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Chairman's Statement (continued)BOARD COMPOSITION AND SUCCESSIONACKNOWLEDGEMENTMs. Lucy Walsh completed her assignment asManaging Director on October 31, 2017, and our newManaging Director, Mr. John De Silva, was appointedon November 1, 2017. Mr. De Silva has over 20 years’multinational experience in General Management,Operations and Finance positions, having worked inTrinidad and Tobago, Jamaica, Switzerland, theDominican Republic and Mexico, and we look forwardto his leadership in the years to come.I would like to extend my thanks to all outgoingDirectors for their contribution to Unilever CaribbeanLimited, and I look forward to working with those whohave joined us during the year. Most of all, I would liketo acknowledge and thank our employees and staffwho have continued to exhibit such resilience anddedication, and of course our customers, shareholdersand stakeholders for their loyalty to our Company.In 2017, Finance Director and Company SecretaryMr. Mark Beepath left, and Ms. Nanda Persad joinedthe Board as his successor. Ms. Persad, a seasonedsenior executive, has prior work experience acrossdiverse industries, which will be an asset to UCL.Ms. Enid Blasini also stepped down as a Director ofUnilever, and her vacancy was filled by Mr. AlejandroGraterol. Mr. Graterol joined Unilever in Mexico in 2013and has garnered valuable experience in supply chainmanagement and go-to-market.8Pablo GarridoChairmanUnilever Caribbean Limited Annual Report 2017

BOARD OF DIRECTORSPABLO GARRIDONon-Executive ChairmanNationality: DominicanBA in Business, MA MarketingJoined Unilever in 1999 as a Customer ManagementDirector for the North Caribbean region. Appointed asManaging Director of Unilever Caribbean Limited,Trinidad in 2001. In 2006 appointed as Chairman forUnilever Caribbean. In 2008 relocated to Puerto Rico,as part of the New Chairman for an expanded territoryof Greater Carribbean position responsibilities. He iscurrently at the head of his own private companies.JOHN DE SILVAManaging DirectorNationality: TrinidadianExperienced FMCG Executive,Caribbean Ltd. in November 2017.joinedUnileverHas over 20 years' Multinational experience in GeneralManagement, Supply Chain Operations and Finance,having worked in Trinidad, Jamaica, Switzerland, theDominican Republic and Mexico. Held senior executivepositions including Director of a Food and Beveragebusiness in Jamaica, Caribbean business GeneralManager, and Head of Supply Chain and Operations forLatin America.John is a Fellow of the Association of CharteredCertified Accountants of the UK and an alumnus of IMDBusiness School, Switzerland.SEAMUS CLARKENon-Executive DirectorChairman Audit CommitteeNationality: TrinidadianChartered Accountant (FCCA, CA, BSc) in privatepractice in areas of Financial and Business Consulting.ROXANE E. DE FREITASNon-Executive DirectorNationality: TrinidadianB.A., Joined Unilever Caribbean Limited in 1985 andheld various positions in the areas of Marketing andCustomer Development. In 2007, she was promoted tothe position of Managing Director and in August 2012she was expatriated to the Caribbean Head office inPuerto Rico and appointed to the position of RegionalUnilever Caribbean Limited Annual Report 2017Brand Building Director. In 2015 she was appointedRegional North Export Director a position she helduntil she retired from Unilever on 31st July, 2017.Roxane was the first female Managing Director ofUnilever Caribbean Ltd and currently sits on the Boardof Directors as a Non-Executive Director, she also is aNon Executive Director of Scotia Bank Trinidad andTobago Limited, appointed in 2008.ALEJANDRO GRATEROLSupply Chain Greater Caribbean DirectorNationality: VenezuelanJoined Unilever in 2013 as Logistics and DistributionDirector Mexico and since then has held various seniorroles in different locations. MBA and MechanicalEngineer with over 15 years on international experiencein several areas of Supply Chain from Manufacturing toGo-to-Market.NANDA PERSADFinance DirectorNationality: TrinidadianSenior Level Executive with extensive finance,administration, accounting ;internal audit and mergersand acquisition experience in diverse industries andsectors across domestic, international and emergingmarkets - oil and gas, food and beverages; distributionand pest control and hygiene.She is a Fellow of ACCA, Chartered Accountant and aMember of Institute of Internal Auditors. Currentlypursuing her MBA in Finance.BRENO POLLIFinance Director Greater CaribbeanNationality: BrazilianJoined Unilever in 1999 and has held various seniorFinancial roles in different locations.Masters of Business AdministrationMechatronic Engineering.and B.Sc.JACQUELINE QUAMINANon-Executive DirectorNationality: TrinidadianAttorney at Law (LLB, MA, MBA). Experienced in areasof Banking, Finance and Corporate Law in theCaribbean.9

MANAGING DIRECTOR’S REVIEWMARKET COMMENTSSPREADSUnilever Caribbean Limited faced a difficult 2017 anddelivered Turnover of 464 million, an 18.1% declineversus the prior year. Cost containment measureswere applied to Selling, Distribution and MarketingExpenses in order to cushion the impact on the bottomline, resulting in a reduction in Profit Before Tax of68.8%. EPS was 0.40 and the Dividend yield was1.10%.In relation to our previous press notice on Unilever’sdecision to exit Spreads to accelerate sustainableshareholder value creation, Unilever has received abinding offer from KKR to purchase its global Spreadsbusiness, which includes brands such as BLUE BAND,FLORA, BECEL, COOKEEN and I CAN’T BELIEVE IT’SNOT BUTTER.The Company faced challenging economic conditionsacross the Caribbean, particularly in Trinidad andTobago, Suriname and in Barbados. Some other exportmarkets were also badly impacted by hurricanes, andthe rate of recovery has been slower than anticipated.This has adversely and dramatically impactedconsumer demand in key markets, with spendinghabits changing and consumers switching to moreaffordable product offerings.The offer is subject to certain regulatory approvals andemployee consultation in certain jurisdictions.Completion of the deal is expected by Q3 2018. Thedetailed discussions with KKR will also cover thestructure to be implemented for each jurisdiction inhow to manage manufacturing and supplyarrangements once the deal is complete.OUR PEOPLECredit controls have been reinforced and carefulmanagement of credit exposure and risk managementalso impacted sales in the latter half of 2017.Unilever’s sustainable competitive advantage willcontinue to be our People, and we continue to focus onattracting top talent and inspiring them with a purposefully aligned to the Company’s long-term values.MANUFACTURING FACILITY UPGRADEWe strive to create an inclusive workforce that createsthe diversity in thinking and perspectives thatstrengthen our business.In the second half of 2017, the Company completed theTT 54 million upgrade of its Detergents Manufacturingfacilities and commenced production of environmentallyfriendly formulations of our well-known brands,including the Market Leader, BREEZE. The newinstallation will allow us to increase our operationalefficiencies and offer these new formulations toconsumers in the local market as well as across themany export markets we serve.Focus on the markets outside Trinidad and Tobagocontinues to be a strategic priority to deliver additionalgrowth, diversification and increased foreign exchangeearnings.10I would like to thank my Unilever colleagues for thetremendous professionalism, commitment andresilience demonstrated despite the challenges faced.We have emerged stronger, more united and focusedon realising our Purpose – To Make Sustainable LivingCommonplace. We believe this is the best way to createlong-term value for all our stakeholders, especially ina volatile and uncertain world.John De SilvaManaging DirectorUnilever Caribbean Limited Annual Report 2017

EXECUTIVE LEADERSHIPJOHN DE SILVAManaging DirectorFRANCISCO NAVARRETEWarehouse, Logistics & Customer ServiceManagerNANDA PERSADFinance DirectorDONNA HAMEL-SMITHMarketing Manager Home CarePAUL WIGGANSSupply LeaderMOONIERAM MARAJExport ManagerSADIQ ALINational Sales ManagerDANIEL GONZALEZGreater Caribbean Planning ManagerUnilever Caribbean Limited Annual Report 201711

MANAGEMENT DISCUSSION AND ANALYSISOVERVIEWUnilever Caribbean Limited owns and operates amanufacturing and distribution facility located inTrinidad and Tobago. At this facility in Champs Fleurs,the Company engages in the manufacturing ofPowdered Detergents, Liquid Household Cleaners,Spreads and Margarines.A number of imports in personal care and foodsproducts from other Unilever sites across the globeare also distributed from this site. In addition tomanaging the local Trinidad and Tobago market,Unilever Caribbean Limited also holds responsibilityfor a number of export markets in the SouthernCaribbean. Sales outside of the Trinidad marketaccounted for 43% (2016: 43%) of total UnileverCaribbean Limited sales.FINANCIAL REVIEW HIGHLIGHTS Turnover declined 18.1% from 566 million to 464 million. Gross Margin declined by 453 bps moving from40.3% to 35.8%. Operating Profit decreased 68.3% from 61.6million in 2016 to 19.5 million in 2017. Profit after Tax fell by 75.4% from 42.5 million to 10.5 million. Total Earnings Per Share (EPS) was 0.40, downfrom 1.62 in 2016. Cash at bank closed at 32 million. Net asset value per share is 8.93. Debt to Equity Ratio decreased from 6.11% in 2016to 7.06% in 2017.ECONOMIES AND MARKETSUCL and its markets continue to be vulnerable toeconomic challenges, compounded by the hurricanesthat passed through the Caribbean in September 2017,Irma and Maria. Nominal rebound of oil and gas pricesassisted producers like Suriname and Trinidad andTobago, but fiscal balances in most countries in theregion continue to be weak with a worryingly highpublic sector debt. Growth in Barbados was dampenedby introduction of austerity measures to reducedomestic demand and assist fiscal stability. Touristdependent economies like St. Vincent & Grenadinesexperienced a slowdown in tourist arrivals despite theopening of a new airport and compounded by closureof Buccament Bay Resort. Grenada and St. Lucia grewnominally with developments in tourism andconstruction industries.12Our home market in Trinidad and Tobago had aparticularly difficult year, with decline across all majorchannels as the recession continues and consumersshowed increased sensitivity to price increases. WhileGDP slowed considerably, other key economicindicators also began to show weakness, withunemployment rates gradually rising amid interestrates and inflationary pressures.Export markets experienced negative growth year-onyear in most territories from continued economicchallenges across the region and natural disasters.These markets continue to be an integral part of ourbusiness and focus. The outlook for Trinidad andTobago in 2018 is positive, with economic growthanticipated in conjunction with the government’sapproach to develop new export opportunity marketsin its diversification thrust.Rising exchange rates continue to be a cause forconcern in both local and regional markets, with thescarcity of US dollars compounding the currenteconomic stagnation.OPERATING PROFITSOperating Profit in the year declined to 19.5 million,driven by the decline in Turnover. One-off loss ofrevenues associated with the cessation of payment ofour second-largest distributor in Trinidad waspronounced in second half of the year. Gross Marginswere reduced due to a decline in volumes and higherper unit conversion costs. Commodity prices werestable or softening for the most part in the year.All other costs were well managed in the year, withstrong management from other parts of business tocontrol expenses through the implementation of ZeroBased Budgeting driving savings opportunities.BALANCE SHEETUnilever Caribbean maintains a strong financialposition despite the challenges in the year. Noncurrent Assets Values increased by 28.5% ( 51.1million) driven by the intensive Capex investment in2017 related to the Potter Project (Powders plantupgrade) and the revaluation of Pension assets in Q42017 ( 17.7 million).Current assets declined by 20.8% ( 56 million), drivenby lower trade receivables due to an increased focuson cash collection and stock holding, which loweredthe inventory held at year-end. Cash was also impacteddue to a reduction in profit and the payments for thePotter Project.Unilever Caribbean Limited Annual Report 2017

Management Discussion and Analysis (continued)Current liabilities declined by 7.8% ( 12.6 million) dueto reduction in intercompany balances.There were no financing commitments at the end ofthe year, while due to related parties decreased 28%,from 74 million to 54 million.PERFORMANCE OF CATEGORIESHome CareThe Home Care business consists of PowderedDetergents, Dishwashing Liquids as well as FabricConditioners. Turnover declined by 21% vs. prior year,with declines seen across most categories and brands.A general price increase was implemented across boththe local and export markets in March. For export, themajor driver was a decline in the economic outlook inour second-largest export Home Care market,Suriname, which resulted in a sharp devaluation of thecountry's currency and caused our brands to be noncompetitive against the local competitors. Theperformance of all other markets was steady, with thehighlight being a 1% growth in Home Care turnover.SUMMARY AND OUTLOOKWe remain cautiously optimistic for a stronger year in2018, as the benefits from the investment in our factoryupgrades begin to deliver returns. Improvements andmodest growth is anticipated for the Caribbean andLatin America, with protracted recovery in thehurricane-impacted islands.In addition, there are some risks for countries withupcoming elections, which may impact economic andpolicy uncertainties.Foreign exchange depreciation will continue to impactthe input costs across the business.UCL will adopt strategic measures to mitigate theserisks whilst improving resilience on multiple ent and environment preparedness, buildingon our foundation and agility.Personal CareThe Personal Care category comprises Hair Care,Deodorants, Oral Care, Skin Cleansing, and Hand &Body Care. Turnover in this category declined by 24.7%in the year, mainly due to the prevalence of paralleltrade in both local and Caribbean territories.FoodsThe Foods portfolio of the Company comprises Spreadsand Cooking Aids, Dressings and Savoury. Thiscategory declined by 9.7%, with price increases inMarch for both local and export channels to compensatefor increasing commodity costs. In export, sales havebeen affected by the economic issues in the Surinamemarket, specifically regarding the Becel brand. Thecore brands of Blue Band and Golden Ray have alsoexperienced a decline against 2016 sales, albeit at alower level.RefreshmentsThe refreshment category includes Teas and Ice Creambrands, which declined 11%. However, there was 46.7%improvement in the Ice Cream business, which helpthe overall performance of the category.Unilever Caribbean Limited Annual Report 201713

DIRECTORS' REPORTFINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017 ’000Turnover464,042Profit before taxation19,163Taxation8,693Profit after taxation10,470Other comprehensive income14,342Total comprehensive Income for the year24,812DividendsFinal dividend for 201626,244Profit retained for the year(1,432)Retained earning brought forward173,865Retained earning carried forward172,433Changes to the BoardRe-Election of DirectorsOn 31st October 2017, Ms Lucy Walsh, ManagingDirector, ended her tenure in Trinidad. We would like tothank Ms. Walsh for her effort and contributionstowards the organization and we wish her the very bestin her future endeavours. Mr. John De Silva wasappointed to the Board on 1st November 2017, fillingthe vacancy left by Ms. Walsh as Managing Director.To re-elect Mr. John De Silva, Ms. Nanda Persad, Mr.Alejandro Graterol and Mr. Breno Polli under section4.3.1. of By-Law No 1 for a period ending at the close ofthe third Annual Meeting of the Shareholders of theCompany following their election.On 18th October 2017, Ms. Nanda Persad was appointedto the Board as Finance Director/Company Secretary,to fill the vacancy of Mark Beepath who resigned on25th May 2017. Additionally, on 18th October 2017,Mr. Alejandro Graterol was appointed to the Boardfilling the vacancy left by Ms. Enid Blasini as RegionalSupply Chain Director on 31st July 2017.14To elect Ms. Nuria Hernandez Crespo under section4.3.1 of By-Law No 1 for a period ending at the close ofthe third Annual Meeting of the shareholders of theCompany following her election.AuditorsThe Auditors, KPMG, retire at the Eighty-Ninth AnnualGeneral Meeting, and being eligible, offer themselvesfor re-election.Unilever Caribbean Limited Annual Report 2017

DIRECTORS’ AND SUBSTANTIAL INTERESTSDIRECTORS’ SHAREHOLDING AS AT DECEMBER 31, 2017NamesPositionHoldingNanda PersadFinance DirectorRoxane De-FreitasNon-Executive DirectorBreno PolliGC Finance Director0Alejandro GraterolGC Supply Chain Director0Jacqueline QuaminaNon-Executive Director0John De SilvaManaging Director0Seamus Joseph ClarkeNon-Executive Director0Pablo GarridoChairman001,000SUBSTANTIAL INTEREST AS AT DECEMBER 31, 2017Totalshares heldHolding%Unilever Overseas Holdings AG13,123,19450.01RBC Trust Limited – All Accounts4,271,33216.28Totalshares heldHolding%SHAREHOLDING MIX AS AT DECEMBER 31, 2017Size of shareholdingNumber ofshareholdersUp to 10041622,0820.08101 to 500888238,3820.91501 to 1,000357269,3231.031,001 to 5,000395926,7363.535,001 to 56316,070,71061.242,27026,243,832100.0010,001 to 100,000100,001 to 1 000,000Over 1 000,000TOTALOn behalf of the Board,Seamus ClarkeDirectorUnilever Caribbean Limited Annual Report 2017John De SilvaDirector15

NOTICE OF ANNUAL MEETINGTO ALL SHAREHOLDERSNotice is hereby given that the Eighty-Ninth Annual General Meeting of Shareholders of UnileverCaribbean Limited will be held in the Port of Spain ballroom of the Hyatt Regency Hotel, #1Wrightson Road, Port of Spain on Thursday 24 May, 2018 at 2:00 p.m. for the following purposes:ORDINARY BUSINESS1.To receive and consider the Report of the Directors and Auditors, and the FinancialStatements for the year ended 31 December, 2017.2.To elect and re-elect Directors.3.To appoint Auditors, KPMG and authorise the Directors to fix their remuneration for theensuing year.RECORD DATEThe Directors have fixed Friday 27 April, 2018 as the Record Date of shareholders entitled toreceive notice of this meeting.DIVIDEND ANNOUNCEMENTOn 29 March, 2018 the Board of Directors of

to the Unilever Sustainable Living Plan, to which we in the Caribbean also adhere in order to make our Company more sustainable, regardless of the overall economic ups and downs that affect us. Also in 2017, Unilever Group announced the intention to divest the spreads busines