We are about to hand over to Unilever to begin the conference call. [Operator Instructions] We will now hand over to Mr. James Allison.

Well, good morning, and welcome to Unilever's fourth quarter and full year results presentation. It's only been 6 weeks since our Annual Investor Conference here in London, and based on feedback that we've had from many of you, we've decided to keep things efficient for you and for us by using the conference call and webcast format for the presentation rather than invite you all back here again quite so soon. As ever, we will make sure that we leave plenty of time for all of your questions at the end. The presentation of our results this morning will be given by Paul and Jean-Marc. Paul is going to share his reflections on the year as a whole. Jean-Marc will then cover the financial performance, and Paul will finish by highlighting some of the areas where we want to step up our performance in 2014 and beyond. As usual, I draw your attention to the disclaimer relating to forward-looking statements and non-GAAP measures. And with that, let me hand over to Paul for his opening remarks.

Thank you, James, and happy New Year to everybody. I hope it will be rewarding and a healthy one. Let me start with my perspectives on 2013. I will summarize it as another good year, consistent, profitable and competitive top and bottom line growth. We again delivered against the priorities we set out. We grew our markets -- we grew ahead of our markets with 4.3% USG. That's about 55% of our business building share. We also improved core operating margins again this time by 40 basis points, with 110 basis point increase in gross margins. That's the highest since over a decade. We delivered strong cash flow of nearly EUR 4 billion, thanks to a further improvement in working capital and control of capital spend. This, together with strong discipline around tax, capital management and an increased shareholding and listings of our subsidiaries, translated into double-digit EPS growth in constant currencies. Now the quality of growth is good. We again increased investment behind our brands by moving our support up by EUR 460 million. Strong brands are getting stronger, and we now have 15 brands with EUR 1 billion or more in turnover. That's up from 11 only 5 years ago. This year, we actually welcome Signal to the list. We also continue to invest in building organizational capabilities. We see opening of the state-of-the-art Singapore training center, the Personal Care Pit [ph] Center in London, which you saw, as well as the further rollout of our world-class manufacturing program. Finally, divestitures and minor acquisitions further strengthened our portfolio. Whilst business conditions in the last 4 years went easy, 2013 was even more challenging as the world continues to face a series of political, economic, social and environmental uncertainties. Some of these were foreseen, but many were not, like…

Thank you, Jean-Marc. Let me finish by looking ahead. At our investor event last month, I set out the areas where we will be stepping up our performance. I won't repeat everything I said, but let me just remind you of some of the headlines. As you have seen, we are delivering consistent, competitive and profitable top and bottom line growth underpinned by the pillars we've put in place: innovation, mix management, operational excellence and organizational capabilities. However, competition is not sitting still nor is the economic environment getting easier, and we need to continue to set the bar higher. First, we need to ensure we maintain agility and speed. In this increasingly volatile environment, there is a premium on moving fast. There is still too much complexity in the business that is not adding value and, finally, slowing us down. It also results in incremental cost that is better spent building our brands and innovations. We're taking actions on several fronts. With Project Half, we're streamlining major processes, clarifying decision rights and reducing layers. For example, we're rationalizing our tail of smaller SKUs, targeting a reduction of 30%. Once we have done that, we will go after a further 10%. There's also a lot of duplication effort in managing our product formulations and the specifications of our ingredients and packaging in multiple systems. We're implementing a single system to manage all of these across the full life cycle of our products, from initial design to the changes and improvements we make once in market, which will allow us to significantly increase productivity and reduce headcount. We're also sharpening our marketing function, which is absolutely central to everything we do. With an approach tailored to the global local needs for each of the 4 categories, we can greatly simplify the…

Okay. Thank you, Paul. Thank you, Jean-Marc. [Operator Instructions] So thanks, and let's get started with Warren Ackerman. Warren?

Warren Ackerman here of SocGen. Two questions. The first one is on Refreshment, obviously, the underlying growth negative in Q4. So the question is when would you expect that to be back into positive territory? I know you're reducing SKUs in ice cream, and you've said 30% globally. Is that going to be a drag in other categories as well going forward? And then just secondly, on the U.S., Paul, you mentioned, at the Q3 stage, it was a bit disappointing, especially U.S. Foods, which was down 3%. And you also talked about high levels of promotional activity in hair care and also in deos. Could you kind of flesh out what you saw in Q4 in those categories? And what's happened to your market shares in the U.S.?

Yes. Let me -- I'm writing it down. Let me start with Refreshments probably first. Just taking a step back, this category has grown cumulatively over 5% over the last 5 years. We continue to have strong growth in the emerging markets, and our Lipton brands actually, which is obviously a core part of this category, has continued year after year now to improve its performance and again in 2013. So I think we're well on our way to building a good and profitable business. In fact, over the last 5 years, the Refreshment business has grown close to 20% and added actually market share over that category. The last 6 months of this year have been characterized by 2 things, and one of them actually refers to the U.S. as well. It's -- the first thing is the unfortunate Ades recall, which you will see in the numbers over the second half mainly. After the first quarter, we will actually -- how do you call that? Raoul Jean-Marc Sidney Huët: Lap.

Lap it and get better again. But unfortunately, we had a clean out on the lines. We've made some mistakes by an operator there. Some cases were shipped that created an -- not dangerous, but an uncomfortable feeling in the mouth, and we had to recall. And our business has been down significantly. The other factor is our ice cream business. As I've mentioned to you before, our ice cream business is now really focused on improving the return on capital. It actually is helping as well. You see that in these results that Jean-Marc just took us through. The return on capital employed is again up significantly for the company. I want to keep it that way. And the main culprit, if I may say, which the market hasn't functioned on as much as I would have liked to, is actually ice cream. So we have rationalized the number of cabinets that we've put out there. We are rationalizing the number of unprofitable SKUs. As it happens, a lot of that is actually in the U.S. at this point in time. We have not been bidding on some of the things, like -- Dollar General would be a good example. We've taken unprofitable SKUs out of retail and debt restructuring -- we could have reported if you want to, and continued to show the things but this is the new balanced Unilever that we want to show you. And it also means that we're just taking the right decisions when they are right to be taken. And that is what America is going through. If I take a broader perspective on the U.S. business, we don't really see the markets growing. The good thing in the U.S. is actually that our Personal Care business is growing share in 100% of our business over 2013, and 59% or nearly 60% of our North American business is gaining share. We see healthy growth in hair, where we have extended our market leadership. We see the same happening in other categories, like hand and body or in personal cleansing. So we feel very good that, that business is healthy. On the Food side -- I've talked about Refreshments. On the Food side, we're obviously there as well, addressing our spreads business, which is dragging us down. And the rest of our Food business is relatively minor. I don't expect the U.S. to show significant changes in the market in 2014, if I may be honest. The -- unfortunately, the growth that you see in the U.S. and where some people get excited and positive about is not widespread enough to be of significant influence to our business.

Thanks, Warren. We have Eileen Khoo next. Eileen?

Eileen Khoo here from Morgan Stanley. Two questions, please. The first one is on the 3% to 5% run rate that you mentioned for the year. I was just wondering if you can clarify if this is what you expect for Unilever's own run rate. Or were you talking about the underlying market's run rate because -- given that consensus is already at just under 5% for the full year? Would you be saying then that you think market expectations are already at the high end of your own targets? And then the second question then is on the rollout of the Alberto Culver brands. Clearly, the benefits are a lot from distribution gains. Is that still much more to do in terms of rolling out the brands into new markets? Or should we expect the distribution gains to start moderating from here?

Yes, if I may start -- thanks for the questions. If I may start with the last part, which is Alberto Culver. Obviously, that acquisition has done extremely well for us. I know that some of you were skeptical at the time we did the acquisition for EUR 3.6 billion and felt that we overpaid. Let me reassure you that it already nearly has paid out 2 years after we made the acquisition, tremendous success in Brazil with the TRESemmé launch but also with launches like Simple in the U.S., which is continuing to grow share period after period, very well positioned in this market. We've also expanded TRESemmé to some other markets like India and Thailand and are seeing progress there as well. We think it has still a lot of legs to stand on and to expand in many other countries, but we'll obviously keep you informed as we do that. At the same time, I want to stress it has been a tremendous engine, amongst other things, for our global hair care business, where we continue to outgrow our competitors. You see the overall growth of Personal Care of 7.3% again mainly driven in the emerging markets, mainly driven by our strong businesses. And hair care is such a big business that if that doesn't grow, our Personal Care business wouldn't put in these performances. Brands like Dove, brands like Clear are clearly outperforming as well our competitors, and we want to keeping it that way, very healthy. The growth rates that were perhaps, historically, 4% to 6% for the markets that we were operating in, with the markets coming down, we see out in the short term, a growth rate of 3% to 5% more realistic for our company. We exited last year. The market was about a 3% growth rate, to our knowledge, that has come down actually from the 4% or 5% the preceding years, partly driven by inflation and other things. But unfortunately, with the slowdown that I keep talking about in these emerging markets, these growth rates have come down to 3%. So the cruising speed is anywhere between 3% to 5%. And I leave it up to you where you want to put consensus.

Okay. Thank you, Eileen. I think we have Marco Gulpers on the line next. Marco?

Two questions from my side. The first is the CFO mentioned on Bloomberg that he would like to do more deals in 2014. It's always an interesting spend to make. Could you remind us again of what your criteria are for doing M&A? And the second is, could you elaborate a little bit further on what kind of margin -- gross margin, sorry, that is, improvement you're foreseeing for 2014 after a very successful 2013? Raoul Jean-Marc Sidney Huët: Marco, thank you very much. I haven't seen the article on Bloomberg, but let me just reiterate. Thank you very much for bringing it up, absolutely no change whatsoever in our acquisition strategy. It's all about bolt-on M&A between EUR 1 billion to EUR 2 billion, but the real comment that I made this morning is the rigor that we apply to doing acquisitions. We obviously have confidence given the success of Kalina. We talked about Alberto Culver, but we will remain rigorous, and the acquisitions are complementary add-on M&A, nothing more than that at this point in time. In terms of gross margins, the good news with gross margins is that we really are instilling that discipline of Maxing the Mix. We launched that whole concept 1.5 years ago or so. So it's very embedded within our gross margins. And if you think about the virtuous circle of growth, the quality of margin leverage, it really has to come from gross margins if you want to repeat this consistent, competitive, reliable, profitable growth each and every year. So we don't give guidance specifically on gross margin, but it's a very important driver within our P&L. And 2013 has given us confidence that we are now better at driving margin improvements than in the past.

Thank you, Marco. Okay, Celine? Celine, are you on the line? Celine A.H. Pannuti - JP Morgan Chase & Co, Research Division: Yes. Two questions from me. The first one will be on pricing, please. If you could give us your view on your ability to price up in emerging market at this current point in the cycle, where we see lowering vision in emerging market. And also, pricing in developed market, what -- how is the -- how are the negotiations going right now with retailers? We've heard some negative commentary in retails in the U.K. and the U.S. So I was wondering whether we could see further price decline in 2014. My second question is on your savings. You mentioned the EUR 500 million for -- full impact in 2015 and as well contributing to -- on top of your activity. So here, is it possible to have an idea of the cost of that in 2014? And as well, whether this EUR 500 million is absolute incremental to the EBIT or is like at lower inflation cost, if you see what I am referring to?

Yes. Celine, thanks for the questions. I'll just quickly go over the pricing, and then Jean-Marc will talk a little bit more in detail the granularity of the EUR 500 million or not. So on pricing, let me start with the tougher one, which is the developed markets. You see, again, the results being announced over Christmas, by the way, the same in the U.S. as in Europe. There is a pressure on the retailers with consumers having less disposable income that is playing out in the market and their results as well. On top of that, you have changes happening to e-commerce that put further pressure on their model. With markets not growing, the competitive pressures, there is -- undoubtedly, the trends will be down. We've seen that over 2013, and I don't see that changing over 2014, if I may be realistic. So we have to count, on the pricing front, to stable to down pricing. That doesn't mean you can't do innovations. That doesn't mean you can't reposition some of your products, all the things we're trying to do. It's one of the reasons, by the way, why Europe, over the last 3 years -- again, taking a little bit of a longer perspective. As you remember, we were talking 4 or 5 years ago about stopping the continuous slide in Europe, where we had halved our business. The reality is that over the last 3 years with -- under Jan Zijderveld's leadership, we have had a growth of 1% and a decline of 1%, which is my point that our European business, more or less, is stable. It's not a drag on the system anymore. You've also seen in these results that we're able to continue to improve growth, core operating margin, in Europe as well…

And it's just the last point, I think we are -- with our strength and innovation programs, we are now in a very good position. And the new brand expansions that we're doing are increasingly showing success. That's a new thing for Unilever, only constructed over the last few years. So we have to continue to fuel that. We want to step up Africa. Our Food business, we need to now reinvest in a little bit. The cost of competitive battles, we want to compete and we want to compete successfully. So for all these reasons, we generate these funds to produce the models. So I cannot stress that enough. It's all about growth, profitable growth.

Thank you, Celine. James, James Targett, on the line there?

It's James Targett here from Berenberg. A couple of questions from me. Firstly, on innovation and gross margins, Dave Lewis gave some great numbers at the Capital Markets Day on Personal Care. I think the 9-month period innovation is 330 basis points, gross margin accretive. I just wondered if you could give a sense of, I think, a full -- adequate level of a full year. What innovation did actually -- or product launch that contribute? And then secondly, just on the -- on Europe part, you mentioned the slowdown in Northern Europe and the signs of stability in Southern Europe. Could you give us some color of the difference in performance between the 2 regions?

Yes, on the -- very briefly, on the innovations itself, the 110 basis point gross margin is a combination, obviously, of innovation on our business and product and costs. So we will -- and obviously, managing the mix, as we've said. So we will continue to focus on that. We don't break that down. But the good thing now is we track very carefully our innovations, and about 75% of our innovations are now margin accretive. And that is a trigger now for us -- has become a trigger for expansion. When we had to regrow our business and restart the engine, we obviously put less pressure on the gross margin as we had a lot of catch-up to do and, in some cases, actually had a decline in gross margin needed to regain our volumes. Now we are comfortable on, obviously, the investments we've made in R&D with the strengthening of our portfolio to make them gross margin accretive. Dave gave you an example, but to be fair, that is true for all of our businesses, not just for Personal Care. We won't go more into the details there because we don't break it out so granularly. The second question was more about Europe, the good things of Europe and the thing -- in Europe, in fact, our Personal Care business is growing. In fact, if you take spreads out of the total business, our European business is growing. So it quickly boils down to spreads, which we are addressing -- and I talked about it in my introductory remarks so I don't dwell on that one. But our Personal Care business is growing well. The Sara Lee brands that we acquired turned out to be a blessing. They're doing extremely well. They're well positioned. And our innovations that…

Okay. James, thank you. Thank you, James. Going to move on now to Harold Thompson.

Harold Thompson from Deutsche Bank. I've just got 2 questions. The first one is on margins. Clearly, by regions and by divisions, full year progresses is very broad spread. But if I just look in the more near term, I see that household and Refreshments, clearly, in the second half were down. Is that more a reflection of investment decisions in the near term? Or is there partly more other reasons behind that? And how should we think of progress into next year? Second question is about growth. Clearly, over 7% like-for-like growth in Personal Care is well above peers and market growth rates. How spread is that growth across the regions? And how do you take the priority or the decisions to invest because clearly, if we focus on just one market, one might get the wrong conclusion of your own performance? Raoul Jean-Marc Sidney Huët: So let me take the first one on household and Refreshment. In terms of Home Care, the real drivers are the following: first point, gross margins essentially stable between the second half of last year and the first half of the year, the first half benefiting from a weak comparator, so good gross margins throughout the year. The main variance is an increase in A&P spend very much driven by: a, the competitive market; and b, us investing behind our brands. You could say the same with Refreshments. The only point that I would make is that the impact of the Ades recall has driven the core operating margin within Refreshments, without which the core operating margin would essentially be flat.

Harold, on the share growth, if you look at the 7.3% on PC, may I also add the 8% on Home Care. I'm handing over now my responsibilities to Nitin. I wanted to give him a good momentum and set the bar high, but it is fairly consistent. If you look at 15 sales on Home Care, we would be growing share in about 12, which we think is very good right now, and the same on Personal Care. In fact, all of our Personal Care businesses are growing above 5%. So it's not a coincidence. And I think -- I'm trying to think when you asked the question, where are the regions that we are under share pressure. It's not really that many because what we now have is good global initiatives that we can roll out now very quickly to all countries. And if you roll it out to 70 countries broadly, you do okay if the initiative is meaningful enough in about 50, 60 of those to lift the total business to where it is. Our Chinese business, for example, just passed the EUR 2 billion barrier, a major milestone with all of our businesses building share and closing into our competitors. In fact, in some of the categories in Personal Care, we are already market leaders. Hand and body wash would be a good example of that. So we are -- we see the same in Brazil. We see the same in India. Now there are some challenges. I think we would like to have our skin business grow more, our face business especially within that. So there are some challenges. We have 1 or 2 hot spots where we've seen incredibly stepped-up competitive activity around deo that we're obviously responding to, more pricing driven, by the way, than product driven. But overall, this is a category like Home Care that is in good shape and what we would call fit to win. I do agree with you that our growth rates have been exceptional, probably not fully unlocked in the value of Unilever, and we will continue to try to keep it at these levels. But I would expect a little bit of tapering as we move forward, obviously. And that's for the same reason why we expect Food and Refreshments to pick up, as I keep saying.

Thanks, Harold. Iain, Iain Simpson?

Two questions from me, if I may. Firstly, I believe that the full year results last year, you described 30 basis points that you did in '12 with margin expansion as a sort of good benchmark going forward. So you've clearly delivered another 30 basis points this year. I wonder if you'd also regard that metric as a good benchmark going forward given that it seems like momentum is accelerating on the cost-cutting? And then just secondly, a housekeeping question, you've kindly given us some guidance on the FX impact on sales for 2014. I wondered if you could help us out as to what the FX and tax impact on EPS -- core EPS look like they might be in 2014.

Yes. Iain, very quickly on the first part, we think the combination of consistent market outperforming top line growth that we are doing and then the 30, 40 basis points margin expansion on a consistent basis will be very good for investors who want to stick with us for the long time. We will never be the most sexy company in a specific year. I'm sure there will be some others. We have a competitor now, after 4 or 5 years, no performance. All of a sudden, they have performance and increased. We don't want to run the business that way. We want to run the business on a consistent top and bottom line performance. And I think we're getting into this virtuous circle now. We've always talked about it taking 3 or 4 years to get there. Don't forget, 4 or 5 years ago, we still had an enormous negative mix and a drag on the business with our emerging market growth with our portfolio. We're now coming into a situation where we can actually manage that a little bit more positively, and I would expect us to continue to deliver, on average -- not necessarily every year because you don't know how the calendar falls versus your business activities. We will always -- let me stress that again, always do the right thing to protect our business for the long term, as that is surely our objective to get that as an average. For the exchange rates, I'll hand over to Jean-Marc. Raoul Jean-Marc Sidney Huët: Yes, so again, for 2013, the top line was just shy of 6%. The bottom line was around 7.5%. What we say this morning is that where foreign exchange is today, the impact on the top line in 2014 would be around negative 5%. And we probably think that we'll have the same type of impact on the earnings per share line. Just one point, in addition to your point about the 30 bps, you said 30, but it's actually 40 bps for 2013. And the confidence really is driven by the fact that it's gross margin improvement.

That's very clear. And just the tax question? Raoul Jean-Marc Sidney Huët: Sorry, can you just repeat the question then?

Yes, of course. Core tax rate changes was a 2.2% tailwind to EPS in '13. I wondered if we should expect a more of a -- sort of reversion to the main fee or core tax rate in 2014 or how you were thinking about that given that you called out tax efficiency as one of the things that you were pleased with this year. Raoul Jean-Marc Sidney Huët: Yes. Our guidance is 26% for next year -- or, sorry, for 2014, plus or minus 1%.

Thanks, Iain. We're trying to squeeze a couple in, if you don't mind, guys. So I think we've got Alex Smith on the line here. Alex?

Yes, I was wondering if you could expand a bit more on what you're seeing in terms of the competitive environment in emerging markets, specifically kind of real time. My impression was in Q3, the competitive environment hadn't really changed materially on the second quarter or H1 perhaps. Brazil came out quite a bit tougher, but just wondering if you're noticing any sort of pockets of change in the competitive environment in emerging markets. And then can I just clarify from an earlier question? Is in-quarter pricing in emerging markets still stable? Or have you started looking to take pricing there already?

Yes. Thanks, Alex. On the competitive landscape, I will focus mainly on HPC, if you don't mind. I think we're in a relatively good shape, bar, if you -- hot spots on Refreshments. And we're in relatively good shape on Foods, where we are up, basically competing against ourselves in many of the spaces and where the markets, by the way, in the emerging markets, are growing quite nicely for us. On Home Care -- to start with Home Care, we do see competitive activity continues to be at very high levels in laundry, in our solution wash business, as we call it, and that is not changing. And I would actually say that the pressure is at least as high, if not higher, over the second half then before and is at least as high as I've seen it in the last 20 years in the business. We will do what we have to do, and the results speak accordingly. It actually makes us better, and I keep saying that. On Personal Care, we will have -- we have competitive activity in pockets. In hair care, we see continuous drifting down of pricing and promotional activity by one of our main U.S.-based competitors, but that doesn't translate in share growth whilst we are able, with limited response, to continue to build our portfolio and, as a result, build our shares. We see some activity and hot spots around deos now, probably an attractive category for others as well, and we have to defend our market shares there. The good thing is with some of that activity coming in, we see the deo market continuing to grow as well at a more accelerated pace, but there are some incremental hot spots that have arrived on that. And on oral care, we have one of our key competitors expanding globally. One of their brands in -- and we, as well as other competitors, are aggressively defending and with a certain level of success. You saw Signal again passing the EUR 1 billion level. I can only share with you, although we don't break it down, that our oral care business not only has healthy gross margins but has also healthy growth rates, and we want to keep it that way. So here again, an expansion of a competitor or a heightened competitive environment in an emerging market makes a company like Unilever better. And we, frankly, should welcome that. I won't use it as excuses. We welcome these things, and it's also better for the consumer. And that is playing out exactly the way as I anticipated it.

And the question on in-quarter pricing in emerging markets?

Yes. That is -- I'm just referring to Jean-Marc here for a second. Raoul Jean-Marc Sidney Huët: Sure. Well, obviously, given the devaluations, inflation is coming through. So there are certain pricing opportunities. At this point in time, however, we're very careful. Just given the state of the consumer discretionary spend, while we do expect some pricing in emerging markets, we're careful.

Thank you, Alex. Let me take the last question here from David Hayes. David?

So 2 from me. Just very broadly speaking, obviously, there are lot of moving parts between the third quarter and the fourth quarter performance, which you've talked about, but broadly speaking, what is it that you think Unilever did in the fourth quarter that it failed to do in the third quarter in terms of that step-up and maybe the environmental change? Was there anything that you'd point to that changed between those 2 periods of time? And then secondly, just picking up on the bolt-on M&A outlook, just from a strategic perspective, we've heard Dave Lewis, I guess, the last couple of years, talk about the gap in prestige Personal Care. Is that something you still look to sow for? Is that something that you need to sow for to drive Personal Care? Or can you survive without filling that gap? And I guess more broadly again, what other areas, when you look across the portfolio, would you state from a strategic perspective you'd be focusing that bolt-on search on?

Yes. I'll go very quickly on the 2 questions. Frankly, if I may say without being too direct, we don't get too emotional about these movements on 90-day basis. So it's not that we are stepping up or stepping down. We have a very solid strategy. And sometimes, some things happen in a 90-day period versus another 90-day period. We don't get too excited about that. We had the Brazil situation. We had some adjustments in the U.S. We had the Cordillera [ph], and that gave us the quarter 3. Sometimes, you have a few more days or a few less days. Let me remind you, by the way, that the first quarter next year has 2 less days for Easter. So these things happen between quarters, and it doesn't -- if we start running our business and our strategies on a quarterly basis, we might as well pack our bags. So that we don't do. And we don't get too excited about that. Our strategies are fine, and we continue to focus on what we have explained to you. On the M&A activities, to be honest, we -- the gaps are well known. I've always talked about that. We would love to move our portfolio up. Part of the thing you are now seeing with our gross margin expansion is that we actually are getting into more margin enhancing, hence, more premium innovations that drive our business. Personal Care, amongst others is obviously a key engine of that. And Dave spent some time with all of you to take you through some of the innovation programs, and we will continue that. I think the bulk of that will come from our internal efforts. I've always said 90% of our growth that we need to deliver over a 10-year time…

Ladies and gentlemen, this conference has been recorded. Details of the replay number and access codes can be found on Unilever's website. An audio webcast will also be available on Unilever's website, www.unilever.com, and on the Investor Relations app.