Unilever PLC ("Unilever")
2023 Annual Financial Report
Announcement
Unilever announces that the
following documents are available on its website at
www.unilever.com/ara
Unilever Annual Report and Accounts
2023
Unilever Annual Report on Form 20-F
2023
In compliance with Listing Rule
9.6.1 and DTR 6.3.5, a copy of the Unilever Annual Report and
Accounts 2023 in unedited full text and a copy of the Unilever
Annual Report on Form 20-F has been submitted to the National
Storage Mechanism and will shortly be available for inspection
at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
In compliance with section 5:25m(5)
Financial Markets Supervision Act the Annual Report and Accounts
2023 was submitted to the Dutch Authority for the Financial Markets
(AFM). The AFM publishes the report in its public
register.
Unilever will also file its Form
20-F for the year ended 31 December 2023, with the US Securities
and Exchange Commission today. The Form 20-F will be available for
download from www.unilever.com/ara
or www.sec.gov
Attached to this announcement is the
additional information for the purposes of compliance with the
Disclosure and Transparency Rules including principal risk factors,
details of related party transactions and the directors'
responsibility statement.
The unaudited 2023 Full Year and
Fourth Quarter Results for the year ended 31 December 2023, which
were announced on 8 February 2024, were prepared in accordance with
IAS 34.
ADDITIONAL INFORMATION
Principal Risks
Our business is subject to risks and
uncertainties. On the following pages we have identified the risks
that we regard as the most material to Unilever's business and
performance at this time.
Our principal risks include risks
that could impact our business in the short term (i.e. the next two
years), medium term (i.e. the next three to ten years) or over the
longer term (i.e. beyond ten years). As part of our process to
review our principal risks, we also consider any additional risks
that could emerge in the future.
Our principal risks have remained
consistent with previous years. We also reflect on whether we think
the level of risk associated with each of our principal risks is
increasing or decreasing. There are three principal risks where we
believe there is an increased level of risk compared with last
year:
· Consumer preference: consumer choices and the manner in which
they shop is rapidly evolving requiring us to be ahead of
our competition.
· Climate change: this risk has further intensified during 2023,
as actions to address global warming are not moving at the pace
anticipated and there has been an increase in physical climate
risks seen by increased flooding and droughts together with the
ongoing global energy crisis.
· Systems and information: technology is disrupting the way we
do business and we need to accelerate innovation to keep pace with
the developments. The cyber threat landscape has increased in the
recent past and continues to remain volatile.
Biodiversity loss continues to be
monitored as an emerging risk. A loss of forests and soil due to
potential physical and regulatory risks could make future harvests
more difficult and expensive in the long-term (see pages 51 to 53).
Refer to our Climate Transition Action Plan: Annual Progress Report
(pages 43 to 47) for steps taken to improve biodiversity.
Technological advancements such as artificial intelligence, machine
learning and augmented reality are disrupting the way we do
business and connect with consumers. We do not consider this as a
principal risk yet but do acknowledge that it is both a risk and an
opportunity. We have an executive-level task force set up to
identify the risks, opportunities and, at the same time, take
responsible action to keep pace with technology.
We set out below certain mitigating
actions that we believe help us to manage our principal risks.
However, we may not be successful in deploying some or all of these
mitigating actions. If the circumstances in these risks occur or
are not successfully mitigated, our cash flow, operating results,
financial position, business and reputation could be materially
adversely affected. In addition, risks and uncertainties could
cause actual results to vary from those described, which may
include forward-looking statements, or could impact on our ability
to meet our targets or be detrimental to our profitability
or reputation.
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RISK
DESCRIPTION
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MANAGEMENT OF RISK
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CONSUMER PREFERENCE
Our success depends on the value and
relevance of our brands and products to consumers around the world
and on our ability to innovate and remain competitive.
Consumer tastes, preferences and
behaviours are changing more rapidly than ever before. We see a
growing trend for consumers preferring brands which both meet their
functional needs and have an explicit social or environmental
purpose.
Technological change is disrupting
our traditional brand communication models. Our ability to develop
and deploy the right communication, both in terms of messaging
content and medium is critical to the continued strength of our
brands.
We are dependent on creating
innovative products that continue to meet the needs of our
consumers in times of economic instability and volatility. We also
need to be competitive, bringing innovation to market with speed in
areas such as personalised and premium beauty offerings, health,
and hygiene.
Level of risk: Increase
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We monitor external market trends
and collate consumer, customer and shopper insights in order to
develop brand strategies and build competitive advantage. We are
focused on developing superior products with a particular focus on
our Power Brands.
Our Research and Development
function actively searches for ways in which to translate the
trends in consumer preference and taste into new technologies for
incorporation into future products. Our innovation management
process converts strategies into projects to launch new products in
the market, scale technology across categories, and build up the
multi-year innovation pipeline. This enables us to respond to
rapidly changing consumer trends with speed.
Our brand communication strategies
are designed to optimise digital communication opportunities. We
develop and customise brand messaging content specifically to
ensure that our brand messages reach our target consumers,
including social purpose where appropriate.
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PORTFOLIO MANAGEMENT
Unilever's strategic investment
choices will affect the long-term growth and profits of our
business.
Unilever's growth and profitability
are determined by our portfolio of Business Groups, geographies and
channels and how these evolve over time. If Unilever does not make
optimal strategic investment decisions, then opportunities for
growth and improved margin could be missed.
Level of risk: No change
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Our Business Group strategies and
our business plans are designed to ensure that resources are
prioritised towards those categories and markets having the
greatest long-term potential for Unilever.
Our acquisition and disposal
activity is driven by our portfolio strategy with a clear,
defined evaluation process.
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CLIMATE CHANGE
Climate change and governmental
actions to reduce such change may disrupt our operations and/or
reduce consumer demand for our products.
Climate change is already impacting
our business in various ways. Government action to reduce climate
change - such as the introduction of a carbon tax, land
use regulations or product composition regulations which
restrict or ban certain GHG-intensive ingredients - could impact
our business through higher costs or reduced flexibility of
operations.
Physical environment risks such as
water scarcity could impact our operations or reduce demand for our
products that require water during consumer use. Increased
frequency of extreme weather events such as high temperatures,
hurricanes or floods could cause increased incidence of disruption
to our supply chain, manufacturing and distribution network.
If we do not take action, climate change could result in
increased costs, reduced profit and reduced growth.
Level of risk: Increase
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We monitor climate change and in
2021 we published our Climate Transition Action Plan (update
on progress in 2023 included on pages 43 to 47 of the Annual
Report).
We are developing products with a
lower carbon footprint, decarbonising our operations
through eco-efficiency measures, powering our factories with
renewable electricity, and replacing climate-harmful refrigerants.
We invest in new products and formulations so that our products
work with less water, poor quality water, or no water. We integrate
weather system modelling into our forecasting process to
consider the impact on raw material availability
and pricing.
We also monitor government policy
and actions to combat climate change and advocate for changes to
public policy frameworks consistent with the 1.5°C ambition of the
Paris Agreement.
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PLASTIC PACKAGING
We use a significant amount of
plastic to package our products. A reduction in the amount of
virgin plastic we use, the use of recycled plastic and an
increase in the recyclability of our packaging are critical
to our future success.
Both consumer and customer responses
to the environmental impact of plastic waste and emerging
regulations by governments to tax or ban the use of certain
plastics requires us to find solutions to reduce the amount of
plastic we use, increase recycling post-consumer use and source
recycled plastic for use in our packaging. We are
also dependent on the work of our industry partners to create
and improve recycling infrastructure throughout the
world.
There is a risk around finding
appropriate replacement materials, but also due to high demand, the
cost of recycled plastic or other alternative packaging materials
could significantly increase in the foreseeable future and this
could impact our business performance. We could also be exposed
to higher costs as a result of taxes or fines if we are
unable to comply with plastic regulations, which would again impact
our profitability and reputation.
Level of risk: No change
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We are committed to reducing the
amount of post-consumer plastic packaging waste going to landfill.
We have committed to ensuring 100% of our plastic packaging is
reusable, recyclable or compostable by 2025 and are working
with partners and consumers to raise awareness and find
solutions to improve the recycling infrastructure for
plastics. This includes supporting infrastructure development and
optimising EPR schemes, as well as helping consumers to
understand disposal and collection methods.
Work continues to progress in the
main themes for rigid packaging (e.g. recyclable pumps, recyclable
tubes). For flexibles, we continue to explore new material
developments, to support improving our recyclability profile. We
aim to halve our use of virgin plastic by both reducing usage and
accelerating use of recycled plastic through the redesign of
products and increasing our use of post-consumer recycled
materials.
We are working on innovative
solutions through new business models. We aim to collect and
process more plastic packaging than we sell, enabled through
driving systematic change in circular thinking at an industry
level working with partners such as the Ellen MacArthur
Foundation.
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CUSTOMER AND CHANNEL
Successful customer relationships
and expanding in channels of the future are vital to our business
and continued growth.
Maintaining strong relationships
with our existing customers and building relationships with
new customers who have built new technology-enabled business models
to serve changing shopper habits are necessary to ensure our brands
are well presented to our consumers and available for purchase at
all times. Digital commerce continues to be a critical channel for
growth.
The strength of our customer
relationships also affects our ability to obtain pricing and
competitive trade terms. Failure to maintain strong relationships
with customers could negatively impact our terms of business
with affected customers and reduce the availability of our
products to consumers.
Level of risk: No change
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We build and maintain trading
relationships across a broad spectrum of channels ranging from
centrally managed multinational customers through to small traders
accessed via distributors in many emerging markets. We identify
changing shopper habits and build relationships with new customers,
such as those serving the digital commerce channel.
We develop joint business plans with
our key customers that include detailed investment plans and
customer service objectives and we regularly monitor
progress.
We have developed capabilities for
customer sales and outlet design which enable us to find new
ways to improve customer performance and enhance our customer
relationships. We invest in technology to optimise order and stock
management processes for our distributive trade
customers.
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TALENT
A skilled workforce and agile ways
of working are essential for the continued success of our
business.
With the rapidly changing nature of
work and skills, there is a risk that our workforce is not
equipped with the skills required for the new
environment.
Our ability to attract, develop and
retain a diverse range of skilled people is critical
if we are to compete and grow effectively. This is
especially true in our key emerging markets where there can be a
high level of competition for a limited talent
pool.
The loss of management or other key
personnel or the inability to identify, attract and retain
qualified personnel could make it difficult to manage the
business and could adversely affect operations and financial
results.
Level of risk: No change
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We have an integrated management
development process which includes regular performance reviews
underpinned by a common set of leadership behaviours, skills and
competencies. We have development plans to upskill and reskill
employees for future roles and will bring in flexible talent
to access new skills.
We have targeted programmes to
attract and retain top talent and we actively monitor our
performance in retaining a diverse talent pool within
Unilever.
We regularly review our ways of
working to drive speed and simplicity through our business in
order to remain agile and responsive to marketplace
trends.
A move to more agile ways of working
is ongoing to unlock internal capacity and prioritise work based on
growth and impact.
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BUSINESS OPERATIONS
Our business depends on purchasing
materials, efficient manufacturing and the timely distribution
of products to our customers.
Our supply chain network is exposed
to potentially adverse events such as geopolitical sanctions,
physical disruptions, environmental and industrial accidents, trade
restrictions or disruptions at a key supplier, which could impact
our ability to deliver orders to our customers. Geopolitical
tensions have continued to challenge the continuity and cost of our
supply chain in 2023.
Maintaining manufacturing operations
whilst adhering to changing local regulations and meeting enhanced
health and safety standards has proven possible but has required
significant management. In addition, ensuring the operation of
a global logistics network for both input materials and finished
goods continues to present challenges and requires continued focus
and flexibility.
The cost of our products is being
affected by the cost of the underlying commodities and
materials from which they are made. Fluctuations in these
costs cannot always be passed on to the consumer through pricing
and will need to be carefully managed.
Level of risk: No change
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We have contingency plans designed
to enable us to secure alternative key material supplies at short
notice, to transfer or share production between manufacturing sites
and to use substitute materials in our product formulations and
recipes.
We have policies and procedures
designed to ensure the health and safety of our employees and
the products in our facilities, and to deal with major incidents
including business continuity and disaster recovery.
Commodity price risk is managed
through forward buying of traded commodities,
other appropriate hedging mechanisms and product pricing.
Trends are monitored and modelled regularly and integrated into our
forecasting process.
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SAFE AND HIGH-QUALITY PRODUCTS
The quality and safety of our
products are of paramount importance for our brands and our
reputation.
The risk that raw materials are
accidentally or maliciously contaminated throughout the supply
chain or that product defects occur due to human error, equipment
failure or other factors cannot be excluded.
Labelling errors can have
potentially serious consequences for both consumer safety
and brand reputation. Therefore, on-pack labelling needs to
provide clear and accurate ingredient information in order
that consumers can make informed decisions regarding the
products they buy.
Level of risk: No change
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Our product quality processes and
controls are comprehensive, from product design to customer shelf.
They are verified annually and regularly monitored through
performance indicators that drive improvement activities. Our key
raw material suppliers are externally certified and the materials
received are monitored to ensure that they meet the rigorous
quality standards that our products require. We also have stringent
requirements for the design, manufacture and delivery of our
products, to ensure we consistently supply the safe and
high-quality products which our customers and consumers
expect.
In the event of a marketplace
incident relating to the safety of our consumers or the quality of
our products, incident management teams are activated in the
affected business units and markets, supported by our product
quality, science and communications experts, to ensure timely and
effective action.
We have processes in place to ensure
that the data used to generate on-pack labelling and the final
labels themselves are compliant with applicable regulations and
with relevant Unilever labelling policies in order to provide the
clarity and transparency needed for consumers.
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SYSTEMS AND INFORMATION
Unilever's operations are
increasingly dependent on IT systems and safeguarding the
confidentiality, integrity of data and the management of
information.
The cyber-attack threat of
unauthorised access and misuse of sensitive information or
disruption to operations continues to increase with the level of
incidents rising year-on-year. Such an attack could inhibit our
business operations in a number of ways, including disruption to
sales, production and cash flows, ultimately impacting our
results.
In addition, increasing digital
interactions with customers, suppliers and consumers place ever
greater emphasis on the need for secure and reliable IT
systems and infrastructure and careful management of the
information that is in our possession to ensure data
privacy.
Level or risk: Increase
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To reduce the impact of
cyber-attacks on our business, we are following a defence in-depth
strategy, guided by industry standards frameworks. We have many
Protect, Detect and Respond capabilities in place which are
continuously being monitored and improved.
We have policies covering the
protection of both business and personal information, as well as
the use of IT systems and applications by our employees. Our
employees are trained to understand these requirements.
We also have a set of IT security
standards and closely monitor their operation to protect our
systems and information. Hardware that runs and manages core
operating data is fully backed up with separate contingency systems
to provide real-time backup operations should they ever be
required.
We have standardised ways of hosting
information on our public websites and have systems in place to
monitor compliance with appropriate privacy laws and regulations,
and with our own policies.
We also maintain a global system for
the control and reporting of access to our critical IT systems.
This is supported by an annual programme of testing of access
controls.
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BUSINESS TRANSFORMATION
Successful execution of business
transformation projects is key to delivering their intended
business benefits and avoiding disruption to
other business activities.
We are in the second year of a
significant organisational transformation, operating through five
new Business Groups, with some key changes still to be delivered.
We are also continually engaged in major change projects, including
acquisitions and disposals. These changes drive continuous
improvement in our business and strengthen our portfolio and
capabilities. Continued digitalisation of our business models and
processes, together with enhancing data management capabilities, is
a critical part of our transformation.
We have an extensive programme of
transformation projects. Failure to execute such initiatives
successfully could result in under-delivery of the expected
benefits and there could be a significant impact on the value of
the business.
Level of risk: No change
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All acquisitions, disposals and
global organisational transformation projects are sponsored by a
member of the ULE. All such projects have steering groups in place
led by a senior executive and regular progress updates are
provided to the ULE and Board (where relevant). Sound project
disciplines are used in all transformation projects and these
projects are resourced by dedicated and appropriately qualified
personnel.
The digitalisation of our business
is led by a dedicated specialist team together with
representatives from all parts of the business to ensure an
integrated and holistic approach.
A significant part of it involves
use of technology for better data management and automation of
business processes. New ways of working are being developed to
manage this new business model.
Unilever also monitors the volume of
change programmes under way in an effort to stagger the impact on
current operations and to ensure minimal
disruption.
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ECONOMIC AND POLITICAL INSTABILITY
Adverse economic conditions may
affect one or more countries, regions or may extend globally.
Unilever operates around the world and is exposed to economic
and political instability that may reduce consumer demand for
our products, disrupt sales operations and/or impact the
profitability of our operations.
In 2023, organisations have
continued to see geopolitical and economic volatility leading to
significant disruption and cost inflation impacting parts of the
business. Further potential trade and economic sanctions risk
global supply chain disruption and deep recession. Risks associated
with the global energy crisis are leading to significantly higher
energy prices and could disrupt our operations.
Government actions such as trade and
economic sanctions, foreign exchange or price controls can impact
on the growth and profitability of our local
operations.
Unilever has more than half of its
turnover in emerging markets which can offer
greater growth opportunities but also exposes Unilever to
related economic and political volatility.
Level of risk: No change
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The breadth of Unilever's portfolio
and our geographic reach help to mitigate our exposure to any
particular localised risk. Our flexible business model allows us to
adapt our portfolio and respond quickly to develop new offerings
that suit consumers' and customers' changing needs during economic
downturns.
We regularly update our forecast of
business results and cash flows and, where necessary, rebalance
investment priorities.
We believe that many years of
exposure to emerging markets have given us experience of operating
and developing our business successfully during periods of economic
and political volatility.
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TREASURY AND TAX
Unilever is exposed to a variety of
external financial risks in relation to Treasury
and Tax.
The relative value of currencies can
fluctuate widely and could have a significant impact on
business results. Further, because Unilever consolidates its
financial statements in euros it is subject to exchange risks
associated with the translation of the underlying net assets
and earnings of its foreign subsidiaries.
We are also subject to the
imposition of exchange controls by individual countries which could
limit our ability to import materials paid in foreign currency or
to remit dividends to the parent company.
A material shortfall in our cash
flow could undermine Unilever's credit rating, impair investor
confidence and restrict Unilever's ability to raise funds. In times
of financial crisis, there is a further risk that we may
not be able to raise funds due to market
illiquidity.
We are exposed to counter-party
risks with banks, suppliers and customers, which could result in
financial losses.
Tax is a complex and evolving area
where laws and their interpretation are changing regularly, leading
to the risk of unexpected tax exposures. International tax reform
remains a key focus of attention.
Level of risk: No change
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Currency exposures are managed
within prescribed limits and by the use of financial hedging
instruments. Further, operating companies borrow in local currency
except where inhibited by local regulations, lack of local
liquidity or local market conditions.
We seek to maintain access to global
debt markets through short-term and long-term debt programmes. In
addition, we maintain significant undrawn committed credit
facilities for general corporate purposes as disclosed in note
16A.
Group treasury regularly monitors
exposure to our banks, tightening counter-party limits where
appropriate. Unilever actively manages its banking exposures on a
daily basis. We regularly assess and monitor counter-party risk in
our suppliers and customers and take appropriate action to manage
our exposures.
Our Global Tax Principles provide
overarching governance and we have a process in place
to monitor compliance with the Tax Principles. We have a Tax
Risk Framework in place which sets out the controls established to
assess and monitor tax risk for direct and indirect taxes. We
monitor proposed changes in taxation legislation and ensure these
are taken into account when we consider our future business
plans.
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ETHICAL
Unilever's brands and reputation are
valuable assets and the way in which we operate, contribute to
society and engage with the world around us is always under
scrutiny both internally and externally.
Acting in an ethical manner,
consistent with the expectations of customers, consumers and other
stakeholders, is essential for the protection of the reputation of
Unilever and its brands.
A key element of our ethical
approach to business is to reduce inequality and promote fairness.
Our activities touch the lives of millions of people and it is our
responsibility to protect their rights and help them live
well.
The safety of our employees and the
people and communities we work with is critical. Failure to meet
these high standards could result in damage to Unilever's corporate
reputation and business results.
Level of risk: No change
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Our Code of Business Principles and
our Code Policies govern the behaviour of our employees,
suppliers, distributors and other third parties who work with us.
Our processes for identifying and resolving breaches of our Code of
Business Principles and our Code Policies are clearly defined and
regularly communicated throughout Unilever. Data relating to such
breaches is reviewed by the ULE and by relevant Board Committees
and helps to determine the allocation of resources for future
policy development, process improvement, training and awareness
initiatives.
Our Responsible Partner Policy helps
us to improve the lives of the people in our supply chains by
ensuring human rights are protected and makes a healthy and safe
workplace a mandatory requirement for our business partners. We
have detailed safety standards and monitor safety incidents at the
highest level.
Through our Brands with Purpose
agenda, a number of our brands are taking action on societal
issues such as fairness and equality.
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LEGAL AND REGULATORY
Compliance with laws and regulations
is an essential part of Unilever's business
operations.
Unilever is subject to national and
regional laws and regulations in such diverse areas
as regulations relating to environmental compliance (e.g.
greenwashing), product safety, product claims, trademarks,
copyright, patents, competition, health and safety, data privacy,
corporate governance, listing and disclosure, employment and
taxes.
Failure to comply with laws and
regulations could expose Unilever to civil and/or criminal actions
leading to damages, fines and criminal sanctions against us and/or
our employees with possible consequences for our corporate
reputation.
Changes to laws and regulations
could have a material impact on the cost of
doing business.
Level of risk: No change
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Unilever is committed to complying
with the laws and regulations of the countries in which we operate.
In specialist areas the relevant teams at global, regional or local
levels are responsible for setting detailed standards and ensuring
that all employees are aware of and comply with regulations and
laws specific and relevant to their roles.
Our legal and regulatory specialists
are heavily involved in monitoring and reviewing our practices to
provide reasonable assurance that we remain aware of and
in line with all relevant laws and legal
obligations.
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RELATED PARTY TRANSACTIONS
JOINT VENTURES
The following related party balances
existed with joint venture businesses at 31 December
2023:
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Related party balances
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€
million
2023
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€
million
2022
|
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Sales to joint ventures
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1144
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1,158
|
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Purchases from joint
ventures
|
134
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134
|
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Receivables from joint
ventures
|
99
|
78
|
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Payables to joint
ventures
|
111
|
33
|
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Loans to joint ventures
|
219
|
226
|
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Royalties and service
fees
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19
|
22
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Significant
joint ventures are Unilever FIMA LDA in Portugal, Binzagr Unilever
Distribution in the Middle East, the Pepsi Lipton Tea Partnership
in the US and Pepsi Lipton International Ltd for the rest of the
world.
ASSOCIATES
There are
no trading balances due to or from associates.
Langholm
Capital II was launched in 2009 and liquidated during 2023.
Unilever had invested €65 million in Langholm II, and all
outstanding balances and commitments have been closed.
DIRECTORS' RESPONSIBILITY
STATEMENT
Each of the Directors confirms that,
to the best of his or her knowledge:
· The
Unilever Annual Report and Accounts 2023, taken as a whole, is
fair, balanced and understandable, and provides the information
necessary for shareholders to assess the Company's position and
performance, business model and strategy;
· The
financial statements which have been prepared in accordance with
international financial reporting standards (IFRS) as issued by the
International Accounting Standards Board (IASB), and UK-adopted
international accounting standards give a true and fair view of the
assets, liabilities, financial position and profit or loss of the
Company 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 PLC and the
undertakings included in the consolidation taken as a whole,
together with a description of the principal risks and
uncertainties that they face.
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Name
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Function
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Ian Meakins
Andrea Jung
Hein Schumacher
Fernando Fernandez
Judith Hartmann
Adrian Hennah
Susan Kilsby
Ruby Lu
Strive Masiyiwa
Youngme Moon
Nelson Peltz
Nils Andersen
Judith McKenna
|
Chairman and Non-Executive
Director
Vice-Chairman / Senior Independent
Director
Chief Executive Officer
Chief Financial Officer
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
|
Cautionary Statement
This announcement may contain
forward-looking statements, including 'forward-looking statements'
within the meaning of the United States Private Securities
Litigation Reform Act of 1995, concerning the financial condition,
results of operations and businesses of the Unilever Group (the
'Group'). All statements other than statements of historical fact
are, or may deemed to be, forward-looking statements. Words such as
'will', 'aim', 'expects', 'anticipates', 'intends', 'looks',
'believes', 'vision', 'ambition', 'target', 'goal', 'plan',
'potential', 'work towards', 'may', 'milestone', 'objectives',
'outlook', 'probably', 'project', 'risk', 'seek', 'continue',
'projected', 'estimate', 'achieve' or the negative of these terms,
and other similar expressions of future performance or results and
their negatives, are intended to identify such forward-looking
statements. Forward-looking statements also include, but are not
limited to, statements and information regarding the Group's
emissions reduction targets and other climate change related
matters (including actions, potential impacts and risks associated
therewith). Forward-looking statements can be made in writing but
also may be made verbally by directors, officers and employees of
the Group (including during management presentations) in connection
with this announcement. These forward-looking statements are based
upon current expectations and assumptions regarding anticipated
developments and other factors affecting the Group. They are not
historical facts, nor are they guarantees of future performance or
outcomes. All forward-looking statements contained in this
announcement are expressly qualified in their entirety by the
cautionary statements contained or referred to in this section.
Readers should not place undue reliance on forward-looking
statements.
Because these forward-looking
statements involve known and unknown risks and uncertainties, a
number of which may be beyond the Group's control, 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 from those expressed in the forward-looking statements
included in this announcement 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 Unilever's 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. Also see "Our Principal Risks" on pages 70-78 for
additional risks and further discussion.
The forward-looking statements are
based on our beliefs, assumptions and expectations of our future
performance, taking into account all information currently
available to us. Forward-looking statements are not predictions of
future events. These beliefs, assumptions, and expectations can
change as a result of many possible events or factors, not all of
which are known to us. If a change occurs, our business,
financial condition, liquidity and results of operations may
vary materially from those expressed in our forward-looking
statements.
The forward-looking statements speak
only as of the date of this announcement. Except as required by any
applicable law or regulation, the Group expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in the Group's expectations with regard thereto
or any change in events, conditions or circumstances on which any
such statement is based. New risks and uncertainties arise over
time, and it is not possible for us to predict those events or how
they may affect us. In addition, we cannot assess the impact of
each factor on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking
statements.
14 March 2024