Unilever PLC 6-K, filed Mar 9, 2022
Unilever PLC (UL)
6-K
2022-03-09
For: 2022-03-09
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Added on
April 09, 2026
About this 6-K
Unilever PLC filed this 6-K on March 9, 2022.
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the
month of March, 2022
UNILEVER
PLC
(Translation
of registrant's name into English)
UNILEVER HOUSE, BLACKFRIARS, LONDON, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in
paper
as
permitted by Regulation S-T Rule 101(b)(1):_____
Indicate
by check mark if the registrant is submitting the Form 6-K in
paper
as
permitted by Regulation S-T Rule 101(b)(7):_____
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No .X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82- _______
Exhibit
99 attached hereto is incorporated herein by reference.
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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UNILEVER
PLC
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/S/ R SOTAMAA
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BY R SOTAMAA
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CHIEF LEGAL OFFICER AND GROUP SECRETARY
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Date:
09 March, 2022
EXHIBIT INDEX
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EXHIBIT
NUMBER
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EXHIBIT
DESCRIPTION
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99
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Notice
to London Stock Exchange dated 09 March 2022
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Annual
Financial Report
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Exhibit
99
Unilever PLC ("Unilever")
2021 Annual Financial Report Announcement
Unilever announces that the following documents are available on
its website www.unilever.com/ara:
Unilever Annual Report and Accounts 2021
Unilever Annual Report on Form 20-F 2021
A copy of each of the documents listed has been submitted to the
National Storage Mechanism and will shortly be available for
inspection at:
https://data.fca.org.uk/#/nsm/nationalstoragemechanism. A copy of
the Unilever Annual Report on Form 20-F 2021 has also been filed
with the U.S. Securities and Exchange Commission and is available
at: www.sec.gov/edgar.shtml.
Attached to this announcement is the additional information for the
purposes of compliance with the Disclosure and Transparency Rules
including principal risk factors, details of related party issues
and a responsibility statement.
The unaudited 2021 Full Year and Fourth Quarter Results for the
year ended 31 December 2021, which were announced on 10 February
2022, were prepared in accordance with IAS 34.
ADDITIONAL INFORMATION
PRINCIPAL RISK FACTORS
These are the risks that we see as most material to Unilever's
business and performance at this time. There may be other risks
that could emerge in the future.
If the circumstances in these risks occur, 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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DESCRIPTION OF RISK
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BRAND 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 and getting these new products to market
with speed.
The
Covid-19 pandemic has driven significant changes in consumer habits
and demand (for example, an increase in hygiene-related products
and a reduction in out-of-home food products), which is requiring a
continuing and rapid evolution of our brands to ensure we remain
competitive.
Level
of risk: No change
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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
Divisions, 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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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 could impact 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.
Market risks associated with the energy transition and rising
energy prices could disrupt our operations and increase
costs.
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: No change
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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.
Not
only is there 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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CUSTOMER
Successful
customer relationships 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.
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.
The
Covid-19 pandemic has driven a rapid increase in online shopping,
which means we need to accelerate development of eCommerce
capabilities to remain competitive.
Level
of risk: No change
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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.
The
wellbeing of our employees is vital to the success of our business.
Covid-19 continues to have a significant impact on their wellbeing,
therefore helping our employees manage the impact of Covid-19 on
their lives and their ability to work effectively requires
continued focus.
Level
of risk: No change
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SUPPLY CHAIN
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 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.
The
Covid-19 pandemic is an adverse event that has challenged and
continues to challenge the continuity of our supply chain.
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 has presented challenges
and requires continued focus and flexibility.
The
cost of our products can be significantly affected by the cost of
the underlying commodities and materials from which they are made.
Fluctuations in these costs cannot always be passed on to the
consumer through pricing.
Level
of risk: Increase
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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 other 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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SYSTEMS AND INFORMATION
Unilever's
operations are increasingly dependent on IT systems and the
management of information.
The
cyber-attack threat of unauthorised access and misuse of sensitive
information or disruption to operations continues to increase. 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.
Given
the changes in the ways of working of all our employees as well as
our customers and suppliers as a result of Covid-19, there has been
an increased reliance on certain elements of our IT infrastructure.
We are particularly reliant on third-party experts in this space
and thus the impact of Covid-19 on their operations also poses a
risk for us.
Level
of risk: Increase
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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.
Unilever
is continually engaged in major change projects, including
acquisitions, disposals and organisational transformation, to drive
continuous improvement in our business and to 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: Increase
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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.
Government
actions such as 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 expose Unilever to
related economic and political volatility.
Level
of risk: Increase
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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 with the OECD's Base Erosion and Profit Shifting project,
and the Digitalising Economy Project, and further potential tax
reform in the European Union and the US.
Level
of risk: No change
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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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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 product safety, product claims, trademarks,
copyright, patents, competition, employee health and safety, data
privacy, the environment, 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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RELATED PARTY TRANSACTIONS
The following related party balances existed with associate or
joint venture businesses at 31 December:
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Related party balances
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€ million
2021
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€ million
2020
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Sales
to joint ventures
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1,060
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1,004
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Purchases
from joint ventures
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127
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118
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Receivables
from joint ventures
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71
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80
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Payables
to joint ventures
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36
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43
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Loans
to joint ventures
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241
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255
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Royalties
and service fees
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20
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21
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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. Unilever has invested
€65 million in Langholm II, with an outstanding commitment at
the end of 2021 of €1 million (2020: €2 million).
During 2021, Unilever received €32 million (2020: €nil)
from its investment in Langholm Capital II.
DIRECTORS' RESPONSIBILITY STATEMENT
Each of the Directors confirms that, to the best of his or her
knowledge:
· The
Unilever Annual Report and Accounts 2021, 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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Nils
Andersen
Andrea
Jung
Alan
Jope
Graeme
Pitkethly
Laura
Cha
Judith
Hartmann
Adrian
Hennah
Susan
Kilsby
Ruby
Lu
Strive
Masiyiwa
Youngme
Moon
John
Rishton
Feike
Sijbesma
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Chairman
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
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Safe Harbour
This announcement may contain forward-looking statements, including
'forward-looking statements' within the meaning of the United
States Private Securities Litigation Reform Act of 1995. Words such
as 'will', 'aim', 'expects', 'anticipates', 'intends', 'looks',
'believes', 'vision', or the negative of these terms and other
similar expressions of future performance or results, and their
negatives, are intended to identify such forward-looking
statements. Forward-looking statements also include, but are not
limited to, statements and information regarding the Unilever
Group's (the 'Group') emissions reduction targets and other climate
change related matters (including actions, potential impacts and
risks associated therewith). 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.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause actual
results to differ materially from those expressed or implied by
these forward-looking statements. Among other risks and
uncertainties, the material or principal factors which could cause
actual results to differ materially are: Unilever's global brands
not meeting consumer preferences; Unilever's ability to innovate
and remain competitive; Unilever's investment choices in its
portfolio management; the effect of climate change on Unilever's
business; Unilever's ability to find sustainable solutions to its
plastic packaging; significant changes or deterioration in customer
relationships; the recruitment and retention of talented employees;
disruptions in our supply chain and distribution; increases or
volatility in the cost of raw materials and commodities; the
production of safe and high quality products; secure and reliable
IT infrastructure; execution of acquisitions, divestitures and
business transformation projects; economic, social and political
risks and natural disasters; financial risks; failure to meet high
and ethical standards; and managing regulatory, tax and legal
matters. A number of these risks have increased as a result of the
current Covid-19 pandemic.
These forward-looking statements speak only as of the date of this
announcement. Except as required by any applicable law or
regulation, the Group expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in the Group's expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based.
9 March 2022.