Treasury Risk Management (Tables)

12 Months Ended

Dec. 31, 2018

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
Undiscounted cash flows	Note		Due within 1 year			Due between 1 and 2 years			Due between 2 and 3 years			Due between 3 and 4 years			Due between 4 and 5 years			Due after 5 years			Total			Net carrying amount as shown in balance sheet
2018
Non-derivative financial liabilities:
Bank loans and overdrafts				(529	)		(12	)		(1	)		(278	)		—			—			(820	)		(814	)
Bonds and other loans				(2,888	)		(2,748	)		(2,572	)		(2,646	)		(2,387	)		(14,090	)		(27,331	)		(23,391	)
Finance lease creditors		20		(20	)		(19	)		(18	)		(17	)		(17	)		(96	)		(187	)		(128	)
Other financial liabilities				(149	)		(1	)		—			—			—			—			(150	)		(150	)
Trade payables, accruals and other liabilities		14		(13,945	)		(140	)		(10	)		(5	)		(4	)		(14	)		(14,118	)		(14,118	)
Deferred consideration				(14	)		(79	)		(70	)		(6	)		—			(45	)		(214	)		(187	)

				(17,545	)		(2,999	)		(2,671	)		(2,952	)		(2,408	)		(14,245	)		(42,820	)		(38,788	)

Derivative financial liabilities:
Interest rate derivatives:
Derivative contracts – receipts				67			760			163			788			37			1,406			3,221
Derivative contracts – payments				(23	)		(756	)		(138	)		(797	)		(17	)		(1,423	)		(3,154	)
Foreign exchange derivatives:
Derivative contracts – receipts				17,108			—			—			—			—			—			17,108
Derivative contracts – payments				(17,317	)		—			—			—			—			—			(17,317	)
Commodity derivatives:
Derivative contracts – receipts				—			—			—			—			—			—			—
Derivative contracts – payments				(74	)		—			—			—			—			—			(74	)

				(239	)		4			25			(9	)		20			(17	)		(216	)		(542	)

Total				(17,784	)		(2,995	)		(2,646	)		(2,961	)		(2,388	)		(14,262	)		(43,036	)		(39,330	)

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	)

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
	Due within 1 year			Due between 1 and 2 years			Due between 2 and 3 years			Due between 3 and 4 years			Due between 4 and 5 years			Due after 5 years			Total			Net carrying amount of related derivatives^(a)
2018
Foreign exchange cash inflows		3,426			—			—			—			—			—			3,426			—
Foreign exchange cash outflows		(3,435	)		—			—			—			—			—			(3,435	)		14
Interest rate swaps cash inflows		103			795			433			1,158			525			1,406			4,420			—
Interest rate swaps cash outflows		(23	)		(756	)		(347	)		(1,147	)		(464	)		(1,423	)		(4,160	)		(199	)
Commodity contracts cash flows		(74	)		—			—			—			—			—			(74	)		(74	)
2017
Foreign exchange cash inflows		3,510			—			—			—			—			—			3,510			—
Foreign exchange cash outflows		(3,536	)		—			—			—			—			—			(3,536	)		(8	)
Interest rate swaps cash inflows		349			64			727			50			753			1,380			3.323			—
Interest rate swaps cash outflows		(319	)		(19	)		(753	)		(19	)		(797	)		(1,440	)		(3,347	)		(351	)
Commodity contracts cash flows		(19	)		—			—			—			—			—			(19	)		(7	)

^(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 2018			€ million 2017
Cash and cash equivalents		3,230			3,317
Current other financial assets		874			770
Current financial liabilities		(3,235	)		(7,968	)
Non-current financial liabilities		(21,650	)		(16,462	)

Net debt		(20,781	)		(20,343	)
Of which:
Fixed rate (weighted average amount of fixing for the following year)		(21,586	)		(16,216	)

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 2018
Foreign exchange derivatives
Fair value hedges		—		—			—			—			—			—
Cash flow hedges		39		—			(25	)		—			—			14
Hedges of net investments in foreign operations		—		58	^(a)		—			(21	)^(a)		—			37
Hedge accounting not applied		42		67	^(a)		(41	)		(105	)^(a)		—			(37	)
Cross-currency Interest rate swaps
Fair value hedges		—		—			—			—			—			—
Cash flow hedges		—		69			—			—			(268	)		(199	)
Hedge accounting not applied		—		—			—			—			(8	)		(8	)
Commodity contracts
Cash flow hedges		—		—			(74	)		—			—			(74	)
Hedge accounting not applied		1		—			—			—			—			1

		82		194			(140	)		(126	)		(276	)		(266	)

		Total assets		276			Total liabilities						(542	)		(266	)

31 December 2017
Foreign exchange derivatives
Fair value hedges		—		—			—			—			—			—
Cash flow hedges		32		—			(40	)		—			—			(8	)
Hedges of net investments in foreign operations		—		9	^(a)		—			(103	)^(a)		—			(94	)
Hedge accounting not applied		13		73	^(a)		(54	)		35	^(a)		—			67
Cross-currency 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	)

^(a)	Swaps that hedge the currency risk on intra-group loans and offset ‘Hedges of net investments in foreign operations’ are included within ‘Hedge accounting not applied’. See below for further details.

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

Net amounts

recognised

of financial

Gross

financial

assets

amounts of

assets set

presented

recognised

off in the

in the

Cash

financial

balance

Financial

collateral

As at 31 December 2018

assets

sheet

instruments

received

Net amount

Derivative financial assets

339

(63

)

276

(164

)

(10

)

102

As at 31 December 2017

Derivative financial assets

276

(103

)

173

(108

)

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

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

Related amounts not set

off in the balance sheet

€ million

Gross

amounts of

Net amounts

recognised

of financial

Gross

financial

liabilities

amounts of

liabilities set

presented

recognised

off in the

in the

Cash

financial

balance

Financial

collateral

As at 31 December 2018

liabilities

sheet

instruments

pledged

Net amount

Derivative financial liabilities

(605

)

(542

)

164

—

(378

)

As at 31 December 2017

Derivative financial liabilities

(637

)

103

(534

)

108

—

(426

)