Unilever(UK)(UL)2024-03-13 16:00Financial Performance - In 2023, Unilever experienced net material inflation of approximately €1.8 billion, which was mitigated through increased productivity and product pricing strategies [1744]. - The dividend per share for 2023 was £1.48, consistent with the previous year, while the US Registry dividend was 5,274,810 from Deutsche Bank for processing cash distributions and other reimbursements in fiscal year 2023 [1791]. - No material defaults or delinquencies were reported regarding the payment of principal or dividends for the Group [1792][1793]. - As of December 31, 2023, Unilever had US10.75 billion in 2022 and a decrease from US$12.1 billion in 2021 [5]. - The coupon rates for the outstanding Notes range from 0.626% to 5.900%, with repayment scheduled between March 7, 2024, and August 12, 2051 [5]. Research and Development - The company invested around €900 million in R&D annually over the last three years, focusing on innovation and sustainability [1738]. - Unilever holds over 20,000 patents and has more than 100 patents related to microbiome research, leading to new product innovations [1738][1740]. - Unilever's innovation strategy includes the use of digital and automated technology in its innovation centers, enhancing efficiency and speed to market [1739]. - The company is committed to sustainability goals, focusing on renewable materials and reducing plastic pollution through R&D efforts [1741]. Employee Relations - The average number of employees in 2023 included 129 seasonal workers, reflecting a stable relationship with labor unions [1716]. - Unilever's global employee share plan 'SHARES' allows employees to invest between €10 and €200 per month, with 331,195 shares outstanding as of February 2024 [1717]. - The company operates multiple share plans in North America, governed by the Unilever North America Omnibus Equity Compensation Plan, amended in November 2022 [1718]. Cybersecurity - Unilever's internal Cyber Security function is supported by a global team and external partners, ensuring alignment with cybersecurity industry best practices [1751]. - The Audit Committee has maintained a regular focus on cybersecurity risk oversight in 2023, with quarterly briefings provided by management [1752]. - Cybersecurity risk management is a principal risk for Unilever, with the Chief Financial Officer and Chief Business Operations Officer responsible for oversight [1754]. - Unilever has established a Cyber Security Risk Management Framework aligned with industry-standard methodologies, promoting a culture of cybersecurity awareness [1762]. - The Cyber Security Assurance team conducts independent evaluations of the risk posture of key systems and operations, influencing continuous improvement initiatives [1762]. - Unilever's cybersecurity controls and risk posture are regularly reviewed, with established incident response procedures in place to minimize business impact from potential cyber incidents [1762]. Shareholder Information - Approximately 40% of Unilever's ordinary shares were held in the United States in 2023, with 1,878 registered holders of American Depositary Receipts [1726]. - In 2023, PLC purchased a total of 31,734,256 ordinary shares or ADSs, with an average price paid per share ranging from £39.69 to £43.28 throughout the year [1800]. - The maximum number of shares that may yet be purchased under announced plans or programs reached 31,734,256 by the end of 2023 [1800]. - PLC's Articles of Association modifications require approval by a general meeting of shareholders, with specific thresholds for affected classes [1798][1799]. - The company has only fully paid shares in issue, with no outstanding ordinary shares eligible for redemption [1796]. - The company has not conducted any share repurchases between December 31, 2023, and February 22, 2024 [1800]. - The company is subject to US backup withholding and information reporting requirements for payments made to US holders of ordinary shares or ADSs [1785]. Operational Efficiency - The company has no plans for significant expansion or construction of new facilities, indicating a focus on optimizing existing operations [1750]. - Unilever's existing facilities are deemed satisfactory for current business needs, with no material environmental issues affecting properties [1750]. - Management assessed the effectiveness of internal control over financial reporting as of December 31, 2023, concluding it was effective, excluding two recently acquired entities that constituted 1.09% of total assets [1802]. - Audit fees for KPMG LLP in 2023 amounted to €23 million, consistent with the previous year [1803]. - The total fees paid for services in 2022 and 2021 were each less than €1 million, consistent with 2021 [4].