Unilever

150 million times a day, someone somewhere chooses a Unilever product

Two key strengths: strong roots in local markets, world class business expertise applied internationally to serve consumers everywhere Focusing on performance and productivity

HISTORYUnilever was created in 1930: Lever Brothers+ Margarine UnieIn the 30’s Unilever introduced improved technology to the businessParent companies: Unilever NV, Unilever PLCCorporate centres: London, Rotterdam

Unilever today

• Worldwide turnover: 49000 million Euro

• Research and development: 1200 million Euro

• Community programs: 69 million Euro

• The exports decreased in 2002

• They rose till 2006 and again dropped in 2007

• They rose till 2009 and then again dropped, so the exports are very volatile

UNILEVER NYSE

HUL : SENSEX

CURRENCY RISK

• Unilever is subject to risk from changes in foreign currency value that could affect earnings

• Unilever believes that most currencies of major countries in which it operates will equalize against the euro over time

• Unilever has a foreign exchange policy to manage foreign exchange exposure through the use of forward foreign exchange contracts

• Depending on potential income statement stability volatility that can be caused by the fair movement of the Derivative they decide whether to apply cash flow Hedging.(At the end of ‘07 there was no material exposure from companies holding assets and liabilities other than their functional currency)

• Unilever is subject to exchange risk due to exchange risk due to the affects of exchange rates on translation of underlying net assets of foreign currencies

• Unilever aims to minimize its foreign exchange exposure in operating companies by borrowing in the local currency, except where inhibited by local regulations, lack of local liquidity or local market conditions.

Currency Revaluations on unhedged investments will trigger exchange translation movements in the balance sheet.

Hedging Policy

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