13 GUARANTOR STATEMENTS

On 27 July 2017, Unilever N.V. and Unilever Capital Corporation (UCC) filed a US Shelf registration, which is unconditionally and fully guaranteed, jointly and severally, by Unilever N.V., Unilever PLC and Unilever United States, Inc. (UNUS) and that superseded the NV and UCC US Shelf registration filed on 30 September 2014, which was unconditionally and fully guaranteed, jointly and severally, by NV, PLC and UNUS. UCC and UNUS are each indirectly 100% owned by the Unilever parent entities (as defined below). Of the US Shelf registration, US$11.0 billion of Notes were outstanding at 30 June 2018 (2017: US$9.5 billion; 2016: US$5.1 billion) with coupons ranging from 1.375% to 5.9%. These Notes are repayable between 15 February 2019 and 15 November 2032.

Provided below are the income statements, cash flow statements and balance sheets of each of the companies discussed above, together with the income statement, cash flow statement and balance sheet of non-guarantor subsidiaries. These have been prepared under the historical cost convention and, aside from the basis of accounting for investments at net asset value (equity accounting), comply in all material respects with International Financial Reporting Standards. The financial information in respect of NV, PLC and UNUS has been prepared with all subsidiaries accounted for on an equity basis. Information on NV and PLC is shown collectively as Unilever parent entities. The financial information in respect of the non-guarantor subsidiaries has been prepared on a consolidated basis.

Income Statement

Six months ended 30 June 2018

€ million

Unilever
Capital
Corporation
subsidiary
issuer

Unilever^(a)
parent
entities

Unilever
United
States Inc.
subsidiary
guarantor

Non-
guarantor
subsidiaries

Eliminations

Unilever
Group

Turnover

–

26,352

–

26,352

Operating Profit

–

522

)

3,953

–

4,474

Net finance costs

(52

)

(190

)

–

(208

)

Pensions and similar obligations

–

)

–

(15

)

Other income

–

Profit before taxation

469

(200

)

4,067

–

4,339

Taxation

–

(13

)

–

(1,089

)

–

(1,102

)

Net profit before subsidiaries

456

(200

)

2,978

–

3,237

Equity earnings of subsidiaries

–

2,583

461

(1,427

)

(1,617

)

–

Net Profit

3,039

261

1,551

(1,617

)

3,237

Attributable to:

Non-controlling interests

–

198

–

198

Shareholders’ equity

3,039

261

1,353

(1,617

)

3,039

Other comprehensive income

–

(30

)

(637

)

–

(593

)

Total comprehensive income

3,113

231

914

(1,617

)

2,644

(a)

The term ‘Unilever parent entities’ includes Unilever N.V. and Unilever PLC. Though Unilever N.V. and Unilever PLC are separate legal entities, with different shareholder constituencies and separate stock exchange listings, they operate as nearly as practicable as a single economic entity. Debt securities issued by entities in the Unilever Group are fully and unconditionally guaranteed by both Unilever N.V. and Unilever PLC.


Income Statement Six months ended 30 June 2017 € million	Unilever Capital Corporation subsidiary issuer			Unilever^(a) parent entities			Unilever United States Inc. subsidiary guarantor			Non- guarantor subsidiaries			Eliminations			Unilever Group
Turnover		–			–			–			27,725			–			27,725

Operating Profit		–			66			(3	)		4,784			–			4,847
Net finance costs		6			(52	)		(187	)		(8	)		–			(241	)
Pensions and similar obligations		–			(1	)		(12	)		(36	)		–			(49	)
Other income		–			–			–			75			–			75


Profit before taxation		6			13			(202	)		4,815			–			4,632
Taxation		(2	)		2			–			(1,315	)		–			(1,315	)


Net profit before subsidiaries		4			15			(202	)		3,500			–			3,317
Equity earnings of subsidiaries		–			3,095			548			(1,856	)		(1,787	)		–


Net Profit		4			3,110			346			1,644			(1,787	)		3,317

Attributable to:
Non-controlling interests		–			–			–			207			–			207
Shareholders’ equity		4			3,110			346			1,437			(1,787	)		3,110

Other comprehensive income		–			(29	)		51			(24	)		–			(2	)

Total comprehensive income		4			3,081			397			1,620			(1,787	)		(3,315	)

(a)

Balance Sheet

As at 30 June 2018

€ million

Unilever
Capital
Corporation
subsidiary
issuer

Unilever^(a)
Parent
entities

Unilever
United
States Inc.
Subsidiary
guarantor

Non-
guarantor
subsidiaries

Eliminations

Unilever
Group

Non-current assets

Goodwill and intangible assets

–

3,124

–

25,574

–

28,698

Deferred tax assets

–

953

–

1,000

Other non-current assets

–

13,643

–

13,651

Amounts due from group companies

19,110

9,083

–

(28,193

)

–

Net assets of subsidiaries (equity accounted)

–

36,576

22,215

–

(58,791

)

–

19,110

48,789

22,264

40,170

(86,984

)

43,349

Current assets

Amounts due from group companies

–

6,814

5,890

35,708

(48,412

)

–

Trade and other current receivables

–

6,732

–

6,821

Current tax assets

–

117

–

388

–

505

Other current assets

–

12,493

–

12,507

7,017

5,895

55,321

(48,412

)

19,833

Total assets

19,122

55,806

28,159

95,491

(135,396

)

63,182

Current liabilities

Financial liabilities

3,080

6,335

1,253

—

10,670

Amounts due to group companies

7,569

28,078

12,704

(48,412

)

—

Trade payables and other current liabilities

208

13,476

—

13,779

Current tax liabilities

–

894

–

924

Other current liabilities

599

–

615

10,735

34,634

105

28,926

(48,412

)

25,988

Non-current liabilities

Financial liabilities

8,070

9,560

—

1,321

–

18,951

Amounts due to group companies

–

—

15,608

12,585

(28,193

)

–

Pension and post-retirement healthcare liabilities:

Funded schemes in deficit

–

164

985

–

1,157

Unfunded schemes

–

442

928

–

1,460

Other non-current liabilities

–

3,281

–

3,325

8,070

9,683

16,233

19,100

(28,193

)

24,893

Total liabilities

18,805

44,317

16,338

48,026

(76,605

)

50,881

Shareholders’ equity

317

11,489

11,821

46,747

(58,791

)

11,583

Non-controlling interests

–

718

–

718

Total equity

317

11,489

11,821

47,465

(58,791

)

12,301

Total liabilities and equity

19,122

55,806

28,159

95,491

(135,396

)

63,182

(a)


Balance Sheet As at 31 December 2017 € million	Unilever Capital Corporation subsidiary issuer		Unilever^(a) Parent entities		Unilever United States Inc. Subsidiary guarantor		Non- guarantor subsidiaries		Eliminations			Unilever Group
Non-current assets
Goodwill and intangible assets		–		2,143		–		26,258		–			28,401
Deferred tax assets		–		90		48		947		–			1,085
Other non-current assets		–		6		2		13,808		–			13,816
Amounts due from group companies		17,132		7,099		–		–		(24,231	)		–
Net assets of subsidiaries (equity accounted)		–		35,933		21,568		–		(57,501	)		–

		17,132		45,271		21,618		41,013		(81,732	)		43,302

Current assets
Amounts due from group companies		–		6,119		5,318		32,445		(43,882	)		–
Trade and other current receivables		–		51		3		5,168		–			5,222
Current tax assets		–		57		9		422		–			488
Other current assets		–		39		–		11,234		–			11,273

				6,266		5,330		49,269		(43,882	)		16,983

Total assets		17,132		51,537		26,948		90,282		(125,614	)		60,285

Current liabilities
Financial liabilities		2,420		4,685		1		862		–			7,968
Amounts due to group companies		6,964		25,457		24		11,437		(43,882	)		–
Trade payables and other current liabilities		65		215		11		13,135		–			13,426
Current tax liabilities		–		–				1,088		–			1,088
Other current liabilities		–		5		–		690		–			695

		9,449		30,362		36		27,212		(43,882	)		23,177

Non-current liabilities
Financial liabilities		7,377		7,571		–		1,514		–			16,462
Amounts due to group companies		–		–		14,517		9,714		(24,231	)		–
Pension and post-retirement healthcare liabilities:
Funded schemes in deficit		–		8		103		1,114		–			1,225
Unfunded schemes		–		93		439		977		–			1,509
Other non-current liabilities		–		5		1		3,519		–			3,525

		7,377		7,677		15,060		16,838		(24,231	)		22,721

Total liabilities		16,826		38,039		15,096		44,050		(68,113	)		45,898

Shareholders’ equity		306		13,498		11,852		45,474		(57,501	)		13,629
Non-controlling interests		–		–		–		758		–			758

Total equity		306		13,498		11,852		46,232		(57,501	)		14,387

Total liabilities and equity		17,132		51,537		26,948		90,282		(125,614	)		60,285

(a)


Cash flow statement Six months ended 30 June 2018 € million	Unilever Capital Corporation subsidiary issuer			Unilever^(a) parent entities			Unilever United States Inc. subsidiary guarantor			Non- guarantor subsidiaries			Eliminations			Unilever Group
Net cash flow from operating activities		–			414			(13	)		2,005			–			2,406

Net cash flow from /(used in) investing activities		(1,336	)		(2,731	)		(460	)		2,516			570			(1,441	)

Net cash flow from/(used in) financing activities		1,340			2,278			471			(3,914	)		(570	)		(395	)

Net increase/(decrease) in cash and cash equivalents		4			(39	)		(2	)		607			–			570
Cash and cash equivalents at beginning of year		–			23			(1	)		3,147			–			3,169
Effect of foreign exchange rates		7			18			–			47			–			72

Cash and cash equivalents at end of year		11			2			(3	)		3,801			–			3,811


Cash flow statement Six months ended 30 June 2017 € million	Unilever Capital Corporation subsidiary issuer			Unilever^(a) parent entities			Unilever United States Inc. subsidiary guarantor			Non- guarantor subsidiaries			Eliminations			Unilever Group
Net cash flow from operating activities		–			(14	)		(16	)		2,215			–			2,185

Net cash flow from /(used in) investing activities		(3,470	)		(680	)		(640	)		3,688			642			(460	)

Net cash flow from/(used in) financing activities		3,465			1,539			658			(4,882	)		(642	)		138

Net increase/(decrease) in cash and cash equivalents		(5	)		845			2			1,021			–			1,863
Cash and cash equivalents at beginning of year		–			6			(2	)		3,194			–			3,198
Effect of foreign exchange rates		5			(50	)		–			(156	)		–			(201	)

Cash and cash equivalents at end of year		–			801			–			4,059			–			4,860

(a)