MAKING SUSTAINABLE LIVING COMMONPLACE

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MAKING SUSTAINABLE LIVINGCOMMONPLACELAPORAN TAHUNAN 2016 ANNUAL REPORT

MAKING SUSTAINABLECOMMONPLACELIVINGMelalui program memasyarakatkankehidupan yang berkelanjutan, sepanjangtahun 2016 Unilever Indonesia terusmenginspirasi masyarakat Indonesiauntuk menciptakan masa depan yanglebih cerah dengan mengambil berbagailangkah nyata dalam mewujudkanperubahan bagi Indonesia, terutamadalam hal meningkatkan kesejahteraan,kesehatan, gizi, serta mengurangidampak terhadap lingkungan.Through its sustainable living programme,in 2016 Unilever Indonesia continuedto inspire Indonesian society to createa brighter future by taking variousconcrete actions for change in thecountry, particularly in terms of improvinglivelihoods, health, nutrition, and reducingenvironmental impact.1PT UNILEVER INDONESIA Tbk 2016 ANNUAL REPORT

DAFTAR ISICONTENTS12MAKING SUSTAINABLELIVING COMMONPLACEDAFTAR ISICONTENTSIKHTISAR UTAMAMAIN HIGHLIGHTS6 Tema dan Penjelasan TemaIntroduction7 Kesinambungan TemaTheme Continuity8 Keunggulan KamiOur Key Performance10 Ikhtisar Data Keuangan PentingSummary of Salient Financial Data12 Ikhtisar SahamStock HighlightsLAPORAN DEWAN KOMISARISDAN DIREKSIREPORT FROM THE BOARDOF COMMISSIONERS AND THEBOARD OF DIRECTORS16 Laporan Dewan KomisarisReport from the Board ofCommissioners22 Laporan DireksiReport from the Board of DirectorsPROFIL PERUSAHAANCOMPANY PROFILE34 Data PerusahaanCorporate Data35 Tentang Unilever IndonesiaAbout Unilever Indonesia37 Fakta-Fakta PentingKey Facts38 Jejak Langkah PerseroanCompany Milestones240 Model Bisnis KamiOur Business Model42 Brand KamiOur Brands46 Struktur OrganisasiOrganisational Structure48 Struktur Kepemilikan Perseroandan Entitas AnakCompany Ownership Structure andSubsidiaries49 Visi, Misi dan Nilai-Nilai PerusahaanVision, Mission and Corporate Values50 Profil Dewan KomisarisBoard of Commissioners' Profile55 Profil DireksiBoard of Directors' Profile60 Sumber Daya ManusiaHuman Resources68 Informasi Pemegang SahamShareholders' Information72 Lembaga Penunjang Profesi danPasar ModalCapital Market SupportingInstitutions and Professionals73 PenghargaanAwards75 Peristiwa PentingSignificant Events of the Year78 Informasi pada Website PerseroanInformation on the CorporateWebsite79 Pelatihan dan Pengembangan DewanKomisaris, Direksi, Komite-Komite,Sekretaris Perusahaan, dan UnitAudit InternalTraining and Development of theBoard of Commissioners, Board ofDirectors, Committees, CorporateSecretary, and Internal Audit UnitANALISIS DAN PEMBAHASANMANAJEMENMANAGEMENT DISCUSSIONAND ANALYSIS85 Tinjauan OperasionalOperational Review114 Tinjauan KeuanganFinancial Review119 Kemampuan Membayar UtangSolvencyPT UNILEVER INDONESIA Tbk LAPORAN TAHUNAN 2016119 Tingkat Kolektibilitas PiutangCollectability120 Arus KasCash Flows121 LikuiditasLiquidity121 Struktur ModalCapital Structure121 Komitmen Material untuk InvestasiBarang ModalMaterial Commitments forInvestment in Capital Goods122 Transaksi Lindung NilaiHedging Transactions122 Investasi Barang Modal yangDirealisasikanRealisation of Capital Investment122 Perbandingan Antara Target/Proyeksi Pada Awal Tahun BukuDengan Hasil yang Dicapai(Realisasi), Mengenai Pendapatan,Laba, Struktur Permodalan, atauLainnya yang Dianggap Penting BagiPerseroanComparison Between Target/Projection at Beginning ofYear and Result (Realisation),Concerning Income, Profit, CapitalStructure, or Others DeemedNecessary for the Company122 Target/Proyeksi yang Ingin DicapaiPerseroan Untuk Satu TahunMendatangCompany Target/Projection at Mostfor the Next One Year123 Informasi dan Fakta Material yangTerjadi Setelah Tanggal PelaporanKeuanganSubsequent Events123 Prospek UsahaBusiness Prospects124 Industri Barang KonsumsiConsumer Goods Industry125 ProspekOutlook125 Aspek Pemasaran atas Produk danJasaMarketing Aspects of the Productsand Services126 Kebijakan Pembagian DividenDividend Policy126 Saham KaryawanEmployee Stock

126 Informasi Material MengenaiInvestasi, Ekspansi, Divestasi,Penggabungan/Peleburan Usaha,Akuisisi, atau Restrukturisasi Utang/ModalMaterial Information Related toInvestment Expansion, Divestation,Consolidation/ Merger, Acquisition,or Debt/ Capital Restructurisation127 Transaksi yang MengandungBenturan Kepentingan danTransaksi dengan Pihak BerelasiTransactions Containing a Conflictof Interest and Transactions withRelated Parties127 Transaksi dengan Pihak BerelasiTransactions with Related Parties129 Perubahan Peraturan Perundangundangan yang BerpengaruhSignifikan Terhadap PerseroanChange in Legislation that had aSignificant Impact on the Company129 Kebijakan AkuntansiAccounting Policy129 Perubahan pada PernyataanStandar Akuntansi KeuanganChanges to the Statements ofFinancial Accounting Standards129 Kelangsungan UsahaBusiness ContinuityTATA KELOLA PERUSAHAANGOOD CORPORATE GOVERNANCE132 Tujuan Tata Kelola PerusahaanPurpose of Good CorporateGovernance132 Pernyataan Komitmen pada TataKelola Perusahaan yang BaikStatement of Commitmentto Corporate GovernanceImplementation133 Dasar-Dasar Bagi Implementasi danPengembangan GCGBasis for GCG Implementation andDevelopment134 Memperkuat Implementasi GCGStrengthening GCG Implementation134 Penilaian atas Pelaksanaan TataKelola Perusahaan di Tahun 2016Assessment of CorporateGovernance Implementationin 2016135 Struktur dan Mekanisme Tata KelolaPerusahaanCorporate Governance Structure andMechanisms136 Rapat Umum Pemegang SahamThe General Meeting ofShareholders146 Dewan KomisarisThe Board of Commissioners150 DireksiThe Board of Directors159 Komite-KomiteCommittees168 Sekretaris Dewan KomisarisBoard of Commissioners' Secretary169 Sekretaris PerusahaanCorporate Secretary172 Unit Internal AuditInternal Audit175 Audit EksternalExternal Audit176 Manajemen RisikoRisk Management183 Internal ControlInternal Control185 Masalah HukumMaterial Litigation185 Sanksi AdministratifAdministrative Sanction185 Akses InformasiAccess to Information186 Pedoman PerilakuCode of Conduct192 Pengelolaan Sistem WhistleblowerManagement of the WhistleblowingSystem194 Keragaman Dewan Komisaris danDireksiDiversity of the Board ofCommissioners and Board ofDirectors220 Tanggung Jawab Sosial PerusahaanTerhadap LingkunganSocial Responsibility to theEnvironment229 Tanggung Jawab Sosial TerhadapPengembangan Sosial danKemasyarakatanSocial Responsibility to Society andCommunities233 Tanggung Jawab Sosial untukKeselamatan dan Kesehatan KerjaSocial Responsibility forOccupational Health and Safety237 Tanggung Jawab PerusahaanTerhadap KonsumenSocial Responsibility to Consumers240 Brand Love KeyBrand Love Key242SURAT PERNYATAANANGGOTA DEWAN KOMISARISDAN DIREKSI TENTANGTANGGUNG JAWAB ATASLAPORAN TAHUNAN 2016PT UNILEVER INDONESIA TBKTHE BOARD OFCOMMISSIONERS’AND THE BOARD OFDIRECTORS’ STATEMENT OFRESPONSIBILITY FOR THE2016 ANNUAL REPORT OFPT UNILEVER INDONESIA TBK195 Pengadaan Barang dan JasaProcurement of Goods and Services246196 Pelaksanaan Penerapan Aspek danPrinsip Tata Kelola PerusahaanSesuai Ketentuan OJKImplementation of CorporateGovernance Aspects andPrinciples in Compliance with OJKProvisionsLAPORAN KEUANGANFINANCIAL STATEMENTS318REFERENSI SILANGKRITERIA ANNUAL REPORTAWARD 2016CROSS REFERENCE OFANNUAL REPORT AWARD2016 CRITERIATANGGUNG JAWAB SOSIALPERUSAHAANCORPORATE SOCIALRESPONSIBILITY216 Tanggung Jawab Sosial PerusahaanCorporate Social Responsibility218 Tata Kelola SustainabilitySustainability Governance3PT UNILEVER INDONESIA Tbk 2016 ANNUAL REPORT

4PT UNILEVER INDONESIA Tbk LAPORAN TAHUNAN 2016

IKHTISAR UTAMAMAIN HIGHLIGHTS5PT UNILEVER INDONESIA Tbk 2016 ANNUAL REPORT

01IKHTISAR UTAMAMAIN HIGHLIGHTS02LAPORAN DEWAN KOMISARIS DAN DIREKSIREPORT FROM THE BOARD OF COMMISSIONERSAND THE BOARD OF DIRECTORS03PROFIL PERSEROANCOMPANY PROFILE04ANALISIS DAN PEMBAHASAN MANAJEMENMANAGEMENT DISCUSSION AND ANALYSISTEMA DAN PENJELASAN TEMAINTRODUCTIONUnilever Indonesia mengambil bagian dalam upaya untukmenciptakan masa depan yang lebih cerah. Kami mempergunakankekuatan brand-brand kami untuk meningkatkan kepedulianmasyarakat Indonesia pada beberapa masalah yang palingmendesak, seperti kesehatan, gizi, kelestarian sumber daya,pengelolaan sampah, kemiskinan, dan perubahan iklim, yangmempengaruhi kehidupan kita saat ini dan akan terus berdampakpada generasi mendatang. Kami paham bahwa semakin banyakorang yang peduli mengenai bagaimana mereka memberikandampak terhadap dunia di sekeliling mereka, dan oleh karenanyamereka ingin berkontribusi membuat perbedaan yang nyata.Keberlanjutan berada di jantung model bisnis kami. Setiaptahunnya, kami memperbaharui upaya kami untuk meminimalkanjejak lingkungan dengan mengurangi energi dan konsumsi air,mengurangi emisi CO2 dan mendaur ulang serta menggunakankembali limbah kami daripada sekedar membuangnya. Setiaptahunnya pula, kami meningkatkan persentase bahan bakuyang kami pasok secara berkelanjutan, seraya bekerja bersamaribuan petani yang telah menerapkan praktik-praktik pertanianberkelanjutan dan memberikan kontribusi positif dalammemberdayakan komunitas mereka untuk meningkatkan matapencaharian. Saat ini, melalui beragam brand, kami berupayauntuk memasyarakatkan kehidupan yang lebih berkelanjutan,tidak hanya dalam kegiatan operasional kami, tapi juga dalamkehidupan sehari-hari masyarakat, dengan menunjukkan bahwajutaan tindakan kecil jika digabungkan bersama-sama akan dapatmembuat perubahan secara global.Unilever Indonesia is playing its part to create a bright future. Weare using our brands to engage the people of Indonesia on criticalchallenges, such as health, nutrition, resource sustainability,waste management, poverty, and climate change, that areaffecting our own lives and will continue to affect those of thenext generations. We know that, increasingly, people care abouthow they impact the world around them, and want to make adifference. Sustainability is at the core of our business model.Each year, we renew our efforts to minimise our environmentalfootprint by reducing our energy and water consumption,reducing CO2 emissions, and recycling and reusing, rather thandumping, our waste. Every year, too, we increase the share of ourraw materials that are sourced sustainably, while working withthousands of the farmers that supply us on adopting sustainableagricultural practices and making a positive contribution to theirlives by empowering their communities with the tools to improvetheir livelihoods. Now, through our brands, we are trying tomake sustainability commonplace, not just in our operations butin people’s daily lives, by demonstrating that millions of smallactions can add up to global change.Di 2016, kami bekerjasama dengan para mitra di seluruh penjurunegeri untuk menggerakkan ribuan langkah kecil, namunberkelanjutan, yang akan berdampak pada masa depan kita.Tindakan-tindakan ini termasuk diantaranya:In 2016, we worked with partners in communities all over thecountry to mobilise thousands of small, yet sustainable actionsthat will have an impact on our future. These actions included: 6Mendorong lebih dari 2 juta anak sekolah untuk memilikikebiasaan yang baik terkait kesehatan, kebersihan dan gizimelalui Program Kesehatan Sekolah kami;Menghemat 54.697 juta m3 air sebagai hasil dari penggunaanproduk Molto Sekali Bilas dalam rumah tangga untuk mencucipakaian;Melibatkan lebih dari 73.228 anggota pada Program Greenand Clean, menciptakan 372 bank sampah baru, menyeraplebih dari 4.363 ton sampah anorganik dan menghasilkanRp6,4 miliar total penghasilan dari pengelolaan sampah;Mengerahkan sumbangan dari sekitar 10.000 konsumenuntuk mendukung penanaman 15.500 pohon melalui program#beliyangbaik, yang merupakan kerjasama antara WWF,Hypermart dan Unilever;Mengingatkan lebih dari 77 juta orang menjadi lebih optimisdan berkontribusi untuk membuat dunia menjadi lebih baikmelalui kampanye ‘So Long Old World’.PT UNILEVER INDONESIA Tbk LAPORAN TAHUNAN 2016 Encouraged more than 2 million school children to adoptgood health, hygiene and nutrition habits through our SchoolHealth Programme;Saved 54,697 million m3 of water as a result of householdsusing our Molto One Rinse product when they do laundry;Enlisted over 73,228 members in our Green and CleanProgramme, created another 372 waste banks, absorbedmore than 4,363 tons of inorganic waste and generatedRp6.4 billion in total waste turnover;Mobilised donations from some 10,000 shoppers to supportthe planting of 15,500 trees through WWF, Hypermart andUnilever’s #beliyangbaik programme; andReminded more than 77 million people to be more optimisticand to contribute to making a better world through our‘So Long Old World’ campaign.

05TATA KELOLA PERUSAHAANGOOD CORPORATE GOVERNANCE06TANGGUNG JAWAB SOSIAL PERUSAHAANCORPORATE SOCIAL RESPONSIBILITY07LAPORAN KEUANGANFINANCIAL STATEMENTSREFERENSI SILANG KRITERIA ANNUAL REPORT AWARD 2016CROSS REFERENCE OF ANNUAL REPORT AWARD 2016 CRITERIAKESINAMBUNGAN TEMATHEME CONTINUITYTOGETHER FORLaporan tahunan 2014 annuaL reportTogether forA Brighter FutureMAKING SUSTAINABLE LIVINGCOMMONPLACEBERSAMA UNTUK MASA DEPANYANG LEBIH CERAHLAPORAN TAHUNAN 2015 2015 ANNUAL REPORTLAPORAN TAHUNAN 2016 ANNUAL REPORT201420152016Laporan tahunan Unilever Indonesia secara konsisten berfokuspada tema menciptakan masa depan yang lebih baik danberkelanjutan, dengan menggunakan kekuatan brand kami untukmengatasi beberapa tantangan yang paling mendesak di dunia:masalah kesehatan, gizi, ketahanan sumberdaya, pengelolaansampah, kemiskinan dan perubahan iklim. Pada setiap laporankami, kami menyoroti upaya Unilever Indonesia dalam mendorongkonsumen untuk mengambil tindakan-tindakan yang meskipunkecil, jika digabungkan bersama-sama, akan dapat berkontribusimenciptakan dunia yang lebih sehat, bersih, dan hijau.Unilever Indonesia’s annual reports have consistently focusedon the theme of creating a better, more sustainable future byusing the power of its brands to engage directly with some of themost urgent challenges facing the world today: health, nutrition,resource sustainability, waste management, poverty, and climatechange. In each report, we have sought to highlight UnileverIndonesia’s efforts to encourage consumers to take actions,however small, that collectively will contribute to a healthier,cleaner and greener world.Tema laporan untuk tahun 2014 dan 2015 adalah 'Bersamasama Menciptakan Kehidupan yang Lebih Cerah', yang berfokusuntuk menggerakkan masyarakat melakukan tindakan positif.Kami melanjutkan pesan selanjutnya terkait keberlanjutanmelalui tema laporan di tahun 2016 ‘Making Sustainable LivingCommonplace’ (Memasyarakatkan Gaya Hidup Berkelanjutan)untuk menekankan pentingnya melakukan tindakan-tindakankecil tersebut untuk memastikan terciptanya masa depan yanglebih cerah.The theme for 2014 and 2015, ‘Together for a Brighter Future',focused on encouraging people to take action. In 2016, the themeof ‘Making Sustainable Living Commonplace’ highlights theimportance of making such actions a routine part of our daily livesto secure a better future for everyone.7PT UNILEVER INDONESIA Tbk 2016 ANNUAL REPORT

01IKHTISAR UTAMAMAIN HIGHLIGHTS02LAPORAN DEWAN KOMISARIS DAN DIREKSIREPORT FROM THE BOARD OF COMMISSIONERSAND THE BOARD OF DIRECTORS03PROFIL PERSEROANCOMPANY PROFILE04ANALISIS DAN PEMBAHASAN MANAJEMENMANAGEMENT DISCUSSION AND ANALYSISKEUNGGULAN KAMIOUR KEY PERFORMANCEDengan terus berinvestasi pada inovasi dan membangun profitabilitas,Unilever Indonesia ('Perseroan') mencatatkan tonggak sejarah barudengan meraih jumlah penjualan bersih sebesar lebih dari Rp40triliun dan keuntungan bersih mendekati Rp6,4 triliun atau bertumbuhsebesar 9,7%. Kategori Home and Personal Care dan Foods andRefreshment masing-masing membukukan pertumbuhan sebesar9,0% dan 11,7%, yang berkontribusi terhadap pertumbuhan kamisetahun penuh pada 9,8%.By continuously investing in innovation and buildingprofitability, the Company recorded another milestone byachieving more than Rp40 trillion in net sales and close toRp6.4 trillion in net profit, generating a net profit growth of9.7%. Home and Personal Care and Foods and Refreshmentposted growth rates of 9.0% and 11.7%, respectively, closingfull year growth at 9.8% year on year.Kedisiplinan kami terhadap biaya telah mendorong efisiensisecara signifikan. Inisiatif ini digabungkan dengan penerapankebijakan inovasi pertumbuhan mar gin yang perlahan-lahan,dapat mempertahankan margin Perseroan yang kompetitif. Kamijuga mempertahankan kepemimpinan pada kategori-kategoriutama kami seraya menghasilkan kemajuan yang nyata terhadaptujuan-tujuan keberlanjutan kami.Our cost discipline has delivered efficiency gains. Coupled withthe implementation of a margin accretive innovation policy,the Company maintained its strong competitive margin. Wealso continued to maintain overall market leadership in ourcore categories while making sound progress towards oursustainability goals.Home andPersonal CarePenjualan Bersih (dalam triliun Rupiah)Net Sales (in trillion Rupiah)Rp27.7triliun/trillionPenjualan (dalam triliun Rupiah)Sales (in trillion Rupiah)19.920128PT UNILEVER INDONESIA Tbk LAPORAN TAHUNAN 201622.4201324.6201425.4201527.72016

05TATA KELOLA PERUSAHAANGOOD CORPORATE GOVERNANCE06TANGGUNG JAWAB SOSIAL PERUSAHAANCORPORATE SOCIAL RESPONSIBILITY07LAPORAN KEUANGANFINANCIAL STATEMENTSREFERENSI SILANG KRITERIA ANNUAL REPORT AWARD 2016CROSS REFERENCE OF ANNUAL REPORT AWARD 2016 CRITERIAfoods andrefreshmentPenjualan Bersih (dalam triliun Rupiah)Net Sales (in trillion Rupiah)Rp12.4triliun/trillionPenjualan (dalam triliun Rupiah)Sales (in trillion Rupiah)11.112.49.97.420128.320132014201520169PT UNILEVER INDONESIA Tbk 2016 ANNUAL REPORT

01IKHTISAR UTAMAMAIN HIGHLIGHTS0203LAPORAN DEWAN KOMISARIS DAN DIREKSIREPORT FROM THE BOARD OF COMMISSIONERSAND THE BOARD OF DIRECTORS04PROFIL PERSEROANCOMPANY PROFILEANALISIS DAN PEMBAHASAN MANAJEMENMANAGEMENT DISCUSSION AND ANALYSISIKHTISAR DATA KEUANGAN PENTINGSUMMARY OF SALIENT FINANCIAL DATATabel di bawah adalah ikhtisar data keuangan penting dariPerseroan untuk lima tahun yang berakhir pada tanggal31 Desember 2016, 2015, 2014, 2013, dan 2012 diambil darilaporan keuangan untuk tahun-tahun yang berakhir pada tanggal31 Desember 2016, 2015, dan 2014 (yang telah diaudit oleh KAPSiddharta Widjaja & Rekan) serta tahun-tahun yang berakhir padatanggal 31 Desember 2013 dan 2012 (yang telah diaudit oleh KAPTanudiredja, Wibisana & Rekan), dengan opini tanpa modifikasianuntuk laporan keuangan Perseroan untuk tahun yang berakhirpada tanggal 31 Desember 2016 sebagaimana tercantum dalamlaporan auditor independen tertanggal 17 Maret 2017.Presented below is the summary of salient financial data ofthe Company for the five years ended 31 December 2016, 2015,2014, 2013, and 2012 derived from the financial statements forthe years ended 31 December 2016, 2015, and 2014 (whichhave been audited by KAP Siddharta Widjaja & Rekan) and forthe years ended 31 December 2013 and 2012 (which have beenaudited by KAP Tanudiredja, Wibisana & Rekan), with unmodifiedopinion for the Company's financial statements for the year ended31 December 2016 as stated in the independent auditor's reportdated 17 March 2017.(dalam miliar Rupiah, kecuali disebutkan lain)Uraian(in billions of Rupiah, unless otherwise specified)20162015201420132012UNTUK TAHUN BERJALANPenjualan BersihHarga Pokok PenjualanLaba BrutoBeban UsahaDescriptionFOR THE YEAR ENDED27,303Net Sales(19,595) (17,835) (17,304) (14,979) (13,414)40,054Cost of Goods 89Gross Profit(11,751) (10,710)(9,194)(8,614)(7,391)Operating ExpensesLaba Usaha8,7087,9398,0137,1646,498Operating ProfitLaba sebelum Pajak Penghasilan8,5727,8297,9287,1596,467Profit before Income TaxLaba6,3915,8525,9275,3534,839ProfitJumlah Penghasilan KomprehensifTahun Berjalan5,9585,8646,0735,3534,839Total Comprehensive Incomefor the YearEBITDA9,2588,4448,3887,6756,857EBITDAPADA AKHIR TAHUNAT THE END OF YEARAset Lancar6,5886,6236,3375,2184,390Current AssetsJumlah Aset16,74615,73014,28112,70411,339Total AssetsLiabili

referensi silang kriteria annual report award 2016 cross reference of annual report award 2016 criteria 7 pt unilever indonesia tbk 2016 annual report 05 06 07 kesinambungan tema theme continuity together for a brighter future laporan tahunan 2014 annual report laporan tahunan 2015 2015 ann

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