UNILEVER CARIBBEAN LIMITED - Home | Unilever … · Our Unilever Sustainable ... the astute leadership of the ... Limited . Unilever Caribbean Limited . Unilever Caribbean Limited

UNILEVER CARIBBEAN LIMITEDANNUAL REPORT

AND ACCOUNTS 2014

MAKINGSUSTAINABLE

LIVINGCOMMONPLACE

UNILEVER CARIBBEAN

LIMITED AN

NU

AL REPORT AND ACCOU

NTS 2014

Contents

Financial Highlights 1Our Compass Strategy 2Unilever Sustainable Living Plan 3Chairman’s Statement 4Managing Director’s Review 6Management Discussion and Analysis 8Directors’ Report 10

Winning with our brands 12Winning in the marketplace 16Winning with our people 18Winning with our communities 19

Our Principal Risks 22

Independent Auditor’s Report 24Statement of Financial Position 25Statement of Income 26Statement of Comprehensive Income 27Statement of Changes in Equity 28Statement of Cash Flows 29Notes to the Financial Statements 30Notice of Annual Meeting 55Management Proxy Circular 56Proxy Form 57

This annual report is also available on www.unilevercaribbean.com

OUR PURPOSETO MAKE SUSTAINABLE LIVING COMMONPLACEUnilever has a simple purpose – to make sustainable living commonplace. We see it as the best, long-term way for our business to grow.Our clear Purpose helps us to remain distinct in the eyes of consumers, retailers and suppliers. It also means we can set an ambitious Vision – to double the size of the business whilst reducing our environmental footprint and increasing our positive social impact.

To meet our growth ambition, we invest in people whose talent will help us win through our brands and innovation, unrivalled execution in the marketplace and a relentless focus on continuous improvement for greater efficiency.

1Unilever Caribbean Limited Annual Report 2014

1.5%2013: 2.2%

TT$2.522013: TT$2.69

14.0%2013: 14.7%

(5.3)%2013: 19.6%

TT$1.452013: TT$1.63

TT$0.322013: TT$0.32

17.5%2013: 23.3%

33.0%2013: 36.6%

TURNOVER(INCREASE %)

EARNINGS PER SHAREOPERATING PROFIT AS % OF TURNOVER

PROFIT BEFORE TAX (DECREASE %)

FINAL DIVIDEND PER SHAREINTERIM DIVIDEND TOTAL SHAREHOLDERS’ RETURNS

RETURN ON CAPITAL EMPLOYED

• Turnover TT$131 million• Underlying Sales

Growth 1.8%• Underlying Volume

Growth 6.2%

• Turnover TT$230 million

• Underlying Sales Growth 3%

• Underlying Volume Growth 3.5%

• Turnover TT$161 million• Underlying Sales (3.8%)• Underlying Volume

Growth (0.6%)

• Turnover TT$54 million• Underlying Sales

Growth 11.7%• Underlying Volume

Growth 34%

OUR CATEGORIES

PERSONAL CARE

HOME CARE

FOODS

REFRESHMENT

Financial Highlights

2 Unilever Caribbean Limited Annual Report 2014

REDUCEENVIRONMENTAL

IMPACT

DOUBLE THEBUSINESS

POSITIVE SOCIAL IMPACT

We call our business strategy document ‘the Compass’, since it sets out a constant path for Unilever for the long term. First developed in 2009, it was sharpened in 2012 but its core elements remained the same. The Compass sets out our ambitious Vision and Purpose, and defines four ‘Winning with’ pillars within the business that will help us achieve both. The eagle-eyed reader will have spotted that our statement of Purpose is also the title for our Annual Report and Accounts this year. We report on progress under each of the four ‘Winning with’ pillars on pages 12 to 20.The Compass gives life to our determination to build a sustainable business for the long term and to find new ways to operate that do not just take from society and the environment. This is captured in the Unilever Sustainable Living Plan (USLP) which is described in more detail below.Our Compass ‘Winning with’ pillars: - Winning with brands and innovation - Winning in the market place - Winning through continuous improvement - Winning with people

our COMPASS stRATEGY

We will continually work to improve the taste and nutritional quality of all our products. By 2020 we will double 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.

Halve the greenhouse gas impact of our products across the life cycle by 2020.

Halve the water associated with the consumer use of our products by 2020.

By 2020 we will help more than a billion people to improve their hygiene habits and we will bring safe drinking water to 500 million people. This will help reduce the incidence of life-threatening diseases like diarrhea.

By 2020 we will help more than a billion people take action to improve their health and well-being.

By 2020 our goal is to halve the environmental footprint of the making and use of our products as we grow our business.

1 HEALTH AND HYGIENE

2 NUTRITION 3 GREENHOUSE GASES

4 WATER

IMPROVING HEALTH AND WELL-BEING

REDUCING ENVIRONMENTAL IMPACT


SUSTAINABLE LIVING

INNOVATION + MARKETING INVESTMENT

OUR BRANDS

OUR PEOPLE

OUR OPERATIONS

PROFITABLEVOLUME GROWTH

COST LEVERAGE

+ EFFICIENCY

Halve the waste associated with the disposal of our products by 2020.

By 2020 we will source 100% of our agriculture raw materials sustainably.

By 2020 we will engage with at least 500,000 smallholder farmers and 75,000 small-scale distributors in our supply network.

By 2020 we will enhance the livelihoods of hundreds of thousands of people as we grow our business.

UNILEVER Sustainable Living PLAN

5 WASTE 6 SUSTAINABLE SOURCING

7 BETTER LIVELIHOODS

ENHANCING LIVELIHOODS

Our Unilever Sustainable Living Plan (USLP) sets out to decouple our growth from our environmental impact, while at the same time increasing our positive social impact. Our USLP has three big goals that by 2020 will enable us to: • Help more than a billion people to improve their health and

well-being. • Halve the environmental footprint of our products. • Source 100% of our agricultural raw materials sustainably and

enhance the livelihoods of people across our value chain. Underpinning these goals are seven commitments supported by around 50 targets spanning our social, environmental and economic performance across the value chain – from the sourcing of raw materials all the way through to the use of our products in the home. In the second year of our USLP, we made steady progress across our commitments. Our USLP is ambitious and we have much more to do. We continue to strive to deliver our stretching goals.


ONCE AGAIN THIS YEAR THE UNILEVER TEAM HAS BEEN CHALLENGED BY DIFFICULT TRADING CONDITIONS AND CHANGING CIRCUMSTANCES, AND HAS RESPONDED MAGNIFICENTLY.

OVERVIEW

The year 2014 was generally a difficult one for the economies of the Caribbean, with several of the territories struggling with still low tourism arrivals, and high levels of national debt. In Trinidad and Tobago growth was dampened by decreasing oil and gas prices, as well as foreign exchange scarcity, in the second half of the year. Against this background, however, Unilever Caribbean was able to increase Turnover by 1.5% over the previous year, to $588 million. Maintaining margins proved a challenge, given rising input and payroll costs, and increasingly price conscious consumers. This, combined with increased IT project expenditure and one-off gains of TT$ 2.5 million in the previous period, resulted in a decrease in Profit after Tax of 6.2% below last year’s exceptional performance, at $66.1 million.At year end, the Company’s Balance Sheet remained strong, despite increased Inventories and Trade Receivables. This temporary situation resulted in a last quarter build-up of goods in stock and in the trade, in anticipation of a scheduled site closure in early January to effect the commissioning of a new companywide IT operating platform. Consequently our expectations for the first quarter 2015 remain modest.

RETURNS TO SHAREHOLDERS

The Board of Directors has declared a final dividend of $1.45 per share, bringing the Total Dividend for the year to $1.77 per share, (2013: $1.95 per share). This represents a Dividend Payout of 70.2% of the year’s

Earnings, which is within the Company’s target range of 60 – 80%. With the share price increasing by 15% over the year from $56.20 to $64.50, Total Shareholder Return remained high at 17.5%.

OUTLOOK

In 2014 Unilever Caribbean embarked on a challenging project involving a new companywide IT operating platform, aimed at linking all the company’s operations into a modern, efficient single system, in conformity with Unilever best practice worldwide. This new system, scheduled to go live early in 2015, will provide substantial improvements in efficiency, as well as provide cost savings.Later in the year, the Company will begin a period of increased capital investment, especially in our manufacturing facilities, which will generate improvements in efficiency, safety and product flexibility.

BOARD CHANGES

During the year 2014 there were several changes at Board level. Of the Executive Directors , Mr. Ricardo Williams left the Company to further his career elsewhere, while two of the Non-Executive Directors, Unilever representatives Mr. Melvin Hernandez and Mr. Livio Vicco both resigned, the former leaving Unilever and the latter assigned elsewhere. Unilever subsequently nominated Mr. Emerson Inacio, Finance Director of Unilever Caribbean as a replacement for Mr. Vicco, and he was appointed to the Unilever Caribbean board in August.

Chairman’s statement

Gary N. VossChairman


In the coming year, I myself will attain the normal Board retirement age of 70, and in this regard an announcement will be made in due course.

ACKNOWLEDGEMENT

Once again this year the Unilever team has been challenged by difficult trading conditions and changing circumstances, and has responded magnificently. Under the astute leadership of the Managing Director, Mr. Tim Kleinebenne, the Company has weathered the storms, and remains on a steady path of profitable growth. I would like to express my sincere thanks to all at Unilever Caribbean for their fine efforts, and especially to my fellow Board members for their continued guidance and support.

Gary N. VossChairman

BOARD OF DIRECTORS

1

4 5 6

2 3

1 Gary N. Voss Non-Executive Chairman2 Tim Kleinebenne Managing Director3 Seamus Clarke Non-Executive Director4 Roxane E. de Freitas Executive Director5 Jacqueline Quamina Non-Executive Director6 Emerson Inacio Executive Director

Gary N. Voss ChairmanNationality: Trinidadian. B.Sc. (Hons.), Chemical Engineering. Mr. Voss has been with Unilever since 1982, first as Technical Director of Lever Brothers West Indies Ltd. then from 1987 as Chairman and Managing Director, positions he held until his retirement at the end of 2001, retaining the position of non-executive Chairman.

Tim KleinebenneManaging DirectorNationality: GermanBachelor’s Degree in Business Economics from the University of Hamburg. Joined Unilever in 1992 as a Marketing/Sales Trainee. Over twenty years of experience with Unilever in the functions of Marketing, Customer Service and Sales.

Seamus Clarke Non-Executive DirectorChairman Audit CommitteeNationality: Trinidadian Chartered Accountant (FCCA, CA, BSc) in private practice in areas of Financial and Business Consulting.

Roxane E. De Freitas Brand Building Director, Unilever Greater CaribbeanNationality: TrinidadianB.A., Joined Unilever in 1985 and held various positions in the areas of Marketing and Customer Development. In 2007, she was promoted to the position of Managing Director and in August 2012, she was appointed the Regional Brand Building Director.

Jacqueline QuaminaNon-Executive DirectorNationality: Trinidadian Attorney at Law (LLB, MA, MBA). Experienced in areas of Banking, Finance and Corporate Law in the Caribbean.

Emerson Inacio Finance Director, Greater CaribbeanNationality: BrazilianBSc (Eng), MSc (Finance), Post-Master Programme in Economics and IFRS Certification from Deloitte.Joined Unilever in 1994 and has held several positions, including assignments to Unilever Head Office.

Mark BeepathCompany SecretaryNationality: TrinidadianB.Sc. Economics, ACCA. Joined Unilever Caribbean in 2002 and has held various finance roles in the Trinidad operation. 2009 moved to Unilever de Puerto Rico with responsibility for the three Caribbean operations. 2012 moved to Unilever USA based in New Jersey.

Company SecretaryMark Beepath


The economic situation in the Southern Caribbean Markets remained challenging throughout the year 2014, due to very limited economic growth, reduced government spending and high unemployment rates in some of our key markets. In addition to this macro-economic development, we recognized increased competitive activities, especially in the increasingly important price-entry segment in some of our key categories.

SOLID UNDERLYING BUSINESS PERFORMANCEIn the face of these multiple challenges, Unilever Caribbean Limited delivered a record TT$588 million in turnover, an increase of 1.5% over 2013. Gross profit was TT$233 million, a marginal decline of 0.3 % due to increased material costs and increased promotional spent. Operating profit declined 2.9% from increases in Selling & Distribution cost and one off cost related to the implementation of a

new companywide operating platform which will go live in early 2015.Throughout 2014 we continued to invest behind all of our core brands, e.g. celebrating the 50 Years of Breeze as well as re-vitalizing Blueband and Golden Ray through the “Now Yuh Cooking” Campaign. Thanks to this investment the equity of our brands remains outstandingly strong and we continue to enjoy superior market shares in most of our categories in our home-market.Due to the economic challenges, as well as changes in consumer demand, our growth in Trinidad and Tobago has basically been flat in 2014, 0.19%. However, because of changes we made in our own organisational set-up and distributor network, we experienced a very satisfactory growth in our key export markets of 3.4%, especially driven by Suriname, Barbados and Guyana. Our intercompany sales to Jamaica continued to decline by 1.4%, but we believe that we will be able to drive a turnaround in 2015 in this very important market. Overall, we remain confident about the opportunities we have in the export markets and will continue to focus our resources accordingly.

BUILDING A BRIGHTER FUTURE FOR UNILEVER CARIBBEAN LIMITEDIn line with our Compass Strategy and the Unilever Sustainable Living Plan, we sharpened our plans to build a brighter future for Unilever Caribbean Limited, leading to some very satisfactory results.For the 10th year in a row, Unilever Caribbean Limited was able to grow turnover – in 2014 by 1.5% or TT $8.4 million. As in the previous period, this growth was again driven by very healthy volume increases of 3.2%, a clear indicator that we remain highly competitive in the marketplace. So while our Operational Profit declined by 2.9%, we are proud to report a

very satisfactory Total Shareholder Return of 17.5% in the year.

WINNING WITH BRANDS & INNOVATIONSA highlight in 2014 was the successful launch of Breeze liquid, an innovation which excited our consumers as well as our customers. Full distribution was achieved within days and so far business results have been exceeding our expectations. With Breeze liquid now in our portfolio, we remain very confident about our future growth perspectives in the most important detergent category.

WINNING IN THE MARKETPLACEWe continued to deepen our relationships with our Key Account customers and were able to generate satisfactory growth with most of them, based on tailored business plans. Since more than 60% of our business is handled through distributors, we put extra emphasis on building related capabilities internally to help us drive the sales fundamentals in our key markets. Growing in 3 out of our 4 top export markets confirms the success of our increased efforts.

WINNING THROUGH CONTINUOUS IMPROVEMENTSIn 2014 we started to re-invest material funds into an upgrade of our factories. Immediate benefits were recognized in the areas of SHE & Q (Safety, Health, Environment and Quality). Looking forward we expect to see further significant investments into our factories in the near future. A major initiative we started in 2014 was Project Cordillera, the transitioning of our supply chain operations to a state-of the-art regional IT platform. Significant funds of TT$12.5 million will be invested over a period of 5 years, providing us with new capabilities from which we expect to get additional competitive advantages.

Tim KleinebenneManaging Director

UNILEVER CARIBBEAN LIMITED CONTINUED TO DELIVER SOLID GROWTH OF 1.5% IN AN INCREASINGLY COMPETITIVE ENVIRONMENT.

MANAGING DIRECTOR’s review


UNILEVER CARIBBEAN EXECUTIVE LEADERSHIP

1 Tim Kleinebenne Managing Director

2 Zaida Allie Inbound, Sales & Operational Planning Manager

3 Glen Rogers Customer Marketing Manager

WINNING WITH OUR PEOPLE Recruiting the best talent in Trinidad & Tobago remains a key priority for UCL. We have continued with the Unilever internship program and remain confident that this will help us to identify and build the future leaders of our organization. We have also further strengthened our UCL leadership team with seasoned Unilever professionals as well as external talents. Despite the tremendous workload experienced, the UCL team remained focused and highly engaged throughout the year 2014. Harmonious and result oriented teamwork, as well as the constant desire to learn and progress further remains the strong foundation of UCL’s success in the marketplace.

KEY PROJECTSIn the first quarter of 2014 Unilever Caribbean Limited embarked on the start of a year long project to upgrade the current Enterprise Resource Planning (ERP) IT system. This project internally called “Cordillera” is the most extensive software upgrade the company has ever undertaken. Once completed the new system will bring Unilever Caribbean up to date with the latest systems being used across Unilever globally, and drive benefits in planning and reporting, forecasting, inventory management and reducing complexity across the organization.The first roll out of Cordillera occurred in 2011 in North America and has been implemented in ten countries since that time in the Americas. The final phase of this implementation will occur in Q1 2015 with the implementation in twelve countries across Caribbean and South America of which Unilever Caribbean is included. This project will include significant resources from Unilever globally and in Trinidad, dedicated to the preparation of the organisation for this significant change.

SERVING OUR ENVIRONMENT AND COMMUNITIESUnilever’s vision is to double the size of the business while reducing our environmental footprint and increasing our positive social impact. The Unilever Sustainable

1

7

4 5 6

2 3

Living Plan is therefore a key part of our vision and complements our Compass strategy. A major achievement in 2014 was to report “Zero Waste to Landfill”. For the first time in our history we were able to confirm that starting into 2015, our intention is to fully recycle all non hazardous waste which is being generated by our plants, therefore successfully reducing our impact on the environment.In 2014 we continued to increase our positive social impact. Once again we strengthened our activities around Global Handwashing Day, helping children to avoid illness by teaching them the important basics of hygiene. We executed the Global Handwashing Day in 500 schools in our territory, impacting around 1,500 children. We repeated the Becel Heart Health Walk in Curaçao encouraging around 3,000 consumers to engage with a healthier life style. We continued with other activities such as our sponsorship of the Mt D’Or Primary School, Beach clean-ups, product donations and other drives to support the community. In summary, 2014 must be

considered another good year for Unilever Caribbean Limited. The share price performed well again in 2014 and has appreciated by 14.8% over the 12 month period, ending at TT$64.50. Additionally, your dividends and earnings per share have remained strong and we are proud of having these results delivered for you. I feel blessed to be allowed to work with the wonderful people who make up Unilever Caribbean Limited, all the managers and employees who worked so extremely hard, the Board, who guided us well and all the regional Unilever colleagues who helped us win in the marketplace. The support we received was tremendous and I know that on this basis, we will be able to manage the challenges ahead in 2015.

Tim KleinebenneManaging Director

4 Ronnie Sankar GTM Logistics, Distribution & Customer Service Manager

5 Paul Wiggans Supply Leader

6 Mark Beepath Finance Manager

7 Shelly-Ann Simon-McKell Brand Building Manager, Hair and Skin Cleansing


Turnover by Year($m)

20112010 2012 2013 2014

495 527 567 579 588

Turnover by Type($m)

2013 2014

356 358

Locally Manufactured GoodsImported Goods

230223

Turnover by Category(%)

Refreshment 9%

PersonalCare23%

Foods 28%

Home Care40%

OVERVIEW:Unilever Caribbean Ltd. owns and operates a manufacturing and distribution facility located in Trinidad and Tobago. At this facility in Champs Fleurs the Company engages in the manufacturing of Powdered Detergents, Liquid Household Cleaners, Spreads and Margarines. A number of imports in personal care and foods products from other Unilever sites across the globe are also distributed from this site. In addition to managing the local Trinidad and Tobago market, Unilever Caribbean Limited also holds responsibility for a number of export markets in the Southern Caribbean. Sales outside of the Trinidad market accounted for 38% (2013: 38%) of total Unilever Caribbean Limited sales.

FINANCIAL REVIEW HIGHLIGHTS• Turnover grew by 1.5% from

$579.3m to $587.8m.• Gross Margin declined by 68bps

moving from 40.3% to 39.7%• Operating Profit decreased 2.9%

from $85.5m in 2013 to $82.9m in 2014.

• Profit after Tax fell by 6.2%,from $70.5m to $66.1m.

• Total Earnings Per Share (EPS) was $2.52, 6.2% below 2013.

• Cash at bank closed at $24.2m

ECONOMIES AND MARKETS Regional economies began to show signs of recovery in 2014 with fastest GDP growth rates estimated to be in the mainly tourism dependant economies. Guyana, Suriname and Eastern Caribbean States showed good improvement in growth rates ranging from 2% to 3% in the year. Jamaica and Barbados however continued to face headwinds with moderate improvement vs 2013. Trinidad and Tobago economy slowed considerably in the year with depressed oil prices and reduced petroleum output significantly impacting regional indicators. Key Domestic Indicators for Trinidad

Management Discussion & Analysis

remained stable, with unemployment still the lowest in the region, while retail prices and interest rates have remained relatively flat to 2013.

OPERATING PROFITSOperating profit in the year declined 2.9%, driven by underlying cost pressure impacting Gross Margins. This decline came mainly from cost of material increases in the first half of the year particularly impacting Home Care categories. One off implementation cost related to the company wide ERP system that will go live in Q1 2015 also had a negative impact on operating profits.

BALANCE SHEETUnilever Caribbean’s healthy financial position remained stable in 2014 with continued strengthening of its balance sheet. Total assets increased by 11% to $394m while there were no financing commitments to close the year and total cash in hand of $24m. Trade and Other Receivables as well as Inventories saw noted increases. This resulted from a planned increase to ensure adequate supply of inventory in hand and at customers in preparation for the cut over to the new ERP system in Q1 2015.

PERFORMANCE OF CATEGORIESHome CareThe Home Care business consists of Powder Detergents, Dishwashing Liquids as well as Fabric Conditioners. Turnover grew by 3.0% over prior year buoyed by strong performance in Laundry and Household Care categories. During the year the new Breeze Liquid detergent launched to strong customer and consumer response, extending the reach of one of our flagship brands.

Personal CareThe Personal Care category comprises Hair Care, Deodorants,

Oral Care, Skin Cleansing, Hand & Body Care. Turnover in this category grew by 1.8% with consistent volume gains noted in the year. Leading Brands drove much of the growth in this category built on continuing growth in our biggest Personal Care brand, Dove, and


Profit before tax($m)

20112010 2012 2013

70 78 7893

2014

88

Turnover by Market(%)

Export38%

Domestic62%

strong performance from our Deodorant brands. FoodsThe Foods portfolio of the Company comprises Spreads and Cooking Aids, Dressings and Savoury. This category faced continued challenges in the year declining 3.8%, excluding the impact from the disposed brands of Ragu and Bertolli the category was down 3%. Sales were impacted mainly from the declining consumption trends across Spreads and Non Core businesses.

RefreshmentsThe refreshment category includes Teas and Ice Cream brands. Overall performance was again strong in the year registering growth of 11.7%, led by gains in Lipton and Ben & Jerry’s brands. Ice Cream turnover registered double digit growth driven by increased distribution and marketing activities.

CUSTOMER MANAGEMENTGiven the signals of a tough retail environment due to the economics of the day, it became even more critical to improve execution at the Point Of Sale. Point of Sale excellence was driven through improved visibility of our key brands, delivering on increased product availability and driving a strong promotional agenda, which guided the consumer to make the choice of Unilever brands versus the competition. Additionally, the importance of delivering our innovation successfully by reducing the time it takes to build up distribution during the launch phase, was achieved by having Breeze Liquid detergent available across 90% of retail within 1 week.

SUPPLY CHAINOne of our biggest successes in the manufacturing site was the achievement of zero non-hazardous waste to landfill across our factories which contributes to Unilever Sustainable Living plan (USLP). In our drive for continuous improvement, we also invested significantly in our Foods operations. Higher efficiencies were realized through improved equipment

reliability, with strong people focus and efforts contributing to lower conversion costs and improved gross margins.Our key performance indicators for Customer Service delivery remained strong, with Customer Case Fill on Time for the year at 97.8%. This reflects a high rate of order fulfilment and on-time delivery to our customers. Our On Shelf availability measured for the Modern Trade increased significantly from 88.5% to 91.3%.Strong emphasis was placed on cost savings initiatives throughout the company which supported good investment back into our brands. Sourcing opportunities were aggressively pursued with the realization of new innovations like Breeze Liquid.

HUMAN RESOURCESIn 2014, our HR agenda was focused on the development of key talent to strengthen our leadership pipeline. We increased the number of participants in our Unilever Leadership Internship Program, and are sharpening their skills to prepare them for future leadership roles.We also streamlined our HR projects such as: diversity, health and wellness, career development, compensation and team building activities to ensure we remain a “great place to work”.

IAS 19(REVISED)- EMPLOYEE BENEFITS The Company adopted this revised standard on 1 January 2013.

GROWTH IN SHAREHOLDER VALUEUnilever aims for a virtuous circle of growth to drive shareholder return. Profitable volume growth is driven by investment in innovation and brands. We can leverage this scale to drive cost savings which can drive profitability and further investment in our business. This drives profitable volume growth and the virtuous circle continues. Total Shareholder Return (TSR) is a measure of the total return of a stock to an investor and is an important measure in assessing corporate performance. It combines share price appreciation and

dividends paid expressed as an annualised percentage. In 2014 the TSR ended at a very healthy 17.5%.

SUMMARY AND OUTLOOKRegional economies are projected to grow in the coming year but the pace of recovery continues to be slow. The expected outlook for weakened Oil prices in the long term will also put additional headwinds in the Trinidad economy. Export markets are expected to improve as weaker petroleum prices should curb inflationary pressures while also boosting tourist arrivals as fuel cost decline. Revenue growth is expected to be moderate, driven by a slow Q1 as the new ERP system begins a gradual ramp up of operations to start the year. Driving growth in mature categories is an ongoing challenge, while parallel trade continues to pose a serious threat to the strong growth seen in Personal care categories in recent years. Unilever Caribbean has show a consistent ability to deliver in very volatile market conditions and we remain committed to invest in our brands, systems and people to ensure continued long term profitable growth for the business.


FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2014 $’000Turnover 587,774Profit before Taxation 88,429Taxation (22,286)Profit after Taxation 66,143Other Comprehensive Income (40)

Total Comprehensive Income for the Year 66,103

Dividends paid Final dividend for 2013 42,778 Interim dividend for 2014 8,398Profit retained for the year 14,927Retained earnings brought forward 142,663Retained earnings carried forward 157,590 DIVIDENDSThe Directors have declared dividends of $46,451,583 for the year, amounting to $1.77 per share. The final dividend of $1.45 will be paid on Monday, 22 June 2015 to Shareholders on the Register of Members at the close of business on Friday, 5 June 2015.

CHANGES TO THE BOARDThree directors resigned from the Board in 2014. Mr. Melvin Hernandez resigned on 31 May, Mr. Livio Vicco resigned on 31 July and Mr. Ricardo Williams resigned on 30 September, 2014.

To fill the vacancies created, Mr. Emerson Inacio was appointed on 1 August 2014 to fill the vacancy left by Mr. Vicco, Ms. Enid Blasini was appointed on 12 March 2015 to fill the vacancy left by Mr. Hernandez, and Mr. Pablo Garrido was appointed on 12 March 2015 to fill a casual vacancy on the Board.

RE-ELECTION OF DIRECTORSIn accordance with Section 4.4.1 of the Company Bye-Laws whereby Directors shall retire in rotation, Mr. Seamus Clarke retires at the Eighty Sixth Annual General Meeting, and being eligible, offers himself for re-election.

In accordance with Section 4.3.2 of the Company Bye-Laws whereby directors so appointed shall hold office only until the next following general meeting, the following directors, being eligible, offer themselves for election to the Board: Mr. Emerson Inacio, Ms Enid Blasini and Mr. Pablo Garrido.

AUDITORSThe Auditors, KPMG, retire at the Eighty-sixth Annual General Meeting and being eligible, offer themselves for re-election.

Directors’ Report


DIRECTORS’ AND SUBSTANTIAL INTERESTSDirectors’ Interest Number of shares Number of shares as at 31.03.15 as at 31.12.14Gary N. Voss 3,196 3,196Roxane E. de Freitas 1,000 1,000 Tim Kleinebenne 578 578Seamus Clarke 0 0Jacqueline Quamina 0 0Emerson Inacio 0 0

Substantial InterestIn accordance with the Listing Agreement of the Trinidad and Tobago Stock Exchange, the following are holders of 5% or more shares as at 31 December 2014: Number % of Shares Held of TotalUnilever Overseas Holdings AG 13,123,194 50.01RBC Trust Limited – All accounts 4,280,383 16.31Unit Trust Corporation of Trinidad and Tobago - All accounts 1,468,269 5.59

CAPITAL & MEMBERSHIPGrouping of shares according to size of shareholding as at 31 December 2014.

Size of Number of Size of % of TotalShareholding Shareholders Shareholding Shareholding1 - 10,000 3,227 955,990 3.6410,001 - 100,000 27 600,677 2.29100,001 - 1,000,000 2 241,318 0.92Over 1,000,000 3 24,455,847 93.15

Total 3,259 26,243,832 100.00

On behalf of the Board,

Director Director

NATURAL INFUSIONWITH MACADAMIA OIL

*vs. non-conditioning shampoo **vs. comparable Pureology ® products Pureology ® is a registered trademark of L’Oreal USA Creative, Inc

salon proven to moisturize as well as Pureology ® **

10x more moisture *

NEW


THE NEXT BIG THING FROM SUAVE

Suave Professionals tracks big salon trends and brings affordable options to our consumers. In 2012 we successfully launch the Keratin Infusion range, followed by the Moroccan Infusion launch in 2013. In 2014 we introduced the next big thing from Suave Professionals – Natural Infusion. The range combines two mega salon trends to bring a unique and extremely appealing proposition to our consumer.Introducing Suave Professionals® NATURAL INFUSION - This unique salon-inspired range, infused with extracts of carefully chosen exotic natural ingredients, delivers

Winning with our brands“My stylist told me that natural products from salons are the ultimate way to address different hair needs because they use special natural ingredients while removing specific artificial ingredients. I’d love to see what products like this could do for my hair…”

noticeable benefits for your hair and the line contains no parabens or dyes. Suave Professionals Natural Infusion Macadamia Oil & White Orchid provides 10x more moisture

for weightless, complete hydration and is available in Moisturizing Shampoo & Conditioner and the Moisturizing Light Oil Spray.Suave Professionals® Natural Infusion works as well as the salon brand Pureology®!


NATURAL INFUSIONWITH MACADAMIA OIL

*vs. non-conditioning shampoo **vs. comparable Pureology ® products Pureology ® is a registered trademark of L’Oreal USA Creative, Inc

salon proven to moisturize as well as Pureology ® **

10x more moisture *

NEWTRESEMMÉ KEEPS UP WITH HAIR CARE NEEDS

In April 2014 the TRESemmé 7 Day Keratin Smooth Heat Activated System was launched in Trinidad & Tobago. This range of products promised results not offered by any of the other hair brands already in the market. The new line which uses a non-damaging formula, allows women to achieve frizz-resistant, smooth and straight hair at home.To highlight its unique and appealing benefits, international stylist, and in-house consultant at Unilever, North America - Brandon Pope was brought in to formally launch the product range to the local media. At a gala event held at the Trinidad Hilton & Conference Centre on April 10th, Brandon introduced the new innovation to a packed room of eager and excited hair enthusiasts. A presentation and live demonstration were conducted through which attendees were fortunate to witness the complete hair transformation using the system. In addition to this grand event, hair training workshops were also conducted by Brandon at Unilever’s offices. These were attended by representatives from key Personal Care customers. These sessions provided attendees with valuable insights into the Hair Care category, with particular focus being placed on understanding hair textures and product formats across all of Unilever’s hair brands. The workshops also sought to build the talent and capabilities of these hair care teams, who are now better equipped with the knowledge and expertise to provide shoppers and consumers with better service and more tailored advice to their varied hair care needs.

For the 2nd year TRESemmé was the proud hair product sponsor of the Miss Trinidad & Tobago Universe Pageant. The ‘Believe in Beauty’ organisation which manages this pageant seeks to empower young women across the country by extensively training and coaching them and providing opportunities for them to grow and develop. And this is a value that TRESemmé firmly endorses. Through our partnership we provided not only hair product training, but we also worked with Valene Maharaj, herself a former Miss T&T World representative, to advise and guide the girls on key skills for surviving pageant life.TRESemmé was happy to congratulate our 2014 Miss Trinidad & Tobago winner – Miss Jevon King, and to continue to provide support during her reign.

TRESEMMÉ SUPPORTS THE DEVELOPMENT OF YOUNG WOMEN


Winning WITh our brands

CHALLENGING OUR CONSUMERS TO DO MORE WITH DEGREE IN 2014In 2014, Degree continued promotions under the Do More theme which celebrates people who challenge themselves to go further and to experience new things. Degree’s promise to these active persons is that our patented MotionSense protection won’t let them down.Most executions took place over the Carnival time when people flooded the gyms and the savannah for work out classes to get ready for the biggest show on earth. Degree also sponsored the Hardcore Caribbean event; one of the largest sport challenge events in the country for the second consecutive year.Degree, it won’t let you down!

SCENTSATION NATION CARNIVAL 2014For the second consecutive year, Unilever executed a multi-brand personal care execution at Carnival time – the biggest personal care time of the year! This execution was led by the powerhouse brands: Axe and Tresemmé and also included Dove, Degree and St. Ives. As Carnival is generally an important time for advertising, there were various promotions to capture our consumers’ attention to the promotion’s key brands. There were also Scentsation Nation zones at rest stops of popular Carnival bands. Masqueraders both male and female were able to freshen up using the key brands in preparation for the second half of the day on the road.

In 2014, Dove became the Gold Sponsor of the Scotiabank Women against Breast Cancer 5k, replacing the Degree Brand. This new sponsorship allowed Dove to embrace more of the brand’s essence in Trinidad and Tobago. On 13 September, the day of the walk, Dove reached over 6,000 people with consumer engagement activities.Dove also continued its annual breast cancer month activities in supermarkets with instant redemptions and coupons to reward consumers at the point of sale.

DOVE CARES - SUPPORTING CANCER AWARENESS MONTH


POINT OF SALE

THE YEAR FOR BREEZE LONG ANTICIPATED LAUNCH OF BREEZE LIQUIDSIn 2014, we celebrated the 50th Anniversary of Breeze and in August we saw one of the most anticipated launches in Unilever Caribbean, Breeze Liquid. The liquid detergent was first launched in Trinidad & Tobago, hit the shelves in Barbados one month later and was later made available in all Export markets. The product quickly skyrocketed the Breeze brand into the newly emerging and fast growing liquid detergent sub category and is currently being sold in 3 fragrances; Goodbye Musty, Power Clean and Colour Care.The product continues to be a game changer in the Solution wash category which stirred competitors into defensive action and showed true team work by a committed Unilever team. Early results show that Breeze Liquid continues to grow within our key customers, achieving no. 3 status at our no. 1 retailer in the country.

Through the efforts of an internal cross functional team the product was made available for distribution and visible on shelf to consumers in record time.


Winning in the marketplace

“Now Yuh Cooking” continued its second year of success, now predominantly in social media, showing viewers how to cook delicious meals with Unilever margarinesAll 12 episodes aired solely on our digital platforms of Facebook, You Tube and on our Now Yuh Cooking website and TV, radio and press support were used to bring awareness to the digital platform on Facebook www.facebook.com/nowyuhcooking and to our website www.nowyuhcooking.com. The fan base grew to over 20,000 fans in less than 6 months of airing the first webisode!In their favourite supermarkets, throughout the year, consumers were happy to receive free recipe cards coupled with pricing specials on margarines at key cooking and baking seasons. In-store promoters also encouraged consumers to choose Unilever’s margarine brands and promoted our in-store redemptions of baking items; storage containers and cooking utensils with purchase of four bricks or more.

Unilever’s margarines are made from 100% vegetable oils, have no trans fats and no cholesterol. Blue Band has added vitamins, A, D & E, making it the perfect addition for healthy and nutritious treats for children.

UNILEVER MARGARINES CONTINUING SUCCESS IN DIGITAL WITH NOW YUH COOKING!


Export Markets

In Suriname, the car promotion attracted over 30,000 entries.

In 2014, the Export Team executed several promotional activities to increase brand visibility, consumer loyalty and to drive sales across all markets.

GUYANAIn January, vending umbrellas were distributed in the Stabroek market which is the most popular market in Guyana. A very successful Axe promotion was also executed in the Bounty Supermarket during which UCL was able to sell 16 cases of Axe over a two day period (a total of 8 hours) as opposed to less than one case which is usually sold in a week.

SURINAMEIn Suriname, Breeze took its marketing to new heights when it launched a car promotion between the months of May and August. Consumers entered by purchasing a combination of Breeze products based on a simple points system. The main prizes were two brand new cars and a motorcycle. Shoppers who were not lucky enough to win one of the larger prizes were still able to contest for consolation prizes such as mobile phones, staycation packages at a popular Eco resort as well as Unilever product hampers.

There were three prize draws which attracted over 30,000 entries. The brand saw a strong uplift to in market sales compared to the prior year and also generated excitement in the brand. A solid campaign of TV, radio and print advertising in the local Dutch language was used to generate awareness. This activity was credited for sustaining Breeze in the midst of strong competition from local and international detergents.


UNILEVER LEADERSHIP INTERNSHIP PROGRAMME (ULIP):SHAPING OUR FUTURE LEADERS

Our continued focus is on “growing our own timber” to reinforce our talent pool and build better teams for business success. To achieve this goal in 2014, Unilever Caribbean continued to expand the Unilever Leadership Internship Programme (ULIP) which was launched at the end of the previous year. The Human Resources Department received a plethora of interested

candidates from recent University graduates. The team shortlisted 15 but only the top 6 applicants were chosen through a rigorous selection process that included an online aptitude test, interviews, case studies and PowerPoint based presentation assessments. This brought the total number of interns to 8 in 2014.The ULIP gives the interns the exciting opportunity to start their Unilever Career in multiple areas across the company such as Customer Development and Engineering and develop ¬their technical, behavioral and leadership capabilities in a structured manner.The Human Resources department plans on tapping into this pool of University graduates for our future leaders in Unilever!

A GREAT PLACE TO WORK

Unilever Global advanced two (2) spots from placing 5th in 2012 to rank 3rd in LinkedIn’s 100 most desirable employers in the world to work behind Google and Apple, followed by Microsoft and Facebook. Unilever was also the only company outside of technology within the top 5.The professional networking site based its ranking on member awareness and engagement on LinkedIn by looking at how many people viewed employees’ profiles and how many users followed the company’s Company or Career pages within the last year.Unilever was positioned as one of the preferred employers as it offers the best options for business development of its employees through flexible working arrangements that attracts and retains key talent. Our Leadership and Management Teams are committed to delivering superior support to the business through diversity, employee development and leadership programmes. Agile working also provides the flexibility for employees to integrate work with life commitments and engagement activities inspire team building and fun in the workplace.

Congratulations to Ms. Candice Paty, Employee of the Year, 2014. She received this esteemed award for her exceptional leadership and execution skills in the successful launch of Breeze Liquid. This was one of our most anticipated innovations for the year and she delivered 100% distribution in line with our targets.

2014 EMPLOYEE OF THE YEAR

Winning with Our People

Left-right: Vishala Moonan (CD), Brenton Ramjit (SC-GTM), Raisah Ali (CD), James Simmons (Unilever Greater Caribbean Chairman), Anna Brown (CD), Anup Rattansingh (Finance), Tim Kleinebenne (T&T Country Manager), Semone Bedeau (SHE), Shastri Ramkhelawan (SC-Make), Dario Maxime (HR).


BY HELPING PROTECT OUR COASTS- CLEANING UP OUR BEACHESIn September 2014, Unilever volunteers and their families once again took part in the International Coastal Clean-up, an annual expression of its commitment to help protect the environment. The International Coastal Clean-Up is a global event that aims to engage citizens to remove trash and debris from beaches and waterways all around the world, and change behavioural patterns that contribute to pollution. This year volunteer participation was at its highest with 111 people beginning their arduous efforts early in the morning to clean up the Las Cuevas beach. The hardworking group of volunteers collected approximately 2,071 lbs of solid waste, including glass, cans and plastic bottles. Unilever also donated recycling bins to the beach facility.The amount of waste collected underscored the need to educate the public about the marine debris issue.

BY SUPPORTING HEALTH PROGRAMMES - PARTNERSHIP WITH THE TRINIDAD AND TOBAGO CANCER SOCIETYThrough the Unilever Foundation, UCL partnered with the Trinidad and Tobago Cancer Society to support their work with a generous grant of TT$65,578.29 as they continue to make big strides in the field of cancer awareness. This donation will help the organization maintain their cancer awareness programmes which highlight the need for early detection and preventative measures. Their mobile clinics are crucial in supporting their awareness programmes in vulnerable communities.

Winning with our communities

BY SUPPORTING EDUCATIONAL PROGRAMMES- PARTNERSHIP WITH THE L.I.F.E. CENTRE Unilever Foundation and UCL made a donation to the L.I.F.E. Centre, a non-profit organisation dedicated to creating a school environment that provides special education to children within the medium to severe end of the Autism spectrum and communication related disorders. Through Unilever’s generous donation of $65,578.29 the school will continue their health and educational programmes.


A record turn out of over 3,000 persons participated in the Becel Heart Health walk in Curacao and proceeds from the walk, USD 14,000, was donated to the local Heart Foundation.

21

Our enthusiastic Unilever volunteers once again made a significant impact through our 6th observance of Global Handwashing Day (GHD) in Trinidad and Tobago. This year, together with Lifebuoy, we reached a total of 1,200 children on both islands educating them about the importance of proper hand washing with soap. The children were very receptive and appreciative of the life-saving information. School kits made up of GHD posters, bathroom stickers and samples of Lifebuoy aimed at reinforcing the message were sent to 500 schools reaching a further 1,500 children. Lifebuoy also sponsored 10 water tanks in Kernaham village, Mayaro as part of the GHD programme providing the village with potable water reaching a further 120 points of contact through our Lifebuoy efforts.

GLOBAL HANDWASHING DAY

BY SUPPORTING THE MT. D’OR PRIMARY SCHOOL In 2014, Unilever continued its support for the Mt. D’Or Primary School by sponsoring their field trips, part of the new educational initiative of the school. These activities gave the children the opportunity to spend time at other educational venues which helped create a different environment for the children to learn outside the classroom.Over the Christmas season, as is customary, employees donated gifts for the school’s Christmas party. On the day of the party, Santa together with Unilever volunteers distributed the gifts, sharing the season’s joy with the children at the school.

OUR EXPORT COMMUNITIESIn the Export markets, the teams implemented several community activities such as Global Handwashing Day in Barbados, the Dove Self-Esteem programme and health talks in Guyana and the Becel walk in Curaçao.In Barbados 140 students were reached with the Global Handwashing Day programme. The participating schools were the St. Stephens Primary School, West Terrace Primary, Arthur Smith Primary School and Deacons Primary School.In Guyana, for the first time a Dove Self-Esteem workshop was held for teenage girls. This project delivered education through fun and interactive activities that are purposely designed to help girls overcome beauty related worries and barriers that can stop them

from being happy and confident. In October 2014, Becel embarked on yet another Heart Health Walk in Curaçao, with a record turnout of over 3,000 persons. Any consumer who purchased Becel during the promotional period was entitled to a discount off the entry fee to the walk. Attendees not only took to the streets but also participated in Zumba workouts, blood pressure tests as well as educational seminars by nutritionists on site. A total of 25,000 Guilders (approximately USD 14,000) from the proceeds of the walk was donated to the local Heart Foundation.

Also in Guyana, a health talk about the benefits of Blue Band margarine was held for 59 infants between the ages of 3 and 5. The hope is that these children will pass on their experience to their parents, which will ultimately influence their buying decision when it comes to margarine. Developing brand awareness and loyalty at such a young age can have a tremendous impact on enabling us to keep Blueband as the margarine children grow up on.

Unilever Caribbean Limited Annual Report 2014


OUR BUSINESS IS SUBJECT TO RISKS AND UNCERTAINTIES. ON THE FOLLOWING PAGES WE HAVE IDENTIFIED RISKS THAT WE REGARD AS THE MOST RELEVANT TO OUR BUSINESS. THESE ARE THE RISKS THAT WE SEE AS MATERIAL TO UNILEVER CARIBBEAN BUSINESS AND PERFORMANCE AT THIS TIME AND THESE RISKS MIGHT BE CONSIDERED AS INTRINSIC TO THE OPERATION AND SHOULD BE CONSIDERED IN THE SHAREHOLDERS’ DECISION TO BUY, SELL OR HOLD ANY UNILEVER CARIBBEAN LTD´S SHARE. THERE MAY BE OTHER RISKS THAT COULD EMERGE IN THE FUTURE.

OUR PRINCIPAL RISKS

PRINCIPAL RISK DESCRIPTION OF RISK BRAND PREFERENCE

As a branded goods business, Unilever’s success depends on the value and relevance of our brands and products to consumers across the world and on our ability to innovate and remain competitive.

Consumer tastes, preferences and behaviours are constantly changing and Unilever’s ability to anticipate and respond to these changes and to continue to differentiate our brands and products is vital to our business. We are dependent on creating innovative products that continue to meet the needs of our consumers. If we are unable to innovate effectively, Unilever’s sales or margins could be materially adversely affected.

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 categories, 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.

CUSTOMER RELATIONSHIPS

Successful customer relationships are vital to our business and continued growth.

Maintaining strong relationships with our customers is necessary for our brands to be 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 secure favourable trade terms. Unilever may not be able to maintain strong relationships with customers, and failure to do so could negatively impact the terms of business with the affected customers and reduce the availability of our products to consumers.

TALENT A skilled workforce is essential for the continued success of our business.

Our ability to attract, develop and retain the right number of appropriately qualified people is critical if we are to compete and grow effectively. 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.

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 or bankruptcy of a key supplier which could impact our ability to deliver orders to our customers. 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.

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.

SYSTEMS AND INFORMATION Unilever’s operations are increasingly dependent on IT systems and the management of information.

We interact electronically with customers, suppliers and consumers in ways which place even greater emphasis on the need for secure and reliable IT systems and infrastructure, and careful management of the information that is in our possession. Disruption of our IT systems could inhibit our business operations in a number of ways, including disruption to sales, production and cash flows, ultimately impacting our results. There is also a threat from unauthorised access and misuse of sensitive information. Unilever’s information systems could be subject to unauthorised access or the mistaken disclosure of information which disrupts Unilever’s business and/or leads to loss of assets.


BUSINESS TRANSFORMATIONSuccessful 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 and disposals and outsourcing, to drive continuous improvement in our business and to strengthen our portfolio and capabilities.Failure to execute such transactions or change projects successfully, or performance issues with third party outsourced providers on which we are dependent, could result in under-delivery of the expected benefits. Furthermore, disruption may be caused in other parts of the business.

EXTERNAL ECONOMIC AND POLITICAL RISKS AND NATURAL DISASTERSUnilever operates across the globe and is exposed to a range of external economic and political risks and natural disasters that may affect the execution of our strategy or the running of our operations.

Adverse economic conditions may result in reduced consumer demand for our products, and may affect one or more countries within a region, or may extend globally. Government actions such as fiscal stimulus, changes to taxation and price controls can impact on the growth and profitability of our local operations. Social and political upheavals and natural disasters can disrupt sales and operations.

TREASURY AND PENSIONSUnilever is exposed to a variety of external financial risks in relation to Treasury and Pensions.

Changes to the relative value of currencies can fluctuate widely and could have a significant impact on business results.Currency rates, along with demand cycles, can also result in significant swings in the prices of the raw materials needed to produce our goods.Unilever may face liquidity risk, i.e difficulty in meeting its obligations, associated with its financial liabilities. A material and sustained shortfall in our cash flow could undermine Unilever’s credit rating, impair investor confidence and also restrict Unilever’s ability to raise funds. Unilever Caribbean has defined benefit pension plans, which are exposed to movements in interest rates, fluctuating values of underlying investments and increased life expectancy. Changes in any or all of these inputs could potentially increase the cost to Unilever of funding the schemes and therefore have an adverse impact on profitability and cash flow.

ETHICALActing 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.

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. Despite the commitment of Unilever to ethical business and the steps we take to adhere to this commitment, there remains a risk that activities or events cause us to fall short of our desired standard, resulting in damage to Unilever’s corporate reputation and business results.

DISTRIBUTION RIGHTSUnilever NV decision to provide Unilever Caribbean Ltd the rights to sell and distribute Unilever Brands in specific geographies.

Unilever Caribbean Ltd has the rights to distribute Unilever brands in certain defined geographies, however, this is under Unilever NV discretionary decision and could be re-evaluated at any time in accordance to a pre-established distribution contract under Unilever NV discretion.

LEGAL AND REGULATORYCompliance with laws and regulations is an essential part of Unilever’s business operations.

Unilever Caribbean is subject to local and regional laws and regulations in such diverse areas as product safety, product claims, trademarks, copyright, patents, competition, employee health and safety, 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. Tax, in particular, is a complex area where laws and their interpretation are changing regularly, leading to the risk of unexpected tax exposure.


To the Shareholders of Unilever Caribbean Limited

We have audited the accompanying financial statements of Unilever Caribbean Limited (“the Company”), which comprise the statement of financial position as at December 31, 2014, the statements of income, comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of Unilever Caribbean Limited as at December 31, 2014, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Other MatterThe financial statements of the Company as at and for the year ended December 31, 2013, were audited by another auditor who expressed an unqualified opinion on the financial statements on March 28, 2014.

Chartered AccountantsMarch 12, 2015Port of SpainTrinidad, West Indies

Independent Auditors’ Report

25 25Unilever Caribbean Limited Annual Report 2014

Year Ended 31 December 2014 2013 Notes $’000 $’000ASSETSProperty, plant and equipment 8 83,917 80,077Intangible asset 9 25 437Retirement benefit asset 10 49,125 53,512Deferred tax asset 11 6,644 6,999Non-current assets 139,711 141,025

Inventories 12 64,271 51,532Trade and other receivables 13 159,575 99,675Due from related companies 14 2,035 1,264Taxation recoverable 4,904 2,700Cash at bank and in hand 24,223 60,268Current assets 255,008 215,439Total assets 394,719 356,464

EQUITY AND LIABILITIESEQUITYShare capital 15 26,244 26,244Property revaluation surplus 35,284 35,284Retained earnings 157,590 142,663Total equity 219,118 204,191

LIABILITIESRetirement and termination benefit liabilities 10 26,521 27,998Deferred tax liabilities 11 21,246 22,687Non-current liabilities 47,767 50,685

Trade and other payables 16 94,982 79,685Provisions for other liabilities 17 8,913 6,691Due to parent and related companies 14 23,939 15,212Current liabilities 127,834 101,588Total liabilities 175,601 152,273Total equity and liabilities 394,719 356,464

The notes on pages 30 to 54 are an integral part of these financial statements.On 12 March 2015, the Board of Directors of Unilever Caribbean Limited authorised these financial statements for issue.

Director Director

Statement of Financial Position(Expressed in Trinidad and Tobago Dollars)


Year Ended 31 December 2014 2013 Notes $’000 $’000

Revenue 18 587,774 579,372

Cost of Sales (354,681) (345,683)

Gross Profit 233,093 233,689

ExpensesSelling and distribution costs (116,158) (112,920)Administrative expenses (34,095) (35,434)

(150,253) (148,354)

Operating Profit 82,840 85,335Other income 20 5,571 8,006Finance income – net 21 18 25

Profit before taxation 88,429 93,366

Taxation 22 (22,286) (22,881)

Profit for the year 66,143 70,485

Earnings per Share for profit attributable to the equity holders of the Company during the year

- Basic earnings per share 23 $2.52 $2.69

The notes on pages 30 to 54 are an integral part of these financial statements.

Statement of Income (Expressed in Trinidad and Tobago Dollars)


Statement of Comprehensive Income(Expressed in Trinidad and Tobago Dollars)

Year Ended 31 December 2014 2013 Notes $’000 $’000

Profit for the year 66,143 70,485

Other comprehensive income

Items that will never be reclassified to profit or lossRemeasurement of post-employment benefit schemes 10 (54) 18,591Deferred tax on remeasurements 11 14 (4,648)

Other comprehensive income, net of tax (40) 13,943

Total comprehensive income 66,103 84,428



Property Share Revaluation Retained Total Capital Surplus Earnings Equity Note $’000 $’000 $’000 $’000Year ended December 31, 2013

Balance at January 1, 2013 26,244 35,284 98,913 160,441

Total comprehensive incomeProfit for the year - - 70,485 70,485

Other comprehensive income - - 13,943 13,943

Total comprehensive income - - 84,428 84,428

Transaction with owners of the CompanyDividends 24 - - (40,678) (40,678)

Balance at December 31, 2013 26,244 35,284 142,663 204,191

Year ended December 31, 2014

Balance at January 1, 2014 26,244 35,284 142,663 204,191

Total comprehensive incomeProfit for the year - - 66,143 66,143

Other comprehensive income - - (40) (40)

Total comprehensive income - - 66,103 66,103

Transaction with owners of the CompanyDividends 24 - - (51,176) (51,176)

Balance at December 31, 2014 26,244 35,284 157,590 219,118


Statement of Changes in Equity(Expressed in Trinidad and Tobago Dollars)


Year Ended 31 December 2014 2013 $’000 $’000CASH FLOWS FROM OPERATING ACTIVITIESProfit before taxation 88,429 93,366Adjustments for: Depreciation 4,911 4,619 Amortisation 412 477 Loss on disposal of plant and equipment 64 - Net pension costs 7,782 8,848 Contributions paid (4,926) (6,648) Operating profit before working capital changes 96,672 100,662 Changes in: - Inventories (12,739) 155 - Trade and other receivables (59,900) (11,711) - Due from related companies (771) (11) - Trade and other payables 15,297 11,875 - Provisions for other liabilities 2,222 (8,333) - Due to parent and related companies 8,727 (8,307) Cash generated from operating activities 49,508 84,330Taxation paid - net (25,562) (25,090)Net cash from operating activities 23,946 59,240CASH FLOWS FROM INVESTING ACTIVITIES Purchase of plant and equipment (8,815) (4,941)

CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (51,176) (40,678)

(Decrease) increase in cash and cash equivalents (36,045) 13,621Cash and cash equivalents at beginning of year 60,268 46,647Cash and cash equivalents at end of year 24,223 60,268

Represented By:Cash at bank and in hand 24,223 60,268


Statement of Cash Flows(Expressed in Trinidad and Tobago Dollars)


Notes To The Financial Statements(Expressed in Trinidad and Tobago Dollars)

1. General InformationUnilever Caribbean Limited (‘the Company’) was incorporated in the Republic of Trinidad and Tobago in 1929, and its registered office is located at Eastern Main Road, Champs Fleurs. The Company is a public limited liability company and is listed on the Trinidad and Tobago Stock Exchange. The principal business activities are the manufacture and sale of homecare, personal care and food products. The Company is a subsidiary of Unilever Overseas Holdings AG, which is a wholly owned subsidiary of Unilever PLC, a company incorporated in the United Kingdom.

2. Basis of AccountingThese financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations issued by the IFRS Interpretations Committee (IFRSIC) applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of freehold properties.

3. Use of Judgements and EstimatesThe preparation of financial statements in conformity with International Financial Reporting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are discussed below.

Pension benefits

The present value of the pension obligations depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost/income for pensions include the discount rate. Any changes in these assumptions will impact the carrying amount of pension obligations.The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. In determining the appropriate discount rate, the Company considers the interest rates of medium term government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the terms of the related pension obligation.Other key assumptions for pension obligations are based in part on current market conditions. Additional information is disclosed in Note 10.Were the discount rate used to differ by 10% from management’s estimate, the carrying amount of pension obligations would be an estimated $19.868 million lower or $25.418 million higher. In addition, the following table summarises how the defined benefit obligation as at December 31, 2014 would have changed as a result of a change in the other assumptions used: 1% pa 1% pa increase decrease $’000 $’000Future pension increases 35,674 (29,198)Future salary increases 10,227 (8,946)An increase of 1 year in the assumed life expectancies shown above would increase the defined benefit obligation at December 31, 2014 by $6.079 million.These sensitivities were calculated by recalculating the defined benefit obligations using the revised assumptions.


Notes to the Financial StatementsCONTINUED

31 December 2014 • (Expressed in Trinidad and Tobago Dollars)

4. Significant Accounting PoliciesThe principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the statements are presented in Trinidad and Tobago dollars, which is the Company’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of income. Foreign exchange gains and losses that relate to cash and cash equivalents are presented in the statement of income within ‘finance income or costs’.

(b) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the management committee that makes strategic decisions.

(c) Property, plant and equipment

Cost or revaluationFreehold land and buildings are shown at fair value, based on valuations by external independent valuers periodically, but at least every five years, less subsequent depreciation for buildings. Additions to freehold land and buildings subsequent to the date of revaluation are shown at cost. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is restated to the revalued amount of the asset. All other property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of items.Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.Increases in the carrying amount arising on revaluation of freehold land and buildings are credited to other comprehensive income and shown as ‘property revaluation surplus in shareholders’ equity. This reserve is non-distributable. Decreases that offset previous increases in the same asset are charged in other comprehensive income and debited against ‘property revaluation surplus’ directly in equity; all other decreases are charged to profit or loss.




4. Significant Accounting Policies (continued)(c) Property, plant and equipment (continued)

Depreciation

Land and capital work in progress are not depreciated.Depreciation is calculated on the straight line basis using the following rates:Freehold buildings - 2.5% per annumPlant and equipment - 7% to 33 1/3% per annum.Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down to its recoverable amount (Note 4(e)).Gains and losses on disposal of property, plant and equipment are determined by reference to the proceeds and their carrying amounts and are taken into account in determining operating profit. On disposal of revalued assets, amounts in the revaluation reserve relating to that asset are transferred to retained earnings.

(d) Intangible assets

Computer software acquisition costs are recognised as assets at the cost incurred to acquire and bring to use the specific software. These assets are amortised over their useful lives, which do not exceed five years.

(e) Impairment of non-financial assets

Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

(f) Financial assets

The Company classifies its financial assets as loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.Regular purchases and sales financial assets are recognised on the trade-date, the date on which the Company commits to purchase or sell the asset.Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non-current assets. The Company’s loans and receivables comprise ‘trade and other receivables, ‘due from related companies’ and ‘cash and cash equivalents’ in the statement of financial position (Notes 4(j) and 4(h)). Impairment testing of trade receivables is described in Note 4(g).




4. Significant Accounting Policies (continued)(g) Impairment of financial assets

The Company assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.The criteria that the Company uses to determine that there is objective evidence of an impairment loss include:• Significant financial difficulty of the customer;• A breach of contract, such as a default or delinquency in payments;• The Company, for economic or legal reasons relating to the customer’s financial difficulty, granting to the

customer a concession that the Company would not otherwise consider;• It becomes probable that the customer will enter bankruptcy or other financial reorganisation.For loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is recognised in profit or loss.If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the reversal of the previously recognised impairment loss is recognised in profit or loss.

(h) Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand.

(i) Inventories

Inventories are stated at the lower of weighted average cost or net realisable value. The cost of raw and packaging materials and finished goods are determined on a weighted average cost basis. Finished goods include a proportion of attributable production overheads. Work in progress comprises direct costs of raw and packaging materials and related production overheads. The cost of inventories excludes borrowing costs.Engineering and general stores are valued at weighted average cost.Goods in transit are valued at suppliers’ invoice cost.Net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses.

(j) Trade and other receivables

Trade receivables are amounts due from customers for merchandise sold in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as non-current assets. Other receivables consist mainly of Value Added Tax (VAT) recoverable. Trade receivables are initially recognised at fair value and subsequently measured at amortised cost less provision for impairment.




4. Significant Accounting Policies (continued)(k) Share capital

Ordinary shares are classified as equity.

(l) Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Other payables comprise outstanding statutory liabilities as well as accruals for advertising and promotion. Trade payables are initially recognised at fair value and subsequently measured at amortised cost.

(m) Current and deferred tax

The tax expense for the period comprises current and deferred income tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income.The current tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the reporting date. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.The principal temporary differences arise from depreciation on property, plant and equipment, revaluation of freehold building and post-retirement benefits.Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

(n) Post-retirement benefits

The Company operates defined benefit pension plans covering certain regular full time employees. The funds of the plan are administered by the trustee and are separate from the Company’s assets.

(i) Pension obligations

A defined benefit plan is a pension plan that is not a defined contribution plan. Typically defined benefit plans define an amount of pension benefit that an employee will receive on

retirement, usually dependent on one or more factors such as age, years of service and compensation.




4. Significant Accounting Policies (continued)(n) Post-retirement benefits (continued)

(i) Pension obligations (continued)

The liability or asset recognised in the statement of financial position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on Government bonds are used.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. Past-service costs are recognised immediately in profit or loss.

The Company also operates a supplementary pension scheme. This is a closed scheme providing ex-gratia pensions for which no additional employees are expected to qualify. The expected costs of these benefits are accrued over the period of employment, using an accounting methodology similar to that for defined benefit pension plans. Valuations of these obligations are carried out annually by independent qualified actuaries.

(ii) Other post-employment obligations

The industrial agreement covering the hourly rated employees provides for a termination benefit which functions as a retirement benefit for those employees who are not in the pension plan.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income in the period in which they arise. These obligations are valued annually by independent qualified actuaries.

(iii) Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. These benefits are payable in accordance with the Industrial Agreement between the Company and the Trade Union. The Company recognises termination benefits at the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to their present value.

(iv) Profit-sharing and bonus plans

The Company recognises a liability and an expense for bonuses and profit-sharing, based on a formula that takes into consideration the profit attributable to the Company’s shareholders after certain adjustments. The Company recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.




4. Significant Accounting Policies (continued)(o) Provisions

Provisions for are recognised when: the Company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the reporting date.

(p) Revenue recognition

Revenue comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax, rebates and discounts. Revenue is recognised as follows:

Sales of goods

Sales of goods are recognised when the Company has delivered products to the customer and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery does not occur until the products have been shipped to the specified location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract or the Company has objective evidence that all criteria for acceptance have been satisfied.

Interest income

Interest income is recognised when it is determined that such income will accrue to the Company. Interest income is recognised using the effective interest method.

Other income

Other income is recognised when the right to receive payment is established.

(q) Accounting for leases - where the company is the lessee

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

(r) Dividend distribution

Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial statements in the period in which the dividends are approved by the Company’s directors.




5. New Standards or Amendments and Forthcoming Requirements(i) New and amended standards adopted by the Company

The following standards have been adopted by the Company for the first time for the financial year beginning on or after January 1, 2014 and have a material impact on the Company:• IFRIC 21, ‘Levies’, sets out the accounting for an obligation to pay a levy that is not income tax. The

interpretation addresses what the obligating event is that gives rise to pay a levy and when should a liability be recognised. The Company is not currently subjected to significant levies so the impact on the Company is not material.

• Amendments to IAS 36, ‘Impairment of Assets’, on the recoverable amount disclosures for non-financial assets. This amendment removed certain disclosures of the recoverable amount of CGUs which had been included in IAS 36 by the issue of IFRS 13.

(ii) New standards and interpretations not yet adopted

A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after January 1, 2014, and have not been applied in preparing these financial statements. None of these are expected to have a significant effect on the financial statements of the Company except where indicated: • IFRS 9, published in July 2014, replaces the existing guidance in IAS 39 Financial Instruments: Recognition

and Measurement. IFRS 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39.

IFRS 9 is effective for annual reporting periods beginning on or after January 1, 2018, with early adoption permitted.

The Company is assessing the potential impact on its financial statements resulting from the application of IFRS 9.

Given the nature of the Company’s operations, this standard is expected to have a pervasive impact on the Company’s financial statements. In particular, calculation of impairment of financial instruments on an expected credit loss basis is expected to result in an increase in the overall level of impairment allowances.

• IFRS 15 Revenue from Contracts with Customers IFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue

is recognised. It replaces existing revenue recognition guidance, including IAS 18 Revenue, IAS 11 Construction Contracts and IFRIC 13 Customer Loyalty Programmes.

IFRS 15 is effective for annual reporting periods beginning on or after January 1, 2017, with early adoption permitted

The Company is assessing the potential impact on its financial statements resulting from the application of IFRS 15.

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Company.




6. Financial Risk Management(i) Financial risk factors The Company’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value

interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. Risk management is carried out in line with policies approved by the Board of Directors. (a) Market risk

(i) Foreign exchange risk

The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the United States dollar. Foreign exchange risk arises from commercial transactions when recognised assets or liabilities are denominated in a currency that is not the Company’s functional currency.

At December 31, 2014, if the TT dollar had weakened/strengthened by 5% against the US dollar with all other variables held constant, post tax profit for the year would have been $17,156 (2013: $21,199) lower/higher, mainly as a result of foreign exchange losses/gains on translation of US dollar denominated trade and other receivables, trade and other payables, cash at bank and in hand and due to/from related companies.

(ii) Cash flow and fair value interest rate risk

As the Company has no significant interest-bearing assets and liabilities other than deposits held at banks, the Company’s income and operating cash flows are substantially independent of changes in market interest rates.

(iii) Price risk

The Company is not exposed to equity securities price risk since there are no investments held as available for sale or at fair value through profit or loss.

(b) Credit riskCredit risk arises from cash and cash equivalents as well as credit exposures to customers. The Company has credit risk, however the Company has policies in place to ensure that sales of products are made to customers with an appropriate credit history. Credit risk arises primarily from credit exposures from sales to distributors and retail customers, including outstanding receivables (See Notes 13 and 25(b)).The credit quality of customers, their financial position, past experience and other factors are taken into consideration in assessing credit risk and are regularly monitored through the use of credit terms. Management does not expect any losses from non-performance by counterparties in excess of the provision made. Cash and deposits are held with reputable financial institutions. The maximum exposure to credit risk at the reporting date is the fair value of cash and cash equivalents as well as each class of receivables mentioned in Note 13 and Note 25(b).




6. Financial Risk Management (continued)(i) Financial risk factors (continued)

(c) Liquidity riskPrudent liquidity risk management implies maintaining sufficient cash and short-term funds and the availability of funding through an adequate amount of committed credit facilities. Due to the dynamic nature of the underlying business, the Company aims at maintaining flexibility in funding by keeping committed credit lines available.The table below analyses the Company’s non-derivative financial liabilities based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed are the contractual undiscounted cash flows. Balances due within one year equal their carrying balances.

Less than one year 2014 2013 $’000 $’000

Trade and other payables, excluding statutory liabilities 92,894 79,660Due to parent and related companies 23,939 15,212Provisions for other liabilities 8,913 6,691

(ii) Fair value estimation

The carrying amount of short-term financial assets and liabilities comprising: cash at bank and in hand, due from related companies, trade and other receivables, trade and other payables, and due to parent and related companies are a reasonable estimate of its fair values because of the short-term maturity of these instruments.

7. Capital Risk ManagementThe Company’s objectives when managing capital are to safeguard its ability to continue as a going concern, in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.The Company monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Total capital is calculated as ‘equity’ as shown in the statement of financial position plus net debt. The Company currently has no borrowings to constitute net debt.




8. Property, Plant and Equipment Freehold Freehold Plant and Work in Land Buildings Equipment Progress Total $’000 $’000 $’000 $’000 $’000Year ended December 31, 2014Opening net book amount 30,000 19,084 28,513 2,480 80,077Additions - - - 8,815 8,815Transfers - - 4,609 (4,609) - Disposals - - (64) - (64)Depreciation charge - (411) (4,500) - (4,911)Closing net book amount 30,000 18,673 28,558 6,686 83,917

At December 31, 2014Cost or valuation 30,000 26,957 97,243 6,686 160,886Accumulated depreciation - (8,284) (68,685) - (76,969)Net book amount 30,000 18,673 28,588 6,686 83,917

Year ended December 31, 2013Opening net book amount 30,000 19,494 29,525 736 79,755Additions - - - 4,941 4,941Transfers - - 3,197 (3,197) - Depreciation charge - (410) (4,209) - (4,619)Closing net book amount 30,000 19,084 28,513 2,480 80,077

At December 31, 2013Cost or valuation 30,000 26,957 102,828 2,480 162,265Accumulated depreciation - (7,873) (74,315) - (82,188)Net book amount 30,000 19,084 28,513 2,480 80,077

An independent valuation of land and buildings was performed by Linden Scott & Associates, professional valuers on October 25, 2011. This valuation, which conforms to International Valuation Standards, was determined by reference to recent market transactions on arm’s length basis. The revaluation surplus, net of applicable deferred income taxes, was credited to other comprehensive income and is shown in “property revaluation surplus” in equity.Depreciation expense of $4.144 million (2013: $4.058 million) has been charged in cost of sales, $0.331 million (2013: $0.250 million) in distribution costs and $0.436 million (2013: $0.311 million) in administrative expenses.If freehold land and buildings were stated on the historical cost basis, the amounts would be as follows:

2014 2013 $’000 $’000

Cost 18,830 18,830Accumulated depreciation (8,050) (7,655)Net book amount 10,780 11,175




9. Intangible Asset 2014 2013 $’000 $’000

Opening net book amount 437 914Amortisation charge for the year (412) (477)Closing net book amount 25 437

Cost 2,125 2,125Accumulated amortisation (2,100) (1,688)Closing net book amount 25 437

This represents amounts paid to IBM Mexico, IBM Brazil and Accenture in respect of expenses related to the Human Resources Transformation (HRT) Project. This is a global project aimed at achieving greater efficiency and enabling Human Resources to play a more strategic role in the Business. Intrinsic to this project is the implementation of an integrated Human Resource Information System.

10. Retirement and Termination Benefits 2014 2013 $’000 $’000

(a) Pension benefitsRetirement benefit assetMonthly paid staff (b) 50,285 55,558Hourly paid staff (c) (1,160) (2,046) 49,125 53,512

Retirement and termination obligationsSupplementary pension scheme (e) (634) (1,484)Termination benefits – lump sum plan (f) (25,887) (26,514) (26,521) (27,998)

Total amounts recognised in other comprehensive income:Monthly paid staff 3,284 (20,469)Hourly paid staff (1,304) 789Supplementary pension scheme (777) 101Termination benefits – lump sum plan (1,149) 988 54 (18,591)

Total amounts recognised in the statement of income:Current service cost 8,800 9,078Net interest on net defined benefit liability (asset) (1,455) (680)Administration expenses 437 450Net pension expense 7,782 8,848

Pension expense of $4.760 million (2013: $6.105 million) has been charged in cost of sales, $1.622 million (2013: $1.681 million) in distribution costs and $1.400 million (2013: $1.062 million) in administrative expenses.The actual return on plan assets was $11.423 million (2013: $29.492 million).




10. Retirement and Termination Benefits (continued)(a) Pension benefits (continued)

The principal assumptions are as follows: 2014 2013 % % Per Per annum annumDiscount rate- Active and deferred 5.00 5.00- Pensioners 5.00 5.00- Terminations/lump sum benefits 5.00 5.00- Supplementary pension 5.00 5.00 Salary increases- Monthly paid employees 4.50 4.50- Weekly paid employees 4.00 4.00- Supplementary pension 2.75 2.75- Termination/lump sum 4.00 4.00

NIS ceiling/pension increases- Pension increases 2.75 2.75

(b) Retirement benefit asset (Monthly paid staff) 2014 2013 $’000 $’000

Amounts recognised in the statement of financial position are as follows:

Present value of funded obligations (253,457) (246,672)Fair value of plan assets 303,742 302,230Retirement benefit asset 50,285 55,558

Movement in the asset recognised in the statement of financial position:

Asset as at January 1 55,558 38,187Net pension cost (4,033) (5,248)Re-measurements recognised in other comprehensive income (3,284) 20,469Contributions paid 2,044 2,150Asset as at December 31 50,285 55,558




10. Retirement and Termination Benefits (continued)(b) Retirement benefit asset (Monthly paid staff) (continued)

2014 2013 $’000 $’000

Amounts recognised in the statement of income:Current service cost 6,607 6,943Interest on benefit obligation (2,872) (2,008)Administration expenses 298 313Net pension cost 4,033 5,248

Plan assets are comprised as follows: 2014 2013 $’000 % $’000 %Debt instruments 148,837 49 162,923 54Equity instruments 145,692 48 133,981 44Other 9,213 3 5,326 2 303,742 100 302,230 100 The expected return on plan assets is determined by considering the expected returns available on the assets underlying the current investment policy. Expected yields on fixed interest investments are based on gross redemption yields as at the reporting date. Expected returns on equity reflect long-term real rates of return experienced in the market.

2014 2013 2012 2011 2010 $’000 $’000 $’000 $’000 $’000As at December 31Present value of definedbenefit obligation (253,457) (246,672) (240,768) (232,703) (211,831)Fair value of plan assets 303,742 302,230 278,955 260,767 247,840Surplus 50,285 55,558 38,187 28,064 36,009

Expected contributions to the monthly paid staff plan for the year ending December 31, 2015 are $1.904 million (2014: $2.044 million).




10. Retirement and Termination Benefits (continued)(b) Retirement benefit asset (Monthly paid staff) (continued)

2014 2013 $’000 $’000

Change in defined benefit obligationDefined benefit obligation at start 246,672 240,768Service cost 6,607 6,943Interest cost 12,025 11,818Members’ contribution 2,053 2,150Experience adjustment (1,407) (6,081)Benefits paid (12,493) (8,926)Defined benefit obligation at end of year 253,457 246,672 Change in plan assetsPlan asset at start of year 302,230 278,955Return on plan assets (4,691) 14,388Interest income 14,897 13,826Company contributions 2,044 2,150Members’ contributions 2,053 2,150Benefits paid (12,493) (8,926)Expenses paid (298) (313)Plan assets at end of year 303,742 302,230

(c) Retirement benefit obligation (Hourly paid staff)Amounts recognised in the statement of financial position are as follows:Present value of funded obligations (17,929) (15,595)Fair value of plan assets 16,769 13,549Retirement benefit obligation (1,160) (2,046)

Movement in the obligation recognised in the statement of financial position:Obligation as at January 1 (2,046) (1,086)Net pension cost (1,361) (1,310)Remeasurements recognised in other comprehensive income 1,304 (789)Contributions paid 943 1,139Obligation as at December 31 (1,160) (2,046)

Amounts recognised in the statement of income:Current service cost 1,157 1,161Net interest 65 12Administration expenses 139 137Net pension cost 1,361 1,310 Re-measurements recognised in other comprehensive income:Experience losses (1,304) 789




10. Retirement and Termination (continued)(c) Retirement benefit obligation (Hourly paid staff) (continued)

2014 2013 2012 2011 2010 $’000 $’000 $’000 $’000 $’000As at December 31Present value of defined benefit obligation (17,929) (15,595) (11,541) (8,524) (6,390)Fair value of plan assets 16,769 13,549 10,455 8,448 6,374Deficit (1,160) (2,046) (1,086) (76) (16)

Expected contributions to the hourly paid staff plan for the year ending December 31, 2015 are $1.604 million (2014: $0.943 million).

2014 2013 $’000 $’000

Change in defined benefit obligationDefined benefit obligation at start 15,595 11,541Service cost 1,157 1,161Interest cost 792 580Members’ contribution 695 684Experience adjustments (814) 1,499Benefits paid (1,045) (1,151)Termination lump sum transferred in 1,549 1,281Defined benefit obligation at end of year 17,929 15,595

Change in plan assetsPlan asset at start of year 13,549 10,455Return on plan assets 490 710Interest income 727 568Company contributions 943 1,139Members’ contributions 695 684Benefits paid (1,045) (1,151)Expense allowance (139) (137)Termination lump sum transferred in 1,549 1,281Plan assets at end of year 16,769 13,549

(d) Composition of Plan assets (Hourly paid staff) Plan assets are comprised as follows: 2014 2013 $’000 % $’000 %Debt instruments 9,829 59 8,171 60Equity instruments 5,550 33 4,471 33Other 1,390 8 907 7 16,769 100 13,549 100




10. Retirement and Termination Benefits (continued)(d) Composition of Plan assets (Hourly paid staff) (continued)

The expected return on plan assets is determined by considering the expected returns available on the assets underlying the current investment policy. Expected yields on fixed interest investments are based on gross redemption yields as at the reporting date. Expected returns on equity reflect long-term real rates of return experienced in the market.

(e) Supplementary pension schemeAmounts recognised in the statement of financial position are as follows:

2014 2013 $’000 $’000

Present value of funded obligations as at December 31 (634) (1,484)

Re-measurements recognised in other comprehensive incomeExpense (gains) losses (777) 101 Amounts recognised in the statement of income:Interest on benefit obligation 71 70

Change in defined benefit obligationDefined benefit obligation at start (1,484) (1,483)Interest cost (71) (70)Experience adjustment 777 (101)Benefits paid 144 170Defined benefit obligation at end of year (634) (1,484)

2014 2013 2012 2011 2010 $’000 $’000 $’000 $’000 $’000As at December 31Present value of defined benefit obligation (634) (1,484) (1,483) (1,967) (1,951)Deficit (634) (1,484) (1,483) (1,967) (1,951)

Expected contributions to the supplementary pension scheme for the year ending December 31, 2015 are $0.105 million (2014: $0.144 million).

(f) Termination benefits lump sum planAmounts recognised in the statement of financial position are as follows:

2014 2013 $’000 $’000

Present value of funded obligations as at December 31 (25,887) (26,514)

Movement in the liability recognised in the statement of financial position:Defined obligation at start (26,514) (26,495)Current service cost (1,036) (974)Interest cost (1,281) (1,246)Experience adjustment 1,149 (988)Benefits paid 1,795 3,189Defined benefit obligations at end of year (25,887) (26,514)




10. Retirement and Termination Benefits (continued)(f) Termination benefits lump sum plan (continued)

Amounts recognised in the statement of income: 2014 2013 $’000 $’000

Current service cost 1,036 974Interest on benefit obligation 1,281 1,246Net pension cost 2,317 2,220

2014 2013 2012 2011 2010 $’000 $’000 $’000 $’000 $’000As at December 31Present value of defined benefit obligation (25,887) (26,514) (26,495) (25,249) (20,527)Deficit (25,887) (26,514) (26,495) (25,249) (20,527)

Expected contributions to the termination lump sum plan for the year ending December 31, 2015 are $2.196 million (2014: $1.795 million).

11. Deferred TaxationDeferred tax asset and liabilities in the statement of financial position and the deferred tax (credit) charge in profit or loss and other comprehensive income are attributable to the following items:

Charge (credit) Credit to to Other Profit or Comprehensive 2013 Loss Income 2014 $’000 $’000 $’000 $’000

Deferred tax liabilities Accelerated tax depreciation 6,911 (344) - 6,567Retirement benefit asset 13,378 (1,097) - 12,281Property revaluation surplus 2,398 - - 2,398 22,687 (1,441) - 21,246Deferred tax assetRetirement benefit - obligation (6,999) 369 (14) (6,644)Net deferred tax liability 15,688 (1,072) (14) 14,602

Credit to Charge to Other Profit or Comprehensive 2012 Loss Income 2013 $’000 $’000 $’000 $’000

Deferred tax liabilities Accelerated tax depreciation 6,641 270 - 6,911Retirement benefit asset 9,078 (348) 4,648 13,378Property revaluation surplus 2,398 - - 2,398 18,117 (78) 4,648 22,687Deferred tax assetRetirement benefit obligation (6,797) (202) - (6,999)Net deferred tax liability 11,320 (280) 4,648 15,688




12. Inventories 2014 2013 $’000 $’000

Finished goods 37,037 32,208Raw materials and supplies 12,810 9,133Engineering and general stores 3,838 3,745Goods in transit 9,913 5,750Work in progress 673 696 64,271 51,532

The cost of inventories recognised as an expense and included in cost of sales amounted to $274.401 million (2013: $261.731 million). Inventories written off during the year amounted to $1.668 million (2013: $1.260 million).

13. Trade and Other Receivables 2014 2013 $’000 $’000

Trade receivables 138,205 87,942Less: provision for impairment of trade receivables (47) (29)Trade receivables – net 138,158 87,913Other receivables 12,321 9,759Prepayments 9,096 2,003 159,575 99,675

Included in the other receivables balance is an amount of $12.321 million (2013: $9.759 million) for value added tax recoverable.As at December 31, 2014, trade receivables of $83.896 million (2013: $64.673 million) were fully performing.Trade receivables that are less than 1 month past due are not considered impaired. The creation and release of provision for impaired receivables have been included in ‘selling and distribution costs’ in profit or loss. Trade receivables of $54.309 million (2013: $23.240 million) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of trade receivables in arrears is as follows:

2014 2013 $’000 $’000

Up to 1 month 40,202 21,658Up to 2 months 8,411 1,582Over 2 months 5,696 -

As of December 31, 2014, trade receivables of $0.047 million (2013: $0.029 million) were impaired and fully provided for. The individually impaired receivables mainly relate to wholesalers, who are in unexpectedly difficult economic situations. The ageing of these receivables is as follows:

2014 2013 $’000 $’000

Over 6 months 47 29




13. Trade and Other Receivables (continued) The carrying amounts of trade and other receivables are denominated in the following currencies:

2014 2013 $’000 $’000

Trinidad and Tobago dollars 98,696 67,573United States dollars 60,879 32,102 159,575 99,675

Movements on the Company’s provision for impairment of trade receivables are as follows: 2014 2013 $’000 $’000

At January 1 29 19Additions 18 10At December 31 47 29

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above. The Company does not hold any collateral as security.

14. Related Party Transactions and BalancesThe Company is controlled by Unilever Overseas Holdings AG (Incorporated in Switzerland) which owns 50.01% of the Company’s shares, the remaining 49.99% are held widely.The following transactions were carried out with related parties:

2014 2013 $’000 $’000

i) Sales to related companies 12,121 12,295ii) Purchases from related companies 141,320 104,023iii) Royalties and service fees charged to the Company 34,253 33,677iv) Key management compensation: - Salaries and other short-term employee benefits 7,707 6,609

v) Year end balances arising from sales/purchases of goods/services, royalties and service fees: Due from related companies 2,035 1,264

Due to parent and related companies 23,939 15,212




15. Share Capital 2014 2013 $’000 $’000

AuthorisedAn unlimited number of ordinary shares of no par valueIssued and fully paid26,243,832 ordinary shares of no par value 26,244 26,244

16. Trade and Other Payables Trade payables 63,505 51,656Other payables and accruals 31,477 28,029 94,982 79,685

17. Provisions At January 1 6,691 15,024Additional provisions 7,495 6,126Unused amounts reversed (1,167) (3,322)Used during the year (4,106) (11,137)At December 31 8,913 6,691 These provisions relate to short-term employee benefits.

18. Revenue Third party sales 575,653 567,077Sales to related companies (Note 14) 12,121 12,295 587,774 579,372

19. Expenses(a) Expenses by nature

Cost of imported goods sold 127,901 127,093Raw materials and packaging materials used 146,134 134,638Employee benefit expense (Note 19(b)) 89,153 85,523Royalties and service fees (Note 14) 34,253 33,677Production costs 22,833 25,002Advertising and promotional costs 28,456 27,847Distribution costs 20,404 20,522Human resources costs 9,499 7,541Depreciation (Note 8) 4,911 4,619Information technology costs 5,729 7,466Marketing and sales 5,288 4,469Merchandising expenses 3,409 3,762Loss on disposal of plant and equipment 64 - Buying and planning 772 2,557Other expenses 5,716 8,844Amortisation (Note 9) 412 477Total cost of sales, selling and distribution costs and administrative expenses 504,934 494,037




19. Expenses 2014 2013 $’000 $’000

(b) Employee benefit expense Wages and salaries 77,436 73,226 National insurance 3,935 3,449 Retirement and termination benefits (Note 10(a)) 7,782 8,848

89,153 85,523

20. Other IncomeProceeds from sale of brands owned by parent company 5,571 8,006

21. Finance Income – NetNet finance income 18 25

22. Taxation (a) Tax expense comprises:

Current tax 23,358 23,161Deferred tax credit (Note 11) (1,072) (280) 22,286 22,881

(b) Tax reconciliation The Company’s effective tax rate varies from the statutory rate of 25% as a result of the differences shown

below: 2014 2013 $’000 $’000

Profit before taxation 88,429 93,366 Tax calculated at 25% 22,108 23,342 Tax effects of: Income not subject to tax (7) - Expenses not deductible for tax purposes 59 193 Under (over) provision of prior year’s taxes 126 (654) Tax charge 22,286 22,881

23. Earnings Per Share – Basic and Diluted Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company by

the weighted average number of ordinary shares in issue during the year.

2014 2013

Profit attributable to equity holders ($’000) 66,143 70,485 Weighted average # of ordinary shares in issue (‘000) (Note 15) 26,244 26,244 Basic earnings per share $2.52 $2.69




24. DividendsOn March 12, 2015, the Board of Directors declared a final dividend of $1.45 per share bringing the total dividend in respect of the current year to $1.77 per share. These financial statements do not reflect the final dividend which will be accounted for as an appropriation of retained earnings in the year ending December 31, 2015.Dividends accounted for as an appropriation of retained earnings are as follows:

2014 2013 $’000 $’000

Final dividend for 2013 - $1.63 per share (2012 - $1.23 per share) 42,778 32,280Interim dividend for 2014 - $0.32 per share (2013 - $0.32 per share) 8,398 8,398 51,176 40,678

25. Financial Instruments (a) Financial instruments by category

The accounting policies for financial instruments have been applied to the line items below:Loans and receivables:

2014 2013 $’000 $’000

Assets as per statement of financial positionTrade and other receivables, excluding prepayments 150,479 97,672Cash at bank and in hand 24,223 60,268Due from related parties (Note 14) 2,035 1,264

176,737 159,204 Other financial liabilities at amortised cost:

Liabilities as per statement of financial positionTrade and other payables, excluding statutory liabilities 92,894 79,660Due to parent and related parties (Note 14) 23,939 15,212Provisions for other liabilities (Note 18) 8,913 6,691

125,746 101,563

(b) Credit quality of financial assetsThe credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates:

2014 2013 $’000 $’000

Trade receivablesCounterparties without external credit ratingGroup 1 764 92Group 2 86,307 64,579Group 3 51,087 23,242Total unimpaired trade receivables 138,158 87,913

Group 1 - new customersGroup 2 - existing customers with no default in the past yearGroup 3 - existing customers with some defaults in the past year. All defaults were fully recovered.




25. Financial Instruments (continued) Amounts due from related partiesBalances due from related parties are fully performing and there have been no defaults in the past.

Cash and cash equivalents 2014 2013 $’000 $’000

Reputable financial institutions:Cash at bank 13,275 51,380

26. Bank FacilitiesThe Company has facilities with the following financial institutions: • RBC Royal Bank (Trinidad and Tobago) Limited – overdraft facilities to a maximum of TT$12 million (2013:

TT$12 million) on its TTD denominated accounts, with interest at the commercial prime rate of 7.5% (2013: 7.5%).

• Citibank (Trinidad and Tobago) Limited - Trade financing facility to a maximum of US$5 million (2013: US$5 million). - Working capital financing facility to a maximum of US$2.5 million (2013: US$2.5 million).

27. Contingent Liabilities 2014 2013 $’000 $’000

Custom bonds and other guarantees 7,460 7,510

The Company is defendant in various Industrial Relations matters. In the opinion of management, after taking appropriate legal advice, the outcome of such actions will not give rise to any significant loss.

28. Lease Commitments The future aggregate minimum lease payments under the terms of non-cancellable operating leases is $11.594 million (2013: $9.899 million).

2014 2013 $’000 $’000

Not later than one year 8,883 7,638Later than one year and not later than five years 2,711 2,261 11,594 9,899

Lease payments recognised in profit or loss amount to $9.863 million (2013: $9.476. million).




29. Operating Segments(a) Basis for segmentation Management has determined the operating segments based on the reports reviewed by the management

committee that are used to make strategic decisions.The Company is organised into three main business segments:• Home care - manufacture and sale of a range of laundry detergents and other household products. • Personal care - sale of a range of skin care, oral care and personal hygiene products.• Foods - manufacture and sale of a wide range of general food items.

There are no sales or other transactions between the business segments.

(b) Information about reportable segments Information related to each reportable segment is set out below. Segment profit before tax is used to measure

performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities that operate in the same industries.

(i) Business

Home Care Personal Care Foods Total 2014 2013 2014 2013 2014 2013 2014 2013 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Segment revenue 239,385 232,446 130,847 128,544 217,542 218,382 587,774 579,372

Profit before taxation 16,609 21,080 32,306 30,930 39,514 41,356 88,429 93,366

(ii) Geographical

Revenue Total Assets Profit before Tax 2014 2013 2014 2013 2014 2013 $’000 $’000 $’000 $’000 $’000 $’000

Trinidad and Tobago 354,412 353,759 356,592 322,032 60,321 62,366Other 233,362 225,613 38,127 34,432 28,108 31,000 587,774 579,372 394,719 356,464 88,429 93,366

Property, plant and equipment and intangible assets of $83.942 million (2013: $80.514 million) are located in Trinidad and Tobago.The “other” segment includes revenue and receivables from sales to other Caribbean countries including CARICOM, Aruba and the Netherlands Antilles.

30. Events after the Reporting Date There are no events occurring after the statement of financial position date and before the date of approval of the financial statements by the Board of Directors that require adjustment to or disclosure in these financial statements.


TO ALL SHAREHOLDERS

Notice is hereby given that the Eighty-Sixth Annual General Meeting of Shareholders of Unilever Caribbean Limited will be held in the Port of Spain ballroom of the Hyatt Hotel, Wrightson Road, Port of Spain on Thursday 21 May 2015 at 2:00 p.m. for the following purposes:

ORDINARY BUSINESS

1. To receive and consider the Report of the Directors and Auditors, and the Financial Statements for the year ended 31 December 2014.

2. To sanction the final dividend for the year ended 31 December 2014.

3. To re-elect a Director.

4. To elect Directors.

5. To appoint Auditors, KPMG and authorise the Directors to fix their remuneration for the ensuing year.

By order of the Board

Mark BeepathSecretary

NOTES:1. No service contracts were entered into between the company and any of its Directors.

2. The Transfer Book and Register of Members will be closed on Monday 8 and Tuesday 9 June 2015 for payment of dividend on Monday 22 June 2015 to all shareholders whose names appear on the Register of Members as at the close of business on Friday 5 June 2015.

3. A member of the company entitled to attend and vote is entitled to appoint one or more proxies to attend and, on a poll, to vote instead of him. A proxy need not also be a member of the company.

Notice of Annual Meeting


For the year ended 31 December 2014

REPUBLIC OF TRINIDAD & TOBAGO

THE COMPANIES ACT, 1995(Section 144)

1. Name of Company: UNILEVER CARIBBEAN LIMITED

2. Company No. U 464 ( C )

3. Particulars of Meeting: Eighty Sixth Annual General Meeting of Shareholders of Unilever Caribbean Limited to be held

on Thursday 21 May 2015 in the Port of Spain ballroom of the Hyatt Hotel, #1 Wrightson Road, Port of Spain

2. Solicitation: It is intended to vote the Proxy hereby solicited by the Management of the Company (unless the

Shareholder directs otherwise) in favour of all resolutions specified in the Proxy Form sent to the shareholders with this circular, and, in the absence of a specific direction, in the discretion of the Proxy holder in respect of any other resolution.

3. Any Director’s statement submitted pursuant to Section 76 (2): No statement has been received from any Director pursuant to Section 76 (2) of the Companies

Act, 1995.

4. Any Auditor’s statement submitted pursuant to Section 171 (1): No proposal has been received from the Auditors of the Company pursuant to Section 171 (1) of

the Companies Act, 1995.

5. Any Shareholder’s proposal and/or statement submitted pursuant to Section 116 (a) and 117 (2):

No proposal has been received from any shareholder pursuant to Section 116 (a) and 117 (2) of the Companies Act, 1995.

Date Name and Title Signature 12 March 2015 Mark Beepath, Secretary

Management Proxy Circular

57

NAME OF COMPANY: UNILEVER CARIBBEAN LIMITED COMPANY NO. U 464 (C)

I/We (Block Capitals, please) ………….………………………………………………………………………………………………………………...being a member/members of the above Company, hereby appoint Mr. Gary Voss, or failing him, Mr. Tim Kleinebenne, Directors of the Company, or Mr/Ms………………..……………………..…………………………..………………..……. to be my/our proxy to vote for me/us on my/our behalf as indicated below on the Resolutions to be proposed at the Annual General Meeting of the Company to be held on Thursday 21 May 2015.

As witness my hand this ………….…..day of ……………………………………………………………..…………………………………. 2015.

Signature of Shareholder/s ………………………………………………………………...……………………………………………………………

Please indicate with an ‘X’ in the spaces below how you wish your proxy to vote on the Resolutions referred to. If no such indication is given, the proxy will exercise his discretion as to how he votes or whether he abstains from voting.

RESOLUTION 1: To receive and consider the Audited Financial Statements of the Company for the year ended 31 December 2014, together with the Reports of the Directors and the Auditors thereon.

RESOLUTION 2: To sanction the final dividend for the year ended 31 December 2014.

RESOLUTION 3: To re-elect Mr. Seamus as a Director, in accordance with Section 4.4.1. of the Company Bye-Laws whereby directors shall retire in rotation. Mr. Clarke, being eligible, offers himself for re-election until the close of the next third Annual General Meeting of Shareholders.

RESOLUTION 4: To elect directors to the Board. In accordance with Section 4.3.2 of the Company Bye-Laws whereby

directors so appointed shall hold office only until the next following general meeting, the following directors, being eligible, offer themselves for election to the Board.

1. Mr. Emerson Inacio

2. Mr. Pablo Garrido

3. Ms. Enid Blasini

RESOLUTION 5: To appoint Auditors, KPMG, and authorise the Directors to fix their remuneration.

For Against

Proxy Form

Unilever Caribbean Limited Annual Report 2014


NOTES:

1. If it is desired to appoint a proxy other than the named Directors, the necessary deletions must be made and initialled and the name inserted in the space provided.

2. If the appointor is a corporation, this form must be under the hand of some officer or attorney duly authorised in that behalf.

3. In the case of joint holders, the signatures of all holders are required.4. To be valid, the form must be completed and deposited at the office of the Secretary of the Company not less than

48 hours before the time fixed for holding the meeting or adjourned meeting.

Mail to: The Secretary Unilever Caribbean Limited Box 295 Port of Spain

Or deposit to: The Secretary Unilever Caribbean Limited Eastern Main Road CHAMPS FLEURS

PROXY FORM (CONTINUED)

Operating Margin ROCE E.P.S. D.P.S.

2010 2011 2012 2013 2014

¢197¢226

¢222

¢269

¢132¢154 ¢155

¢195

¢252

¢177

14% 15% 16%14%

36%32%

38% 37%

14%

31%

2010 2011 2012 2013 2014

Operating Margin & Return on Capital Employed (Percent)

2014 2013 2012 2011 2010Operating performanceTurnover (TT$000) 587,774 579,372 567,089 527,355 495,150Earnings before interest and tax (TT$000) 82,840 93,341 78,029 77,788 70,331Profit before Taxation (TT$000) 88,429 93,366 78,067 77,606 69,672Taxation (TT$000) 22,286 22,881 19,858 18,360 18,020Profit after Taxation (TT$000) 66,143 70,485 58,209 59,246 51,652Return on Stockholders' Equity 30.2% 34.5% 36.3% 31.3% 34.3%Return on Capital Employed 31.0% 36.6% 37.8% 32.4% 35.8%Operating Margin 14.1% 16.1% 13.8% 14.8% 14.2%

Liquidity IndicatorsCurrent Ratio 2.0 2.12 1.77 1.9 1.6Net Current Assets (TT$000) 127,174 113,851 81,969 90,445 62,492

Capital Structure and Long Term Solvency RatiosShare Capital (TT$000) 26,244 26,244 26,244 26,244 26,244Capital Reserves (TT$000) 35,284 35,284 35,284 35,284 21,294Dividends (TT$000) 46,452 40,678 40,415 40,416 34,642Special Dividend(TT$000) 32,805Retained Earnings (TT$000) 157,590 142,663 98,913 127,856 103,252Total Stockholders' Funds (TT$000) 219,118 204,191 160,441 189,384 150,790Total Liabilities (TT$000) 175,601 152,273 152,581 148,545 148,792Capital Employed (TT$000) 266,885 254,876 206,536 240,256 196,545

Earnings and DividendsEPS (cents) 252 269 222 226 197DPS (cents) 177 195 155 154 132Special Dividend (cents) 125

Market indicatorsPrice earnings ratio 25.60 20.89 21.24 14.39 11.45Dividend cover 1.42 1.38 1.43 1.47 1.49Dividend yield (%) 2.74 3.47 3.29 4.73 5.85Share price at 31 December ($) 64.50 56.20 47.15 32.53 22.55Net asset value per share unit 8.35 7.78 6.11 7.22 5.75

Layout: Paria Publishing Co. Ltd.Printing: The Office Authority Ltd.

Earnings & Dividends Per Share (cents)

FIVE - YEAR FINANCIAL REVIEW

FOR FURTHER INFORMATION ON OUR ECONOMIC, ENVIRONMENTAL AND SOCIAL PERFORMANCE, PLEASE VISIT OUR WEBSITE:

WWW.UNILEVERCARIBBEAN.COM

This report is printed on FSC and PEFC approved, acid-free paper.

CORPORATE INFORMATION

Directors: Gary N. VossTim KleinebenneRoxane E. de FreitasSeamus ClarkeEmerson InacioJacqueline Quamina

Secretary: Mark Beepath

Registered Office: Eastern Main RoadChamps FleursTelephone: (868) 663-1787Facsimile: (868) 662-1780

Registrar and Transfer Office: RBC Trust (Trinidad & Tobago) LimitedLevel 855 Independence SquarePort of SpainTelephone: (868) 625-7288 ext. 4817- 20

Auditors:KPMGTrinre Building69-71 Edward StreetPort of Spain

Bankers:Citibank (Trinidad & Tobago) Limited12 Queen’s Park EastPort of Spain

RBC Royal Bank (Trinidad & Tobago) Limited 31 Eastern Main Road San Juan Scotiabank Trinidad & Tobago LimitedPark & Richmond StreetsPort of Spain

Attorneys: J.D. Sellier & Company129-131 Abercromby StreetPort of Spain

Audit Committee: Seamus Clarke, Chairman Tim KleinebenneGary N. Voss

UNILEVER CARIBBEAN

LIMITED AN

NU

AL REPORT AND ACCOU

NTS 2014

Documents

UNILEVER CARIBBEAN LIMITED - Home | Unilever … · Our Unilever Sustainable ... the astute leadership of the ... Limited . Unilever Caribbean Limited . Unilever Caribbean Limited