Financial Data and Key Metrics Changes - Full year 2023 underlying sales growth was 7% with price contributing strongly at 6.8% and volume returning to positive territory at 0.2% [88] - Fourth quarter growth was 4.7%, with a significant step-up in volume growth to 1.8% and price at 2.8% [80] - Underlying operating margin for the year was 16.7%, up 60 basis points versus 2022, with gross margin expansion of 200 basis points [122] Business Line Data and Key Metrics Changes - Beauty & Wellbeing delivered an underlying sales growth of 8.3%, with 4.4% in volume and 3.8% in price [96] - Personal Care had an underlying sales growth of 8.9% for the year, driven by mid-teens growth from Deodorants [90] - Ice Cream experienced a disappointing year with a 6% decline in volume, although price growth was 8.8% [106] Market Data and Key Metrics Changes - North America grew 7% in the quarter with volume up strongly at 6.3% [111] - Latin America grew 13.4% in the quarter, successfully navigating the commodity cycle with a pivot from price-led growth to strong volume growth of 9.1% [112] - Asia Pacific Africa grew 1.9% in the quarter with 0.7% volume and 1.1% price [116] Company Strategy and Development Direction - The company is focused on driving volume growth and mix as price growth returns to more normalized levels [80] - Significant changes in the Ice Cream business are being made to address underperformance, including a sharpened pricing and promotional strategy [107] - The company aims to solidify its position in the U.S. market before pursuing internationalization of brands [16] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current level of competitiveness is unacceptable and is investing in improving execution to turn it around [136] - The company is cautious about the outlook for Indonesia and India, with expectations of mid-single-digit declines in Indonesia for the first quarter [49] - Management highlighted the importance of brand and product differentiation to grow volume and expand gross margin consistently [94] Other Important Information - The company has made significant changes in its portfolio, including the acquisition of premium brands and the disposal of unprofitable segments [135] - Free cash flow for 2023 was strong at EUR 7.1 billion, resulting in a cash conversion ratio of 111% [145] - The company plans to allocate capital to bolt-on acquisitions to strengthen its portfolio in premium segments and faster-growing channels [147] Q&A Session Summary Question: Can you dive a little bit more into Prestige Beauty and wellness? - Management noted that all brands in Prestige Beauty have been growing double-digit, particularly those acquired recently [45] Question: What is your outlook for Indonesia and India in terms of top line and margin for 2024? - Management indicated a cautious approach for Indonesia with expected mid-single-digit declines and a positive outlook for India with volume growth expected to continue [50][49] Question: Can you explain the capital expenditure guidance and its relation to productivity? - Management guided an increase in capital expenditure from 2.7% to between 3% and 3.5% for 2024, focusing on productivity improvements [25]

FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 Dated February 08, 2024 Commission File Number: 001-04546 UNILEVER PLC (Translation of registrant's name into English) UNILEVER HOUSE, BLACKFRIARS, LONDON, ENGLAND (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F..X.. Form 40-F I ...

Unilever PLC Conference Call Summary Company Overview - **Company**: Unilever PLC (NYSE: UL) - **Date**: December 14, 2023 - **Participants**: Hein Schumacher (CEO), Warren Ackerman (Barclays) Key Points Strategic Changes and Growth Action Plan - Unilever is implementing a **Growth Action Plan (GAP)** aimed at improving performance and closing the valuation discount [5][10] - The company is focusing on **fewer initiatives with greater impact**, prioritizing resources on the top 30 brands [4][5] - A significant **leadership overhaul** has occurred, with 60-70% of the team changed to drive the new strategy [4][10] Financial Performance and Market Share - Unilever reported an **inflection point in gross margin** at the beginning of 2023, indicating positive momentum [6][26] - The company acknowledged a decline in market share, currently at **38%**, down from **58%** over the past several quarters, and aims to improve this metric [21][22] - The top 30 brands, which represent over **70% of revenue**, are growing faster than the company average, indicating potential for recovery [22][27] Investment and Resource Allocation - Unilever is committed to **increasing investments** in advertising, research and development (R&D), and capital expenditures, with a focus on the top brands [24][28] - R&D spending is set to increase from **1.6 billion** to support innovation, while capital expenditure will rise from **2.7 billion** to between **3 and 3.5 billion** [28][29] Cultural and Organizational Changes - The company is working to change its culture to enhance **accountability and speed** in decision-making, moving away from a complex matrix structure [15][20] - Remuneration will be tied more closely to performance, with a shift from a narrow payout corridor to a more differentiated approach [19][20] Market Dynamics and Competitive Landscape - Unilever faces challenges in Europe, where volume has declined by **11%** in the last quarter, partly due to pricing pressures and SKU reductions [49][51] - The company is focusing on **premiumization** strategies in both emerging and developed markets, with a cautious approach to expanding prestige brands [37][39] Regional Insights - **India** remains a key growth market, with expectations for continued strong performance despite short-term pricing pressures [53][56] - **Indonesia** has stabilized after a period of share loss, with new leadership and strategies being implemented to improve performance [60][61] - In **China**, Unilever is focusing on organic growth and leveraging strong brand positions without major acquisitions [63][64] Innovation and Product Development - Unilever aims to increase the size of its innovation pipeline to **five times** the 2020 baseline, focusing on breakthrough innovations [33][34] - The company is actively measuring consumer perceptions across various product dimensions to enhance brand superiority [30][32] Conclusion - Unilever is undergoing significant strategic and organizational changes aimed at revitalizing growth and improving market share. The focus on fewer, high-impact initiatives, along with increased investment in key areas, positions the company for potential recovery and long-term success.

Hein Schumacher - Chief Executive Officer Graeme Pitkethly - Chief Financial Officer Jemma Spalton - Head of Investor Relations Good morning, and welcome to Unilever's Third Quarter Trading Statement and CEO update. Today's agenda will run as follows. Firstly, Graeme will update you on our quarter three performance and the outlook. I will then share my action plan to lift Unilever's performance to achieve our full potential. We will leave plenty of time to take your questions at the end. Graeme Pitkethly qu ...

| --- | --- | --- | --- | --- | --- | |-------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | Unilever H1 2023 Results | | | | | | | SCHUMACHER & GRAEME PITKETHLY HEIN | | | | | | | 25 JUL 2023 | | | | | | Safe harbour statement This document may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'will', 'aim', 'expects', 'anticipates', 'inte ...

Financial Data and Key Metrics Changes - Unilever's turnover for the first half was €30.4 billion, up 2.7% compared to last year, with underlying sales growth of 9.1% [38] - Underlying operating margin improved by 10 basis points to 17.1%, driven by gross margin improvements and increased brand investment [17][38] - Underlying earnings per share increased by 3.9% in current currency, despite a negative foreign exchange impact of 5.3% [42] Business Line Data and Key Metrics Changes - Beauty & Wellbeing reported 8.8% growth in the quarter, with a balance of 4.9% volume and 3.7% price [26] - Personal Care delivered 9% growth in the quarter, with 5.4% price and 3.4% volume [28] - Nutrition grew by 8.9%, led by price at 11.8%, while volume was down 2.6% [30] - Ice Cream grew 5.6%, with price up 12.1% and volumes down 5.8% [31] Market Data and Key Metrics Changes - The U.S. reported 7.4% growth in the half, with strong contributions from Prestige, Beauty, and Health & Wellbeing [19] - India grew by 9.1%, with a good balance of price and volume, particularly strong in Home Care [19] - Emerging markets represented nearly 60% of turnover and grew at 10.6%, led by price but with positive volume [20] Company Strategy and Development Direction - The new CEO emphasized the need to enhance brand investment and innovation to drive performance and competitiveness [4][6] - Focus on sustainability, particularly in reducing greenhouse gas emissions and improving packaging [8] - Continued investment in R&D and brand marketing to support growth plans [43] Management's Comments on Operating Environment and Future Outlook - Management noted that inflation is moderating, but there are still pockets of volatility, particularly in agricultural commodities [47] - The company expects underlying sales growth to be above 5% for the full year, with a modest improvement in operating margin [44] - Management is focused on returning Unilever Indonesia to competitiveness, with ongoing efforts to reset pricing and promotional strategies [59][60] Other Important Information - The company completed the acquisition of Yasso, a premium U.S. frozen Greek yogurt brand, and disposed of the Suave brand in the U.S. [18] - Digital commerce grew by 16% in the first half, now representing 16% of turnover [20] Q&A Session Summary Question: Key competitive advantage in the midterm - The CEO highlighted the strong portfolio of brands, with 14 brands over €1 billion, and a significant presence in emerging markets as key competitive advantages [45] Question: Pricing outlook in H2 - The CEO noted that pricing is moderating, but there are still areas of volatility, particularly in food commodities, which may require continued pricing adjustments [47][48] Question: Margin guidance and conservatism - Management acknowledged the quality of margin delivery in the first half but indicated that the operating margin typically decreases in the second half, necessitating cautious guidance [53][54] Question: Volume dynamics despite SKU reduction - Management confirmed that the reduction in SKUs has had a short-term impact on market share, but they are focused on managing the price-volume dynamic effectively [54][55] Question: Sustainability commercialization - The CEO emphasized the importance of converting sustainability efforts into commercial offerings while focusing on areas with significant impact [57][58] Question: Confidence in Indonesia's recovery - Management expressed cautious optimism about Indonesia's recovery, noting improvements in market share and ongoing strategic actions to enhance competitiveness [59][60]

FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 REPORT OF FOREIGN ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 Dated July 25, 2023 Commission File Number: 001-04546 UNILEVER PLC (Translation of registrant's name into English) UNILEVER HOUSE, BLACKFRIARS, LONDON, ENGLAND (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F..X.. Form 40-F Indic ...

Unilever PLC (NYSE:UL) Q1 2023 Earnings Conference Call April 27, 2023 3:00 AM ET Company Participants Richard Williams - Head of Investor Relations Alan Jope - Chief Executive Officer Graeme Pitkethly - Chief Financial Officer Conference Call Participants John Ennis - Goldman Sachs David Hayes - Societe Generale Tom Sykes - Deutsche Bank Martin Deboo - Jefferies Warren Ackerman - Barclays Pinar Ergun - Morgan Stanley Celine Pannuti - JPMorgan Operator [Operator Instructions] We would like to now turn the c ...

[FORM 20-F Filing Information](index=2&type=section&id=FORM%2020-F%20Filing%20Information) This section details Unilever PLC's Annual Report on Form 20-F for fiscal year 2022, including SEC filing specifics and registered securities [SEC Filing Details](index=2&type=section&id=SEC%20Filing%20Details) This section identifies the document as an Annual Report on Form 20-F for the fiscal year ended December 31, 2022, filed with the United States Securities and Exchange Commission by Unilever PLC - The document is an Annual Report on Form 20-F for the fiscal year ended December 31, 2022[3](index=3&type=chunk) - Unilever PLC is incorporated in England and is a well-known seasoned issuer[4](index=4&type=chunk)[7](index=7&type=chunk) [Registrant Information & Securities](index=2&type=section&id=Registrant%20Information%20%26%20Securities) Unilever PLC's contact information is provided, along with details of its registered securities, including ordinary shares and American Depositary Shares listed on the New York Stock Exchange, and various notes due between 2023 and 2097. The total number of outstanding shares at year-end 2022 was 2,629,243,772 - Unilever PLC's contact person is Maria Varsellona, Chief Legal Officer and Group Secretary, based in London, UK[4](index=4&type=chunk) Securities Registered on New York Stock Exchange | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :----------------------------------------------------------- | :---------------- | :---------------------------------------- | | Ordinary shares, nominal value of 3 1/9 pence per share | ULVR | New York Stock Exchange* | | American Depositary Shares (evidenced by Depositary Receipts) each representing one ordinary share of the | UL | New York Stock Exchange | - The total number of outstanding shares of the issuer's capital stock at the close of the period covered by the annual report was **2,629,243,772**[7](index=7&type=chunk) [Strategic Report Overview](index=4&type=section&id=Strategic%20Report%20Overview) This section outlines the report's structure, including forward-looking statements, key components, and a detailed table of contents [Cautionary Statement](index=4&type=section&id=Cautionary%20Statement) This section contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially. Key risks include consumer preferences, innovation, portfolio management, climate change, supply chain disruptions, raw material costs, IT infrastructure, and geopolitical events like the Russia-Ukraine war. The Group disclaims any obligation to update these statements - The document contains forward-looking statements, identified by words like 'will', 'expects', 'anticipates', and 'intends'[13](index=13&type=chunk) - Material factors that could cause actual results to differ include Unilever's global brands not meeting consumer preferences, ability to innovate and remain competitive, investment choices in portfolio management, effect of climate change on business, ability to find sustainable solutions to plastic packaging, significant changes or deterioration in customer relationships, recruitment and retention of talented employees, disruptions in supply chain and distribution, increases or volatility in raw material and commodity costs, production of safe and high-quality products, secure and reliable IT infrastructure, execution of acquisitions, divestitures and business transformation projects, economic, social and political risks and natural disasters, financial risks, failure to meet high and ethical standards, and managing regulatory, tax and legal matters[13](index=13&type=chunk) - A number of these risks have increased due to the current Russia-Ukraine war[13](index=13&type=chunk) - The Group expressly disclaims any obligation to publicly release updates or revisions to forward-looking statements, except as required by law[13](index=13&type=chunk) [Report Structure & Content](index=5&type=section&id=Report%20Structure%20%26%20Content) This Annual Report on Form 20-F 2022 is composed of the Strategic Report (pages 1-76), the Governance Report (pages 77-131), Financial Statements and Notes (pages 133-213), and Additional Information for US Listing Purposes (pages 226-235). The Strategic Report covers strategy, business model, market outlook, KPIs, sustainability, and risk - The document is comprised of the Strategic Report (pages 1 to 76), the Governance Report (pages 77 to 131), the Financial Statements and Notes (pages 133 to 213), and Additional Information for US Listing Purposes (pages 226 to 235)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - The Strategic Report includes information on Unilever's strategy, business model, market outlook, key performance indicators, sustainability approach, and risk management[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [Table of Contents](index=6&type=section&id=Table%20of%20Contents) The detailed table of contents outlines the report's structure, covering the Strategic Report, Governance Report, Financial Statements, and additional information, with specific page references for each section and sub-section, including business group reviews, performance metrics, and risk management - The table of contents provides a comprehensive overview of the report's structure, including sections on Strategic Report, Our Performance, Our Principal Risks, Governance Report, and Financial Statements[25](index=25&type=chunk) - Key sections include detailed reviews of five Business Groups (Beauty & Wellbeing, Personal Care, Home Care, Nutrition, Ice Cream), financial and non-financial performance, and climate-related disclosures[25](index=25&type=chunk) [About Unilever](index=7&type=section&id=About%20Unilever) This section provides an overview of Unilever's global presence, 2022 financial highlights, and its Compass strategy for sustainable growth and organizational structure [Unilever at a Glance](index=7&type=section&id=Unilever%20at%20a%20Glance) Unilever is a global consumer goods company with over 400 brands, serving 3.4 billion people daily. In 2022, it achieved strong top-line growth of 9.0% in underlying sales, with turnover crossing €60.1 billion. The company emphasizes a multi-stakeholder business model, leveraging its diverse workforce, consumer insights, impactful innovations, resilient supply chain, world-class manufacturing, agile customer operations, and purposeful marketing to create value - Unilever is one of the world's largest consumer goods companies, with over **400** brands used by approximately **3.4 billion** people daily[26](index=26&type=chunk)[30](index=30&type=chunk) 2022 Financial Highlights | Metric | 2022 Value | 2021 Value | | :---------------------- | :--------- | :--------- | | Turnover | €60.1bn | €52.4bn | | Underlying sales growth | 9.0% | 4.5% | | Operating margin | 17.9% | 16.6% | | Underlying operating margin | 16.1% | 18.4% | | Dividends paid | €4.3bn | €4.5bn | | Free cash flow | €5.2bn | €6.4bn | - Unilever's business model focuses on creating value through its diverse and talented people (**127,000** employees in ~**100** countries), cutting-edge consumer and customer insights (**300M+** personalized digital experiences), impactful innovations, a resilient supply chain (**€41.3bn** spend on raw materials and services), world-class manufacturing (**730** factories), agile customer operations (**45M** customer orders processed annually), and effective and purposeful marketing (**€7.3bn** spend on Brand and Marketing Investment)[30](index=30&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - Brands with purpose and product superiority are shown to unlock accelerated growth[30](index=30&type=chunk)[32](index=32&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [The Unilever Compass Strategy for Sustainable Growth](index=13&type=section&id=The%20Unilever%20Compass%20Strategy%20for%20Sustainable%20Growth) Unilever's Compass strategy aims for sustainable growth by making sustainable living commonplace, delivering winning performance as a global leader in sustainable business. The strategy focuses on building a high-growth portfolio across five Business Groups, winning with superior products, innovation, and purpose, accelerating in key markets (USA, India, China), and leading in future channels through operational excellence and a growth-focused, purpose-led organization - Unilever's purpose is to make sustainable living commonplace, with a vision to deliver winning performance by being the global leader in sustainable business[46](index=46&type=chunk)[47](index=47&type=chunk) - The strategy involves building a high-growth portfolio across five Business Groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - Key strategic pillars include winning with brands powered by superior products, innovation, and purpose; accelerating in key markets (USA, India, China); and leading in future channels (e.g., digital commerce, top customers)[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - Operational excellence is driven through five growth fundamentals: purposeful brands, improved penetration, impactful innovation, design for channel, and value[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - This is supported by a growth-focused and purpose-led organization and culture, driving climate action, reducing plastic, regenerating nature, and raising living standards[48](index=48&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) [Our Compass Organisation](index=15&type=section&id=Our%20Compass%20Organisation) Unilever's new Compass Organisation, operational since July 1, 2022, is designed to be simpler, faster, and more accountable, structured around five distinct Business Groups (Beauty & Wellbeing, Personal Care, Home Care, Nutrition, Ice Cream). Each Business Group has end-to-end responsibility for strategy and P&L, supported by a lean Corporate Centre and a highly skilled Unilever Business Operations team that provides supply chain expertise, technology, and enterprise services - The new Compass Organisation, implemented on July 1, 2022, is structured around five Business Groups: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream[52](index=52&type=chunk)[279](index=279&type=chunk) - Each Business Group has end-to-end responsibility for strategy, performance, and P&L, incorporating geographical Business Units[51](index=51&type=chunk)[54](index=54&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[279](index=279&type=chunk)[280](index=280&type=chunk) - The organization is supported by a lean Corporate Centre for global strategy and functional expertise, and a technology-driven Unilever Business Operations team for cost-efficient, resilient, and sustainable operations[51](index=51&type=chunk)[54](index=54&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[279](index=279&type=chunk)[280](index=280&type=chunk) - This new model aims to enhance speed, focus, and accountability, leveraging global scale while empowering category-focused teams[51](index=51&type=chunk)[54](index=54&type=chunk)[271](index=271&type=chunk)[272](index=272&type=chunk)[279](index=279&type=chunk)[280](index=280&type=chunk) [Review of the Year](index=17&type=section&id=Review%20of%20the%20Year) This section presents the Chair's and CEO's statements, a group financial review, and detailed performance of each business group, alongside updates on people, culture, and sustainability initiatives [Chair's Statement](index=17&type=section&id=Chair%27s%20Statement) The Chair's statement highlights Unilever's strong all-round performance in 2022, with 9.0% underlying sales growth despite a challenging macroeconomic environment and record input cost inflation. Strategic decisions, including responsible price increases and portfolio transformation towards faster-growing categories like Prestige Beauty and Health & Wellbeing, contributed to resilience. The new Compass Organisation is expected to drive future growth and efficiency. Leadership changes include the retirement of CEO Alan Jope and the appointment of Hein Schumacher - Unilever delivered a strong all-round performance in 2022, with underlying sales up by **9.0%** in a challenging macroeconomic environment[57](index=57&type=chunk) - Strategic price increases and higher savings helped protect performance and allowed continued investment in brand, marketing, and R&D[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - Underlying operating profit slightly improved to **€9.7 billion**, despite a decline in operating margin due to material inflation[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) - A **€3 billion** share buyback program was announced for 2022-2023, with **€1.5 billion** completed in 2022, alongside **€4.3 billion** in dividends paid[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk) - Portfolio transformation over five years rotated **17%** of brands into faster-growing categories; Prestige Beauty and Health & Wellbeing are now **€1 billion** businesses with double-digit growth[67](index=67&type=chunk)[68](index=68&type=chunk) - The new Compass Organisation, structured around five Business Groups, aims for a simpler, more transparent, and category-expert business model, showing increased speed of decision-making in early implementation[67](index=67&type=chunk)[68](index=68&type=chunk) - Nelson Peltz joined the Board in July 2022, and Hein Schumacher was appointed as the new CEO, effective July 1, 2023, following Alan Jope's announced retirement[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) [Chief Executive Officer's Statement](index=21&type=section&id=Chief%20Executive%20Officer%27s%20Statement) The CEO's statement characterizes 2022 as a volatile year marked by permacrisis, including Covid lockdowns, climate change impacts, and the Russia-Ukraine war, leading to soaring material costs (€4.3 billion inflation). Despite this, Unilever achieved 9.0% underlying sales growth, its fastest in years, driven by pricing (11.3%) with modest volume decline (2.1%). Growth was broad-based across all five Business Groups and emerging markets, with digital commerce growing 23%. The new Compass Organisation is expected to accelerate growth and enhance competitiveness, while sustainability efforts continue to drive value creation - 2022 was a volatile year with 'permacrisis' conditions, including Covid lockdowns, climate change impacts, and the Russia-Ukraine war, leading to **€4.3 billion in material cost inflation**[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Unilever achieved **9.0%** underlying sales growth, driven by **11.3%** price growth and a modest **2.1%** volume decline, demonstrating brand strength and execution quality[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - Turnover increased by **14.5%** to over **€60 billion** for the first time, partly due to currency movements (**+6.2%**)[88](index=88&type=chunk) - Growth was broad-based across all five Business Groups, with **14** brands exceeding **€1 billion** turnover, growing **10.9%** and representing **53%** of the business[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - Emerging markets grew **11.2%**, despite challenges in China due to lockdowns[94](index=94&type=chunk) - Underlying operating margin was **16.1%**, with absolute underlying profit at **€9.7 billion**, and free cash flow at **€5.2 billion**[95](index=95&type=chunk)[96](index=96&type=chunk) - The new Compass Organisation, a major shake-up, aims for greater category expertise and responsiveness, with Business Groups having strategic freedom and leveraging 'One Unilever' scale[95](index=95&type=chunk)[96](index=96&type=chunk) - Sustainability is a core driver of value creation, evidenced by growth from purposeful brands, cost efficiencies from eco-measures, reduced risk in water-stressed areas, and talent attraction[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk) [Group Financial Review](index=25&type=section&id=Group%20Financial%20Review) In 2022, Unilever achieved a turnover of €60.1 billion, a 14.5% increase, with underlying sales growth of 9.0% driven by 11.3% price growth. Operating profit reached €10.8 billion, including a €2.3 billion gain from the Tea business sale, while underlying operating profit was €9.7 billion, a slight increase of 0.5%. Gross margin decreased by 210bps due to record input cost inflation. Free cash flow was €5.2 billion, and diluted EPS increased by 29% to €2.99, largely due to the Tea business disposal - Unilever's 2022 turnover reached **€60.1 billion**, a **14.5% increase**, with underlying sales growth of **9.0%** (**11.3% price growth**, **2.1% volume decline**)[107](index=107&type=chunk)[108](index=108&type=chunk) 2022 Financial Performance Highlights | Metric | 2022 Value | 2021 Value | | :----------------------------------- | :--------- | :--------- | | Turnover | €60.1bn | €52.4bn | | Underlying sales growth | 9.0% | 4.5% | | Underlying price growth | 11.3% | 2.9% | | Underlying volume growth | (2.1)% | 1.6% | | Operating profit | €10.8bn | €8.7bn | | Underlying operating profit | €9.7bn | €9.6bn | | Operating margin | 17.9% | 16.6% | | Underlying operating margin | 16.1% | 18.4% | | Free cash flow | €5.2bn | €6.4bn | | Diluted earnings per share | €2.99 | €2.32 | | Underlying earnings per share | €2.57 | €2.62 | - Operating profit was **€10.8 billion**, including a **€2.3 billion** gain from the sale of the Tea business[107](index=107&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - Underlying operating profit increased by **0.5%** to **€9.7 billion**, but underlying operating margin decreased by **230bps** due to raw material, packaging, processing, and distribution cost inflation[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - Digital commerce sales grew to **15%** of overall sales, and **€1 billion+** brands (**53%** of turnover) delivered **10.9%** underlying sales growth[116](index=116&type=chunk) - Emerging markets grew **11.2%** (**13.5% price**, **2.0% volume decline**), while developed markets grew **5.9%** (**8.4% price**, **2.3% volume decline**)[116](index=116&type=chunk) - Free cash flow was **€5.2 billion**, with **€1.5 billion** in share repurchases completed as part of a **€3 billion** program, and **€4.3 billion** in dividends paid[116](index=116&type=chunk) - Portfolio reshaping continued with the sale of the Tea business and acquisitions like Nutrafol, positioning Unilever in higher-growth areas like Prestige Beauty and Health & Wellbeing[116](index=116&type=chunk) [Business Group Review](index=29&type=section&id=Business%20Group%20Review) The Business Group Review provides a detailed look into the performance of Unilever's five new segments: Beauty & Wellbeing, Personal Care, Home Care, Nutrition, and Ice Cream. Each group demonstrated unique growth drivers and challenges in 2022, navigating high inflation and market dynamics through strategic pricing, innovation, and portfolio adjustments. Key themes include premiumization, digital commerce expansion, and purpose-led brand initiatives, all contributing to the overall Group's resilience and strategic transformation [Beauty & Wellbeing](index=29&type=section&id=Beauty%20%26%20Wellbeing) The Beauty & Wellbeing Business Group, accounting for 20% of Unilever's turnover and 24% of underlying operating profit, achieved 7.8% underlying sales growth in 2022. Growth was driven by price increases in Hair Care and Skin Care, with modest volume declines. Prestige Beauty and Health & Wellbeing categories saw double-digit growth, supported by acquisitions like Nutrafol and strong digital commerce performance. The strategy focuses on purposeful brands, science-backed innovations, and premiumization Beauty & Wellbeing Performance Highlights (2022 vs 2021) | Metric | 2022 Value | 2021 Value | | :------------------------ | :--------- | :--------- | | Turnover | €12.3bn | €10.1bn | | Turnover growth | 20.8% | 11.6% | | Underlying sales growth | 7.8% | 8.5% | | Operating margin | 17.6% | 21.1% | | Underlying operating margin | 18.7% | 22.1% | - Beauty & Wellbeing represents **20%** of Unilever's total turnover and **24%** of its underlying operating profit[122](index=122&type=chunk)[123](index=123&type=chunk) - Hair Care and Skin Care categories delivered price-led growth with modest volume declines[133](index=133&type=chunk) - Health & Wellbeing and Prestige Beauty categories grew double-digit, contributing **€1.3 billion** and **€1.2 billion** in turnover respectively[136](index=136&type=chunk)[137](index=137&type=chunk) - Acquired a majority stake in Nutrafol, a premium hair wellness brand, building on expertise in beauty and hair[140](index=140&type=chunk)[141](index=141&type=chunk) - Digital commerce accounts for about half of all Prestige Beauty portfolio sales, with strong growth in China[143](index=143&type=chunk)[144](index=144&type=chunk) - Purpose-led brands like Dove and Vaseline continue to drive inclusive beauty and skin health initiatives[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk) [Personal Care](index=35&type=section&id=Personal%20Care) The Personal Care Business Group, contributing 23% of Unilever's turnover and 28% of underlying operating profit, achieved 7.9% underlying sales growth in 2022. Skin Cleansing, Deodorants, and Oral Care all saw high single-digit to double-digit growth, primarily driven by strong pricing. The strategy focuses on innovation to premiumize the portfolio, leveraging global brands like Rexona and Dove, and expanding digital commerce, especially in China. Purpose-led initiatives by brands like Lifebuoy, Pepsodent, and Dove continue to promote health and wellbeing Personal Care Performance Highlights (2022 vs 2021) | Metric | 2022 Value | 2021 Value | | :------------------------ | :--------- | :--------- | | Turnover | €13.6bn | €11.7bn | | Turnover growth | 15.9% | (2.3)% | | Underlying sales growth | 7.9% | 0.3% | | Operating margin | 16.6% | 19.9% | | Underlying operating margin | 19.6% | 21.3% | - Personal Care accounts for **23%** of Unilever's total turnover and **28%** of underlying operating profit[150](index=150&type=chunk)[151](index=151&type=chunk) - Skin Cleansing grew high single-digit, Deodorants delivered double-digit growth, and Oral Care grew high single-digit, all driven by pricing[161](index=161&type=chunk)[162](index=162&type=chunk) - Innovation, such as Rexona's 72-hour protection deodorant, is key to premiumization and category leadership[164](index=164&type=chunk)[165](index=165&type=chunk) - Digital commerce grew **21.7%** and accounts for **12.6%** of Personal Care turnover, with China being the largest digital commerce market (**52%** of sales)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - Brands like Lifebuoy reached **647 million** people through hand hygiene campaigns, Pepsodent expanded teledentistry, and Dove continued body confidence programs[170](index=170&type=chunk)[171](index=171&type=chunk)[172](index=172&type=chunk) - Operating profit decreased by **3.1%** to **€2.3 billion**, but underlying operating profit increased by **6.9%** to **€2.7 billion**, driven by savings and mix benefit from Deodorants[174](index=174&type=chunk)[175](index=175&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk) [Home Care](index=41&type=section&id=Home%20Care) The Home Care Business Group, representing 21% of Unilever's turnover and 14% of underlying operating profit, achieved 11.8% underlying sales growth in 2022. Fabric Cleaning saw double-digit growth, while Fabric Enhancers and Home & Hygiene grew high and low single-digit respectively, all primarily driven by pricing. The 'Clean Future' strategy emphasizes premiumization, science-backed innovations (e.g., plant-based ingredients, concentrated formats), and sustainability, including a €115 million joint venture with Genomatica for plant-based ingredients. Digital commerce is a key channel for premium products, and Unilever Professional (UPro) grew 32% Home Care Performance Highlights (2022 vs 2021) | Metric | 2022 Value | 2021 Value | | :------------------------ | :--------- | :--------- | | Turnover | €12.4bn | €10.6bn | | Turnover growth | 17.3% | 1.1% | | Underlying sales growth | 11.8% | 3.9% | | Operating margin | 8.6% | 12.2% | | Underlying operating margin | 10.8% | 13.4% | - Home Care accounts for **21%** of Unilever's total turnover and **14%** of underlying operating profit[179](index=179&type=chunk)[180](index=180&type=chunk) - Fabric Cleaning achieved double-digit growth, Fabric Enhancers grew high single-digit, and Home & Hygiene grew low single-digit, all price-led[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) - Premiumization is a core strategy, with success in India and China through laundry capsules and fragrance beads[192](index=192&type=chunk)[193](index=193&type=chunk) - Digital commerce accounts for **17%** of Home Care sales, particularly strong in China, US, and UK[194](index=194&type=chunk)[195](index=195&type=chunk) - Unilever Professional (UPro) grew **32%** in 2022, doubling turnover in three years, by expanding into professional cleaning markets[196](index=196&type=chunk)[197](index=197&type=chunk) - The 'Clean Future' innovation program drives product superiority and sustainability, including a **€115 million** joint venture with Genomatica for plant-based ingredients[204](index=204&type=chunk)[205](index=205&type=chunk) - Operating profit declined by **17.8%** to **€1.1 billion**, and underlying operating profit declined by **5.2%** to **€1.3 billion**, due to high input cost inflation[206](index=206&type=chunk)[207](index=207&type=chunk) [Nutrition](index=47&type=section&id=Nutrition) The Nutrition Business Group, representing 23% of Unilever's turnover and 25% of underlying operating profit, achieved 8.6% underlying sales growth in 2022. Scratch Cooking Aids delivered mid-single-digit growth, while Dressings and Plant-Based Meat grew high double-digit. The sale of the Tea business transformed the portfolio, allowing focus on high-growth areas. Operating profit increased significantly by 113.7% to €4.5 billion, largely due to the Tea business sale, though underlying operating profit decreased by 3.0% to €2.4 billion due to inflation Nutrition Performance Highlights (2022 vs 2021) | Metric | 2022 Value | 2021 Value | | :------------------------ | :--------- | :--------- | | Turnover | €13.9bn | €13.1bn | | Turnover growth | 6.1% | 4.9% | | Underlying sales growth | 8.6% | 5.5% | | Operating margin | 32.4% | 16.1% | | Underlying operating margin | 17.6% | 19.3% | - Nutrition accounts for **23%** of Unilever's total turnover and **25%** of underlying operating profit[209](index=209&type=chunk)[210](index=210&type=chunk) - Scratch Cooking Aids delivered mid-single-digit growth, Dressings and Plant-Based Meat grew high double-digit[221](index=221&type=chunk) - The Tea business sale to CVC Capital Partners Fund VIII was a major portfolio transformation[223](index=223&type=chunk) - Unilever Nutrition and Ice Cream achieved **€1.2 billion** in sales from plant-based products in 2022, with a revised goal of **€1.5 billion** by 2025[224](index=224&type=chunk)[225](index=225&type=chunk) - Hellmann's and Knorr delivered robust growth, focusing on core ranges and plant-based innovations[226](index=226&type=chunk)[227](index=227&type=chunk)[228](index=228&type=chunk) - Digital commerce accounts for **10%** of Nutrition's sales, with B2B digital commerce being a key driver for Unilever Food Solutions[230](index=230&type=chunk) - Operating profit increased by **113.7%** to **€4.5 billion**, primarily due to a **€2.3 billion** gain from the Tea business sale[232](index=232&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk][239](index=239&type=chunk)[240](index=240&type=chunk) - Underlying operating profit decreased by **3.0%** to **€2.4 billion** due to high inflation[232](index=232&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk][239](index=239&type=chunk)[240](index=240&type=chunk) [Ice Cream](index=53&type=section&id=Ice%20Cream) The Ice Cream Business Group, representing 13% of Unilever's turnover and 9% of underlying operating profit, achieved 9.0% underlying sales growth in 2022. Out-of-home sales saw competitive double-digit growth, while in-home grew mid-single-digit. Digitalization is a key driver, with the ICNOW fast delivery service growing 30% and expanding to over 40 countries. The strategy focuses on premiumization, innovation (e.g., Magnum Remix, vegan products), and simplification. Sustainability efforts include piloting warmer freezer temperatures to reduce GHG emissions and promoting sustainable cocoa sourcing Ice Cream Performance Highlights (2022 vs 2021) | Metric | 2022 Value | 2021 Value | | :------------------------ | :--------- | :--------- | | Turnover | €7.9bn | €6.9bn | | Turnover growth | 14.8% | 3.2% | | Underlying sales growth | 9.0% | 5.7% | | Operating margin | 9.8% | 12.1% | | Underlying operating margin | 11.7% | 13.9% | - Ice Cream accounts for **13%** of Unilever's total turnover and **9%** of underlying operating profit[241](index=241&type=chunk)[242](index=242&type=chunk) - Out-of-home sales achieved competitive double-digit growth, while in-home grew mid-single-digit[251](index=251&type=chunk)[252](index=252&type=chunk) - ICNOW, the fast ice cream delivery service, grew **30%** in 2022 and is now available in over **40** countries[253](index=253&type=chunk)[254](index=254&type=chunk) - Magnum grew double-digit with innovations like Magnum Remix, and Cornetto relaunched in China targeting Gen Z[255](index=255&type=chunk)[256](index=256&type=chunk) - Sustainability initiatives include piloting warmer freezer temperatures (**-12°C** instead of **-18°C**) to reduce energy consumption by up to **30%**, and non-dairy, plant-based ice cream representing **8%** of turnover[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) - Operating profit decreased by **6.8%** to **€776 million**, and underlying operating profit decreased by **3.5%** to **€919 million**, due to extreme inflation in commodities and energy costs[265](index=265&type=chunk)[266](index=266&type=chunk)[267](index=267&type=chunk)[268](index=268&type=chunk) [Our People & Culture](index=59&type=section&id=Our%20People%20%26%20Culture) Unilever's 2022 people agenda focused on embedding the new Compass Organisation to maximize talent and diversity, fostering a high-performance culture. Employee engagement remained high (81% in offices, 84% in factories). New 'Agile' ways of working and Objectives & Key Results (OKRs) were introduced to enhance speed and decision-making. The company is committed to equity, diversity, and inclusion, with 31% senior female representation and a goal of 5% workforce with disabilities by 2025. Initiatives include reskilling employees for future-fit skills, providing flexible employment, and promoting employee health and wellbeing, alongside a strong safety-first culture and a robust Code of Business Principles - The new Compass Organisation aims to make Unilever simpler, faster, more agile, with greater category focus and accountability, leveraging global scale through a 'One Unilever' model[271](index=271&type=chunk)[272](index=272&type=chunk)[279](index=279&type=chunk) - Employee engagement remained high in 2022, with an Engagement Index of **81%** in offices and **84%** in factories[273](index=273&type=chunk)[274](index=274&type=chunk) - New 'Agile' ways of working and Objectives & Key Results (OKRs) are being implemented to drive faster, more impactful decisions[275](index=275&type=chunk)[276](index=276&type=chunk) - The company is fostering a 'human, purposeful and accountable' high-performance culture, linking individual performance to business outcomes[277](index=277&type=chunk)[278](index=278&type=chunk) - Senior female representation reached **31%**, and the company aims for **5%** of its workforce to be people with disabilities by 2025[283](index=283&type=chunk)[284](index=284&type=chunk) - Initiatives include reskilling/upskilling **15%** of employees with future-fit skills, expanding flexible employment practices, and partnering with UNICEF to equip **10 million** young people with work skills by 2030[285](index=285&type=chunk)[286](index=286&type=chunk)[288](index=288&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk)[291](index=291&type=chunk] - Employee wellbeing is a priority, with an **82%** satisfaction score, and programs focusing on psychological safety and physical health ('Healthier U')[292](index=292&type=chunk)[293](index=293&type=chunk) - A strong safety-first culture is maintained, with a Total Recordable Frequency Rate (TRFR) of **0.67** accidents per million hours worked in 2022 (up from **0.55** in 2021)[296](index=296&type=chunk)[297](index=297&type=chunk)[298](index=298&type=chunk][299](index=299&type=chunk)[300](index=300&type=chunk)[301](index=301&type=chunk) - The Code of Business Principles ensures integrity, with **554** confirmed breaches in 2022 leading to **314** employee departures[302](index=302&type=chunk) [Planet & Society](index=65&type=section&id=Planet%20%26%20Society) Unilever's Compass strategy positions sustainability as a commercial driver, with targets across climate action, nature protection, and waste reduction. Progress in 2022 included a 68% reduction in Scope 1 and 2 GHG emissions since 2015, a 13% reduction in virgin plastic use since 2019, and 21% recycled plastic in packaging. The company aims for deforestation-free supply chains by 2023 and to collect/process more plastic than it sells by 2025. Efforts also extend to positive nutrition, reaching 667 million people through health and wellbeing programs, and promoting equity, diversity, and inclusion through advertising and supplier diversity - Unilever's Compass strategy integrates sustainability as a commercial driver, with targets across climate action, nature protection, and waste-free world initiatives[304](index=304&type=chunk)[305](index=305&type=chunk) - Climate action targets include net zero emissions by 2039, halving GHG impact of products by 2030, and zero emissions in operations by 2030[305](index=305&type=chunk)[307](index=307&type=chunk) - Scope 1 and 2 GHG emissions reduced by **68%** since 2015[309](index=309&type=chunk)[310](index=310&type=chunk)[311](index=311&type=chunk) - Nature protection goals include deforestation-free supply chains for key commodities by 2023 and regenerating **1.5 million** hectares of land/oceans by 2030[314](index=314&type=chunk)[315](index=315&type=chunk) - **81%** of key agricultural crops were sustainably sourced in 2022[316](index=316&type=chunk)[317](index=317&type=chunk) - Waste-free world targets aim for **50%** virgin plastic reduction by 2025 (achieved **-13%** by 2022), **25%** recycled plastic by 2025 (achieved **21%** by 2022), and collecting/processing more plastic than sold by 2025 (achieved **58%** by 2022)[318](index=318&type=chunk)[319](index=319&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk)[323](index=323&type=chunk][324](index=324&type=chunk)[325](index=325&type=chunk)[326](index=326&type=chunk][327](index=327&type=chunk)[328](index=328&type=chunk) - Positive nutrition targets include **€1.5 billion** in plant-based sales by 2025 and doubling positive nutrition products by 2025[331](index=331&type=chunk)[332](index=332&type=chunk) - **64%** of products met WHO-aligned nutritional standards in 2022[333](index=333&type=chunk)[334](index=334&type=chunk) - Health and wellbeing programs reached **667 million** people in 2022 through brands like Dove and Lifebuoy[336](index=336&type=chunk)[337](index=337&type=chunk)[338](index=338&type=chunk][339](index=339&type=chunk)[340](index=340&type=chunk) - Equity, diversity, and inclusion efforts include increasing diverse representation in advertising and aiming to spend **€2 billion** annually with diverse businesses by 2025 (achieved **€818 million** in 2022)[342](index=342&type=chunk)[343](index=343&type=chunk)[344](index=344&type=chunk][345](index=345&type=chunk)[346](index=346&type=chunk)[347](index=347&type=chunk][348](index=348&type=chunk)[349](index=349&type=chunk] - The company is committed to ensuring a living wage or income for direct goods/services providers by 2030 and helping **5 million** SMEs grow their businesses by 2025 (reached **1.8 million** in 2022)[350](index=350&type=chunk)[351](index=351&type=chunk)[352](index=352&type=chunk][353](index=353&type=chunk) [Planet & Society: Climate Transition Action Plan](index=75&type=section&id=Planet%20%26%20Society%3A%20Climate%20Transition%20Action%20Plan) This section details Unilever's Climate Transition Action Plan progress, including GHG emission reductions and investments, and its TCFD statement on climate governance, strategy, and risk management [Climate Transition Action Plan Annual Progress Report](index=75&type=section&id=Climate%20Transition%20Action%20Plan%20Annual%20Progress%20Report) Unilever's Climate Transition Action Plan (CTAP) outlines its strategy to achieve net zero GHG emissions by 2039. In 2022, Scope 1 and 2 operational emissions decreased by 13% (68% since 2015), while total value chain emissions per consumer use decreased by 5% (19% since 2010). However, overall GHG emissions (excluding indirect consumer use) increased by 2% due to raw materials and direct consumer use. The company is investing in renewable/recycled ingredients, deforestation-free supply chains, low-carbon dairy, and energy efficiency, supported by a €1 billion Climate & Nature Fund - Unilever's Climate Transition Action Plan (CTAP) aims for net zero GHG emissions across its value chain by 2039[357](index=357&type=chunk)[403](index=403&type=chunk) - Scope 1 and 2 GHG emissions from operations reduced by **13%** in 2022 (**68%** against a 2015 baseline)[359](index=359&type=chunk)[360](index=360&type=chunk) - Full value chain Scope 1, 2 and 3 GHG emissions per consumer use reduced by **5%** in 2022 (**19%** against a 2010 baseline)[361](index=361&type=chunk)[362](index=362&type=chunk) - Overall GHG emissions (excluding indirect consumer use) increased by **2%** in 2022, primarily due to raw materials (**59%** of emissions) and direct consumer use[363](index=363&type=chunk)[364](index=364&type=chunk)[365](index=365&type=chunk)[366](index=366&type=chunk) - Investments include a **€115 million** joint venture with Genomatica for plant-based ingredients and **€59 million** for Unilever Oleochemicals facility upgrades to source deforestation-free palm kernel oil[368](index=368&type=chunk)[369](index=369&type=chunk)[370](index=370&type=chunk)[371](index=371&type=chunk)[372](index=372&type=chunk)[373](index=373&type=chunk][374](index=374&type=chunk)[375](index=375&type=chunk)[376](index=376&type=chunk)[377](index=377&type=chunk)[378](index=378&type=chunk)[379](index=379&type=chunk] - **93%** of electricity was from renewable sources in 2022, up from **86%** in 2021[380](index=380&type=chunk) - Food waste in operations reduced by **17%** against a 2019 baseline[382](index=382&type=chunk)[383](index=383&type=chunk) - Logistics emissions reduced by **7%** versus 2020, and ice cream retail emissions decreased by **5%** due to energy-efficient freezers and grid decarbonization[385](index=385&type=chunk)[386](index=386&type=chunk)[387](index=387&type=chunk)[388](index=388&type=chunk][389](index=389&type=chunk)[390](index=390&type=chunk] - Pilots for 'warming up' ice cream freezers from **-18°C** to **-12°C** showed up to **30%** energy savings[391](index=391&type=chunk)[392](index=392&type=chunk][393](index=393&type=chunk)[394](index=394&type=chunk] - The Climate & Nature Fund has spent and committed over **€200 million** by end of 2022[396](index=396&type=chunk) [Task Force on Climate-related Financial Disclosures Statement](index=89&type=section&id=Task%20Force%20on%20Climate-related%20Financial%20Disclosures%20Statement) Unilever's TCFD statement details its governance, strategy, and risk management related to climate change. The Board and its subcommittees oversee climate risks and opportunities, with remuneration linked to climate goals. Scenario analysis for a 1.5°C warming world identifies regulatory (carbon tax, land use, product composition, EPR), market (energy prices, commodity volatility), and physical (water scarcity, extreme weather) risks, as well as opportunities in plant-based foods and energy transition technologies. Quantitative assessments show potential financial impacts, emphasizing the need for proactive mitigation - Unilever's climate governance structure involves the Board, subcommittees (Corporate Responsibility, Audit, Compensation, Nominating and Corporate Governance), ULE, and specialist teams[424](index=424&type=chunk)[425](index=425&type=chunk)[426](index=426&type=chunk)[427](index=427&type=chunk)[431](index=431&type=chunk)[432](index=432&type=chunk] - Remuneration for management employees, including the ULE, is formally linked to performance against climate change goals via the Sustainability Progress Index (SPI)[429](index=429&type=chunk)[430](index=430&type=chunk) - Climate change is identified as a principal risk, with increased risk levels in 2022 due to slow climate action and increased physical risks[435](index=435&type=chunk)[436](index=436&type=chunk) - Scenario analysis for a **1.5°C** warming world identifies significant regulatory risks (carbon tax, land use, product composition, sourcing transparency, EPR), market risks (energy transition, commodity volatility), and physical environment risks (water scarcity, extreme weather events)[439](index=439&type=chunk)[440](index=440&type=chunk)[441](index=441&type=chunk)[442](index=442&type=chunk][443](index=443&type=chunk)[444](index=444&type=chunk)[445](index=445&type=chunk) - Opportunities include growth in plant-based/lab-grown foods and investment in energy transition technologies[448](index=448&type=chunk) - Quantitative assessments project potential financial impacts on profit, with carbon tax and land use regulations having significant negative impacts, while plant-based foods offer substantial revenue opportunities[450](index=450&type=chunk)[451](index=451&type=chunk)[452](index=452&type=chunk][453](index=453&type=chunk) - The analysis suggests policy interventions and socio-economic trends are the most significant drivers of impact, and proactive transformation is crucial to mitigate risks and seize opportunities[455](index=455&type=chunk) [Our Performance](index=109&type=section&id=Our%20Performance) This section details Unilever's 2022 financial performance, including group and business group results, and non-financial progress across planet health, people's wellbeing, and social inclusion [Financial Performance](index=109&type=section&id=Financial%20Performance) Unilever's financial performance in 2022 was marked by strong turnover growth of 14.5% to €60.1 billion, driven by 9.0% underlying sales growth. Operating profit increased to €10.8 billion, but underlying operating margin decreased to 16.1% due to high input costs. Free cash flow was €5.2 billion, a decrease from the prior year. Diluted EPS rose 29% to €2.99, largely due to the Tea business disposal. The balance sheet shows increased goodwill and intangible assets from acquisitions, and a reduction in net debt to €23.7 billion [Unilever Group Performance](index=109&type=section&id=Unilever%20Group%20Performance) Unilever Group achieved a 14.5% turnover growth and 9.0% underlying sales growth in 2022. Operating margin was 17.9%, while underlying operating margin decreased to 16.1%. Free cash flow stood at €5.2 billion, and diluted EPS was €2.99 Unilever Group Performance (2022 vs 2021) | Metric | 2022 Value | 2021 Value | | :----------------------------------------- | :--------- | :--------- | | Turnover growth | 14.5% | 3.4% | | Underlying sales growth* | 9.0% | 4.5% | | Underlying volume growth* | (2.1)% | 1.6% | | Operating margin | 17.9% | 16.6% | | Underlying operating margin* | 16.1% | 18.4% | | Free cash flow* | €5.2bn | €6.4bn | | Cash flow from operating activities | €10.1bn | €10.3bn | | Net cash flow (used in)/from investing activities | €2.5bn | €(3.2)bn | | Net cash flow (used in)/from financing activities | €(8.9)bn | €(7.1)bn | [Business Group Performance](index=109&type=section&id=Business%20Group%20Performance) All five Business Groups demonstrated turnover growth in 2022, with Home Care leading at 17.3% turnover growth and 11.8% underlying sales growth. Nutrition showed the highest operating margin at 32.4%, significantly impacted by the Tea business disposal. Beauty & Wellbeing and Personal Care also reported strong turnover and underlying sales growth, while Ice Cream maintained 9.0% underlying sales growth despite margin pressures Business Group Performance (2022 vs 2021) | Business Group | Metric | 2022 Value | 2021 Value | | :---------------- | :------------------------ | :--------- | :--------- | | Beauty & Wellbeing | Turnover | €12.3bn | €10.1bn | | | Turnover growth | 20.8% | 11.6% | | | Underlying sales growth | 7.8% | 8.5% | | | Operating margin | 17.6% | 21.1% | | | Underlying operating margin | 18.7% | 22.1% | | Personal Care | Turnover | €13.6bn | €11.7bn | | | Turnover growth | 15.9% | (2.3)% | | | Underlying sales growth | 7.9% | 0.3% | | | Operating margin | 16.6% | 19.9% | | | Underlying operating margin | 19.6% | 21.3% | | Home Care | Turnover | €12.4bn | €10.6bn | | | Turnover growth | 17.3% | 1.1% | | | Underlying sales growth | 11.8% | 3.9% | | | Operating margin | 8.6% | 12.2% | | | Underlying operating margin | 10.8% | 13.4% | | Nutrition | Turnover | €13.9bn | €13.1bn | | | Turnover growth | 6.1% | 4.9% | | | Underlying sales growth | 8.6% | 5.5% | | | Operating margin | 32.4% | 16.1% | | | Underlying operating margin | 17.6% | 19.3% | | Ice Cream | Turnover | €7.9bn | €6.9bn | | | Turnover growth | 14.8% | 3.2% | | | Underlying sales growth | 9.0% | 5.7% | | | Operating margin | 9.8% | 12.1% | | | Underlying operating margin | 11.7% | 13.9% | [Additional Financial Disclosures](index=113&type=section&id=Additional%20Financial%20Disclosures) This section provides detailed financial disclosures, including cash flow, balance sheet, and non-GAAP measures. Cash flow from operating activities decreased slightly due to unfavorable working capital. Net cash flow from investing activities turned positive (€2.5 billion) due to the Tea business sale. Goodwill and intangible assets increased by €1.9 billion, mainly from the Nutrafol acquisition. Net debt decreased to €23.7 billion. The report also defines and reconciles non-GAAP measures like underlying sales growth, operating profit, and free cash flow, which are crucial for understanding business performance - Cash flow from operating activities decreased by **€0.2 billion** to **€10.1 billion**, primarily due to a **€0.4 billion** unfavorable working capital movement (increased inventories)[484](index=484&type=chunk)[485](index=485&type=chunk)[486](index=486&type=chunk) - Net cash flow from investing activities was **€2.5 billion** (vs. **€(3.2) billion** in 2021), driven by **€4.6 billion** from the Tea business sale, partly offset by **€0.8 billion** for Nutrafol acquisition[487](index=487&type=chunk)[489](index=489&type=chunk)[490](index=490&type=chunk)[491](index=491&type=chunk][492](index=492&type=chunk)[493](index=493&type=chunk] - Net cash flow used in financing activities was **€(8.9) billion**, mainly due to higher net repayment of borrowings (**€3.1 billion**), partially offset by reduced share buybacks (**€1.5 billion**)[494](index=494&type=chunk)[502](index=502&type=chunk)[503](index=503&type=chunk] - Goodwill and intangible assets increased by **€1.9 billion** to **€40.5 billion**, driven by the Nutrafol acquisition (**€1.2 billion**) and positive currency impact[506](index=506&type=chunk)[508](index=508&type=chunk] - Net debt decreased to **€23.7 billion** from **€25.0 billion** in 2021[511](index=511&type=chunk)[512](index=512&type=chunk) - Pension assets net of liabilities remained in surplus at **€2.6 billion** (down from **€3.0 billion** in 2021), with both assets and liabilities reducing due to higher interest rates[513](index=513&type=chunk)[516](index=516&type=chunk] - The report defines and reconciles non-GAAP measures such as underlying sales growth, underlying operating profit, free cash flow, and underlying earnings per share, emphasizing their importance for performance analysis[518](index=518&type=chunk)[519](index=519&type=chunk][521](index=521&type=chunk)[522](index=522&type=chunk][524](index=524&type=chunk)[527](index=527&type=chunk][528](index=528&type=chunk)[529](index=529&type=chunk][530](index=530&type=chunk][531](index=531&type=chunk)[532](index=532&type=chunk][534](index=534&type=chunk)[535](index=535&type=chunk] [Non-Financial Performance](index=125&type=section&id=Non-Financial%20Performance) Unilever's non-financial performance in 2022 demonstrates progress across its sustainability targets. The company reduced operational GHG emissions by 68% since 2015 and achieved a 19% reduction in GHG impact per consumer use since 2010. Efforts in waste reduction led to a 13% decrease in virgin plastic use and 21% recycled plastic in packaging. In positive nutrition, 64% of the portfolio met WHO-aligned standards, and plant-based sales reached €1.2 billion. The company also made strides in equity, diversity, and inclusion, spending €818 million with diverse businesses and reskilling 15% of its workforce [Improve the Health of the Planet](index=125&type=section&id=Improve%20the%20Health%20of%20the%20Planet) Unilever made significant progress in improving the health of the planet in 2022. Operational GHG emissions were reduced by 68% since 2015, and the GHG impact of products across the lifecycle decreased by 19% since 2010. The company achieved 81% sustainable sourcing for key agricultural crops and implemented 8 water stewardship programs. Virgin plastic reduction reached 13% (vs. 2019 baseline), recycled plastic in packaging was 21%, and 55% of plastic packaging was reusable, recyclable, or compostable. Additionally, 58% of plastic sold was collected and processed, and food waste in operations decreased by 17% Planet Health Performance (2022 vs 2021) | Metric | Target | 2022 Value | 2021 Value | | :------------------------------------------------------------------ | :--------- | :--------- | :--------- | | Zero GHG emissions in our operations by 2030 (% change since 2015) | -100% | -68% | -64% | | Halve GHG impact of our products by 2030 (% change since 2010) | -50% | -19% | -14% | | Help protect and regenerate 1.5m hectares by 2030 (hectares) | 1.5m | 0.2m | 0.1m | | 100% sustainable sourcing of key agricultural crops (% purchased) | 100% | 81% | 79% | | Implement water stewardship programmes in 100 locations by 2030 | 100 | 8 | - | | 50% virgin plastic reduction by 2025 (% change vs 2019 baseline) | -50% | -13% | -8% | | 25% recycled plastic by 2025 (% of total used in packaging) | 25% | 21% | 18% | | 100% reusable, recyclable or compostable plastic packaging by 2025 | 100% | 55% | 53% | | Collect and process more plastic than we sell by 2025 (% of tonnes) | 100% | 58% | - | | Maintain zero non-hazardous waste to landfill in our factories | 0% | 0% | 0% | | Halve food waste in our operations by 2025 (% change since 2019) | -50% | -17% | -4% | [Improve People's Health, Confidence and Wellbeing](index=127&type=section&id=Improve%20People%27s%20Health%2C%20Confidence%20and%20Wellbeing) In 2022, Unilever continued its commitment to improving people's health, confidence, and wellbeing. The company achieved 48% of servings sold delivering positive nutrition, and 64% of its portfolio met WHO-aligned nutritional standards. Plant-based product sales reached €1.2 billion, contributing to the €1.5 billion target by 2025. Additionally, 94% of packaged ice cream contained less than 250 kcal per serving, and 89% had no more than 22g total sugar per serving. Brand-led programs reached 667 million people, promoting health and wellbeing People Health & Wellbeing Performance (2022 vs 2021) | Metric | Target | 2022 Value | 2021 Value | | :------------------------------------------------------------------ | :--------- | :--------- | :--------- | | Double products delivering positive nutrition by 2025 (% of servings) | 54% | 48% | 41% | | 70% of portfolio to meet WHO-aligned nutritional standards by 2022 | 70% | 64% | 63% | | 95% of packaged ice cream < 22g total sugar per serving by 2025 | 95% | 89% | 89% | | 95% of packaged ice cream < 250 kcal per serving by 2025 | 95% | 94% | 94% | | 85% of Foods portfolio to help reduce salt intake to 5g/day by 2022 | 85% | 82% | 81% | | €1.5bn sales from plant-based products by 2025 | €1.5bn | €1.2bn | - | | Reach 1bn people per year through brands by 2030 | 1bn | 667m | 686m | [Contribute to a Fairer and More Socially Inclusive World](index=127&type=section&id=Contribute%20to%20a%20Fairer%20and%20More%20Socially%20Inclusive%20World) Unilever is actively working towards a fairer and more socially inclusive world. In 2022, the company spent €818 million with diverse businesses, progressing towards its €2 billion target by 2025. It also helped 1.8 million SMEs grow their businesses, aiming for 5 million by 2025. Furthermore, 15% of employees were reskilled or upskilled with future-fit skills, contributing to the 100% target by 2025 Social Inclusion Performance (2022 vs 2021) | Metric | Target | 2022 Value | 2021 Value | | :------------------------------------------------------------------ | :--------- | :--------- | :--------- | | Spend €2bn annually with diverse businesses worldwide by 2025 | €2bn | €818m | €445m | | Help 5m SMEs to grow their business by 2025 (number of SMEs) | 5m | 1.8m | 1.2m | | Reskill or upskill our employees with future-fit skills by 2025 (% of employees) | 100% | 15% | 7% | [Additional Non-Financial Disclosures](index=129&type=section&id=Additional%20Non-Financial%20Disclosures) This section details Unilever's compliance with mandatory reporting requirements, including Section 172 of the UK Companies Act 2006, Streamlined Energy and Carbon Reporting (SECR), and EU Taxonomy disclosures. It highlights engagement with key stakeholders (shareholders, employees, consumers, customers, suppliers, planet & society) and provides workforce diversity statistics. The SECR shows UK energy use and GHG emissions, while EU Taxonomy disclosures indicate that none of Unilever's turnover or operating expenditure is currently classified as 'aligned,' though 17.7% of capital expenditure is 'eligible' but not yet aligned - Unilever's Section 172 statement outlines engagement with six key stakeholder groups: shareholders, our people, consumers, customers, suppliers & business partners, and planet & society[548](index=548&type=chunk) Workforce Gender Diversity (as at 31 December 2022) | Work Level | Female | Male | Unspecified | | :-------------------------- | :----- | :--- | :---------- | | Board | 38% | 62% | 0% | | Unilever Leadership Executive | 23% | 77% | 0% | | Senior management | 31% | 69% | 0% | | Management | 54% | 46% | 0.1% | | Total workforce | 36% | 64% | 0.06% | UK Operations Energy Use (2022 vs 2021) | Energy Source (kWh) | 2022 Value | 2021 Value | | :------------------ | :------------ | :------------ | | Biogas | 13,520,000 | 10,025,000 | | Natural gas | 242,688,000 | 226,110,000 | | LPG | 937,000 | 1,411,000 | | Electricity | 107,309,000 | 171,897,000 | | Heat and steam | 255,480,000 | 192,738,000 | | Total UK energy | 362,788,000 | 364,635,000 | | Total UK Scope 1 emissions (tonnes CO2) | 39,545 | 45,740 | | Total UK Scope 2 emissions (tonnes CO2) | 0 | 0 | - None of Unilever's 2022 turnover or operating expenditure is classified as 'eligible' or 'aligned' under the current EU Taxonomy[569](index=569&type=chunk)[570](index=570&type=chunk)[571](index=571&type=chunk)[572](index=572&type=chunk] - **17.7%** of Unilever's 2022 capital expenditure is classified as EU Taxonomy-eligible, but none is yet classified as 'aligned' due to insufficient detailed documentation[569](index=569&type=chunk)[570](index=570&type=chunk)[571](index=571&type=chunk)[572](index=572&type=chunk] [Our Principal Risks](index=139&type=section&id=Our%20Principal%20Risks) This section outlines Unilever's risk management approach, identifies principal risk factors (including increased economic, political, and climate risks), and presents the Directors' viability statement [Our Risk Appetite and Approach to Risk Management](index=139&type=section&id=Our%20Risk%20Appetite%20and%20Approach%20to%20Risk%20Management) Unilever's risk management is integral to its strategy, aiming for consistent, competitive, profitable, and responsible growth. The Board holds overall accountability for risk management, supported by a clear organizational structure and well-defined accountabilities across Business Groups and countries. The approach is embedded in daily operations, guided by the Code of Business Principles, and includes continuous assessment of short-term, long-term, and emerging risks, with assurance provided by Corporate Audit - Risk management is integral to Unilever's strategy, aiming for consistent, competitive, profitable, and responsible growth[573](index=573&type=chunk)[585](index=585&type=chunk) - The Board has overall accountability for risk management, with clear accountabilities across Business Groups and countries[575](index=575&type=chunk)[576](index=576&type=chunk)[577](index=577&type=chunk)[578](index=578&type=chunk] - Unilever's approach is embedded in operations, guided by the Code of Business Principles, and supported by a network of Business Integrity Officers[579](index=579&type=chunk)[580](index=580&type=chunk)[581](index=581&type=chunk)[582](index=582&type=chunk] - Risk assessment considers short-term and long-term risks, including emerging areas, reviewed at least annually by senior management and the Board[583](index=583&type=chunk) - Corporate Audit provides objective and independent review of risk management and internal control effectiveness[584](index=584&type=chunk) [Principal Risk Factors](index=141&type=section&id=Principal%20Risk%20Factors) Unilever identifies several principal risks that could impact its business, with increased levels of risk noted for economic and political instability, business transformation, and climate change in 2022. Other key risks include brand preference, portfolio management, plastic packaging, customer relationships, talent retention, business operations (supply chain, raw material costs), product quality and safety, IT systems and information security, treasury and tax, ethical standards, and legal and regulatory compliance. Emerging risks include biodiversity loss and the failure to keep pace with AI advancements - Three principal risks saw an increased level in 2022: Economic and political instability (due to geopolitical tensions, supply chain pressures, inflation, Russia-Ukraine war), Business transformation (Compass reorganisation, core process transformation), and Climate change (slow action, increased physical risks, global energy crisis)[589](index=589&type=chunk)[591](index=591&type=chunk] Principal Risk Factors and Level of Risk (2022) | Risk Factor | Level of Risk | | :------------------------------ | :------------ | | Brand preference | No change | | Portfolio management | No change | | Climate change | Increase | | Plastic packaging | No change | | Customer | No change | | Talent | No change | | Business Operations | No change | | Safe and high-quality products | No change | | Systems and information | No change | | Business Transformation | Increase | | Economic and political instability | Increase | | Treasury and Tax

PAULA'S 05 Super B Eye Cream DIRT IS GOOD > deep moisture nourishes the driest skin nourrit la peau la plus sèche 24hr Renewing Moisture Delivering sustainable business performance Unilever Annual Report and Accounts 2022 Never In this report Strategic Report About Unilever Review of the Year 10 Group Financial Review 27 Our People & Culture 30 Planet & Society Governance Report Running a responsible and effective business Online You can find more information about Unilever online at www.unilever.com For mo ...