Commentary on tax treatment of dividend / capital gains

PLC's issued share capital is made up of: (i) £37,322,707 split into 1,199,662,738 ordinary shares of 3 1/9p each and (ii) £100,000 of deferred stock.

An American Depositary Receipt or ADR is a negotiable instrument that represents ownership in securities of a non-U.S. company; it is a mechanism that facilitates U.S. trading of non-U.S. securities. ADRs provide U.S. investors with a convenient way to invest in overseas securities. ADRs are issued by a depositary bank and are traded in the same manner as shares in U.S. companies on the New York Stock Exchange (NYSE), Nasdaq and the Over-The-Counter (OTC) market. Unilever PLC ADRs trade on the NYSE, symbol UL and Deutsche Bank Trust company Americas. is the depositary bank that issues ADRs.

ADRs eliminate many of the obstacles of holding non-U.S. securities since they trade and settle according to U.S. market practices, are quoted and traded in dollars and pay dividends in dollars, eliminate custodian safekeeping charges in the issuer's home country facilitate prompt dividend payments and corporate action notifications.

For non-US issuers, an ADR programme can stimulate investor interest, broaden a company's shareholder base and raise a company's visibility in the US.

ADR/Underlying share conversion

Related items

An ADS is a share, evidenced by an ADR, that represents a specified number of underlying shares held in custody in the issuer's home market. The terms ADR and ADS are often used interchangeably. The number of underlying shares represented by one American depositary receipt (ADR). The ratio is typically depicted as, for example, 3:1, or one ADR representing three underlying shares. Unilever's ratio is 1:1, i.e. one ADR represents one underlying Unilever PLC share. ADR holders are generally entitled to the same rights as the underlying shareholders, subject to the terms specified on the ADR certificate.

To convert your Deutsche Bank underlying shares into ADRs, you can transfer your underlying shares to Deutsche Bank custodian bank in the issuer's home country. On receipt of the underlying shares, Deutsche Bank will issue ADRs representing the newly deposited shares to you. On the other hand, to convert your ADRs into underlying shares, instruct your broker to cancel the ADRs, and provide him or her with complete delivery instructions in the issuer's home country.

In view of the value of your certificates and the expense associated with replacing lost certificates, you should keep them in a safe-deposit box or other secure place. Certificates are negotiable documents and should be signed only in the event of a sale or transfer of ownership. If your certificate is lost, stolen, or destroyed, notify Deutsche Bank Shareholder Services immediately.

Shareholder services

Please call Deutsche Bank Shareholder Services to change your address when you move so that your account records can be updated:

American Stock Transfer & Trust Company
Operations Center
6201 15th Avenue
Brooklyn, NY 11219
Toll-free number: +1 (800) 937-5449
Direct Dial: +1 718 921 8124

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