-current in nature. As all of these derivatives relate to financial liabilities, we continue to exclude them for the purposes of our net debt calculation and have expanded our definition to reflect this.

Net debt is now defined as the excess of total financial liabilities, excluding trade payables and other current liabilities, over cash, cash equivalents and other current financial assets, excluding trade and other current receivables, and non-current financial asset derivatives that relate to financial liabilities.

	€ million	€ million
	2019	2018 (Restated) ^(a)
Total financial liabilities	(28,257)	(26,738)
Current financial liabilities	(4,691)	(3,613)
Non-current financial liabilities	(23,566)	(23,125)
Cash and cash equivalents as per balance sheet	4,185	3,230
Cash and cash equivalents as per cash flow statement	4,116	3,090
Add bank overdrafts deducted therein	69	140
Other current financial assets	907	874
Non-current financial assets derivatives that relate to financial liabilities	114	-
Net debt	(23,051)	(22,634)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Return on invested capital

Return on invested capital (ROIC) is a measure of the return generated on capital invested by the Group. The measure provides a guide rail for longterm value creation and encourages compounding reinvestment within the business and discipline around acquisitions with low returns and long payback. ROIC is calculated as underlying operating profit after tax divided by the annual average of: goodwill, intangible assets, property, plant and equipment, net assets held for sale, inventories, trade and other current receivables, and trade payables and other current liabilities.

	€ million 2019	€ million 2018
		(Restated) ^(a)
Underlying operating profit before tax ^(b)	9,947	9,463
Tax on underlying operating profit ^(c)	(2,536)	(2,432)
Underlying operating profit after tax	7,411	7,031
Goodwill	18,067	17,341
Intangible assets	12,962	12,152
Property, plant and equipment	12,062	12,088
Net assets held for sale	81	108
Inventories	4,164	4,301
Trade and other current receivables	6,695	6,482
Trade payables and other current liabilities	(14,768)	(14,457)
Period-end invested capital	39,263	38,015
Average invested capital for the period	38,639	38,749
Return on average invested capital	19.2%	18.1%

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) See reconciliation of operating profit to underlying operating profit on page 30.
^(c) Tax on underlying operating profit is calculated as underlying operating profit before tax multiplied by underlying effective tax rate of 25.5% (2018: 25.7%) which is shown on page 30.

Return on assets

Return on assets is a measure of the return generated on assets for each division. This measure provides additional insight on the performance of the divisions and assists in formulating long-term strategies with respect to allocation of capital across divisions. Division return on assets is calculated as underlying operating profit after tax for he division divided by the annual average of: property, plant and equipment, net assets held for sale (excluding goodwill and intangibles), inventories, trade and other current receivables, and trade payables and other current liabilities for each division. The annual average is computed by adding the amounts at the beginning and the end of the calendar year and dividing by two.

	€ million	€ million	€ million	€ million
2019	Beauty & Personal Care	Foods & Refreshment	Home Care	Total
Underlying operating profit before tax	4,960	3,382	1,605	9,947
Tax on underlying operating profit	(1,265)	(862)	(409)	(2,536)
Underlying operating profit after tax	3,695	2,520	1,196	7,411
Property plant and equipment	4,382	5,336	2,344	12,062
Net assets held for sale	5	63	10	78
Inventories	1,793	1,698	673	4,164
Trade and other receivables	2,817	2,484	1,394	6,695
Trade payables and other current liabilities	(5,941)	(5,588)	(3,239)	(14,768)
Period end assets (net)	3,056	3,993	1,182	8,231
Average assets for the period (net)	2,985	4,146	1,204	8,335
Division return on assets	124%	61%	99%	89%
2018 (Restated) ^(a)
Underlying operating profit before tax	4,543	3,576	1,344	9,463
Tax on underlying operating profit	(1,168)	(919)	(345)	(2,432)
Underlying operating profit after tax	3,375	2,657	999	7,031
Property plant and equipment	4,336	5,473	2,279	12,088
Net assets held for sale	1	25	-	26
Inventories	1,736	1,762	803	4,301
Trade and other receivables	2,319	3,024	1,139	6,482
Trade payables and other current liabilities	(5,478)	(5,984)	(2,995)	(14,457)
Period end assets (net)	2,914	4,300	1,226	8,440
Average assets for the period (net)	2,887	4,564	1,155	8,606
Division return on assets	117%	58%	86%	82%

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Other information

2018 financial review

The financial review for the year ended 31 December 2018 can be found on pages 20 to 26 of our Annual Report and Accounts on Form 20-F filed with the United States Securities and Exchange Commission on 11 March 2019.

Accounting standards and critical accounting policies

The consolidated financial statements have been prepared in accordance with IFRS as adopted by the EU and IFRS as issued by the International Accounting Standards Board. The accounting policies are consistent with those applied in 2018 except for the recent accounting developments as set out in note 1 on pages 92 to 93. The critical accounting estimates and judgements and those that are most significant in connection with our financial reporting are set out in note 1 on pages 91 to 92.

Auditors report

The independent auditors' reports issued by KPMG Accountants N.V. and KPMG LLP on the consolidated results of the Group, as set out in the financial statements, were unqualified and contained no exceptions or emphasis of matter. For more details see pages 79 to 86.

Financial Statements

Statement of Directors' responsibilities

Annual accounts

The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulations. The Directors are also required by Part 9 of Book 2 of the Civil Code in the Netherlands and by the UK Companies Act 2006 to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Unilever Group, and the NV and PLC entities, as at the end of the financial year and of the profit or loss and cash flows for that year.

The Directors consider that, in preparing the accounts, the Group and the NV and PLC entities have used the most appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates, and that all International Financial Reporting Standards as adopted by the EU and as issued by the International Accounting Standards Board (in the case of the consolidated financial statements), Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS 101) and Dutch law (in the case of the NV parent company accounts) which they considerto be applicable have been followed.

The Directors have responsibility for ensuring that NV and PLC keep accounting records which disclose with reasonable accuracy their financial position and which enable the Directors to ensure that the accounts comply with the relevant legislation. They also have a general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group, and to prevent and detect fraud and other irregularities.

This statement, which should be read in conjunction with the Independent Auditors' reports, is made with a view to distinguishing for shareholders the respective responsibilities of the Directors and of the auditors in relation to the accounts.

A copy of the financial statements of the Unilever Group is placed on our website at www.unilever.com/investorrelations.The maintenance and integrity of the website are the responsibility of the Directors, and the work carried out by the auditors does not involve consideration of these matters. Accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially placed on the website. Legislation in the UK and the Netherlands governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Independent auditors and disclosure of information to auditors

UK law sets out additional responsibilities for the Directors of PLC regarding disclosure of information to auditors. To the best of each of the Directors' knowledge and belief, and having made appropriate enquiries, all information relevant to enabling the auditors to provide their opinions on PLC's consolidated and parent company accounts has been provided. Each of the Directors has taken all reasonable steps to ensure their awareness of any relevant audit information and to establish that Unilever PLC's auditors are aware of any such information.

Directors' responsibility statement

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

• The Unilever Annual Report and Accounts 2019, 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 (in the case of the consolidated financial statements) and Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS 101) and UK accounting standards and Part 9 of Book 2 of the Dutch Civil Code (in the case of the NV parent company accounts), 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.

The Directors and their roles are listed on pages 4 to 5 and 49.

Going concern

The activities of the Group, together with the factors likely to affect its future development, performance, the financial position of the Group, its cash flows, liquidity position and borrowing facilities are described on pages 1 to 32. In addition, we describe in notes 15 to 18 on pages 116 to 132 the Group's objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities and its exposures to credit and liquidity risk. Although not assessed over the same period as going concern, the viability of the Group has been assessed on page 34.

The Group has considerable financial resources together with established business relationships with many customers and suppliers in countries throughout the world. As a consequence, the Directors believe that the Group is well placed to manage its business risks successfully despite the current uncertain outlook.

After making enquiries, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing this Annual Report and Accounts.

Internal and disclosure controls and procedures

Please refer to pages 35 to 39 for a discussion of Unilever's principal risk factors and to pages 33 to 45 for commentary on the Group's approach to risk management and control.

Independent Auditors' Reports

Netherlands - KPMG Accountants N.V.	United Kingdom - KPMG LLP
To: the general meeting of Unilever N.V.	To: the members of Unilever PLC

For the purpose of these reports, the terms 'we' and 'our'denote KPMG Accountants N.V. in relation to the Netherlands responsibilities and reporting obligations to the General Meeting of Unilever N.V. and KPMG LLP in relation to UK responsibilities and reporting obligations to the members of Unilever PLC. The Unilever Group ('the Group') consists of Unilever PLC, Unilever N.V. and the entities they controlled during the financial year. The reports of KPMG Accountants N.V. and KPMG LLP are presented in the left and right hand columns of this report respectively. Key audit matters and materiality disclosures in relation to the parent company audits of Unilever N.V. and Unilever PLC are not in separate columns and form part of the reports of KPMG Accountants N.V. and KPMG LLP respectively.

The financial statements ('the Financial Statements') comprise:

•	the consolidated financial statements of the Group ('the Consolidated Financial Statements');
•	the parent company financial statements of Unilever N.V. ('the NV Company Accounts'); and
•	the parent company financial statements of Unilever PLC ('the PLC Company Accounts');

each of which are defined below.

Our opinions and conclusions arising from our audit

1. Our opinions are unmodified

What we have audited

We have audited the Consolidated Financial Statements for the year ended 31 December 2019 which comprise the consolidated balance sheet as at 31 December 2019, the consolidated income statement, the consolidated statements of comprehensive income, changes in equity and the consolidated cash flow statement for the year then ended and the notes to the Consolidated Financial Statements, including a summary of the accounting policies and other explanatory information. In addition, KPMG Accountants N.V. has audited the NV Company Accounts (which comprise the company balance sheet as at 31 December 2019, the company income statement, statement of comprehensive income and statement of changes in equity for 2019 and the notes comprising a summary of the accounting policies and other explanatory information) and KPMG LLP has audited the PLC Company Accounts (which comprise the company balance sheet as at 31 December 2019, the company statement of changes in equity and the notes to the PLC Company Accounts, including the summary of the accounting policies and other explanatory information).

Our opinions

In our opinion:

•	the accompanying Consolidated Financial Statements give a true and fair view of the financial position of the Group as at 31 December 2019 and of its result and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS as adopted by the EU) and with Part 9 of Book 2 of the Dutch Civil Code; and
•	the accompanying NV Company Accounts give a true and fair view of the financial position of Unilever N.V. as at 31 December 2019 and of its result for 2019 in accordance with United Kingdom accounting standards, including FRS 101 Reduced Disclosure Framework and Part 9 of Book 2 of the Dutch Civil Code.

Basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the 'Our responsibilities for the audit of financial statements' section of our report.

We are independent of the Unilever Group in accordance with the Regulation regarding the Independence of Auditors in the case of Assurance Engagements ("Verordening inzake e onafhankelijkheid van accountants bij assurance-opdrachten" (ViO)) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Regulation Code of Conduct and Professional Practice Auditors ("Verordening gedrags-en beroepsregels accountants" (VGBA)).

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

In our opinion:

•	the Consolidated Financial Statements and PLC Company Accounts give a true and fair view of the state of the Group's and of Unilever PLC's
•	affairs as at 31 December 2019 and of the Group's profit for the year then ended;
•	the Consolidated Financial Statements have been properly prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS as adopted by the EU);
•	the PLC Company Accounts have been properly prepared in accordance with United Kingdom accounting standards, including FRS 101 Reduced Disclosure Framework; and
•	both the Consolidated Financial Statements and the PLC Company Accounts have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the Consolidated Financial Statements, Article 4 of the IAS Regulation.

Additional opinion in relation to IFRS as issued by the IASB

As explained in the accounting policies set out in the Consolidated Financial Statements, in addition to complying with its legal obligation to apply IFRS as adopted by the EU, the Group has also applied IFRS as issued by the International Accounting Standards Board (IASB). In our opinion, the Consolidated Financial Statements have been properly prepared in accordance with IFRS as issued by the IASB.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities are described below. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. Our audit opinion is consistent with our report to the Audit Committee.

We were appointed as auditor by the shareholders on 14 May 2014. The period of total uninterrupted engagement is for the six financial years ended 31 December 2019. We have fulfilled our ethical responsibilities under, and we remain independent of the Group in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to listed public interest entities. No non-audit services prohibited by that standard were provided.

Overview

Materiality	€380 million (2018: €380 million)
Consolidated Financial Statements as a whole	4.6% (2018:5.0%) of Group profit before taxation
Coverage	79% (2018:78%) of revenue

Key Audit Matters - Consolidated Financial Statements

Recurring Key Audit	Revenue recognition - Discounts
Matters	Indirect tax contingent liabilities in Brazil
	Uncertain direct tax transfer pricing provisions

N 2. Key audit matters: Our assessment of risks of material misstatement

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the Financial Statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. We summarise below the key audit matters, in decreasing order of audit significance, in arriving at our audit opinions above, together with our key audit procedures to address those matters and, as required, where relevant, by law for public interest entities, our results from those procedures. These matters were addressed, and our results are based on procedures undertaken, in the context of, and solely for the purpose of, our audit of the Financial Statements as a whole, and in forming our opinion thereon, and consequently are incidental to that opinion, and we do not provide a separate opinion on these matters.

	The key audit matter	Our response and results
Revenue recognition - Discounts	Revenue is measured net of rebates, price reductions, incentives given to customers, promotional couponing and trade communication costs ("discounts"). Certain discounts for goods sold in the year are only finalised when the precise amounts are known and revenue therefore includes an estimate of variable consideration.	Procedures
As discussed in the report of the Audit Committee, note 2 (segment information), note 13 (trade and other current receivables) and note 14 (trade payable and other liabilities), the rebate accrual was €3,476 million as of 31 December 2019 and €3,576 million as of 31 December 2018.	The variable consideration represents the portion of discounts that are not directly deducted on the invoice and is complex as a result of diversity in the terms in contractual arrangements with customers. The unsettled portion of the variable consideration results in discounts due to customers per 31 December 2019 ("rebate accrual").	The primary procedures we performed to address this key audit matter included the following:
	Therefore, there is a risk of revenue being misstated as a result of incorrect calculations of the variable consideration.	• Tested certain internal controls within the revenue process including controls over the calculation of the rebate accrual and management review over the rebate accrual
	Within revenue recognition we identified the rebate accrual as a key audit matter, as in a number of markets the rebate accrual is significant and the terms in contractual arrangements with customers are not unirorm.	• Within the relevant Group's markets, used the prior year rebate accrual together with our understanding of current year developments to form an expectation of the rebate accrual at 31 December 2019. We compared this expectation against the actual rebate accrual, completing further corroborative inquiries and obtained underlying documentation as appropriate.
	Therefore this is considered to be an area which had a significant effect on our overall audit strategy and allocation of resources in planning and completing our audit as significant effort was required in evaluating the contractual arrangements and the related rebate accrual.	• Tested a sample of the rebate accrual and compared to underlying documentation, including the contracts.
	There is also a risk that revenue may be overstated due to fraud through manipulation of the rebate accrual recognised resulting from the pressure local management may feel to achieve performance targets.	• Critically assessed manual journals posted to revenue to identify unusual or irregular items and obtained underlying documentation.
		• Developed an expectation of the current year revenue based on trend analysis information, taking into account historical sales and returns information, and our understanding of each market and sector experience. We compared this expectation against actual revenue and, where relevant, completed further corroborative inquiries and obtained underlying documentation as appropriate.
		• Assessed the Group's disclosures in respect of the rebate accrual
		Our results
		The results of our testing were satisfactory (2018: satisfactory).
Indirect tax contingent liabilities in Brazil	In Brazil, there is a high degree of complexity involved in the local indirect tax regimes (both state and federal), largely related to corporate structure. Significant judgements are made by the Unilever Group in assessing the outcome of investi by the authorities if a liability exists, and in making an estimate of a possible range of any economic outflows.	Procedures
As discussed in the report of the Audit Committee and note 20 (commitments and contingent liabilities), the Brazil indirect tax contingent liability (disclosure) was €2,235 million as of 31 December 2019 and €2,032 million as of 31 December 2018.	We identified the assessment of indirect tax contingent liabilities in Brazil as a key audit matter. Due to the complex nature of the Brazilian local tax regimes and jurisprudence, there is a high degree of judgement applied by the Unilever Group with respect to this matter, given the high degree of estimation uncertainty has a particularly wide potential extent of possible outcomes. Complex auditor`s judgment was also required in assessing the outcome of investigations by the authorities.	The primary procedures we performed to address this key audit matter included the following:
		• Tested certain internal controls within the indirect tax process including controls around the assessment of the outcome of investigations and the quantification of the potential economic outflow.
		• We involved local indirect tax professionals with specialised skills and knowledge to assist in assessing the appropriateness of the contingent liabilities compared to the nature of the exposures, applicable regulations and related correspondence with the tax authorities.
		• Through inquiry with the Unilever Group's external lawyers and inspection of relevant information we assessed historical and recent judgements passed by the court authorities in considering
		any legal precedent or case law. We inspected legal opinions from third party lawyers and obtained formal confirmations from the Unilever Group's external lawyers.
		Our results
		The results of our testing were satisfactory (2018: satisfactory) and we considered the Brazilian indirect tax contingent liability disclosures to be acceptable (2018: acceptable).
Uncertain direct tax transfer pricing provisions	The Unilever Group has extensive international operations and is operating in a numberof tax jurisdictions, each with its own taxation regime. The laws and regulations for transfer pricing in each jurisdiction are open to different interpretations by taxpayers and tax authorities and require judgement in the interpretation thereof Judgments are made by the Unilever Group in assessing the potential outcome of investigations by aurhorities and if a liability exists.	Procedures
Refer to the report of the Audit Committee, note 6 (taxation) and note 20 (commitments and continaent liabilities).		The primary procedures performed to address this key audit matter included the following:
		• Tested certain controls within the income tax process including controls around the assessment of the potential outcome of investigations, the completeness of the exposures and the recording and re-assessments of transfer pricing provisions.
		• We involved tax professionals with specialized skills and knowledge to assist in:
		• assessing changes to the transfer pricing models for compliance with applicable laws and regulations; and
	We identified the assessment of uncertain direct tax transfer pricing provisions as a key audit matter. Due to the complex nature of transfer pricing across multiple jurisdictions, there is judgement applied by the Unilever Group with respect to interpretations of the tax legislation and to assess the potential outcome or investigations by the authorities. Complex auditor's iudaement was also required in assessing the potential outcome of investigations by the authorities.	• evaluating a sample of exposures using our own expectations based on our knowledge of the Unilever Group, considering relevant judgements passed and investigations by authorities, related correspondence with the tax authorities as well as inspecting relevant tax opinions from third parties.
		• Assessed the Group's disclosures in respect of direct tax provisions and uncertain tax positions.
		Our results
		The results of our testing were satisfactory (2018: satisfactory). and we found the level of direct tax provisions to be acceptable (2018: acceptable).
Investment in subsidiaries	The carrying amount of the investments in subsidiaries held at cost less impairment represent 57% and 59% of Unilever N.V. and Unilever N.V. an Unilever PLC total assets respectively.	Procedures
Unilever N.V.	We do not consider the carrying amounts of these investments to beat a high risk of significant misstatement, or to be subject to a sianificant level of iudaement. However. due to their materiality in the context of the NV Company Accounts and PLC Company Accounts, this is considered to be an area which had significant effect on our overall audit strategy and allocation of resources in planning and completing our audits of Unilever PLC and Unilever N.V.	The primary procedures performed to address this key audit matter included the following:
Refer to page 145 (accounting policy) and note 6 (investments in subsidiaries).		• Compared the carrying amount of investments with the relevant subsidiaries' draft balance sheet to identify whether their net assets, being an approximation of their minimum recoverable amount, were in excess of their carrying amount and assessing whether those subsidiaries have historically been profit-making.
Refer to page 150 (accounting policy) and note 2 (investments in subsidiaries).		• Compared the carrying amount of the investment with the expected value of the business based on a suitable multiple of the subsidiaries' earnings or discounted cash flow analysis for the investments where the carrying amount exceeded the net asset value.
		• Challenged the assumptions used in the multiple of the subsidiaries' earnings and discounted cash flow analysis based on our knowledge of the Group and the markets in which the subsidiaries operate.
		• Assessed the disclosures of Unilever PLC and Unilever N.V. disclosures in respect of the investment in subsidiaries.
		Our results
		The results of our testing were satisfactory (2018: satisfactory).
Indefinite intangible assets	The carrying amount of intangible assets represent 5.6% of Unilever N.V. total assets. The carrying amount of these intangibles are dependent on future cash flows and discount rates which can be volatile. Recently acquired brands are more prone to the estimation of future royalties.	Procedures
Unilever N.V.		The primary procedures performed to address this key audit matter included the following:
Refer to page 145 (accounting policy) and note 5 (intangible assets).		• We compared the carrying amount for the relevant intangible assets with its recoverable amount.
		• We involved valuation professionals with specialized skills and knowledge to assist in assessing the discount rates, to evaluate the recoverable amount.
	We do not consider the carrying amount of these intangible assets to be at a high risk of significant misstatement, or to be subject to a significant level of judgement. However, due to their materiality in the context of the NV Company Accounts this is considered to be an area which had significant effect on our overall audit strategy and allocation of resources in planning and completing our audit of Unilever N.V.	• Evaluated assumptions used, in particular those relating to forecasted revenue growth and royalty rates and performed a sensitivity analysis.
		• Assessed the disclosures: of Unilever N.V. disclosures in respect of the indefinite intangible assets.
		Our results
		The results of our testing were satisfactory (2018: satisfactory).

3. Our application of materiality and an overview of the scope of our audit

Materiality

Based on our professional judgement, the materiality for the Consolidated Financial Statements as a whole was set at €380 million (2018: €380 million), determined with reference to a benchmark of Group profit before taxation, of which it represents 4.6% (2018: 5.0%).

Materiality for KPMG Accountants N.V.'s audit of the NV Company Accounts as a whole was set at €209 million (2018: €275 million), determined with reference to a benchmark of Unilever N.V. Net Assets, of which it represents 0.9% (2018: 1.1%). Materiality for KPMG LLP's audit of the PLC Company Accounts as a whole was set at £61 million (2018: £100 million), determined with reference to a benchmark of Unilever PLC Net Assets, of which it represents 0.8% (2018: 2.9%).

We agreed to report to the Audit Committee that misstatements in excess of €20 million (2018: €20 million), €10 million (2018: €14 million) and £3 million (2018: £3 million) which are identified during the audit of the consolidated, NV Company Accounts and PLC Company Accounts respectively, would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds.

Overall scope of our audit

The Group operates through a significant number of legal entities and these form reporting components that are primarily country based. To provide sufficient coverage over the Group's key audit matters, we performed audits of 15 components (2018:15), which are included within 'Audit for group reporting purposes' below, as well as audits of account balances including revenue and the related accounts receivables balances at a further 23 (2018:23) components which are included within 'Audit of account balances' below. The latter were not individually financially significant enough to require an audit for group reporting purposes but were included in the scope of our group reporting work in order to provide additional coverage.

The Group operates centralised operating centres in China, India, Mexico, Philippines and Poland that perform accounting and reporting activities alongside related controls. Together, these operating centres process a substantial portion of the Group's transactions. The outputs from the centralised operating centres are included in the financial information of the reporting components they service and therefore they are not separate reporting components. Each of the operating centres is subject to specified audit procedures. Further audit procedures are performed at each reporting component to cover matters not covered at the centralised operating centres and together this results in audits for group reporting purposes on those reporting components.

The components within the scope of our work accounted for the following percentages of the Group's results:

	Number of components	Group revenue	Total profits and losses that made up Group profit before taxation	Group total assets
2019
Audits for group reporting purposes	15	53%	58%	69%
Audits of account balances	23	26%	20%	7%
Total	38	79%	78%	76%
2018
Audits for group reporting purposes	15	52%	69%	72%
Audits of account balances	23	26%	12%	6%
Total	38	78%	81%	78%

The remaining 21% (2018: 22%) of Group revenue, 22% (2018: 19%) of total profits and losses that made up Group profit before taxation and 24% (2018: 22%) of Group total assets is represented by a significant number of reporting components, none of which individually represented more than 3% (2018: 3%) of any of Group revenue, total profits and losses that made up Group profit before taxation or Group assets. A substantial portion of these components utilise the operating centres and are therefore subject to audit procedures performed at these operating centres. For these components, we performed analysis at an aggregated Group level to re-examine our assessment that there were no significant risks of material misstatement within these.

The Group audit team instructed component auditors as to the significant areas to be covered, including the key audit matters detailed above and the information to be reported back. The Group audit team approved the component materialities, which ranged from €1 million to €209 million (2018: €1 million to €275 million), having regard to the mix of size and risk profile of the Group across the components. The work on components was performed by component auditors.

The Group audit team visited locations in Brazil, China, France, Germany, India, Indonesia, Netherlands, South Africa, Switzerland, UK, and USA (2018: Brazil, China, France, Germany, India, Indonesia, Malaysia, Netherlands, Philippines, Singapore, South Africa, South Korea, UK, USA and Vietnam), Telephone and/or online meetings were also held with these component auditors and the majority of the others that were not physically visited. The findings reported to the Group audit team were discussed in more detail with component auditors and any further work required by the Group audit team was then performed by the component auditors.

The work on 36 of the 38 components (2018: 36 of the 38 components) was performed by component auditors (KPMG member firms) and the audit of the parent companies, were performed by the Group audit team.

Scope in relation to irregularities

Fraud

In accordance with the Dutch and UK standards on auditing we are responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error.

In our process of identifying fraud risks we assessed events or conditions that indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud ('fraud risk factors') to determine how fraud risks are relevant to our audit. In this risk assessment we made use of our own forensic professionals with specialised skills and knowledge to assist us in identifying the fraud risks. We communicated identified fraud risks throughout our team and remained alert to any indications of fraud throughout the audit. This included communication from the group to component audit teams of relevant fraud risks identified at group level.

Based on the auditing standards we addressed two fraud risks that were relevant to our audit, in relation to revenue recognition and management override of controls. Based upon our analysis of fraud risk factors, we have not identified any additional fraud risks.

Our audit procedures included an evaluation of the design, implementation as well as the operating effectiveness of internal controls relevant to mitigate these risks. We also performed substantive audit procedures, including detailed testing of high risk journal entries and the procedures included within our response to the revenue recognition - discounts key audit matter described in section 2 of this report. Through these procedures, we did not identify any material actual or suspected incidences of fraud.

In determining the audit procedures we made use of the Group's evaluation in relation to fraud risk management (prevention, detections and response), including the set-up of ethical standards to create a culture of honesty.

We communicated our risk assessment and audit response to the Directors and other management and the Audit Committee of the Supervisory Board. Our audit procedures differ from a specific forensic fraud investigation, which investigation often has a more in-depth character. We do note that our audit is based on the procedures described in line with applicable auditing standards and are not primarily designed to detect fraud.

Laws and regulations

We have evaluated facts and circumstances in order to assess laws and regulations relevant to the Group. In this evaluation we made use of our own forensic professionals with specialised skills and knowledge to assist us in evaluating the facts and circumstances.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience, through discussion with the Directors and other management (as required by auditing standards) and discussed with the Directors and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. This included communication from the Group to component audit teams of relevant laws and regulations identified at Group level.

The potential effect of these laws and regulations on the financial statements varies considerably.

• Firstly, the Group is subject to laws and regulations that directly affect the financial statements including taxation and financial reporting (including related company legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

• Secondly, the Group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect:

•	Competition legislation (reflecting the Group's involvement in a number of ongoing investigations by national competition authorities).
•	Employment legislation (reflecting the Group's significant and geographically diverse work force).
•	Health and safety regulation (reflecting the nature of the Group's production and distribution processes).
•	Consumer product law such as product safety and product claims (reflecting the nature of the Group's diverse product base).
•	Contract legislation (reflecting the potential for the Group to infringe trademarks, copyright and patents).
•	Data privacy (requirements from existing data privacy laws).
•	Environmental regulation (reflecting environmental impact restrictions, waste and contamination related to the Group's production and distribution processes).

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures, we did not identify any additional actual or suspected non-compliance outside of those previously identified by the Group in each of the above areas. We considered the effect of this as part of our procedures on the related financial statement items. The identified actual or suspected non-compliance was not sufficiently significant to our audit to result in our response being identified as a key audit matter.

We note that our audit is not primarily designed to detect non-compliance with laws and regulations and the Directors and other management are responsible for such internal control as the Directors and other management of the Company determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to errors or fraud, including compliance with laws and regulations. Additionally, owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.

The more distant non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Scope in relation to going concern

The Directors have prepared the financial statements on the going concern basis as they do not intend to liquidate the Companies or the Group or to cease their operations, and as they have concluded that the Companies' and the Group's financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements ("the going concern period").

Our responsibility is to conclude on the appropriateness of the Directors' conclusions and, had there been a material uncertainty related to going concern, to make reference to that in this audit report. However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of reference to a material uncertainty in this auditor's report is not a guarantee that the Group and the Companies will continue in operation.

In our evaluation of the Directors' going concern assessment and conclusions, we considered the inherent risks to the Group's and Companies' business model and analysed how those risks might affect the Group's and Companies' financial resources or ability to continue operations over the going concern period. The risks that we considered most likely to adversely affect the Group's and Companies' available financial resources over this period were:

•	continued slowdown in the broader macro-economic environment and therefore market growth;
•	increased global and local competition; and
•	external pressures on gross margin through cost price inflation.

As these were risks that could potentially cast significant doubt on the Group's and the Companies‛ ability to continue as a going concern, we considered sensitivities over the level of available financial resources indicated by the Group's financial forecasts taking account of reasonably possible (but not unrealistic) adverse effects that could arise from these risks individually and collectively and evaluated the achievability of the actions the Directors consider they would take to improve the position should the risks materialise. We also considered realistic second order impacts, such as a major IT data breach, the loss of all material litigation cases and Brexit which could result in a rapid reduction of available financial resources.

We report on going concern as part of the section 'Report on the other	We have nothing to report on going concern
information included in the Unilever Annual Report and Accounts 2019'in this report.	Based on this work, we are required to report to you if:
	• we nave anyting material to add or draw attention to in relation to the Directors' statement in note 1 to the financial statements on the use of the going concern basis of accounting with no material uncertainties that may cast significant doubt over the Group and PLC Company's use of that basis for a period of at least a year from the date of approval of the financial statements; or the related statement under the UK Listing Rules set out on page 78 is materially inconsistent with our audit knowledge.
	We have nothing to report in these respects, and we did not identify going concern as a key audit matter.

4. Other reporting

Report on the other information included in the Unilever Annual Report and Accounts 2019

In addition to the Consolidated Financial Statements, the NV Company Accounts and our auditor's report thereon, the Unilever Annual Report and Accounts 2019 contains other information.

Based on the below procedures performed, we conclude that the other information, including the Directors' going concern statement as included on page 78:

•	is consistent with the Financial Statements and does not contain material misstatements; and
•	contains the information as required by Part 9 of Book 2 of the Dutch Civil Code.

We have read the other information. Based on our understanding obtained through our audit of the Consolidated Financial Statements and the NV Company Accounts or otherwise, we have considered whether the other information contains material misstatements.

By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Auditing Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the Consolidated Financial Statements and the NV Company Accounts.

We have nothing to report on the other information in the Annual Report

The Directors are responsible for the other information presented in the Unilever Annual Report and Accounts 2019 together with the Financial Statements. Our opinion on the Financial Statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the Financial Statements or our audit knowledge. Based solely on that work we have not identified material misstatements in the other information.

Strategic report and Directors' report

Based solely on our work on the other information:

•	we have not identified material misstatements in the strategic report and the Directors' report;
•	in our opinion the information given in those reports for the financial year is consistent with the Consolidated Financial Statements and the PLC Company Accounts; and
•	in our opinion those reports have been prepared in accordance with the Companies Act 2006.

The Directors are responsible for the preparation of other information, including the information as required by Part 9 of Book 2 of the Dutch Civil Code.

Report on other legal and regulatory requirements Engagement

We were engaged as auditor of Unilever N.V. for the 2019 year by the General Meeting on 1 May 2019 and have operated as statutory auditor since the financial year 2014.

No prohibited non-audit services

We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements regarding statutory audit of public-interest entities.

Directors' remuneration report

In our opinion the part of the Directors' Remuneration Report to be audited has been properly prepared in accordance with the Companies Act 2006.

Disclosures of emerging and principal risks and longer-term viability

Based on the knowledge we acquired during our audit, we have nothing material to add or draw attention to in relation to:

•	the Directors' confirmation within the Viability Statement on page 34 that they have carried out a robust assessment of the emerging and principal risks facing the Group, including those that would threaten its business model, future performance, solvency and liquidity;
•	the Principal Risk Factors disclosures describing these risks and explaining how they are being managed and mitigated; and
•	the Directors' explanation in the Viability Statement of how they have assessed the prospects of the Group, over what period they have done so and why they considered that period to be appropriate, and their statement as to whether they have a reasonable expectation that the Group will be able to continue in operation and meet its liabilities as they fall due over the period of their assessment, including any related disclosures drawing attention to any necessary qualifications or assumptions.

Under the UK Listing Rules we are required to review the Viability Statement. We have nothing to report in this respect.

Our work is limited to assessing these matters in the context of only the knowledge acquired during our financial statements audit. As we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the absence of anything to report on these statements is not a guarantee as to the Group's and Unilever PLC's longer-term viability.

Corporate governance disclosures

We are required to report to you if:

•	we have identified material inconsistencies between the knowledge we acquired during our audit and the Directors' statement that they consider that the Unilever Annual Report and Accounts 2019 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 section of the Unilever Annual Report and Accounts 2019 describing the work of the Audit Committee does not appropriately address matters communicated by us to the Audit Committee.

We are required to report to you if the Corporate Governance Statement does not properly disclose a departure from the provisions of the UK Corporate Governance Code specified by the UK Listing Rules for our review.

We have nothing to report in these respects.

We have nothing to report on the other matters on which we are required to report by exception

Under the Companies Act 2006, we are required to report to you if, in our opinion:

•	adequate accounting records have not been kept by the PLC Company, or returns adequate for our audit have not been received from branches not visited by us; or
•	the PLC Company Accounts and the part of the Directors' Remuneration Report to be audited are not in agreement with the accounting records and returns; or
•	certain disclosures of Directors' remuneration specified by law are not made; or
•	we have not received all the information and explanations we require for our audit.

We have nothing to report in these respects.

Consolidated Financial Statements

Unilever Group

Responsibilities

Directors' and Audit Committee's responsibilities

The Directors are responsible for:

• the preparation and fair presentation of the Consolidated Financial Statements in accordance with IFRSs as adopted by the EU and Part 9 of Book 2 of the Dutch Civil Code, and for the preparation of the Report of the Directors in accordance with Part 9 of Book 2 of the Dutch Civil Code;

• the preparation and fair presentation of the NV Company Accounts in accordance with United Kingdom accounting standards, including FRS 101 Reduced Disclosure Framework and Part 9 of Book 2 of the Dutch Civil Code; and

• such internal control as management determines is necessary to enable the preparation of the Consolidated Financial Statements and NV Company Accounts that are free from material misstatement, whether due to fraud or error.

In preparing the Financial Statements, the Directors are responsible for assessing the Group's and Unilever N.V.'s ability to continue as a going concern. Based on the financial reporting frameworks mentioned, the Directors should prepare the Consolidated Financial Statements and NV Company Accounts using the going concern basis of accounting unless the Directors either intend to liquidate the Group and/or Unilever N.V. or to cease operations, or have no realistic alternative but to do so. The Directors should disclose in the Consolidated Financial Statements and NV Company Accounts events and circumstances that may cast significant doubt on the Group's and/or Unilever N.V.'s ability to continue as a going concern.

The Audit Committee is responsible for overseeing the Group's financial reporting process.

Our responsibilities for the audit of financial statements

Our objective is to plan and perform the audit to obtain sufficient and appropriate audit evidence for our opinion.

Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material errors and fraud during our audit.

Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.

A further description of our responsibilities for the audit of the financial statements is located at the website of de 'Koninklijke Nederlandse Beroepsorganisatie van Accountants' (NBA, Royal Netherlands Institute of Chartered Accountants) at: http://www.nba.nl/ENG_oob_01. This description forms part of our independent auditor's report.

Directors' responsibilities

As explained more fully in their statement set out on page 78, the Directors are responsible for the preparation of the Consolidated Financial Statements and the PLC Company Accounts including being satisfied that they give a true and fair view. They are also responsible for: such internal control as they determine is necessary to enable the preparation of Consolidated Financial Statements and PLC Company Accounts, that are free from material misstatement, whether due to fraud or error; assessing the Group and PLC Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the Group or the PLC Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud, other irregularities (see above), or error, and to issue our opinion in an auditor's report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud, other irregularities or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC's website at www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the PLC Company's members, as a body, in accordance with Chapters of Part 16 of the Companies Act 2006 and the terms of our engagement by the PLC Company. Our audit work has been undertaken so that we might state to the PLC Company's members those matters we are required to state to them in an auditor's report, and the further matters we are required to state to them in accordance with the terms agreed with the PLC Company, and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone otherthan the PLC Company and the PLC Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Signing

Amsterdam 4 March 2020

KPMG Accountants N.V.

Jurgen te Nijenhuis, External auditor

London 4 March 2020

Nicholas Frost, Senior Statutory Auditor

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

Consolidated income statement for the year ended 31 December for the year ended 31 December

		€ million	€ million	€ million
	Notes	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Turnover	2	51,980	50,982	53,715
Operating profit	2	8,708	12,639	8,957
Which includes non-underlying item credits/(charges) of	3	(1,239)	3,176	(543)
Net finance costs	5	(627)	(608)	(1,004)
Finance income		224	135	157
Finance costs		(821)	(718)	(683)
Pensions and similar obligations		(30)	(25)	(96)
Net finance cost non-underlying items	3	-	-	(382)
Non-underlying item net monetary gain/(loss) arising from hyperinflationary economies	1,3	32	122	-
Share of net profit/(loss) of joint ventures and associates	11	176	185	155
Which includes non-underlying item credits/(charges) of	3	3	32	-
Other income/(loss) from non-current investments and associates		-	22	18
Profit before taxation		8,289	12,360	8,126
Taxation	6A	(2,263)	(2,572)	(1,670)
Which includes tax impact of non-underlying items of	3	113	(288)	655
Net profit		6,026	9,788	6,456
Attributable to:
Non-controlling interests		401	419	433
Shareholders' equity		5,625	9,369	6,023
Combined earnings per share	7
Basic earnings per share (€)		2.15	3.49	2.15
Diluted earnings per share (€)		2.14	3.48	2.14

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Consolidated statement of comprehensive income for the year ended 31 December

		€ million	€ million	€ million
	Notes	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Net profit		6,026	9,788	6,456
Other comprehensive income	6C
Items that will not be reclassified to profit or loss, net of tax:
Gains/(losses) on equity instruments measured at fair value through other comprehensive income ^(b)		29	51	-
Remeasurement of defined benefit pension plans	15B	353	(328)	1,282
Items that may be reclassified subsequently to profit or loss, net of tax:
Gains/(losses) on cash flow hedges		176	(55)	(68)
Currency retranslation gains/(losses)	15B	(15)	(839)	(935)
Fair value gains/(losses) on financial instruments ^(b)	15B	-	-	(7)
Total comprehensive income		6,569	8,617	6,728
Attributable to:
Non-controlling interests		407	407	381
Shareholders' equity		6,162	8,210	6,347

^(a) Restated followina adooption of IFRS 16. See note 1 and note 24 for further details.
^(b) Classification was changed in 2018 following adoption of IFRS 9.

References in the consolidated income statement, consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated balance sheet and consolidated cash flow statement relate to notes on pages 91 to 142, which form an integral part of the consolidated financial statements.

Consolidated statement of changes in equity for the year ended 31 December

	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Consolidated statement of changes in equity	Called up share capital	Share premium account	Other reserves	Retained profit	Total	Noncontrolling interests	Total equity
31 December 2016 (as previously reported)	484	134	(7,443)	23,179	16,354	626	16,980
IFRS 16 restatement to 1 January 2017 ^(a)	-	-	(2)	(205)	(207)	-	(207)
1 January 2017 (restated) ^(a)	484	134	(7,445)	22,974	16,147	626	16,773
Profit or loss for the period	-	-	-	6,023	6,023	433	6,456
Other comprehensive income net of tax:
Fair value gains/(losses) on financial instruments ^(b)	-	-	(76)	-	(76)	1	(75)
Remeasurement of defined benefit pension plans net of tax	-	-	-	1,282	1,282	-	1,282
Currency retranslation gains/(losses)	-	-	(855)	(27)	(882)	(53)	(935)
Total comprehensive income	-	-	(931)	7,278	6,347	381	6,728
Dividends on ordinary capital	-	-	-	(3,916)	(3,916)	-	(3,916)
Repurchase of shares ^(c)	-	-	(5,014)	-	(5,014)	-	(5,014)
Other movements in treasury shares ^(e)	-	-	(30)	(174)	(204)	-	(204)
Share-based payment credit ^(f)	-	-	-	284	284	-	284
Dividends paid to non-controlling interests	-	-	-	-	-	(345)	(345)
Currency retranslation gains/(losses) net of tax	-	(4)	-	-	(4)	-	(4)
Other movements in equity	-	-	(167)	(33)	(200)	96	(104)
31 December 2017 (restated) ^(a)	484	130	(13,587)	26,413	13,440	758	14,198
Hyperinflation restatement to 1 January 2018 (see note 1)	-	-	-	393	393	-	393
1 January 2018 (restated)	484	130	(13,587)	26,806	13,833	758	14,591
Profit or loss for the period	-	-	-	9,369	9,369	419	9,788
Other comprehensive income, net of tax:
Gains/(losses) on: ^(b)
Equity instruments	-	-	51	-	51	-	51
Cash flow hedges	-	-	(56)	-	(56)	1	(55)
Remeasurement of defined benefit pension plans	-	-	-	(330)	(330)	2	(328)
Currency retranslation gains/(losses)	-	-	(814)	(10)	(824)	(15)	(839)
Total comprehensive income	-	-	(819)	9,029	8,210	407	8,617
Dividends on ordinary capital	-	-	-	(4,081)	(4,081)	-	(4,081)
Repurchase of shares ^(c)	-	-	(6,020)	-	(6,020)	-	(6,020)
Cancellation of treasury shares ^(d)	(20)	-	5,069	(5,049)	-	-	-
Other movements in treasury shares ^(e)	-	-	(8)	(245)	(253)	-	(253)
Share-based payment credit ^(f)	-	-	-	196	196	-	196
Dividends paid to non-controlling interests	-	-	-	-	-	(342)	(342)
Currency retranslation gains/(losses) net of tax	-	(1)	-	-	(1)	-	(1)
Hedging gain/(loss) transferred to non-financial assets	-	-	71	-	71	-	71
Other movements in equity ^(g)	-	-	76	(634)	(558)	(103)	(661)
31 December 2018 (restated) ^(a)	464	129	(15,218)	26,022	11,397	720	12,117
Impact of adopting IFRIC 23 (see note 1)	-	-	-	(38)	(38)	-	(38)
1 January 2019 (restated)	464	129	(15,218)	25,984	11,359	720	12,079
Profit or loss for the period	-	-	-	5,625	5,625	401	6,026
Other comprehensive income, net of tax:
Gains/(losses) on: ^(b)
Equity instruments	-	-	25	-	25	4	29
Cash flow hedges	-	-	176	-	176	-	176
Remeasurement of defined benefit pension plans	-	-	-	352	352	1	353
Currency retranslation gains/(losses)	-	-	(18)	2	(16)	1	(15)
Total comprehensive income	-	-	183	5,979	6,162	407	6,569
Dividends on ordinary capital	-	-	-	(4,223)	(4,223)	-	(4,223)
Cancellation of treasury shares ^(d)	(44)	-	9,416	(9,372)	-	-	-
Other movements in treasury shares ^(e)	-	-	64	(231)	(167)	-	(167)
Share-based payment credit ^(f)	-	-	-	151	151	-	151
Dividends paid to non-controlling interests	-	-	-	-	-	(435)	(435)
Currency retranslation gains/(losses) net of tax	-	5	-	-	5	-	5
Hedging gain/(loss) transferred to non-financial assets	-	-	32	-	32	-	32
Other movements in equity	-	-	(51)	(76)	(127)	2	(125)
31 December 2019	420	134	(5,574)	18,212	13,192	694	13,886

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) Classification was changed in 2018 following adoption of IFRS 9.
^(c) Repurchase of shares reflects the cost of acquiring ordinary shares as part of the share buyback programmes announced on 19 April 2018 and 6 April 2017.
^(d) During 2019 254,012,896 NV ordinary shares and 18,660,634 PLC ordinary shares were cancelled and in 2018 122,965,077 PLC ordinary shares were cancelled. The amount paid to repurchase these shares was initially recognised in other reserves and is transferred to retained profit on cancellation.
^(e) Includes purchases and sales of treasury shares other than the share buyback programme, transfer from treasury shares to retained profit of share-settled schemes arising from prior years and differences between exercise and grant price of share options.
^(f) The share-based payment credit relates to the non-cash charge recorded in operating profit in respect of the fair value of share options and awards granted to employees.
^(g) 2018 includes a € 662 million premium paid for purchase of the non-controlling interest in Unilever South Africa from Remgro.

Consolidated balance sheet

		€ million	€ million	€ million
	Notes	31 December 2019	31 December 2018 (Restated) ^(a)	1 January 2018 (Restated) ^(a)
Assets
Non-current assets
Goodwill	9	18,067	17,341	16,881
Intangible assets	9	12,962	12,152	11,520
Property, plant and equipment	10	12,062	12,088	12,270
Pension asset for funded schemes in surplus	4B	2,422	1,728	2,173
Deferred tax assets	6B	1,336	1,152	1,118
Financial assets	17A	874	642	675
Other non-current assets	11	653	530	441
		48,376	45,633	45,078
Current assets
Inventories	12	4,164	4,301	3,962
Trade and other current receivables	13	6,695	6,482	5,219
Current tax assets		397	472	488
Cash and cash equivalents	17A	4,185	3,230	3,317
Other financial assets	17A	907	874	770
Assets held for sale	22	82	119	3,224
		16,430	15,478	16,980
Total assets		64,806	61,111	62,058
Liabilities
Current liabilities
Financial liabilities	15C	4,691	3,613	8,378
Trade payables and other current liabilities	14	14,768	14,457	13,426
Current tax liabilities		898	1,445	1,088
Provisions	19	620	624	525
Liabilities held for sale	22	1	11	170
		20,978	20,150	23,587
Non-current liabilities
Financial liabilities	15C	23,566	23,125	18,039
Non-current tax liabilities		182	174	118
Pensions and post-retirement healthcare liabilities:
Funded schemes in deficit	4B	1,157	1,209	1,225
Unfunded schemes	4B	1,461	1,393	1,509
Provisions	19	664	697	794
Deferred tax liabilities	6B	2,573	1,900	1,888
Other non-current liabilities	14	339	346	700
		29,942	28,844	24,273
Total liabilities		50,920	48,994	47,860
Equity
Shareholders' equity
Called up share capital	15A	420	464	484
Share premium account		134	129	130
Other reserves	15B	(5,574)	(15,218)	(13,587)
Retained profit		18,212	26,022	26,413
		13,192	11,397	13,440
Non-controlling interests		694	720	758
Total equity		13,886	12,117	14,198
Total liabilities and equity		64,806	61,111	62,058

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

These financial statements have been approved by the Directors.

4 March 2020

The Board of Directors

Consolidated cash flow statement for the year ended 31 December

		€ million	€ million	€ million
	Notes	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Net profit		6,026	9,788	6,456
Taxation		2,263	2,572	1,670
Share of net (profit)/loss of joint ventures/associates and other (income)/loss from non-current investments and associates		(176)	(207)	(173)
Net monetary (gain)/loss arising from hyperinflationary economies		(32)	(122)	-
Net finance costs	5	627	608	1,004
Operating profit		8,708	12,639	8,957
Depreciation, amortisation and impairment		1,982	2,216	2,025
Changes in working capital:		(9)	(793)	(68)
Inventories		313	(471)	(104)
Trade and other receivables		(445)	(1,298)	(506)
Trade payables and other liabilities		123	976	542
Pensions and similar obligations less payments		(260)	(128)	(904)
Provisions less payments		7	55	200
Elimination of (profits)/losses on disposals		60	(4,313)	(298)
Non-cash charge for share-based compensation		151	196	284
Other adjustments ^(b)		2	(260)	(153)
Cash flow from operating activities		10,641	9,612	10,043
Income tax paid		(2,532)	(2,294)	(2,164)
Net cash flow from operating activities		8,109	7,318	7,879
Interest received		146	110	154
Purchase of intangible assets		(210)	(203)	(158)
Purchase of property, plant and equipment		(1,316)	(1,329)	(1,509)
Disposal of property, plant and equipment		97	108	46
Acquisition of businesses and investments in joint ventures and associates		(1,122)	(1,336)	(4,896)
Disposal of businesses, joint ventures and associates		177	7,093	561
Acquisition of other non-current investments		(160)	(94)	(317)
Disposal of other non-current investments		55	151	251
Dividends from joint ventures, associates and other non-current investments		164	154	138
(Purchase)/sale of financial assets		(68)	(10)	(149)
Net cash flow (used in)/from investing activities		(2,237)	4,644	(5,879)
Dividends paid on ordinary share capital		(4,209)	(4,066)	(3,916)
Interest paid		(694)	(571)	(574)
Net change in short-term borrowings		337	(4,026)	2,695
Additional financial liabilities		5,911	10,595	8,851
Repayment of financial liabilities		(4,912)	(6,594)	(2,604)
Capital element of lease payments		(435)	(481)	(497)
Buyback of preference shares		-	-	(448)
Repurchase of shares		-	(6,020)	(5,014)
Other movements on treasury shares		(201)	(257)	(204)
Other financing activities		(464)	(693)	(309)
Net cash flow (used in)/from financing activities		(4,667)	(12,113)	(2,020)
Net increase/(decrease) in cash and cash equivalents		1,205	(151)	(20)
Cash and cash equivalents at the beginning of the year		3,090	3,169	3,198
Effect of foreign exchange rate changes		(179)	72	(9)
Cash and cash equivalents at the end of the year	17A	4,116	3,090	3,169

^(a) Restated following adoption of IFRS 16. See note 1 and 24 for further details.
^(b) 2018 includes a non-cash credit of €277 million from early settlement of contingent consideration relating to Blueair.

The cash flows of pension funds (other than contributions and other direct payments made by the Group in respect of pensions and similar obligations) are not included in the Group cash flow statement

Notes to the Consolidated Financial Statements

Unilever Group

1. Accounting information and policies

The accounting policies adopted are the same as those which were applied for the previous financial year, except as set out below under the heading 'Recent accounting developments'.

Basis of consolidation

The two parent companies, NV and PLC, together with their group companies, operate as a single economic entity (the Unilever Group, also referred to as Unilever or the Group). NV and PLC have the same Directors and are linked by a series of agreements, including an Equalisation Agreement, which are designed so that the positions of the shareholders of both companies are as closely as possible the same as if they held shares in a single company.

The Equalisation Agreement provides that both companies adopt the same accounting principles. It also requires that dividends and other rights and benefits attaching to each ordinary share of NV, be equal in value to those rights and benefits attaching to each ordinary share of PLC, as if each such unit of capital formed part of the ordinary share capital of one and the same company.

Due to the operational and contractual arrangements referred to above, NV and PLC form a single reporting entity for the purposes of presenting consolidated financial statements. Accordingly, the financial statements of Unilever are presented by both NV and PLC as their respective consolidated financial statements. Group companies included in the consolidation are those companies controlled by NV or PLC. Control exists when the Group has the power to direct the activities of an entity so as to affect the return on investment.

The net assets and results of acquired businesses are included in the consolidated financial statements from their respective dates of acquisition, being the date on which the Group obtains control The results of disposed businesses are included in the consolidated financial statements up to their date of disposal, being the date control ceases.

Intra-group transactions and balances are eliminated.

Companies legislation and accounting standards

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU), IFRIC Interpretations and in accordance with Part 9 of Book 2 of the Civil Code in the Netherlands and the UK Companies Act 2006 applicable to companies reporting under IFRS. They are also in compliance with IFRS as issued by the International Accounting Standards Board (IASB).

These financial statements are prepared under the historical cost convention unless otherwise indicated.

These financial statements have been prepared on a going concern basis. Refer to the going concern statement on page 78.

Accounting policies

Accounting policies are included in the relevant notes to the consolidated financial statements. These are presented as text highlighted in grey on pages 91 to 142. The accounting policies below are applied throughout the financial statements.

Foreign currencies

The consolidated financial statements are presented in euros. The functional currencies of NV and PLC are euros and sterling respectively. Items included in the financial statements of individual group companies are recorded in their respective functional currency which is the currency of the primary economic environment in which each entity operates.

Foreign currency transactions in individual group companies are translated into functional currency using exchange rates at the date of the transaction. Foreign exchange gains and losses from settlement of these transactions, and from translation of monetary assets and liabilities at year-end exchange rates, are recognised in the income statement except when deferred in equity as qualifying hedges.

In preparing the consolidated financial statements, the balances in individual group companies are translated from their functional currency into euros. Apart from the financial statements of group companies in hyperinflationary economies (see below), the income statement, the cash flow statement and all other movements in assets and liabilities are translated at average rates of exchange as a proxy for the transaction rate, or at the transaction rate itself if more appropriate. Assets and liabilities are translated at year-end exchange rates.

The financial statements of group companies whose functional currency is the currency of a hyperinflationary economy are adjusted for inflation and then translated into euros using the balance sheet exchange rate. Amounts shown for prior years for comparative purposes are not modified. To determine the existence of hyperinflation, the Group assesses the qualitative and quantitative characteristics of the economic environment of the country, such as the cumulative inflation rate over the previous three years.

The ordinary share capital of NV and PLC is translated in accordance with the Equalisation Agreement. The difference between the value for PLC and the value by applying the year-end rate of exchange is taken to other reserves (see note 15B on page 118).

The effect of exchange rate changes during the year on net assets of foreign operations is recorded in equity. For this purpose net assets include loans between group companies and any related foreign exchange contracts where settlement is neither planned nor likely to occur in the foreseeable future.

The Group applies hedge accounting to certain exchange differences arising between the functional currencies of a foreign operation and NV or PLC as appropriate, regardless of whether the net investment is held directly or through an intermediate parent. Differences arising on retranslation of a financial liability designated as a foreign currency net investment hedge are recorded in equity to the extent that the hedge is effective. These differences are reported within profit or loss to the extent that the hedge is ineffective.

Cumulative exchange differences arising since the date of transition to IFRS of 1 January 2004 are reported as a separate component of other reserves. In the event of disposal or part disposal of an interest in a group company either through sale or as a result of a repayment of capital, the cumulative exchange difference is recognised in the income statement as part of the profit or loss on disposal of group companies.

Hyperinflationary economies

The Argentinian economy was designated as hyperinflationary from 1 July 2018. As a result, application of IAS 29 'Financial Reporting in Hyperinflationary Economies' has been applied to all Unilever entities whose functional currency is the Argentinian Peso for 2018 and 2019. The application of IAS 29 includes:

• Adjustment of historical cost non-monetary assets and liabilities for the change in purchasing power caused by inflation from the date of initial recognition to the balance sheet date;

• Adjustment of the income statement for inflation during the reporting period;

• The income statement is translated at the period end foreign exchange rate instead of an average rate; and

• Adjustment of the income statement to reflect the impact of inflation and exchange rate movement on holding monetary assets and liabilities in local currency.

The main effects of the Group consolidated financial statements for 2019 are:

• Total assets are reduced by €42 million;

• Turnover is reduced by €14 million;

• Operating profit is reduced by €11 million; and

• Monetary gain recognised of €32 million.

Critical accounting estimates and judgements

The preparation of financial statements requires management to make estimates and judgements in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and judgements are continuously evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future period affected.

The following estimates are those that management believe have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are:

• Measurement of defined benefit obligations - the valuations of the Group's defined benefit pension plan obligations are dependent on a number of assumptions. These include discount rates, inflation and life expectancy of scheme members. Details of these assumptions and sensitivities are in note 4B.

• Measurement of consideration and assets and liabilities acquired as part of business combinations. See note 21 for further information. Estimates are required to value the assets and liabilities acquired in business combinations. Intangible assets such as brands are commonly a core part of an acquired business as they allow us to obtain more value than would otherwise be possible.

The following judgements are those that management believe have the most significant effect on the amounts recognised in the Group's financial statements:

• Separate presentation of items in the income statement - certain items of income or expense are presented separately as non-underlying items. These are excluded in several of our performance measures, including underlying operating profit and underlying earnings per share due to their nature and/or frequency of occurrence. See note 3 for further details.

• Utilisation of tax losses and recognition of other deferred tax assets - The Group operates in many countries and is subject to taxes in numerous jurisdictions. Management uses judgement to assess the recoverability of tax assets such as whether there will be sufficient future taxable profits to utilise losses - see note 6B.

• Likelihood of occurrence of provisions and contingent liabilities - events can occur where there is uncertainty over future obligations. Judgement is required to determine if an outflow of economic resources is probable, or possible but not probable. Where it is probable, a liability is recognised and further judgement is used to determine the level of the provision. Where it is possible but not probable, further judgement is used to determine if the likelihood is remote, in which case no disclosures are provided; if the likelihood is not remote then judgement is used to determine the contingent liability disclosed. Unilever does not have provisions and contingent liabilities for the same matters. External advice is obtained for any material cases. See notes 6A, 19 and 20.

• Recognition of pension surplus - where there is an accounting surplus on a defined benefit plan, management uses judgement to determine whether the Group can realise the surplus through refunds, reductions in future combinations or a combination of both.

Recognition and measurement of IFRS 16 assets and liabilities - the Group adopted IFRS 16 on 1 January 2019 and restated all prior periods that are reported. In recognising and measuring lease assets and liabilities on the balance sheet, the Group applied judgement in determining whether each contract is or contains a lease. This included an assessment about whether the contract depends on a specified asset, whether the Group obtains substantially all the economic benefits from the use of that asset, and whether the Group has the right to direct the use of that asset. The Group also exercised judgement in determining the lease term as the non-cancellable term of the lease, together with the impact of options to extend or terminate the lease if it is reasonably certain to be exercised.

Recent accounting developments

Adopted by the group

The Group applied for the first-time amendments to the following standards from 1 January 2019.

Applicable standard	Key requirements or changes in accounting policy	Implementation progress and expected impact
IFRS 16 'Leases'	This standard changes the recognition, measurement, presentation and disclosure of leases. In particular it requires lessees to record all leases on the balance sheet with exemptions available for low value and short-term leases. At the commencement of a lease, a lessee recognises lease payments (lease liability) and an asset representing the right to use the asset during the lease term (leased asset). Lessees subsequently reduce the lease liability when paid and recognise depreciation on the leased asset.	The Group has adopted IFRS 16 Leases in its reporting from 1 January 2019, applying the standard using the 'full retrospective' approach, and amounts relating to the years ended 31 December 2018 and 2017 have been restated in these financial statements.
		The Group has recognised all leases on its balance sheet upon transition to IFRS 16, except for short-term leases (less than a year) and leases for low-value assets.
		The impact of adopting IFRS 16 on the Group's financial statements is further detailed in note 24.
	A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine lease payments. The remeasurement normally also adjusts the leased asset.
	The standard has no impact on the actual cash flows of a group. However the standard requires the capitalisation, and subsequent depreciation, of costs that were previously expensed as paid which impacts disclosures of cash flows within the cash flow statement. The amounts previously expensed as operating cash outflows are instead capitalised and presented as financing cash outflows.
IFRIC 23 'Uncertainty over income tax treatments'	This interpretation clarifies how entities should reflect uncertainties over income tax treatments.	The Group applies judgement in identifying uncertainties over income tax treatments and has adjusted its uncertain tax provisions to be in line with the new criteria. The Group has elected to recognise the cumulative impact of € 38 million within opening retained earnings.
Amendments to IAS 19 'Employee Benefits'	The change requires that following plan amendments, curtailments or settlements, current service and net interest costs for the remainder of the reporting period should be calculated in line with updated actuarial assumptions.	The amendment is applied prospectively. During the period the amendment had no impact on the Group financial statements.

All other standards or amendments to standards that have been issued by the IASB and were effective by 1 January 2019 were not applicable or material to Unilever.

New standards, amendments and interpretations of existing standards that are not yet effective and have not been early adopted by the Group

The following new standards have been released but are not yet adopted by the Group. The expected impact and progress is shown below. In addition to the above, based on an initial review the Group does not currently believe adoption of the following standard/amendments will have a material impact on the consolidated results or financial position of the Group.

Applicable standard	Key requirements or changes in accounting policy
Interest Rate Benchmark Reform - Amendments to IFRS 9, IAS 39 and IFRS 7	The amendments modify specific hedge accounting requirements so entities can continue to forecast future cash flows assuming that the interest rate benchmark will continue despite ongoing reviews of interest rate benchmark reform. As a result there is no requirement for an entity to discontinue hedge relationships or to reassess the economic relationships between hedged items and hedging instruments as a result of the uncertainties of the interest rate benchmark reform.
Effective from the year ending 31 December 2020	We do not have material derivatives that refer to an interest rate benchmark so these amendments will not have a material impact on Unilever.
IFRS 17 'Insurance Contracts'	This standard introduces a new model for accounting for insurance contracts. Work continues to review existing arrangements to determine the impact on adoption. Based on preliminary work the impact is estimated to be immaterial.
Effective from the year ending 31 December 2022

All other standards or amendments to standards that have been issued by the IASB and are effective from 1 January 2020 onwards are not applicable or material to Unilever.

2. Segment information

Segmental reporting

Beauty & Personal Care	- primarily sales of skin cleansing (soap, shower), skin care (face, hand and body moisturisers), hair care (shampoo, conditioner, styling) and deodorants categories.
Foods & Refreshment	- primarily sales of ice cream, savoury (soups, bouillons, seasoning), dressings (mayonnaise, ketchup) and tea categories.
HomeCare	- primarily sales of fabric category (washing powders and liquids, rinse conditioners) and includes a wide range of cleaning products.

Revenue

Turnover comprises sales of goods after the deduction of discounts, sales taxes and estimated returns. It does not include sales between group companies. Discounts given by Unilever include rebates, price reductions and incentives given to customers, promotional couponing and trade communication costs and are based on the contractual arrangements with each customer. Discounts can either be immediately deducted from the sales value on the invoice or off-invoice and settled later through credit notes when the precise amounts are known. Rebates are generally off-invoice. Amounts provided for discounts at the end of a period require estimation; historical data and accumulated experience is used to estimate the provision using the most likely amount method and in most instances the discount can be estimated using known facts with a high level of accuracy. Any differences between actual amounts settled and the amounts provided are not material and recognised in the subsequent reporting period.

Customer contracts generally contain a single performance obligation and turnover is recognised when control of the products being sold has transferred to our customer as there are no longer any unfulfilled obligations to the customer. This is generally on delivery to the customer but depending on individual customer terms, this can be at the time of dispatch, delivery or upon formal customer acceptance. This is considered the appropriate point where the performance obligations in our contracts are satisfied as Unilever no longer has control over the inventory.

Our customers have the contractual right to return goods only when authorised by Unilever. At 31 December 2019, an estimate has been made of goods that will be returned and a liability has been recognised for this amount. An asset has also been recorded for the corresponding inventory that is estimated to return to Unilever using a best estimate based on accumulated experience.

Some of our customers are distributors who may be able to return unsold goods in consignment arrangements.

Underlying operating profit

Underlying operating profit means operating profit before the impact of non-underlying items within operating profit (see note 3). Underlying operating profit represents our measure of segment profit or loss as it is the primary measure used for the purpose of making decisions about allocating resources and assessing performance of segments. Underlying operating margin is calculated as underlying operating profit divided by turnover.

Our segments are comprised of similar product categories. 9 categories (2018: 9; 2017:10) individually accounted for 5% or more of our revenue in one or more of the last three years. The following table shows the relevant contribution of these categories to group revenue for the periods shown:

Category	Segment	2019	2018	2017
Fabric	Home Care	15%	15%	15%
Ice cream	Foods & Refreshment	13%	13%	13%
Hair care	Beauty & Personal Care	12%	12%	11%
Savoury	Foods & Refreshment	11%	11%	11%
Skin cleansing	Beauty & Personal Care	10%	10%	10%
Deodorants	Beauty & Personal Care	8%	8%	8%
Skin care	Beauty & Personal Care	8%	7%	6%
Tea	Foods & Refreshment	6%	6%	5%
Dressings	Foods & Refreshment	5%	5%	6%
Spreads	Foods & Refreshment	-	3%	6%
Other		12%	10%	9%

The group operating segment information is provided based on three product areas: Beauty & Personal Care, Foods & Refreshment and Home Care

		€ million	€ million	€ million	€ million
	Notes	Beauty & Personal Care	Foods & Refreshment	Home Care	Total
2019
Turnover		21,868	19,287	10,825	51,980
Operating profit		4,520	2,811	1,377	8,708
Non-underlying items	3	440	571	228	1,239
Underlying operating profit		4,960	3,382	1,605	9,947
Share of net profit/(loss) of joint ventures and associates		1	171	4	176
Significant non-cash charges:
Within underlying operating profit:
Depreciation and amortisation		693	902	369	1,964
Share-based compensation and other non-cash charges ^(b)		62	56	50	168
Within non-underlying items:
Impairment and other non-cash charges(c)		105	159	46	310
2018 (Restated) ^(a)
Turnover		20,624	20,227	10,131	50,982
Operating profit		4,165	7,287	1,187	12,639
Non-underlying items	3	378	(3,711)	157	(3,176)
Underlying operating profit		4,543	3,576	1,344	9,463
Share of net profit/(loss) of joint ventures and associates		(1)	183	3	185
Significant non-cash charges:
Within underlying operating profit:
Depreciation and amortisation		686	949	373	2,008
Share-based compensation and other non-cash charges ^(b)		102	102	46	250
Within non-underlying items:
Impairment and other non-cash charges ^(c)		122	164	263	549
2017 (Restated) ^(a)
Turnover		20,697	22,444	10,574	53,715
Operating profit		4,140	3,657	1,160	8,957
Non-underlying items	3	272	121	150	543
Underlying operating profit		4,412	3,778	1,310	9,500
Share of net profit/(loss) of joint ventures and associates		8	143	4	155
Significant non-cash charges:
Within underlying operating profit:
Depreciation and amortisation		641	1,059	325	2,025
Share-based compensation and other non-cash charges ^(b)		164	174	79	417
Within non-underlying items:
Impairment and other non-cash charges ^(c)		80	191	48	319

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) Other non-cash charges within underlying operating profit include movements in provisions from underlying activities, excluding movements arising from non-underlying activities.
^(c) Other non-cash charges within non-underlying items includes movements in restructuring provisions and certain legal provisions (in 2018 and 2017).

The Unilever Group is not reliant on turnover from transactions with any single customer and does not receive 10% or more of its turnover from transactions with any single customer.

Segment assets and liabilities are not provided because they are not reported to or reviewed by our chief operating decision-maker, which is Unilever Leadership Executive (ULE).

The home countries of the Unilever Group are the Netherlands and the United Kingdom. Turnover and non-current assets for these two countries combined, for the United States (being the largest country outside the home countries) and for all other countries are:

	€ million	€ million	€ million	€ million
	Netherlands /United Kingdom	United States	Others	Total
2019
Turnover	3,508	8,702	39,770	51,980
Non-current assets ^(b)	4,705	13,326	25,714	43,744
2018 (Restated) ^(a)
Turnover	3,679	8,305	38,998	50,982
Non-current assets ^(b)	4,336	12,471	25,304	42,111
2017 (Restated) ^(a)
Turnover	3,849	8,532	41,334	53,715
Non-current assets ^(b)	4,101	12,110	24,901	41,112

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) For the purpose of this table, non-current assets include goodwill, intangible assets, property, plant and equipment and other non-current assets as shown on the consolidated balance sheet on page 89. Goodwill is attributed to the countries where the acquired business operated at the time of acquisition; all other assets are attributed to the countries where they were acquired.

No other country had turnover or non-current assets (as shown above) greater than 10% of the Group total.

Additional information by geographies

Although the Group's operations are managed by product area, we provide additional information based on geographies. The analysis of turnover by geographical area is stated on the basis of origin.

	€ million	€ million	€ million	€ million
	Asia/ AMET/RUB ^(b)	The Americas	Europe	Total
2019
Turnover	24,129	16,482	11,369	51,980
Operating profit	4,418	2,683	1,607	8,708
Non-underlying items	439	395	405	1,239
Underlying operating profit	4,857	3,078	2,012	9,947
Share of net profit/(loss) of joint ventures and associates	(5)	126	55	176
2018 (Restated) ^(a)
Turnover	22,868	16,020	12,094	50,982
Operating profit	4,824	3,621	4,194	12,639
Non-underlying items	(437)	(892)	(1,847)	(3,176)
Underlying operating profit	4,387	2,729	2,347	9,463
Share of net profit/(loss) of joint ventures and associates	-	114	71	185
2017 (Restated) ^(a)
Turnover	23,266	17,525	12,924	53,715
Operating profit	3,847	3,120	1,990	8,957
Non-underlying items	306	(23)	260	543
Underlying operating profit	4,153	3,097	2,250	9,500
Share of net profit/(loss) of joint ventures and associates	12	112	31	155

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) Refers to Asia, Africa, Middle East, Turkey, Russia, Ukraine and Belarus.

Transactions between the Unilever Group's geographical regions are immaterial and are carried out on an arm's length basis.

3. Operating costs and non-underlying items

Operating costs

Operating costs include cost of sales, brand and marketing investment and overheads.

(i) Cost of sales

Cost of sales includes the cost of inventories sold during the period and distribution costs. The cost of inventories are raw and packaging materials and related production costs. Distribution costs are charged to the income statement as incurred.

(ii) Brand and marketing investment

Brand and marketing investment include costs related to creating and maintaining brand equity and brand awareness. This includes media, advertising production, promotional materials and engagement with consumers. These costs are charged to the income statement as incurred.

(iii) Overheads

Overheads include staff costs associated with sales activities and central functions such as finance, human resources and research and development costs. Research and development costs are staff costs, material costs, depreciation of property, plant and equipment and other costs that are directly attributable to research and product development activities. These costs are charged to the income statement as incurred.

Non-underlying items

These items are relevant to an understanding of our financial performance due to their nature and/or frequency of occurrence.

(i) Non-underlying items within operating profit

These are gains and losses on business disposals, acquisition and disposal-related costs, restructuring costs, impairments and one-off items within operating profit. Restructuring costs are charges associated with activities planned by management that significantly change either the scope of the business or the manner in which it is conducted.

(ii) Non-underlying items not in operating profit but within net profit

These are net monetary gain or loss arising from hyperinflationary economies and significant and unusual items in net finance cost, share of profit/ (loss) of joint ventures and associates and taxation.

	€ million	€ million	€ million
	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Turnover	51,980	50,982	53,715
Cost of sales	(29,102)	(28,703)	(30,484)
of which:
Distribution costs	(3,089)	(3,057)	(3,202)
Production costs	(3,701)	(3,732)	(4,190)
Raw and packaging materials and goods purchased for resale	(20,769)	(20,516)	(21,587)
Other	(1,543)	(1,398)	(1,505)
Gross profit	22,878	22,279	23,231
Selling and administrative expenses of which:	(12,931)	(12,816)	(13,731)
Brand and marketing investment	(7,272)	(7,150)	(7,575)
Overheads	(5,659)	(5,666)	(6,156)
of which: Research and development	(840)	(900)	(900)
Non-underlying items within operating profit before tax	(1,239)	3,176	(543)
Operating profit	8,708	12,639	8,957

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Exchange losses within operating costs are €41 million (2018: €49 million; 2017: €214 million).

Non-underlying items

Non-underlying items are disclosed on the face of the income statement to provide additional information to users to help them better understand underlying business performance.

	€ million	€ million	€ million
	2019	2018	2017
Non-underlying items within operating profit before tax	(1,239)	3176	(543)
Acquisition and disposal-related costs ^(a)	(132)	76	(159)
Gain/(loss) on disposal of group companies ^(b)	70	4,331	334
Restructuring costs ^(c)	(1,159)	(914)	(638)
Impairments ^(d)	(18)	(208)	-
One-off items ^(e)	-	(109)	(80)
Tax on non-underlying items within operating profit ^(f)	309	(259)	77
Non-underlying items within operating profit after tax	(930)	2,917	(466)
Non-underlying items not in operating profit but within net profit before tax	35	154	(382)
Premium paid on buyback of preference shares	-	-	(382)
Share of gain on disposal of Spreads business in Portugal JV	3	32	-
Net monetary gain arising from hyperinflationary economies	32	122	-
Tax impact of non-underlying items not in operating profit but within net profit ^(f)	(196)	(29)	578
Impact of US tax reform ^(g)	-	(29)	578
Taxes related to the reorganisation of our European business	(175)	-	-
Hyperinflation adjustment for Argentina deferred tax	(21)	-	-
Non-underlying items not in operating profit but within net profit after tax	(161)	125	196
Non-underlying items after tax ^(h)	(1,091)	3,042	(270)
Attributable to:
Non-controlling interest	(28)	18	(8)
Shareholders' equity	(1,063)	3,024	(262)

^(a) 2018 includes a credit of €277 million from early settlement of contingent consideration relating to Blueair.
^(b) 2019 includes a gain of €57 million relating to the disposal of Alsa. 2018 includes again of €4,331 million on disposal of spreads business. 2017 includes again of €309 million from the sale of AdeS soy beverage business in Latin America.
^(c) Restructuring costs are comprised of various supply chain optimisation projects and organisational change programmes across markets all of which have been further accelerated during 2019.
^(d) 2019 includes a charge of €18 million relating to an impairment of goodwill for a local business classified to held for sale. 2018 includes a charge of €208 million relating to impairment of Blueair intangible asset.
^(e) 2018 includes a charge of €98 million for litigation matters comprised of €48 million for UK pension obligations and €50 million for legal cases in relation to investigations by national competition authorities. 2017 includes an €80 million charge for legal cases in relation to investigations by national competition authorities including those within Italy and South Africa.
^(f) Tax impact of non-underlying items shown in the income statement is the total of tax on non-underlying items within operating profit and the tax impact of non-underlying items not in operating profit but within net profit.
^(g) On 22 December 2017, HR1, formerly known as the Tax Cuts and Jobs Act was signed into law in the United States. As a result, tax benefit of €578 million was recognised in 2017, primarily due to re-measurement of deferred tax assets and liabilities at the new lower 21% federal tax rate.
^(h) Non-underlying items after tax is calculated as non-underlying items within operating profit after tax plus non-underlying items not in operating profit but within net profit after tax.

4. Employees

4A. Staff and management costs

	€ million	€ million	€ million
Staff costs	2019	2018	2017
Wages and salaries	(5,364)	(5,346)	(5,416)
Social security costs	(541)	(571)	(613)
Other pension costs	(334)	(439)	(399)
Share-based compensation costs	(151)	(196)	(284)
	(6,390)	(6,552)	(6,712)

	'000	'000	'000
Average number of employees during the year	2019	2018	2017
Asia/AMET/RUB	84	88	93
The Americas	40	40	41
Europe	29	30	31
	153	158	165

	€ million	€ million	€ million
Key management compensation	2019	2018	2017
Salaries and short-term employee benefits	(42)	(40)	(34)
Post-employment benefits	-	-	-
Share-based benefits ^(a)	(16)	(13)	(26)
	(58)	(53)	(60)
Of which: Executive Directors	(9)	(13)	(17)
Other ^(b)	(49)	(40)	(43)
Non-Executive Directors' fees	(2)	(2)	(2)
	(60)	(55)	(62)

^(a) Share-based benefits are shown based on the expense recognised in the income statement. Share-based benefits compensation for key management on a vesting basis is €17 million (2018: €19 million; 2017: €20 million).
^(b) Other includes all members of the Unilever Leadership Executive, other than Executive Directors.

Key management are defined as the members of Unilever Leadership Executive (ULE) and the Non-Executive Directors. Compensation for the ULE includes the full-year compensation for ULE members who joined part way through the year.

Details of the remuneration of Directors are given in the parts noted as audited in the Directors' remuneration report on pages 60 to 77.

4B. Pensions and similar obligations

For defined benefit plans, operating and finance costs are recognised separately in the income statement. The amount charged to operating cost in the income statement is the cost of accruing pension benefits promised to employees over the year, plus the costs of individual events such as past service benefit changes, settlements and curtailments (such events are recognised immediately in the income statement). The amount charged or credited to finance costs is a net interest expense calculated by applying the liability discount rate to the net defined benefit liability or asset. Any differences between the expected interest on assets and the return actually achieved, and any changes in the liabilities over the year due to changes in assumptions or experience within the plans, are recognised immediately in the statement of comprehensive income.

The defined benefit plan surplus or deficit on the balance sheet comprises the total for each plan of the fair value of plan assets less the present value of the defined benefit liabilities (using a discount rate based on high-quality corporate bonds, or a suitable alternative where there is no active corporate bond market).

All defined benefit plans are subject to regular actuarial review using the projected unit method by external consultants. The Group policy is that the most material plans, representing approximately 84% of the defined benefit liabilities, are formally valued every year. Other material plans, accounting for a further 12% of the liabilities, have their liabilities updated each year. Group policy for the remaining plans requires a full actuarial valuation at least every three years. Asset values for all plans are updated every year.

For defined contribution plans, the charges to the income statement are the company contributions payable, as the company's obligation is limited to the contributions paid into the plans. The assets and liabilities of such plans are not included in the balance sheet of the Group.

Description of plans

The Group increasingly operates a number of defined contribution plans, the assets of which are held in external funds. In certain countries the Group operates defined benefit pension plans based on employee pensionable remuneration and length of service. The majority of defined benefit plans are either career average, final salary or hybrid plans and operate on a funded basis with assets held in external funds. Benefits are determined by the plan rules and are linked to inflation in some countries. Our largest plans are in the UK and Netherlands. In the UK, we operate a combination of an open career average defined benefit plan with a salary limit for benefit accrual, and a defined contribution plan. In the Netherlands, we operate a collective defined contribution plan for all new benefit accrual and a closed career average defined benefit plan for benefits built up to April 2015.

The Group also provides other post-employment benefits, mainly post-employment healthcare plans in the United States. These plans are predominantly unfunded.

Governance

The majority of the Group's externally funded plans are established as trusts, foundations or similar entities. The operation of these entities is governed by local regulations and practice in each country, as is the nature of the relationship between the Group and the Trustees (or equivalent) and their composition. Where Trustees (or equivalent) are in place to operate plans, they are generally required to act on behalf of the plan's stakeholders. They are tasked with periodic reviews of the solvency of the fund in accordance with local legislation and play a role in the long-term investment and funding strategy. The Group also has an internal body, the Pensions and Equity Committee, that is responsible for setting the company's policies and decisionmaking on plan matters, including but not limited to design, funding, investments, risk management and governance.

Investment strategy

The Group's investment strategy in respect of its funded plans is implemented within the frameworkof the various statutory requirements of the territories where the plans are based. The Group has developed policy guidelines for the allocation of assets to different classes with the objective of controlling risk and maintaining the right balance between risk and long-term returns in order to limit the cost to the Group of the benefits provided. To achieve this, investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. The plans continue to invest a good proportion of the assets in equities, which the Group believes offer the best returns over the long term, commensurate with an acceptable level of risk. The plans expose the Group to a number of actuarial risks such as investment risk, interest rate risk, longevity risk and, in certain markets, inflation risk. There are no unusual entity or plan-specific risks to the Group. For risk control, the pension funds also have significant investments in liability matching assets (bonds) as well as in property and other alternative assets; additionally, the Group uses derivatives to further mitigate the impact of the risks outlined above. The majority of assets are managed by a number of external fund managers with a small proportion managed in-house. Unilever has a pooled investment vehicle (Univest) which it believes offers its pension plans around the world a simplified externally managed investment vehicle to implement their strategic asset allocation models, currently for bonds, equities and alternative assets. The aim is to provide high-quality, well diversified, cost-effective, risk-controlled vehicles. The pension plans' investments are overseen by Unilever's internal investment company, the Univest Company.

Assumptions

With the objective of presenting the assets and liabilities of the pensions and other post-employment benefit plans at their fair value on the balance sheet, assumptions under IAS 19 are set by reference to market conditions at the valuation date. The actuarial assumptions used to calculate the benefit liabilities vary according to the country in which the plan is situated. The following table shows the assumptions, weighted by liabilities, used to value the principal defined benefit plans (representing approximately 96% of total pension liabilities and other post-employment benefit liabilities).

	31 December 2019		31 December 2018
	Defined benefit pension plans	Other postemployment benefit plans	Defined benefit pension plans	Other postemployment benefit plans
Discount rate	1.9%	3.9%	2.7%	4.8%
Inflation	2.3%	n/a	2.5%	n/a
Rate of increase in salaries	2.9%	3.0%	2.8%	3.0%
Rate of increase for pensions in payment (where provided)	2.2%	n/a	2.4%	n/a
Rate of increase for pensions in deferment (where provided)	2.4%	n/a	2.6%	n/a
Long-term medical cost inflation	n/a	5.4%	n/a	5.3%

The valuations of other post-employment benefit plans generally assume a higher initial level of medical cost inflation, which falls from 7% to the longterm rate within the next five years. Assumed healthcare cost trend rates have a significant effect on the amounts reported for healthcare plans.

For the UK and Netherlands pension plans, representing approximately 69% of all defined benefit pension liabilities, the assumptions used at 31 December 2019 and 2018 were:

	United Kingdom		Netherlands
	2019	2018	2019	2018
Discount rate	2.0%	2.8%	1.1%	1.8%
Inflation	2.9%	3.2%	1.5%	1.6%
Rate of increase in salaries	3.2%	3.1%	2.0%	2.1%
Rate of increase for pensions in payment (where provided)	2.8%	3.1%	1.5%	1.6%
Rate of increase for pensions in deferment (where provided)	2.8%	3.1%	1.5%	1.6%
Number of years a current pensioner is expected to live beyond age 65:
Men	21.6	22.1	22.6	22.5
Women	23.4	24.0	24.1	24.0
Number of years a future pensioner currently aged 45 is expected to live beyond age 65:
Men	22.6	22.7	24.5	24.4
Women	24.6	25.6	26.2	26.1

Demographic assumptions, such as mortality rates, are set with having regard to the latest trends in life expectancy (including expectations of future improvements), plan experience and other relevant data. These assumptions are reviewed and updated as necessary as part of the periodic actuarial valuation of the pension plans. The years of life expectancy for 2019 above have been translated from the following tables:

UK: The year of use S3 series all pensioners ("S3PMA" and "S3PFA_M") tables have been adopted, which are based on the experience of UK pension schemes over the period 2009-2016. Scaling factors are applied reflecting the experience of our pension funds appropriate to the member's gender and status. Future improvements in longevity have been allowed for in line with the 2018 CMI core projections (Sk = 7.0 and "A" parameter = 0.0%) and a 1.0% long-term improvement rate.

Netherlands: The Dutch Actuarial Society's AG Prognosetafel 2018 table is used with correction factors (2017) to allow for the typically longer life expectancy for fund members relative to the general population. This table has an in-built allowance forfuture improvements in longevity.

The remaining defined benefit plans are considered immaterial Their assumptions vary due to a number of factors including the currency and long-term economic conditions of the countries where they are situated.

Income statement

The charge to the income statement comprises:

		€ million	€ million	€ million
	Notes	2019	2018	2017
Charged to operating profit:
Defined benefit pension and other benefit plans:
Current service cost		(216)	(220)	(245)
Employee contributions		17	17	18
Special termination benefits		(5)	(16)	(4)
Past service cost including (losses)/gains on curtailments		65	(41)	23
Settlements		(2)	-	4
Defined contribution plans		(193)	(179)	(195)
Total operating cost	4A	(334)	(439)	(399)
Finance income/(cost)	5	(30)	(25)	(96)
Net impact on the income statement (before tax)		(364)	(464)	(495)

Statement of comprehensive income

Amounts recognised in the statement of comprehensive income on the remeasurement of the net defined benefit liability.

	€ million	€ million	€ million
	2019	2018	2017
Return on plan assets excluding amounts included in net finance income/(cost)	2,385	(1,108)	1,475
Actuarial gains/(losses) arising from changes in demographic assumptions	183	42	222
Actuarial gains/(losses) arising from changes in financial assumptions	(2,138)	611	(210)
Experience gains/(losses) arising on pension plan and other benefit plan liabilities	(12)	18	133
Change in asset ceiling, excluding amounts included in finance cost	(37)	-	-
Total of defined benefit costs recognised in other comprehensive income	381	(437)	1,620

Balance sheet

The assets, liabilities and surplus/(deficit) position of the pension and other post-employment benefit plans at the balance sheet date were:

	€ million 2019		€ million 2018
	Pension plans	Other postemployment benefit plans	Pension plans	Other postemployment benefit plans
Fair value of assets	23,749	14	20,867	13
Present value of liabilities	(23,438)	(484)	(21,288)	(466)
Computed net assets/(liabilities)	311	(470)	(421)	(453)
Irrecoverable surplus ^(a)	(37)	-	-	-
Net pension assets/(liabilities)	274	(470)	(421)	(453)
Of which in respect of:
Funded plans in surplus:
Liabilities	(17,772)	-	(16,182)	-
Assets	20,229	2	17,909	1
Aggregate Surplus:	2,457	2	1,727	1
Irrecoverable surplus	(37)	-	-	-
Pension asset net of liabilities	2,420	2	1,727	1
Funded plans in deficit:
Liabilities	(4,657)	(32)	(4,149)	(30)
Assets	3,520	12	2,958	12
Pension liability net of assets	(1,137)	(20)	(1,191)	(18)
Unfunded plans:
Pension liability	(1,009)	(452)	(957)	(436)

^(a) A surplus is deemed recoverable to the extent that the Group can benefit economically from the surplus. Unilever assesses the maximum economic benefit available through a combination of refunds and reductions in future contributions in accordance with local legislation and individual financing arrangements with each of our funded defined benefit plans.

Reconciliation of change in assets and liabilities

Movements in assets during the year:

The group of plans within 'Rest of world' category in the tables below are not materially different with respect to their risks that would require disaggregated disclosure.

	€ million				€ million
	UK	Netherlands	Rest of world	2019 Total	UK	Netherlands	Rest of world	2018 Total
1 January	10,329	4,996	5,555	20,880	11,038	5,357	5,987	22,382
Employee contributions	-	-	17	17	-	-	17	17
Settlements	-	-	-	-	-	-	(1)	(1)
Actual return on plan assets (excluding amounts in net finance income/charge)	1,233	588	564	2,385	(459)	(303)	(346)	(1,108)
Change in asset ceiling, excluding amounts included in finance cost	-	-	(37)	(37)	-	-	-	-
Interest income	292	89	192	573	274	95	182	551
Employer contributions	94	14	293	401	95	14	274	383
Benefit payments	(455)	(165)	(588)	(1,208)	(472)	(166)	(561)	(1,199)
Currency retranslation	629	-	84	713	(147)	-	12	(135)
Others	-	-	2	2	-	(1)	(9)	(10)
31 December	12,122	5,522	6,082	23,726	10,329	4,996	5,555	20,880

Movements in liabilities during the year:

	€ million				€ million
	UK	Netherlands	Rest of world	2019 Total	UK	Netherlands	Rest of world	2018 Total
1 January	(9,739)	(4,664)	(7,351)	(21,754)	(10,255)	(4,913)	(7,775)	(22,943)
Current service cost	(104)	(4)	(108)	(216)	(109)	(4)	(107)	(220)
Special termination benefits	-	-	(5)	(5)	-	-	(16)	(16)
Past service costs including (losses)/gains on curtailments	56	-	9	65	(46)	8	(3)	(41)
Settlements	-	-	(2)	(2)	-	-	1	1
Interest cost	(276)	(82)	(245)	(603)	(254)	(87)	(235)	(576)
Actuarial gain/(loss) arising from changes in demographic assumptions	157	14	12	183	-	53	(11)	42
Actuarial gain/(loss) arising from changes in financial assumptions	(955)	(511)	(672)	(2,138)	351	84	176	611
Actuarial gain/(loss) arising from experience adjustments	(44)	(15)	47	(12)	(45)	37	26	18
Benefit payments	455	165	588	1,208	472	166	561	1,199
Currency retranslation	(551)	-	(77)	(628)	147	-	14	161
Others	-	-	(20)	(20)	-	(8)	18	10
31 December	(11,001)	(5,097)	(7,824)	(23,922)	(9,739)	(4,664)	(7,351)	(21,754)

Movements in (deficit)/surplus during the year:

	€ million				€ million
	UK	Netherlands	Rest of world	2019 Total	UK	Netherlands	Rest of world	2018 Total
1 January	590	332	(1,796)	(874)	783	444	(1,788)	(561)
Current service cost	(104)	(4)	(108)	(216)	(109)	(4)	(107)	(220)
Employee contributions	-	-	17	17	-	-	17	17
Special termination benefits	-	-	(5)	(5)	-	-	(16)	(16)
Past service costs including (losses)/gains on curtailments	56	-	9	65	(46)	8	(3)	(41)
Settlements	-	-	(2)	(2)	-	-	-	-
Actual return on plan assets (excluding amounts in net finance income/charge)	1,233	588	564	2,385	(459)	(303)	(346)	(1,108)
Interest cost	(276)	(82)	(245)	(603)	(254)	(87)	(235)	(576)
Interest income	292	89	192	573	274	95	182	551
Actuarial gain/(loss) arising from changes in demographic assumptions	157	14	12	183	-	53	(11)	42
Actuarial gain/(loss) arising from changes in financial assumptions	(955)	(511)	(672)	(2,138)	351	84	176	611
Actuarial gain/(loss) arising from experience adjustments	(44)	(15)	47	(12)	(45)	37	26	18
Employer contributions	94	14	293	401	95	14	274	383
Benefit payments	-	-	-	-	-	-	-	-
Currency retranslation	78	-	7	85	-	-	26	26
Change in asset ceiling, excluding amounts included in finance cost	-	-	(37)	(37)	-	-	-	-
Others	-	-	(18)	(18)	-	(9)	9	-
31 December	1,121	425	(1,742)	(196)	590	332	(1,796)	(874)

The actual return on plan assets during 2019 was €2,958 million, being €2,385 million of asset returns and €573 million of interest income shown in the tables above (2018: €(557) million).

Movements in irrecoverable surplus during the year:

	€ million				€ million
	UK	Netherlands	Rest of world	2019 Total	UK	Netherlands	Rest of world	2018 Total
1 January	-	-	-	-	-	-	-	-
Change in asset ceiling, excluding amounts included in finance cost	-	-	(37)	(37)	-	-	-	-
31 December	-	-	(37)	(37)	-	-	-	-

No amounts were included in finance cost in respect of irrecoverable surplus in 2019 or 2018.

The duration of the principal defined benefit plan liabilities (representing 96% of total pension liabilities and other post-employment benefit liabilities) and the split of liabilities between different categories of plan participants are:

	UK	Netherlands	Rest of world(a)	2019 Total	UK	Netherlands	Rest of world ^(a)	2018 Total
Duration (years)	18	19	13	7 to 23	17	18	12	7 to 23
Active members	14%	14%	21%	16%	12%	15%	21%	15%
Deferred members	34%	41%	17%	31%	33%	38%	16%	29%
Retired members	52%	45%	62%	53%	55%	47%	63%	56%

^(a) Rest of world numbers shown are weighted averages by liabilities.

Plan assets

The fair value of plan assets, which are reported net of fund liabilities that are not employee benefits, at the end of the reporting period for each category are as follows:

The group of plans within "Rest of world" category in the tables below are not materially different with respect to their risks that would require disaggregated disclosure.

	€ million				€ million
	31 December2019				31 December 2018
	UK	Netherlands	Rest of world	2019 Total	UK	Netherlands	Rest of world	2018 Total
Total plan assets Assets	12,122	5,522	6,105	23,749	10,329	4,996	5,542	20,867
Equities total	4,173	1,831	1,752	7,756	3,182	1,594	1,505	6,281
Europe	930	517	583	2,030	731	480	451	1,662
North America	2,312	825	707	3,844	1,723	714	682	3,119
Other	931	489	462	1,882	728	400	372	1,500
Fixed income total	5,317	2,795	3,250	11,362	4,963	2,595	2,947	10,505
Government bonds	2,711	765	1,369	4,845	2,474	769	1,253	4,496
Investment grade corporate bonds	1,120	542	1,272	2,934	984	502	1,167	2,653
Other fixed income	1,486	1,488	609	3,583	1,505	1,324	527	3,356
Private equity	325	65	6	396	363	82	2	447
Property and real estate	916	491	321	1,728	852	451	276	1,579
Hedge funds	688	-	69	757	663	-	120	783
Other	454	289	415	1,158	435	293	389	1,117
Other plans	-	-	300	300	-	-	312	312
Assets/fund (liabilities) that are not employee benefits
Derivatives	249	51	(8)	292	(129)	(19)	(9)	(157)

The fair values of the above equity and fixed income instruments are determined based on quoted market prices in active markets. The fair value of private equity, properties, derivatives and hedge funds are not based on quoted market prices in active markets. The Group uses derivatives and other instruments to hedge some of its exposure to inflation and interest rate risk - the degree of this hedging of liabilities was 55% for interest rate and 55% for inflation for the UK plan and 32% for interest rate and 20% for inflation for the Netherlands plan. Foreign currency exposures in part are also hedged by the use of forward foreign exchange contracts. Assets included in the Other category are commodities, cash and insurance contracts which are also unquoted assets.

Equity securities include Unilever securities amounting to €12 million (0.05% of total plan assets) and €12 million (0.1% of total plan assets) at 31 December 2019 and 2018 respectively. Property includes property occupied by Unilever amounting to €30 million at 31 December 2019 (2018: €28 million).

The pension assets above exclude the assets in a Special Benefits Trust amounting to €54 million (2018: €59 million) to fund pension and similar liabilities in the United States (see also note 17A on page 129).

Sensitivities

The sensitivity of the overall pension liabilities to changes in the weighted key assumptions are:

		Change in liabilities
	Change in assumption	UK	Netherlands	Total
Discount rate	Increase by 0.5%	-8%	-9%	-8%
Inflation rate	Increase by 0.5%	6%	9%	6%
Life expectancy	Increase by 1 year	5%	5%	5%
Long-term medical cost inflation ^(b)	Increase by 1.0%	0%	0%	3%

^(b) Long-term medical cost inflation only relates to post-retirement medical plans.

An equivalent decrease in each assumption would have an equal and opposite impact on liabilities.

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

Cash flow

Group cash flow in respect of pensions and similar post-employment benefits comprises company contributions paid to funded plans and benefits paid by the company in respect of unfunded plans. The table below sets out these amounts:

	€ million	€ million	€ million	€ million
	2020	2019	2018	2017
	Estimate
Company contributions to funded plans:
Defined benefit ^(a)	340	244	238	954
Defined contributions	210	193	179	195
Benefits paid by the company in respect of unfunded plans:
Defined benefit	150	157	144	151
Group cash flow in respect of pensions and similar benefits	700	594	561	1,300

^(a) Following the conclusion of the 2019 Funding valuation of the US Unicare Pension plan, the Group will contribute $100 million into the plan in 2020. Deficit contributions to the US pension plan are expected to be nil for the following few years. Following the conclusion of the 2016 triennial valuation of the UK pension fund the Group, in agreement with the trustees, decided to contribute £600 million into the fund in 2017. Following conclusion of the 2019 triennial valuation of the UK pension fund, deficit contributions to this fund are expected to be nil for the next few years.

The Group's funding policy is to periodically review the contributions made to the plans while taking account of local legislations.

4C. Share-based compensation plans

The fair value of awards at grant date is calculated using observable market price. This value is expensed over their vesting period, with a corresponding credit to equity. The expense is reviewed and adjusted to reflect changes to the level of awards expected to vest, except where this arises from a failure to meet a market condition. Any cancellations are recognised immediately in the income statement.

As at 31 December 2019 the Group had share-based compensation plans in the form of performance shares and other share awards.

The numbers in this note include those for Executive Directors shown in the Directors' Remuneration Report on pages 60 to 77 and those for key management shown in note 4A on page 97. Non-Executive Directors do not participate in any of the share-based compensation plans.

The charge in each of the last three years is shown below, and relates to equity-settled plans:

	€ million	€ million	€ million
Income statement charge	2019	2018	2017
Performance share plans	(142)	(183)	(273)
Other plans	(9)	(13)	(11)
	(151)	(196)	(284)

Performance share plans

Performance share awards are made in respect of the Management Co-Investment Plan (MCIP). Awards for the Global Share Incentive Plan (GSIP) were last made in February 2018 and will vest in February 2021. No further GSIP awards will be made. The awards of each plan will vest between 0 and 200% of grant level, subject to the level of satisfaction of performance measures (limits for Executive Directors may vary, and are detailed in the Directors' Remuneration Report on pages 60 to 77).

The MCIP allows Unilever's managers to invest up to 100% of their annual bonus (a minimum of 33% and maximum of 67% for Executive Directors) in shares in Unilever, and to receive a corresponding award of performance-related shares. The performance measures for MCIP are underlying sales growth, underlying EPS growth, return on invested capital and sustainability progress index for the Group. MCIP awards will vest after four years.

Under the GSIP, Unilever's managers received annual awards of NV and PLC shares. The performance measures for GSIP are underlying sales growth, underlying operating margin, and cumulative operating cash flow for the Group. There is an additional target based on relative total shareholder return for senior executives. GSIP awards will vest after three years.

A summary of the status of the Performance Share Plans as at 31 December 2019, 2018 and 2017 and changes during the years ended on these dates is presented below:

	2019 Number of shares	2018 Number of shares	2017 Number of shares
Outstanding at 1 January	13,634,518	13,684,747	14,818,060
Awarded	4,538,771	6,870,882	4,962,345
Vested	(6,041,011)	(5,854,388)	(4,723,861)
Forfeited	(994,477)	(1,066,723)	(1,371,797)
Outstanding at 31 December	11,137,801	13,634,518	13,684,747

Share award value information	2019	2018	2017
Fair value per share award during the year	€ 48.22	€ 42.44	€ 42.59

Additional information

At 31 December 2019 shares and options in NV or PLC totalling 11,944,106 (2018: 14,595,111) were outstanding in respect of share-based compensation plans of NV, PLC and its subsidiaries, including North American plans.

To satisfy the options and awards granted, certain NV group companies hold 12,419,009 (2018: 15,010,429) ordinary shares of NV or PLC. Shares acquired during 2019 represent 0.14% of the Group's called up share capital. The balance of shares held in connection with share plans at 31 December 2019 represented 0.47% (2018: 0.5%) of the Group's called up share capital.

The book value of €640 million (2018: €704 million) of all shares held in respect of share-based compensation plans for both NV and PLC is eliminated on consolidation by deduction from other reserves. Their market value at 31 December 2019 was €635 million (2018: €700 million).

At 31 December 2019 the exercise price of nil PLC and NV options (2018: nil) were above the market price of the shares.

Shares held to satisfy options and awards are accounted for in accordance with IAS 32 'Financial Instruments: Presentation'. All differences between the purchase price of the shares held to satisfy options and awards granted and the proceeds received for the shares, whether on exercise or lapse, are charged to reserves.

Between 31 December 2019 and 20 February 2020 (the latest practicable date for inclusion in this report), nil shares were granted, 2,848,795 shares were vested and 123,506 shares were forfeited related to the Performance Share Plans.

5. Net finance costs

Net finance costs are comprised of finance costs and finance income, including net finance costs in relation to pensions and similar obligations.

Finance income includes income on cash and cash equivalents and income on other financial assets. Finance costs include interest costs in relation to financial liabilities. This includes interest on lease liabilities which represents the unwind of the discount rate applied to lease liabilities.

Borrowing costs are recognised based on the effective interest method.

		€ million	€ million	€ million
Net finance costs	Notes	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Finance costs		(821)	(718)	(683)
Bank loans and overdrafts		(46)	(44)	(46)
Interest on bonds and other loans ^(b)		(617)	(560)	(519)
Interest on lease liabilities		(100)	(127)	(127)
Dividends paid on preference shares ^(c)		-	-	(4)
Net gain/(loss) on transactions for which hedge accounting is not applied		(58)	13	13
On foreign exchange derivatives		(321)	144	384
Exchange difference on underlying items ^(d)		263	(131)	(371)
Finance income ^(e)		224	135	157
Pensions and similar obligations	4B	(30)	(25)	(96)
Net finance costs before non-underlying items ^(f)		(627)	(608)	(622)
Premium paid on buyback of preference shares		-	-	(382)
		(627)	(608)	(1004)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) Interest on bonds and other loans includes the impact of interest rate derivatives that are part of hedge accounting relationships and the related recycling of results from the hedge accounting reserve. Includes an amount of €(6) million (2018: €(15) million) relating to unwinding of discount on deferred consideration for acquisitions and €Nil million (2018: €38 million) release of provision for interest on indirect tax cases in Brazil for which a federal tax amnesty has been applied.
^(c) Preference shares were repurchased in 2017.
^(d) 2019 includes € 40 million (2018: Nil) finance cost due to change in functional currency in group's operating entities in Zimbabwe from US dollar to RTGS dollar. For further details of derivatives for which hedge accounting is not applied, please refer to note 16C.
^(e) Includes an amount of €70 million (2018: Nil) that relates to interest on tax settlement in Brazil.
^(f) See note 3 for explanation of non-underlying items.

6. Taxation

6A. Income tax

Income tax on the profit for the year comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustments to tax payable in respect of previous years.

Current tax in the consolidated income statement will differ from the income tax paid in the consolidated cash flow statement primarily because of deferred tax arising on temporary differences and payment dates for income tax occurring after the balance sheet date.

Unilever is subject to taxation in the many countries in which it operates. The tax legislation of these countries differs, is often complex and is subject to interpretation by management and the government authorities. These matters of judgement give rise to the need to create provisions for tax payments that may arise in future years with respect to transactions already undertaken. Provisions are made against individual exposures and take into account the specific circumstances of each case, including the strength of technical arguments, recent case law decisions or rulings on similar issues and relevant external advice. The provision is estimated based on one of two methods, the expected value method (the sum of the probability weighted amounts in a range of possible outcomes) or the single most likely amount method, depending on which is expected to better predict the resolution of the uncertainty.

	€ million	€ million	€ million
Tax charge in income statement	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Current tax
Current year	(2,098)	(2,647)	(2,398)
Over/(under) provided in prior years	119	(10)	(21)
	(1,979)	(2,657)	(2,419)
Deferred tax
Origination and reversal of temporary differences	(255)	5	53
Changes in tax rates	(59)	(12)	604
Recognition of previously unrecognised losses brought forward	30	92	92
	(284)	85	749
	(2,263)	(2,572)	(1,670)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

The reconciliation between the computed weighted average rate of income tax expense, which is generally applicable to Unilever companies, and the actual rate of taxation charged is as follows:

	%	%	%
Reconciliation of effective tax rate	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Computed rate of tax ^(b) Differences between computed rate of tax and effective tax rate due to:	24	25	26
Incentive tax credits	(2)	(3)	(4)
Withholding tax on dividends	3	2	2
Expenses not deductible for tax purposes	1	1	1
Irrecoverable withholding tax	1	1	1
Income tax reserve adjustments - current and prior year	-	1	-
Transfer to/(from) unrecognised deferred tax assets	(2)	-	1
Others	1	(1)	(1)
Underlying effective tax rate	26	26	26
Non-underlying items within operating profit ^(c)	-	(1)	1
Premium paid on Buyback of preference shares ^(c)	-	-	1
Impact of US tax reform ^(c)	-	-	(7)
Impact of Spreads disposal ^(c)	-	(4)	-
Taxes related to the reorganisation of our European business ^(c)	2	-	-
Effective tax rate	28	21	21

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) The computed tax rate used is the average of the standard rate of tax applicable in the countries in which Unilever operates, weighted by the amount of underlying profit before taxation generated in each of those countries. For this reason, the rate may vary from year to year according to the mix of profit and related tax rates.
^(c) See note 3 for explanation of non-underlying items.

Our tax rate is reduced by incentive tax credits, the benefit from preferential tax regimes that have been legislated by the countries and provinces concerned in order to promote economic development and investment. The tax rate is increased by business expenses which are not deductible for tax, such as entertainment costs and some interest expense and by irrecoverable withholding taxes on dividends paid by subsidiary companies and on other cross-border payments such as royalties and service fees, which cannot be offset against other taxes due. Uncertain tax provisions including the related interest and penalties amounted to €787 million (2018: €716 million). Whilst the potential outcomes for the tax matters giving rise to this provision are highly variable our expectation is that there will be no material change to any of the amounts provided for in the 12 months from 31 December 2019. In 2018 the effective tax rate was reduced by the impact of the spreads disposals where a significant part of the disposals benefited from the participation exemption in the Netherlands.

The Group's future tax charge and effective tax rate could be affected by several factors, including changes in tax laws and their interpretation and still to be determined tax reform proposals in the EU, Switzerland and the continuing OECD international tax reform work, as well as the impact of acquisitions, disposals and any restructuring of our businesses.

In September, India announced a change in tax legislation backdated to 1 April 2019. The favourable impact for Unilever of a reduction in the tax rate to 25.17% was partially offset by the reduction in various tax incentives.

6B. Deferred tax

Deferred tax is recognised using the liability method on taxable temporary differences between the tax base and the accounting base of items included in the balance sheet of the Group. Certain temporary differences are not provided for as follows:

•	goodwill not deductible for tax purposes;
•	the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and
•	differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, at the year end.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

	€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Movements in 2019 and 2018	As at 1 January 2019	Income statement	Other	As at 31 December 2019	As at 1 January 2018 (Restated) ^(a)	Income statement (Restated) ^(a)	Other (Restated) ^(a)	As at 31 December 2018 (Restated) ^(a)
Pensions and similar obligations	404	(81)	(51)	272	316	(26)	114	404
Provisions and accruals	821	(73)	8	756	653	193	(25)	821
Goodwill and intangible assets	(1,911)	(31)	(154)	(2,096)	(1,652)	(154)	(105)	(1,911)
Accelerated tax depreciation	(679)	12	(18)	(685)	(679)	5	(5)	(679)
Tax losses	130	63	(9)	184	130	11	(11)	130
Fair value gains	155	(200)	(5)	(50)	100	58	(3)	155
Fair value losses	22	(2)	(5)	15	24	(2)	-	22
Share-based payments	175	(39)	20	156	194	(14)	(5)	175
Other	77	73	11	161	86	11	(20)	77
Lease liability	428	(113)	4	319	441	2	(15)	428
Right of use asset	(370)	107	(6)	(269)	(383)	1	12	(370)
	(748)	(284)	(205)	(1,237)	(770)	85	(63)	(748)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

At the balance sheet date, the Group had unused tax losses of €4,790 million (2018: €5,346 million) and tax credits amounting to €524 million (2018: €570 million) available for offset against future taxable profits. Deferred tax assets have not been recognised in respect of unused tax losses of €4,272 million (2018: €4,914 million) and tax credits of €497 million (2018: €570 million), as it is not probable that there will be future taxable profits within the entities against which the losses can be utilised. Of these losses €4,108 million (2018: €4,752 million) have expiry dates, the majority being corporate income tax losses in the Netherlands which expire between now and 2026.

Other deductible temporary differences of €48 million (2018: €48 million) have not been recognised as a deferred tax asset. There is no expiry date for these differences.

At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which deferred tax liabilities have not been recognised was €2,476 million (2018: €2,681 million). No liability has been recognised in respect of these differences because the Group is in a position to control the timing of the reversal of the temporary differences, and it is probable that such differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The following amounts, determined after appropriate offsetting, are shown in the consolidated balance sheet:

	€ million	€ million	€ million	€ million	€ million	€ million
Deferred tax assets and liabilities	Assets 2019	Assets 2018 (Restated) ^(a)	Liabilities 2019	Liabilities 2018 (Restated) ^(a)	Total 2019	Total 2018 (Restated) ^(a)
Pensions and similar obligations	402	334	(130)	70	272	404
Provisions and accruals	495	578	261	243	756	821
Goodwill and intangible assets	248	41	(2,344)	(1,952)	(2,096)	(1,911)
Accelerated tax depreciation	(67)	(64)	(618)	(615)	(685)	(679)
Tax losses	153	126	31	4	184	130
Fair value gains	(14)	12	(36)	143	(50)	155
Fair value losses	-	2	15	20	15	22
Share-based payments	31	59	125	116	156	175
Other	60	29	101	48	161	77
Lease liability	170	245	149	183	319	428
Right of use asset	(142)	(210)	(127)	(160)	(269)	(370)
	1,336	1,152	(2,573)	(1,900)	(1,237)	(748)
Of which deferred tax to be recovered/(settled) after more than 12 months	1,030	856	(2,681)	(2,027)	(1,651)	(1,171)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

6C. Tax on items recognised in equity or other comprehensive income

Income tax is recognised in equity or other comprehensive income for items recognised directly in equity or other comprehensive income.

Tax effects directly recognised in equity or other comprehensive income were as follows:

	€ million	€ million	€ million	€ million	€ million	€ million
Movements in 2019 and 2018	Before tax 2019	Tax (charge)/ credit 2019	After tax 2019	Before tax 2018 (Restated) ^(a)	Tax (charge)/credit 2018 (Restated) ^(a)	After tax 2018 (Restated) ^(a)
Gains/(losses) on:
Equity instruments at fair value through other comprehensive income	35	(6)	29	51	-	51
Cash flow hedges	198	(22)	176	(70)	15	(55)
Remeasurements of defined benefit pension plans	381	(28)	353	(437)	109	(328)
Currency retranslation gains/(losses) ^(a)	6	(21)	(15)	(847)	8	(839)
	620	(77)	543	(1,303)	132	(1,171)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

7. 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 shares.

In calculating diluted earnings per share and underlying earnings per share, a number of adjustments are made to the number of shares, principally, the exercise of share options by employees.

Underlying earnings per share is calculated as underlying profit attributable to shareholders' equity divided by the diluted combined average number of share units. In calculating underlying profit attributable to shareholders' equity, net profit attributable to shareholders' equity is adjusted to eliminate the post-tax impact of non-underlying items in operating profit and any other significant unusual items within net profit but not operating profit.

Earnings per share for total operations for the 12 months were as follows:

	€	€	€
	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Basic earnings per share	2.15	3.49	2.15
Diluted earnings per share	2.14	3.48	2.14
Underlying earnings per share	2.55	2.35	2.23

	Millions of share units
Calculation of average number of share units	2019	2018	2017
Average number of shares: NV	1,598.0	1,714.7	1,714.7
PLC	1,175.5	1,264.0	1,310.2
Less treasury shares held by employee share trusts and companies	(157.0)	(295.4)	(223.3)
Combined average number of share units - used for basic earnings per share	2,616.5	2,683.3	2,801.6
Add dilutive effect of share-based compensation plans	10.2	11.5	12.4
Diluted combined average number of share units - used for diluted and underlying earnings per share	2,626.7	2,694.8	2,814.0

		€ million	€ million	€ million
Calculation of earnings	Notes	2019	2018 (Restated) ^(a)	2017 (Restated) ^(a)
Net profit		6,026	9,788	6,456
Non-controlling interests		(401)	(419)	(433)
Net profit attributable to shareholders' equity - used for basic and diluted earnings per share		5,625	9,369	6,023
Post tax impact of non-underlying items	3	1,063	(3,024)	262
Underlying profit attributable to shareholders' equity - used for underlying earnings per share		6,688	6,345	6,285

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

8. Dividends on ordinary capital

Dividends are recognised on the date that the shareholder's right to receive payment is established. This is generally the date when the dividend is declared.

	€million	€ million	€ million
Dividends on ordinary capital during the year	2019	2018	2017
NV dividends	(2,352)	(2,262)	(2,154)
PLC dividends	(1,871)	(1,819)	(1,762)
	(4,223)	(4,081)	(3,916)

Four quarterly interim dividends were declared and paid during 2019 totalling € 1.62 (2018: € 1.52) per NV ordinary share and £ 1.42 (2018: £1.33) per PLC ordinary share.

A final quarterly dividend of €1,073 million (2018: €1,003 million) was declared on 30 January 2020, to be paid in March 2020; €0.41 per NV ordinary share (2018: €0.39) and £0.35 per PLC ordinary share (2018: £0.34). Total dividends declared in relation to 2019 were €1.64 (2018: €1.55) per NV ordinary share and £1.43 (2018: £1.35) per PLC ordinary share.

9. Goodwill and intangible assets

Goodwill

Goodwill is initially recognised based on the accounting policy for business combinations (see note 21). Goodwill is subsequently measured at cost less amounts provided for impairment.

Goodwill acquired in a business combination is assessed to determine whether new cash generating units are created, and if not, is allocated to the Group's CGUs, or groups of CGUs, that are expected to benefit from the synergies of the combination. These might not always be the same as the CGUs that include the assets and liabilities of the acquired business. Each unit or group of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purposes, and is not larger than an operating segment.

In 2019, the existing nine cash generating units (CGUs) based on the three geographical areas and three divisions are supplemented by a new health and well being CGU which is made up of recently acquired OLLY Nutrition business.

Intangible assets

Separately purchased intangible assets are initially measured at cost, being the purchase price as at the date of acquisition. On acquisition of new interests in group companies, Unilever recognises any specifically identifiable intangible assets separately from goodwill. These intangible assets are initially measured at fair value as at the date of acquisition.

Expenditure to support development of internally-produced intangible assets is recognised in profit or loss as incurred.

Indefinite-life intangibles mainly comprise trademarks and brands, for which there is no foreseeable limit to the period over which they are expected to generate net cash inflows. These are considered to have an indefinite life, given the strength and durability of our brands and the level of marketing support. These assets are not amortised but are subject to a review for impairment annually, or more frequently if events or circumstances indicate this is necessary. Any impairment is charged to the income statement as it arises.

Finite-life intangible assets mainly comprise software, patented and non-patented technology, know-how and customer lists. These assets are amortised on a straight-line basis in the income statement over the period of their expected useful lives, or the period of legal rights if shorter. None of the amortisation periods exceeds ten years.

	€ million	€ million	€ million	€ million	€ million
			Finite-life intangible assets
Movements during 2019	Goodwill	Indefinite-life Intangible assets	Software	Other	Total
Cost
1 January 2019	18,502	11,247	2,689	1,103	33,541
Additions through business combinations	444	726	-	50	1,220
Disposal of businesses	(2)	(1)	-	(5)	(8)
Reclassification to held for sale	(2)	-	-	-	(2)
Additions	-	-	205	3	208
Disposals	-	-	(11)	(2)	(13)
Currency retranslation	313	150	108	12	583
Hyperinflationary adjustment	(9)	(1)	-	-	(10)
31 December 2019	19,246	12,121	2,991	1,161	35,519
Accumulated amortisation and impairment
1 January 2019	(1,161)	(212)	(1,927)	(748)	(4,048)
Amortisation/impairment for the year	(18)	-	(296)	(56)	(370)
Disposals of group companies	-	-	-	5	5
Disposals	-	-	5	1	6
Currency retranslation	-	-	(74)	(9)	(83)
31 December 2019	(1,179)	(212)	(2,292)	(807)	(4,490)
Net book value 31 December 2019(b)	18,067	11,909	699	354	31,029

	€ million	€ million	€ million	€ million	€ million
			Finite-life intangible assets
Movements during 2018	Goodwill	Indefinite-life intangible assets	Software	Other	Total
Cost
1 January 2018	18,042	10,275	2,499	1,090	31,906
Hyperinflation restatement to 1 January 2018	244	25	3	-	272
Additions through business combinations	470	825	-	12	1,307
Disposal of businesses	(1)	(1)	-	-	(2)
Reclassification to held for sale ^(a)	(227)	(55)	(1)	-	(283)
Reclassification from held for sale	-	9	-	-	9
Additions	-	-	201	2	203
Disposals	-	-	-	(15)	(15)
Currency retranslation	(151)	156	(15)	14	4
Hyperinflationary adjustment	125	13	2	-	140
31 December 2018	18,502	11,247	2,689	1,103	33,541
Accumulated amortisation and impairment
1 January 2018	(1,161)	(14)	(1,637)	(693)	(3,505)
Hyperinflation restatement to 1 January 2018	-	-	(3)	-	(3)
Amortisation/impairment for the year	-	(198)	(297)	(61)	(556)
Disposals	-	-	-	14	14
Currency retranslation	-	-	12	(8)	4
Hyperinflationary adjustment	-	-	(2)	-	(2)
31 December 2018	(1,161)	(212)	(1,927)	(748)	(4,048)
Net book value 31 December 2018 ^(b)	17,341	11,035	762	355	29,493

^(a) In 2018, Goodwill and intangibles amounting to €283 million was reclassified as held for sale in relation to the Spreads and Alsa baking and dessert businesses.
^(b) Within the indefinite-life intangible assets there are three brands that have a significant carrying value: Knorr € 1,816 milion (2018: € 1,789 million), Carver Korea € 1,509 million (2018: € 1,534 million) and Hellmann's € 1,220 million (2018: € 1,195 million).

Impairment

We have tested goodwill and indefinite-life intangible assets for impairment. No impairment was identified, except for goodwill relating to a local business classified to held for sale. A €18 million charge has been recognised in non-underlying items within the line 'impairments' (See note 3 on page 96).

Significant CGUs

The goodwill and indefinite-life intangible assets held in the CGUs relating to Foods & Refreshment Europe, Foods & Refreshment The Americas, Beauty & Personal Care The Americas and Beauty & Personal Care Asia/AMET/RUB are considered significant within the total carrying amounts of goodwill and indefinite-life intangible assets at 31 December 2019 in terms of size, headroom and sensitivity to assumptions used.

	2019 CGUs		2018 CGUs
	€ billion	€ billion	€ billion	€ billion
	Goodwill	Indefinite-life intangible assets	Goodwill	Indefinite-life intangible assets
Foods & Refreshment Europe	4.1	1.7	3.9	1.6
Foods & Refreshment The Americas	4.0	2.1	3.9	2.1
Beauty & Personal Care The Americas	4.3	3.1	4.0	2.8
Beauty & Personal Care Asia/AMET/RUB	1.7	2.0	1.7	2.0
Total significant CGUs	14.1	8.9	13.5	8.5
Others ^(a)	4.0	3.0	3.8	2.5
Total CGUs	18.1	11.9	17.3	11.0

^(a) Included within others are goodwill and intangible assets that are allocated to multiple cash generating units which are insignificant.

The growth rates and margins for the significant CGUs are as below:

For the year 2019	Foods & Refreshment Europe	Foods & Refreshment The Americas	Beauty & Personal Care The Americas	Beauty & Personal Care Asia/AMET/RUB
Longer-term sustainable growth rates	1.1%	1.7%	1.7%	3.9%
Average near-term nominal growth rates	1.2%	(1.2)%	1.6%	5.3%
Average operating margins	16%	15%	21%	22%

For the year 2018	Foods & Refreshment Europe	Foods & Refreshment The Americas	Beauty & Personal Care The Americas	Beauty & Personal Care Asia/AMET/RUB
Longer-term sustainable growth rates	1.2%	1.6%	1.6%	3.8%
Average near-term nominal growth rates	0.0%	0.7%	2.8%	3.9%
Average operating margins	16%	15%	20%	22%

Key assumptions

The key assumptions used in our impairment testing are as follows:

• Value in use has been calculated as the present value of projected cash flows.

• The projections cover a period of five years, as we believe this to be the most appropriate timescale over which to review and consider annual performances before applying a fixed terminal value multiple to the final year cash flows.

• The growth rates and margins used to estimate future performance are based on the conservative end of the range of estimates from past performance, our annual forecast and three year strategic plan extended to year four and five.

• The long-term sustainable growth rates are determined as the lower of our three-year average market growth projection and World Bank's three-year average GDP growth forecast for our markets.

• A pre-tax discount rate of 7.4% (2018: 7.4%) was used. The discount rate was based on the weighted average cost of capital of the Group, adjusted with a risk-premium.

We have performed sensitivity analyses around the base assumptions. There are no reasonably possible changes in a key assumption that would cause the carrying amount to exceed the recoverable amount.

10. Property, plant and equipment

The Group's property, plant and equipment is comprised of owned assets (note 10A) and leased assets (note 10B). Property, plant and equipment is measured at cost including eligible borrowing costs less depreciation and accumulated impairment losses.

Property, plant and equipment is subject to review for impairment if triggering events or circumstances indicate that this is necessary. If an indication of impairment exists, the asset's or cash generating unit's recoverable amount is estimated and any impairment loss is charged to the income statement as it arises.

Owned assets

Owned assets are initially measured at historical cost. Depreciation is provided on a straight-line basis over the expected average useful lives of the assets. Residual values are reviewed at least annually. Estimated useful lives by major class of assets are as follows:

• Freehold buildings (no depreciation on freehold land)	40 years
• Leasehold land and buildings	40 years (or life of lease if less)
• Plant and equipment	2-20 years

Leased assets

The cost of a leased asset is measured as the lease liability at inception of the lease contract and other direct costs less any incentives granted by the lessor. The Group has not capitalised leases which are less than 12 months or leases of low value assets. These mainly relate to IT equipment, office equipment, furniture and fitting and other peripheral items. When a lease liability is remeasured, the related lease asset is adjusted by the same amount.

Depreciation is provided on a straight-line basis from the commencement date of the lease to the end of the lease term.

		€ million	€ million
Property, plant and equipment		2019	2018
Owned assets	10A	10,249	10,214
Leased assets	10B	1,813	1,874
Total		12,062	12,088

10A. Owned assets

	€ million	€ million	€ million
Movements during 2019	Land and buildings	Plant and equipment	Total
Cost
1 January 2019	4,386	15,216	19,602
Additions through business combinations	7	28	35
Additions	175	1,141	1,316
Disposals	(72)	(649)	(721)
Hypeinflationary adjustment	(3)	(28)	(31)
Reclassification as held for sale	(63)	(116)	(179)
Currency retranslation	68	252	320
31 December 2019	4,498	15,844	20,342
Accumulated depreciation
1 January 2019	(1,390)	(7,998)	(9,388)
Depreciation charge for the year	(134)	(1,022)	(1,156)
Disposals	28	456	484
Hyperinflationary adjustment	5	30	35
Reclassification as held for sale	38	81	119
Currency retranslation	(26)	(161)	(187)
31 December 2019	(1,479)	(8,614)	(10,093)
Net book value 31 December 2019 ^(a)	3,019	7,230	10,249
Includes capital expenditures for assets under construction	78	872	950

The Group has commitments to purchase property, plant and equipment of €264 million (2018: €324 million).

	€ million	€ million	€ million
Movements during 2018 (Restated) ^(b)	Land and buildings	Plant and equipment	Total
Cost
1 January 2018	4,256	14,811	19,067
Hyperinflation restatement to 1 January 2018	37	182	219
Additions through business combinations	11	31	42
Additions	236	1,087	1,323
Disposals	(97)	(585)	(682)
Hyperinflationary adjustment	49	93	142
Reclassification as held for sale	(17)	(54)	(71)
Currency retranslation	(89)	(349)	(438)
31 December 2018	4,386	15,216	19,602
Accumulated depreciation
1 January 2018	(1,345)	(7,450)	(8,795)
Hyperinflation restatement to 1 January 2018	(10)	(106)	(116)
Depreciation charge for the year	(115)	(1,062)	(1,177)
Disposals	63	514	577
Hyperinflationary adjustment	(7)	(53)	(60)
Reclassification as held for sale	10	33	43
Currency retranslation	14	126	140
31 December 2018	(1,390)	(7,998)	(9,388)
Net book value 31 December 2018 ^(a)	2,996	7,218	10,214
Includes capital expenditures for assets under construction	130	956	1,086

^(a) Includes €319 million (2018: €302 million) of freehold land.
^(b) Restated following adoption of IFRS 16. Finance leases previously capitalised as property, plant, and equipment are now included within leased assets, refer to note 10B.

10B. Leased assets

	€ million	€ million	€ million
Movements during 2019	Land and buildings	Plant and equipment	Total
Cost
1 January 2019	2,770	816	3,586
Additions	278	174	452
Disposals	(240)	(180)	(420)
Hyperinflationary adjustment	23	-	23
Currency retranslation	43	17	60
31 December 2019	2,874	827	3,701
Accumulated depreciation
1 January 2019	(1,241)	(471)	(1,712)
Depreciation charge for the year	(297)	(159)	(456)
Disposals	154	150	304
Hyperinflationary adjustment	9	-	9
Currency retranslation	(22)	(11)	(33)
31 December 2019	(1,397)	(491)	(1,888)
Net book value 31 December 2019	1,477	336	1,813

	€ million	€ million	€ million
Movements during 2018 (Restated) ^(a)	Land and buildings	Plant and equipment	Total
Cost
1 January 2018	2,880	799	3,679
Additions	250	171	421
Disposals	(310)	(141)	(451)
Currency retranslation	(50)	(13)	(63)
31 December 2018	2,770	816	3,586
Accumulated depreciation
1 January 2018	(1,275)	(407)	(1,682)
Depreciation charge for the year	(300)	(183)	(483)
Disposals	307	114	421
Currency retranslation	27	5	32
31 December 2018	(1,241)	(471)	(1,712)
Net book value 31 December 2018	1,529	345	1,874

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Our leases mainly comprise land and buildings and Plant and equipment. The Group leases land and buildings for manufacturing, warehouse facilities and office space and also sublease some of the properties under operating leases. The Group has leases for vehicles and equipment.

The Group has recognised in the income statement an expense of €97 million (2018: €95 million) for short term leases and €79 million (2018: €70 million) on leases for low-value assets.

During the year the Group recognised an income of €25 million (2018: €22 million) in respect of sublet properties

Cash flows: The total cash outflows for leases was €534 million (2018: €575 million).

Lease liabilities: Lease liabilities are shown in note 15 on pages 116 and 119.

11. Other non-current assets

Joint ventures are undertakings in which the Group has an interest and which are jointly controlled by the Group and one or more other parties. Associates are undertakings where the Group has an investment in which it does not have control or joint control but can exercise significant influence.

Interests in joint ventures and associates are accounted for using the equity method and are stated in the consolidated balance sheet at cost, adjusted for the movement in the Group's share of their net assets and liabilities. The Group's share of the profit or loss after tax of joint ventures and associates is included in the Group's consolidated profit before taxation.

Where the Group's share of losses exceeds its interest in the equity accounted investee, the carrying amount of the investment is reduced to zero and the recognition of further losses is discontinued, except to the extent that the Group has an obligation to make payments on behalf of the investee.

Biological assets are measured at fair value less costs to sell with any changes recognised in the income statement.

	€ million	€ million
	2019	2018 Restated ^(a)
Interest in net assets of joint ventures	35	14
Interest in net assets of associates	37	40
Long-term trade and other receivables ^(b)	380	307
Fair value of biological assets	17	18
Other non-current assets ^(c)	184	151
	653	530

^(a) Restated following adoption of IFRS 16. Operating lease prepayments for land that were previously reported within other non-current assets, have now been included within leased assets. See note 1 and note 24 for further details.
^(b) Mainly relates to indirect tax receivables where we do not have the contractual right to receive payment within 12 months.
^(c) Mainly relates to tax assets.

	€ million	€ million
Movements during 2019 and 2018	2019	2018
Joint ventures ^(a)
1 January	14	32
Additions	-	5
Dividends received/reductions ^(b)	(158)	(216)
Share of net profit/(loss)	179	190
Currency retranslation	-	3
31 December	35	14
Associates ^(c)
1 January	40	44
Additions	1	3
Dividend received/reductions	-	-
Share of net profit/(loss)	(3)	(5)
Currency retranslation	(1)	(2)
31 December	37	40

^(a) Our principal joint ventures are Unilever FIMA LDA for Portugal, the Pepsi/Lipton Partnership for the US and Pepsi Lipton International for the rest of the world.
^(b) 2018 includes a capital reduction in joint venture of Unilever FIMA LDA of €64 million.
^(c) Associates as at 31 December 2019 primarily comprise our investments in Langholm Capital Partners.

The joint ventures and associates have no contingent liabilities to which the Group is exposed, and the Group has no contingent liabilities in relation to its interests in the joint ventures and associates. The Group has no outstanding capital commitments to joint ventures. Outstanding balances with joint ventures and associates are shown in note 23 on page 137.

12. Inventories

Inventories are valued at the lower of weighted average cost and net realisable value. Cost comprises direct costs and, where appropriate, a proportion of attributable production overheads. Net realisable value is the estimated selling price less the estimated costs necessary to make the sale.

	€ million	€ million
Inventories	2019	2018
Raw materials and consumables	1,399	1,454
Finished goods and goods for resale	3,053	3,052
Total inventories	4,452	4,506
Provision for inventories	(288)	(205)
	4,164	4,301

	€ million	€ million
Provisions for inventories	2019	2018
1 January	205	194
Charge to income statement	153	92
Reduction/releases	(71)	(72)
Currency translations	-	(7)
Others ^(a)	1	(2)
31 December	288	205

^(a) Others mainly include the amount towards the acquisition/ disposal of business and transfers.

Inventories with a value of €159 million (2018: €124 million) are carried at net realisable value, this being lower than cost. During 2019 a total expense of €363 million (2018: €227 million) was recognised in the income statement for inventory write downs and losses.

13. Trade and other current receivables

Trade and other current receivables are initially recognised at fair value plus any directly attributable transaction costs. Subsequently these assets are held at amortised cost, using the effective interest method and net of any impairment losses. Discounts payable to customers are shown as a reduction in trade receivables when there is a legal right and intent to settle them on a net basis.

We do not consider the fair values of trade and other current receivables to be significantly different from their carrying values. Concentrations of credit risk with respect to trade receivables are limited, due to the Group's customer base being large and diverse. Our historical experience of collecting receivables, supported by the level of default, is that credit risk is low across territories and so trade receivables are considered to be a single class of financial assets. Impairment for trade receivables are calculated for specific receivables with known or anticipated issues affecting the likelihood of recovery and for balances past due with a probability of default based on historical data as well as relevant forward-looking information.

	€ million	€ million
Trade and other current receivables	2019	2018 Restated ^(a)
Due within one year
Trade receivables(b)	4,916	4,350
Prepayments and accrued income	579	690
Other receivables	1,200	1,442
	6,695	6,482

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) 2019 includes €698 million (2018: €677 million) due from KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa). Unilever will provide services to KKR including IT infrastructure, bookkeeping, payroll, marketing and co-packing for up to two years from completion of the disposal and KKR pays Unilever for materials sourced on its behalf. See also trade payables on page 115.

Included within trade receivables are discounts due to our customers of €2,423 million (2018: €3,062 million). The decrease from 2018 is primarily driven by differences in the timing of promotional activities and the settlement of customer invoices compared to last year. Other receivables comprise financial assets of €208 million (2018: €299 million), and non-financial assets of €992 million (2018: €1,142million). Financial assets include supplier and customer deposits, employee advances and certain derivatives. Non-financial assets mainly consist of reclaimable sales tax of €584 million (2018: €690 million)

	€ million	€ million
Ageing of trade receivables	2019	2018
Not overdue	3,856	3,440
Past due less than three months	827	747
Past due more than three months but less than six months	186	132
Past due more than six months but less than one year	94	74
Past due more than one year	164	145
Total trade receivables	5,127	4,538
Impairment provision for trade receivables	(211)	(188)
	4,916	4,350

The total impairment provision includes €211 million (2018: €188 million) for current trade receivables, €26 million (2018: €13 million) for other current receivables and €84 million (2018: €13 million) for non-current trade and other receivables.

	€ million	€ million
Impairment provision for total trade and other receivables	2019	2018
1 January	214	184
Charge to income statement	79	65
Reduction/releases	(54)	(29)
Reclassifications ^(a)	86	-
Currency translations	(4)	(6)
31 December	321	214

^(a) Includes an amount transferred from provisions relating to Brazil indirect taxes. See note 19.

14. Trade payables and other liabilities

Trade payables

Trade payables are initially recognised at fair value less any directly attributable transaction costs. Trade payables are subsequently measured at amortised cost, using the effective interest method.

Other liabilities

Other liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent measurement depends on the type of liability:

• Accruals are subsequently measured at amortised cost, using the effective interest method.

• Social security and sundry taxes are subsequently measured at amortised cost, using the effective interest method.

• Deferred consideration is subsequently measured at fair value with changes in the income statement as explained below.

• Others are subsequently measured either at amortised cost, using the effective interest method or at fair value, with changes being recognised in the income statement.

Deferred Consideration

Deferred consideration represents any payments to the sellers of a business that occur after the acquisition date. These typically comprise contingent consideration and fixed deferred consideration:

• Fixed deferred consideration is a payment with a due date after acquisition that is not dependent on future conditions.

• Contingent consideration is a payment which is dependent on certain conditions being met in the future and is often variable.

All deferred consideration is initially recognised at fair value as at the acquisition date, which includes a present value discount. Subsequently, deferred consideration is measured to reflect the unwinding of discount on the liability, with changes recognised in finance cost within the income statement. In the balance sheet it is remeasured to reflect the latest estimate of the achievement of the conditions on which the consideration is based; changes in value otherthan the discount unwind are recognised as acquisition and disposal-related costs within non-underlying items in the income statement.

We do not consider the fair values of trade payables and other liabilities to be significantly different from their carrying values.

	€ million	€ million
Trade payables and other liabilities	2019	2018
Current: due within one year
Trade payables ^(a)	9,190	9,121
Accruals	4,153	3,724
Social security and sundry taxes	507	498
Deferred consideration	39	14
Others	879	1,100
	14,768	14,457
Non-current: due after more than one year
Accruals	117	121
Deferred consideration	169	173
Others	53	52
	339	346
Total trade payables and other liabilities	15,107	14,803

^(a) 2019 includes €359 million (2018: €311 million) due to KKR as a result of an arrangement following the sale of the global spreads business (excluding Southern Africa). Unilever will provide certain services for up to two years from completion of the disposal and pays KKR for amounts collected on its behalf. See also trade receivables on page 114.

Included within trade payables and other liabilities are discounts due to our customers of €1,053 million (2018: €514 million). The increase from 2018 is primarily driven by differences in the timing of promotional activities and the settlement of customer invoices compared to last year.

Included within others are IT and consulting services.

Deferred Consideration

At 31 December 2019 the total balance of deferred consideration for acquisition is €208 million (2018: €187 million), which includes contingent consideration of €154 million (2018: €142 million). These contingent consideration payments are dependent on acquired businesses achieving contractually agreed financial targets (mainly relates to cumulative increases in turnover and profit before tax) and fall due up until 2024, with a maximum contractual amount of €1,140 million.

Supplier financing arrangements for trade payables

Some of our suppliers elect to factor some of their receivables from the Group with financial institutions. In some instances we provide suppliers and/or banks with visibility of invoices approved for payment, which helps them receive cash from the bank before the invoice due date, if they choose to do so. Payment dates and terms for Unilever do not vary based on whether the supplier chooses to factor their receivable. If a receivable is purchased by a third party bank, that third party bank does not benefit from additional security when compared to the security originally enjoyed by the supplier. The Group evaluates these arrangements to assess if the payable holds the characteristics of a trade payable or should be classified as a financial liability. At 31 December 2019 and 31 December 2018 all such liabilities were classified as trade payables.

15. Capital and funding

Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity, net of any tax effects.

Internal holdings

The ordinary shares numbered 1 to 2,400 (inclusive) in NV ('Special Shares') and deferred stock of PLC are held as to one half of each class by N.V. Elma - a subsidiary of NV - and one half by United Holdings Limited - a subsidiary of PLC. This capital is eliminated on consolidation.

Share-based compensation

The Group operates a number of share-based compensation plans involving options and awards of ordinary shares of NV and PLC. Full details of these plans are given in note 4C on pages 103 to 104.

Other reserves

Other reserves include the fair value reserve, the foreign currency translation reserve, the capital redemption reserve and treasury shares.

Shares held by employee share trusts and group companies

Certain PLC trusts, NV and group companies purchase and hold NV and PLC shares to satisfy performance shares granted, share options granted and other share awards (see note 4C). The assets and liabilities of these trusts and shares held by group companies are included in the consolidated financial statements. The book value of shares held is deducted from other reserves, and trusts' borrowings are included in the Group's liabilities. The costs of the trusts are included in the results of the Group. These shares are excluded from the calculation of earnings per share.

Financial liabilities

Financial liabilities are initially recognised at fair value, less any directly related transaction costs. When bonds are designated as being part of a fair value hedge relationship in those cases bonds are carried at amortised cost, adjusted for the fair value of the risk being hedged, with changes in value shown in profit and loss. Other financial liabilities, excluding derivatives, are subsequently carried at amortised cost, with the exception of:

• financial liabilities which the Group has elected to measure at fair value through profit or loss;

• derivative financial liabilities - see note 16 on page 121; and

• contingent consideration recognised by an acquirer in a business combination to which IFRS 3 applies. Such contingent consideration is subsequently measured at fair value through profit or loss.

Lease liabilities

Lease liabilities are initially measured at the present value of the lease payments that are not yet paid at the start of the lease term. This is discounted using an appropriate borrowing rate determined by the Group, where none is readily available in the lease contract.

The lease liability is subsequently reduced by cash payments and increased by interest costs. The lease liability is remeasured when the Group assesses that there will be a change in the amount expected to be paid during the lease term.

The Group's Treasury activities are designed to:

• maintain a competitive balance sheet in line with at least A/A2 rating (see below);

• secure funding at lowest costs for the Group's operations, M&A activity and external dividend payments (see below);

• protect the Group's financial results and position from financial risks (see note 16);

• maintain market risks within acceptable parameters, while optimising returns (see note 16); and

• protect the Group's financial investments, while maximising returns (see note 17)

The Treasury department provides central deposit taking, funding and foreign exchange management services for the Group's operations. The department is governed by standards and processes which are approved by Unilever Leadership Executive (ULE). In addition to guidelines and exposure limits, a system of authorities and extensive independent reporting covers all major areas of activity. Performance is monitored closely by senior management. Reviews are undertaken periodically by corporate audit.

Key instruments used by the treasury department are:

• short-term and long-term borrowings;

• cash and cash equivalents; and

• plain vanilla derivatives, including cross currency interest rate swaps and foreign exchange contracts.

The Treasury department maintains a list of approved financial instruments. The use of any new instrument must be approved by the Chief Financial Officer. The use of leveraged instruments is not permitted.

Unilever considers the following components of its balance sheet to be managed capital:

• total equity - retained profit, other reserves, share capital, share premium, non-controlling interests (notes 15A and 15B);

• short-term debt - current financial liabilities (note 15C); and

• long-term debt - non-current financial liabilities (note 15C).

The Group manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to our shareholders through an appropriate balance of debt and equity. The capital structure of the Group is based on management's judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets.

Our current long-term credit rating is A+/A1 and our short-term credit rating is A1/P1. We aim to maintain a competitive balance sheet which we consider to be the equivalent of a credit rating of at least A/A2 in the long term. This provides us with:

• appropriate access to the debt and equity markets;

• sufficient flexibility for acquisitions;

• sufficient resilience against economic and financial uncertainty while ensuring ample liquidity; and

• optimal weighted average cost of capital, given the above constraints.

Unilever monitors the qualitative and quantitative factors utilised by the rating agencies. This information is publicly available and is updated by the credit rating agencies on a regular basis.

15A. Share capital

	Authorised ^(a) 2019	Issued, called up and fully paid ^(b) 2019	Authorised ^(a) 2018	Issued, called up and fully paid ^(b) 2018
Unilever N.V.	€ million	€ million	€ million	€ million
NV ordinary shares of € 0.16 each	480	274	480	274
NV ordinary shares of €428.57 each (shares numbered 1 to 2,400 - 'Special Shares')	1	1	1	1
Internal holdings eliminated on consolidation (€ 428.57 shares)	-	(1)	-	(1)
Cancellation of treasury shares ^(c)	-	(41)	-	-
	481	233	481	274

Unilever PLC	£ million	£ million
PLC ordinary shares of 3 1/9p each	37.0	40.8
PLC deferred stock of £1 each	0.1	0.1
Internal holding eliminated on consolidation (£1 stock)	(0.1)	(0.1)
Cancellation of treasury shares ^(c)	(0.6)	(3.8)
	36.4	37.0

	€ million	€ million
Euro equivalent in millions (at £1.00 = €5.143) ^(d)	187	190

Unilever Group	€ million	€ million
Ordinary share capital of NV	233	274
Ordinary share capital of PLC	187	190
	420	464

^(a) At 31 December 2019 Unilever N.V. had 3,000,000,000 (2018: 3,000,000,000) authorised ordinary shares. The requirement for a UK company to have an authorised share capital was abolished by the UK Companies Act 2006. In May 2010 Unilever PLC shareholders approved new Articles of Association to reflect this.
^(b) At 31 December 2019 the following quantities of shares were in issue: 1,460,714,804 of NV ordinary shares; 2,400 of NV Special Shares; 1,168,530,650 of PLC ordinary shares and 100,000 of PLC deferred stock. At 31 December 2018, 1,714,727,700 of NV ordinary shares; 2,400 of NV Special Shares; 1,187,191,284 of PLC ordinary shares and 100,000 of PLC deferred stock were in issue.
^(c) At 31 December 2019 254,012,896 of NV ordinary shares and 18,660,634 (2018: 122,965,077) of PLC ordinary shares that were repurchased as part of the share buyback programme in 2018 and prior years, were cancelled.
^(d) Conversion rate for PLC ordinary shares nominal value to euros is £ 1 = € 5.143 (which is calculated by dividing the nominal value of NV ordinary shares by the nominal value of PLC ordinary shares).

For information on the rights of shareholders of NV and PLC and the operation of the Equalisation Agreement, see the Corporate Governance report on pages 47 to 53.

A nominal dividend of 6% per annum is paid on the deferred stock of PLC.

15B. Equity

Basis of consolidation

Unilever is the majority shareholder of all material subsidiaries and has control in all cases. Information in relation to significant subsidiaries is provided on page 142.

Subsidiaries with significant non-controlling interests

Unilever has one subsidiary company which has a material non-controlling interest, Hindustan Unilever Limited (HUL). Summary financial information in relation to HUL is shown below.

	€ million	€ million
HUL balance sheet as at 31 December	2019	2018 Restated ^(a)
Non-current assets	1,030	964
Current assets	1,438	1,333
Current liabilities	(1,117)	(1,156)
Non-current liabilities	(332)	(251)

HUL comprehensive income for the year ended 31 December
Turnover	4,937	4,527
Profit after tax	730	617
Total comprehensive income	740	576

	€ million	€ million
HUL cash flow for the year ended 31 December	2019	2018 Restated ^(a)
Net increase/(decrease) in cash and cash-equivalents	145	14

HUL non-controlling interest

1 January	(299)	(288)
Share of (profit)/loss for the year ended 31 December	(239)	(203)
Other comprehensive income	(6)	(4)
Dividend paid to the non-controlling interest	218	183
Currency translation	(2)	13
31 December	(328)	(299)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Analysis of other reserves

	€ million	€ million	€ million
	Total 2019	Total 2018 (Restated) ^(a)	Total 2017 (Restated) ^(a)
Fair value reserves	7	(194)	(189)
Equity instruments	123	98	-
Cash flow hedges	(116)	(292)	(236)
Available-for-sale financial assets	-	-	47
Currency retranslation of group companies - see following table	(4,712)	(4,694)	(3,879)
Adjustment on translation of PLC's ordinary capital at 3 1/9p = €0.16	(148)	(150)	(164)
Capital redemption reserve	37	32	32
Book value of treasury shares - see following table	(703)	(10,181)	(9,208)
Hedging gains/(losses) transferred to non-financial assets	103	71	-
Other ^(b)	(158)	(102)	(179)
	(5,574)	(15,218)	(13,587)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) Relates to option on purchase of subsidiary for non-controlling interest and hyperinflation adjustment arising on current year profit translated at closing exchange rate.

Unilever acquired 2,678,000 (2018: 66,202,168) NV ordinary shares and 1,076,000 (2018: 65,458,433) PLC shares through purchases on the stock exchanges during the year. These shares are held as treasury stock as a separate component of other reserves. 254,012,896 of NV and 18,660,634 of PLC ordinary shares that were acquired as a part of the share buyback programme in 2018 and prior years, were cancelled during the year.

The total number of treasury shares held at 31 December 2019 was 8,027,879 (2018: 263,349,111) NV shares and 4,391,130 (2018: 24,334,848) PLC shares and these shares were held in connection with share-based compensation plans (see note 4C on pages 103 to 104).

	€ million	€ million
Treasury shares - movements during the year	2019	2018
1 January	(10,181)	(9,208)
Repurchase of shares	-	(6,020)
Cancellation of NV and PLC shares	9,416	5,069
Other purchases and utilisations	64	(8)
Adjustment on translation of PLC's ordinary capital at 3 1/9 p = € 0.16	(2)	(14)
31 December	(703)	(10,181)

	€ million	€ million
Currency retranslation reserve - movements during the year	2019	2018 (Restated) ^(a)
1 January	(4,694)	(3,879)
Currency retranslation of group companies net assets and liabilities during the year	(341)	(821)
Movement in net investment hedges and exchange differences in net investments in foreign operations	326	77
Recycled to income statement	(3)	(71)
31 December	(4,712)	(4,694)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Statement of comprehensive income: other comprehensive income reconciliation

	€ million	€ million
Fair value gains/(losses) on financial instruments - movement during the year	2019	2018
1 January	(194)	(189)
Equity instruments	25	51
Cash flow hedges	176	(56)
31 December	7	(194)

Refer to the consolidated statement of comprehensive income on page 87, the consolidated statement of changes in equity on page 88, and note 6C on page 107.

	€ million	€ million
Remeasurement of defined benefit pension plans net of tax	2019	2018
1 January	(1,499)	(1,171)
Movement during the year	353	(328)
31 December	(1,146)	(1,499)

Refer to the consolidated statement of comprehensive income on page 87, the consolidated statement of changes in equity on page 88, note 4B from page 98 to 103 and note 6C on page 107.

	€ million	€ million
Currency retranslation gains/(losses) - movement during the year	2019	2018 (Restated) ^(a)
1 January	(5,069)	(4,230)
Currency retranslation during the year:
Other reserves	(18)	(814)
Retained profit	2	(10)
Non-controlling interest	1	(15)
31 December	(5,084)	(5,069)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

15C. Financial liabilities

	€ million	€ million	€ million	€ million	€ million	€ million
Financial liabilities ^(b)	Current 2019	Non-current 2019	Total 2019	Current 2018 (Restated) ^(a)	Non-current 2018 (Restated) ^(a)	Total 2018 (Restated) ^(a)
Bank loans and overdrafts ^(c)	390	463	853	525	289	814
Bonds and other loans	3,677	21,355	25,032	2,422	20,969	23,391
Lease liabilities	383	1,536	1,919	390	1,591	1,981
Derivatives	116	154	270	127	275	402
Other financial liabilities ^(d)	125	58	183	149	1	150
	4,691	23,566	28,257	3,613	23,125	26,738

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.
^(b) For the purposes of this note and note 17A, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively.
^(c) Financial liabilities include €Nil million (2018: €5 million) of secured liabilities.
^(d) Includes options and other financial liabilities to acquire non-controlling interests in EAC Myanmar, USA, Japan and Italy refer to note 21.

Reconciliation of liabilities arising from financing activities

			Non-cash movement
	Opening balance at 1 January	Cash movement	Business acquisitions/ disposals	Foreign exchange changes	Fair value changes	Other movements	Closing balance at 31 December
Movements in 2019 and 2018	€ million	€ million	€ million	€ million	€ million	€ million	€ million
2019
Bank loans and overdrafts ^(a)	(814)	(29)	(1)	(9)	-	-	(853)
Bonds and other loans ^(a)	(23,391)	(1,273)	(3)	(365)	(1)	1	(25,032)
Lease liabilities ^(b)	(1,981)	452	(7)	(25)	-	(358)	(1,919)
Derivatives	(402)	-	-	-	132	-	(270)
Other financial liabilities ^(a)	(150)	30	-	(8)	-	(55)	(183)
Total	(26,738)	(820)	(11)	(407)	131	(412)	(28,257)
2018 (Restated)
Bank loans and overdrafts ^(a)	(992)	158	(10)	17	-	13	(814)
Bonds and other loans ^(a)	(22,709)	(135)	-	(543)	-	(4)	(23,391)
Lease liabilities ^(b)(c)	(2,118)	494	-	1	-	(358)	(1,981)
Derivatives	(421)	-	-	-	19	-	(402)
Other financial liabilities ^(a)	(177)	51	-	10	(4)	(30)	(150)
Total	(26,417)	568	(10)	(515)	15	(379)	(26,738)

^(a) These cash movements are included within the following lines in the consolidated cash flow statement: net change in short-term liabilities, additional financial liabilities and repayment of financial liabilities. The difference of €64 million (2018: €2 million) represents cash movements in overdrafts that are not included in financing cash flows.
^(b) Lease liabilities cash movement is included within capital element of lease payments in the consolidated cashflow statement. The difference of €17 million (2018: €13 million) represents gain or loss from termination and modification of lease contracts.
^(c) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Analysis of bonds and other loans

	€ million	€ million
	Total 2019	Total 2018
Unilever N.V.
1.625% Notes 2033 (€)	792	791
1.750% Bonds 2020 (€)	750	749
0.500% Notes 2022 (€)	747	746
1.375% Notes 2029 (€)	743	743
1.125% Bonds 2027 (€)	697	696
1.125% Bonds 2028 (€)	694	693
0.875% Notes 2025 (€)	647	647
0.500% Bonds 2025 (€)	644	642
1.375% Notes 2030 (€)	642	642
0.375% Notes 2023 (€)	599	599
1.000% Notes 2027 (€)	598	598
1.000% Notes 2023 (€)	498	497
0.000% Notes 2021 (€)	498	497
0.500% Notes 2023 (€)	498	497
0.500% Notes 2024 (€)	495	494
0.000% Notes 2020 (€)	300	300
Total NV	9,842	9,831
Unilever PLC
1.125% Notes 2022 (£)	408	386
1.375% Notes 2024 (£)	292	276
1.875% Notes 2029 (£)	290	274
1.500% Notes 2026 (£)	580	-
1.500% Notes 2039 (€)	646	-
Total PLC	2,216	936
Other group companies
Switzerland
Other	24	10
United States
4.250% Notes 2021 ($)	892	873
5.900% Bonds 2032 ($)	883	865
2.900% Notes 2027 ($)	879	860
2.200% Notes 2022 ($)	755	738
1.800% Notes 2020 ($)	714	698
3.500% Notes 2028 ($)	703	687
4.800% Bonds 2019 ($)	-	656
2.200% Notes 2019 ($)	-	655
2.000% Notes 2026 ($)	616	602
1.375% Notes 2021 ($)	489	478
3.125% Notes 2023 ($)	488	477
2.100% Notes 2020 ($)	446	436
3.000% Notes 2022 ($)	444	434
3.250% Notes 2024 ($)	443	433
3.100% Notes 2025 ($)	442	432
2.600% Notes 2024 ($)	442	432
3.500% Bonds 2028 ($)	441	431
2.750% Bonds 2021 ($)	356	348
3.315 % Notes 2025 ($)	309	302
7.250% Bonds 2026 ($)	260	254
6.625% Bonds 2028 ($)	206	200
5.150% Notes 2020 ($)	135	134
5.600% Bonds 2097 ($)	82	80
2.125% Notes 2029 ($)	749	-
2.600% Notes 2024 ($)	457	-
Commercial paper ($)	1,276	1,070
Other countries	43	39
Total other group companies	12,974	12,624
Total bonds and other loans	25,032	23,391

Information in relation to the derivatives used to hedge bonds and other loans within a fair value hedge relationship is shown in note 16.

16. Treasury risk management

Derivatives and hedge accounting

Derivatives are measured at fair value with any related transaction costs expensed as incurred. The treatment of changes in the value of derivatives depends on their use as explained below.

(i) Fair value hedges ^(a)

Certain derivatives are held to hedge the risk of changes in value of a specific bond or other loan. In these situations, the Group designates the liability and related derivative to be part of a fair value hedge relationship. The carrying value of the bond is adjusted by the fair value of the risk being hedged, with changes going to the income statement. Gains and losses on the corresponding derivative are also recognised in the income statement. The amounts recognised are offset in the income statement to the extent that the hedge is effective. Ineffectiveness may occur if the critical terms do not exactly match, or if there is a value adjustment resulting from a change in credit risk (in either the Group or the counter-party to the derivative) that is not matched by the hedged item. When the relationship no longer meets the criteria for hedge accounting, the fair value hedge adjustment made to the bond is amortised to the income statement using the effective interest method.

(ii) Cash flow hedges ^(a)

Derivatives are also held to hedge the uncertainty in timing or amount of future forecast cash flows. Such derivatives are classified as being part of cash flow hedge relationships. Foran effective hedge, gains and losses from changes in the fair value of derivatives are recognised in equity. Cost of hedging, where material and opted for, is recorded in a separate account within equity. Any ineffective elements of the hedge are recognised in the income statement. Ineffectiveness may occur if there are changes to the expected timing of the hedged transaction. If the hedged cash flow relates to a non-financial asset, the amount accumulated in equity is subsequently included within the carrying value of that asset. For other cash flow hedges, amounts deferred in equity are taken to the income statement at the same time as the related cash flow.

When a derivative no longer qualifies for hedge accounting, any cumulative gain or loss remains in equity until the related cash flow occurs. When the cash flow takes place, the cumulative gain or loss is taken to the income statement. If the hedged cash flow is no longer expected to occur, the cumulative gain or loss is taken to the income statement immediately.

(iii) Net investment hedges ^(a)

Certain derivatives are designated as hedges of the currency risk on the Group's investment in foreign subsidiaries. The accounting policy for these arrangementsis set out in note 1.

(iv) Derivatives for which hedge accounting is not applied

Derivatives not classified as hedges are held in order to hedge certain balance sheet items and commodity exposures. No hedge accounting is applied to these derivatives, which are carried atfairvalue with changes being recognised in the income statement. ^(a)Applying hedge accounting has not led to material ineffectiveness being recognised in the income statement for both 2019 and 2018. Fair value changes on basis spread is recorded in a separate account within equity.

The Group is exposed to the following risks that arise from its use of financial instruments, the management of which is described in the following sections:

• liquidity risk (see note 16A);

• market risk (see note 16B); and

• credit risk (see note 17B).

The group's risk management policies are established to set appropriate risk limits and controls, and to maintain adherence to these limits. These policies are in line with Unilever's risk management framework.

16A. Management of liquidity risk

Liquidity risk is the risk that the Group will face in meeting its obligations associated with its financial liabilities. The Group's approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. A material and sustained shortfall in our cash flow could undermine the Group's credit rating, impair investor confidence and also restrict the Group's ability to raise funds.

The Group maintained a cautious funding strategy. This was the result of cash delivery from the business, coupled with the proceeds from bond issuances. This cash has been invested conservatively with low risk counter-parties at maturities of less than six months.

Cash flow from operating activities provides the funds to service the financing of financial liabilities on a day-to-day basis. The Group seeks to manage its liquidity requirements by maintaining access to global debt markets through short-term and long-term debt programmes. In addition, Unilever has committed credit facilities for general corporate use.

On 31 December 2019 Unilever had undrawn revolving 364-day bilateral credit facilities in aggregate of $7,865 million (2018: $7,865 million) with a 364-day term out. As part of the regular annual process, the intention is that these facilities will again be renewed in 2020.

The following table shows Unilever's contractually agreed undiscounted cash flows, including expected interest payments, which are payable under financial liabilities at the balance sheet date:

		€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million
Undiscounted cash flows	Notes	Due within 1 year	Due between 1 and 2 years	Due between 2 and 3 years	Due between 3 and 4 years	Due between 4 and 5 years	Due after 5 years	Total	Net carrying amount as shown in balance sheet
2019
Non-derivative financial liabilities:
Bank loans and overdrafts		(399)	(9)	(289)	(164)	-	(2)	(863)	(853)
Bonds and other loans		(4,169)	(2,661)	(2,745)	(2,449)	(2,454)	(14,431)	(28,909)	(25,032)
Lease liabilities		(432)	(392)	(302)	(242)	(191)	(720)	(2,279)	(1,919)
Other financial liabilities		(125)	-	(24)	(31)	(26)	-	(206)	(183)
Trade payables, accruals and other liabilities		(14,166)	(93)	(13)	(8)	(14)	(42)	(14,336)	(14,336)
Deferred consideration		(39)	(124)	(8)	-	(64)	-	(235)	(208)
		(19,330)	(3,279)	(3,381)	(2,894)	(2,749)	(15,195)	(46,828)	(42,531)
Derivative financial liabilities:
Interest rate derivatives:									(154)
Derivative contracts - receipts		776	164	805	37	478	957	3,217
Derivative contracts - payments		(756)	(141)	(797)	(17)	(473)	(949)	(3,133)
Foreign exchange derivatives:									(168)
Derivative contracts - receipts		8,783	-	-	-	-	-	8,783
Derivative contracts - payments		(8,952)	-	-	-	-	-	(8,952)
Commodity derivatives:									(4)
Derivative contracts - receipts		-	-	-	-	-	-	-
Derivative contracts - payments		(4)	-	-	-	-	-	(4)
		(153)	23	8	20	5	8	(89)	(326)
Total		(19,483)	(3,256)	(3,373)	(2,874)	(2,744)	(15,187)	(46,917)	(42,857)
2018 (Restated) ^(a)
Non-derivative financial liabilities:
Bank loans and overdrafts		(529)	(12)	(1)	(278)	-	-	(820)	(814)
Bonds and other loans		(2,888)	(2,748)	(2,572)	(2,646)	(2,387)	(14,090)	(27,331)	(23,391)
Lease liabilities		(441)	(391)	(305)	(255)	(212)	(806)	(2,410)	(1,981)
Other financial liabilities		(149)	(1)	-	-	-	-	(150)	(150)
Trade payables, accruals and other liabilities		(13,945)	(140)	(10)	(5)	(4)	(14)	(14,118)	(14,118)
Deferred consideration		(14)	(79)	(70)	(6)	-	(45)	(214)	(187)
		(17,966)	(3,371)	(2,958)	(3,190)	(2,603)	(14,955)	(45,043)	(40,641)
Derivative financial liabilities:
Interest rate derivatives:									(276)
Derivative contracts - receipts		67	760	163	788	37	1,406	3,221
Derivative contracts - payments		(23)	(756)	(138)	(797)	(17)	(1,423)	(3,154)
Foreign exchange derivatives:									(192)
Derivative contracts - receipts		17,108	-	-	-	-	-	17,108
Derivative contracts - payments		(17,317)	-	-	-	-	-	(17,317)
Commodity derivatives:									(74)
Derivative contracts - receipts		-	-	-	-	-	-	-
Derivative contracts - payments		(74)	-	-	-	-	-	(74)
		(239)	4	25	(9)	20	(17)	(216)	(542)
Total		(18,205)	(3,367)	(2,933)	(3,199)	(2,583)	(14,972)	(45,259)	(41,183)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

The Group has sublet a small proportion of leased properties. Related future minimum sublease payments are €21 million (2018: €18 million).

The following table shows cash flows for which cash flow hedge accounting is applied. The derivatives in the cash flow hedge relationships are expected to have an impact on profit and loss in the same periods as the cash flows occur.

		€ million	€ million	€ million	€ million	€ million	€ million	€ million
	€ million Due within 1 year	Due between 1 and 2 years	Due between 2 and 3 years	Due between 3 and 4 years	Due between 4 and 5 years	Due after 5 years	Total	Net carrying amount of related derivatives ^(a)
2019
Foreign exchange cash inflows	2,254	-	-	-	-	-	2,254	-
Foreign exchange cash outflows	(2,259)	-	-	-	-	-	(2,259)	-
Interest rate swaps cash inflows	811	442	1,182	536	478	957	4,406	-
Interest rate swaps cash outflows	(756)	(347)	(1,147)	(464)	(473)	(949)	(4,136)	(29)
Commodity contracts cash inflows	31	-	-	-	-	-	31	31
Commodity contracts cash outflows	(4)	-	-	-	-	-	(4)	(4)
2018
Foreign exchange cash inflows	3,426	-	-	-	-	-	3,426	-
Foreign exchange cash outflows	(3,435)	-	-	-	-	-	(3,435)	14
Interest rate swaps cash inflows	103	795	433	1,158	525	1,406	4,420	-
Interest rate swaps cash outflows	(23)	(756)	(347)	(1,147)	(464)	(1,423)	(4,160)	(199)
Commodity contracts cash flows	(74)	-	-	-	-	-	(74)	(74)

^(a) See note 16C.

16B. Management of market risk

Unilever's size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

• commodity price risk;

• currency risk; and

• interest rate risk.

The above risks may affect the Group's income and expenses, or the value of its financial instruments. The objective of the Group's management of market risk is to maintain this risk within acceptable parameters, while optimising returns. Generally, the Group applies hedge accounting to manage the volatility in profit and loss arising from market risk.

Where the Group uses hedge accounting to mitigate the above risks, it is normally implemented centrally by either the Treasury or Commodity Risk Management teams, in line with their respective frameworks and strategies. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship continues to exist between the hedged item and hedging instrument. The Group generally enters into hedge relationships where the critical terms of the hedging instrument match exactly with the hedged item, meaning that the economic relationship between the hedged item and hedging instrument is evident, so only a qualitative assessment is performed. When a qualitative assessment is not considered sufficient, for example when the critical terms of the hedging instrument do not match exactly with the hedged item, a quantitative assessment of hedge effectiveness will also be performed. The hedge ratio is set on inception for all hedge relationships and is dependent on the alignment of the critical terms of the hedging instrument to the hedged item (in most instances these are matched, so the hedge ratio is 1:1).

The Group's exposure to, and management of, these risks is explained below. It often includes derivative financial instruments, the uses of which are described in note 16C.

Potential impact of risk

(i) Commodity price risk

The Group is exposed to the risk of changes in commodity prices in relation to its purchase of certain raw materials.

At 31 December 2019, the Group had hedged its exposure to future commodity purchases with commodity derivatives valued at €439 million (2018: €580 million).

Hedges of future commodity purchases resulted in cumulative losses of €52 million (2018: losses of €25 million ) being reclassified to the income statement and losses of €28 million (2018: losses of €24 million) being recognised as a basis adjustment to inventory purchased.

(ii) Currency risk

Currency risk on sales, purchases and borrowings

Because of Unilever's global reach, it is subject to the risk that changes in foreign currency values impact the Group's sales, purchases and borrowings.

The Group manages the foreign currency risk by hedging forecasted sales and purchase transactions that are expected to occur within a maximum 12-month period through layered hedging.

At 31 December 2019, the exposure to the Group from companies holding financial assets and liabilities other than in their functional currency amounted to €317 million (2018 restated for IFRS 16: €298 million).

Currency risk on the Group's net investments

The Group is also subject to currency risk in relation to the translation of the net investments of its foreign operations into euros for inclusion in its consolidated financial statements.

These net investments include Group financial loans, which are monetary items that form part of our net investment in foreign operations, of €7.6 billion (2018: €7.5 billion), of which €3.5 billion (2018: €3.3 billion) is denominated in GBP. In accordance with IAS 21, the exchange differences on these financial loans are booked through reserves.

Part of the currency exposure on the Group's investments is also managed using US$ and Swiss franc net investment hedges with a nominal value of €4.0 billion (2018: €4.4 billion) for US$ and nil (2018: €(1.3) billion) for Swiss francs.

At 31 December 2019, the net exposure of the net investments in foreign currencies amounts to €22.0 billion (2018: €14.5 billion).

(iii) Interest rate risk(a)

The Group is exposed to market interest rate fluctuations on its floating rate debt. Increases in benchmark interest rates could increase the interest cost of our floating-rate debt and increase the cost of future borrowings. The Group's ability to manage interest costs also has an impact on reported results.

The Group does not have any material floating interest bearing financial assets or any significant long-term fixed interest bearing financial assets. Consequently the Group's interest rate risk arises mainly from financial liabilities other than lease liabilities.

Taking into account the impact of interest rate swaps, at 31 December 2019, interest rates were fixed on approximately 82% of the expected financial liabilities (excluding lease liabilities) for 2020, and 73% for 2021 (88% for 2019 and 77% for 2020 at 31 December 2018).

As at 31 December 2019, the Group had USD 4,500 million (2018: USD 4,500 million) of outstanding cross currency interest rate swaps (on which cash flow hedge accounting is applied).

For interest management purposes, transactions with a maturity shorter than six months from inception date are not included as fixed interest transactions.

The average interest rate on short-term borrowings in 2019 was 2.5% (2018: 0.9%).

Management policy and hedging strategy

The Group uses commodity forwards, futures, swaps and option contracts to hedge against this risk. All commodity forward contracts hedge future purchases of raw materials and the contracts are settled either in cash or by physical delivery.

The Group also hedges risk, components of commodities where it is not possible to hedge the commodity in full This is done with reference to the contract to purchase the hedged commodity.

Commodity derivatives are generally designated as hedging instruments in cash flow hedge accounting relations. All commodity derivative contracts are done in line with approvals from the Global Commodity Executive which is chaired by the Unilever Chief Supply Chain Officer (CSCO) or the Global Commodity Operating Team which is chaired by the Chief Procurement Officer.

The Group manages currency exposures within prescribed limits, mainly through the use of forward foreign currency exchange contracts.

Operating companies manage foreign exchange exposures within prescribed limits.

The aim of the Group's approach to management of currency risk is to leave the Group with no material residual risk. This aim has been achieved in all years presented.

Unilever aims to minimise this currency risk on the Group's net investment exposure by borrowing in local currency in the operating companies themselves. In some locations, however, the Group's ability to do this is inhibited by local regulations, lack of local liquidity or by local market conditions.

Where the residual risk from these countries exceeds prescribed limits, Treasury may decide on a case-by-case basis to actively hedge the exposure. This is done either through additional borrowings in the related currency, or through the use of forward foreign exchange contracts.

Where local currency borrowings, or forward contracts, are used to hedge the currency risk in relation to the Group's net investment in foreign subsidiaries, these relationships are designated as net investment hedges for accounting purposes.

Exchange risks related to the principal amounts of the US$ and Swiss franc denominated debt either form part of hedging relationships themselves, or are hedged through forward contracts.

Sensitivity to the risk

A 10% increase in commodity prices as at 31 December 2019 would have led to a €56 million gain on the commodity derivatives in the cash flow hedge reserve (2018:€51 million gain in the cash flow hedge reserve).

A decrease of 10% in commodity prices on a full- year basis would have the equal but opposite effect.

As an estimation of the approximate impact of the residual risk, with respect to financial instruments, the Group has calculated the impact of a 10% change in exchange rates.

Impact on income statement

A 10% strengthening of the foreign currencies against the respective functional currencies of group companies would have led to approximately an additional €32 million gain in the income statement (2018 restated for IFRS 16: €30 million gain).

A 10% weakening of the foreign currencies against the respctive functional currencies of group companies would have led to an equal but opposite effect.

As at year end, the Group had the below notional amount of currency derivatives outstanding to which cash flow hedge accounting is applied:

Currency	2019	2018
EUR ^*	(743)	(1,002)
GBP	(325)	(548)
USD	640	538
SEK	(94)	(136)
CAD	(108)	(126)
PLN	(67)	(104)
Others	(192)	(555)
Total	(889)	(1,933)

*Euro exposure relates to group companies having non - euro functional currencies.

Impact on equity - trade-related cash flow hedges

A 10% strengthening of foreign currencies against the respective functional currencies of group companies hedging future trade cash flows and applying cash flow hedge accounting, would have led to €89 million loss (2018: €193 million loss).

A 10% weakening of the same would have led to an equal but opposite effect.

Impact on equity - net investment hedges

A 10% strengthening of the euro against other currencies would have led to a €396 million (2018: €312 million) loss on the net investment hedges used to manage the currency exposure on the Group's investments.

A 10% weakening of the euro against other currencies would have led to an equal but opposite effect.

Impact on equity - net investments in group companies

A 10% strengthening of the euro against all other currencies would have led to a €2,203 million negative retranslation effect (2018: €1,455 million negative retranslation effect).

A 10% weakening of the euro against those currencies would have led to an equal but opposite effect. In line with accepted hedge accounting treatment and our accounting policy for financial loans, the retranslation differences would be recognised in equity.

Impact on income statement

Assuming that all other variables remain constant, a 1.0 percentage point increase in floating interest rates on a full-year basis as at 31 December 2019 would have led to an additional €37 million of finance cost (2018: €33 million additional finance costs).

A 1.0 percentage point decrease in floating interest rates on a full-year basis would have an equal but opposite effect.

Impact on equity - cash flow hedges

Assuming that all other variables remain constant, a 1.0 percentage point increase in interest rates on a full-year basis as at 31 December 2019 would have led to an additional €8 million credit in equity from derivatives in cash flow hedge relationships (2018: €17 million credit).

A 1.0 percentage point decrease in interest rates on a full-year basis would have led to an additional €8 million debit in equity from derivatives in cash flow hedge relationships (2018: €19 million debit).

^(a) See the weighted average amount of net debt with fixed rate interest shown in the following table.

The following table shows the split in fixed and floating-rate interest exposures, taking into account the impact of interest rate swaps and cross-currency swaps:

	€ million	€ million
	2019	2018 (Restated) ^(a)
Current financial liabilities	(4,691)	(3,613)
Non-current financial liabilities	(23,566)	(23,125)
Total financial liabilities	(28,257)	(26,738)
Less: lease liabilities	(1,919)	(1,981)
Financial liabilities (excluding lease liabilities)	(26,338)	(24,757)
Of which:
Fixed rate (weighted average amount of fixing for the following year)	(22,618)	(21,469)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

16C. Derivatives and hedging

The Group does not use derivative financial instruments for speculative purposes. The uses of derivatives and the related values of derivatives are summarised in the following table. Derivatives used to hedge:

	€ million	€ million	€ million	€ million	€ million	€ million	€ million
	Trade and other receivables	Current Financial assets	Non-Current Financial assets	Trade payables and other liabilities	Current financial liabilities	Non-current financial liabilities	Total
31 December 2019
Foreign exchange derivatives
Fair value hedges	-	-	-	-	-	-	-
Cash flow hedges	38	-	-	(38)	-	-	-
Hedges of net investments in foreign operations	-	30 ^(a)	-	-	(14) ^(a)	-	16
Hedge accounting not applied	5	(10) ^(a)	-	(14)	(102) ^(a)	-	(121)
Cross-currency Interest rate swaps
Fair value hedges	-	-	-	-	-	-	-
Cash flow hedges	-		114	-	-	(143)	(29)
Hedge accounting not applied	-	-	-	-	-	(11)	(11)
Commodity contracts
Cash flow hedges	31	-	-	(4)	-	-	27
Hedge accounting not applied	-	-	-	-	-	-	-
	74	20	114	(56)	(116)	(154)	(118)
	Total assets		208	Totalliabilities		(326)	(118)
31 December 2018
Foreign exchange derivatives
Fair value hedges	-	-	-	-	-	-	-
Cash flow hedges	39	-	-	(25)	-	-	14
Hedges of net investments in foreign operations	-	58 ^(a)	-	-	(21) ^(a)	-	37
Hedge accounting not applied	42	67 ^(a)	-	(41)	(105) ^(a)	-	(37)
Cross-currency Interest rate swaps
Fair value hedges	-	-	-	-	-	-	-
Cash flow hedges	-	69	-	-	-	(268)	(199)
Hedge accounting not applied	-	-	-	-	-	(8)	(8)
Commodity contracts
Cash flow hedges	-	-	-	(74)	-	-	(74)
Hedge accounting not applied	1	-	-	-	-	-	1
	82	194	-	(140)	(126)	(276)	(266)
	Total assets		276	Total liabilities		(542)	(266)

^(a) Swaps that hedge the currency risk on intra-group loans and offset 'Hedges of net investments in foreign operations' are included within 'Hedge accounting not applied'. See below for further details.

Master netting or similar agreements

A number of legal entities within our Group enter into derivative transactions under International Swap and Derivatives Association (ISDA) master netting agreements. In general, under such agreements the amounts owed by each counter-party on a single day in respect of all transactions outstanding in the same currency are aggregated into a single net amount that is payable by one party to the other. In certain circumstances, such as when a credit event such as a default occurs, all outstanding transactions under the agreement are terminated, the termination value is assessed and only a single net amount is payable in settlement of all transactions.

The ISDA agreements do not meet the criteria for offsetting the positive and negative values in the consolidated balance sheet. This is because the Group does not have any currently legally enforceable right to offset recognised amounts, between various Group and bank affiliates, because the right to offset is enforceable only on the occurrence of future credit events such as a default.

The column 'Related amounts not set off in the balance sheet - Financial instruments' shows the netting impact of our ISDA agreements, assuming the agreements are respected in the relevant jurisdiction.

(i) Financial assets

The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements.

				Related amounts not set off in the balance sheet
	€ million	€ million	€ million	€ million	€ million	€ million
As at 31 December 2019	Gross amounts of recognised financial assets	Gross amounts of recognised financial assets set off in the balance sheet	Net amounts of financial assets presented in the balance sheet	Financial instruments	Cash collateral received	Net amount
Derivative financial assets	253	(45)	208	(130)	(24)	54
As at 31 December 2018
Derivative financial assets	339	(63)	276	(164)	(10)	102

(Ii) Financial liabilities

The following financial liabilities are subject to offsetting, enforceable master netting arrangements and similar agreements.

				Related amounts not set off in the balance sheet
	€ million	€ million	€ million	€ million	€ million	€ million
As at 31 December 2019	Gross amounts of recognised financial liabilities	Gross amounts of recognised financial liabilities set off in the balance sheet	Net amounts of financial liabilities presented in the balance sheet	Financial instruments	Cash collateral received	Net amount
Derivative financial liabilities	(371)	45	(326)	130	-	(196)
As at 31 December 2018
Derivative financial liabilities	(605)	63	(542)	164	-	(378)

17. Investment and return

Cash and cash equivalents

Cash and cash equivalents in the balance sheet include deposits, investments in money market funds and highly liquid investments. To be classified as cash and cash equivalents, an asset must:

• be readily convertible into cash;

• have an insignificant risk of changes in value; and

• have a maturity period of typically three months or less at acquisition.

Cash and cash equivalents in the cash flow statement also include bank overdrafts and are recorded at amortised cost.

Other financial assets

The Group classifies its financial assets into the following measurement categories:

• those to be measured subsequently at fair value (either through other comprehensive income, or through profit or loss), and

• those to be measured at amortised cost.

This classification depends on our business model for managing the financial asset and the contractual terms of the cashflows.

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

Allfinancial assets are either debt instruments or equity instruments. Debt instruments are those that provide the Group with a contractual right to receive cash or another asset. Equity instruments are those where the Group has no contractual right to receive cash or another asset.

Debt instruments

The subsequent measurement of debt instruments depends on the Groups business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories that debt instruments are classified as:

• financial assets at amortised cost;

• financial assets at fair value through other comprehensive income; or

• financial assets at fair value through profit or loss.

(i) Amortised cost

Assets measured at amortised cost are those which are held to collect contractual cash flows on the repayment of principal or interest (SPPI). A gain or loss on a debt investment recognised at amortised cost on de-recognition or impairment is recognised in profit or loss. Interest income is recognised within finance income using the effective interest rate method.

(ii) Fair value through other comprehensive income

Assets that are held at fair value through other comprehensive income are those that are held to collect contractual cash flows on the repayment of principal and interest and which are held to recognise a capital gain through the sale of the asset. Movements in the carrying amount are recognised in other comprehensive income except for the recognition of impairment, interest income and foreign exchange gains or losses which are recognised in profit or loss. On de-recognition, the cumulative gain or loss recognised in other comprehensive income is reclassified from equity to profit or loss. Interest income is included in finance income using the effective interest rate method.

(iii) Fair value through profit or loss

Assets that do not meet the criteria for either amortised cost or fair value through other comprehensive income are measured as fair value through profit or loss. Related transaction costs are expensed as incurred. Unless they form part of a hedging relationship, these assets are held at fair value, with changes being recognised in the income statement. Interest income from these assets is included within finance income.

Equity instruments

The Group subsequently measures all equity instruments at fair value. Where the Group has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains or losses to profit or loss. Dividends from these investments continue to be recognised in profit or loss.

Impairment of financial assets

Financial instruments classified as amortised cost and debt instruments classified as fair value through other comprehensive income are assessed for impairment. The Group assesses the probability of default of an asset at initial recognition and then whether there has been a significant increase in credit risk on an ongoing basis.

To assess whether there is a significant increase in credit risk the Group compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information. Macroeconomic information (such as market interest rates or growth rates) is also considered.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to engage in a repayment plan with the company. Impairment losses on assets classified as amortised cost are recognised in profit or loss. When a later event causes the impairment losses to decrease, the reduction in impairment loss is also recognised in profit or loss. Permanent impairment losses on debt instruments classified as fair value through other comprehensive income are recognised in profit or loss.

17A. Financial assets

The Group's Treasury function aims to protect the Group's financial investments, while maximising returns. The fair value of financial assets is the same as the carrying amount for 2019 and 2018. The Group's cash resources and other financial assets are shown below.

	€ million	€ million	€ million	€ million	€ million	€ million
Financial assets ^(a)	Current 2019	Non-current 2019	Total 2019	Current 2018	Non-current 2018	Total 2018
Cash and cash equivalents
Cash at bank and in hand	2,457	-	2,457	2,174	-	2,174
Short-term deposits with maturity of less than three months	1,693	-	1,693	1,024	-	1,024
Other cash equivalents	35	-	35	32	-	32
	4,185	-	4,185	3,230	-	3,230
Other financial assets
Financial assets at amortised cost ^b)	578	220	798	382	247	629
Financial assets at fair value through other comprehensive income ^(c)	-	266	266	154	175	329
Financial assets at fair value through profit or loss:
Derivatives	20	114	134	194	-	194
Other ^(d)	309	274	583	144	220	364
	907	874	1,781	874	642	1,516
Total	5,092	874	5,966	4,104	642	4,746

^(a) For the purposes of this note and note 15C, financial assets and liabilities exclude trade and other current receivables and trade payables and other liabilities which are covered in notes 13 and 14 respectively.
^(b) Current financial assets at amortised cost include short-term deposits with banks with maturities longer than three months and loans to joint venture entities. Non-current financial assets at amortised cost include judicial deposit of €136 million (2018: €128 million) and investments in bonds of €56 million (2018: €93 million).
^(c) Included within non-current financial assets at fair value through other comprehensive income are equity investments of €244 million (2018: €148 million). These investments are not held by Unilever for trading purposes and hence the Group has opted to recognise fair value movements through other comprehensive income. The fair value movement in 2019 of these equity investments was €31 million (2018: €(9) million).
^(d) Current Other Financial assets at fair value through profit or loss include A- or higher rated money and capital market instruments. Included within non-current financial assets at fair value through profit or loss are assets in a trust to fund benefit obligations in the US (see also note 4B) of €54 million (2018: €59 million) and investments in a number of companies and financial institutions in North America, North Asia, South Asia and Europe.

There were no significant changes on account of change in business model in classification of financial assets since 31 December 2018.

There are no financial assets that are designated at fair value through profit or loss, which would otherwise have been measured at fair value through other comprehensive income.

	€ million	€ million
Cash and cash equivalents reconciliation to the cash flow statement	2019	2018
Cash and cash equivalents per balance sheet	4,185	3,230
Less: bank overdrafts	(69)	(140)
Cash and cash equivalents per cash flow statement	4,116	3,090

Approximately €1 billion (or 24%) of the Group's cash and cash equivalents are held in the parent and central finance companies, for maximum flexibility. These companies provide loans to our subsidiaries that are also funded through retained earnings and third party borrowings. We maintain access to global debt markets through an infrastructureof short and long-term debt programmes. We make use of plain vanilla derivatives, such as interest rate swaps and foreign exchange contracts, to help mitigate risks. More detail is provided in notes 16, 16A, 16B and 16C on pages 121 to 127.

The remaining €3.2 billion (76%) of the Group's cash and cash equivalents are held in foreign subsidiaries which repatriate distributable reserves on a regular basis. For most countries, this is done through dividends which are in some cases subject to withholding or distribution tax. This balance includes €146 million (2018: €154 million, 2017: €206 million) of cash that is held in a few countries where we face cross-border foreign exchange controls and/or other legal restrictions that inhibit our ability to make these balances available for general use by the wider business. The cash will generally be invested or held in the relevant country and, given the other capital resources available to the Group, does not significantly affect the ability of the Group to meet its cash obligations.

17B. Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counter-party fails to meet its contractual obligations. Additional information in relation to credit risk on trade receivables is given in note 13. These risks are generally managed by local controllers. Credit risk related to the use of treasury instruments, including those held at amortised cost and at fair value through other comprehensive income, is managed on a Group basis. This risk arises from transactions with financial institutions involving cash and cash equivalents, deposits and derivative financial instruments. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. To reduce this risk, Unilever has concentrated its main activities with a limited number of counter-parties which have secure credit ratings. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience. Credit limits and concentration of exposures are actively monitored by the Group's treasury department. Netting agreements are also put in place with Unilever's principal counter-parties. In the case of a default, these arrangements would allow Unilever to net assets and liabilities across transactions with that counter-party. To further reduce the Group's credit exposures on derivative financial instruments, Unilever has collateral agreements with Unilever's principal counter-parties in relation to derivative financial instruments. Under these arrangements, counter-parties are required to deposit securities and/or cash as a collateral for their obligations in respect of derivative financial instruments. At 31 December 2019 the collateral held by Unilever under such arrangements amounted to €24 million (2018: €10 million), of which €24 million (2018: €10 million) was in cash, and €Nil million (2018: €Nil million) was in the form of bond securities. The non-cash collateral has not been recognised as an asset in the Group's balance sheet.

Further details in relation to the Group's exposure to credit risk are shown in note 13 and note 16A.

18. Financial instruments fair value risk

The Group is exposed to the risks of changes in fair value of its financial assets and liabilities. The following table summarises the fair values and carrying amounts of financial instruments.

	€ million	€ million	€ million	€ million
Fair values of financial assets and financial liabilities	Fair value 2019	Fair value 2018 (Restated) ^(a)	Carrying amount 2019	Carrying amount 2018 (Restated) ^(a)
Financial assets
Cash and cash equivalents	4,185	3,230	4,185	3,230
Financial assets at amortised cost	798	629	798	629
Financial assets at fair value through other comprehensive income	266	329	266	329
Financial assets at fair value through profit or loss:
Derivatives	134	194	134	194
Other	583	364	583	364
	5,966	4,746	5,966	4,746
Financial liabilities
Bank loans and overdrafts	(853)	(816)	(853)	(814)
Bonds and other loans	(26,525)	(23,691)	(25,032)	(23,391)
Lease liabilities	(1,919)	(1,981)	(1,919)	(1,981)
Derivatives	(270)	(402)	(270)	(402)
Other financial liabilities	(183)	(150)	(183)	(150)
	(29,750)	(27,040)	(28,257)	(26,738)

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

The fair value of trade receivables and payables is considered to be equal to the carrying amount of these items due to their short-term nature.

The instruments that have a fair value that is different from the carrying amount are classified as Level 2 for both 2018 and 2019.

Fair value hierarchy

The fair values shown in notes 15C and 17A have been classified into three categories depending on the inputs used in the valuation technique. The categories used are as follows:

• Level 1: quoted prices for identical instruments;

• Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and

• Level 3: inputs which are not based on observable market data.

For assets and liabilities which are carried at fair value, the classification of fair value calculations by category is summarised below:

		€ million	€ million	€ million	€ million	€ million	€ million	€ million	€ million
	Notes	Level 1 2019	Level 1 2018	Level 2 2019	Level 2 2018	Level 3 2019	Level 3 2018	Total fair value 2019	Total fair value 2018
Assets at fair value
Financial assets at fair value through other comprehensive income	17A	7	160	4	5	255	164	266	329
Financial assets at fair value through profit or loss:
Derivatives ^(a)	16C	-	-	208	276	-	-	208	276
Other	17A	311	145	-	-	272	219	583	364
Liabilities at fair value
Derivatives ^(b)	16C	-	-	(326)	(542)	-	-	(326)	(542)
Contingent consideration	14	-	-	-	-	(154)	(142)	(154)	(142)

^(a) Includes €74 million (2018: €82 million) derivatives, reported within trade receivables, that hedae trading activities.
^(b) Includes €(56) million (2018: €(140) million) derivatives, reported within trade payables, that hedge trading activities.

There were no significant changes in classification of fair value of financial assets and financial liabilities since 31 December 2018. There were also no significant movements between the fair value levels since 31 December 2018.

The impact in 2019 income statement due to level 3 instruments is a loss of €9 million (2018: gain of €272 million).

Reconciliation of Level 3 fair value measurements of financial assets and financial liabilities is given below:

	€ million	€ million
Reconciliation of movements in Level 3 valuations	2019	2018
1 January	241	(101)
Gains and losses recognised in income statement	(9)	272
Gains and losses recognised in other comprehensive income	43	(9)
Purchases and new issues	83	4
Sales and settlements	15	75
31 December	373	241

Significant unobservable inputs used in level 3 fair values

The largest asset valued using Level 3 techniques is an executive Life Insurance of €18 million (2018: €17 million). A change in one or more of the inputs to reasonably possible alternative assumptions would not change the value significantly.

The gains and losses recognised in 2018 income statement includes a credit from early settlement of contingent consideration for Blueair.

Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Methods and assumptions used to estimate the fair values are consistent with those used in the year ended 31 December 2018.

Assets and liabilities carried at fair value

• The fair values of quoted investments falling into Level 1 are based on current bid prices.

• The fair values of unquoted financial assets at fair value through other comprehensive income and at fair value through profit or loss are based on recent trades in liquid markets, observable market rates, discounted cash flow analysis and statistical modelling techniques such as the Monte Carlo simulation. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3.

• Derivatives are valued using valuation techniques with market observable inputs. The models incorporate various inputs including the credit quality of counter-parties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the underlying commodities.

• For listed securities where the market is not liquid, and for unlisted securities, valuation techniques are used. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same and discounted cash flow calculations.

Other financial assets and liabilities (fair values for disclosure purposes only)

• Cash and cash equivalents, trade and other current receivables, bank loans and overdrafts, trade payables and other current liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

• The fair values of listed bonds are based on their market value.

• Non-listed bonds, other loans, bank loans and non-current receivables and payables are based on the net present value of the anticipated future cash flows associated with these instruments using rates currently available for debt on similar terms, credit risk and remaining maturities.

Policies and processes used in relation to the calculation of level 3 fair values

Assets valued using Level 3 valuation techniques are primarily made up of long-term cash receivables and unlisted investments. Valuation techniques used are specific to the circumstances involved. Unlisted investments include €403 million (2018: €254 million) of investments within Unilever Ventures companies.

19. Provisions

Provisions are recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable.

	€ million	€ million
Provisions	2019	2018
Due within one year	620	624
Due after one year	664	697
Total provisions	1,284	1,321

	€ million	€ million	€ million	€ million	€ million
Movements during 2019	Restructuring	Legal	Brazil indirect taxes	Other	Total
1 January 2019	445	143	203	530	1,321
Income Statement:
Charges	371	59	15	107	552
Releases	(75)	(10)	(10)	(62)	(157)
Utilisation	(257)	(38)	(7)	(54)	(356)
Reclassification ^(a)	(18)	(7)	(75)	28	(72)
Currency translation	4	2	2	(12)	(4)
31 December 2019	470	149	128	537	1,284

^(a) Includes an amount transferred to impairment provision relating to Brazil indirect tax assets. See note 13.

Restructuring provisions primarily include people costs such as redundancy costs and cost of compensation where manufacturing, distribution, service or selling agreements are to be terminated. The group expects these provisions to be substantially utilised within the next few years.

The Group is involved from time to time in legal and arbitration proceedings arising in the ordinary course of business. As previously disclosed, along with other consumer products companies and retail customers, Unilever is involved in a number of ongoing investigations by national competition authorities. These proceedings and investigations are at various stages and concern a variety of product markets. Where specific issues arise, provisions are made to the extent appropriate. Due to the nature of the legal cases, the timing of utilisation of these provisions is uncertain.

Provisions for Brazil indirect taxes are comprised of disputes with Brazilian authorities, in particular relating to tax credits that can be taken for the PIS and COFINS indirect taxes. These provisions are separate from the matters listed as contingent liabilities in note 20; Unilever does not have provisions and contingent liabilities for the same matters. Due to the nature of disputed indirect taxes the timing of utilisation of these provisions is uncertain.

Other includes provisions for indirect taxes in countries other than Brazil, interest on tax provisions and provisions for various other matters. The timing of utilisation of these provisions is uncertain.

20. Commitments and contingent liabilities

Lease commitments are the future cash out flows from the lease contracts which are not recorded in the measurement of lease liabilities. These include potential future payments related to leases of low value assets, leases which are less than twelve months, variable leases, extension and termination options and leases not yet commenced but which we have committed to.

Contingent liabilities are either possible obligations that will probably not require a transfer of economic benefits, or present obligations that may, but probably will not, require a transfer of economic benefits. It is not appropriate to make provisions for contingent liabilities, but there is a chance that they will result in an obligation in the future. Assessing the amount of liabilities that are not probable is highly judgemental so contingent liabilities are disclosed on the basis of the known maximum exposure.

Commitments

	€ million	€ million	€ million	€ million
Lease commitments and other commitments fall due as follows:	Leases 2019	Leases 2018 (Restated) ^(a)	Other commitments 2019	Other commitments 2018
Within 1 year	69	65	791	1,099
Later than 1 year but not later than 5 years	111	89	684	780
Later than 5 years	43	20	23	31
	223	174	1,498	1,910

^(a) Restated following adoption of IFRS 16. See note 1 and note 24 for further details.

Other commitments principally comprise commitments under contract to purchase materials and services. They do not include commitments to purchase property, plant and equipment, which are reported in note 10 on pages 111 to 112.

Adoption of IFRS 16

On adoption of IFRS 16, previously disclosed commitments for fixed lease payments have been recognised on the balance sheet and are now excluded from lease commitments. Other lease commitments are included in the table above. All prior year numbers have been restated.

Contingent liabilities

Contingent liabilities are possible obligations that are not probable. They arise in respect of litigation against group companies, investigations by competition, regulatory and fiscal authorities and obligations arising under environmental legislation. In many markets, there is a high degree of complexity involved in the local tax regimes. The majority of contingent liabilities are in respect of fiscal matters in Brazil.

Assessing the amount of liabilities that are not probable is highly judgemental. Contingent liabilities are disclosed on the basis of the known maximum exposure. In the case of fiscal matters the known maximum exposure is the amount included on a tax assessment.

A summary of our contingent liabilities is shown in the table below:

	€ million	€ million
	2019	2018
Corporate reorganisation - IPI, PIS and COFINS taxes and penalties ^(a)	2,235	2,032
Inputs for PIS and COFINS taxes	43	52
Goodwill amortisation	184	177
Other tax assessments - approximately 600 cases	959	916
Total Brazil Tax	3,421	3,177
Other contingent liabilities	789	481
Total contingent liabilities	4,210	3,658

^(a) During 2004, and in common with many other businesses operating in Brazil, one of our Brazilian subsidiaries received a notice of infringement from the Federal Revenue Service in respect of indirect taxes. The notice alleges that a 2001 reorganisation of our local corporate structure was undertaken without valid business purpose. The 2001 reorganisation was comparable with restructurings done by many companies in Brazil. The original dispute was resolved in the courts in the Group's favour. However, in 2013 a new assessment was raised in respect of a similar matter. Additionally, during the course of 2014 and again in 2017, 2018 and 2019 other notices of infringement were issued based on the same grounds argued in the previous assessments. The total amount of the tax assessments in respect of this matter is €2,235 million (2018: €2,032 million). The judicial process in Brazil is likely to take a number of years to conclude.

The Group believes that the likelihood that the Brazilian tax authorities will ultimately prevail is low, however there can be no guarantee of success in court. In each case we believe our position is strong so they have not been provided for and are considered to be contingent liabilities. Due to the fiscal environment in Brazil the possibility of further tax assessments related to the same matters cannot be ruled out. We expect that three of our largest tax litigation cases, which represent around €1.8 billion of contingent liabilities, will move from the Administrative to the Judicial Courts during 2020 although the timing is uncertain. When this happens, we will be required to make a judicial deposit or provide a guarantee in respect of the disputed tax, interest and penalties. The judicial process in Brazil is likely to take a number of years to conclude.

The contingent liabilities reported for indirect taxes relating to disputes with the Brazilian authorities are separate from the provisions listed in note 19; Unilever does not have provision and contingent liabilities for the same matters.

In 2019, a tax assessment was issued in connection with UK tax audit that commenced in 2015. The total amount of the tax assessment in respect of this matter is €141 million and is included in other contingent liabilities. The UK tax authorities are reviewing the allocation of taxable income related to intangible assets and centralised services as between Unilever N.V. and Unilever PLC, and whether Unilever N.V. has a permanent establishment in the UK. These arrangements have been in place and consistently applied by Unilever for many years and have been previously reviewed and accepted by the UK tax authorities. The period of review is for the years from 2011 to 2017, and the €141 million tax assessment is in respect of an alleged Unilever N.V. permanent establishment in the UK for 2015. Unilever strongly disagrees with the positions taken by the UK tax authorities and believes that the positions as filed in UK tax returns are in accordance with the tax legislation. Given the potential impact of any adjustment on the allocation of taxable income between Unilever N.V. and Unilever PLC, with potential consequential effects for Dutch taxable income, we have filed a protective Mutual Agreement Procedure with the Dutch and UK authorities.

Discussions with the UK tax authorities are ongoing and there is recognition that significant further work is required before any further tax assessments can be issued and that the issues raised overlap in whole or part and therefore require a sequenced resolution. On the basis of the tax assessment issued the maximum exposure could be up to €600 million.

21. Acquisitions and disposals

Business combinations are accounted for using the acquisition accounting method as at the acquisition date, which is the date at which control is transferred to the Group.

Goodwill is measured at the acquisition date as the fair value of consideration transferred, plus non-controlling interests and the fair value of any previously held equity interests less the net recognised amount (which is generally fair value) of the identifiable assets and liabilities assumed.

Goodwill is subject to an annual review for impairment (or more frequently if necessary) in accordance with our accounting policies. Any impairment is charged to the income statement as it arises. Detailed information relating to goodwill is provided in note 9 on pages 108 to 110.

Transaction costs are expensed as incurred, within non-underlying items.

Changes in ownership that do not result in a change of control are accounted for as equity transactions and therefore do not have any impact on goodwill. The difference between consideration and the non-controlling share of net assets acquired is recognised within equity.

2019

In 2019, the Group completed the business acquisitions and disposals as listed below. In each case 100% of the businesses were acquired unless stated otherwise. Total consideration for 2019 acquisitions is €1,167 million (2018: €1,194 million for acquisitions completed during that year). More information related to the 2019 acquisitions is provided on page 135 to 136.

Deal completion date Acquired/disposed business

28 January 2019	Acquired the Laundress, a global premium eco-friendly laundry care business in the US. The acquisition expands our portfolio into the premium home care market.
5 February 2019	Acquired Graze, the leading healthy snacking business in the UK. The acquisition accelerates our presence in the healthy snacking and out of home markets.
1 March 2019	Sold the global Alsa baking and dessert business to Dr. Oetker.
5 April 2019	Acquired Garancia, a derma-cosmetic business in France. The acquisition strengthens our prestige portfolio in the pharmacy channel.
21 May 2019	Acquired Olly Nutrition, a US based vitamins, minerals and supplements business that accelerates our presence and competitiveness in the wellness market.
28 June 2019	Acquired Fluocaril and Parogencyl oral care businesses in France and Spain. The acquisition complements our existing oral care portfolio and strengthens our distribution in the European pharmacy channel.
26 July 2019	Acquired 95% of Tatcha, a leading prestige skin care business in the US. Tatcha is a modern skin care brand with a focus on natural ingredients, product experience, premium design and packaging quality.
30 August 2019	Acquired Astrix, a personal and home care business in Bolivia that further strengthens our local market competitiveness.
1 October 2019	Acquired 70% of Lenor, a premium skin care business based in Japan. The acquisition expands our portfolio into Japanese beauty, premium face and derma care in Japan and China.
1 October 2019	Acquired 75% of FruFru, a healthy food business in Romania which accelerates our local presence and competitiveness in the healthy food market.

As previously announced, in December 2018 the Group signed an agreement to acquire the health food drinks portfolio of GlaxoSmithKline in India, Bangladesh and 20 other predominantly Asian markets primarily to acquire the Horlicks and Boost brands. The deal is now expected to complete during the first half of 2020. The consideration is payable via a combination of €642 million cash and shares of Hindustan Unilever Limited. Based on the share price of Hindustan Unilever Limited and exchange rates at 31 December 2019, the total consideration for the acquisition was valued at approximately €5,086 million.

Effect on consolidated income statement

The acquisition deals completed in 2019 have contributed €227 million to Group revenue and €5 million to Group operating profit since the relevant acquisition dates.

If the acquisition deals completed in 2019 had all taken place at the beginning of the year, Group revenue would have been €52,165 million and Group operating profit would have been €8,724 million.

2018

In 2018 the Group completed the following business acquisitions and disposals as listed below. For businesses acquired, the acquisition accounting has been finalised and subsequent changes to the provisional numbers published last year were immaterial.

Deal completion date Acquired/disposed business

15 January 2018	Acquired the remaining 2% non-controlling interest of Carver Korea bringing the Group's ownership to 100%.
28 February 2018	Acquired Quala beauty & personal and home care business in Latin America.
2 July 2018	Sold the global Spreads business (excluding Southern Africa) to KKR.
2 July 2018	Sold the Spreads business in Southern Africa to Remgro plus a cash consideration of €306 million in exchange for Remgro's 25.75% shareholding in Unilever South Africa.
27 September 2018	Acquired Adityaa Milk, an ice cream business in India. The acquisition strengthens Unilever front end distribution reach in India.
1 October 2018	Acquired 75% of Equilibra, the Italian personal care and wellbeing business. The acquisition complements Unilever's product range through its presence in the 'natural' personal care segment.
1 November 2018	Acquired Betty Ice, a leading ice cream business in Romania. The acquisition enriches Unilever's product range through local offerings and price tiers.
3 December 2018	Acquired Denny Ice, an ice cream business in Bulgaria to strengthen local product knowledge.
31 December 2018	Acquired Vegetarian Butcher, a vegetarian meat replacement, foods business in the Netherlands. The acquisition fits with Unilever's strategy to expand its portfolio into plant-based foods responding to the growing trend of vegetarian and vegan meals.

Effect on consolidated balance sheet

Acquisitions

The following table sets out the effect of the acquisitions in 2019, 2018 and 2017 on the consolidated balance sheet. The fair values currently used for opening balances of all acquisitions made in 2019 are provisional, with the exception of the Laundress and Graze whose opening balance sheets were finalised within 2019. Balances remain provisional due to missing relevant information about facts and circumstances that existed as of the acquisition date and where valuation work is still ongoing.

Detailed information relating to goodwill is provided in note 9 on pages 108 to 110. The value of goodwill which is expected to be tax deductible is €160 million.

	€ million	€ million	€ million
	2019	2018	2017
Net assets acquired	771	815	2,423
Non-controlling interest	(25)	(17)	(50)
Goodwill	421	496	2,539
Total payment for acquisition	1,167	1,294	4,912
Exchange rate gain/(loss) on cash flow hedge	-	(100)	51
Total consideration	1,167	1,194	4,963

In 2019 the net assets acquired and total payment for acquisitions consist of:

	€ million
	2019
Intangible assets	787
Other non-current assets	37
Trade and other receivables	58
Other current assets	94
Non-current liabilities	(128)
Current liabilities	(77)
Net assets acquired	771
Non-controlling interest	(25)
Goodwill	421
Exchange rate gain/(loss) on cash flow hedges	-
Cash consideration	1,149
Deferred consideration	18
Total consideration	1,167

No contingent liabilities were acquired in the acquisitions described above.

Goodwill represents the future value which the Group believes it will obtain through operational synergies and the application of acquired company ideas to existing Unilever channels and businesses.

Disposals

Total consideration for 2019 disposals is €169 million (2018: €7,590 million for disposals completed during that year). The following table set sout the effect of the disposals in 2019, 2018 and 2017 on the consolidated balance sheet. The results of disposed businesses are included in the consolidated financial statements up to their date of disposal.

	€ million	€ million	€ million
	2019	2018	2017
Goodwill and intangible assets	82	2,510	71
Other non-current assets	19	666	92
Current assets	15	261	10
Trade creditors and other payables	(12)	(107)	(8)
Net assets sold	104	3,330	165
(Gain)/loss on recycling of currency retranslation on disposal	-	(71)	66
Profit/(loss) on sale attributable to Unilever	65	4,331	332
Consideration	169	7,590	563
Cash	168	7,135	560
Cash balances of businesses sold	1	321	-
Non-cash items and deferred consideration	-	134	3
	169	7,590	563

On 1 March 2019 Unilever sold the global Alsa baking and dessert business to Dr. Oetker for €155 million cash consideration. Goodwill of €27 million was allocated from the Foods & Refreshment CGUs. Profit on the disposal was €57 million, recognised as a non-underlying item (see note 3).

22. Assets and liabilities held for sale

Non-current assets and groups of assets and liabilities which comprise disposal groups are classified as 'held for sale' when all of the following criteria are met: a decision has been made to sell; the assets are available for sale immediately; the assets are being actively marketed; and a sale has been agreed or is expected to be concluded within 12 months of the balance sheet date.

Immediately prior to classification as held for sale, the assets or groups of assets are remeasured in accordance with the Group's accounting policies. Subsequently, assets and disposal groups classified as held for sale are valued at the lower of book value or fair value less disposal costs. Assets held for sale are neither depreciated nor amortised.

	€ million	€ million
	2019 Total	2018 Total
Disposal groups held for sale ^(a)
Goodwill and intangibles	3	82
Property, plant and equipment	13	19
Inventories	9	8
Trade and other receivables	1	2
Other	3	4
	29	115
Property, plant and equipment held for sale ^(b)	53	4
Assets held for sale	82	119
Liabilities held for sale	1	11

^(a) In 2018, disposal aroups held for sale consists of assets mainlv relatina to Alsa bakina and dessert business which was disposed durina 2019.
^(b) 2019 includes manufacturing assets held for sale in various countries.

23. Related party transactions

A related party is a person or entity that is related to the Group. These include both people and entities that have, or are subject to, the influence or control of the Group.

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

	€ million	€ million
Related party balances	2019	2018
Trading and other balances due from joint ventures	123	121
Trading and other balances due from/(to) associates	-	-

Joint ventures

Sales by Unilever group companies to Unilever FIMA, LDA and Pepsi Lipton joint ventures were €108 million and €60 million in 2019 (2018: €107 million and €65 million) respectively. Sales from Unilever FIMA, LDA and from Pepsi Lipton joint ventures to Unilever group companies were €67 million and €46 million in 2019 (2018: €83 million and €51 million) respectively. Royalties and service fee paid by Unilever FIMA LDA to Unilever group companies were €15 million (2018: €16 million). Balances owed by/(to) Unilever FIMA, LDA and Pepsi Lipton joint ventures at 31 December 2019 were €128 million and €(5) million (2018: €127 million and €(6) million) respectively.

Associates

Langholm Capital Partners invests in private European companies with above-average longer-term growth prospects.

Langholm Capital II was launched in 2009. Unilever has invested €64 million in Langholm Capital II, with an outstanding commitment at the end of 2019 of €11 million (2018: €13 million). During 2019, Unilever received €0 million (2018: €0.3 million) from its investment in Langholm Capital II.

24. Restatement impact of IFRS 16

Upon adoption of IFRS 16, the Group has recognised leases on the balance sheet with a right-of-use asset and related lease liability. Refer to note 1 for a summary of accounting for leases under the new standard. The Group has restated all prior periods for the impact of IFRS 16 in line with the 'full retrospective approach'. The Group has chosen not to recognise short-term leases, which are those less than 12 months, and leases of low-value assets on the balance sheet.

Financial statement impact

The following tables summarise the impact of adopting IFRS 16 on the Group's consolidated financial statements. Only restated lines have been included in the following tables:

(A) Balance sheet

The Group recognised leased assets on the balance sheet representing the right to use of the underlying assets from the lease contracts. Current and non-current lease liabilities were also recognised for the present value of the lease payments due under the lease contracts. Deferred tax adjustments are due to temporary timing differences arising from the recognition of leased assets and lease liabilities. Shareholders' equity has been restated to reflect the cumulative impact of IFRS 16 on retained earnings and currency translation adjustment as a result of IFRS 16 restatement of foreign subsidiaries.

	€ million			€ million
	As at 31 December 2018			As at 31 December 2017
Consolidated balance sheet items	As previously reported	Adjustments for IFRS 16	Restated	As previously reported	Adjustments for IFRS 16	Restated
Non-current assets
Property, plant and equipment	10,347	1,741	12,088	10,411	1,859	12,270
Deferred tax assets	1,117	35	1,152	1,085	33	1,118
Other non-current assets	648	(118)	530	557	(116)	441
Total non-current assets	43,975	1,658	45,633	43,302	1,776	45,078
Current assets
Trade and other current receivables	6,485	(3)	6,482	5,222	(3)	5,219
Total current assets	15,481	(3)	15,478	16,983	(3)	16,980
Total assets	59,456	1,655	61,111	60,285	1,773	62,058
Current liabilities
Financial liabilities	3,235	378	3,613	7,968	410	8,378
Total current liabilities	19,772	378	20,150	23,177	410	23,587
Non-current liabilities
Financial liabilities	21,650	1,475	23,125	16,462	1,577	18,039
Deferred tax liabilities	1,923	(23)	1,900	1,913	(25)	1,888
Total non-current liabilities	27,392	1,452	28,844	22,721	1,552	24,273
Total liabilities	47,164	1,830	48,994	45,898	1,962	47,860
Equity
Shareholders' equity
Other reserves	(15,286)	68	(15,218)	(13,633)	46	(13,587)
Retained profit	26,265	(243)	26,022	26,648	(235)	26,413
	11,572	(175)	11,397	13,629	(189)	13,440
Total equity	12,292	(175)	12,117	14,387	(189)	14,198
Total liabilities and equity	59,456	1,655	61,111	60,285	1,773	62,058

Only impacted lines and key sub-totals are presented in the table above.

(B) Income statement and statement of comprehensive income

Operating profit has been restated to remove operating lease payments previously recognised and to recognise depreciation expense on the leased assets that are now recognised on the balance sheet. Interest expense on lease liabilities has been recognised within finance costs. Adjustments to taxation are due to the change in profit before taxation. Currency translation gains/losses have also been restated to reflect the foreign exchange impact of IFRS 16 on subsidiaries that do not have a euro functional currency.

	€ million			€ million
	For the year ended 31 December 2018			For the year ended 31 December 2017
Consolidated income statement	As previously reported	Adjustments for IFRS 16	Restated	As previously reported	Adjustments for IFRS 16	Restated
Operating profit	12,535	104	12,639	8,857	100	8,957
Finance costs	(591)	(127)	(718)	(556)	(127)	(683)
Profit before taxation	12,383	(23)	12,360	8,153	(27)	8,126
Taxation	(2,575)	3	(2,572)	(1,667)	(3)	(1,670)
Net profit	9,808	(20)	9,788	6,486	(30)	6,456
Attributable to:
Shareholders' equity	9,389	(20)	9,369	6,053	(30)	6,023

	€ million			€ million
	For the year ended 31 December 2018			For the year ended 31 December 2017
Consolidated statement of comprehensive income	As previously reported	Adjustments for IFRS 16	Restated	As previously reported	Adjustments for IFRS 16	Restated
Net profit	9,808	(20)	9,788	6,486	(30)	6,456
Other comprehensive income
Items that may be reclassified subsequently to profit
or loss, net of tax:
Currency retranslation gains/(losses)	(861)	22	(839)	(983)	48	(935)
Total comprehensive income	8,615	2	8,617	6,710	18	6,728
Attributable to:
Non-controlling interests	407	-	407	381	-	381
Shareholders' equity	8,208	2	8,210	6,329	18	6,347

Only impacted lines and key sub-totals are presented in the tables above.

(C) Cash flow statement

There is no impact on overall cash flows on the Group from the adoption of IFRS 16. However, cash outflows for lease payments have been reclassified from cash flows from operating activities to cash flows used in financing activities.

	€ million			€ million
	For the year ended 31 December 2018			For the year ended 31 December 2017
Consolidated statement of cash flows	As previously reported	Adjustments for IFRS 16	Restated	As previously reported	Adjustments for IFRS 16	Restated
Net profit	9,808	(20)	9,788	6,486	(30)	6,456
Taxation	2,575	(3)	2,572	1,667	3	1,670
Net finance costs	481	127	608	877	127	1,004
Operating profit	12,535	104	12,639	8,857	100	8,957
Depreciation, amortisation and impairment	1,747	469	2,216	1,538	487	2,025
Eliminiation of (profits)/losses on disposal	(4,299)	(14)	(4,313)	(298)	-	(298)
Other adjustments	(266)	6	(260)	(153)	-	(153)
Cash flows from operating activities	9,047	565	9,612	9,456	587	10,043
Net cash flows from operating activities	6,753	565	7,318	7,292	587	7,879
Interest paid	(477)	(94)	(571)	(470)	(104)	(574)
Capital element of finance lease rental payments	(10)	10	-	(14)	14	-
Capital element of lease payments	-	(481)	(481)	-	(497)	(497)
Net cash flows (used in)/from financing activities	(11,548)	(565)	(12,113)	(1,433)	(587)	(2,020)

Only impacted lines and key sub-totals are presented in the table above.

(D) Impact on earnings per share

Basic and diluted earnings per share have been restated to reflect the restated net profit attributable to shareholders' equity as per the income statement.

	2018		2017
Combined earnings per share	As previously reported	Restated	As previously reported	Restated
Basic earnings per share	€3.50	€ 3.49	€2.16	€2.15
Diluted earnings per share	€3.48	€3.48	€2.15	€2.14
Underlying earnings per share	€2.36	€2.35	€2.24	€2.23

	€ million 2018		€ million 2017
	As previously reported	Restated	As previously reported	Restated
Net profit	9,808	9,788	6,486	6,456
Non-controlling interests	(419)	(419)	(433)	(433)
Net profit attributable to shareholders' equity - used for basic and diluted earnings per share	9,389	9,369	6,053	6,023
Post tax impact of non-underlying items	(3,024)	(3,024)	262	262
Underlying profit attributable to shareholders' equity - used for underlying earnings per share	6,365	6,345	6,315	6,285

(E) Impact on segment information

Segment information for the Group's divisions and geographical areas has been restated. Operating profit, underlying operating profit, operating margin and underlying operating margin have been restated to reflect the impact of IFRS 16 adoption on the income statement as follows:

	€ million	€ million	€ million	€ million
Segment information	Beauty & Personal Care	Foods & Refreshment	Home Care	Total
2018
Operating profit
As previously reported	4,130	7,245	1,160	12,535
Adjustments for IFRS 16	35	42	27	104
Restated	4,165	7,287	1,187	12,639
Underlying operating profit
As previously reported	4,508	3,534	1,317	9,359
Adjustments for IFRS 16	35	42	27	104
Restated	4,543	3,576	1,344	9,463
Depreciation and amortisation
As previously reported	510	773	256	1,539
Adjustments for IFRS 16	176	176	117	469
Restated	686	949	373	2,008
2017
Operating profit
As previously reported	4,103	3,616	1,138	8,857
Adjustments for IFRS 16	37	41	22	100
Restated	4,140	3,657	1,160	8,957
Underlying operating profit
As previously reported	4,375	3,737	1,288	9,400
Adjustments for IFRS 16	37	41	23	100
Restated	4,412	3,778	1,311	9,500
Depreciation and amortisation
As previously reported	488	802	248	1,538
Adjustments for IFRS 16	153	257	77	487
Restated	641	1,059	325	2,025

	€ million	€ million	€ million	€ million
Regional	Asia/AMET/RUB	The Americas	Europe	Total
2018
Operating profit
As previously reported	4,777	3,586	4,172	12,535
Adjustments for IFRS 16	47	35	22	104
Restated	4,824	3,621	4,194	12,639
Underlying operating profit
As previously reported	4,340	2,694	2,325	9,359
Adjustments for IFRS 16	47	35	22	104
Restated	4,387	2,729	2,347	9,463
2017
Operating profit
As previously reported	3,802	3,086	1,969	8,857
Adjustments for IFRS 16	45	34	21	100
Restated	3,847	3,120	1,990	8,957
Underlying operating profit
As previously reported	4,108	3,063	2,229	9,400
Adjustments for IFRS 16	45	34	21	100
Restated	4,153	3,097	2,250	9,500

25. Remuneration of auditors

This note includes all amounts paid to the Group's auditors, whether in relation to their audit of the Group or otherwise. During the year the Group (including its subsidiaries) obtained the following services from the Group auditors and its associates:

	€ million	€ million	€ million
	2019	2018	2017
Fees payable to the Group's auditors for the audit of the consolidated and parent company accounts of Unilever N.V. and Unilever PLC ^(a)	5	6	4
Fees payable to the Group's auditors for the audit of accounts of subsidiaries of Unilever N.V. and Unilever PLC pursuant to legislation ^(b)	12	10	10
Total statutory audit fees ^(c)	17	16	14
Audit-related assurance services	- ^(d)	- ^(d)	- ^(d)
Other taxation advisory services	- ^(d)	- ^(d)	- ^(d)
Services relating to corporate finance transactions	-	-	-
Other assurance services	- ^(e)	5 ^(e)	5 ^(e)
All other non-audit services	- ^(d)	- ^(d)	- ^(d)

^(a) Of which €1 million was payable to KPMG Accountants N.V. (2018: €1 million; 2017: €1 million) and €4 million was payable to KPMG LLP (2018: €5 million; 2017: €4 million).
^(b) Comprises fees payable to the KPMG network of independent member firms affiliated with KPMG International Cooperative for audit work on statutory financial statements and Group reporting returns of subsidiary companies.
^(c) Amount payable to KPMG in respect of services supplied to associated pension schemes was less than €1 million individually and in aggregate (2018: less than €1 million individually and in aggregate; 2017: less than €1 million individually and in aggregate).
^(d) Amounts paid in relation to each type of service are less than € 1 million individually and in aggregate (2018: less than € 1 million; 2017: € 1 million).
^(e) 2018 includes €4 million (2017: €5 million) for audits and reviews of carve-out financial statements of the Spreads business and €1 million (2017: €Nil) for assurance work on Simplification.

26. Events after the balance sheet date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of these events is adjusted within the financial statements. Otherwise, events after the balance sheet date of a material size or nature are disclosed below.

Dividend

On 30 January 2020 Unilever announced a quarterly dividend with the 2019 fourth quarter results of €0.4104 per NV ordinary share and £0.3472 per PLC ordinary share. The total value of the announced dividend is €1,073 million.

27. Significant subsidiaries

The following represents the significant subsidiaries of the Group as 31 December 2019, that principally affect the turnover, profit and net assets of the Group. The percentage of share capital is shown below represents the aggregate percentage of equity capital directly or indirectly held by NV or PLC in the company. The companies are incorporated and principally operated in the countries under which they are shown except where stated otherwise.

Country	Name of company	NV%	PLC%
Argentina	Unilever de Argentina S.A.	64.55	35.45
Australia	Unilever Australia Limited	-	100
Bangladesh	Unilever Bangladesh Limited	-	60.75
Brazil	Unilever Brasil Ltda.	64.55	35.45
Canada	Unilever Canada Inc.	64.55	35.45
China	Walls (China) Co. Ltd.	100.00	-
China	Unilever Services (Hefei) Co Ltd	100.00	-
England and Wales	Unilever UK & CN Holdings Limited	-	100
England and Wales	Unilever U.K. Holdings Limited	-	100
England and Wales	Unilever UK Limited	5.61	94.39
France	Unilever France S.A.S	64.54	35.45
Germany	Unilever Deutschland GmbH	64.55	35.45
Germany	Unilever Deutschland Holding GmbH	64.55	35.45
India	Hindustan Unilever Limited	-	67.18
Indonesia	PT Unilever Indonesia, Tbk.	54.86	30.13
Italy	Unilever Italia Mkt Operations S.R.L	100.00	-
Japan	Unilever Japan Customer Marketing K.K.	100.00	-
Mexico	Unilever de Mexico, S. de R.l. de C.V.	64.55	35.45
Netherlands	Mixhold B.V.	64.55	35.45
Netherlands	Unilever Finance International B.V.	100.00	-
Netherlands	Unilever Nederland B.V.	100.00	-
Netherlands	Unilever Europe B.V.	100.00	-
Netherlands	UNUS Holding B.V.	55.40	44.60
Pakistan	Unilever Pakistan Limited	-	99.27
Philippines	Unilever Philippines, Inc.	64.55	35.45
Russia	OOO Unilever Rus	11.89	88.11
Singapore	Unilever Asia Private Limited	100.00	-
South Africa	Unilever South Africa (Pty) Limited	8.98	91.02
Spain	Unilever Espana S.A.	100.00	-
Switzerland	Unilever ASCC AG	100.00	-
Switzerland	Unilever Finance International AG	100.00	-
Switzerland	Unilever Supply Chain Company AG	100.00	-
Thailand	Unilever Thai Trading Limited	64.55	35.45
Turkey	Unilever Sanayi ve Ticaret Turk A.S	64.54	35.44
United Arab Emirates	Unilever General Trading LLC	-	49.00
USA	Conopco, Inc.	55.40	44.60
USA	Unilever Capital Corporation	55.40	44.60
USA	Unilever United States, Inc.	55.40	44.60
Vietnam	Unilever Vietnam International Company Limited	100.00	-

Due to the inclusion of certain partnerships in the consolidated group financial statements of Unilever, para 264(b) of the German trade law grants an exemption from the duty to prepare individual statutory financial statements and management reports in accordance with the requirements for limited liability companies and to have these audited and published.

See pages 153 to 160 for a complete list of subsidiary undertakings, associates and joint ventures.

Income statement for the year ended 31 December

		€ million	€ million
	Notes	2019	2018
Turnover	1	2,824	2,976
Operating profit/(loss)	1	833	781
Net finance costs		(30)	(415)
Finance costs		(28)	(31)
Pensions and similar obligations		(2)	(2)
Premium paid on buyback of preference shares	22	-	(382)
Income from shares in group undertakings	2	347	18,111
Profit/(loss) on disposal of intangible assets	3	9	615
(Impairment)/Reversal of impairment of intangible assets		(8)	(11)
Profit before taxation		1,151	19,081
Taxation	4	(136)	(135)
Net profit		1,015	18,946

Statement of comprehensive income forthe year ended 31 December

	€ million	€ million
	2019	2018
Net profit	1,015	18,946
Other comprehensive income
Items that will not be reclassified to profit or loss, net of tax:
Remeasurement of defined benefit pension plans	(6)	(3)
Items that may be reclassified to profit or loss, net of tax:
Other	3	(22)
Total comprehensive income	1,012	18,921

Statement of changes in equity

	€ million	€ million	€ million	€ million	€ million	€ million
	Called up share capital	Share premium account	Legal reserves	Other reserves	Retained profit	Total equity
31 December 2017	275	20	16	(5,881)	15,781	10,211
Profit or loss for the period	-	-	-	-	18,946	18,946
Other comprehensive income net of tax:
Remeasurement of defined benefit pension plans net of tax	-	-	-	-	(3)	(3)
Other	-	-	-	-	(22)	(22)
Total comprehensive income	-	-	-	-	18,921	18,921
Dividends on ordinary capital	-	-	-	-	(2,262)	(2,262)
Hedging gain/(loss) transferred to non-financial assets	-	-	-		99	99
Movements in treasury shares	-	-	-	(3,015)	-	(3,015)
Share-based payment credit	-	-	-	-	38	38
31 December 2018	275	20	16	(8,896)	32,577	23,992
Profit or loss for the period	-	-	-	-	1,015	1,015
Other comprehensive income net of tax:
Remeasurement of defined benefit pension plans net of tax	-	-	-	-	(6)	(6)
Other	-	-	-	-	3	3
Total comprehensive income	-	-	-	-	1,012	1,012
Dividends on ordinary capital	-	-	-	-	(2,352)	(2,352)
Cancellation of treasury shares	(40)	-	-	8,516	(8,476)	-
Movements in treasury shares	-	-	-	26	-	26
Share-based payment credit	-	-	-	-	53	53
31 December 2019	235	20	16	(354)	22,814	22,731

Balance sheet as at 31 December

		€ million	€ million
Assets	Notes	2019	2018
Non-current assets
Intangible assets	5	2,927	2,875
Investments in subsidiaries	6	29,504	29,551
Other non-current assets	7	8,793	9,829
Other financial assets		-	14
		41,224	42,269
Current assets
Trade and other current receivables	8	10,555	10,166
Cash and cash equivalents	9	-	7
Other financial assets		80	62
		10,635	10,235
Total assets		51,859	52,504
Liabilities
Current liabilities
Trade payables and other current liabilities	10	18,748	18,137
Financial liabilities	11	1,164	132
Provisions		-	1
		19,912	18,270
Non-current liabilities
Financial liabilities	11	8,795	9,845
Pensions and similar obligations	12	82	90
Provisions		-	2
Deferred tax liabilities	13	339	305
	-	9,216	10,242
Total liabilities		29,128	28,512
Equity
Shareholders' equity
Called up share capital	15	235	275
Share premium account	16	20	20
Legal reserves	17	16	16
Other reserves	18	(354)	(8,896)
Retained profit	19	22,814	32,577
	14	22,731	23,992
Total liabilities and equity		51,859	52,504

For the information required by Article 2:392 of the Dutch Civil Code, refer to pages 79 to 86. Pages 145 to 148 are part of the notes to the Unilever N.V. company accounts.

Notes to the Company Accounts Unilever N.V.

Accounting information and policies

Basis of preparation

The company accounts of Unilever N.V. (the Company) were prepared on the going concern basis and comply in all material respects with legislation in the Netherlands. As allowed by Article 2:362.1 of the Dutch Civil Code, the company accounts are prepared in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS 101), unless such standards conflict with the Dutch Civil Code which would in such case prevail.

The accounts are prepared under the historical cost convention, except for the revaluation of financial assets classified as 'fair value through other comprehensive income'or'fair value through profit or loss', pension assets, as well as derivative financial instruments, which are reported in accordance with the accounting policies set out below. These have been consistently applied to all periods presented.

Unilever N.V. is included within the consolidated financial statements of the Group. The consolidated financial statements of the Group are prepared in accordance with International Financial Reporting Standards as issued by the IASB and as adopted by the European Union.

As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to share-based payments, financial instruments, capital management, presentation of comparative information in respect of certain assets, presentation of a cash flow statement, impairment of assets, non-current assets held for sale, discontinued operations, business combinations, related-party transactions and standards notyet effective. Where required equivalent disclosures are given in the group accounts of Unilever, which are available within this report.

Accounting policies

The principal accounting policies are as follows:

Foreign currency

The Company's functional and presentational currency is the Euro. Transactions in foreign currencies are translated to the Company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated inforeign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account (except for differences arising on the retranslation of qualifying cash flow hedges, which are recognised in other comprehensive income).

Turnover

Turnover excludes value added tax and is royalties and service fees received from Group companies. Royalty income from brand and technology licence arrangements is recognised at the time sales are made by Group companies. Revenue from services is recognised overtime based on the usage of these services by Group companies.

Operating profit/(loss)

The operating profit/(loss) is stated after deducting the costs that are mainly related to the royalties and delivered services. Expenses are allocated to the period in which they relate.

Net finance costs

Net finance costs are comprised of finance costs and finance income, including net finance costs in relation to pensions and similar obligations.

Taxation

Unilever N.V., together with certain of its subsidiaries, is part of a tax grouping for Dutch corporate income tax purposes. Unilever N.V. is the head of the fiscal unity. The members of the fiscal unity are jointly and severally liable for any taxes payable by the Dutch tax grouping.

Intangible assets

Finite life intangible assets mainly comprise patented and non-patented technology, licences and software including intangible assets acquired from the Group companies. These assets are capitalised and amortised on a straight-line basis in the income statement over the period of their expected useful lives, orthe period of legal rights if shorter. None of the amortisation periods exceeds 15 years. Indefinite-life intangible assets mainly comprise trademarks and brands. These assets are capitalised at cost but not amortised. They are subject to a review for impairment annually, or more frequently if events or circumstances indicate this is necessary. Any impairment is charged to the income statement as it arises.

Business combinations are accounted for using the acquisition accounting method as at the acquisition date which is the date at which control was transferred to Unilever. Goodwill is measured at the acquisition date as the fair value of consideration transferred, plus non-controlling interests and the fair value of any previously-held equity interests less the net recognised amount (which is generally fair value) of the identifiable assets and liabilities assumed. Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated losses. Any impairment is charged to the income statement as it arises.

Investments in subsidiaries

Shares in group companies are stated at amortised cost less any amounts written off to reflect impairment. Any impairment is charged to the profit and loss account as it arises.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Financial instruments

The Company's accounting policies are the same as the Unilever Group's and comply with International Accounting Standard 32 'Financial Instruments: Presentation'(IAS 32), IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures'. The policies are set out under the heading 'Capital and funding' in note 15 to the consolidated accounts on pages 116 to 120. Unilever N.V. is taking the exemption for financial instruments disclosures, because IFRS 7 disclosures are given in notes 15 to 18 to the consolidated accounts on pages 116 to 132.

Non-derivative financial instruments

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

Deferred taxation

Deferred tax is recognised using the liability method on taxable temporary differences between the tax base and the accounting base of items included in the balance sheet of the Company. Certain temporary differences are not provided for as follows:

• goodwill not deductible for tax purposes;

• the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and

• differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, at the year end.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Treasury shares

Shares held to satisfy options are accounted for in accordance with IAS 32 'Financial Instruments: Presentation'. All differences between the purchase price of the shares held to satisfy options granted and the proceeds received forthe shares, whether on exercise or lapse, are charged to other reserves.

Retirement benefits

Unilever N.V. is the sponsoring employer to a number of pension schemes.

There are formal agreements in place for how the contributions to be paid are split between participating companies. Accordingly, Unilever N.V. recognises the assets and liabilities of the schemes of which it is a sponsoring employer in full on the NV balance sheet. The recovery of contributions from other employing entities is in line with the existing agreements that are already in place.

Unilever N.V. has accounted for pensions and similar benefits under IAS 19 'Employee Benefits'. The operating and financing costs of defined benefit plans are recognised separately in the profit and loss account; service costs are systematically spread over the service lives of employees; and financing costs are recognised in the periods in which they arise. Variations from expected costs, arising from the experience of the plans or changes in actuarial assumptions, are recognised immediately in other comprehensive income. The costs of individual events such as past benefits, enhancements, settlements and curtailments are recognised immediately in the profit and loss account. The liabilities and, where applicable, the assets of defined benefit plans are recognised at fair value in the balance sheet. The charges to the profit and loss account for defined contribution plans are Unilever N.V. contributions payable and the assets of such plans are not included in Unilever N.V.'s balance sheet.

Provisions

Provisions are recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable.

Dividends

Under IAS 10 'Events after the Balance Sheet Date', proposed dividends do not meet the definition of a liability. Therefore, we do not recognise a liability in any period for dividends that have been proposed but will not be approved until after the balance sheet date. This holds for external dividends as well as intra-group dividends paid to the parent company.

Financial guarantees

Where the Company enters into financial guarantee contracts to guarantee the indebtedness of other companies within its group, the Company considers these to be insurance arrangements and accounts for them as such. In this respect, the Company treats the guarantee contract as a contingent liability until such time as it becomes probable that the Company will be required to make a payment under the guarantee.

IFRS 16 - Leases

Unilever N.V. does not have any lease arrangements on a standalone basis and so there is no impact of IFRS 16.

1. Operating profit/(loss)

	€ million	€ million
	2019	2018
Turnover	2,824	2,976
Royalties and services charged out to group companies	2,824	2,976
Administrative expenses	(1,991)	(2,195)
Incurred costs and royalties paid	(1,743)	(1,945)
Amortisation of finite-life intangible assets and software	(95)	(91)
Other administrative expenses	(153)	(159)
Operating profit	833	781

2. Income from shares in group undertakings

	€ million	€ million
	2019	2018
Dividends received from shares in Group undertakings	347	18,111
	347	18,111

3. Profit/(loss) on disposal of intangible assets

	€ million	€ million
	2019	2018
Profit on disposal of intangible assets	9	615
	9	615

The profit recognised in 2018 arose from the disposal of a trademark as part of the spreads disposals.

4. Taxation

	€ million	€ million
Tax charge in income statement	2019	2018
Current tax
Current year	(180)	(148)
Utilisation of prior year tax credits	85	78
Adjustments in respect of prior years	(12)	9
	(107)	(61)
Deferred tax
Origination and reversal of temporary differences	(18)	(147)
Adjustments in respect of prior years	(11)	73
	(29)	(74)
Total tax expense	(136)	(135)

	€ million	€ million
Reconciliation of tax expense	2019	2018
Profit/(loss) for the year	1,151	19,081
Tax using the Dutch statutory corporate income tax rate of 25% (2018: 25%)	(288)	(4,770)
Tax effects of:
Income not subject to tax (primarily tax exempt dividends)	87	4,528
Non recoverable withholding tax	(27)	(35)
(Under)/over provided in prior years	(10)	-
Reduction in tax rate on deferred tax balances	(12)	79
Utilisation of prior year tax credit	85	78
Other	29	(15)
Total tax expense	(136)	(135)

5. Intangible assets

	€ million	€ million	€ million	€ million	€ million
			Finite-life intangible assets
	Goodwill	Indefinitelife intangible assets	Software	Other	Total
Cost
At 1 January 2019	399	1,637	137	1,304	3,477
Additions	-	129	-	26	155
At 31 December 2019	399	1,766	137	1,330	3,632
Amortisation and Impairment
At 1 January 2019	-	(11)	(137)	(454)	(602)
Amortisation/ impairment for the year	-	(8)	-	(95)	(103)
At 31 December 2019	-	(19)	(137)	(549)	(705)
Net book value 31 December 2019	399	1,747	-	781	2,927
Net book value 31 December 2018	399	1,626	-	850	2,875

Impairment testing has been performed for goodwill and indefinite life intangible assets. Value in use of these assets is calculated as the present value of future cash flows and is based on the expected royalty income taken from our annual forecast and strategic plans over the next five to ten years. We consider each acquisition separately to determine the most appropriate timescale before applying a fixed terminal value multiple to the final year net cash flows.

6. Investments in subsidiaries

	€ million
Cost
At 1 January 2019	29,551
Disposal	(47)
At 31 December 2019	29,504
Impairment losses
At 1 January 2019	-
At 31 December 2019	-
Net book value 31 December 2019	29,504
Net book value 31 December 2018	29,551

Details of the company's subsidiary undertakings are given on pages 153 to 160. Impairment testing has been performed for investments in subsidiaries by comparing the carrying amount of each investment with the relevant subsidiary balance sheet to identify whether its net assets exceed the investment amount. If the investment was lower than the subsidiary net assets, a discounted cash flow was calculated by computing the present value of future cash flows over the next five years and applying a fixed terminal value multiple to the finalyear net cash flows.

7. Other non-current assets

	€ million	€ million
	2019	2018
Loans to group companies ^(a)	8,793	9,829

^(a) Loans to group companies include balances with group companies which are interest bearing at market rates are unsecured and repayable on demand.

Unilever N.V. does not consider the fair value of loans to group companies to be significantly different from their carrying values. As these are amounts due from other entities within the Group, Unilever N.V. has estimated the expected credit losses to be immaterial. Our historical experience of collecting these balances supported by the level of default confirms that the credit risk is low.

8. Trade and other current receivables

	€ million	€ million
	2019	2018
Loans to group companies ^(b)	1,048	20
Amounts due from group companies ^(b)	9,403	10,024
Taxation	30	28
Other	74	94
	10,555	10,166

^(b) Amounts due from group companies are mainly interest bearing amounts that are repayable on demand. Other amounts are interest free and settled monthly. Loans to group companies are all interest bearing at market rates and are unsecured, repayable on demand and supported by formal agreements.

Unilever N.V. does not consider the fair value of loans to group companies and amounts due from group companies to be significantly different from their carrying values. As these are amounts due from other entities within the Group, Unilever N.V. has estimated the expected credit losses to be immaterial Our historical experience of collecting these balances supported by the level of default confirms that the credit risk is low.

9. Cash and cash equivalents

There was no cash at bank and in hand for which payment notice was required at either 31 December 2019 or 31 December 2018.

10. Trade payables and other current liabilities

	€ million	€ million
	2019	2018
Other amounts owed to group companies ^(c)	13,131	11,907
Loans from group companies ^(c)	5,394	6,012
Other	223	218
	18,748	18,137

^(c) Amounts due to group companies are mainly interest bearing amounts that are repayable on demand. Other amounts are interest free and settled monthly. Loans from group companies are all interest bearing at market rates and are unsecured, repayable on demand and supported by formal agreements.

11. Financial liabilities

	€ million	€ million
	2019	2018
Current
Bonds and other loans	1,050	-
Other	114	132
	1,164	132
Non-current
Bonds and other loans	8,795	9,831
Accruals and deferred income	-	2
Other	-	12
	8,795	9,845

Bonds and other loans include notes with a face value of €9,900 million (year-end amortised cost €9,842 million) issued between 2013 and 2018. These notes were issued at coupon rates ranging between 0% and 1.75% and with maturity dates between 2020 and 2033. Further details are given in note 15C to the consolidated accounts on page 120.

12. Pensions and similar obligations

	€ million	€ million
	2019	2018
Funded retirement (benefit)/liability	(1)	3
Unfunded retirement liability	83	87
	82	90

In respect of the key assumptions for the Netherlands, disclosures are given in note 4B to the consolidated accounts on pages 98 to 103.

13. Deferred tax liabilities

	€ million
At 1 January 2019	305
Income statement:
Charges	29
Releases	-
Utilisation	-
Other	5
At 31 December 2019	339
Due within one year	-
Due after one year	339

At the balance sheet date, Unilever N.V. has unused tax credits amounting to €250 million (2018: €304 million) available for offset against future tax profits. Deferred tax assets have not been recognised as it is not probable that there will be future taxable profits against which the credits will be utilised.

14. Capital and reserves

	€ million	€ million
	2019	2018
Company accounts Unilever N.V.	22,731	23,992
Unilever Group: shareholders' equity	13,192	11,397

The equity of the Unilever Group €13,192 million (2018: €11,397 million) includes the equity of Unilever N.V. €22,731 million (2018: €23,992 million), and the equity of Unilever PLC £7,216 million (2018: £3,448 million). The difference arises from recognising investments in subsidiaries in the Unilever N.V. accounts at cost less any amounts written off to reflect impairment, not eliminating intra-group balances and transactions and not performing other consolidation procedures which are performed for the Unilever Group financial statements.

15. Called up share capital

The called up share capital amounting to €235 million (2018: €275 million) consists of 1,460,714,804 (2018: 1,714,727,700) Unilever N.V. ordinary shares and 2,400 (2018: 2,400) Unilever N.V. ordinary special shares. These special shares numbered 1 to 2,400 are held by a subsidiary of Unilever N.V. and a subsidiary of Unilever PLC, each holding 50%. Further details are given in note 15A to the consolidated accounts on page 117.8,018,615 (2018: 263,332,691) of the ordinary shares are held by Unilever N.V. (see note 18) and 9,264 (2018: 16,420) ordinary shares are held by other group companies.

16. Share premium

The share premium shown in the balance sheet is not available for the issue of bonus shares or for repayment without incurring withholding tax payable by Unilever N.V.

17. Legal reserves

In 2006 the Unilever N.V. ordinary shares were split in the ratio 3 to 1 and at the same time the share capital, previously denominated in Dutch guilders, was converted into euros. Due to rounding the new nominal value per share differs from the value expressed in Dutch guilders. As a result, the reported share capital issued at 31 December 2006 was €16 million lower than in 2005.

18. Other reserves

	€ million	€ million
	2019	2018
1 January	(8,896)	(5,881)
Change during the year	8,542	(3,015)
31 December	(354)	(8,896)

During 2019, 254,012,896 (2018: Nil) ordinary shares held in treasury were cancelled. The amount paid to repurchase these shares was initially recognised in other reserves and was transferred to retained profit on cancellation

Unilever N.V. holds 8,018,615 (2018: 263,332,691) of its own ordinary shares. These are held as treasury shares within other reserves.

19. Retained profit

	€ million	€ million
	2019	2018
1 January	32,577	15,781
Profit for the year	1,015	18,946
Dividends	(2,352)	(2,262)
Realised profit on shares/certificates held to meet employee share options.	53	38
Share Cancellation	(8,476)	-
Other credits/(charges)	(3)	74
31 December	22,814	32,577

Unilever N.V. approved the waiver by one of its subsidiaries of dividends receivable of €3,047 million in 2019. The profits for the year in that subsidiary are reduced by this amount.

20. Profit for the year

	€ million	€ million
	2019	2018
Company accounts Unilever N.V.	1,015	18,946
Unilever Group excluding non-controlling interest	5,625	9,369

The net profit of Unilever Group of €6,026 million (2018: €9,788 million) includes the net profit of parent Unilever N.V. €1,015 million (2018: €18,946 million) and the net profit of parent Unilever PLC £5,425 million (2018: £2,284 million). The remaining difference arises due to write off impact of permanent impairment, inter-group elimination of transactions and other consolidated procedures.

21. Contingent liabilities and financial commitments

Unilever N.V. has issued joint and several liability undertakings, as defined in Article 2:403 of the Dutch Civil Code, for almost all Dutch group companies. These written undertakings have been filed with the office of the Company Registry in whose area of jurisdiction the group company concerned has its registered office.

The total amount of guarantees, is € 19,221 million (2018: € 17,560 million). This consists mainly of joint guarantees with Unilever PLC and Unilever United States, Inc. relating to the long-term debt and commercial paper issued by Unilever PLC and/or Unilever Capital Corporation Inc. Unilever N.V. also guarantees some borrowings of other group companies and some contingent consideration of group companies relating to past business acquisitions. Other joint guarantees with Unilever PLC relate to derivatives taken out by group companies.

Additionally, Unilever N.V. jointly with Unilever PLC and Unilever United States, Inc. has guaranteed the standby facilities of $7,865 million (2018: $7,865 million) which remain undrawn as at 31 December 2019 and 2018.

Unilever N.V. also has guarantees and financial commitments including indemnities arising from past business disposals and for certain global service contracts. No value can be attributed to these financial commitments at this time.

The likelihood of these guarantees, financial commitments and contingencies being called is considered to be remote and so accordingly the fair value is deemed to be immaterial.

In 2019 a tax assessment was issued in connection with the UK tax audit that commenced in 2015 relating to the financial periods from 2011 to 2017. The total amount of the tax assessment is €141 million. Please refer to note 20 on page 133 for further detail.

22. Purchase of Unilever N.V. preference shares

On 2 October 2018 Unilever N.V. repurchased the issued and outstanding 6% and 7% preference shares from Unilever Corporate Holdings B.V., a wholly owned subsidiary of Unilever PLC. Consideration paid forthe repurchase of preference shares was € 450 million. As the preference shares were classified as debt in the balance sheet, the difference between consideration paid and carrying value of the shares of € 382 million is recorded within the finance costs in the income statement. The preference shares were cancelled in February 2019.

23. Remuneration of auditors

For details of the remuneration of the auditors please refer to note 25 on page 141.

24. Directors' remuneration

Information about the remuneration of Directors is given in the tables noted as audited in the Directors' Remuneration Report on pages 60 to 77 incorporated and repeated here by reference. Information on key management compensation is provided in note 4A to the consolidated group financial statements on page 97.

25. Employee information

During 2019 the average number of employees employed by Unilever N.V. was 16, of whom 15 worked abroad.

26. The rules for profit appropriation in the articles of association (summary of article 38)

The profit for the year is applied firstly to the reserves required by law or by the Equalisation Agreement, secondly to cover losses of previous years, if any, and thirdly to the reserves deemed necessary by the Board of Directors. Dividends due to the holders of the preference shares, if any, including any arrears in such dividends, are then paid; if the profit is insufficient for this purpose, the amount available is distributed to them in proportion to the dividend percentages of their shares. Any profit remaining thereafter shall be distributed to the holders of ordinary shares in proportion to the nominal value of their respective holdings of ordinary shares. The General Meeting can only decide to make distributions from reserves on the basis of a proposal by the Board and in compliance with the law and the Equalisation Agreement.

27. Proposed profit appropriation

	€ million	€ million
	2019	2018
Profit for the year (available for distribution)	1,015	18,946
Dividend	(1,789)	(1,719)
To profit retained	(774)	17,227

28. Post-balance sheet events

On 30 January 2020 the Directors announced a dividend of €0.4104 per Unilever N.V. ordinary share. The dividend is payable from 18 March 2020 to shareholders registered at the close of business on 21 February 2020.

29. Special controlling rights under the articles of association

See note 15 to the consolidated accounts on pages 116 to 120.

30. Independent auditors

A resolution will be proposed at the Annual General Meeting on 30 April 2020 for the reappointment of KPMG Accountants N.V. as auditors of Unilever N.V.

Corporate centre

Unilever N.V. Weena 455, PO Box 760, 3000 DK Rotterdam, The Netherlands

4 March 2020

The Board of Directors

Company Accounts

Unilever PLC

Balance sheet as at 31 December

		£ million	£ million
	Notes	2019	2018
Assets
Non-current assets
Intangible assets	1	183	165
Investments in subsidiaries	2	8,365	8,365
Other non-current assets	3	1,544	496
Deferred tax assets		14	18
		10,106	9,044
Current assets
Trade and other current receivables	4	4,103	1,659
		4,103	1,659
Total assets		14,209	10,703
Liabilities
Current liabilities
Trade payables and other current liabilities	5	5,099	6,410
		5,099	6,410
Non-current liabilities
Financial liabilities	6	1,892	843
Provisions		2	2
		1,894	845
Total liabilities		6,993	7,255
Equity
Shareholders' equity
Called up share capital	7	36	37
Share premium account		94	94
Capital redemption reserve		15	11
Other reserves	8	-	(777)
Retained profit	9	7,071	4,083
		7,216	3,448
Total liabilities and equity		14,209	10,703

Statement of changes in equity

	£ million	£ million	£ million	£ million	£ million	£ million
Statement of changes in equity	Called up share capital	Share premium account	Capital redemption reserve	Other reserves	Retained profit	Total equity
31 December 2017	41	94	11	(2,596)	7,890	5,440
Profit or loss for the period	-	-	-	-	2,284	2,284
Dividends on ordinary capital	-	-	-	-	(1,602)	(1,602)
Repurchase of shares	-	-	-	(2,666)	-	(2,666)
Cancellation of treasury shares	(4)	-	-	4,485	(4,481)	-
Other movements in equity	-	-	-	-	(8)	(8)
31 December 2018	37	94	11	(777)	4,083	3,448
Profit or loss for the period	-	-	-	-	5,425	5,425
Dividends on ordinary capital	-	-	-	-	(1,649)	(1,649)
Cancellation of treasury shares	(1)	-	4	777	(782)	(2)
Other movements in equity	-	-	-	-	(6)	(6)
31 December 2019	36	94	15	-	7,071	7,216

The total profit for 2019 was £5,425 million (2018: £2,284 million).

The financial statements on pages 149 to 152 were approved by the Board of Directors on 4 March 2020 and signed on its behalf by N Andersen and A Jope.

On behalf of the Board of Directors

4 March 2020

A Jope, Chief Executive Officer

C Pitkethly, Chief Financial Officer

Notes to the Company Accounts Unilever PLC

Accounting information and policies

Basis of preparation

These financial statements were prepared on the going concern basis and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework'(FRS 101) and the UK Companies Act 2006. The Companies, Partnership and Groups (Accounts and Reports) Regulations 2015 have been adopted from 1 January 2015. No profit and loss account is presented by Unilever PLC (the Company) as permitted by Section 408 of the Companies Act 2006.

The accounts are prepared under the historical cost convention, except for the revaluation of financial assets classified as 'fair value through other comprehensive income' or 'fair value through profit or loss', as well as derivative financial instruments, which are reported in accordance with the accounting policies set out below. These have been consistently applied to all periods presented.

Unilever PLC is included within the consolidated financial statements of the Group. The consolidated financial statements of the Group are prepared in accordance with International Financial Reporting Standards as issued by the IASB and as adopted by the European Union.

As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to share based payments, financial instruments, capital management, presentation of comparative information in respect of certain assets, presentation of a cash flow statement, impairment of assets, non-current assets for sale, discontinued operations, business combinations, related party transactions and standards not yet effective. Where required equivalent disclosures are given in the group accounts of Unilever, which are publicly available.

Accounting policies

The principal accounting policies are as follows:

Foreign currency

The Company's functional and presentational currency is Pound Sterling. Transactions in foreign currencies are translated to the Company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the date the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.

Taxation

Current tax is the expected tax payable on the taxable income for the period, using the tax rates enacted or substantively enacted at the balance sheet date, and any adjustments to tax payable in respect of previous periods.

Intangible assets

Finite-life intangible assets mainly comprise licences. These assets are capitalised and amortised on a straight-line basis in the profit and loss account over the period of their expected useful lives, or the period of legal rights if shorter. None of the amortisation periods exceed 15 years. Indefinite-life intangible assets mainly comprise trademarks and brands. These assets are capitalised at cost but not amortised. They are subject to a review for impairment annually, or more frequently if events or circumstances indicate this is necessary. Any impairment is charged to the profit and loss account as it arises.

Investments in subsidiaries

Shares in group companies are stated at amortised cost less any amounts written off to reflect impairment. Any impairment is charged to the profit and loss account as it arises.

Financial instruments

The Company's accounting policies are the same as the Unilever Group's and comply with International Accounting Standard 32 'Financial Instruments: Presentation' (IAS 32), IFRS 9 'Financial Instruments' and IFRS 7 'Financial Instruments: Disclosures'. The policies are set out under the heading 'Capital and funding' in note 15 to the consolidated accounts on pages 116 to 120. Unilever PLC is taking the exemption for financial instruments disclosures, because IFRS 7 disclosures are given in notes 15 to 18 to the consolidated accounts on pages 116 to 132.

Non-derivative financial instruments

Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables. Trade and other receivables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses. Trade and other payables are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

Deferred taxation

Deferred tax is recognised using the liability method on taxable temporary differences between the tax base and the accounting base of items included in the balance sheet of the Company. Certain temporary differences are not provided for as follows:

• the initial recognition of assets or liabilities that affect neither accounting nor taxable profit; and

• differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted, or substantively enacted, at the year end.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Treasury shares

Shares held to satisfy options are accounted for in accordance with IAS 32 'Financial Instruments: Presentation'. All differences between the purchase price of the shares held to satisfy options granted and the proceeds received forthe shares, whetheron exercise or lapse, are charged to other reserves.

Provisions

Provisions are recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable.

Dividends

Under IAS 10 'Events after the Balance Sheet Date', proposed dividends do not meet the definition of a liability. Therefore, we do not recognise a liability in any period for dividends that have been proposed but will not be approved until after the balance sheet date. This holds for external dividends as well as intra-group dividends paid to the parent company.

Financial guarantees

Where the Company enters in financial guarantee contracts to guarantee the indebtedness of other companies within its group, the Company considers these to be insurance arrangements and accounts for them as such. In this respect, the Company treats the guarantee contract as a contingent liability until such time as it becomes probable that the Company will be required to make a payment under the guarantee.

IFRS 16 - Leases

Unilever PLC does not have any lease arrangements on a standalone basis and so there is no impact of IFRS 16.

Capital Redemption Reserve

The nominal value of shares cancelled is transferred from share capital to the capital redemption reserve.

1. Intangible assets

	£ million	£ million	£ million
	Indefinitelife intangible assets	Finite-life intangible assets	Total
Cost
At 1 January 2019	73	166	239
Additions	29	-	29
At 31 December 2019	102	166	268
Amortisation and impairment
At 1 January 2019	-	(74)	(74)
Amortisation for the year	-	(11)	(11)
At 31 December 2019	-	(85)	(85)
Net book value 31 December 2019	102	81	183
Net book value 31 December 2018	73	92	165

Impairment testing has been performed for indefinite life intangible assets. Value in use of these assets is calculated as the present value of future cash flows and is based on the expected royalty income taken from our annual forecast and strategic plans over the next five to ten years. We consider each acquisition separately to determine the most appropriate timescale before applying a fixed terminal value multiple to the final year net cash flows.

2. Investments in subsidiaries

	£ million
Cost
At 1 January 2019	8,370
At 31 December 2019	8,370
Impairment losses
At 1 January 2019	(5)
At 31 December 2019	(5)
Net book value 31 December 2019	8,365
Net book value 31 December 2018	8,365

Investments in subsidiaries comprise equity shares of group companies. Impairment testing has been performed for investments in subsidiaries by comparing the carrying amount of each investment with the relevant subsidiary balance sheet to identify whether its net assets exceed the investment amount. If the investment was lower than the subsidiary net assets, a discounted cash flow was calculated by computing the present value of future cash flows over the next five years and applying a fixed terminal value multiple to the final year net cash flows.

Investments include the subsidiary company Hindustan Unilever Limited, with a cost of £2,197 million (2018: £2,197 million). These shares are listed on the Bombay Stock Exchange and have a market value of £22,900 million (2018: £22,826 million) as at 31 December 2019.

Information on the company's subsidiary undertakings given on pages 153 to 160 forms part of these financial statements.

3. Other non-current assets

	£ million	£ million
	2019	2018
Loans to group companies ^(a)	1,544	496
	1,544	496

^(a) Loans to group companies are interest bearing at market rates and are unsecured and repayable on demand.

Unilever PLC does not consider the fair value of loans to group companies to be significantly different from their carrying values. As these are amounts due from other entities within the Group, Unilever PLC has estimated the expected credit losses to be immaterial. Our historical experience of collecting these balances supported by the level of default confirms that the credit risk is low.

4. Trade and other current receivables

	£ million	£ million
	2019	2018
Amounts due from group companies ^(b)	4,103	1,659
	4,103	1,659

^(b) Amounts due from group companies are mainly interest bearing amounts that are repayable on demand. Other amounts are interest free and settled monthly.

Unilever PLC does not consider the fair value of amounts due from group companies to be significantly different from their carrying values. As these are amounts due from other entities within the Group, Unilever PLC has estimated the expected credit losses to be immaterial. Our historical experience of collecting these balances supported by the level of default confirms that the credit risk is low.

5. Trade payables and other current liabilities

	£ million	£ million
	2019	2018
Loans from group companies ^(c)	3,000	3,072
Amounts owed to group companies ^(c)	2,074	3,321
Taxation and social security	10	11
Accruals and deferred income	15	6
	5,099	6,410

^(c) Amounts due to group companies are mainly interest bearing amounts that are repayable on demand. Other amounts are interest free and settled monthly. Loans from group companies are all interest bearing at market rates and are unsecured, repayable on demand and supported by formal agreements.

6. Financial liabilities

	£ million	£ million
	2019	2018
Bonds and other loans
Non-current ^(d)	1,892	843
	1,892	843

^(d) This includes £500 million 1.5% note (year-end amortised cost £496 million), €650 million 1.5% note (year-end amortised cost £552 million) issued in 2019, £250 million 1.875% note (year-end amortised cost £247 million), £250 million 1.375% note (year-end amortised cost £249 million) and £350 million 1.125% note issued in 2017 (year-end amortised cost £348 million) maturing in 2026, 2039, 2029, 2024 and 2022 respectively.

7. Called up share capital

The called up share capital amounting to £36 million at 31 December 2019 (31 December 2018: £37 million) consists of 1,168,530,650 (2018: 1,187,191,284) Unilever PLC ordinary shares and 100,000 (2018: 100,000) Unilever PLC deferred stock. 50% of the deferred stock of Unilever PLC is held by N.V. Elma - a subsidiary of Unilever N.V. and 50% of the deferred stock of Unilever PLC is held by United Holdings Limited - a subsidiary of Unilever PLC.

8. Other reserves

	£ million	£ million
	2019	2018
1 January	(777)	(2,596)
Change during the year:
Shares bought back	-	(2,666)
Cancellation of shares	777	4,485
31 December	-	(777)

During 2019 18,660,634 (2018:122,965,077) ordinary shares held in treasury were cancelled. The amount paid to repurchase these shares was initially recognised in other reserves and was transferred to retained profit on cancellation.

Unilever PLC holds none (31 December 2018:18,660,634) of its own ordinary shares. These were held as treasury shares within other reserves.

9. Retained profit

	£ million	£ million
	2019	2018
1 January	4,083	7,890
Profit for the year	5,425	2,284
Cancellation of shares ^(e)	(782)	(4,481)
Other movements	(6)	(8)
Dividends paid ^(f)	(1,649)	(1,602)
31 December	7,071	4,083

^(e) During 2019, 18,660,634 ordinary shares held in treasury were cancelled. The amount paid to repurchase these shares was initially recognised in other reserves and was transferred to retained profit on cancellation.
^(f) Further details are given in note 8 to the consolidated accounts on page 108.

10. Profit appropriation

	£ million	£ million
	2019	2018
Profit for the year (available for distribution)	5,425	2,284
Dividends ^(g)	(1,258)	(1,215)
To profit retained	4,167	1,069

^(g) The dividend to be paid in March 2020 (see note 13) is not included in the 2019 dividend amount.

11. Contingent liabilities and financial commitments

The total amount of guarantees is £22,688 million (2018: £23,456 million). This mainly consists of guarantees relating to the long-term debt and commercial paper issued by Unilever N.V. and/or Group companies such as Unilever Capital Corporation Inc., some of which are joint with Unilever N.V. and Unilever United States Inc. Other joint guarantees with Unilever N.V. relate to derivatives taken out by Group companies. There is also a guarantee to the pension fund in respect of the UK pension scheme.

Additionally, Unilever PLC jointly with Unilever N.V. and Unilever United States, Inc. has guaranteed the standby facilities of $7,865 million (2018: $7,865 million which remain undrawn as at 31 December 2019 and 2018.

Unilever PLC has financial commitments including indemnities arising from past business disposals and trademarks used by joint ventures. No value can be attributed to these financial commitments at this time.

The likelihood of these guarantees, financial commitments and contingencies being called is considered to be remote and so accordingly the fair value is deemed to be immaterial.

12. Remuneration of auditors

The parent company accounts of Unilever PLC are required to comply with The Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) Regulations 2008. Auditors remuneration in respect of Unilever PLC is included within the disclosures in note 25 on page 141.

13. Post balance sheet events

On 30 January 2020 the Directors announced a dividend of £0.3472 per Unilever PLC ordinary share. The dividend is payable from 18 March 2020 to shareholders registered at the close of business on 21 February 2020.

Group Companies

As at 31 December 2019

In accordance with Articles 2:379 and 2:414 of the Dutch Civil Code and Section 409 of the Companies Act 2006 a list of subsidiaries, partnerships, associates and joint ventures as at 31 December 2019 is set out below. All subsidiary undertakings are subsidiary undertakings of their immediate parent under taking(s) pursuant to section 1162 (2) (a) of the Companies Act 2006 unless otherwise indicated - see the notes on page 160. All subsidiary undertakings not included in the consolidation are not included because they are not material for such purposes. All associated undertakings are included in the Unilever Group's financial statements using the equity method of accounting unless otherwise indicated - see the notes on page 160. See page 142 of the Annual Report and Accounts for a list of the significant subsidiaries.

Companies are listed by country and under their registered office address. The aggregate percentage of capital held by the Unilever Group is shown after the subsidiary company name, except where it is 100%. If the Nominal Value field is blank, then the Share Class Note will identify the type of interest held in the entity.

Subsidiary undertakings included in the consolidation

Name of Undertaking	% holding as between NV/PLC	Nominal Value	Share Class Note
Algeria - Zone Industrielle Hassi Ameur Oran 31000
Unilever Algérie SPA (72.50)	72.50/0	DZD1,000.00	1
Argentina - Tucumán 1, Piso 4°, Cdad. de Buenos Aires
Arisco S.A.	64.55/35.45	ARA1.00	1
Unilever De Argentina S.A.	64.55/35.45	ARA1.00	1
Club de Beneficios S.A. (98) Argentina - Mendoza km 7/8 - Pocitos, San Juan	63.26/34.74	ARA1.00	1
Helket S.A.	64.55/35.45	ARA1.00	1
Australia - Level 17,2-26 Park Street, Sydney, NSW 2000
Ben & Jerry's Franchising Australia Limited	0/100	AUD1.00	1
Tea Too Pty Limited	0/100	AUD1.00	1
TIGI Australia Pty Limited	0/100	AUD1.00	2
	0/100	AUD1.00	3
Unilever Australia (Holdings) Pty Limited	0/100	AUD1.00	1
Unilever Australia Group Partnership	0/100		4
Unilever Australia Group Pty Limited	0/100	AUD2.00	1
	0/100	AUD1.00	2
	0/100	AUD1.00	3
Unilever Australia Limited	0/100	AUD1.00	1
Unilever Australia Supply Services Limited	0/100	AUD1.00	1
Unilever Australia Trading Limited	0/100	AUD1.00	1
Australia - 111 Chandos Street, Crows Nest, NSW 2065
Dermalogica Holdings Pty Limited	0/100	AUD1.00	1
Dermalogica Pty Limited	0/100	AUD2.00	1
Australia - DLA Piper - Australia. Level 22, No. 1 Martin Place, Sydney NSW 2000
Dollar Shave Club Australia Pty Limited	55.40/44.60	AUD1.00	1
Austria-Stella-Klein-Löw Weg 13, 1023 Wien
Delico Handels GmbH	100/0	EUR36,337.00	1
Kuner Nahrungsmittel GmbH	100/0	EUR 36,336.00	1
TIGI Handels GmbH	100/0	EUR36,336.00	1
ULPC Handels GmbH	100/0	EUR 218,019.00	1
Unilever Austria GmbH	100/0	EUR10,000,000.00	1
Bangladesh - 51 Kalurghat Heavy Industrial Area, Kalurghat, Chittagong
Unilever Bangladesh Limited (60.75)	0/60.75	BDT100.00	1
Belgium - Humaniteitslaan 292, 1190 Brussels
Unilever Belgium NV/SA	100/0	No Par Value	1
Unilever Lipton Tea NV/SA	100/0	No Par Value	1
Belgium - Rond-Point Schuman, 6 Box 5, 1040 Ettebeek
Intuiskin SPRL (In liquidation) (95.81)	95.81/0	EUR 185.50	1
Bolivia - Av. Blanco Galindo Km. 10.4 Cochabamba
Unilever Andina Bolivia S.A.	100/0	Bs 1000.00	1
Bolivia - Av. Blanco Galindo Km 6,9, Los Pinos Street No. 121, Colcapirhua, Quillacollo, Cochabamba
Astrix S.A.	100/0	Bs. 1000.00	1
Brazil - Rua Oscar Freire, n. 957, mezanino, room 1, Cerqueira Cesar, Zip Code 01426-003, São Paulo/SP
Euphoria Ice Cream Comercio de Alimentos Limitad	64.55/35.45	BRL1.00	5
Brazil - Rod. BR 101-Norte, s/n, km. 43,6- Room 4, Igarassu /PE
Cicanorte Industria de Conservas Alimenticas S.A.	64.55/35.45	BRL2.80	1
Brazil - Av. das Nações Unidas, n. 14.261,8th floor, qd 10, Wing B, Vila Gertrudes, ZIP Code 04794- 000 - São Paulo/SP
RGG - Comércio E Representações	64.55/35.45	BRL1.00	5
De Produtos De Higiene Pessoal Limitada
Brazil - Av. Dr. Cardoso de Melo, n° 1855, Room A, Suite 152, 15th floor, Vila Olímpia, São Paulo/SP CEP		04548-005.
E-UB Comércio Ltda	64.55/35.45	BRL1.00	5
Brazil - Av. das Nações Unidas, n. 14.261, 8th floor, qd 7, Wing B, Vila Gertrudes, ZIP Code 04794-000 - São Paulo/SP
UBA 2 - Comércio e Renresentaca.de
Alimentos Limitada	64.55/35.45	BRL1.00	5
Brazil - Campos Sales St., No. 20, Part, Centro, ZIP Code 13271-900, Valinhos/SP
Unilever Logistica Serviços Ltda	64.55/35.45	BRL1.00	5
Brazil - Cidade de Sao Paulo, Estado de Sao Paule, na Rua Engenheiro Antonio Ponzio Ippolito
Massau Comercio De Alimentos Ltda	64.55/35.45	BRL1.00	5
Brazil - Av. das Nações Unidas, n. 14.261,8th floor, qd 9, Wing B, Vila Gertrudes, ZIP Code 04794-000 -São Paulo/SP
UBI 4 - Comércio de Alimentos Limitada	64.55/35.45	BRL1.00	5
Brazil - Rod. BR 232, s/n, km. 13 - Jaboatão dos Guararapes/PE
Unilever Brasil Gelados do Nordeste S.A.	64.55/35.45	No Par Value	2
	64.55/35.45	No Par Value	3
Brazil-Av. das Nações Unidas, n. 14.261, 7th floor. Wing B, Vila Gertrudes, Zip Code 04794-000, São Paulo/SP
Unilever Brasil Gelados Limitada	64.55/35.45	BRL1.00	5
Brazil - Av. das Nações Unidas, n. 14.261,3rd to 6th and 8th to 10th floors. Wing B Vila Gertrudes, Zip Code 04794-000, São Paulo/SP
Unilever Brasil Limitada	64.55/35.45	BRL1.00	5
Brazil - Av. das Nações Unidas, n. 14.261, 3rd floor, Wing A, Vila Gertrudes, ZIP Code 04794-000, São Paulo/SP
Unilever Brasil Industrial Limitada	64.55/35.45	BRL1.00	5
Brazil - Av. Marechal Floriano, 19-Room 1001 Part-Rio de Janeiro/RJ
Veritas do Brazil Limitada (99)	63.90/35.10	BRL1.00	5
Brazil - Rua Sabia, 45, Jardim Marieta, Osasco/SP
SOLO ATS Participações do Brasil S.A	64.55/35.45	No Par Value	1
Mae Terra Produtos Naturais Ltda.	64.55/35.45	BRL 1.00	5
Brazil - Rua Tenente Pena, No. 156, Bom Retiro, CEP 01127-020, São Paulo
Smart Home Comércio E Locação De Equipamentos S.A (50.01)	32.28/17.73	BRL187,775.00	1
British Virgin Islands - Pasea Estate, Road Town, Tortola
Aromatel Brands Inc.	100/0	USD1.00	1
Aromatel South Inc.	100/0	USD1.00	1
Ego Brands Inc.	100/0	USD1.00	1
Ego South Inc.	100/0	USD1.00	1
Savital Brands Inc.	100/0	USD1.00	1
Savital South Inc.	100/0	USD1.00	1
Fortident Brands Inc.	100/0	USD1.00	1
Fortident South Inc.	100/0	USD1.00	1
Bulgaria-City of Sofia, Borough Mladost, 1, Business Park, Building 3, Floor 1
Unilever Bulgaria EOOD	100/0	BGN1,000.00	1
Bulgaria- IlyuVoyvoda No. 10, Veliko Tarnovo district, 5000 Veliko Tarnovo
Slimfood EOOD	100/0	BGN 100.00	1
Cambodia - No. 443A Street 105, Sangkat Boeung Pralit, Khan 7 Makara Phnom Penh Capital
Unilever (Cambodia) Limited	100/0	KHR20,000.00	1
Canada - 3081,3rd Avenue, Whitehorse, Yukon Territory, Y1A 4Z7
Dermalogica Canada Limited	0/100	No Par Value	6
Canada - P.O. Box 49130, 2900 - 595 Burrard Street, Vancouver BC V7X 1J5
Dollar Shave Club Canada, Inc	55.40/44.60	CAD0. 01	7
Canada -800-885 West Georgia Street, Vancouver BC V6C 3H1
Seventh Generation Family & Home ULC	55.40/44.60	No Par Value	7
Canada - 1000 rue de la Gauchetière Ouest, Bureau 2500, Montreal H3B 0A2
4012208 Canada Inc.	64.55/35.45	No Par Value	7
Canada - 160 Bloor Street East, Suite 1400, Toronto ON M4W 3R2
Unilever Canada Inc.	64.55/35.45	No Par Value	8
	64.55/35.45	No Par Value	9
	0/100	No Par Value	10
	64.55/35.45	No Par Value	11
	64.55/35.45	No Par Value	12
Canada - McCarthy Tetrault LLP, 745 Thurlow Street, Suite 2400, Vancouver, BC, V6E 0C5
Hourglass Cosmetics Canada Limited	55.40/44.60	No Par Value	7
Chile- Av. Carrascal N°3351, Quinta Normal, Santiagc
Unilever Chile Limitada	64.55/35.45		13
Unilever Chile SCC Limitada	64.55/35.45		13
China - 10th floor No.398, North Cao Xi Road, Xuhui District, Shanghai
Blueair Shanghai Sales Co. Limited	100/0	CNY1.00	1
China - 1 st Floor, No. 78 Binhai 2nd Road, Hangzhou Bay, New District, Ningbo City, Zhejiang Province
Ningbo Hengjing Inspection Technology Co., Ltd (67.71)	67.71/0	CNY1.00	1
China - Seaside Avenue, Cixi Econimce and Technical Development Zone (Hangzhou Bay New Zone)
Qinyuan Group Co. Limited (67.71)	67.71/0	CNY1.00	1
China - Room 23, Hall 5, No. 38, Lane 168, Xing Fu Li Road, Fenjing Town, Jinsham District, Shanghai
201100
Shanghai Qinyuan Environment Protection Technology Co. Limited (67.71)	67.71/0	CNY1.00	1
China - No.33 North Fuquan Road, Shanghai, 200335
Unilever (China) Investing Company Limited	100/0	USD1.00	1
China -88 Jinxiu Avenue, Hefei Economic and Technology Development Zone, Hefei, 230601
Unilever (China) Limited	100/0	USD1.00	1
Unilever Services (Hefei) Co. Limited	100/0	CNY1.00	1
China - No. 225 Jingyi Road, Tianjin Airport Economic Area, Tianjin
Unilever (Tianjin) Company Limited	100/0	USD1.00	1
China -1068 Ting Wei Road, Jinshanzui Industrial Region, Jinshan District, Shanghai
Unilever Foods (China) Co. Limited	100/0	USD1.00	1
China - No. 166 Unilever Avenue West, Qinglong Town, Pengshan Country, Meishan City, Sichuan
Province 610016
Unilever (Sichuan) Company Limited	100/0	USD1.00	1
China- No.16 Wanyuan Road, Beijing E&T Development, Beijing 100076
Walls (China) Co. Limited	100/0	USD1.00	1
China - 358, Ci Yi Road, Hangzhou Bay New Zone
Zhejiang Qinyuan Water Treatment Technology Co. Limited (67.71)	67.71/0	CNY1.00	1
China - Room 326, 3rd Floor, Xinmao Building, No.2 South Taizhong Road South, Shanghai Free
Trade Zone
Unilever Trading (Shanghai) Co. Ltd	100/0	RMB2,000,000	1
China - Floor 1, Building 2, No.33 North Fuquan Road, Shanghai, 200335
Shanghai CarverKorea Limited	0/100	USD1.00	1
Colombia-Av. El Dorado, No.69B-45. Bogota Corporate Center Piso 7, Bogotá
Unilever Colombia SCC S.A.S.	100/0	COP100.00	1
Unilever Andina Colombia Limitada	100/0	COP100.00	1
Costa Rica - La Asunción de Belén, Planta Industrial Lizano, Autopista Bernardo Soto
Unilever de Centroamerica S.A.	100/0	CRC1.00	1
Costa Rica - Provincia de Heredia, Cantón Belén, Distrito de la Asunción, de la intersección Cariari-Belén, 400 Mts. Oeste, 800 Mts.,
UL Costa Rica SCC S.A.	100/0	CRC1.00	1
Cote D'Ivoire-01 BP 1751 Abidjan 01, Boulevard de Vridi
Unilever-Cote D'Ivoire (99.33)	0/99.33	XOF5,000.00	1
Cote D'Ivoire - Abidjan-Marcory, Boulevard Valery Giscard d'Estaing, Immeuble Plein Ciel, Business Center. 26 BP 1377. Abidian 26
Unilever Afrique de l'Ouest	0/100	XOF10,000.00	1
Croatia - Strojarskacesta 20, 10000 Zagreb
Unilever Hrvatska d.o.o.	100/0	HRK1.00	1
Cuba-Zona Especial de Desarrollo Mariel, Provincia Artemisa
Unilever Suchel, S.A. (60)	60/0	USD1,000.00	1
Cyprus - Head Offices, 195C Old Road Nicosia Limassol, CY-2540 Idalion Industrial Zone - Nicosia
Unilever Tseriotis Cyprus Limited (84)	0/ 84	EUR1.00	1
Czech Republic - Voctářova 2497/18, 180 00 Praha 8
Unilever CR, spol. s r.o.	0/100	CZK210,000.00	1
UNILEVER RETAIL ČR, spol. s r.o.	0/100	CZK100,000.0	1
Denmark - Ørestads Boulevard 73,2300 København S
Unilever Danmark A/S	100/0	DKK1,000.00	1
Denmark - Petersmindevej 30, 5000 Odense C
Unilever Produktion ApS	100/0	DKK100.00	1
Djibouti-Haramous, BP 169
Unilever Djibouti FZCO Limited	0/100	USD20.00	1
Dominican Republic - Ave. Winston Churchill, Torre Acrópolis Piso 17, Santo Domingo
Unilever Caribe, S.A.	100/0	DOP1,000.00	1
Ecuador - Km 25 Via a Daule, Guayaquil
Unilever Andina Ecuador S.A.	100/0	USD1.00	1
Egypt- Bourg El-Arab City, Alexandria
Fine Tea Co (SAE)	0/100	EGP2.00	1
Unilever Mashreq - Foods (SAE)	0/100	EGP20.00	1
Egypt -6th of October City, 4th Industrial Zone, Piece Number 68, Giza
Unilever Mashreq - Home Care (SAE)	0/100	EGP2.00	1
Unilever Mashreq - Personal Care (SAE)	0/100	EGP10.00	1
Egypt - 14th May Bridge, Ezbet Hegazy, Alexandria
Unilever Mashreq International Company	0/100	USD1,000.00	1
Egypt - Industrial Zone - 14th May Bridge, Smouha, Alexandria
Unilever Mashreq Trading LLC (60)	0/60	EGP10.00	1
Egypt-Bourg El-Arab City, 1st Industrial Zone, Block 11, Piece Number 5, Alexandria
Unilever Mashreq - Tea (SAE)	0/100	EGP100.00	1
Egypt - Flat no.4, third floor, building no. 78, Tereat Al Mariouteyya street, Faisal Al Haram, Gizah
Unilever Mashreq for Import and Export LLC	0/100	EGP100.00	1
El Salvador - Nivel 19 Edificio Torre Future, 87 av. Norte y calle El Mirador, Colonia Escalón, San Salvador
Unilever El Salvador SCC S.A. de C.V.	100/0	USD11.00	1
Unilever de Centro America S.A. de C.V	100/0	USD1.00	1
England and Wales-Unilever House, 100 Victoria Embankment, London, EC4Y 0DY
Accantia Group Holdings	5.61/94.39	GBP0.01	1
(unlimited company)
Al berto-Culver (Europe) Limited	55.40/44.60	GBP1.00	1
Alberto-Culver Group Limited	55.40/44.60	GBP1.00	1
Alberto-Culver UK Holdings Limited	55.40/44.60	GBP1.00	1
Alberto-Culver UK Products Limited	55.40/44.60	GBP1.00	1
	55.40/44.60	GBP5.00	14
Associated Enterprises Limited ^°	0/100	GBP1.00	1
BBG Investments (France) Limited	0/100	GBP1.00	1
Brooke Bond Assam Estates Limited	0/100	GBP1.00	1
Brooke Bond Group Limited ^°	0/100	GBP0.25	1
Brooke Bond South India Estates Limited ^°	0/100	GBP1.00	1
	0/100	GBP1.00	15
CPC (UK) Pen sion Trust Limited	0/100		16
Dollar Shave Club Limited	0/100	GBP1.00	1
Hourglass Cosmetics UK Limited	55.40/44.60	GBP1.00	1
Margarine Union (1930) Limited ^°	0/100	GBP1.00	1
	0/100	GBP1.00	18
	0/100	GBP1.00	68
	0/100	GBP1.00	69
MBUK Trading Limited	0/100	GBP1.00	1
Mixhold Investments Limited	0/100	GBP1.00	1
ND4A Limited	0/100	GBP1.00	1
Pukka Herbs Limited	0/100	GBP0.01	1
T2 Tea (UK) Limited	0/100	GBP1.00	1
TIGI Limited	0/100	GBP1.00	1
TIGI Holdings Limited	0/100	GBP1.00	1
Toni & Guy Products Limited ^°	0/100	GBP0.001	1
UAC International Limited	0/100	GBP1.00	1
UML Limited	0/100	GBP1.00	1
Unidis Forty Nine Limited	0 /100	GBP1.00	1
Unilever Australia Investments Limited	0/100	GBP1.00	1
Uni lever Australia Partnership Limited	0/100	GBP1.00	1
Unilever Australia Services Limited	0/100	AUD10.00	2
	0/100	GBP1.00	1
Unilever Company for Industrial Development
Limited	0/100	GBP1.00	1
Unilever Company for Regional Marketing and	0/100	CBD1.00	1
Research Limited	0/100	GBP1.00
Unilever Corporate Holdings Limited ^°	0/100	GBP1.00	1
Unilever Employee Benefit Trustees Limited	0/100	GBP1.00	1
Unilever S.K. Holdings Limited	0/100	GBP1.0 0	1
Unilever Innovations Limited	0/100	GBP0.10	1
Unilever Overseas Holdings Limited ^°	0/100	GBP1.00	1
Unilever Superannuation Trustees Limited	0/100	GBP1.00	1
Unilever U.K. Central Resources Limited	0/100	GBP1.00	1
Unilever U.K. Holdings Limited ^°	0/100	GBP1.00	1
Unilever UK & CN Holdings Limited	0/100	GBP1.00	2
	0/100	GBP1.00	3
	0/100	GBP10.00	23
	0/100	GBP10.00	24
Unilever UK Group Limited	49.86/50.14	GBP1.00	2
	1.67/98.33	GBP1.00	3
	5.61/94.39	GBP1.00	21
Unilever US Investments Limited ^°	0/100	GBP1.00	1
United Holdings Limited ^°	0/100	GBP1.00	1
	99.67/0.33	GBP500.00	22
England and Wales - Unilever House, Springfield Drive, Leatherhead, KT22 7GR
Alberto-Culver Company (U.K) Limited	5.61/94.39	GBP1.00	1
TIGI International Limited	0/100	GBP1.00	1
Unilever Pension Trust Limited	0/100	GBP1.00	1
Unilever UK Limited	5.61/94.39	GBP1.00	1
Unilever UK Pension Fund Trustees Limited	0/100	GBP1.00	1
USF Nominees Limited	0/100	GBP1.00	1
England and Wales - The Manser Building, Thorncroft Manor, Thorncroft Drive, Dorking, KT22 8JB
Dermalogica (UK) Limited	0/100	GBP1.00	1
England and Wales - 1st Floor, 16 Charles II Street, London, SW1Y 4QU
Unilever Ventures III Limited Partnership (86.25)	57.50/28.75		4
England and Wales - Union House, 182-194 Union Street, London, England, England, SE1 OLH
REN Skincare Limited	0/100	GBP1.00	1
REN Limited	0/100	GBP1.00	1
	0/100	GBP0.032	96
Murad Europe Limited	0/100	GBP1.00	1
England and Wales - Palm Court, 4 Heron Square, Richmond, Surrey, TW9 1EW
Nature Delivered Limited	0/100	GBP0.001	1
	0/100	GBP0.001	79
	0/100	GBP0.001	84
England and Wales - Tolldown Barn, Dyrham, Whiltshire, SN14 8HZ
Marshfield Bakery Limited	0/100	GBP0.01	1
England and Wales - 1 More Place, London, SE1 2AF
Accantia Health and Beauty Limited (In Liquidation)	0/ 100	GBP0.25	1
Unidis Nineteen Limited (In Liquidation)	0/100	GBP1.00	1
Unilever Bestfoods UK Limited (In Liquidation)	5.61/94.39	GBP1.00	1
England and Wales-C/O Tmf Group 8th Floor, 20 Farringdon Street, London, United Kingdom, EC4A 4AB
Unilever Ventures Limited	0/100	GBP1.00	1
Estonia - Kalmistu tee 28a, Tallinna linn, Harju maakond, 11216
Unilever Eesti AS	100/0	EUR6.30	1
Ethiopia - Bole Sub City, Kebele 03/05, Lidiya Building, Addis Ababa
Unilever Manufacturing PLC	0/100	ETB1,000.00	1
Finland - Post Box 254, 00101 Helsinki
Unilever Finland Oy	100/0	EUR16.82	1
Unilever Ingman Production Oy	100/0	EUR1.00	1
France - 20, rue des Deux Gares, 92500, Rueil-Malmaison
Bestfoods France Industries S.A.S. (99.99)	64.54/35.45	No Par Value	1
Cogesal-Miko S.A.S. (99.99)	64.54/35.45	No Par Value	1
Fralib Sourcing Unit S.A.S. (99.99)	64.54/35.45	No Par Value	1
Saphir S.A.S. (99.99)	64.54/35.45	EUR1.00	1
J-Labs S.A.S. (99.99)	64.54/35.45	No Par Value	1
Tigi Services France S.A.S. (99.99)	64.54/35.45	No Par Value	1
Unilever France S.A.S. (99.99)	64.54/35.45	No Par Value	1
Unilever France Holdings S.A.S. (99.99)	64.54/35.45	EUR1.00	1
Unilever France HPC Industries S.A.S. (99.99)	64.54/35.45	EUR1.00	1
Unilever Retail Operations France (99.99)	64.54/35.45	No Par Value	1
France - Parc Activillage des Fontaines - Bernin 38926 Crolles Cedex
Intuiskin S.A.S. ^Δ(95.81)	95.81/0	EUR1.00	1
France - ZI de la Norge - Chevigny Saint-Sauveur, 21800 Quetigny
Amora Maille Societe Industrielle S.A.S. (99.99)	64.54/35.45	No Par Value	1
France -10-12, avenue du Recteur Poincare, Paris, 75016
Laboratoire Garancia	100/0	EUR62.50	1
Germany - WiesenstraBe 21.40549 Düsseldorf
Dermalogica GmbH	100/0	EUR25,000.00	1
Germany - Am Strandkai 1, 20457 Hamburg
DU Gesellschaft fur Arbeitnehmerüberlassung mbH (99.99)	64.54/35.45	DEM50,000.00	1
NU Business GmbH	64.55/35.55	EUR25,000.00	1
Unilever Deutschland GmbH	64.55/35.45	EUR90,000,000.00	1
	64.55/35.45	EUR2,000,000.00	1
	64.55/35.45	EUR1,000,000.00	1
Unilever Deutschland Holding GmbH	64.55/35.45	EUR39,000.00	1
	64.55/35.45	EUR18,000.00	1
	64.55/35.45	EUR14,300.00	1
	64.55/35.45	EUR5.200.00	1
	64.55/35.45	EUR6,500.00	1
Unilever Deutschland Produktions GmbH & Co. OHG	64.55/35.45		4
Unilever Deutschland Produktions Verwaltungs GmbH	64.55/35.45	EUR179,000.00	1
Unilever Deutschland Supply Chain Services GmbH	64.55/35.45	EUR51,150.00	1
Dollar Shave Club GmbH	100/0	EUR25,000.00	1
T2 Germany GmbH	100/0	EUR 25,000.00	1
Germany - SchultetusstraBe 37, 17153 Stavenhagen
Maizena Grundstücksverwaltung GmbH & Co. OHG ^∞	63.61/36.39		4
Pfanni GmbH & Co. OHG Stavenhagen ^∞	64.55/35.45		4
Rizofoor Gesellschaft mit beschränkter Haftung	96.45/3.55	EUR15,350.00	1
	100/0	EUR138,150.00	1
Schafft GmbH	64.55/35.45	EUR63,920.00	1
	64.55/35.45	EUR100,000.00	1
UBG Vermietungs GmbH	64.74/35.26	EUR8,090,190.00	1
Unilever Deutschland Immobilien Leasing GmbH & Co. OHG ^∞	66.33/33.67		4
Unilever Deutschland IPR GmbH & Co. OHG ^∞	64.55/35.45		4
Germany - HertzstraBe 6, 71083 Herrenberg-Gülstein
TIGI Eurologistic GmbH	0/100	EUR100.00	1
TIGI Haircare GmbH	0/100	EUR25,600.00	1
Ghana -Swanmill, Kwame Nkrumah Avenue, Accra
Millers Swanzy (Ghana) Limited	0/100	GHC1.00	1
Ghana - Plot No. Ind/A/3A-4, Heavy Industrial Area, Tema
Unilever Ghana Limited (66.56)	0/66.56	GHC0.0192	1
Ghana - Plot No. Ind/A/3A-4, P O Box 721, Tema
Unilever Oleo Ghana Limited	0/100	No Par Value
Greece - Kymisave & 10, Senekastr. GR-145 64 Kifissia
Elais Unilever Hellas SA	100/0	EUR10.00	1
Unilever Knorr SA	100/0	EUR10.00	1
Unilever Logistics SA	100/0	EUR10.00	1
Guatemala - Diagonal 6. 10-50 zona 10, Ciudad de Guatemala. Nivel 17 Torre Norte Ed. Interamericas World Financial Center
Unilever de Centroamerica S.A.	100/0	GTQ60.00	1
Guatemala - 24 Avenida, Calzada Atanacio Tzul, 35-87 Zona 12 Ciudad de Guatemala
Unilever Guatemala SCC S.A.	100/0	GTQ100.00	1
Honduras - Anillo Periférico 600 metros después de la colonia, Residencial, Las Uvas contigua acceso de residencial Roble Oeste, Tegucigalpa M.D.C.
Unilever de Centroamerica S.A.	100/0	HNL 10.00	1
Hong Kong -Suite 1106-8, 11/F,Tai Yau Building, 181 Johnston Road, Vanchai
Blueair Asia Limited	100/0	HKD0.01	1
Hong Kong - 6/F Alexandra House, 18 Charter Road, Central
T2 Hong Kong	64.55/35.45	HKD 1.00	1
Hong Kong - 6 Dai Fu Street, Tai Po Industrial Estate, N.T.
Unilever Hong Kong Limited	64.55/35.45	HKD0.10	1
Hong Kong - Suite 907,9/F, Silvercord Tower2,30 C
Hourglass Cosmetics Hong Kong Limited	55.40/44.60	No Par Value	7
Hong Kong - Room 1808, 18/F, Tower II Admiralty Centre, 18 Harcourt Road, Admiralty
Hong Kong CarverKorea Limited	0/100	HKD1.00	7
Hungary - 1138-Budapest, Václ út 121-127.
Unilever Magyarország Kft	0/100	HUF1.00	1
India-Unilever House, B. D. Sawant Marg, Chakala, Andheri (E), Mumbai 400 099
Daverashola Estates Private Limited (67.18)	0/67.18	INR 10.00	1
Hindlever Trust Limited (67.18)	0/67.18	INR10.00	1
Hindustan Unilever Limited (67.18)	0/67.18	INR1.00	1
Jamnagar Properties Private Limited (67.18)	0/67.18	INR10.00	1
Lakme Lever Private Limited (67.18)	0/67.18	INR 10.00	1
Levers Associated Trust Limited (67.18)	0/67.18	INR10.00	1
Levindra Trust Limited (67.18)	0/67.18	INR10.00	1
Pond's Exports Limited (67.18)	0/67.18	INR1.00	1
Unilever India Exports Limited (67.18)	0/67.18	INR10.00	1
Unilever Industries Private Limited ^°	0/100	INR10.00	1
Unilever Ventures India Advisory Private Limited	0/100	INR1.00	1
India - S-327, Greater Kailash - II, New Delhi - 110048, Delhi
Blueair India Pvt. Limited	99.99/0.01	INR10.00	1
Indonesia -Grha Unilever, Green Office Park Kav 3, Jalan BSD Boulevard Barat, BSD City, Tangerang, 15345
PT Unilever Indonesia Tbk (84.99)	54.86/30.13	IDR2.00	1
PT Unilever Enterprises Indonesia (99.26)	64.07/35.19	IDR1,000.00	1
PT Unilever Trading Indonesia	100/0	IDR1,003,875.00	1
Indonesia-KEK Sei Mangkei, Nagori Sei Mangkei, Kecamatan Bosar Maligas, Kabupaten Simalungun 21183, Sumatera Utara
PT Unilever Oleochemical Indonesia	100/0	IDR1,000,000.00	1
Iran - No. 23, Corner of 3rd Street, Zagros Street, Argentina Square, Tehran
Unilever Iran (Private Joint Stock Company) (99.35)	99.35/0	IRR1,000,000.00	1
Ireland - 20 Riverwalk, National Digital Park, Citywest Business Campus Dublin 24
Lipton Soft Drinks (Ireland) Limited	0/100	EUR1.26	1
Unilever Ireland (Holdings) Limited	0/100	EUR1.26	1
Unilever Ireland Limited	0/100	EUR1.26	1
Isle of Man - Bridge Chambers, West Quay, Ramsey, Isle of Man, IM8 1DL
Rational International Enterprises Limited	0/100	USD 1.00	1
Israel - 3 Gilboa St. Airport City, Ben Gurion Airport
Beigel & Beigel Mazon (1985) Limited	12.80/87.20	ILS1.00	1
Israel - 52 Julius Simon Street, Haifa, 3296279
Bestfoods TAMI Holdings Ltd	25.11/74. 89	ILS0.001	1
Israel Vegetable Oil Company Ltd	25.11/74.89	ILS0.0001	1
Unilever Israel Foods Ltd	25.11/74.89	ILS0.10	35
	25.11/74.89	ILS0.10	79
	25.11/74.89	ILS0.10	17
	25.11/74.89	ILS0.0002	25
Unilever Israel Home and Personal Care Limited	0/100	ILS1.00	1
Unilever Israel Marketing Ltd	25.11/74.89	ILS0.0001	1
Unilever Shefa Israel Ltd	25.11/74.89	ILS1.00	1
Israel - Haharoshet 1, PO Box 2288, Akko, 2451704
Glidat Strauss Limited	0/100	ILS1.00	30
	0/100	ILS1.00	1
	0/0	ILS1.00	31
Italy - Piazza Paleocapa 1 /D, 1010 0, Torino
Gromart S.R.L.	100/0	EUR1,815,800.00	5
Italy - V ia Crea 10, 10095, Grugliasco
G.L.L. S.R.L. ( 51)	51/0	EUR40,000.00	5
Italy - Via Roma 101, 35122, Pado va
Grom-PD S.R.L .	100/0	EUR40,000.00	5
Italy - Via Tortona 25, cap 20144 - Milano
Intuiskin S.R.L (95.81)	95.81/ 0	EUR 10,000.00	1
Italy - Piazzale Biancamanon.8, 20121, Milano
Unilever Italia Administrative Services S.R.L.	100/0	EUR70,000.00	5
Italy - Via Paolo d i Dono 3/A 00142 Roma
Unilever Italia Logistics S.R.L.	100/0	EUR600,000.00	5
Unilever Italia Manufacturing S.R.L.	100/0	EUR10,000,000.00	5
Unilever Italia Mkt Operations S.R.L.	100/0	EUR25,000,000.00	5
Unilever Italy Holdings S.R.L	100/0	EUR200,000.00	5
Italy - Business Center Monte Napoleone. Via Monte Napoleone 8, 20121 - Milano
UPD Italia	100/0	EUR 10,000 .00	5
Japan-2-1-1, Kamimeguro, Meguro-ku, Tokyo 153-8578
Unilever Japan Beverage K.K.	100/0	JPY50,000,000.00	1
Unilever Japan Customer Marketing K.K.	100/0	JPY100,000,001.00	1
Unilever Japan Holdings K.K.	100/0	JPY10,000,000.00	1
Unilever Japan K.K.	100/0	JPY100,000,001.00	1
Unilever Japan Service K.K.	100/0	JPY50,000,000.00	1
Japan - 1-8-1 Shinjuku, Shinjuku-ku, Tokyo
Lenor Japan K.K.	100/0	JY1.00	7
Jersey - 13 Castle Street, St Helier, Jersey, JE4 5UT
Unilever Chile Investments Limited	64.55/35.45	GBP1.00	1
Jordan - Amman
Unilever Jordan LLC	100/0	JOD10.00	1
Kazakhstan - Raimbek, Avenue 160 A, Office 401, Almaty
Unilever Kazakhstan LLP	100/0		4
Kenya - Head Office, Kericho-Nakuru Road, P.O. BOX 20, 20200, Kericho
Brooke Bond Mombasa Limited (98.20)	0/98.20	KES1.00	1
Mabroukie Tea & Coffee Estates Limited (98.20)	0/98.20	KES1.00	1
The Limuru Tea Company Limited (51.08)	0/51.08	KES20.00	1
Unilever Tea Kenya Limited (98.20)	0/98.20	KES1.00	1
Kenya - Commercial Street, Industrial Area, P.O. BOX 30062-00100, Nairobi
Unilever Kenya Limited	0/100	KES20.00	1
Korea -443 Taeheran-ro, Samsung-dong, Kangnam-gu, Seoul
Unilever Korea Chusik Hoesa	100/0	KRW10,000.00	1
Korea - 81, Tojeong 31-gil, Mapo-gu, Seoul
Carver Korea Co., Ltd (97.47)	0/97.47	KRW500.00	7
Laos-Viengvang Tower, 4th Floor, Room no. 402A, Boulichan Road, Dongpalan Thong Village, Sisattanak District, Vientiane Capital
Unilever Services (Lao) Sole Co Limited	100/0	LAK80,000.00	1
Latvia - Kronvalda bulvāri s 3-10, Riga, LV-1010
Unilever Baltic LLC	100/0	EUR1.00	1
Lebanon - Sin El Fil, Zakher Building, Floor 4, Beirut
Unilever Levant s.a.r.l.	100/0	LBP 1,000,000.00	1
Lithuania - Skuodo st. 28, Mazeikiai, LT-89100
UAB Unilever Lietuva distribucija	100/0	EUR3,620.25	1
UAB Unilever Lietuva ledu gamyba	100/0	EUR 3,620.25	1
Malawi - Room 33, Gateway Mall, Area 47, Lilongwe Malawi
Unilever South East Africa (Private) Limited	0/100	MWK2.00	1
Malaysia - Level 34, Menara TM, Jalan Pantai Baru, 59200 Kuala Lumpur
Unilever (Malaysia) Holdings Sdn. Bhd. (70)	0/70	No Par Value	1
Unilever (Malaysia) Services Sdn. Bhd. (70)	0/70	No Par Value	1
Unilever Foods (Malaysia) Sdn. Bhd.	0/100	No Par Value	1
Unilever Malaysia Aviance Sdn. Bhd.	0/100	No Par Value	1
Mexico - Av. Tepalcapa No.2, Col. Rancho Santo Domingo, C.P. 54900 Tultitlán, Estado de México
Unilever de Mexico S.de R.L de C.V.	64.55/35.45		4
Unilever Holding Mexico S.de R.L. de C.V.	64.55/35.45		4
Unilever Manufacturera S.de R.L. de C.V.	64.55/35.45		4
Servicios Professionales Unilever S.de R.L. de CV.	64.55/35.45		4
Unilever Mexicana S.de R.L. de C.V.	64.55/35.45		4
Unilever Re al Estate Mexico S.de R.L. de C.V.	64.55/35.45		4
Unilever Servicios de Promotoria, S.de R.L. de C.V.	64.55/35.45		4
Moldova - 6A Uzinelor Street, Kishinev, MD-2023
Betty Ice Moldova	100/0	MDL 7,809,036.00	1
Morocco - Km 10, Route Cotiere, Ain Sebaa, Casablanca
Unilever Maghreb S.A. (99.98)	99.98/0	MAD100.00	1
Mozambique - Avenida 24 de Julho, Edificio 24,n° 1097,4°andar, Maputo
Unilever Mocambique Limitada	100/0	USD0.01	1
Myanmar - No (40,41,47), Min Thate Hti Kyaw Swar Street, 39 Ward, Shwe Pyi Thar Industrial Zone
(2), Shwe Pyl Thar Township, Yangon
Unilever (Myanar) Limited	100/0	No Par Value	1
Myanmar - No (196), West Shwe Gone Dine 5th Street, Bahan Township, Yangon
Unilever (Myanmar) Services Limited	100/0	No Par Value	1
Myanmar- Lot No.28,30,31, Hlaing Thar Yar Industrial Zone (3), Hlaing Thar Yar Township, Yangon
Unilever EAC Myanmar Company Limited (60)	60/0	No Par Value	1
Nepal - Basamadi, Hetanda-3, Makwanpur
Unilever Nepal Limited (53.75)	0/53.75	NPR100.00	1
Netherlands- Weena 455, 3013 AL Rotterdam
Alberto-Culver Netherlands B.V. ^*	55.40/44.60	EUR1.00	2
	55.40/44.60	EUR1.00	3
Argentina Investments B.V. ^*	64.55/35.45	EUR454.00	1
BFO Holdings B.V. ^*	64.55/35.45	EUR1.00	1
BFO TWO B.V. ^*	55.40/44.60	EUR1.00	1
BrazH1 B.V. ^*	64.55/35.45	EUR1.00	1
BrazH2 B.V. ^*	64.55/35.45	EUR1.00	1
Brazin vest B.V. ^*	64.55/35.45	EUR1.00	1
Brazinvestee B.V. ^*	64.55/35.45	EUR1.00	1
Chico-invest B.V. ^*	64.55/35.45	EUR455.00	1
Dollar Shave Club B.V. ^*	100/0	EUR1.00	1
Doma B.V. ^*	100/0	NLG1,000.00	1
Handelmaatsch appij Noorda B.V. ^°*	100/0	NLG1,000.00	1
Unilever Foods & Refreshments Global B.V. ^*	100/0	EUR453.78	1
Itaho B.V. ^*	100/0	EUR1.00	1
Lipoma B.V ^°*	100/0	NLG1,000.00	1
Marga B.V. ^°*	100/0	EUR1.00	1
Mavibel (Maatschappij voor Internationale Beleggingen) B.V. ^°*	100/0	EUR1.00	1
Mexinvest B.V. ^*	64.55/35.45	EUR1.00	1
Mixhold B.V ^*	100/0	EUR1.00	2
	0/100	EUR1.00	3
	55.40/44.60	EUR1.00	26
Naamlooze Vennootschap Elma ^*†	100/0	NLG1,000.00	1
	0.25/99.75	NLG1,000.00	27
New Asia B.V. ^*	64.55/35.45	EUR1.00	1
Nommexar B.V. ^*	64.55/35.45	EUR1.00	1
Ortiz Finance B.V. ^*	64.55/35.45	NLG 100.00	1
Pabulum B.V ^*	100/0	NLG 1,000.00	1
Rizofoor B.V. ^*	0/100	NLG 1,000.00	1
Rolf von den Baumen's Vetsmelterij B.V. ^*	100/0	EUR454.00	1
Rolon B.V. ^*	64.55/35.45	NLG1,000.00	1
Saponia B.V. ^°*	100/0	NLG1,000.00	1
ThaiB1 B.V. ^*	64.55/35.45	NLG1,000.00	1
ThaiB2 B.V. ^*	64.55/35.45	NLG1,000.00	1
Unilever Administration Centre B.V. ^*	100/0	EUR1.00	1
Unilever Alser B.V. ^*	100/0	EUR1.00	1
Unilever Berran B .V. ^*	100/0	EUR1.00	1
Unilever Canada Investments B.V. ^*	64.55/35.45	EUR1.00	1
Unilever Caribbean Holdings B.V. ^*	100/0	EUR1,800.00	1
Unilever Corporate Holdings Nederland B.V.	100/0	EUR0.01	1
Unilever Employee Benefits Management B.V. ^*	0/100	NLG1,000.00	1
Unilever Employment Services B.V . ^*	100/0	NLG1,000.00	1
Unilever Europe B.V. ^*	100/0	EUR1.00	1
Unilever Europe Business Center B.V. ^*	100/0	EUR454.00	1
	100/0	EUR454.00	14
Unilever Financ e International B.V. ^°*	100/0	EUR1.00	1
FoodserviceHub B.V. ^*	100/0	EUR1.00	1
Unilever Global Services B.V. ^*	100/0	EUR1.00	1
Unilever Holdings B.V. ^*	100/0	EUR454.00	1
Unilever Home & Personal Care Nederland B.V. ^*	100/0	EUR100.00	1
Unilever Indonesia Holding B.V. ^*	64.55/35.45	EUR1.00	1
Unilever Insurances N.V.	100/0	EUR454.00	1
Unilever Netherlands Retail Operations B.V. ^*	100/0	EUR1.00	1
Unilever Nederland Holdings B.V. ^0*	100/0	EUR454.00	1
Unilever Pilot B.V.	100/0	EUR1.00	1
Unilever Turkey Holdings B.V. ^*	64.55/35.45	EUR1.00	1
Unilever US Investments B.V. ^°*	100/0	EUR1.00	1
Unilever Ventures Holdings B.V. ^*	100/0	EUR453.79	1
Unilever UK Holdings B.V. ^*	100/0	EUR1.00	1
Unilever International Holdings B.V. ^*	100/0	EUR1.00	1
Unilever UK Holdings N.V. ^°*	100/0	EUR1.00	1
Unilever International Holdings N.V. ^°*	100/0	EUR 1.00	1
Univest Company B.V.	100/0	EUR1.00	1
UNUS Holding B.V. ^*	100/0	EUR0.10	2
	0/100	EUR0.10	3
	0/0	EUR 0.10	28
		Non-voting ^†
Verenigde Zeepfabrieken B.V. ^*	100/0	NLG1,000.00	1
Wemado B.V. ^°*	100/0	NLG1,000.00	1
Netherlands - Nassaukade 5,3071 JL Rotterdam
Tessa B.V. ^*	100/0	EUR1.00	1
Unilever Nederland B.V. ^*	100/0	EUR454.00	1
Unilever Nederland Foods Factories B.V. ^*	100/0	EUR46.00	1
Netherlands - Reggeweg 15, 7447 AN Hellendoom
Ben en Jerry's Hellendoorn B.V. ^*	100/0	EUR 453.78	1
Netherlands - Deltaweg 150, 3133 KM Vlaardingen
Lever Faberge Europe-Sourcing Unit Vlaardingen B.V. ^*	100/0	NLG1,000.00	1
Netherlands - Markhek 5, 4824 AV Breda
De Korte Weg B.V. ^*	100/0	EUR1.00	1
	100/0	EUR1.00	26
Netherlands - Bronland 14, 6708 WH Wageningen
Unilever Innovation Centre B.V.	100/0	EUR460.00	1
Netherlands - Unilever House, 100 Victoria Embankment, London, EC4Y 0DY (Registered Seat: Rotterdam)
Unilever Overseas Holdings B.V. ^*	0/100	NLG1,000.00	1
Netherlands - Nassaukade 3,3071 JL Rotterdam
Unilever Nederland Services B.V. ^*	100/0	EUR460.00	4
New Zealand - Level 4, 103 Carlton Gore Rd, Newmarket, Auckland 1023
T2 NZ Limited	0/100	NZD1.00	1
Unilever New Zealand Limited	0/100	NZD2.00	1
Unilever New Zealand Trading Limited	0/100	NZD1.00	1
Ben & Jerry's Franchising New Zealand Limited	0/100	No Par Value	1
Nicaragua - Km 11.5, Carretera Vieja a Leon, 800 Mts Norte, 100 Mts Este, 300 Mts Norte, Managua
Unilever de Centroamerica S.A.	100/0	NIC50.00	1
Niger-BP 10272 Niamey
Unilever Niger S.A. (88.81 )	0/88.81	XOF 10,000.00	1
Nigeria - 1 Billings Way, Oregun, Ike ja, Lagos
Unilever Nigeria Plc (72.32)	0/72.32	NGN0.50	1
West Africa Popular Foods Nigeria Limited (51)	0/51	NGN1.00	1
Norway - Martin Linges vei 25, Postbox 1, 1331 Fornebu
Unilever Norge AS	100/0	NOK100.00	1
Pakistan - Avari Plaza, Fatima Jinnah Road, Karachi- 75530
Lever Associated Pakistan Trust (Private) Limited	0/100	PKR 10.00	1
Unilever Pakistan Foods Limited (76.50)	42.38/34.12	PKR10.00	1
Unilever Pakistan Limited (99.27)	0/99.27	PKR50.00	1
(71.78)	0/71.78	PKR100.00	14
Palestine - Ersal St. Awad Center P.O.B 3801 Al-Beireh, Ramallah
Unilever Market Development Company	0/100	ILS1.00	1
Panama - Punta Pacifica, Calle Isaac Hanoro Missrl, P.H. Torre de las Américas, Torre C, Oficina 32, corregimiento de San Francisco, Distrito y Provincia de Panamá
Unilever Regional Services Panama S.A.	100/0	USD 1.00	1
Panama - Calle Isaac Honoro, Torre de las Americas, torre C, piso 32, corregimiento de San
Francisco, distrito y provincia de Panama
Unilever de Centroamerica S.A.	100/0	No Par Value	1
Paraguay - 4544 Roque Centurión Miranda N° 1635 casi San Martin. Edificio Aymac II, Asunción
Unilever de Paraguay S.A.	100/0	PYG1,000,000.00	1
Peru - Av. Paseo de la Republica 5895 OF. 401, Miraflores, Lima 18
Unilever Andina Perú S.A.	100/0	PEN1.00	1
Philippines - Linares Road, Gateway Business Park, Gen. Trias, Cavite
Metrolab Industries, Inc.	64.55/35.45	PHP1.00	7
	64.55/35.45	PHP10.00	14
Philippines - 7th Floor, Bonifacio Stopover Corporate Center, 31st Street corner 2nd Avenue, Bonifacio Global City, Taguig City
Unilever Philippines, Inc.	64.55/35.45	PHP50.00	7
Philippines -11th Avenue corner 39th Street, Bonifacio Triangle, Bonifacio Global City, Taguig City
Unilever Philippines Body Care, Inc.	64.55/35.45	PHP 100.00	7
Philippines - Manggahan Light Industrial Compound, A. Rodriguez Avenue, Bo. Manggahan, Pasig City
Unilever RFM Ice Cream, Inc. (50)	32.28/17.72	PHP1.00	29
Poland - Jerozolimskie 134, 02-305, Warszawa
Unilever Polska Sp. z o.o.	0/100	PLN50.00	1
Unilever Poland Services Sp. zo.o.	0/100	PLN50.00	1
Unilever Polska S.A.	0/100	PLN10.00	1
Puerto Rico - Professional Services Park 997, San Roberto St., Suite 7, San Juan
Unilever de Puerto Rico, Inc ^°	100/0	USD100.00	1
Rw anda - Nyarugenge, Nyarungenge, Umujyi wa Kigali, Rwanda, P.O. BOX 6428 Kigali
Unilever Tea Rwanda Limited	0/100	RWF1000.00	1
Romania - Ploies ti, 291 Republicii Avenue, Prahova County
Unilever Romania S.A. (99)	99/0	ROLO.10	1
Unilever Distribution SRL	100/0	ROL20.00	1
Unilever South Central Europe S.A.	100/0	ROL260.50	1
Betty Ice SRL	100/0	RON10.00	1
Romania - 9-9A Dimitrie Pompei Blvd, Iride Business Park Buildings 5 and 6, 2nd District, Bucuresti
Good People SA	100/0	RON10.00	1
Russia - 644031, 205, 10 let Oktyabrya, Omsk
Inmarko Trade LLC	11.89/88.11		13
Russia - 123022, 13, Sergeya Makeeva Street, Moscow
OOO Unilever Rus	11.89/88.11		13
Saudi Arabia - P.O. Box 5694, Jeddah 21432
Binzagr Unilever Limited ^x (49)	0/49	SAR1,000.00	1
Serbia - Belgrade, Serbia, Omladinskih brigada 90b - Novi Beograd
Unilever Beograd d.o.o.	100/0		13
Singapore - 20E P asir Panjang Road, #06-22 Mapletree Business City, 117439
T2 Singapore PTE Limited	0/100	SGD1.00	1
Singapore - 20 Pasir Panjang Road, #06-22 Mapletree Business City, 117439
Unilever Asia Privat e Limited	100/0	SGD1.00	1
Unilever Singapore Pte. Limited	0/100	SGD1.00	1
UPD Singapore Private Limited	100/0	SGD1.00	1
Slovakia - Karadzicova 10, 821 08 Bratislava
Unilever Slovensko spol. s r.o.	100/0	EUR1.00	1
South Africa - 15 Nollsworth Crescent, Nollsworth Park, La Lucia Ridge Office Estate,
La Lucia, 4051
Nollsworth Park Properties (Pty) Limited	8.98/91.02	ZAR2.00	1
Unilever Market Development (Pty) Limited	0/100	ZAR1.00	1
Unilever South Africa (Pty) Limited	8.98/91.02	ZAR2.00	1
Unilever South Africa Holdings (Pty) Limited	13.53/86.47	ZAR1.00	1
	25.10/74.90	ZAR1.00	2
	0/100	ZAR1.00	3
South Africa - 4 Merchant Place, CNR Fredman Drive and Rivonia Road Sandton, 2196
Aconcagua 14 Investments (RF) (Pty) Limited	8.98/91.02	ZAR1.00	1
Spain - PA / Reding, 43, Izda 1, 29016 Malaga
Intuiskin S.L.U. (95.81)	95.81/0	EUR1.00	1
Spain -C/Tecnologia 19,08840 Viladecans
Unilever Espana S.A.	100/0	EUR48.00	1
Unilever Services Espana S.A.	100/0	EUR60.00	1
Spain - C/ Felipe del Rio, 14 - 48940 Leioa
Unilever Foods Industrial Espana, S.L.U.	100/0	EUR600.00	1
Spain - C/Co ndesa de Venadito 1, planta 4, 28028 Madrid
Unilever HPC Industrial Espana S.L.U.	100/0	EUR600.00	1
Sri Lanka - 258 M Vincent Perera Mawatha, Colombo 14
Brooke Bond Ceylon (Pvt) Limited	0/100	LKR100.00	1
Ceytea (Pvt) Limited	0/100	LKR10.00	1
Lever Brothers (Exports and Marketing) (Pvt) Limited ^°	0/100	LKR2.00	1
Maddema Trading Company (Pvt) Limited	0/100	LKR10.00	1
Premium Exports Ceylon (Pvt) Limited	0/100	LKR10.00	1
R.O. Mennell & Co. (Ceylon) (Pvt) Limited	0/100	LKR10.00	1
Unilever Ceylon Services (Pvt) Limited	0/100	LKR10.00	1
Unilever Lipton Ceylon Limited	0/100	LKR10.00	1
Unilever Sri Lanka Limited ^°	0/100	LKR10.00	1
Sweden - Box 1056 , Svetsarevägen 15, 171 22, Solna Stockholm
Alberto Culver AB	55.40/44.60	SEK100.00	1
Unilever Holding AB	100/0	SEK100.00	1
Unilever Produktion AB	100/0	SEK50.00	1
Unilever Sverige AB	100/0	SEK100.00	1
Sweden -Karlavagen 108, 115 26 Stockholm
Blueair AB	100/0	SEK100.00	1
Sweden - Karlavagen 108, 115 26, Stockholm
Jonborsten AB	100/0	SEK1.00	1
Sweden - Nordenskioldgatan 19, 413 09 Goteborg
Nature Delivered Sweden AB	0/100	SEK1.00	1
Switzerland - Chem in Frank-Thomas 34,1208 Genève
Intuiskin SARL (In Liquidation) (95 .81)	95.81/0	CHF100.00	1
Switzerland - Bahnhofstrasse 19, CH 8240 Thayngen
Knorr-Nährmittel Aktiengesellschaft	100/0	CHF1,000.00	1
Unilever Schweiz GmbH	100/0	CHF100,000.00	1
Switzerland - Spitalstrasse 5,8200, Schaffhausen
Helmsman Capital AG	100/0	CHF1,000.00	1
Unilever Supply Chain Company AG	100/0	CHF1,000.00	1
Unilever ASCC AG	100/0	CHF1,000.00	1
Unilever Finance International AG	100/0	CHF1,000.00	1
Unilever Business and Marketing Support AG	100/0	CHF1,000.00	1
Unilever Overseas Holdings AG	0/100	CHF1,000.00	1
Unilever Schaffhausen Service AG	100/0	CHF1,000.00	1
Unilever Swiss Holdings AG	100/0	CHF1,000.00	1
Switzerland - Hinterbergstr. 30, CH-6312 Steinhausen
Oswald Nahrungsmittel GmbH	100/0	CHF800,000.00	1
Switzerland - Bahnhofstrasse 28, 6300 Zug
Unilever Reinsurance AG	100/0	CHF1,000.00	1
Taiwan - 3F,. No. 550. Sec. 4. Zhonaxiao East Rd.. Xinvi District. Taipei City
Unilever Taiwan Limited (99.92)	64.50/35.42	TWD10.00	1
Tanzania - Plot No.4A Pugu Road, Dar Es Salaam
Distan Limited	0/100	TZS20.00	1
UAC of Tanzania Limited	0/100	TZS20.00	1
Uniafric Trust Tanzania Limited	0/100	TZS20.00	1
Unilever Tanzania Limited	0/100	TZS20.00	1
Tanzania - P.O. Box 40, Mufindi
Unilever Tea Tanzania Limited	0/100	TZS20.00	1
Thailand-161 Rama 9 Road, Huay Kwang, Bangkok 10310
Unilever Thai Holdings Limited	64.55/35.45	THB100.00	1
Unilever Thai Services Limited	64.55/35.45	THB100.00	1
Unilever Thai Trading Limited	64.55/35.45	THB100.00	1
UPD (Thailand) Co., Ltd	100/0	USD1.00	1
Trinidad & Tobago - Eastern Main Road, Champs Fleurs
Unilever Caribbean Limited (50.01)	0/50.01	TTD 1.00	1
Tunisia-Z.I. Voie Z4-2014 Mégrine Erriadh - Tunis
Unilever Tunisia S.A. (97.61)	97.61/0	TND6.00	1
Unilever Maghreb Export S.A. (97.59)	97.59/0	TND5.00	1
Tunisia - Z.I. Vole Z4, Megrine Riadh, Tunis, 2014
UTIC Distribution S.A. ^X (47.82)	47.82/0	TND10.00	1
Turkey - Saray Mahallesi Dr. Adnan Büyükdeniz Cad. No. 13 34768 Ümraniye - istanbul
Unilever Gida Sanayi ve Ticaret AȘ ^° (99.98)	0.05/99.93	TRY0.01	1
Unilever Sanayi Ve Ticaret Turk AȘ ^° (99.98)	64.54/35.44	TRY0.01	1
Besan Besin Sanayive Ticaret AȘ (99.99)	64.55/35.44	TRY0.01	1
Dosan Konserve Sanayi ve Ticaret AȘ (99.64)	64.32/35.32	TRY0.01	1
Uganda - Plot 10/12 Nyondo Close, Industrial Area, P.O. Box 3515 Kampala
Unilever Uganda Limited	0/100	UGX20.00	1
Ukraine - 04119, 27-T, Dehtyarivska Str., Kyiv
Pallada Ukraine LLC	100/0		13
Unilever Ukraine LLC	100/0		13
United Arab Emirates - PO Box 17053, Jebel Ali, Dubai
Severn Gulf FZCO ^x(50)	50/0	AED100,000.00	1
Unilever Gulf FZE	0/100	AED1,000.00	1
United Arab Emirates - Easa Saleh Al Gurg Building, Karama, Office M01, P.O. Box 17055, Dubai
Unilever General Trading LLC ^X (49)	0/49	AED1,000.00	1
United Araba Emirates - Warehouse No. 1.2, Dubai Industrial Park - Seeh Shwaib 2
Unilever Home & Personal Care Pro ducts	0/49	AED1,000.00	1
Manufacturing LLC ^X (49)
United States - 700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201
Alberto-Culver Company	55.40/44.60	No Par Value	1
Alberto-Culver International, Inc	55.40/44.60	USD1.00	1
Alberto-Culver (P.R.), Inc	55.40/44.60	No Par Value	1
Alber to-Culver Usa, Inc	55.40/44.60	No Par Value	1
Ben & Jerry's Franchising, Inc	55.40/44.60	USD1.00	7
Ben & Jerry's Gift Card, LLC	55.40/44.60		13
Ben & Jerry's Homemade, Inc	55.40/44.60	USD0.01	7
Chesebrough-Pond's Manufacturing Company	55.40/44.60	No Par Value	1
Conopco, Inc	55.40/44.60	USD1.00	7
Dermalogica, LLC	55.40/44.60		13
Kate Somerville Holdings, LLC	55.40/44.60		13
Kate Somerville Skincare LLC	55.40/44.60		13
The Laundress, LLC	55.40/44.60		7
Lipton Industries, Inc	55.40/44.60	USD1.00	1
Murad LLC	55.40/44.60		13
Pantresse, Inc	55.40/44.60	USD120.00	1
REN USA Inc	0/100	No Par Value	7
Skin Health Experts, LLC	55.40/44.60		13
Kensington & S ons, LLC	55.40/44.60	No Par Value	13
St. Ives Laboratories, Inc	55.40/44.60	USD0.01	1
Kirei Intermediate Holdings, LLC	55.40/44.6 0		13
T2 US LLC	55.40/44.60		13
TIGI Linea Corp	55.40/44.60	No Par Value	1
Unilever AC Canada Holding, Inc	55.40/44.60	USD10.00	1
Unilever Bestfoods (Holdings) LLC	25.10/74.90		13
Unilever Capital Corporation	55.40/44.60	USD1.00	1
Unilever Illinois Ma nufacturing, LLC	55.40/44.60		13
Unilever Manufacturing (US), Inc	55.40/44.60	USD1.00	1
Unilever Trumbull Holdings, Inc	42.54/57.46	USD1.00	7
Uni lever Trumbull Research Services, Inc	55.40/44.60	USD1.00	1
	55.40/44.60	USD1.00	34
Unilever United States Foundation, Inc	55.40/44.60		13
Unilever United States, Inc	55.40/44.60	USD0.3333	7
Unilever Ventures Advisory LLC	55.40/44.60		13
United States -125 S Clark, Suite 2000, Chicago, IL 60603
Blueair Inc.	100/0	No Par Value	1
United States - 233 Bleecker Street, New York, 10014
Carapina LLC	100/0		13
Grom Columbus LLC	100/0		13
Grom Malibu LLC	100/0		13
Grom USA LLC	100/0		13
Hollywood LLC	100/0		13
Spatula LLC	100/0		13
United States -60 Lake Street, Suite 3N, Burlington, VT 05401
Seventh Generation Canada, Inc.	55.40/44.60	No Par Value	7
Seventh Generation, Inc.	55.40/44.60	USD.001	7
United States -13335 Maxella Ave. Marina del Rey, CA 90292
Dollar Shave Club, Inc.	55.40/44.60	USD.001	13
Personal Care Marketing & Research Inc	55.40/44.60	USD1.00	7
United States-2711 Centerville Road, Suite 400, Wilmington, Delaware
Grom Franchising LLC	100/0		13
United States - 55 East 59th Street, New York, 10022
Intuiskin Inc (95.81)	95.81/0	No Par Value	1
United States-CTC 1209 Orange Street Wilmington, DE1 9801
Living Proof, Inc.	55.40/44.60	USD 0.01	1
Nature Delivered, Inc.	0/100	USD0.01	7
United States -1241 Electric Avenue, Venice CA90291
Kingdom Animalia, LLC	55.40/44.60		13
United States-2711 Centreville Road, Suite 400, Wilmington, New Castle County, Delaware 19808
Pukka Herbs Inc	55.40/44.60	USD0.001	7
United States- 11 Ranick Drive South, Amityville, NY 11701
BC Cadence Holdings, Inc	55.40/44.60	USD0.01	7
Sundial Brands LLC	55.40/44.60	No Par Value	66
Madam C.J. Walker Enterprises, LLC	55.40/44.60		13
Nyakio LLC	55.40/44.60		13
United States - 1169 Gorgas Avenue, Suite A, San Francisco CA 94129
Olly Public Benefit Corporation	55.40/44.60	USD0.00001	7
United States - 208 Utah Street, San Francisco, CA 94103
Tatcha, LLC	55.40/44.60		13
Uruguay - Camino Carrasco 5975, Montevideu
Unilever Uruguay SCC S.A.	100/0	UYU1.00	1
Lever S.A.	100/0	UYP0.10	1
Unilever del Uruguay S.R.L.	100/0	UYU1.00	1
Venezuela-Edificio Torre Corp Banca, Piso 15,entre Avenidas Blandín y Los Chaguaramos, Urbanización La Castellana , Caracas
Unilever Andina Venezuela S.A.	100/0	VEB1000.00	1
Vietnam- Lot A2-3, T ay Bac Cu Chi Industry Zone, Tan An Hoi Ward, Cu Chi District, Ho Chi Minh City
Unilever Vietnam International Company Limited	100/0		13
Zambia - Stand 2375, Corner Addis Ababa Drive & Great East Road, Show Grounds, Lusak
Unilever South East Africa Zambia Limited	0/100	ZMK2.00	34
	0/100	ZMK2.00	1
Zimbabwe - 2 Stirling Road, Workington, Harare
Unilever - Zimbabwe (Pvt) LimitedA	0/100	ZWD2.00	1
SUBSIDIARY UNDERTAKINGS NOT INCLUDED IN THE CONSOLIDATION
Austria - Rochusgasse 4, 5020, Salzburg
NATURAL EVOLUTION gmbH	100/0	€100.00	1
Brazil-Av Das Nacoes Unidas, 14261 4° Andar Ala B, Vila Gertrudes, Cep 04792-000, Sao Paulo
Unileverprev Sociedade De Previdencia Privada	64.55/35.45		13
Brazil-Av. das Nações Unidas, n° 14.261, do 3°, Quadrante A, Ala B, Bairro Vila Gertrudes
Compre Agora Serviços Digitais Ltda.	64.55/35.45	BRL1.00	4
Brazil- Pouso Alegre, Minas Gerais, Brazil Av, Prefeito Olavo Gomes, 3701, Suite Repensar, Jardim Mariosa, 37550-000
UBI 3 Participacoes Ltda	64.55/35.45	BRL1.00	5
Bulgaria - 3 Ulitsa Na Uslugite ST, 5000 Veliko Tarnovo
Sladoledena Fabrika EOOD	100/0	BGN50.00	1
China - Room 604-48, Building 1, No. 38 Debao Road, Waigaoqiao bonded zone, Shangha
UPD China	100/0	CNY1.00	1
Ecuador - Km 25 Via a Daule, Guayaquil
Visanuasa S.A.	100/0	USD1.00	1
El Salvador - 87 Avenida norte y calle El Mirador, Torre Futura, Nivel 19, Colonia Escalón, San Salvador
Grasas, Aceites y Derivados, S.A. (In Liquidation) (57.52)	57.52/0	USD11.43	1
England and Wales - 100 Victoria Embankment, Blackfriars, London, EC4Y 0DY
Uflexreward Limited	0/100	GBP0.001	35
Uflexreward Holdings Limited	0/100	GBP0.001	35
England and Wales - Nightingale House, 46-48 East Street, Epsom, Surrey, United Kingdom, KT17 1HQ
Brand Evangelist for Beauty Limited ^Δ◊ (79.47)	79.47/0	GBP1.00	2
(100)	100/0	GBP1.00	85
England and Wales -1 More London Place, London, SE1 2AF
Unidis Twenty Six Limited (In Liquidation)	0/100	GBP1 .00	1
Lever Brothers Port Sunlight Limited (in liquidation)	0/100	GBP1.00	1
England and Wales - C/O Tmf Group 8th Fl oor, 20 Farringdon Street, London, United Kingdom, EC4A4AB
Unilever Ventures General Partner Limited	0/100	GBP1.00	1
Greece - Kymis ave & 10, Seneka str. GR-145 64 Kifisssia
Lipoma Management Consulting SA	100/0	EUR10.00	1
Haiti - Port-au-Prince
Unilever Haiti S.A.	100/0	HTG500,000	56
Hong Kong - 14th Floor, One Taikoo Place, 979 King's Road, Quarry Bay
UPD Hong Kong Limited	100/0	HKD 100.00	1
India - Unilever House, B. D. Sawant Marg, Chakala, Andheri (E), Mumbai 400 099
Bhavishya Alliance Child Nutrition Initiatives (67.18)	0/67.18	INR10.00	1
Hindustan Unilever Foundation (67.18)	0/67.18	INR10.00	1
	%
Israel - Park Zvalm Industrial Area, Beit Shean / Correspondance: P.O.B. 787, Beit Shean, 1090000
PCMR International Limited	55.40/44.60	NIS0.10	1
Italy-Via Plava, 74 10135 Torino
Equilibra S.R.L. (75)	75/0	EUR 7.80	5
Jamaica - White Marl Street, Spanish Town, PO Box 809, Parish Saint Catherine
Unilever Jamaica Limited	0/100	JMD1.00	1
Kenya - Commercial Street, P.O. BOX 40592-00100, Nairobi
Union East African Trust Limited ^*	0/100	KES20.00	1
Morocco - Km 10, Route Cotiere, Ain Sebaa, Casablanca
Societe Commerciale du Rif	0/100	MAD50.00	1
Societe Tangeroise de Parfumerie et d'Hygiene S.A.R.L.	0/100	MAD50.00	1
Myanmar-Shwe Gon Daing (West) 5th Street, No. 196, Mimosa Tower, Shwe Gon Daing (West) Ward, Bahan Township, Yangon, Myanmar 11201
Lever Brothers (Burma) Limited	100/0 M	MK500,000.00	1
Netherlands - Weena 455,3013 AL Rotterdam
Unilever International Hold ing B.V. ^*	100/0	EUR1.00	1
Palestine - Jamil Center, Al-Bireh
Unilever Agencies Limited (99)	0/9 9	JD1.00	1
Scotland -15 Atholl Crescent, Edinburgh, EH3 8HA
Unilever Ventures (SLP) General Partner Limited	0/100	GBP1.00	1
Sudan - Kafoury, Area (4), Industrial Zone, Khartoum
Unilever Sudanese Investment Company	0/100	SDF10.00	1
United States -13335 Maxella Ave. Marina del Rey, CA	90292
DSC Distribution, Inc.	55.40/44.60		7
United States - 233 Bleecker Street, New York, 10014
Grom WTC LLC	100/0		13
Grom Century City LLC	100/0		13
United States - 251 Little Falls Drive, Wilmington, DE, New Castle 19808
Cocotier, Inc	100/0	USD0.001	7
ASSOCIATED UNDERTAKINGS
Australia - 1-3 Newton Street, Cremome, VIC 3121
SNDR PTY LTD ^Δ ^◊ (100)	100/0	No Par Value	58
Australia - 3 Moss Place, North Melbourne, Victoria 3051
Group Fourteen Holdings Limited ^◊ (100) ^Δ	100/0	No Par Value	71
Bahrain - 161, Road 328, Block 358, Zinj, Manama
Unilever Bahrain Co. W.L.L. (49)	0/49	BHD50.00	1
Brazil - Avenue Engenheiro Luiz Carlos Berrini, 105, 16° andar, Ed. Berrini One, Itaim Bibi, CEP 0471/001-00, City of São Paulo, State of São Paulo
Gallo Brasil Distribuição e comércio Limitada (55)	0/55	BRL1.00	5
Brazil -123, Dirceu Alves Rodrigues, Vil a Sarah Avignon, Mogi das Cruzes/SP, 08773-450
Gallo Brasil Distribução e comércio Limitada (55)	0/55	BRL1.00	5
Canada-Suite 300-171 West Esplanade, North Vancouver, British Columbia Canada V7M 3K9
A&W Root Beer Beverages Canada Inc. (40)	25.82/14.18	No Par Value	38
Cyprus - 2 Marcou Dracou str., Engomi Industrial Estate, 2409 Nicosia
Unilever PMT Limited ^Δ (49)	0/49	EUR1.71	3
England and Wales - Chesterford Research Park, Little Chesterford, Saffron, Waldon CB101			XL
Arecor Limited ^Δ◊ (24.22)	0/24.22	GBP0.01	1
(36.23)	0/36.23	GBP0.01	35
England and Wales - Manor House, 21 Soho Square, London W1D 3QP
Blis Global Limited ^Δ◊ (30.83)	30.83/0	GBP0.00001	39
(0.20)	0.20/0	GBP0.00001	1
England and Wales - 81 Farringdon Street, London, EC4A 4BL
Blow Limited ^◊ (5.20)	5.20/0	GBP0.001	1
(57.57)	57.57/0	GBP0.001	57
England and Wales - First Floor, 59-61 High Street West, Glossop SK13 8AZ
CDDM Technology Limited ^Δ◊ (49.53)	0/49.53	GBP0.01	36
England and Wales - 2nd Floor, 17 Waterloo Place, London, SW1Y4AR
Langholm Capital II L.P.	46.30/0		4
England and Wales - Unit 1.8 & 1.9 The Shepherds Building, Charecroft Way, London, England, W14 0EE
SCA Investments Limited ^Δ◊ (5.98)	5.98/0	GBP0.001	35
(74.60)	74.60/0	GBP0.001	40
(25.19)	25.19/0	GBP0.001	41
(4.27)	4.27/0	GBP0.001	42
England and Wales - 167 Wimbledon Park Road, London SW18 5RH
THENUDECO LIMITEDAO (38.95)	38.95/0	GBP0.001	35
(12.71)	12.71/0	GBP0.000001	44
England and Wales - 2nd Floor, 5 Jubilee Place, Chelsea, London, SW3 3TD
Trinny London Limited ^Δ◊ (59.43)	59.43 /0	GBP0.01	43
(34.56)	34.56/0	GBP0.01	77
England and Wales - C/O Tmf Group 8th Floor, 20 Farringdon Street, London, EC4A 4AB
Voltea Limited ^Δ◊ (35.58)	0/35.58	EUR0.10	35
(66.83)	0/66.83	EUR0.10	44
(12.44)	0/12.44	EUR0.10	46
(18.14)	0/18.14	EUR0.10	52
(3.56)	0/3.56	EUR0.10	50
England and Wales -127 North Milton Park, Abingdon, Oxfordshire OX14 4SA
P2i Limited ^Δ◊ (12.89)	12.89/0	GBP0.0001	1
(5.44)	5.44/0	GBP0.0001	44
(5.44)	5.44/0	GBP0.0001	46
(50)	50/0	GBP1.00	80
England and Wales-1-2 Hatfields, London, England, SE1 9PG
Limitless Technology Limited ^Δ◊ (14.85)	14.85/0	GBP0.001	1
(11.98)	11.98/0	GBP0.001	35
England and Wales-Stu dio 311, Record Hall, 16-16a Baldwin's Gardens, Lond on, EC1N 7R.			J
Clean Beauty Co Ltd ^Δ◊ (69.76)	69.76/0	GBP0.0001	22
England and Wales- 170 Finchley Road, London, NW36 BP
GALLINEE LTD ^Δ◊ (87.38)	87.38/0	GBP0.01	44
England and Wales - C4 Lab Psc Building Unilever R&D Port Sunlight, Quarry Road East, Bebington, Wirral, CH63 3JW
Penhros Bio Limited (50)	0/50	GBP1.00	1
France - 6 rus des Freres Caudron, 78140 Velizy Villacoublay
Pegase S.A .S. (25)	16.14/8.86	EUR5,000.00	1
France - 7 rue Armand Peugeot, 92500 Rueil-Malmaison
Relais D'or Centrale S.A.S. (49.99)	32.27/17.72	No Par Value	1
Germany - Beerbachstraße 19, 91183 Abenberg
Hans Henglein & Sohn GmbH (50)	32.78/17.22	EUR100,000.00	1
Henglein & Co. Handels-und Beteiligungs GmbH & Co. KG ^◊ (50)	32/18		4
Henglein Geschäftsführungs GmbH ^◊ (50)	32/18	DEM50,000.00	1
Nürnberger Kloßteig NK GmbH & Co. KG ^◊ (50) Germany - Bad Bribaer Straße, 06647 Klosterhäseler	32/18		4
Henglein GmbH ^◊ (50)	32/18	DEM50,000.00	1
Germany - BeerbachstruBe 37, 17153 Stavenhagen
Hochreiter Frischteigwaren GmbH (50)	32.78/17.22	DEM250,000.00	1
Indonesia - Wisma Bango Lt.05, J LSulaiman No.32 Sukabumi Utara Kec. Kebon Jeruk, Jakarta Barat 11540
PT Anugr ah Mutu Bersama (40)	26.22/13.78	IDR 1,000,000.00	1
India - Plot No B- 9-10 - Near Huda Market, Sector 32, Guru gram, Gurgaon HR 122001
AAIDEA Solutions Private Limited ^Δ◊
(0.87)	0.87/0	INR10.00	75
(100)	100/0	INR100.00	72
(5.73)	5.73/0	INR100.00	73
( 8.19)	8.19/0	INR100.00	89
(31.13)	31.13/0	INR100.00	74
India - 1st & 2nd Floor, Kagalwala House, Plot No. 175, CST Road, Kalina, Bandra Kurla, Santacruz East Mumbai, Mumbai 400098
Peel-Works Private Limited ^Δ◊ (48.15)	48.15/0	INR30.00	63
(7.98)	7.98/0	INR30.00	70
India-403 Valentina, Hiranandani Estate Thane, Thane West, 40060 7, Maharashtra
Pureplay Skin Sciences (India) Private Limited ^◊ (0.09)	0 .09/0	INR 10.00	75
(100)	100/0	INR100.00	73
India -135 Hubtown Solaris, N. S. Phadke Marg, Andheri East-West Flyover Junction, Andheri (East) Mumbai 400069
O(1) India Private Limited ^◊(dba Shop 101 ) (0.001)	0.001/0	INR10.00	75
(29.15)	29.15/0	INR100. 00	76
Iran - No.32, Mokhberb Blvd, Ashrafi Esfashani Exo,.Tehran, Iran Postal Code: 1476785475
Golestan Co. (50.66)	50.66/0		1
Ireland - 70 Sir John Rogersons Quay, Dublin 2 Pepsi Lipton International Limited ^Δ	100/0	EUR1.00	52
	100/0	EUR1.00	53
	100/0	EUR1.00	54
	100/0	EUR1.00	55
Israel-Kochav Yokneam Building, 4th Floor, P.O. Box 14, Yokneam Illit 20692
IB Ventures Limited ^Δ (99.74)	99.74/0	ILS1.00	14
Japan - #308,5-4-1, Minami Azabu, Tokyo
Grom Japan K.K ^◊ (34)	34/0	JPY50,000.00	1
Luxembourg - 5 Heienhaff, L-1736 Senningerberg
Helpling Group Holding S.à r.l. ^Δ◊ (98.57)	98.57/0	EUR1.00	60
Mauritius - c/o Apex Fund Services (Mauritius) Ltd, 4th Floor, 19 Bank Street, Cyber City, Ebene 72201
Capvent Asia Consumer Fund LimitedA (40.41)	40.41/0	USD0.01	78
Oman - Po Box 17 11, Ruwi, Postal code 112
Towell Unilever LLC (49)	0/49	OMR10.00	1
Philippines -11th Avenue comer 39th Street, Bonifacio Triangle, Bonifacio Global City, Taguig City, M.M
Sto Tomas Paco Land Corp ^Δ◊	64. 55/35.45	PHP1.00	7
Paco Platform 7.5 Inc. ^Δ◊	64.55/35.45	PHP1.00	7
Cavite Horizons Land, Inc. ^◊ (35.10)	22.66/12.44	PHP1.00	7
	64.55/35.45	PHP10,000.00	14
Industrial Realties, Inc. ^◊ (45.40)	29.30/16.1	PHP1.00	7
Philippines - Manggahan Light Industrial Compound, A. Rodriguez Avenue, Bo. Manggahan, Pasig City
WS Holdings Inc. ^Δ◊	64.55/35.45	PHP1.00	29
Selecta Walls Land Corp ^Δ◊	64.55/35.45	PHP10.00	29
Portugal- Largo Monter roio Mascarenhas, 1,1099-081 Lisboa
Fima Ola - Produtos Alimentares, S.A. (55)	0/55	EUR4,125,000	1
Gallo Worldwi de, Limitada(55)	0/55	EUR550,000	5
Grop - Gelado Reta il Operation Portugal, Unipessoal, LDA (55)	0/55	EUR27,500	5
Transportadora Central do Infante, Limitada (54)	0/54	EUR27,000	1
Unilever Fima, Limitada (55)	0/55	EUR14,462,336.00	5
Victor Guedes - Industria e Comercio, S.A. (55)	0/55	EUR275.00	1
Saudi Arabia - 8 770 King Abudlaziz Branch Road, Ash Shati, Jeddah 23514-3261
Binzagr Unilever Distribution (73.50)	24.50/49	SAR1,000.00	1
Sweden - No 18 Office & Lounge, Briger Jarlsgatan 18,114 34 Stockholm
SachaJuan Haircare AB ^Δ◊ (69.5)	69.5/0	SEK1.00	9
United Arab Emirates - P.O. Box 49, Dubai
Al Gurg Unilever LLC (49)	0/49	AED1,000 .00	1
United Arab Emirates - Po Box 49, Abu Dhabi
Thani Murshid Unilever LLC (49)	0/49	AED1,000.00	1
United States-1679 South Dupont Highway, Suite 100, Dover, Kent County, Delaware 19901
Beauty Bakerie Cosmetics Brand Inc ^Δ◊
(50.05)	50.05/0	USD0.001	86
(16.24)	16.24/0	USD0.001	87
(6.42)	6.42/0	USD0.001	88
United States - 2600 Tenth St #101, Berkeley CA 94710
Machine Vantage ^◊(9.86)	9.86/0		7
(49.93)	49.93/0		58
United States -c/o Law Traders Inc., 300 Delaware Ave., Suite 210, in the City of Wilmington, County of New Castle
Quantbiome Inc. (dba Thryve) ^Δ◊ (23.26)	23.26/0	USD0.00001	59
United States- C/O National Registered Agents, Inc. 160 Green Tree Drive, Suite 101, Dover, Delaware 19904
Discuss.io Inc ^Δ◊ (8.46)	8.46/0	USD0.0001	7
(17.88)	17.88/0	USD0.0001	55
(50.53)	50.53/0	USD0.0001	58
United States - 700 Sylvan Avenue, Englewood Cliffs, New Jersey 07632-3201
Pepsi Lipton Tea Partnership (50)	27.70/22.30		4
Food Service Direct Logistics, LLC	55.40/44.60		13
United States - 548 Market St #70998, San Francisco, CA 94104-5401
Physic Ventures L.P. ^◊ (57.27)	57.27/0		4
United States - c/o Cogency Global Inc, 850 New Burton Road, Suite 201, Dover, Kent County, DE 19904
Sunbasket Inc ^Δ◊ (2.81)	2.81/0	USD0.0001	7
(89.13)	89.13/0	USD0.0001	60
(1.93)	1.93/0	USD0.0001	61
(8.33)	8.33/0	USD0.0001	91
United States - 251 Little Falls Drive, Wilmington, Delaware, New Castle 19808
Nutraceutical Wellness Inc (dba Nutrafol) ^Δ◊ (41.70)	41.70/0	USD0.0001	62
(56.82)	56.82/0	USD0.0001	51
(10.95)	10.95/0	USD0.0001	93
(49.72)	49.72/0	USD0.0001	94
True Botanical s, Inc ^Δ◊ (37.17)	37.17/0	USD0.0001	81
(12.27)	12.27/0	USD0.0001	82
(25.59)	0/25.59	USD0.0001	83
United - States 850 New Burton Road, in the City of Dover, County of Kent, Delovare, USA
Volition Beauty Inc ^Δ◊ (66.67)	66.67/0	USD0.0001	44
United States -160 Greentrre Dr Ste 101, Dover Kent 19904
Koco Life LLC ^Δ◊ (25.00)	25.00/0		95
(39.24)	39.24/0		92
United States -1013 Centre Road Suite 403S, Wilmington New Castle, 19805
Zitsicka Inc ^Δ◊ (26.36)	26.36/0		44
United States - 251 Little Falls Drive, City of Wilmington, County of New Castle, Delaware 19808
FabFitFun Inc ^Δ◊ (68.18)	68.18/0		6
(7.48)	7.48/0		58
United States - c/o New Voices Partners, LLC. 7 Witch Lane. Rowayton, Connecticut 06853
New Voices Fund LP ^◊ (32.90)	32.90/0		4

Notes:

1: Ordinary, 2: Ordinary-A, 3: Ordinary-B, 4: Partnership, 5: Quotas, 6: Class- A Common, 7: Common, 8: Class A, 9: Class B, 10: Class C, 11: Clas s II Common, 12: Class III Common, 13: Membership Interest, 14: Preference, 15: Redeemable Preference, 1 6: Limited by Guarantee, 17: C Ordinary Shares, 18: Viscountcy, 19: Redeemable Golden Share, 20: Deferred, 21: Ordinary-C, 22: Preferred, 23: Redeemable Preference Class A, 24: Redeemable Preference Class B, 25: Special, 26: Cumulative Preference, 27:5% Cumulative Preference, 28: Non-Voting Ordinary B, 29: Common B, 30:Management, 31: Dormant, 32: A, 33: B, 34: Cumulative Redeemable Preference, 35: A-Ordinary, 36: Preferred Ordinary, 37: Ordinary-G, 38: Class Common-B, 39: Series A Par ticipating Preference, 40: H-Ordinary, 41: l-Ordinary, 42: J-Ordinary, 43: Series A Preferred Conver tible, 44: A Preferred, 45: A1 Preferred, 46: B Preferred, 47: Series 2 Preferred, 48: Series 3 Preferred, 49:Series A2 Convertible Redeemable Preference, 50: D Preferred, 51: Series A-3 Preferred, 52: C Preferred, 53:E Ordinary, 54: G Preferred, 55: Series Seed, 56: Nominal, 57: Preferred A, 58: Series A Preferred, 59: Series Seed-2 Preferred, 60: Series C-2, 61: Series D, 62: Series A1 Preferred, 63: Series B-2 Preference, 64: Class A Interests, 65: Class B Interests, 66. Ownership Units, 67. Seed B CCPS, 68. Office Holders, 69. Security, 70. Series B-3 Preference, 71. Series B Preferred, 72. Series Seed B CPPS, 73. Series A CPPS, 74. Series A2 CPPS, 75. Equity, 76. Series B CPPS, 77. Series B Preferred Convertible, 78. Class A Ordinary Redeemable Non Voting Ordinary, 79. B Ordinary Shares, 80. N Preferred, 81. A-1 Com, 82. A-2 Com, 83. A-3 Com, 84. Series A EIS, 85. Series A Convertible Preferred, 86. Series A Preferred, 87. Series B Preferred, 88. Series C Preferred, 89. Series A1 CPPS, 90. N Ordinary, 91. Series E, 92. Series C-2 Pref, 93. Series B-1 Preferred, 94. Series B-2 Preferred, 95. Series C-1 Pref, 96. B3 Ordinary.

^* Indicates an undertaking for which Unilever N.V. has issued a declaration of assumption of liability in accordance with Article 2:403 of the Dutch Civil Code.
^o Indicates an undertaking directly held by N.V. or PLC. All other undertakings are indirectly held. In the case of Hindustan Unilever Limited 51.48% is directly held and the remainderof 15.70% is indirectly held. In the case of Unilever Kenya Limited 39.13% is directly held and the remainder of 60.87% is indirectly held. In the case of Unilever Sri Lanka Limited 5.49% is directly held and the remainder of 94.51% is indirectly held. In the case of Mixhold B.V. 27.71% is directly held and the remainder of 72.29% is indirectly held. In the cases of each of Unilever Gida Sarayi ve Ticaret A.Ș. and Unilever Sarayi ve Ticaret Turk AȘ. a fractional amount is directly held and the remainder is indirectly held. In the case of United Holdings Limited, the ordinary shares are directly held and the preferred shares are indirectly held. In the case of Mixhold N.V., 55.37% of the ordinary - A shares are directly held, the remainder of 44.63% are indirectly held and the other share classes are indirectly held. In the case of Naamlooze Vernootschap Elma the ordinary shares are directly held and the cumulative preference shares are indirectly held.
^† Shares the undertaking holds in itself.
^Δ Denotes an undertaking where other classes of shares are held by a third party.
^X Binzagr Unilever Limited, Unilever Home and Personal Care Products Manufacturing LLC and UTIC Distribution S.A. are subsidiary undertakings pursuant to section 1162(2)(b) Companies Act 2006. Severn Gulf FZCO is a subsidiary undertaking pursuant to section 1162(4)(a) Companies Act 2006. The Unilever Group is entitled to 50% of the profits made by Binzagr Unileve r Limited. The Unilever Group is entitled to 80% of the profits made by Unilever Home and Pe rsonal Care Products Manufacturing LLC and Unilever General Trading LLC.
^◊ Accounted for as non-current investments within non-current financial assets.
^∞ Exemption pursuant to Section 264b German Commercial Code.

Furtherto the above disclosures (1) due to the unified board of Unilever N.V. and Unilever PLC, Unilever N.V. and Unilever PLC are each considered to be a subsidiary undertaking of the other in accordance with section 1162 (4) (b) of the Companies Act 2006 and (2) details of holdings of subsidiary undertakings in the share capitals of Unilever N.V. and Unilever PLC are given underthe heading Our Shares on pages 51 to 52.

In addition, we have revenues either from our own operations or otherwise in the following locations: Afghanistan, Albania, Andorra, Angola, Antigua, Armenia, Azerbaijan, Bahamas, Barbados, Belarus, Belize, Benin, Bhutan, Bosnia and Herzegovina, Botswana, Brunei Darussalam, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Democratic Republic of Congo, Dominica, Equatorial Guinea, Eritrea, Fiji, Gabon, Gambia, Georgia, Grenada, Guinea, Guinea-Bissau, Guyana, Iceland, Iraq, Kiribati, Kuwait, Kyrgyzstan, Lesotho, Liberia, Libya, Liechtenstein, Luxembourg, Macedonia, Madagascar, Maldives, Mali, Malta, Marshall Islands, Martinique, Mauritania, Mauritius, Micronesia (Federated States of), Monaco, Mongolia, Montenegro, Namibia, Nauru, Palau, Papua New Guinea, Qatar, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Samoa, San Marino, Senegal, Seychelles, Sierra Leone, Slovenia, Solomon Islands, Somalia, South Sudan, Sudan, Suriname, Swaziland, Syrian Arab Republic, Tajikistan, Timor Leste, Togo, Tonga, Turkmenistan, Tuvalu, Uzbekistan, Vanuatu and Yemen.

The Unilever Group has established branches in Argentina, Azerbaijan, Cote d'Ivoire, Cuba, the Dominican Republic, Kazakhstan, the Philippines, Saudi Arabia, Slovenia, Turkey and the United Kingdom.

Shareholder information

Financial calendar

Annual general meetings

	Date	Voting Record date	Voting and Registration date
NV	30 April 2020	2 April 2020	23 April 2020
PLC	29 April 2020	-	27 April 2020

Quarterly dividends

Dates listed below are applicable to all four Unilever listings (NV ordinary shares, PLC ordinary shares, NV New York shares, and PLC ADRs).

	Announcement date	Ex-dividend date	Record date	Payment date
Quarterly dividend announced with the Q4 2019 results	30 January 2020	20 February 2020	21 February 2020	18 March 2020
Quarterly dividend announced with the Q1 20120 results	23 April 2020	14 May 2020	15 May 2020	4 June 2020
Quarterly dividend announced with the Q2 2020 results	23 July 2020	6 August 2020	7 August 2020	9 September 2020
Quarterly dividend announced with the Q3 2020 results	22 October 2020	5 November 2020	6 November 2020	2 December 2020

Contact details

Unilever N.V. and Unilever PLC

100 Victoria Embankment

London EC4Y ODY

United Kingdom

Institutional Investors telephone +44 (0)20 7822 6830

Any queries can also be sent to us electronically via

www.unilever.com/contact/contact-form

Private Shareholders telephone +44 (0)20 7822 5500

Private Shareholders can email us at shareholder.services@unilever.com

Shareholder Services

The Netherlands

ABN AMRO Bank N.V.

Gustav Mahlerlaan 10

1082 PP Amsterdam

Telephone +31 (0)20 344 2000

Email corporate.broking@nl.abnamro.com

UK

Computershare Investor Services PLC

The Pavilions

Bridgwater Road

Bristol BS99 6ZZ

Telephone +44 (0)370 600 3977

Website www.investorcentre.co.uk

FAQ and Contact Form computershare.co.uk/contactus

US

American Stock Transfer & Trust Company

Operations Center

6201 15th Avenue

Brooklyn, NY 11219

Toll-free number +1 866 249 2593

Direct dial +1 7189218124

Email db@astfinancial.com

Website

Shareholders are encouraged to visit our website which has a wealth of information about Unilever.

There is a section on our website designed specifically for investors. It includes detailed coverage of the Unilever share price, our quarterly and annual results, performance charts, financial news and investor relations speeches and presentations. It also includes details of the conference and investor/analyst presentations.

You can also view the Unilever Annual Report and Accounts 2019 (and the Additional Information for US Listing Purposes) on our website, and those for prior years.

www.unilever.com

www.unilever.com/investorrelations

www.unilever.com/investor-relations/annual-report-and-accounts/

Publications

Copies of the Unilever Annual Report and Accounts 2019 (and the Additional Information for US Listing Purposes) and the Annual Report on Form 20-F 2019 can be accessed directly or ordered via the website.

www.unilever.com/investorrelations

Unilever Annual Report and Accounts 2019

The Unilever Annual Report and Accounts 2019 (and the Additional Information for US Listing Purposes) forms the basis for the Annual Report on Form 20-F that is filed with the United States Securities and Exchange Commission, which is also available free of charge from their website.

www.sec.gov

Quarterly results announcements

Unilever's quarterly results announcements are in English with figures in euros.

Cautionary Statement

This document 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', orthe 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 otherfactors 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.

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 Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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 in the Annual Report on Form 20-F 2019 and the Unilever Annual Report and Accounts 2019.

This document is not prepared in accordance with US GAAP and should not therefore be relied upon by readers as such. The Annual Report on Form 20-F 2019 is separately filed with the US Securities and Exchange Commission and is available on our corporate website

www.unilever.com

In addition, a printed copy of the Annual Report on Form 20-F 2019 is available, free of charge, upon request to Unilever, Investor Relations Department, 100 Victoria Embankment, London EC4Y ODY, United Kingdom.

This document comprises regulated information within the meaning of Sections 1:1 and 5:25c of the Act on Financial Supervision ('Wet op hetfinancieel toezicht (Wft)') in the Netherlands.

The brand names shown in this report are trademarks owned by or licensed to companies within the Group.

References in this document to information on websites (and/or social media sites) are included as an aid to their location and such information is not incorporated in, and does not form part of, the Unilever Annual Report and Accounts 2019 or the Annual Report on Form 20-F 2019.

For further information about Unilever please visit our website:

www.unilever.com

Unilever N.V.

Head Office and Registered Office

Weena 455, PO Box 760

3000 DK Rotterdam

The Netherlands

T +31 (0)10 217 4000

Commercial Register Number: 24051830

Unilever PLC

Head Office

100 Victoria Embankment

London EC4Y 0DY

United Kingdom

T +44 (0)20 7822 5252

Registered Office

Unilever PLC

Port Sunlight

Wirral

Merseyside CH62 4ZD

United Kingdom

Registered in England and Wales Company Number: 41424

Unilever Deutschland IPR GmbH & Co. OHG