Treasury Risk Management (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Maturity Analysis for Non-derivative and Derivative Financial Liabilities

The following table shows Unilever’s contractually agreed undiscounted cash flows, including expected interest payments, which are payable under financial liabilities at the balance sheet date:


		€ million			€ million			€ million			€ million			€ million			€ million			€ million			€ million
																							Net
																							carrying
					Due			Due			Due			Due									amount as
		Due			between			between			between			between			Due						shown in
		within			1 and			2 and			3 and			4 and			after						balance
Undiscounted cash flows	Notes	1 year			2 years			3 years			4 years			5 years			5 years			Total			sheet
2017
Non-derivative financial liabilities:
Preference shares			-			-			-			-			-			-			-			-
Bank loans and overdrafts			(522	)		(221	)		(1	)		(1	)		(260	)		-			(1,005	)		(992	)
Bonds and other loans			(7,558	)		(1,577	)		(2,546	)		(2,026	)		(2,058	)		(9,953	)		(25,718	)		(22,709	)
Finance lease creditors	20		(20	)		(18	)		(17	)		(16	)		(17	)		(118	)		(206	)		(131	)
Other financial liabilities			(177	)		-			-			-			-			-			(177	)		(177	)
Trade payables, accruals and other liabilities	14		(12,861	)		(215	)														(13,076	)		(13,076	)
Deferred consideration			(26	)		(36	)		(27	)		(515	)		(3	)		(9	)		(616	)		(511	)
			(21,164	)		(2,067	)		(2,591	)		(2,558	)		(2,338	)		(10,080	)		(40,798	)		(37,596	)

Derivative financial liabilities:
Interest rate derivatives:
Derivative contracts – receipts			349			64			727			51			754			1,380			3,325
Derivative contracts – payments			(319	)		(19	)		(753	)		(19	)		(797	)		(1,440	)		(3,347	)
Foreign exchange derivatives:
Derivative contracts – receipts			24,935																		24,935
Derivative contracts – payments			(25,258	)																	(25,258	)
Commodity derivatives:
Derivative contracts – receipts
Derivative contracts – payments			(19	)																	(19	)
			(312	)		45			(26	)		32			(43	)		(60	)		(364	)		(534	)
Total			(21,476	)		(2,022	)		(2,617	)		(2,526	)		(2,381	)		(10,140	)		(41,162	)		(38,130	)
2016
Non-derivative financial liabilities:
Preference shares			(4	)		(4	)		(4	)		(4	)		(4	)		(72	)		(92	)		(68	)
Bank loans and overdrafts			(909	)		(4	)		(243	)		-			-			-			(1,156	)		(1,146	)
Bonds and other loans			(4,700	)		(1,335	)		(1,669	)		(1,882	)		(1,634	)		(6,733	)		(17,953	)		(15,053	)
Finance lease creditors	20		(24	)		(18	)		(18	)		(17	)		(16	)		(127	)		(220	)		(143	)
Other financial liabilities			-			-			-			-			-			-			-			-
Trade payables, accruals and other liabilities	14		(13,252	)		(224	)		-			-			-			-			(13,476	)		(13,476	)
Deferred consideration			(151	)		(114	)		(24	)		-			(490	)		(10	)		(789	)		(594	)
			(19,040	)		(1,699	)		(1,958	)		(1,903	)		(2,144	)		(6,942	)		(33,686	)		(30,480	)

Derivative financial liabilities:
Interest rate derivatives:
Derivative contracts – receipts			56			420			-			-			-			-			476
Derivative contracts – payments			(70	)		(429	)		-			-			-			-			(499	)
Foreign exchange derivatives:
Derivative contracts – receipts			9,263			-			-			-			-			-			9,263
Derivative contracts – payments			(9,580	)		-			-			-			-			-			(9,580	)
Commodity derivatives:
Derivative contracts – receipts			-			-			-			-			-			-			-
Derivative contracts – payments			(3	)		-			-			-			-			-			(3	)
			(334	)		(9	)		-			-			-			-			(343	)		(331	)
Total			(19,374	)		(1,708	)		(1,958	)		(1,903	)		(2,144	)		(6,942	)		(34,029	)		(30,811	)

Summary of Derivative Cash Flow Hedges

The following table shows cash flows for which cash flow hedge accounting is applied. The derivatives in the cash flow hedge relationships are expected to have an impact on profit and loss in the same periods as the cash flows occur.


	€ million			€ million			€ million			€ million		€ million			€ million			€ million			€ million
																					Net
				Due			Due			Due		Due									carrying
	Due			between			between			between		between			Due						amount of
	within			1 and 2			2 and 3			3 and 4		4 and 5			after						related
		1 year			years			years			years		years			5 years			Total			derivatives	^(a)
2017
Foreign exchange cash inflows		3,510			-			-			-		-			-			3,510
Foreign exchange cash outflows		(3,536	)		-			-			-		-			-			(3,536	)		(8	)
Interest rate cash flows		30			45			(26	)		31		(44	)		(60	)		(24	)		(351	)
Commodity contracts cash flows		(19	)		-			-			-		-			-			(19	)		(7	)
2016
Foreign exchange cash inflows		2,863			-			-			-		-			-			2,863
Foreign exchange cash outflows		(2,905	)		-			-			-		-			-			(2,905	)		(40	)
Interest rate cash flows		4			(6	)		-			-		-			-			(2	)		-
Commodity contracts cash flows		(3	)		-			-			-		-			-			(3	)		18

^(a)	See note 16C.

Impact of Interest Rate Swaps and Cross-Currency Swaps

The following table shows the split in fixed and floating-rate interest exposures, taking into account the impact of interest rate swaps and cross-currency swaps:


	€ million 2017			€ million 2016
Cash and cash equivalents		3,317			3,382
Current other financial assets		770			599
Current financial liabilities		(7,968	)		(5,450	)
Non-current financial liabilities		(16,462	)		(11,145	)
Net debt		(20,343	)		(12,614	)
Of which:
Fixed rate (weighted average amount of fixing for the following year)		(16,216	)		(11,539	)

Summary of Derivatives Used to Hedge

The uses of derivatives and the related values of derivatives are summarised in the following table. Derivatives used to hedge:


	€ million		€ million			€ million		€ million			€ million			€ million
	Trade and other receivables		Financial assets			Trade Payables and other liabilities		Current financial liabilities			Non- current financial liabilities			Total

31 December 2017
Foreign exchange derivatives including cross currency swaps
Fair value hedges		-		-			-		-			-			-
Cash flow hedges		32		-			(40)		-			-			(8	)
Hedges of net investments in foreign operations		-		9			-		(103	)^(a)		-			(94	)
Hedge accounting not applied		13		73			(54)		35	^(a)		-			67
Interest rate swaps
Fair value hedges		-		2			-		-			-			2
Cash flow hedges		-		2			-		(18	)		(335	)		(351	)
Hedge accounting not applied		-		30			-		-			-			30
Commodity contracts
Cash flow hedges		12		-			(19)		-			-			(7	)
Hedge accounting not applied		-		-			-		-			-			-
		57		116			(113)		(86	)		(335	)		(361	)
		Total assets		173			Total liabilities					(534	)		(361	)


31 December 2016
Foreign exchange derivatives including cross currency swaps
Fair value hedges		-		-			-		-			-			-
Cash flow hedges		36		-			(76)		-			-			(40	)
Hedges of net investments in foreign operations		-		174	^(a)		-		(27	)		-			147
Hedge accounting not applied		79		(133	)^(a)		(67)		(134	)		-			(255	)
Interest rate swaps
Fair value hedges		-		3			-		-			-			3
Cash flow hedges		-		4			-		-			(4	)		-
Hedge accounting not applied		-		43			-		(14	)		(6	)		23
Commodity contracts
Cash flow hedges		21		-			(3)		-			-			18
Hedge accounting not applied		(1)		-			-		-			-			(1	)
		135		91			(146)		(175	)		(10	)		(105	)
		Total assets		226			Total liabilities					(331	)		(105	)

^(a)	Swaps that hedge the currency risk on intra-group loans and offset €(103) million of financial assets (2016: €174 million) within ‘Hedges of net investments in foreign operations’ are included within ‘Hedge accounting not applied’.

Summary of Financial Assets are Subject to Offsetting, Enforceable Master Netting Arrangements and Similar Agreements

The following financial assets are subject to offsetting, enforceable master netting arrangements and similar agreements.

Related amounts not set

off in the balance sheet

€ million

Gross amounts of

recognised

Net amounts of

Gross amounts

financial assets

Cash

of recognised

set off in the

presented in the

Financial

collateral

As at 31 December 2017

financial assets

balance sheet

instruments

received

Net amount

Derivative financial assets

276

(103

)

173

(108

)

As at 31 December 2016