University Report: Annual Report Analysis of Unilever

This report provides a comprehensive analysis of Unilever's annual report, evaluating its performance across various aspects of its value framework. The analysis delves into Unilever's business model, governance structure, risk management strategies, and financial assets, offering insights into its operational and economic performance. The report examines key elements such as customer relations, people and culture, brands, intellectual assets, supply chain, and innovation. It assesses Unilever's reporting practices, including the extensiveness, accessibility, and comprehensiveness of information provided in the annual report. The analysis highlights the company's strategic objectives, environmental and social impact, and segmental performance, providing a holistic view of Unilever's operations and its alignment with integrated reporting frameworks. The report also identifies limitations, such as the potential impact of varying reporting standards across different operating environments.

Running head: ANNUAL REPORT ANALYSIS OF UNILEVER
Annual Report Analysis of Unilever Company
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1ANNUAL REPORT ANALYSIS OF UNILEVER
Table of Contents
1. Executive Summary.........................................................................................................3
2. Unilever Value Framework Elements.............................................................................4
2.1. Business Model.........................................................................................................4
2.2. Governance...............................................................................................................5
2.3. Risk Management.....................................................................................................7
2.4. Remuneration............................................................................................................8
2.5. Financial Assets......................................................................................................10
2.6. Physical Assets.......................................................................................................11
2.7. Customers...............................................................................................................12
2.8. People and Culture..................................................................................................13
2.9. Brands and Intellectual Assets................................................................................14
2.10. Process and Supply Chain....................................................................................15
2.11. Operational Performance......................................................................................16
2.12. Economic Performance.........................................................................................17
2.13. Social....................................................................................................................18
2.14. Environmental.......................................................................................................19
2.15. Segmental.............................................................................................................20
2.16. Innovation.............................................................................................................21
2.17. Strategy and Objectives........................................................................................22

2ANNUAL REPORT ANALYSIS OF UNILEVER
3. Reporting and Material Matters.....................................................................................23
References..........................................................................................................................25

3ANNUAL REPORT ANALYSIS OF UNILEVER
1. Executive Summary
Value framework of Unilever Company explains that internal and external decision making
needs connected and complete data for developing sustainable value generation along with
supporting decisions regarding recent performance and future prospects of the company. The
results of the analysis revealed that both breadth and depth disclosure is consistent with the
company’s framework. Moreover, increased performance disclosure exists in the area of
strategic elements (strategy, business model, risk and governance) and performance elements
(segmental and economic). The paper analyzed the annual report disclosure of Unilever focusing
on alignment to integrated reporting framework of Unilever, comprehensiveness and
accessibility. However, the paper had certain limitations that encompass:
 The quality and nature of performance reporting will be distinct in several nations,
operating environments and industries.
 The annual report is a public document that can be followed by market competitors and
more the reporting level; more will be competitive advantages risk.

4ANNUAL REPORT ANALYSIS OF UNILEVER
2. Unilever Value Framework Elements
2.1. Business Model
Reporting Critique: Framework of the business model explains that the Uniliver generates
value in consideration to focused on interlinked performance as[pects.
Extensiveness and Accessibility: Business model of Unilever Company is explained through
the diagram above that can be easily referred to. Corporate responsibility and governance is also
indicates that additional information regarding all the aspects of the business model such as
consumer insight, sales, collaboration and marketing (Cheng et al., 2014).

5ANNUAL REPORT ANALYSIS OF UNILEVER
Comprehensiveness: The business model of Unilever Company is explained accurately within
the report. This model explains several performance aspects in order to attain the sustainable
growth objective.
2.2. Governance
Reporting Critique: Unilever Company’s governance framework explained the company’s
corporate governance information, strategies to mitigate risk and explains the way in which the
company remunerates its executives. Reporting process of the company is highly transparent.

6ANNUAL REPORT ANALYSIS OF UNILEVER
Extensiveness and Accessibility: Information and transparency depth is observed in Unilever
Company’s Corporate Governance Report that explains the way in which corporate governance
structure demonstrated the level of responsibility towards its investors and provides transparency
to all its readers.
Comprehensiveness: Level of transparency within Unilever Company is deemed to be high as
the corporate governance report of the company is in compliance with suitable code of conduct.
Annual remuneration report and directors’ responsibility report explained the major concerns and
community along with carrying out amendments in board constitution (Fried, Holtzman & Mest,
2014).

7ANNUAL REPORT ANALYSIS OF UNILEVER
2.3. Risk Management
Reporting Critique: Risk management framework aspect of Unilever explains the risk aspects
and its description regarding brand preference, sustainability, portfolio management along with
consumer relationships.
Extensiveness and Accessibility: Principal risks and its description regarding Unilever
Company is explained on page 44 of the annual report that has offered readers with updates
regarding product segment. Major risks of the Company are explained in the form of the tables
and charts along with risk description. 10 major risks are explained in the annual report that

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ex[plains the business and performance of the company along with explaining ways to mitigate
risks.
Comprehensiveness: Considering the risk description of Unilever Company the report has
explained major uncertainties and risks. The report has described the company’s strategic
objective, risk description, qualitative business impact description along with potential impact of
the principal risks (Haller & Van Staden, 2014).
2.4. Remuneration

9ANNUAL REPORT ANALYSIS OF UNILEVER
Reporting Critique: The annual report of Unilever Company explains the remuneration
framework element and explains the metrics based on which all its executives are rewarded.
These metrics includes impact on business and value offered to the company.
Extensiveness and Accessibility: The director’s remuneration report is explained in page
number 66. The report has maintained integrity of the company’s website that is audited. The
remuneration report explained the strategic links of rewards to performance of business (Hiller,
2013).
Comprehensiveness: Remuneration report of Unilever Company is observed to remain linked
with value objectives of the company. This report clearly explained aspects such as benefits
offered, salary, pension, share performance plans and annual incentives offered to the employees
every year.

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2.5. Financial Assets
Reporting Critique: Financial assets report of Unilever Company explains its financial health
and financial assets value including debt, securities and financial instruments.
Extensiveness and Accessibility: Financial assets are explained in the balance sheet of the
company and it explains increased information on the policies of financial assets, debt terms
along with other financial assets.
Comprehensiveness: From the financial asset section of the Unilever annual report it is gathered
that financial assets are not communicated properly and measured within the annual report and in

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an elaborated manner. Financial asset explanation does not clarify the performance of the
company.
2.6. Physical Assets
Reporting Critique: Reporting of financial assets in the annual report of Unilever focuses on
efficiency of the assets, future values along with asset book value disclosures.
Extensiveness and Accessibility: Physical assets framework explanation in the annual report of
Unilever is prepared in adherence to the set accounting policies. This section o the annual report
explained asset recognition techniques along with financial situation of the company.
Comprehensiveness: Physical assets of Unilever are observed to adhere with the quality
standards of “Physical assets information”. However, reporting of physical assets of Unilever
Company provided good value to all its investors but the such reporting lacks depth (Larson &
Ringholm, 2014).