Unilever New Zealand Limited

Annual report

For the year ended 31 December 2017

Annual report

For the year ended 31 December 2017

Contents

Auditor's report

Corporate information

Annual report

Consolidated statement of comprehensive income

Consolidated statement of financial position

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the consolidated financial statements

Unilever New Zealand Limited

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ndeoendent Auditor's Reoort To the shareholders of Unilever New Zealand Limited

Report on the consolidated financial statements

Opinion In our opInIon, tile ;,ccon1pm1yI11g consolidated

ti11a11c1al statements ot U11ilever New Zeala11d

L1rrnted ltl1e comp,myl ,md its subs1d1ar1es ltile

group) or1 paqes 5 TO 23

presenr ta111v 111 ;,II rn;,wr,al respects the Group·s

fr11crnc1al posItIon ;,s at 37 December 2017 and

its frm-111c1al pertorrnar1ce and casl1 tlows tor t11e

vear ended rn1 nrnt cJate. and

11 comply wItl1 Nr,w ZE,aland Equ1vale11ts to

l11term1tIonal F1r1nnc1;,I Report111q Standards

Reduced D1scloswe Reg1rne

� Basis for opinion

We have audited tile accor11pc1I 1yIng consolidated

trna11c1al statements which comprise

tile consolidated stiltcmerlt ot ti11anc1;,I posItI011

as at 3 7 Decembe1 20 l 7.

tile consolidated stilrnrnent of conHJrehe11sIve

I11corne. co11sol1datcd st,1WrneI11 ot changes 111

equity and consolldaWcJ statement ot casll

flows tor tl1e year tlwn emJed. a11d

notes. 111clud1ng a sLmirnc1rv o1 s1g11ificant

account111g policies and other expl,rnatory

1ntormat1or1

We conducted our audit in accordance with International Standards on Auditing (New Zealand) ('ISAs (NZ)'). We

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We are independent of the group in accordance with Professional and Ethical Standard 1 (Revised) Code of

Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the

International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA

Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements and the

IESBA Code.

Our responsibilities under ISAs (NZ) are further described in the auditor's responsibilities for the audit of the

consolidated financial statements section of our report.

Other than in our capacity as auditor we have no relationship with, or interests in, the group.

·-

l _ Other information The Directors, on behalf of the group, are responsible for the other information included in the entity's Annual

Report. Our opinion on the consolidated financial statements does not cover any other information and we do

not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with the

consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially

misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this

other information, we are required to report that fact. We have nothing to report in this regard.

$

£fi Use of this independent auditor's report

This independent auditor's report is made solely to the shareholders as a body. Our audit work has been

undertaken so that we might state to the shareholders those matters we are required to state to them in the

independent auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept

or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent

auditor's report, or any of the opinions we have formed.

A Responsibilities of the Directors for the consolidated financial statements The Directors, on behalf of the company, are responsible for:

- the preparation and fair presentation of the consolidated financial statements in accordance with generally

accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial

Reporting Standards Reduced Disclosure Regime);

- implementing necessary internal control to enable the preparation of a consolidated set of financial

statements that is fairly presented and free from material misstatement, whether due to fraud or error; and

- assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related

to going concern and using the going concern basis of accounting unless they either intend to liquidate or to

cease operations, or have no realistic alternative but to do so.

x,l,.. Auditor's responsibilities for the audit of the consolidated financial statements

Our objective is:

- to obtain reasonable assurance about whether the consolidated financial statements as a whole are free

from material misstatement, whether due to fraud or error; and

- to issue an independent auditor's report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance

with ISAs NZ will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

consolidated financial statements.

A further description of our responsibilities for the audit of these consolidated financial statements is located at

the External Reporting Board (XRB) website at:

http://www. xrb.govt. nz/sta n da rds-for-ass u ra nce-p ractitioners/a ud itors-responsi bi I iti es/audit-re port-7 /

This description forms part of our independent auditor's report.

KPMG

Sydney

29 March 2018

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Unilever New Zealand Limited

Corporate information

Company number:

Directors:

Shareholder:

Registered office:

Auditors:

2207

C Stiff

J Stepto

A Balarin

M Woodward (resigned 22 May 2017)

N Bangs (appointed 22 May 2017)

Unilever Overseas Holdings B.V.

Level 4, 103 Carlton Gore Road

Newmarket

Auckland 1023

KPMG

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Unilever New Zealand Limited

Annual report For the year ended 31 December 2017

The Board of Directors present their Annual Report including the financial statements of the company for the

year ended 31 December 2017 and the auditor's report thereon.

The shareholders of the company have exercised their right under section 211 (3) of the Companies Act 1993

('the Act") and unanimously agreed that this Annual Report need not comply with any of paragraphs (a), and

(e) to (i) of section 211 (1) of the Act.

Signed on behalf of the

C Stiff

Director

J Stepto

Director

29 March 2018

of Directors:

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Unilever New Zealand Limited

Consolidated statement of comprehensive income For the year ended 31 December 2017

Notes 2017 2016

$000 $000

Revenue 4 207,869 206,170

Other income 4 171

Other expenses from ordinary activities 5

Raw materials and consumables used (151,979) (152,205)

Distribution expense (5,133) (6,184) Advertising expense (13,293) (12,181)

Depreciation & amortisation (1,652) (1,609) Employee benefits (15,274) (14,097)

Other (11,738) (9,885)

Total expenses (199,069) (196,161)

Operating profit 8,800 10,180

Finance income 477 680

Finance expenses (126) (78)

Profit before income tax 9,151 10,782

Income tax expense 8 (2,578) (2,288)

Net profit for the year, attributable to equity holders 6,573 8.494

Other comprehensive income

Actuarial gains/(losses) on retirement benefits 16 (179)

Income tax relating to components of other

comprehensive income 8 50

Other comprehensive income for the period, net of tax (129)

Total comprehensive income for the year, attributable to

equity holders 6,573 8,365

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

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Unilever New Zealand Limited

Consolidated statement of financial position As at 31 December 2017

Notes 2017 2016

Current assets $000 $000

Cash and cash equivalents 31,326 30,373

Trade and other receivables 6 16,054 18,057

Inventories 7 2,206 1,759

Income tax refund due 124

49,586 50,313

Non-current assets

Property, plant and equipment 9 5,324 5,775

Intangible