COMPANY BACKGROUND

Unilever Company

Unilever is a British multinational company which is headquartered in London, England. It was founded
on 2 September 1929 by Lever Brother Branch ( William Lever, Leverhulme, James Darcy Lever ) and
Margarine Unie Line ( Samuel van den Bergh, Georgе Schicht, Singrose ). Unilever was a company that
produces product such as food, confections (candy), energy drinks, baby food, soft drinks, cheese, ice
cream, tea, cleaning agents, instant coffee, pet food, bottled water, toothpaste, chewing gum, frozen
pizza, pregnancy tests, juice, margarine and spreads, beauty products, personal care, breakfast cereals,
pharmaceutical, and consumer healthcare products. All of these products are available in 190 countries.

In Malaysia, the Uniliver Company was founded 74 years ago in 1947. On 30 May 2004, the STAR
newspaper said Ng as the Chairman Of Unilever Malaysia in 1991 began his career as a marketing
trainee. He said Malaysians aren't eating ice cream that much as other Asians which is one of the
challenges from their start-up company. This is because, ice – cream was one of their product and also
famous in Europe during that time. He also said their biggest challenge is to keep on driving for growth
through their major brands and keep on developing their business in Malaysia. Before he works in
Malaysia, Ng work in Hong Kong, China also Singapore and involved in the start-up company. During
1991, Unilever has 13 brands in Malaysia which are only a part of 400 brands worldwide. One of the
brands that establish in 2021 is Planta Margarine also a shampoo brand such as Sunsilk.

In Malaysia , Unilever Company CEO is Annemarieke de Haan. She is the Managing Director for Unilever
Malaysia and Singapore and Chairman for Unilever Malaysia Holdings. She has served the company for
20 years and has worked in different countries, such as the Netherlands, France, Indonesia, Malaysia,
and Japan. Unilever Malaysia headquarters located at Level 34, Menara Telekom, Jalan Pantai Baru,
59200 Kuala Lumpur with 350 employees. They also have 12 branch around Malaysia such as Perak ,
Sarawak , Sabah , Melaka , Johor and Kuala Lumpur. The product was divide into 3 divisions which are
Food & Refreshment, Home Care, and Beauty & Personal Care. All of these products have 8 major
brands in Malaysia nowadays such as Coca – Cola, Nestle also sun silk.

Finally, Unilever Company has accomplished as the No. 1 corporate sustainability leader for the tenth
year in a row, according to the latest Globe Scan - Sustainability survey. Unilever Company now was the
fourth largest consumer company in the world with 58.21 Billion US dollars or RM 174.63 Billion sales
during 2019. This data shows that Unilever's product has been attracted by many consumers around the
world even we know 2019 has the global issue which is Covid – 19.

2. REGARDING THE ANNUAL REPORT OF UNILEVER 2018

a. DESCRIVE FIVE ( 5 ) CORPORATE GOVERNANCE APPLY BY THE COMPANY.

CORPORATE GOVERNANCE MEANING

Corporate governance is the system of rules, practices, and processes through which a business is
governed and controlled. Corporate governance is essentially about balancing the interests of a
company's many stakeholders, including shareholders, senior management, customers, suppliers,
financiers, government, and the community.

Corporate governance also provides the framework to meet the company's goals. It encompasses
virtually and physically every aspect of management, from action plans and internal controls to
performance measurement and general disclosure. Moreover, the company's board of directors is the
primary force influencing corporate governance. Good corporate governance can give a true and fair on
the company's reliability, integrity, and transparency, which can impact its financial health.

i. Board Responsibilities

Firstly, the board has ultimate responsibility for the management, general affairs, direction,
performance, and long-term success of other businesses as a whole. Director responsibility is structural
and constitutional matters, corporate governance, approval of dividends, approval, and monitoring of
overall strategy for the Unilever Group, approval of significant transactions or arrangements about
mergers, acquisitions, joint ventures, and pensions.

After that, the director or CEO's responsibilities to the Board Of Shareholder about the operational
running of the Group and other powers delegated to him by the Boards. The CEO can delegate any of his
powers and discretions, and he does so delegate to members of the Unilever Leadership Executive (ULE)
(with power to sub-delegate). The ULE is composed of the CEO, CFO, and other senior executives who
assist the CEO in the discharge of the powers delegated to the CEO by the Boards.

ii. Board Committees

The Boards have established four Board Committees: Audit Committee, Compensation Committee,
Corporate Responsibility Committee, and the Nominating and Corporate Governance Committee.

a. Audit Committee

The Audit Committee comprises a minimum of three Non-Executive Directors. The committee assists the
Board in fulfilling their oversight responsibilities in respect of the integrity of Unilever's financial
statements, risk management and internal control arrangements, compliance with legal and regulatory
requirements, the performance, qualifications, and independence of the external auditors. The policy on
work that can and cannot be performed by the external auditors and the compliance thereof and the
performance of the internal audit function. The committee is also responsible for making
recommendations to the Board of the compensation payable to the external auditors.

b. Compensation Committee
The Compensation Committee comprises a minimum of three Non-Executive Directors ( other than the
Chairman who may be appointed as an additional member ). The committee reviews the remuneration
of the Executive and Non-Executive Directors and Unilever Leadership Executive. It also has
responsibility for the design and terms of executive and all employee share-based incentive plans and
the remuneration policy for the Unilever Leadership Executive and Senior Corporate Executives. The
committee is also concerned with the performance evaluation of the Unilever Leadership Executive.

c. Corporate Responsibility Committee

The Corporate Responsibility Committee is a conduct of the responsibility global business. As the
Unilever Sustainable Living Plan (USLP) is the heart of Unilever’s vision to grow its business whilst
decoupling its environmental footprint from its growth and increasing its positive social impact, the
Committee tracks the progress and potential risks associated with the USLP. The Committee is also
charged with ensuring that Unilever’s reputation is protected and enhanced.

Therefore a central element of its role is the need to identify any external developments that are likely
to have an influence upon Unilever's standing in society and to ensure that appropriate and effective
communications policies are in place to support the company's reputation. The Committee's discussions
are informed by the experience of the senior leaders that share their views on a variety of topics and
external trends. Many of these leaders are members of the Unilever Sustainable Living Plan Steering
Team, the group of senior executives accountable for driving sustainable growth through Unilever’s
brands and operations.

Lastly, The Committee’s responsibilities are complemented by the Audit Committee, which is
responsible for reviewing significant breaches of the Code of Business Principles as part of its remit to
review risk management and for overseeing the independent assurance programmed for the USLP.
These are ensuring that the Committee stays abreast of current and emerging trends and any potential
risks arising from sustainability issues. This enables to help the Boards to draw on a well-rounded view
of issues.

d. Nominating and Corporate Governance Committee

The Nominating and Corporate Governance Committee are responsible for evaluating the balance of
skills, experience, independence, diversity, and knowledge on the Boards and for drawing up selection
criteria, ongoing succession planning, and appointment procedures for both internal and external
appointments.

According to Unilever's corporate governance requirements in the UK and as a foreign private issuer in
the US, Unilever constantly keeps its corporate governance arrangements under review and compliance
with these requirements that are detailed within the corporate governance section of the latest annual
report and accounts. They conduct the operations following internationally accepted principles of good
governance and best practice, whilst ensuring compliance with the corporate governance requirements
applicable in the countries they operate.

iii. Role of Chairman, Chief Executive Officer, and Chief Financial Officer.
First of all, this topic is about the segregation responsibilities of Non-Executive Officer and Executive
Officer Also Financial Officer. The Non-Executive Director is called as Chairman which is provided in the
Article of Association. The Chief Executive Officer is primarily responsible for the day-to-day
management of the Company. And lastly is Financial Officer which running of all the finance activities of
a company.

Firstly, is the Non-Executive Officer which is called as Chairman. Chairman provides leadership and
governance of the Board to create the conditions for overall Board and individual Director’s
effectiveness and ensures that all key appropriate issues are discussed by the Board on time. Besides
that, he also evaluates an effective relationship and open communication that allows constructive
debates and challenges both inside and outside the boardroom, between Non-Executive Directors and
Executive Director. Lastly, Chairman ensures the smooth functioning of the Board and its governance
structure and inculcates positive culture in the Board. He ensures that the procedures and processes are
in place to facilitate the effective conduct of business by the Board.

The second is Chief Executive Officer which is known as CEO. The CEO is responsible for the day-to-day
management of activities following the corporate plans and budgets approved by the Board. He was also
responsible to ensures that the management gives appropriate priority in providing reports to the Board
which contain relevant, accurate, timely, and clear information necessary for the Board to fulfill its
duties. Lastly leads the communication with the stakeholders including shareholders also ensures that
the Board especially the Chairman is alerted to forthcoming complex, contentious or sensitive issues
affecting the Company.

Lastly is Chief Financial Officer which is called CFO. CFO responsibility is related to the company's
financial activities such as financial analysis and the company working capital also long-term financing.
The CFO also obtains and uses the resources to maximize the company's profit. He also provides the
future planning and development of financial in the company and considers the conservation and
efficiency to improve the contribution margins. He also analyzes long-term financing activities and
assists in determining the acceptance or rejection of the activities.

iv. Board Meetings

The Chairman sets the Boards' agenda, ensures the Directors receive accurate, timely, and clear
information, and promotes effective relationships and open communication between the Executive and
Non-Executive Directors. A minimum of five face-to-face meetings is planned throughout the calendar
year to consider important corporate events and actions. For example, the half-year and full-year results
announcements of the Unilever Group, the management and approval of the overall strategy of the
Unilever Company oversight of the performance of the business and review of the risks and internal risk
also the management and control systems, authorization of major transactions, declaration of dividends,
and review of corporate responsibility and sustainability, in particular the Unilever Sustainable Living
Plan.
v. Director Induction And Training

All new Directors need to participate in a comprehensive induction program when they join the Boards.
The Chairman ensures that ongoing training is provided for Directors by the way of site visits,
presentations, and circulated updates between the Board and also in the Board Committee meetings
among other things such as environmental, social, corporate governance, regulatory developments, and
investor relations matters. For example, in 2018 the Directors received presentations on Information
Security, Digital, the Supply Chain, and Simplification.
b. EXPLAIN THREE(3) COMPONENTS OF FINANCIAL STATEMENTS FROM THE COMPANY SELECTED.

1. REVENUE AND EXPENDITURE

According to MASB 9 – Revenue is defined as The Gross Inflow Of Economics