Annual Report 2011
Living the Compass, Igniting the Passion
Unilever Caribbean Limited Annual Report 2011
Winning by
living the Compass
Two years ago, Unilever introduced “The
Compass”, a new vision and strategy for the
company, a business model that is designed
to deliver sustainable growth. In 2011,
Unilever fully accepted the challenge to live
“The Compass” and continued to develop
products that enable people to live well in a
resource-stressed world, and encourage
behaviour and habits that help them to live
sustainably. These efforts will continue on a
larger scale in 2012 and beyond.
Financial Highlights 2011
FINANCIAL HIGHLIGHTS 2011
YEAR ENDED 31 DECEMBER 2011
Outstanding growth and prudent management
RESULTS ($’000)
TURNOVER 2011
PROFIT BEFORE TAX 2011
PROFIT FOR THE YEAR 2011
DIVIDENDS 2011
$ 527,355 $ 77,606
$ 59,246
$ 40,416
2010: $ 495,150
2010: $ 51,652
2010: $ 34,642
6.5%
2010: $ 69,672
11.4 %
14.7 %
16.7 %
PER SHARE
EARNINGS 2011
DIVIDENDS - INTERIM 2011
DIVIDENDS - FINAL 2011
DIVIDENDS - TOTAL 2011
$ 2.26
$ 0.32
$ 1.22
$ 1.54
2010: $ 1.97
14.7%
2010: $ 0.32
0%
2010: $ 1.00
22 %
2010: $ 1.32
16.7 %
KEY INDICATORS
OPERATING PROFIT AS %
OF TURNOVER 2011
NET PROFIT AS % OF
TURNOVER 2011
14.8 %
11.2 %
2010: 14.2%
2010: 10.4%
Unilever Caribbean Limited • Annual Report 2011
1
Our Mission
We work to create a better future
everyday
We help people feel good, look good and get
more out of life with brands and services
that are good for them and good for others.
We will inspire people to take small everyday
actions that can add up to a big difference for
the world.
We will develop new ways of doing business
with the aim of doubling the size of our company while reducing our environmental
impact.
Contents
Financial highlights 2011
1
Financial Statements
Our mission
2
Independent Auditor’s Report
25
Chairman’s Review
3
Income Statement
26
Managing Director’s Report
4
Statement of Comprehensive Income 27
Directors’ Report
7
Statement of Financial Position 28
Board of Directors
8
Statement of Changes in Equity 29
Management Committee
9
Statement of Cash Flows 30
Notes to the Financial Statements 31
Management Proxy Circular
56
Notice of Annual General Meeting
57
Proxy Form
59
Biographies 10
Winning through continuous
customer service excellence
12
Winning with brands and innovation
13
Winning through community outreach
18
Winning with our people
22
Winning through continuous improvement
24
2
Unilever Caribbean Limited • Annual Report 2011
Chairman’s Review
CHAIRMAN’S REVIEW
costs, to zero. This is indeed a
remarkable achievement, given
that as recently as three years ago
annual finance costs were in the
region of $3.5 million.
Dividends
The Board of Directors has
declared a final dividend of $1.22
per share, bringing the Total Dividend for the year to $1.54 per share
(2010: $1.32 per share). This represents a dividend payout of 68.2%,
which is in accordance with the
Company’s stated dividend policy.
Once more the underlying
strength and resilience of the
Company, its people and its
brands have resulted in a very
successful year, in often trying
and uncertain regional economic
conditions.
Overview
Largely as a result of a much
improved performance in the
second half of the year, the Company delivered significant growth
in both sales and profitability in the
full year 2011. Total Turnover
increased by 6.5% over the previous year, to a record $527 million.
While margins were again eroded
by the combinations of increased
input and production costs coupled with heightened competition
in the market, this effect was offset
by savings achieved in selling, distribution and administration costs,
such that the Profit after Tax at
$59.2 million was 14.7% above that
achieved in 2010.
With respect to the Company’s
borrowings, I am very pleased to
report that Unilever Caribbean
Limited during 2011 fully met the
challenge made of reducing its
debt, and hence its net finance
It is interesting to note that if the
dividend of $1.54 is added to the
appreciation of the share value
during the year of $9.98, an investment in a UCL share at the beginning of the year would have resulted
in an effective return of over 51%
for the year.
Outlook
The long-running debate regarding the continued viability of manufacturing at our Champs Fleurs
facility is continuing. It would now
appear, however, that once any
further increases in the cost of
manufacturing locally can be curtailed, and efficiencies even further
improved, the outlook for the future
of the factory is one of cautious
optimism. Of particular importance is the need for a substantial
reduction in the current very high
storage and warehousing costs.
With respect to market conditions,
the expectation both locally and
across the region is for a slow return
to growth. I am confident that
the Company, having successfully
weathered the worst of the downturn, is well placed to respond to
any improvements in the regional
market place, despite rising
costs and an anticipated continuing squeeze on margins.
Unilever Caribbean Limited • Annual Report 2011
Board Changes
During the year Mr. Pablo Garrido,
formerly Managing Director of the
Company over the years 2002–
2007, resigned from the Board, in
order to devote his attention to his
role as Chairman of the Caribbean
Region. He was replaced by Mr.
Melvin Hernandez, regional Supply
Chain Director, who is based at
Unilever’s Caribbean head office in
Puerto Rico.
I would like to express my sincere
thanks to Pablo for the enormous
contribution he has made to UCL
over the past ten years, first as
Managing Director and then as
Board Member, and we look forward to his continuing support in
his Regional role. At the same time,
I would like to welcome Melvin to
our Board.
Acknowledgement
The dedicated, professional and
hard-working team at Unilever
Caribbean has once more delivered the goods—another fine year
of solid growth.
On behalf of the Board, who continue to provide invaluable counsel
and guidance, I would like to thank
every single member of Team Unilever for a job well done in 2011.
The combination of the support
and guidance we receive from our
principal, and the vigour and enthusiasm of our local team together
ensure the continued success of
this fine Company.
Gary N. Voss
Chairman
3
Managing Director’s Report
Managing Director’S REport
Despite difficult market conditions and the
continued economic downturn we faced in 2011,
Unilever Caribbean Limited delivered a strong
performance achieving further progress against
our Compass strategy.
In 2011, Unilever Caribbean Limited delivered a
record TT$527 million in turnover, an increase of
6.5% over 2010 and profit before tax of TT$77.6
million, 11.4% higher than the previous year. This
was a tremendous achievement, largely due to our
continuing focus on the Compass – the Unilever
strategic tool that guides our strategy and direction which was launched in 2010.
TURNOVER (TT$000)
600,000
500,000
400,000
416,390
461,934
487,153 495,150
527,355
Passion and Execution Go Hand in Hand
300,000
200,000
100,000
-
2007
2008
2009
2010
2011
PROFIT BEFORE TAXATION (TT$'000)
90,000
80,000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
-
4
69,672
51,521
50,081
2007
2008
77,606
55,314
2009
2010
Over the last five years we have delivered for our
shareholders compounded annual sales growth at
6% and increased profit before tax by 51% from
TT$51.5 million to TT$77.6 million. This result was
achieved through Unilever’s diversified portfolio of
brands. We have invested heavily in our key Personal Care mixes and placed greater emphasis on
improving our efficiencies in the selling and distribution areas. Over the last five years, we have also
seen significant increases in commodity costs
coupled with decreasing efficiency levels and
increasing plant costs at Champs Fleurs. In the
coming year, we will aim to make the plants more
efficient as manufactured goods still represent
64% of our turnover.
2011
In 2011, we remained guided by our mission to help
people feel good, look good and get more out of
life with brands and services that are good for
them and good for others. This mission not only
demanded that we focus on profitable volume
growth but it also challenged us to achieve this
growth while reducing our environmental impact
and making a difference in the lives of those
we touch.
We saw growth across all key categories, with
Personal Care performing well in new segments.
The successful launch of Dove Men tapped into the
developing male grooming market and expanded
it. The Dove range, in particular the body washes,
continued to perform very well, while Axe continued to deliver its strong innovation plan with the
launch of the Axe Excite range. The Degree range
Unilever Caribbean Limited • Annual Report 2011
Managing Director’s Report
for men and women also had a good performance
finishing strong in 2011.
Our Home Care brands held their own against the
influx of competition from new, third tier and private label brands. Exciting consumer promotions
engaged shoppers and reinforced the positioning
for Breeze and Radiante as powerful, concentrated, quality products that clean effectively and
use less water and energy. The message is that
these products are not just good for the household; they are also good for the environment. This
is core to the Unilever Sustainable Living Plan – a
key part of our Compass.
We also saw a steady performance from our Foods
brands, particularly margarines and teas. The
introduction of Knorr sides and sauces was well
received and has opened a new segment for us to
continue helping mothers to get more out of life
with healthy, economical and convenient meals for
their families.
Price increases were implemented in 2011 due to
high volatility in raw material and packaging costs
and continuing cost increases in our plants. We
are conscious of the need to become a more efficient and safer production site within Unilever and
the site at Champs Fleurs is continually under
assessment. While we were able to minimise most
of the impact of the increased costs through tighter
control of our spending, we were unable to continue doing so toward the end of the year and this
saw our gross margins slip from 39% in 2010 to
37% in 2011.
As you can see, our team has been busy. Over
the past year we:
•touched consumers’ hearts by activating promotions that connected with them in meaningful
ways. Our leading margarine brand, Blue Band,
continued to help mothers innovate at mealtime
by partnering with popular local chef Wendy
Rahamut.
•we held several training sessions throughout
the year with our promotional team to boost our
visibility on the trade.
•ensured our communication material on the
trade highlighted the benefits of our brands. This
was exceptionally done with our personal care
brands.
Unilever Caribbean Limited • Annual Report 2011
• met regularly with the retail trade, supermarket
owners and distributors in Trinidad and export
markets to discuss the benefits of our partnership. While we have always worked closely with
our customers and distributors, 2011 was a landmark year for us when Unilever Caribbean Limited was named Large Distributor of the Year by
the Supermarkets Association of Trinidad and
Tobago. Receiving recognition from those we
serve is an honour we hold dear.
• worked with our export teams to grow our markets in South Caribbean. Our export markets
represent 41% of our turnover, so without their
success, we would not be able to deliver our
growth ambition. Market visits were therefore
increased in 2011 and we hosted training sessions for new distributor teams. Our export markets performed reasonably well in 2011 despite
tough economic circumstances and sharp
increases in shipping costs. The outlook for 2012
is a slow return to economic growth and we
look forward to a strong performance in our
export markets.
Passion for our Communities
Making a difference in our communities is an
important part of our corporate DNA. Our commitment to promoting healthy lifestyles saw us hosting Global Handwashing Day for the fourth consecutive year. With the support of the Ministry of
Education, we visited several primary schools to
teach thousands of children proper hygiene and
the importance of washing their hands with soap.
We continued our work in our fence line community of Mt. D’Or. In 2011, we donated books and
musical instruments to the Mt. D’Or Government
Primary School. We also continued to work with
United Way and we provided many families with
hampers and supplies following disasters
and crisis situations both in Trinidad and Tobago
and overseas.
Passion for our People
We continue striving to be an employer of choice in
Trinidad and Tobago. Our Employee Engagement
Survey, in which we asked employees to give their
views on the organisation, revealed improved
scores. We are aspiring to be world class, and to
5
Managing Director’s Report
Managing Director’s Report (continued)
Our industrial relations climate remains stable
despite the settlement for a new wage agreement
for the period September 2010 – September 2013
being long and protracted. After 22 meetings, both
bilaterally and at the Ministry of Labour, the matter
is before the Industrial Court, and we await the
first court hearing and hope for a speedy resolution.
Health and Safety
Safety Health Environment Quality (SHEQ) is critical to our operations and a key business priority.
We had no Loss Time Accidents in 2011, a record
we have kept for the past decade. We have rolled
out plans for a behaviour based Safety model that
challenges employees to take responsibility for
their own safety and to point out the unsafe practices of their colleagues.
Looking Ahead
2011 was a strong year for Unilever Caribbean
Limited, in an unfavourable climate. Your share
price performed very well in 2011 and over the
five- year period has appreciated by 86%. Additionally, your dividends and earnings per share
increased significantly and we are proud of the
results that we delivered to you.
SHARE PRICE TT$
35
32.53
30
25
20
22.55
19.98
17.49
16.75
15
10
5
0
2007
2008
2009
2010
2011
EARNINGS & DIVIDENDS PER SHARE
250
200
cents
do this we have a continuous training and development agenda that covers all aspects of the business, from technical to general skills training to
leadership training.
150
100
50
0
2007
2008
2009
E.P.S.
2010
2011
D.P.S.
We could not have achieved this without the people
who make up Unilever Caribbean Limited, the
managers and employees, the full time and shift
workers, and all the regional Unilever executive
teams. It takes every part of the Unilever family to
complete the whole. With this in mind, I extend my
heartfelt thanks to the directors and the management committee for their leadership and unstinting efforts in keeping us all focused on our goals.
Congratulations to all employees for staying the
course and helping us deliver on our targets.
Your drive and dedication is the fuel that we
need to be the execution powerhouse of Unilever
Caribbean Limited.
Roxane E. de Freitas
Managing Director
6
Unilever Caribbean Limited • Annual Report 2011
Directors’ Report
DIRECTORS’ REPORT
Financial Results for the year ended 31 December 2011
Dividends
The Directors have declared dividends of $40,415,501 for the year,
amounting to $1.54 per share. The
final dividend of $1.22 per share will
be paid on 25 June 2012 to all Shareholders whose names appear on the
Register of Members at the close of
business on Monday 4 June 2012.
Changes to the Board
On 19 May 2011, after serving 9 years
on the Board, Mr. Pablo Garrido
resigned as a Director. We take this
opportunity to publicly thank
Mr. Garrido for his steady guidance of
the Company during his five years as
Managing Director, and his continued
contributions to the Board until the
time of his resignation. His vacancy
was filled by the appointment of
Mr. Melvin Hernandez on 19 May 2011.
Mr. Hernandez is presently the Supply
Chain Director of the Greater Caribbean Region of Unilever.
Directors
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, Mr. Melvin Hernandez, being eligible, offers himself for
election until the close of the next
third Annual Meeting.
In accordance with Section 4.4.1 of
the Company Bye Laws, whereby
Directors shall retire in rotation, Mr.
Seamus Clarke retires, and being eligible, offers himself for re-election.
At this Annual Meeting, shareholders
will be asked to approve an increase
in Directors’ fees.
Auditors
The Auditors, PricewaterhouseCoopers, will retire at the Eighty Third
Annual General Meeting and being
eligible, offer themselves for reappointment.
Turnover
$’000
527,355
Profit before taxation
77,606
Taxation
(18,360)
Profit after taxation
59,246
Dividends paid
Final dividend for 2010
Interim dividend for 2011
(26,244)
( 8,398)
Profit retained for the year
24,604
Retained earnings brought forward
103,252
Retained earnings carried forward
127,856
Directors’ and Substantial Interests
Directors’ Interest Number of shares
as at 31.03.12
Gary N. Voss
3,196
Roxane E. de Freitas
1,000
Seamus Clarke
0
Melvin Hernandez
0
Jacqueline Quamina
0
Livio Vicco
0
Ricardo Williams
0
Number of shares
as at 31.12.11
3,196
1,000
0
0
0
0
0
Substantial Interest
In accordance with the Listing Agreement of the Trinidad and
Tobago Stock Exchange, the following are the holders of 5% or
more shares as at 31 December 2011:
Number
%
of Shares Held of Total
Unilever Overseas Holdings AG
13,123,194
RBC Trust Limited – All accounts 4,316,188
50.01
16.45
Capital and Membership
Grouping of shares according to size of shareholding as at
31 December 2011:
Size of Shareholding
Number of
Size of
% of Total
Shareholders Shareholding Shareholding
1 - 10,000
2,097
10,001 - 20,000
60
20,001 - 50,000
31
50,001 - 100,000
9
100,001 - 500,000
19
500,001 and upwards
7
Total
2,223
2,050,555
843,947
956,566
560,166
3,412,101
18,420,497
26,243,832
7.81
3.22
3.64
2.13
13.00
70.19
100.00
On behalf of the Board,
Director
Unilever Caribbean Limited • Annual Report 2011
Director
7
Leadership Team
Our Leadership Team
Board of Directors
1
2
3
4
5
6
7
1Gary N. Voss
Chairman
2 Roxane E. de Freitas 3 Seamus Clarke
Non-Executive
Managing Director
Director
Chairman Audit
4 Melvin Hernandez
Non-Executive
Director
5 Jacqueline Quamina 6Livio Vicco
Non-Executive
Non-Executive
Director .
Director
7 Ricardo Williams
Finance Director/
Corporate Secretary
Engaging with the business
Our Board members bring to Unilever Caribbean Limited a wealth of experience
in various fields related to our manufacturing and distribution business.
Together with the management team, they acknowledge the contribution that
Unilever’s employees have made in order to achieve the 2011 results, and
thank the Company’s customers for their loyalty to our products.
8
Unilever Caribbean Limited • Annual Report 2011
Leadership Team
Management Committee
1
2
3
4
5
6
1 Roxane E. de Freitas
Managing Director
2 Zaida Allie
Inbound,
Sales & Operational Planning Manager
4 Glen Rogers
Customer Marketing
Manager
Ronnie Sankar
5
6 Ricardo Williams
Logistics, Distribution Finance Director
& Customer Service
Manager
Unilever Caribbean Limited • Annual Report 2011
3 Donald Niamath
Supply Leader
9
Biographies
Biographies
GARY N. VOSS
Non-Executive Chairman
Nationality: 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.
ROXANE E. DE FREITAS
Managing Director
Nationality: Trinidadian
B.A., Joined Unilever in 1985 as
Brand Manager, Industrial Food
and Detergents, rejoined in 2001
in the post of Marketing Manager
Personal Care Caribbean, 2004
appointed Customer Development
Director, and member of the Management Committee, appointed
Company Secretary to the Board
of Directors Unilever Caribbean
2006, appointed Managing Director 2007.
SEAMUS CLARKE
Non-Executive Director
Chairman Audit
Nationality: Trinidadian
Chartered Accountant (FCCA, CA,
BSc) in private practice in areas of
Financial and Business Consulting.
10
Unilever Caribbean Limited • Annual Report 2011
Biographies
MELVIN HERNANDEZ
Supply Chain Director, Greater
Caribbean
Nationality: Puerto Rican
B.Sc, M.Sc. Joined Unilever Las
Piedras, Puerto Rico in 2003 as
Manufacturing Manager. In 2005
was appointed Supply Leader/
General Manager of Unilever
Las Piedras and in 2009 was
appointed Supply Chain Director,
Unilever Greater Caribbean.
JACQUELINE QUAMINA
Non-Executive Director
Nationality: Trinidadian
Attorney at Law (LLB, MA, MBA).
Experienced in areas of Banking,
Finance and Corporate Law in the
Caribbean.
LIVIO VICCO
Finance Director of Unilever
Greater Caribbean
Nationality: Argentinean
MSc., Joined Unilever Argentina in
1996 as a Management Trainee.
Held posts of Accountant in various categories. Held post at Unilever Netherlands from 2008 until
appointed
Finance
Director
Greater Caribbean in 2010.
Appointed Company Vice President and Treasurer (Unilever de
Puerto Rico) in 2010.
RICARDO WILLIAMS
Finance Director of Unilever
Caribbean Limited
Nationality: Trinidadian
Chartered Accountant (FCCA).
Joined Unilever in 2009 as Finance
Director. Experienced in areas of
Auditing, Taxation, Legal and
Accounting. Appointed Company
Secretary on 1 January 2011.
Unilever Caribbean Limited • Annual Report 2011
11
The Year in Review
Winning through
continuous customer
service excellence
Winner of Large Distributor of the Year Award
Unilever Caribbean Limited copped the
prestigious Large Distributor of the Year
Award from the Supermarket Association
of Trinidad and Tobago at their 2011 Annual
Awards at the Centre of Excellence,
Macoya.
Members of the Supermarket Association
voted based on each company’s customer
service, support and profitable growth
within the supermarket channels.
The membership of the Association stands
at over two hundred members ranging from
small to very large supermarkets located
across the country.
Regional Awards
(L-R) Kurt Hettgen, Export Sales Manager and Rachel Holder,
National Sales Manager, receive the award from Deochand Vernon Persad,
President of the Supermarket Association.
Members of the Unilever Caribbean Limited senior management team receive their award for Best Overall Performance in
2011 at the Greater Caribbean Awards.
The Unilever Greater Caribbean
Leadership team recognises outstanding performances across the
region at the start of every year at
its annual senior management
meeting. Traditionally, Unilever
Caribbean Limited has been a
strong performer and 2011 was no
different with the company copping awards for Best Overall Performance and Best Customer
Service Results, Best Case Fill and
Customer Case Fill on Time.
12
Unilever Caribbean Limited also copped the award for Best Customer Service
Results in 2011, Best Case Fill and Customer Case Fill on Time at the Greater
Caribbean awards.
Unilever Caribbean Limited • Annual Report 2011
The Year in Review
Winning with
brands and innovation
DARE TO WIN WITH DEGREE
In 2011, the Degree team undertook an intense
sampling programme, distributing thousands of
samples at many locations throughout the country.
The programme centred around Degree for Women:
Motion Sense Range and Degree for Men: Adrenaline Series. The team focused on sporting events to
reinforce Degree Antiperspirant/Deodorant’s fast
response to adrenaline increases and protection.
For the second consecutive year, Degree sponsored
the Madonna Wheelers Cycling Club. Degree, a
brand that embraces confidence and resilience,
was the perfect fit for the series of cycling events.
The Degree Madonna Wheelers has a team of
cyclists representing the club in almost every category from ages 6 to Veterans age 60 and over.
Unilever Caribbean Limited • Annual Report 2011
Axe brings excitement to
the caribbean
Axe reigns as the #1 male body spray in the Caribbean, cementing Unilever’s global leadership in the
male grooming segment alongside brands such as
Degree, Dove Men and Rexona. In 2011, Axe launched
one of its most successful innovations: Axe Excite.
This Axe range includes body sprays, shower gels,
antiperspirant roll-ons and sticks.
The innovative Axe Angels campaign was launched
to promote Axe excite. The campaign included a mix
of traditional media—radio, television and cinema—
as well as expansion into new media with the Axe
T&T Facebook page. In retail stores, eye-catching on
and off shelf displays brought the news of Axe Excite.
With the simultaneous launch of the 2011 Carnival
season in Trinidad, Unilever did many consumersampling activities at several popular Carnival
events. Promotions were also executed in our export
markets.
13
The Year in Review
New Breeze
packaging and
the shopping
spree is back!
After a few years out of the
spotlight, the Breeze shopping
spree was re-launched in 2011.
This activation rewarded Breeze
consumers by giving them the
opportunity to win big prizes
through several shopping spree
events across Trinidad and the
export markets. The promotion
generated a lot of buzz across
the channel, capturing the
attention of consumers and
acceptance and recognition from
customers.
The success of this promotion in
2011 will bring a larger and wider
scope for Breeze!
Also in 2011, Breeze was
re-launched in the Southern
Caribbean and Jamaica, aligning
our packaging globally.
Breeze, the number one trusted name in
laundry cleaning in Trinidad and Tobago and
the Southern Caribbean, forges ahead in 2012
by embracing the Unilever strategy to unify our
brands globally.
14
Unilever Caribbean Limited • Annual Report 2011
The Year in Review
Winning with
brands and innovation
Lux gives women
confidence with
soft, beautiful
skin
Lux is the only skin-cleansing
brand with texturised cream, a
soft emulsion that has a texture
and feel similar to our natural
skin. This helps protect the skin,
keeping it soft and beautiful.
In 2011, we refreshed our packaging and fragrances making them
more vibrant and attractive to our
consumers, and further delighted
their senses with the launch of
two new bars: Blackberry Desire
and Pear Temptation.
With our new portfolio, Lux maintains its role as a beauty bar and
invites women throughout the
Caribbean to indulge in their
beauty.
Suave gives you beautiful hair without the salon cost
In 2011, we worked to build our
Suave Hair franchise by offering
three new exciting variants to consumers, while fulfilling our brand
promise of working as well as
salon brands. Both Almond & Shea
Butter and Aloe Vera & Ginseng
appeal to the consumer who is
looking for products with more
natural ingredients, while the new
Captivating Curls shampoo and
conditioner are designed specifically for consumers with curly or
wavy hair. Additionally, the entire
Suave Professionals line underwent an image rebrand, with a
new, more professional look that
stands out on the shelf. We brought
awareness to these innovations
through in-store visibility efforts,
complemented by in-store promotions at key retailers designed to
encourage the purchase of our
products.
New Dove Nourishing Oil Care
Our Dove range of shampoos and conditioners offers superior care for damaged
hair. In 2011 we introduced the Nourishing Oil Care variant, a welcome solution to
women suffering from dry, rough, frizzy hair. Formulated with Dove’s Weightless
Nutri-Oil Technology, the product is rapidly absorbed into the hair, deeply nourishing dry hair by replenishing essential minerals to restore smoothness, softness
and shine.
Unilever Caribbean Limited • Annual Report 2011
15
The Year in Review
Winning with
brands and innovation
Support for Heart Month
To mark Heart Health Month, Unilever Caribbean Limited presented a donation to the Trinidad and Tobago
Heart Foundation (TTHF). For every 445g tub of Flora margarine purchased in June, the company donated 25
cents to the TTHF.
KNORR Sides & Sauces
Every day, moms are faced with the
dilemma of having to prepare healthy
and great-tasting home-made meals
for their families, but lack of time and
inspiration can make it challenging.
The Knorr range of Sides and Sauces
was launched in 2011, offering moms the convenience
and variety they are looking for. The range, which
includes Alfredo, Pesto, Garlic & Herb, Parma Rosa
and Four Cheese offers an exciting variety to make
great tasting, healthy family meals.
The Knorr Sides range of Italian and Asian mixes,
which was also launched, consists of almost ready to
eat meals that can be prepared in 15 minutes or less.
Simply combining one of the mixes with chicken,
shrimp or beef and a loaf of garlic bread provides a
complete and mouth-watering meal in minutes.
I love my Ice Cream
The “Make everyday a Sundae with ice
cream” campaign continued to add vitality
with delicious snacks and innovations in all
four major brands: Ben & Jerry’s, Breyers
Popsicle, and the Klondike range.
Ben & Jerry’s had a very strong year, becoming a regular household brand and attracting more loyal consumers.
16
Unilever Caribbean Limited • Annual Report and Accounts 2011
The Year in Review
Blue Band –
Inspiring mothers
Blue Band’s aim in 2011 was to continue to inspire mothers to cook new
meals using Blue Band Margarine.
As part of this drive, we recruited
well known Trinidadian chef and TV
personality Wendy Rahamut, who
created mouth-watering recipes
using Blue Band margarine.
The recipes were published in all
markets.
To add further excitement, Blue Band
implemented a successful ‘eggciting’ Easter promotion. And as children returned to school, Blue Band
executed the Blue Band Back to
School Lunch Bag promotion in
which consumers were able to
redeem their purchases of Blue
Band margarines for a premium
lunch bag.
Blue Band margarine - your trusted ally
in the kitchen.
Unilever Caribbean Limited • Annual Report 2011
17
The Year in Review
Winning through
community outreach
World Water Monitoring Day
World Water Monitoring Day is an
international education and outreach programme that builds
public awareness and involvement
in protecting water resources
around the world by engaging citizens in the conduct of basic monitoring of their local water courses.
On Saturday, 30 April 2011, a large
number of Unilever volunteers
travelled to the Manzanilla-Mayaro
coast to test the ocean’s water in
observance of World Water Monitoring Day.
While engaged in this annual event,
participants learned more about
the watersheds in which they live,
how watersheds work and how
protecting their waters can have
beneficial impacts downstream.
Tests for dissolved oxygen, pH
(acidity), temperature, and turbidity (clarity) were conducted.
Volunteers gained first-hand
experience in water quality monitoring assessments, designed to
be a basic “checkup” for the water
bodies.
Free Cone Day
In a combined effort with our distributor, hundreds of
children enjoyed free Ben & Jerry’s ice cream in celebration of Free Cone Day. In Trinidad, the Ben & Jerry’s crew visited the St. Jude’s Home for Girls, the St.
Dominic’s Children’s Home and the Rainbow Rescue
Home. In Tobago, the Happy Haven Home was also
treated to the Free Cone giveaways. This event ties
into the Company’s mission of taking small, every day
actions that can add up to make a big difference.
18
Unilever Caribbean Limited • Annual Report 2011
The Year in Review
Supporting Communities in their
time of need
FLOOD Relief
Efforts
Following severe flooding in October 2011 in south Trinidad, Unilever Caribbean Limited, donated
CIF cleaning packs, Close Up
toothpaste, Degree deodorants,
Breeze detergent and Lifebuoy
antibacterial soap bars to the
Trinidad and Tobago Red Cross
Society to aid in clean up efforts
of affected families. Director
General of the Red Cross, Jennifer Gonzalez, received the donations on behalf of the Society,
from UCL Communications Specialist Joleen Meharris.
Japan Aid Relief
In the wake of the March 11, 2011
earthquake and tsunami in Japan,
Unilever’s global response team
worked with Save the Children,
one of our global disaster and
emergency response partners, to
provide food, water, and other basic
supplies to the victims. In order to
provide employees with an opportunity to contribute to a broader
relief effort, Unilever launched
online donation initiatives with the
World Food Programme and Save
the Children. UCL employees
raised funds, which were matched
by the company and submitted to
the World Food Programme.
Unilever Caribbean Limited • Annual Report 2011
19
The Year in Review
Winning through
community outreach
Mt. D’Or Government Primary School
Students from the Mt. D’Or Government Primary School enjoy their new books and musical instruments donated by Unilever
Caribbean Limited.
In September 2011, Unilever Caribbean Limited made a significant donation of books and musical instruments such as
tenor pans, cuatros and handle-bells to the Mt. D’Or Government Primary School. Unilever Caribbean Limited has
been supporting Mt. D’Or for almost nine years, “displaying
a genuine interest in the development of the 130 students
and 20 teachers,” said school principal Melissa Gayadeen.
The books donated to the library include storybooks and
learning materials for teachers to help improve their teaching skills.
For the 7th consecutive year, Unilever sponsored the
school’s annual Christmas party. Employees participated
in a gift drive in the weeks leading up to the party, bringing
joy to the 130 students of the school.
20
Unilever Caribbean Limited • Annual Report 2011
The Year in Review
Winning through
community outreach
Global Handwashing Day
Roxane De Freitas, Managing Director, with the winners of the Lifebuoy competition.
Global Handwashing Day, first
launched by Unilever’s Lifebuoy
soap and other partners in 2008,
is observed annually on October
15 across the world to raise
awareness for the importance of
washing hands with soap.
To mark Global Handwashing Day
in 2011, employees of Unilever
Caribbean Limited visited several
primary schools throughout the
country. We communicated the
message of using soap to wash
hands through engaging demonstrations, reaching approximately
4,000 children.
To further reinforce the handwashing message in a fun and
rewarding way, UCL hosted a
germ fighter drawing competition
for school children. The theme of
the competition was “Clean Hands
for Good Health.” Thousands of
children between the ages of
five and twelve responded by
submitting entries.
Book donation to Moms
for Literacy
Unilever Caribbean limited donated 126
story books to Moms for Literacy, an NGO
that encourages reading between moms
and their children. Their programmes
also motivate students and help build
their self esteem and confidence.
Amber Gonzales, Programme Director of Moms for Literacy (centre in
brown), with some of the students, Joleen Meharris, Communications
Specialist UCL (far left), and Leah Boodhoo, Customer Service Manager
UCL (far right), after the presentation of the books.
Unilever Caribbean Limited • Annual Report 2011
These books will contribute to making a
difference in these children’s lives. Over
20 children who are full time students at
Moms for Literacy will benefit from this
effort directly.
21
The Year in Review
Winning with
Our People
Safety Health and Environment (SHE) Week
During the second week of May,
Unilever
Caribbean
Limited
observed SHE (Safety, Health and
Environment) Week. Employees
participated in several events
aimed at reinforcing safety
measures and procedures in the
workplace.
As part of the week’s activities,
we hosted a fair with several
booths that offered important
safety information. These included
the Trinidad & Tobago Office of
Disaster Preparedness with
information on how to prepare for
natural disasters, like hurricanes
and flooding, that are prevalent in
this region.
Employees enjoyed the innovative
way in which the importance of
safety was shared and had the
opportunity to demonstrate their
safety skills to win great prizes.
Export Distributor Workshop
Unilever Caribbean Limited hosted an Export
Distributors Workshop to provide training on
Unilever’s way of working for regional
distributors who were fairly new to the
business, or new to a particular category.
Distributors who participated in the training
were based in the export markets of
Barbados, St. Lucia, Guyana and Suriname.
The visit further gave the local team the
opportunity to build relationships and bring
different areas of expertise to the table.
The regional team took with them key actions
and deliverables that will contribute to
Unilever’s growth agenda.
22
Unilever Caribbean Limited • Annual Report 2011
The Year in Review
Winning with
Our People
Cancer Awareness Month
Cancer Awareness Month is marked annually across the world in October. In 2011,
Unilever Caribbean Limited took the opportunity to celebrate the memory of colleagues
who had passed away from cancer during
the year. Employees participated in the
Trinidad and Tobago Cancer Society’s annual
5K walk to raise awareness and to show
solidarity with those battling the disease.
World Diabetes Day
The Diabetes Association generously
offered to do free cholesterol, blood pressure and diabetes testing for UCL employees in observance of World Diabetes Day on
14 November 2011.
Observance of national holidays
As is customary to celebrate major public holidays in
the country and to add excitement to the daily routine, competitions for the best dressed male and
female employees were held on site.
Participants in the Best Dressed Competitions for Divali and Emancipation Day.
Unilever Caribbean Limited • Annual Report 2011
23
The Year in Review
Winning through
continuous improvement
Saving water through rainwater harvesting
To promote sustainability, Unilever
Caribbean Limited embarked on a
rainwater harvesting project. Two
3,000 gallon tanks were set up in
the Supply Chain area to collect
rainwater from the overhead guttering in the Engineering Building.
Once collected, a pump transfers
this water to the plant, contributing
to water conservation in the community. Small, simple actions can
make a big difference and help us
create a more sustainable future.
New system to rework
detergent powder
From time to time, detergent powder from leaking packets is
reworked through our Powders plant. Traditionally this was
done through a manual system, requiring the operator to wear
extensive personal protective equipment (PPE).
Our local Engineering Team developed an improved system
through the design of a Down Flow Booth. The packets are
now opened safely by one operator, using only basic PPE. The
operator performs this task in the Down Flow Booth that
has a net inflow of air, thereby preventing contamination of
the surroundings.
The powder is immediately conveyed through pipelines using
air directly into the silos that feed the packing lines. The pneumatic conveyance system was developed in-house and has
been the foundation of this simple system that has made a big
difference in the safety, efficiency and cost-effectiveness of
this rework system.
24
Unilever Caribbean Limited • Annual Report 2011
Independent Auditor’s Report
Independent Auditor’s Report
To the shareholders of Unilever Caribbean Limited
Report on the financial statements
We have audited the accompanying financial statements of Unilever Caribbean Limited,
which comprise the statement of financial position as at 31 December 2011 and the income
statement, statements of comprehensive income, changes in equity and cash flows for the
year then ended, and a summary of significant accounting policies and other explanatory
information.
Management’s responsibility for the financial statements
Management 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.
Auditor’s responsibility
Our 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 the auditor’s
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, the auditor
considers 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.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial
position of Unilever Caribbean Limited as at 31 December 2011, and its financial performance and its cash flows for the year then ended in accordance with International Financial
Reporting Standards.
PricewaterhouseCoopers
23 March 2012
Port of Spain
Trinidad, West Indies
Unilever Caribbean Limited • Annual Report 2011
25
Financial Statements 31 December 2011
Income Statement (Expressed in Trinidad and Tobago Dollars)
Year Ended
31 December
Notes
2011
$’000
2010
$’000
Turnover
5
527,355
495,150
Cost of Sales
6
(331,254)
(303,716)
Gross Profit
196,101
191,434
Selling and distribution costs
(93,337)
(94,261)
Administrative expenses
(24,976)
(26,842)
6
(118,313)
(121,103)
Operating Profit
77,788
70,331
8
(182)
(659)
Profit Before Taxation
77,606
69,672
Taxation
9
(18,360)
(18,020)
Profit For The Year
59,246
51,652
Expenses
Finance Costs – Net
Earnings Per Share For Profit Attributable To The
Equity Holders Of The Company During The Year
- Basic and diluted
10
$
2.26
$
1.97
The notes on pages 31 to 55 are an integral part of these financial statements.
26
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Statement Of Comprehensive Income (Expressed in Trinidad and Tobago Dollars)
Year Ended
31 December
Notes
2011
$’000
2010
$’000
Profit For The Year
59,246
51,652
Other Comprehensive Income
Gain on revaluation of land and buildings
12
15,653
--
Deferred tax on building revaluation
14
(1,663)
--
73,236
51,652
Total Comprehensive Income For The Year
The notes on pages 31 to 55 are an integral part of these financial statements.
Unilever Caribbean Limited • Annual Report 2011
27
Financial Statements 31 December 2011
Statement Of Financial Position (Expressed in Trinidad and Tobago Dollars)
Year Ended
31 December
Notes
ASSETS
2011
$’000
2010
$’000
Non-current Assets
Property, plant and equipment
Retirement benefit asset
Deferred tax asset
Intangible asset
12
13
14
15
82,699
58,570
6,766
1,776
69,581
58,414
6,058
--
149,811
134,053
Inventories
17
Trade and other receivables
18
Due from related companies
19
Taxation recoverable
Cash at bank and in hand
48,943
70,198
2,854
2,112
64,011
45,997
73,306
2,450
3,026
40,750
188,118
165,529
Total Assets
337,929
299,582
Share capital
20
Property revaluation surplus
Retained earnings
26,244
35,284
127,856
26,244
21,294
103,252
Total Equity
189,384
150,790
26,987
23,885
24,215
21,540
50,872
45,755
Trade and other payables
21
Provisions for other liabilities
22
Due to parent and related companies
19
Bankers’ acceptances
23
Taxation payable
66,646
7,567
19,054
--
4,406
64,579
6,654
20,210
9,309
2,285
97,673
103,037
Total Liabilities
148,545
148,792
Total Equity And Liabilities
337,929
299,582
Current Assets
EQUITY AND LIABILITIES
Capital and Reserves Attributable To Equity Holders
Of The Company
Non-current Liabilities
Retirement and termination obligations
Deferred tax liabilities
13
14
Current Liabilities
The notes on pages 31 to 55 are an integral part of these financial statements.
On 21 March 2012, the Board of Directors of Unilever Caribbean Limited authorised these financial statements for issue.
Director
28
Director
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Statement Of Changes In Equity (Expressed in Trinidad and Tobago Dollars)
Property
ShareRevaluationRetainedTotal
CapitalSurplusEarningsEquity
Notes $’000
$’000
$’000
$’000
Year ended 31 December 2011
Balance at 1 January 2011
26,244
21,294
103,252
150,790
--
--
59,246
59,246
Gain on revaluation of land and buildings 12
--
15,653
--
15,653
Deferred tax on building revaluation
--
(1,663)
--
(1,663)
Total other comprehensive income
--
13,990
--
13,990
Total comprehensive income for the year
--
13,990
59,246
73,236
11
--
--
(34,642)
(34,642)
26,244
35,284
127,856
189,384
Balance at 1 January 2010
26,244
21,294
79,681
127,219
Total comprehensive income for the year
--
--
51,652
51,652
--
--
(28,081)
(28,081)
26,244
21,294
103,252
150,790
Comprehensive income
Profit for the year
Other comprehensive income
14
Transaction with owners
Dividends
Balance at 31 December 2011
Year ended 31 December 2010
Transaction with owners
Dividends
11
Balance at 31 December 2010
The notes on pages 31 to 55 are an integral part of these financial statements.
Unilever Caribbean Limited • Annual Report 2011
29
Financial Statements 31 December 2011
Statement Of Cash Flows (Expressed in Trinidad and Tobago Dollars)
Year Ended
31 December
Notes
Operating Activities
2011
$’000
Profit before taxation
Adjustments for:
Depreciation
12
Amortisation
15
Interest cost - net
(Decrease)/increase in retirement benefit asset
Increase/(decrease) in retirement and termination obligations
Loss on disposal of plant and equipment
77,606
69,672
5,430
349
182
(156)
2,772
--
7,412
-659
326
(892)
406
Operating profit before working capital changes
86,183
77,583
(Increase)/decrease in inventories
Decrease in trade and other receivables
(Increase)/decrease in due from related companies
Increase/(decrease) in trade and other payables
Increase in provisions for other liabilities
(Decrease) in due to parent and related companies
(2,946)
3,108
(404)
2,067
913
(1,156)
12,142
5,585
33
(912)
1,205
(459)
87,765
95,177
Interest paid - net
(182)
(659)
Taxation paid - net
(16,673)
(19,372)
Net Cash Inflows From Operating Activities
70,910
75,146
Investing Activities
Purchase of plant and equipment
Purchase of intangible asset
(1,573)
(2,125)
(2,653)
--
(3,698)
(2,653)
(34,642)
(28,081)
Increase In Cash And Cash Equivalents
32,570
44,412
Cash And Cash Equivalents At Beginning Of Year
31,441
(12,971)
Cash And Cash Equivalents At End Of Year
64,011
31,441
64,011
40,750
--
(9,309)
64,011
31,441
12
15
Net Cash Outflows From Investing Activities
Financing Activity
Dividends paid
11
2010
$’000
Represented By:
Cash at bank and in hand
Bankers’ acceptances
23
The notes on pages 31 to 55 are an integral part of these financial statements.
30
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars)
1
General Information
Unilever Caribbean Limited 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 home care, 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.
2Summary Of Significant Accounting Policies
The 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.
2.1 Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting Standards under the
historical cost convention, as modified by
the revaluation of freehold properties.
The 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 disclosed in Note 4.
Unilever Caribbean Limited • Annual Report 2011
(i) New and amended standards adopted
by the Company
The Company has adopted the following amended standards and interpretation as of 1 January 2011:
•IAS 24 (revised), ‘Related party disclosures’, issued in November
2009. It supersedes IAS 24, ‘Related party disclosures’, issued in
2003. The amendment modifies
the definition of a related party and
modifies certain related party disclosure requirements for government related entities.
• Amendment to IFRIC 14, ‘IAS 19 –
The limit on a defined benefit assets, minimum funding requirements and their interaction’.
Removes unintended consequences arising from the treatment of
pre-payments where there is a
minimum funding requirement.
Results in pre-payments of contributions in certain circumstances
being recognised as an asset rather than an expense.
•IFRS 7, ‘Financial instruments’,
emphasises the interaction between quantitative and qualitative
disclosures about the nature and
extent of risks associated with financial instruments.
•IAS 1, ‘Presentation of financial instruments’. Clarifies that an entity
will present an analysis of other
comprehensive income for each
component of equity, either in the
statement of changes in equity or
in the notes to the financial statements.
31
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
2Summary Of Significant Accounting Policies
(continued)
2.1 Basis of preparation (continued)
(i) New and amended standards adopted
by the Company (continued)
•IAS 34, ‘Interim financial reporting’,
provides guidance to illustrate how
to apply disclosure principles in
IAS 34 and add disclosure requirements around:
- The circumstances likely to affect fair values of financial instruments and their classification;
- Transfers of financial instruments between different levels
of the fair value hierarchy;
- Changes in classification of financial assets; and
- Changes in contingent liabilities and assets.
(ii) New standards, amendments and interpretations issued but not effective for
the financial year beginning 1 January
2011 and not early adopted
• Amendments to IFRS 7 on derecognition (effective July 1, 2011).
These amendments are part of the
IASB’s comprehensive review of off
balance sheet activities. The
amendments will promote transparency in the reporting of transfer
transactions and improve user’s
understanding of the risk exposures relating to transfer of financial assets and the effect of those
risks on an entity’s financial position, particularly those involving
securitisation of financial assets.
•IAS 19, ‘Employee benefits’ was
amended in June 2011. The impact
on the Company will be as follows:
to eliminate the corridor approach
32
and recognise all actuarial gains
and losses in other comprehensive
income as they occur; to immediately recognise all past service
costs; and to replace interest cost
and expected return on plan assets
with a net interest amount that is
calculated by applying the discount
rate to the net defined benefit liability/asset. The Company is yet to
assess the full impact of the
amendments. This amendment is
effective from 1 January 2013.
•IFRS 9, ‘Financial instruments’, addresses the classification, measurement and recognition of financial assets and financial liabilities.
IFRS 9 was issued in November
2009 and October 2010. It replaces
the parts of IAS 39 that relate to the
classification and measurement of
financial instruments. IFRS 9 requires financial assets to be classified into two measurement categories: those measured as at fair
value and those measured at amortised cost. The determination is
made at initial recognition. The
classification depends on the entity’s business model for managing
its financial instruments and the
contractual cash flow characteristics of the instrument. For financial
liabilities, the standard retains
most of the IAS 39 requirements.
The main change is that, in cases
where the fair value option is taken
for financial liabilities, the part of a
fair value change due to an entity’s
own credit risk is recorded in other
comprehensive income rather than
the income statement, unless this
creates an accounting mismatch.
The Company is yet to assess IFRS
9’s full impact and intends to adopt
IFRS 9 no later than the accounting
period beginning on or after 1 January 2015.
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
2Summary Of Significant Accounting Policies
(continued)
2.1 Basis of preparation (continued)
(ii) New standards, amendments and interpretations issued but not effective for
the financial year beginning 1 January
2011 and not early adopted (continued)
•IFRS 13, ‘Fair value measurement
’(effective in 1 January 2013), aims
to improve consistency and reduce
complexity by providing a precise
definition of fair value and a single
source of fair value measurement
and disclosure requirements for
use across IFRSs. The requirements, which are largely aligned
between IFRSs and US GAAP, do
not extend the use of fair value accounting but provide guidance on
how it should be applied where its
use is already required or permitted by other standards within IFRSs
or US GAAP. The Company is yet to
assess IFRS13’s full impact.
• Amendment to IAS 1, ‘Financial
statement presentation’ on other
comprehensive income (OCI) (effective 1 July 2012). This amendment changes the disclosure of
items presented in the financial
statement of comprehensive income. The IASB originally proposed that all entities should
present profit or loss and OCI together in a single statement of
comprehensive income. The proposal has been withdrawn and IAS
1 will still permit profit or loss and
OCI to be presented in either a single statement or in two consecutive
statements. The amendment was
developed jointly with the FASB,
which has removed the option in
US GAAP to present OCI in the
statement of changes in equity.
Unilever Caribbean Limited • Annual Report 2011
• Amendment to IAS 12, ‘Income taxes’ on deferred tax (effective 1 January 2012). Currently IAS 12, ‘Income taxes’, requires an entity to
measure the deferred tax relating
to an asset depending on whether
the entity expects to recover the
carrying amount of the asset
through use or sale. It can be difficult and subjective to assess
whether recovery will be through
use or through sale when the asset
is measured using the fair value
model in IAS 40,’Investment Property’. Hence this amendment introduces an exception to the existing
principle for the measurement of
deferred tax assets or liabilities
arising on investment property
measured at fair value. As a result
of the amendments, SIC 21, Income
taxes- recovery of re-valued nondepreciable assets’, would no longer apply to investment properties
carried at fair value. The amendments also incorporate into IAS 12
the remaining guidance previously
contained in SIC 21, which is accordingly withdrawn.
2.2 Segment reporting
Operating segments are reported in a
manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decisionmaker, who is responsible for allocating
resources and assessing performance of
the operating segments, has been identified as the management committee that
makes strategic decisions.
33
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
2Summary Of Significant Accounting Policies
(continued)
2.3 Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of the Company are measured
using the currency of the primary economic environment in which the entity
operates (‘the functional currency’).
The financial 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 yearend exchange rates of monetary assets
and liabilities denominated in foreign
currencies are recognised in the income statement.
2.4 Property, plant and equipment
Cost or revaluation
Freehold 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 assets 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
34
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
the income statement 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 the income
statement. Each year the difference between depreciation based on the revalued
carrying amount of the asset charged to
the income statement, and depreciation
based on the asset’s original cost is transferred from ‘property revaluation surplus’
to ‘retained earnings’.
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 annum
Plant 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 2.6).
Gains and losses on disposal of property,
plant and equipment are determined by
reference to 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.
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
2Summary Of Significant Accounting Policies
(continued)
2.5 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.
2.6 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.
2.7 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.
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
and ‘cash and cash equivalents’ in the statement of financial position (Notes 2.10 and
2.11). Impairment testing of trade receivables is described in Note 2.8.
Unilever Caribbean Limited • Annual Report 2011
2.8 Impairment of financial assets
The Company assesses at the end of each
reporting period whether there is objective
evidence that a financial asset of 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.
2.9 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. The cost
of finished goods and work in progress are
determined using standard costing. 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.
35
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
2Summary Of Significant Accounting Policies
(continued)
2.10 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.
2.11 Cash and cash equivalents
Cash and cash equivalents comprise cash
at bank and in hand, bank overdraft and
bankers’ acceptances with original maturities of three months or less.
2.12 Share capital
Ordinary shares are classified as equity.
2.13 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.
36
2.14 Current and deferred income taxes
The tax expense for the period comprises
current and deferred tax. Tax is recognised in the income statement, except to
the extent that it relates to items recognised in other comprehensive income.
The current income tax charge is calculated on the basis of the tax laws enacted
or substantively enacted at the statement
of financial position 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 income tax is provided in full,
using the liability method, on temporary
differences arising between the tax bases
of assets and liabilities and their carrying
amounts in the financial statements.
Deferred income tax is determined using
tax rates that have been enacted or substantially enacted by the statement of financial position date and are expected to
apply when the related deferred income
tax asset is realised or the deferred income tax liability is settled.
Deferred income 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 retirement benefit asset and obligation.
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
2Summary Of Significant Accounting Policies
ology similar to that for defined benefit pension plans. Valuations of
these obligations are carried out by
independent qualified actuaries.
(continued)
2.15 Employee benefits
(i)
Pension obligations
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.
The pension accounting costs are
assessed using the projected unit
credit method. Under this method,
the cost of providing pensions is
charged to the income statement so
as to spread the regular cost over
the service lives of employees in accordance with the advice of qualified
actuaries who carry out a full valuation of the plan every three years.
The pension obligation is measured
as the present value of the estimated
future cash outflows using interest
rates of medium term government
bonds.
Actuarial gains and losses are only
recognised when they fall outside a
corridor equal to 10% of the larger of
the value of the plan’s assets and the
value of the plan’s liabilities. These
gains and losses are recognised over
the average remaining service lives
of employees.
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 method-
Unilever Caribbean Limited • Annual Report 2011
(ii)Other post retirement 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.
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.
(iii) Termination benefits
Termination benefits for employees
excluding hourly rated employees
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. This entitlement is calculated from inception of employment
and this liability is provided for.
(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.
37
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
2Summary Of Significant Accounting Policies
2.18 Accounting for leases - where the company is the lessee
(continued)
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 the income statement on a straight-line basis
over the period of the lease.
2.16 Provisions
Provisions for employee benefits 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.
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 statement of financial position date.
2.17 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, the customer has accepted the
products and collectibility of the related
receivables is reasonably assured.
Interest income
Interest income is recognised on a time
proportion basis, taking account of the
principal outstanding and the effective
rate over the period to maturity, when it is
determined that such income will accrue
to the Company.
38
2.19 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.
3
Financial Risk Management
3.1 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 future commercial transactions and when
recognised assets or liabilities
are denominated in a currency
that is not the Company’s functional currency.
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
3
Financial Risk Management (continued)
3.1 Financial risk factors (continued)
(a) Market risk (continued)
(i)Foreign exchange risk (continued)
The Company monitors its exposure to fluctuations in foreign
currencies. If it is determined
that there is a need to hedge this
exposure the appropriate instrument is used.
At 31 December 2011, 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 $1,357,000
(2010: $839,000) 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 bankers’ acceptances.
(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.
Unilever Caribbean Limited • Annual Report 2011
(b) Credit risk
Credit 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 16 (b) and 18).
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 nonperformance by counterparties in
excess of the provision made.
Cash and deposits are held with reputable financial institutions.
(c) Liquidity risk
Prudent 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 statement of financial position
date to the contractual maturity date.
The amounts disclosed are the contractual undiscounted cash flows.
Balances due within one year equal
their carrying balances.
39
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
3
Financial Risk Management (continued)
3.1 Financial risk factors (continued)
(c) Liquidity risk (continued)
Less than one year
Trade and other payables,
excluding statutory liabilities
Due to parent and related companies
Provisions for other liabilities
Bankers’ acceptances
Principal
Interest
2011
$’000
2010
$’000
65,864
19,054
7,567
64,081
20,210
6,654
--
--
9,309
32
3.2 Capital risk management
The 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. Net debt is calculated as bankers’ acceptances and bank overdraft less
cash at bank and in hand. Total capital is calculated as ‘equity’ as shown in the statement of financial position plus net debt.
The gearing ratios at 31 December 2011 and 2010 are as follows:
2011
$’000
Bankers’ acceptances
Less: cash at bank and in hand
2010
$’000
--
9,309
(64,011)
(40,750)
Net debtNilNil
Total equity
189,384
150,790
Total capital
Gearing ratio
189,384
150,790
Nil
Nil
3.3 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, due
to parent and related companies, bankers’ acceptances and bank overdraft are a reasonable
estimate of their fair values because of the short-term maturity of these instruments.
40
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
4Critical Accounting Estimates And Judgements
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, rarely equal the related actual results. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets
and liabilities within the next financial year are outlined 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 liability.
Other key assumptions for pension obligations are based in part on current market conditions. Additional information is disclosed in Note 13.
Were the discount rate used to differ by 10% from management’s estimate, the carrying amount of
pension obligations would be an estimated $23.1 million lower or $20.2 million higher.
5Turnover
Third party sales
Sales to related companies (Note 19)
Unilever Caribbean Limited • Annual Report 2011
2011
$’000
2010
$’000
511,484
15,871
479,249
15,901
527,355
495,150
41
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
6Expenses By Nature
2011
$’000
2010
$’000
Changes in inventories of finished goods and work in progress
Raw materials and packaging materials used
Employee benefit expense (Note 7)
Royalties and service fees (Note 19)
Production costs
Advertising and promotional costs
Distribution costs
Human resources costs
Depreciation (Note 12)
Information technology costs
Marketing and sales
Buying and planning
Other expenses
Merchandising expenses
Amortisation (Note 15)
150,074
103,852
74,954
27,634
22,541
20,565
19,139
4,768
5,430
4,390
4,301
2,857
5,718
2,995
349
118,215
107,985
75,227
24,926
23,507
21,567
19,537
5,892
7,412
6,199
4,165
3,526
3,650
3,011
--
Total cost of sales, selling and distribution costs
and administrative expenses
449,567
424,819
Wages and salaries
National insurance
Retirement and termination benefits (Note 13)
Severance costs
64,790
2,853
6,750
561
64,397
2,886
5,141
2,803
74,954
75,227
Bankers’ acceptances interest expense
Finance income
221
(39)
826
(167)
Net finance costs
182
659
7Employee Benefit Expense
8
42
Finance Costs – Net
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
9Taxation
2011
$’000
2010
$’000
Current tax
Prior year over provision
Deferred tax credit (Note 14)
Green fund levy
20,233
(1,847)
(26)
--
17,773
-(248)
495
18,360
18,020
The Company’s effective rate varies from the statutory rate of 25% as a result of the differences shown
below:
Profit before taxation
77,606
69,672
Tax calculated at 25%
Prior year over provision
Adjustment for previously unrecognised timing differences
Income not subject to tax
Expenses not deductible for tax purposes
Green fund levy
19,402
(1,847)
502
(8)
311
--
17,418
-99
(28)
36
495
18,360
18,020
Tax charge
10Earnings 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.
Profit attributable to equity holders
59,246
51,652
Weighted average number of ordinary shares in issue (‘000)
26,244
26,244
$2.26
$1.97
Basic and diluted earnings per share
11Dividends
On 21 March 2012, the Board of Directors declared a final dividend of $1.22 per share bringing the total
dividend in respect of the current year to $1.54 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 31
December 2012.
Dividends accounted for as an appropriation of retained earnings are as follows:
Final dividend for 2010 - $1.00 per share (2009 - $0.75 per share)
Interim dividend for 2011 - $0.32 per share (2010 - $0.32 per share)
Unilever Caribbean Limited • Annual Report 2011
26,244
8,398
19,683
8,398
34,642
28,081
43
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
12Property, Plant And Equipment
Freehold FreeholdPlant andWork in
Land
BuildingsEquipmentProgressTotal
$’000
$’000
$’000
$’000
$’000
Year ended 31 December 2011
Opening net book amount
21,000
13,689
33,596
1,296
69,581
Additions
--
--
249
1,324
1,573
Transfers
--
--
1,878
(1,878)
-Capitalisation of spares
--
--
1,322
--
1,322
Depreciation charge
--
(438)
(4,992)
--
(5,430)
Revaluation
9,000
6,653
--
--
15,653
Closing net book amount
30,000
19,904
32,053
742
82,699
At 31 December 2011
Cost or valuation
Accumulated depreciation
30,000
--
20,000
(96)
114,841
(82,788)
742
--
165,583
(82,884)
Net book amount
30,000
19,904
32,053
742
82,699
Year ended 31 December 2010
Opening net book amount
Additions
Transfers
Disposals
Depreciation charge
21,000
--
--
--
--
14,131
--
(48)
--
(394)
35,566
--
5,454
(406)
(7,018)
4,049
2,653
(5,406)
--
--
74,746
2,653
-(406)
(7,412)
Closing net book amount
21,000
13,689
33,596
1,296
69,581
At 31 December 2010
Cost or valuation
Accumulated depreciation
21,000
--
20,256
(6,567)
111,392
(77,796)
1,296
--
153,944
(84,363)
Net book amount
21,000
13,689
33,596
1,296
69,581
At 31 December 2009
Cost or valuation
Accumulated depreciation
21,000
--
20,304
(6,173)
106,344
(70,778)
4,049
--
151,697
(76,951)
Net book amount
21,000
14,131
35,566
4,049
74,746
An independent valuation of land and buildings was performed by Linden Scott & Associates, professional valuers on 25 October 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 shareholders equity.
Depreciation expense of $4,772,000 (2010: $6,794,000) has been charged in cost of sales, $178,000
(2010: $158,000) in distribution costs and $480,000 (2010: $460,000) in administrative expenses.
44
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
12Property, Plant And Equipment (continued)
If freehold land and buildings were stated on the historical cost basis, the amounts would be as follows:
2011
$’000
2010
$’000
Cost
18,118
18,118
Accumulated depreciation
(8,421)
(8,027)
9,697
10,091
Monthly paid staff
Hourly paid staff
58,646
(76)
58,430
(16)
58,570
58,414
(232,703)
260,767
(211,831)
247,840
Unrecognised actuarial loss
28,064
30,582
36,009
22,421
Retirement benefit asset
58,646
58,430
Movement in the asset recognised in the statement of financial position:
Asset as at 1 January
Net pension cost
Contributions paid
58,430
(1,594)
1,810
58,819
(2,198)
1,809
Asset as at 31 December
58,646
58,430
Amounts recognised in the income statement:
Current service cost
Interest on benefit obligation
Expected return on plan assets
Amortised net loss
Past service cost
5,784
12,987
(17,177)
--
--
5,836
15,019
(19,417)
610
150
1,594
2,198
Expected return on plan assets
Actuarial gain on plan assets
17,177
618
19,417
2,050
Actual return on plan assets
17,795
21,467
Net book amount
13Retirement And Termination Benefit Asset/(Obligations)
(a) Pension Benefits
Retirement Benefit Asset
Retirement Benefit Asset (Monthly Paid Staff)
Amounts recognised in the statement of financial position are as follows:
Present value of funded obligations
Fair value of plan assets
Net pension cost
Unilever Caribbean Limited • Annual Report 2011
45
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
13Retirement And Termination Benefit Asset/(Obligations) (continued)
(a) Pension Benefits (continued)
Retirement Benefit Asset (continued)
Retirement Benefit Obligation (Hourly Paid Staff)
2011
$’000
Amounts recognised in the statement of financial position
are as follows:
Present value of funded obligations
Fair value of plan assets
2010
$’000
Retirement benefit obligation
Movement in the obligation recognised in the statement
of financial position:
Obligation as at 1 January
Net pension cost
Contributions paid
Obligation as at 31 December
Amounts recognised in the income statement:
Current service cost
Interest on benefit obligation
Expected return on plan assets
(8,524)
8,448
(6,390)
6,374
(76)
(16)
(16)
(988)
928
(79)
(815)
878
(76)
(16)
1,038
393
(443)
868
396
(449)
Net pension cost
Expected return on plan assets
Actuarial gain/(loss) on plan assets
988
815
443
81
449
(682)
524
(233)
Retirement and Termination Obligations
Supplementary pension scheme
Termination benefits - hourly paid employees
(1,831)
(25,156)
(1,941)
(22,274)
(26,987)
(24,215)
(1,967)
136
(1,951)
10
(1,831)
(1,941)
Obligation as at 1 January
Net pension cost
Benefit payments
(1,941)
(115)
225
(2,017)
(141)
217
Obligation as at 31 December
(1,831)
(1,941)
Actual return on plan assets
Supplementary Pension Scheme
Amounts recognised in the statement of financial position
are as follows:
Present value of funded obligations
Unrecognised actuarial loss
Obligation as at 31 December
Movement in the obligation recognised in the statement
of financial position:
46
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
13Retirement And Termination Benefit Asset/(Obligations) (continued)
(a) Pension Benefits (continued)
Retirement and Termination Obligations (continued)
Supplementary Pension Scheme (continued)
2011
$’000
Amounts recognised in the income statement:
Interest on benefit obligation
Termination Benefits - Hourly Paid Employees
2010
$’000
115
141
(25,249)
93
(20,527)
(1,747)
Obligation as at 31 December
(25,156)
(22,274)
Movement in the liability recognised in the statement
of financial position:
Obligation as at 1 January
Net pension cost
Benefit payments
(22,274)
(4,053)
1,171
(23,090)
(1,987)
2,803
Obligation as at 31 December
(25,156)
(22,274)
Current service cost
Interest on benefit obligation
Amortised net gain
Past service cost
667
1,373
--
2,013
607
1,508
(128)
--
Net pension cost
4,053
1,987
7,489
14,868
(17,620)
--
2,013
7,311
17,064
(19,866)
482
150
6,750
5,141
Amounts recognised in the statement of financial position
are as follows:
Present value of funded obligations
Unrecognised actuarial gain
Amounts recognised in the income statement:
Total Amounts Recognised in the Income Statement:
Current service cost
Interest on benefit obligation
Expected return on plan assets
Amortised net loss
Past service cost
Net pension expense
Pension expense of $4,657,000 (2010: $3,547,000) has been charged in cost of sales, $1,283,000
(2010: $977,000) in distribution costs and $810,000 (2010: $617,000) in administrative expenses.
The actual return on plan assets was $18,319,000 (2010: $21,234,000).
Unilever Caribbean Limited • Annual Report 2011
47
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
13Retirement And Termination Benefit Asset/(Obligations) (continued)
(a) Pension Benefits (continued)
The principal assumptions are as follows:
Discount rate
- Actives and deferred
- Pensioners
- Terminations/lump sum benefits
Salary increases
-Monthly paid employees
- Weekly paid employees
NIS ceiling/pension increases
- Pension increases
- Rate of return on pension plan assets (monthly)
- Rate of return on pension plan assets (hourly-rated)
2011
%
2010
%
5.50
5.50
5.50
6.25
6.25
6.25
4.50
4.00
4.50
4.00
3.25
6.25
5.50
4.00
7.00
6.25
(b) Post-Employment Benefits (Monthly Paid Staff)
Plan assets are comprised as follows:
2011
$’000
%
146,619 56
97,356 38
16,792
6
Debt instruments
Equity instruments
Other
2010
$’000
128,877
57,003
61,960
%
52
23
25
260,767 100 247,840 100
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 statement of financial position date. Expected returns on equity reflect long-term real rates of return experienced in the market.
As at 31 December
Present value of defined
benefit obligation
Fair value of plan assets
Surplus
Experience adjustments
on plan liabilities
Experience adjustments on plan assets
2011
$’000
2010
$’000
2009
$’000
2008
$’000
2007
$’000
232,703
211,831 203,953
191,805 178,632
(260,767) (247,840) (230,561) (209,032) (234,041)
(28,064)
(36,009)
(26,608)
(17,227)
(55,409)
3,775
(7,130)
(5,339)
(2,753)
(14,908)
592
2,050
3,632
(45,223)
8,919
Expected contributions to the monthly paid staff plan for the year ending 31 December 2012 are
$1,939,000 (2011: $1,871,000).
48
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
14Deferred Taxation
Deferred income taxes are calculated on all temporary differences under the liability method using a
principal tax rate of 25%.
Deferred tax asset and liabilities in the statement of financial position and the deferred tax (credit)/
charge in the income statement and statement of comprehensive income are attributable to the following items:
Charge to
Credit toStatement of
IncomeComprehensive
2010Statement
Income
2011
$’000
$’000
$’000
$’000
Deferred income tax liabilities
Accelerated tax depreciation
6,197
628
--
6,825
Retirement benefit asset
14,608
54
--
14,662
Building revaluation surplus
735
--
1,663
2,398
Deferred income tax asset
Retirement benefit obligation
21,540
682
1,663
23,885
(6,058)
(708) --
(6,766)
Net deferred income tax liability
15,482
(26)
1,663
17,119
Charge to
Credit toStatement of
IncomeComprehensive
2009Statement
Income
$’000
$’000
$’000
Deferred income tax liabilities
Accelerated tax depreciation
7,358
(1,161)
--
Retirement benefit asset
14,686
(78)
--
Building revaluation surplus
735
--
--
2010
$’000
6,197
14,608
735
Deferred income tax asset
Retirement benefit obligation
22,779
(1,239)
--
21,540
(7,049)
991
--
(6,058)
Net deferred income tax liability
15,730
(248)
--
15,482
15 Intangible Asset
Opening net book amount
Additions
Amortisation charge for the year
2011
$’000
-2,125
(349)
Closing net book amount
1,776
Cost
Accumulated amortisation
2,125
(349)
Net book amount
1,776
Unilever Caribbean Limited • Annual Report 2011
49
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
15
Intangible Asset (continued)
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.
16(a)Financial Instruments By Category
The accounting policies for financial instruments have been applied to the line items below:
Loans and receivables
Assets as per statement of financial position
Trade and other receivables, excluding prepayments
Cash at bank and in hand
Due from related companies (Note 19)
2011
$’000
2010
$’000
68,478
64,011
2,854
71,616
40,750
2,450
135,343
114,816
Other financial liabilities
at amortised cost
Liabilities as per statement of financial position
Trade and other payables, excluding statutory liabilities
Due to parent and related companies (Note 19)
Bankers’ acceptances
2011
$’000
2010
$’000
65,864
19,054
--
64,081
20,210
9,309
84,918
93,600
16(b)Credit Quality Of Financial Assets
The 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:
2011
2010
$’000
$’000
Trade receivables
Counterparties without external credit rating
Group 1
528
935
Group 2
32,239
39,993
Group 3
27,828
20,770
60,595
61,698
Group 1 - new customers
Group 2 - existing customers with no default in the past year
Group 3 - existing customers with some defaults in the past year. All defaults were fully recovered.
Amounts due from related parties
Balances due from related parties are fully performing and there have been no defaults in the past.
50
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
17
Inventories
Finished goods Raw materials and supplies Engineering and general stores Goods in transit Work in progress 2011
$’000
28,083
9,883
3,671
5,310
1,996
2010
$’000
24,646
9,260
4,896
5,813
1,382
48,943
45,997
The cost of inventories recognised as an expense and included in cost of sales amounted to $253,926,000
(2010: $226,200,000). Inventories written off during the year amounted to $739,000 (2010: $964,000).
18Trade And Other Receivables
Trade receivables
Less: provision for impairment of trade receivables
60,610
(15)
61,737
(39)
Trade receivables – net
Other receivables
Prepayments
60,595
7,883
1,720
61,698
9,918
1,690
70,198
73,306
Included in the other receivables balance is an amount of $7,817,000 for value added tax recoverable
(2010: $9,554,000).
As at 31 December 2011, trade receivables of $51,280,000 (2010: $52,295,000) 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 the
income statement. Trade receivables of $9,315,000 (2010: $9,403,000) 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:
Up to 1 month
9,315
9,403
As of 31 December 2011, trade receivables of $15,000 (2010: $39,000) 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:
Over 6 months
15
39
The carrying amounts of trade and other receivables are denominated in the following currencies:
Trinidad and Tobago dollars
United States dollars
44,566
25,632
51,250
22,056
70,198
73,306
Unilever Caribbean Limited • Annual Report 2011
51
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
18Trade And Other Receivables (continued)
Movements on the Company’s provision for impairment of
trade receivables are as follows:
2011
$’000
At 1 January
Receivables written off during the year as uncollectible
Unused amounts reversed
At 31 December
2010
$’000
39
(24)
--
503
(383)
(81)
15
39
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.
19Related Party Transactions
The 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:
i)Sales to related companies
ii) Purchases from related companies
iii) Royalties and service fees charged to the Company
iv) Key management compensation:
15,871
87,226
27,634
15,901
70,663
24,926
4,287
3,902
2,854
2,450
19,054
20,210
26,244
26,244
Trade payables
Other payables and accruals
49,908
16,738
44,603
19,976
66,646
64,579
Salaries and other short-term employee benefits
v) Year end balances arising from sales/purchases of goods/services,
royalties and service fees:
Due from related companies
Due to parent and related companies
20Share Capital
Authorised
An unlimited number of ordinary shares of no par value
Issued and fully paid
26,243,832 ordinary shares of no par value
21Trade And Other Payables
52
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
22Provisions For Other Liabilities
2011
$’000
2010
$’000
At 1 January
Additional provisions
Unused amounts reversed
Used during the year
6,654
5,485
(1,659)
(2,913)
5,449
4,886
(1,026)
(2,655)
At 31 December
7,567
6,654
--
9,309
These provisions relate to employee benefits.
23
Bankers’ Acceptances
Bankers’ acceptances
The bankers’ acceptances were fully settled as at 31 December 2011. The interest rates on United
States (US) dollar bankers’ acceptances negotiated during the year, vary between 2.55% and 2.75%
(2010: 2.75% and 3.20%). The effective interest rate for the year is 2.66% (2010: 2.91%).
The carrying amounts of the Company’s bankers’ acceptances are denominated in the following currencies:
US dollar
--
9,309
47,542
47,438
The Company has the following undrawn facility:
Floating rate:
- Expiring beyond one year
24
Bank Overdraft
The Company has facilities with the following financial institutions:
• RBC Royal Bank (Trinidad and Tobago) Limited – overdraft facilities to a maximum of TT$12,580,000
(2010: $12,580,000) on its TTD denominated accounts, with interest at the commercial prime rate
of 8% (2010: 8.75%).
• RBC Royal Bank (Trinidad and Tobago Limited) – demand loan facility of TT$19,800,000 (2010:
$19,800,000).
25Contingent Liabilities
Custom bonds and other guarantees
Unilever Caribbean Limited • Annual Report 2011
5,510
4,760
53
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
26Capital And Lease Commitments
Capital Commitments
Authorised and contracted for and not provided for
in the financial statements
2011
$’000
2010
$’000
401
111
Lease Commitments
The Company’s total commitment under the terms of non-cancellable operating leases is $10,420,000
(2010: $16,929,000).
Not later than one year
Later than one year and not later than five years
8,068
2,352
7,837
9,092
10,420
16,929
Lease payments recognised in the income statement amounts to $8,108,000 (2010: $7,937,000).
27
Financial Information By Segment
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 two main business segments:
•Home and personal care – manufacture and sale of a range of laundry detergents, other household products and 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.
Home and
Personal Care
2011
2010
$’000
$’000
27.1 Business
Turnover
Profit before taxation
Total assets
54
FoodsTotal
2011
2010
2011
2010
$’000
$’000
$’000
$’000
314,509
305,317
212,846
189,833
527,355
495,150
46,283
42,961
31,323
26,711
77,606
69,672
201,537
184,727
136,392
114,855
337,929
299,582
Unilever Caribbean Limited • Annual Report 2011
Financial Statements 31 December 2011
Notes To The Financial Statements (Expressed In Trinidad and Tobago Dollars) continued
27
Financial Information By Segment (continued)
Profit
TurnoverTotal Assets
Before Tax
2011
2010
2011
2010
2011
2010
$’000
$’000
$’000
$’000
$’000
$’000
27.2 Geographical
Trinidad and Tobago
Other
309,095
218,260
285,895
209,255
314,372
23,557
277,526
22,056
45,487
32,119
40,228
29,444
527,355
495,150
337,929
299,582
77,606
69,672
Property, plant and equipment and intangible asset of $84,475,000 (2010: 69,581,000) are located in
Trinidad and Tobago.
Other
This segment includes revenue and receivables from sales to other Caribbean countries including
CARICOM, Aruba and the Netherlands Antilles.
Unilever Caribbean Limited • Annual Report 2011
55
MANAGEMENT PROXY CIRCULAR
For the year ended 31 December 2011
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 Third Annual General Meeting of Shareholders of Unilever Caribbean Limited to be held on Thursday 24 May 2012 at 2:00pm in the ballroom of the Crowne Plaza Hotel, Wrightson Road, Port of Spain
4.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.
5. 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.
6. 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.
7. Any Shareholder’s proposal and/or statement submitted pursuant to
Section 116 And 117 (2)
No proposal has been received from any shareholder pursuant to Section
116 (a) and 117 (2) of the Companies Act, 1995.
DateName and TitleSignature
56
21 March 2012
Ricardo Williams, Secretary
Unilever Caribbean Limited • Annual Report 2011
NOTICE OF ANNUAL
GENERAL MEETING
To all shareholders
Notice is hereby given that the Eighty Third Annual General Meeting of Shareholders
of Unilever Caribbean Limited will be held in the ballroom of the Crowne Plaza
Hotel, Wrightson Road, Port of Spain on Thursday 24 May 2012 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 2011.
2. To sanction the final dividend for the year ended 31 December 2011.
3. To elect and re-elect a Director.
4. To appoint Auditors, PricewaterhouseCoopers and authorise the Directors to fix
their remuneration for the ensuing year.
Special business
5. To consider and if thought fit, to pass an ordinary resolution to effect an increase
in remuneration payable to Non-Executive Directors.
“THAT in accordance with paragraph 7, 7.1 and 7.2 of By-Law No. 1 of the Company,
with effect from 1 June 2012, the remuneration paid to Non Executive Directors
of the Company shall be as follows:
Board fees
a) The quarterly retainer payable to the Chairman of the Board to remain at
$45,000.
b) The attendance fee per Board meeting payable to the Chairman of the Board
to be increased from $1,500 to $3,500.
c) The quarterly retainer payable to every Non Executive Board member to be
increased from $7,000 to $10,000
d) The attendance fee per Board meeting payable to every Non Executive Board
member to be increased from $1,500 to $2,500.
Unilever Caribbean Limited • Annual Report 2011
57
NOTICE OF ANNUAL GENERAL MEETING (continued)
Committee fees
a) The quarterly retainer payable to the Chairman of the Committee to be
increased from $3,000 to $4,000
b) The attendance fee per committee meeting payable to the Chairman of the
meeting to be increased from $1,500 to $2,500
c) The quarterly retainer payable to every Non Executive Committee member
to remain at $2,250.
d) The attendance fee per committee meeting payable to every Non Executive
Committee member to be increased from $1,500 to $2,500.
By order of the Board
Ricardo Williams
Secretary
21 March 2012
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 Tuesday 5 June
2012 for payment of dividend on Monday 25 June 2012 to all shareholders whose
names appear on the Register of Members as at the close of business on Monday
4 June 2012.
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.
Photographs of Directors and Management Team: Alice Besson
Design & Layout: Paria Publishing Co. Ltd.
Printing: The Office Authority Ltd.
58
Unilever Caribbean Limited • Annual Report 2011
PROXY FORM
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 N. Voss, or failing him,
Mrs. Roxane E. de Freitas, 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 24th May 2012. As
witness my hand this ………….…………..day of ………………………………………………. 2012.
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.
FOR
Resolution 1:
To receive and consider the Audited Financial Statements of the
Company for the year ended 31 December 2011, together with the
Reports of the Directors and the Auditors thereon.
Resolution 2:
To sanction the final dividend for the year ended 31 December 2011.
Resolution 3:
In accordance with Section 4.3.2. of Bye Laws No. 1 whereby directors
so appointed shall hold office only until the next following general
meeting, Mr. Melvin Hernandez, being eligible, offers himself for election
until the close of the next third Annual Meeting.
Resolution 4:
In accordance with Section 4.4.1 of Bye Laws No.1, whereby directors
shall retire in rotation, Mr. Seamus Clarke, being eligible, offers
himself for re-election until the close of the next third Annual
Meeting.
Resolution 5:
To appoint Auditors, PricewaterhouseCoopers and authorise the
Directors to fix their remuneration.
AGAINST
FOR
AGAINST
Resolution 6:
To consider and if thought fit, to pass an ordinary resolution to effect an
increase in remuneration payable to Non Executive Directors.
“That, in accordance with paragraph 7.1 of Bye Laws No. 1 of the
Company, with effect from 1 June 2012, the remuneration paid to NonExecutive Directors of the company shall be as follows:
Board Fees
•
•
•
•
The quarterly retainer payable to the Chairman of the Board to
remain at $45,000.
The attendance fee per Board meeting payable to the Chairman
of the Board to be increased from $1,500 to $3,500.
The quarterly retainer payable to every Non-Executive Board
member to be increased from $7,000 to $10,000.
The attendance fee per Board meeting payable to every NonExecutive Board member to be increased from $1,500 to $2,500.
Committee Fees
•
•
•
•
The quarterly retainer payable to the Chairman of the Committee
to be increased from $3,000 to $4,000.
The attendance fee per Committee meeting payable to the
Chairman of the meeting to be increased from $1,500 to $2,500.
The quarterly retainer payable to every Non-Executive Committee
member to remain at $2,250.
The attendance fee per Committee meeting payable to every NonExecutive Committee member to be increased from $1,500 to
$2,500.
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:Or deposit to:
The Secretary
The Secretary
Unilever Caribbean Limited Unilever Caribbean Limited
Box 295 Eastern Main Road
Port of Spain CHAMPS FLEURS
2007
2008
2009
2010
$
millions
cents
$$
millions
millions
SALES BY CATEGORY
SALES: LOCAL & EXPORT
350
600
300
500
250
400
200
300
150
100
200
50
100
0
0
2007
2008
2007
2008
Local Sales
0
2011
ROCE
Financial HighlightsOperating Margin
2009
2010
2009
2010
Foods
HPC
Export Sales
EARNINGS & DIVIDENDS PER SHARE
150
300
200
100
2007
2008
2007
2008
Local Sales
2009
2010
2009 Sales 2010
Export
2011
2011
Total
Sales
45%
200
40%
percent
cents
200
cents
2011
Total Sales
D.P.S.
E.P.S.
EARNINGS & DIVIDENDS PER SHARE
OPERATING
MARGIN & RETURN ON CAPITAL EMPLOYED
250
250
150
100
50
0
2009
2010
Export Sales
SALES: LOCAL & EXPORT
EARNINGS & DIVIDENDS PER SHARE
600
250
500
200
400
100
50
0
0
2011
2011
Total Sales
2007
2008
Local Sales
2007
2008
2009
E.P.S.
2010
2011
35%
150
30%
25%
100
20%
15%
50
10%
5%
0
0%
D.P.S.
2007
2007
2008
2008
2009
2009
E.P.S.
Operating Margin
2010
2010
D.P.S.
ROCE
2011
2011
OPERATING MARGIN & RETURN ON CAPITAL EMPLOYED
FIVE
- YEAR FINANCIAL
REVIEW
OPERATING MARGIN & RETURN ON CAPITAL
EMPLOYED
SALES
BY CATEGORY
45%
Operating Margin
Operating Margin
ROCE
SALES BY
CATEGORY
Liquidity
Indicators
Current
350 Ratio
Net300
Current Assets (TT$000)
250
$ millions
Capital
200 Structure and Long Term Solvency Ratios
Share
150 Capital (TT$000)
Capital
100 Reserves (TT$000)
Dividends
(TT$000)
50
Retained
Earnings
(TT$000)
0
Total Stockholders’
Funds 2009
(TT$000)2010
2007
2008
2011
Total Liabilities (TT$000)HPC
Foods
Capital Employed (TT$000)
Earnings and Dividends
EPS (cents)
DPS (cents)
Market indicators
Price earnings ratio
Dividend cover
Dividend yield (%)
Share price at 31 December ($)
Net asset value per share unit
Dec-11
40%
350
35%
300
percent
$ millions
30%
527,355
250
25%
77,788
200
20%
77,606
15%
150
18,360
10%
100
5%
59,246
50
0%
31.3%
0
32.4%
14.8%
Dec-10
Dec-09
Dec-08
Dec-07
495,150
487,153
70,331
57,063
69,672
55,314
18,020
13,830
51,652
41,484
34.3%
32.6%
2007
2008
2009
35.8%
32.6%
2007 Operating
2008 Margin
2009
14.2%
11.7%
HPC
461,934
53,552
50,081
12,791
37,290
33.7%
2010
33.3%
2010
ROCE
Foods11.6%
416,390
54,542
51,521
15,288
36,233
37.1%
2011
39.2%
2011
13.1%
1.3
34,570
1.1
16,912
1.0
5,320
26,244
26,244
21,294
21,294
34,642
27,556
103,252 2008 79,681
2007
2009
150,790
127,219
HPC
148,792
175,038
196,545
175,105
26,244
21,294
24,407
63,129
2010
110,667
Foods
191,111
161,021
26,244
21,294
26,244
50,246
2011
97,784
184,635
139,254
SALES BY CATEGORY
350
1.9
300
90,445
$ millions
percent
45%
40%
Operating
performance
35%
Turnover
(TT$000)
30%
Earnings
before interest and tax (TT$000)
25%
Profit
before
Taxation (TT$000)
20%
15%
Taxation (TT$000)
10%after Taxation (TT$000)
Profit
5%
Return
on Stockholders’ Equity
0%
Return on2007
Capital2008
Employed
2009
2010
2011
250
1.6
62,492
200
150
26,244
100
35,284
50
40,416
127,8560
189,384
148,545
240,256
226
154
197
132
158
105
142
93
138
100
14.39
1.47
4.73
32.53
7.22
11.45
1.49
5.85
22.55
5.75
10.60
1.50
6.27
16.75
4.85
14.07
1.53
4.65
19.98
4.22
12.67
1.38
5.72
17.49
3.73
Corporate Information
CORPORATE INFORMATION
Directors:
Gary N. Voss, Chairman
Roxane E. de Freitas, Managing
Director
Seamus Clarke
Melvin Hernandez
Jacqueline Quamina
Livio Vicco
Ricardo Williams
Secretary:
Ricardo Williams
Registered Office:
Eastern Main Road
Champs Fleurs
Telephone:(868) 663-1787
Facsimile: (868) 662-1780
Website: www.unilevercaribbean.com
Registrar and
Transfer Office:
RBC Trust (Trinidad & Tobago)
Limited
Level 8
55 Independence Square
Port of Spain
Telephone:(868) 625-7288
ext. 4817- 20
Citibank (Trinidad & Tobago)
Limited
12 Queen’s Park East
Port of Spain
CARE FO
R
THE HEA
RTS
YOU LOV
E
Attorneys:
J.D. Sellier & Company
129-131 Abercromby Street
Port of Spain
Auditors:
Audit Committee:
PricewaterhouseCoopers
11-13 Victoria Avenue
Port of Spain
Seamus Clarke, Chairman
Roxane E. de Freitas
Gary N. Voss
Bankers:
RBC Royal Bank (Trinidad &
Tobago) Limited
31 Eastern Main Road
San Juan
First Caribbean International
(Trinidad & Tobago) Limited
74 Long Circular Road
Maraval