1st Quarter Results

Unilever PLC 06 May 2005 UNILEVER RESULTS FIRST QUARTER In competitive markets, first quarter business performance shows signs of progress. FINANCIAL HIGHLIGHTS (unaudited) € million First Quarter 2005 Current Current Constant rates rates rates Turnover 9 266 2% 4% Operating profit 1 416 8% 9% Pre-tax profit 1 282 9% 10% Net profit attributable to shareholders' equity 934 24% 25% EPS NV (Euros) 0.96 25% 26% EPS PLC (Euro cents) 14.44 25% 26% KEY FEATURES OF THE QUARTER •Underlying sales grew by 6%, benefiting from additional calendar days in the quarter. •Aggregate market shares are stabilising. •Operating margin was 15.3% and included €73 million from profits on disposals. •Earnings per share benefited from one-off movements in tax and net restructuring. CHIEF EXECUTIVE'S COMMENT We are making progress on the plans to improve top line performance. The first stage was a step-up in market competitiveness, starting from the fourth quarter of last year. I am encouraged that we have had two consecutive quarters of growth and that aggregate market shares are now stabilising. Our actions in the market place are now being supported by the transition to the new organisation announced in February, which is proceeding well. This year we expect market conditions to remain very challenging in Europe, and margins to continue to be under pressure from increased input costs. However, performance in developing and emerging markets was better, and here the outlook is more promising. Against this background, we will ensure our brands are competitive in their markets while continuing to drive cost efficiency. At the same time we remain focused on our priorities. These are: regaining momentum in Europe, building on our strengths in global personal care and developing and emerging markets; as well as innovation which addresses the Vitality needs of our consumers. Patrick Cescau Group Chief Executive Unilever has adopted IFRS - the new international accounting standards. These apply to both the prior year comparators and the current year results. In addition, the financial statements are now shown only at current exchange rates, while percentage changes are shown at both current and constant exchange rates to facilitate comparison. Further information on the impact of IFRS can be found on page 9 and on the Unilever web site at www.unilever.com/ourcompany/ investorcentre/. In the following commentary sales growth is stated on an underlying basis at constant exchange rates and excluding the effects of acquisitions and disposals. Turnover includes the impact of exchange rates and acquisitions and disposals. Unilever uses 'constant rate' and 'underlying' measures primarily for internal performance analysis and targeting purposes. Unilever believes that such measures provide additional information for shareholders on underlying business performance trends. Such measures are not defined under IFRS or US GAAP and are not intended to be a substitute for GAAP measures of turnover and profit. FIRST QUARTER FINANCIAL RESULTS Underlying sales grew by 6%, entirely coming from volume. This includes the impact of an additional 5 days in the quarter, which varies by region. We estimate that, at the group level, calendar effects contributed about 4% to growth. Turnover was 2.3% ahead, with the underlying sales growth partly offset by a negative 2.1% from disposals and a negative 1.6% from currency movements. Operating margin was 15.3%, an increase of 0.8 percentage points. There was a gain in the quarter of €73 million from profits on disposals, mainly in Europe and South Africa. Gross restructuring costs were also substantially lower than last year. These effects, together with the benefits of savings programmes, more than offset higher input costs and increased investment in market competitiveness. Operating profit increased by 8% (9% at constant exchange rates). Net financing costs were 3% lower. The tax rate in the quarter was 23% and included 6 percentage points benefit to the rate from non-recurring items including the conclusion of past tax audits. Earnings per share increased by 25% benefiting from the non-recurring items in tax which contributed 8% to EPS, and from the favourable movement in net restructuring charges. CASH FLOW Net cash flow from operating activities, which is net of tax payments, was €0.5 billion, a decrease of €0.2 billion on 2004. The increase in operating profit was more than offset by higher seasonal outflows of working capital, principally due to calendar effects, and by higher payments for restructuring costs and tax. During the period there was a net increase in cash and cash equivalents of €132 million. BALANCE SHEET Goodwill and intangible assets increased by €0.3 billion, through currency movements. Trade receivables and inventories both increased reflecting calendar effects and build-up ahead of the ice cream season. Closing net debt was €10.1 billion, a reduction of €1.1 billion from the 1 January 2005 opening position. €1.4 billion of the reduction relates to the conversion of the €0.05 preference shares, offset by €0.5 billion from adverse currency movements. Total equity increased by €2.3 billion from the 1 January 2005 opening position. Net profits added €1.0 billion and currency retranslation €0.1 billion. Treasury stock, which is deducted from equity, was used for the conversion of the €0.05 preference shares. This had the effect of reducing borrowings by €1.4 billion and increasing equity by the same amount. Subsequent purchases of treasury stock during the quarter reduced equity by €0.2 billion. Future share purchases to replenish the treasury stock used in the conversion will further offset the increase in equity. FIRST QUARTER PERFORMANCE BY REGION EUROPE Market conditions remain difficult through much of Western Europe. Competition is intense between retailers as well as between manufacturers and pricing is under pressure. On a like-for-like calendar basis, underlying sales declined by about 2%, including the effect of lower pricing as we took action to improve competitiveness. There were some encouraging signs of progress: we have gained share in most foods categories compared with the end of last year and ice cream benefited from a good uptake in the trade for new products. It was a difficult quarter in home and personal care, largely due to the UK. While some of this stems from the difficult market environment, we have also lost market share. Action is being taken and, with a stronger innovation programme this year, we expect to see a gradual improvement. Elsewhere in Western Europe performance was mixed. In France, sales of home and personal care categories held up well, however foods categories were weaker. By contrast, in the other major markets we saw a better performance in our foods businesses. Eastern Europe, and Russia in particular, continued to show strong, volume driven growth across categories. The pro.activ range of Flora/Becel was further extended to include yoghurt drinks. In the Netherlands and Belgium we launched Knorr Vie shots which provide at least half the daily recommended intake of fruit and vegetables. Magnum 5 senses ice creams were introduced while in frozen foods the brand relaunch is underway in all countries, and supports innovation which is focused on convenience products with fresh, natural ingredients. The first quarter saw the introduction of Sunsilk hair styling products, Dove 'silk dry' deodorant and new body wash variants. Operating margin, at 16.4%, was 1.1 percentage points ahead of last year, boosted by profits on disposals. Savings programmes and improved mix fully offset the impact of lower prices. THE AMERICAS There was a modest pick-up in market growth in most categories in the US, while consumption in the majority of Latin American countries is buoyant. On a like-for-like calendar basis our underlying sales grew by about 4%. Performance was strong across most foods categories and aggregate shares in foods were slightly up. However, the weight management market has contracted rapidly and, while Slim.Fast continued to gain some share, sales of the brand were sharply lower than last year. We are further refreshing the Slim.Fast Optima product range and are also introducing the first in a new range of high protein shakes and meal bars. There was an encouraging return to like-for-like sales growth in home and personal care categories in the US driven by deodorants, hair care and personal wash. Skin care and laundry are both very active markets with intense competition and our market shares are down in both. Prestige grew well, continuing the progress made in the second half of 2004. Mexico, Chile and Argentina all showed strong volume growth while sales in Brazil were in line with a very strong quarter in the previous year. In these countries the personal care and savoury and dressings brands continue to perform particularly well. In the US Country Crock side dishes and Bertolli frozen meals have both been rolled out nationally. New ice cream products include Breyers ranges that further build on the 'healthy' platform; Cal Smart, Sugar Smart and Heart Smart. Dove in the US has extended from its position in shampoo into hair styling, and we launched 'all' laundry detergent with softening. In Latin America we introduced new flavours and 'light' varieties of the AdeS soy based nutritional drink. In Mexico and Argentina, new flavours of Knorr soups address traditional habits, and Hellmann's cholesterol free mayonnaise, already succesful in Chile, has been brought to Mexico. In hair care, Sunsilk Guarana is being rolled out in Brazil, Andina and Argentina. Rexona 'teens' deodorant complements the existing products for men and women and Rexona antibacterial soap bar has been extended from Argentina into Brazil. The operating margin at 15.2% was 0.2 percentage points higher than last year. Savings programmes and lower restructuring costs more than offset the impact of higher input costs and an increase in marketing investment. ASIA/AFRICA Consumption overall continues to grow well, despite a weaker economy in Japan and still modest economic growth in South Africa. On a like-for-like calendar basis, underlying sales grew by about 7%. There was widespread growth across South East Asia, with succesful innovations in hair care and good progress in savoury products. India had its strongest quarterly growth in over two years, unaffected by the calendar change and following a robust response to the earlier increase in competition. In laundry, market shares have been maintained and we started to regain share in hair care through innovation and increased support. In Japan, where competition has also been intense, like-for-like sales were in line with last year. Turkey and West Africa both performed well, while Arabia saw a good recovery in sales of Lipton teas. A strong innovation programme for hair care in India includes new products for the Clinic range in family health and anti-dandruff positions and Sunsilk 'Fresh and Cool' for sticky hair. Following the relaunch of Lux super rich in Japan towards the end of last year, Lux styling has now also been relaunched. Lipton herbal teas have been introduced to Turkey and China, where we have also launched Lipton milk tea. In Turkey the main spreads brands, Rama and Sana, now include olive oil versions. The operating margin, at 13.4%, was 0.7 percentage points higher than last year largely through profits on disposals and lower restructuring charges. SAFE HARBOUR STATEMENT: This document may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report and Accounts on Form 20-F. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. CONDENSED INTERIM FINANCIAL STATEMENTS INCOME STATEMENT (unaudited) €million First Quarter 2005 2004 Increase/ (Decrease) Current rates Constant rates Turnover 9 266 9 061 2% 4% Operating profit 1 416 1 316 8% 9% Finance income 97 86 Finance costs (234) (225) Other finance income/ (costs) - (16) (19) pensions and similar obligations Share in net profit of 10 9 joint ventures Share in net profit of - 1 associates Other income from non-current 9 13 investments Profit before taxation 1 282 1 181 9% 10% Taxation (301) (379) Net profit for the 981 802 22% 24% period Attributable to: Minority interests 47 49 Shareholders' equity 934 753 24% 25% Combined earnings per share Per €0.51 ordinary NV 0.96 0.77 25% 26% share (Euros) Per 1.4p ordinary PLC share (Euro 14.44 11.58 25% 26% cents) Per €0.51 ordinary NV share - diluted 0.93 0.74 26% 27% (Euros) Per 1.4p ordinary PLC share - diluted 13.94 11.13 25% 27% (Euro cents) STATEMENT OF RECOGNISED INCOME AND EXPENSE (unaudited) € million First Quarter 2005 2004 Fair value gains/(losses) on financial instruments and cash flow hedges net of tax 16 n/a Actuarial gains/(losses) on pension schemes net of tax (3) 32 Currency retranslation gains/(losses) net of tax 123 77 Net income/(expense) recognised directly in equity 136 109 Net profit for the period 981 802 Total recognised income and expense for the period 1 117 911 Attributable to: Minority interests 67 67 Shareholders' equity 1 050 844 BALANCE SHEET (unaudited) €million As at As at As at 2 April 31 December 27 March 2005 2004 2004 Non current assets Goodwill and intangible assets 17 346 17 018 18 990 Property, plant and equipment 6 231 6 181 6 653 Pension asset for funded schemes in 696 625 830 surplus Deferred tax assets 1 533 1 491 1 181 Other non-current assets 1 582 1 064 1 023 Total non-current assets 27 388 26 379 28 677 Assets held for sale 156 n/a n/a Current assets Inventories 4 112 3 756 4 504 Trade and other receivables due within one 4 616 4 131 5 313 year Financial assets 334 1 013 1 338 Cash and cash equivalents 1 721 1 590 2 239 Total current assets 10 783 10 490 13 394 Current liabilities Borrowings due within one year (5 462) (5 155) (7 485) Trade payables and other current (8 234) (8 232) (9 022) liabilities Total current liabilities (13 696) (13 387) (16 507) Net current assets/(liabilities) (2 913) (2 897) (3 113) Total assets less current 24 631 23 482 25 564 liabilities Non-current liabilities Borrowings due after one year 7 062 6 893 8 659 Pension liability for funded schemes in 2 363 2 291 2 462 deficit Pension liability for unfunded 3 906 3 788 3 683 schemes Deferred tax liabilities 798 740 1 141 Restructuring and other provisions 1 325 1 364 850 Other non-current liabilities 713 717 759 Total non-current liabilities 16 167 15 793 17 554 Liabilities held for sale 9 n/a n/a Equity Shareholders' equity 8 041 7 324 7 532 Minority interests 414 365 478 Total equity 8 455 7 689 8 010 Total capital employed 24 631 23 482 25 564 MOVEMENTS IN EQUITY (unaudited) €million First Quarter 2005 2004 Equity at 31 December 2004 7 689 n/a IFRS transition adjustment for financial instruments (including preference shares) (1 564) n/a Equity at 1 January 6 125 7 241 Total recognised income and expense for the period 1 117 911 Dividends - (5) Conversion of preference shares 1 380 - Purchase/sale of treasury stock (158) (139) Share option credit 41 56 Dividends paid to minority shareholders (22) (24) Currency retranslation gains/(losses) net of tax (28) (26) Other movements in equity - (4) Equity at the end of the period 8 455 8 010 CASH FLOW STATEMENT (unaudited) €million First Quarter 2005 2004 Operating activities Cash flow from operating activities 779 961 Income tax paid (308) (241) Net cash flow from operating activities 471 720 Investing activities Interest received 42 11 Net capital expenditure (182) (170) Acquisitions and disposals 101 (88) Other investing activities 210 (79) Net cash flow from/(used in) investing activities 171 (326) Financing activities Dividends paid on ordinary share capital (2) - Interest and preference dividends paid (115) (107) Change in borrowings and finance leases (214) 229 Purchase of own shares (158) (120) Other financing activities (21) (15) Net cash flow from/(used in) financing activities (510) (13) Net increase/(decrease) in cash and cash equivalents 132 381 Cash and cash equivalents at the beginning of the year 1 406 1 428 Effect of foreign exchange rate changes (23) 131 Cash and cash equivalents at the end of period 1 515 1 940 ANALYSIS OF NET DEBT (unaudited) €million As at As at 2 April 1 January 2005 2005 Cash and cash equivalents as per cash flow statement 1 515 1 406 Add: bank overdrafts deducted therein 206 184 Less: cash in assets held for disposal - (8) Cash and cash equivalents as per balance 1 721 1 582 sheet Financial assets 334 533 Borrowings due within one year (5 462) (6 448) Borrowings due after one year (7 062) (7 221) Derivatives and finance leases included in other 332 369 receivables and other liabilities Net debt at the end of the period (10 137) (11 185) GEOGRAPHICAL ANALYSIS (unaudited) First Quarter €million Europe Americas Asia/Africa Total Turnover 2004 3 885 2 925 2 251 9 061 2005 3 932 3 004 2 330 9 266 Change 1.2% 2.7% 3.5% 2.3% Impact of: Exchange rates 0.3% (2.5)% (3.5)% (1.6)% Acquisitions 0.2% 0.1% 0.0% 0.1% Disposals (2.4)% (1.5)% (2.5)% (2.1)% Underlying sales growth 3.1% 6.8% 10.1% 6.0% Price (1.0)% 0.7% 0.7% 0.0% Volume 4.2% 6.1% 9.3% 6.1% Operating profit 2004 592 438 286 1 316 2005 646 458 312 1 416 Change current rates 8.9% 4.7% 9.1% 7.6% Change constant rates 8.7% 7.2% 13.9% 9.3% Operating margin 2004 15.3% 15.0% 12.7% 14.5% 2005 16.4% 15.2% 13.4% 15.3% CATEGORY ANALYSIS (unaudited) First Quarter €million Savoury Spreads Beverages Ice cream Foods Personal Home Home Total and and and care care and dressings cooking frozen and personal products foods other Care Turnover 2004 1 889 1 040 733 1 316 4 978 2 375 1 708 4 083 9 061 2005 1 965 1 057 714 1 357 5 093 2 499 1 674 4 173 9 266 Change 4.0% 1.6% (2.5)% 3.1% 2.3% 5.2% (2.0)% 2.2% 2.3% Impact of: Exchange rates (0.8)% (0.3)% (2.4)% (1.4)% (1.1)% (2.7)% (1.5)% (2.2)% (1.6)% Acquisitions 0.0% 0.0% 0.0% 0.6% 0.2% 0.1% 0.0% 0.0% 0.1% Disposals (1.6)% (6.7)% (1.1)% (2.4)% (2.8)% (0.7)% (2.1)% (1.3)% (2.1)% Underlying sales growth 6.6% 9.3% 0.9% 6.5% 6.2% 8.8% 1.6% 5.8% 6.0% Operating profit 2004 313 170 92 98 673 385 258 643 1 316 2005 366 212 91 89 758 461 197 658 1 416 Change current rates 17.1% 25.0% (2.4)% (8.4)% 12.7% 19.4% (23.6)% 2.2% 7.6% Change constant rates 17.9% 25.7% (0.1)% (6.7)% 13.8% 23.4% (23.2)% 4.7% 9.3% Operating margin 2004 16.5% 16.3% 12.6% 7.4% 13.5% 16.3% 15.1% 15.8% 14.5% 2005 18.6% 20.1% 12.7% 6.6% 14.9% 18.4% 11.8% 15.8% 15.3% NOTES (unaudited) Adoption of IFRS Unilever adopted International Financial Reporting Standards (IFRS) with effect from 1 January 2005. Our transition date is 1 January 2004 as this is the start date of the earliest period for which we will present full comparative information under IFRS in our 2005 Annual Report and Accounts. These interim financial statements have been prepared in accordance with IAS 34. The financial information is prepared under the historical cost convention as modified by the revaluation of biological assets, financial assets 'available-for-sale investments' and 'at fair value through profit or loss', and derivatives. IFRS 1 mandates that most IFRS are applied fully retrospectively, meaning that the opening balance sheet at 1 January 2004 is restated as if those accounting policies had always been applied. There are certain limited exemptions to this requirement. A reconciliation from old GAAP to IFRS of the balance sheet as per 27 March 2004 and the income statement for the period then ended is given on page 10 and 11. A more detailed review of the changes to our accounting policies and a reconciliation of financial statements from old GAAP to IFRS is available on our website at www.unilever.com/ourcompany/investorcentre/. From 1 January 2005 Unilever implemented the following additional changes in accounting policies. These changes are applied prospectively from 1 January 2005 and therefore do not affect the 2004 comparative information. Financial instruments (including preference shares) From 1 January 2005 Unilever applies IAS 32 and IAS 39. These standards have many detailed consequences, however the key areas of impact for Unilever are described below. Under IAS 32, Unilever must present the NV preference share capital as a liability rather than as part of equity. All of the dividends paid on these preference shares are recognised in the income statement as interest expense. The carrying value of the preferential share capital of NV as at 1 January 2005 was €1 502 million. IAS 39 requires certain non-derivative financial assets to be held at fair value with unrealised movements in fair value recognised directly in equity. Non-derivative financial liabilities continue to be measured at amortised cost, unless they form part of a fair value hedge accounting relationship when they are measured at amortised cost plus the fair value of the hedged risk. IAS 39 requires recognition of all derivative financial instruments on the balance sheet and that they are measured at fair value. The standard also places significant restrictions on the use of hedge accounting and changes the hedge accounting methodology. As a result Unilever recognises all derivative financial instruments on balance sheet at fair value and applies the new hedge accounting methodology to all significant qualifying hedging relationships. Non-current assets and asset groups held for disposal Application of IFRS 5 has resulted in reclassifications of non-current assets and asset groups held for disposal in the balance sheet as at 1 January 2005. It does not significantly affect the asset values themselves. Turnover definition From 1 January 2005 Unilever changed its treatment of promotional couponing and trade communications. From 1 January 2005 these costs are deducted from turnover together with other trade promotion costs which are already deducted from turnover. Comparatives have been restated to reflect this change, which has no impact on operating profit or net profit. Preference shares On 15 February 2005 after close of trading NV converted part of the notional value of the €0.05* cumulative preference shares into NV ordinary shares. Upon conversion the holders of the preference shares received one NV ordinary share for every 11.2 preference shares held. This resulted in a total of 18 881 587 NV ordinary shares being transferred to the preference shareholders. These NV ordinary shares had previously been held as treasury shares by NV. As a consequence of the conversion, the notional value of the shares was reduced to €0.05*. A proposal will be put to the Annual General Meeting of NV on 10 May 2005 to cancel the preference shares upon repayment of the notional value in accordance with NV's articles of Association. Acquisitions and Disposals In December 2004 Unilever announced the restructuring of its Portuguese foods business. The deal was subject to regulatory approval and was completed at the end of March. Before the restructuring Unilever Portugal held a 40% stake in the FimaVG foods business, a joint venture with Jeronimo Martins Group, in addition to its wholly owned Bestfoods business acquired in 2000. As a result of the deal the two foods businesses - FimaVG and Unilever Bestfoods Portugal - were unified and the joint venture stakes re-balanced so that Unilever now holds 49% of the combined foods business and Jeronimo Martins Group 51%. Exchange rate conventions The income statement and statement of recognised income and expense on page 5, the movements in equity on page 6 and the cash flow statement on page 7 are translated at rates current in each period. The balance sheet on page 6 is translated at period-end rates of exchange. Supplementary information in US dollars and sterling is available on our website at www.unilever.com/ourcompany/investorcentre/. Reconciliation of profit for the first quarter ended 27 March 2004 (unaudited) Goodwill Previously and reported indefinite Pensions Deferred under lived and tax Tax old intangible Biological similar restatement reclassifying GAAP assets Software assets obligations effect effect € million € million € million € million € million € million € million Turnover 9 357 - - - - - - Turnover of joint (43) - - - - - - ventures Operating costs (8 267) 259 12 (2) - - - Share of operating 10 - - - - - - profit of joint ventures Operating profit/(loss) 1 057 259 12 (2) - - - Share of operating 9 2 - - - - - profit of associates Finance costs (151) - - - - - - Other finance income/ (20) - - - 1 - - (cost) - pensions and similar obligations Share of net profit of - - - - - - - joint ventures Share of net profit of - - - - - - - associates Income from other 2 - - - 11 - - non-current investments Profit/(loss) before 897 261 12 (2) 12 - - taxation Taxation (333) (14) (3) - (4) (24) - Profit/(loss) for the 564 247 9 (2) 8 (24) - period Attributable to: Minority interests 49 1 - (1) - - - Shareholders' equity 515 246 9 (1) 8 (24) - Total Change Joint effect relating ventures of to Restated and transition turnover under associates Dividends Other to IFRS definition IFRS € million € million € million € million € million € million Turnover (43) - - (43) (253) 9 061 Turnover of joint 43 - - 43 - - ventures Operating costs - - - 269 253 (7 745) Share of operating (10) - - (10) - - profit of joint ventures Operating profit/(loss) (10) - - 259 - 1 316 Share of operating (11) - - (9) - - profit of associates Finance costs 12 - - 12 - (139) Other finance income/ - - - 1 - (19) (cost) - pensions and similar obligations Share of net profit of 9 - - 9 - 9 joint ventures Share of net profit of 1 - - 1 - 1 associates Income from other - - - 11 - 13 non-current investments Profit/(loss) before 1 - - 284 - 1 181 taxation Taxation (1) - - (46) - (379) Profit/(loss) for the - - - 238 - 802 period Attributable to: Minority interests - - - - - 49 Shareholders' equity - - - 238 - 753 Reconciliation of equity at 27 March 2004 (unaudited) Goodwill Previously and reported indefinite Pensions Deferred under lived and tax Tax old intangible Biological similar restatement reclassifying GAAP assets Software assets obligations effect effect € million € million € million € million € million € million € million Non-current assets Goodwill 13 556 209 - - - - - Intangible 4 276 833 116 - - - - assets Property, plant 6 750 - - (40) - - - and equipment Biological - - - 27 - - - assets Joint ventures 61 - - - - - - and associates Other 150 - - - 194 - - non-current investments Pension asset 574 - - - (49) - 305 for funded schemes in surplus Trade and other 764 - - - - - (610) receivables due after more than one year Deferred tax - - - - - - 1 181 assets Total 26 131 1 042 116 (13) 145 - 876 non-current assets Current assets Inventories 4 505 - - - - - - Trade and other 5 692 - - - - - - receivables due within one year Financial 1 230 - - - - - - assets Cash and cash 2 347 - - - - - - equivalents Total current 13 774 - - - - - - assets Current liabilities Creditors due (17 654) - - - - - 873 within one year Borrowings (7 485) - - - - - - Trade and other (10 169) - - - - - 873 payables Current tax - - - - - - (873) liabilities Net current (3 880) - - - - - - assets/ (liabilities) Total assets 22 251 1 042 116 (13) 145 - 876 less current liabilities Non-current liabilities Creditors due 9 418 - - - - - - after more than one year Borrowings 8 659 - - - - - - Trade and other 759 - - - - - - payables Provisions for 852 (2) - - - - - liabilities and charges (excluding pensions and similar obligations) Restructuring 824 - - - - - - and other provisions Interest in 28 (2) - - - - - associates Liabilities for 4 407 - - - 179 - 1 559 pensions and similar obligations Pension 1 709 - - - 14 - 739 liability for funded schemes in deficit Pension 2 698 - - - 165 - 820 liability for unfunded schemes Deferred tax 693 (6) 37 (1) (10) 1 111 (683) liabilities Total 15 370 (8) 37 (1) 169 1 111 876 non-current liabilities Shareholders' equity Called up share 642 - - - - - - capital Share premium 1 537 - - - - - - account Other reserves (2 613) - - - - - - Retained profit 6 835 1 049 79 (9) (24) (1 111) - Total 6 401 1 049 79 (9) (24) (1 111) - shareholders' equity Minority 480 1 - (3) - - - interests Total equity 6 881 1 050 79 (12) (24) (1 111) - Total capital 22 251 1 042 116 (13) 145 - 876 employed Total Joint effect ventures of Restated and transition under associates Dividends Other to IFRS IFRS € million € million € million € million € million Non-current assets Goodwill - - - 209 13 765 Intangible assets - - - 949 5 225 Property, plant and - - (57) (97) 6 653 equipment Biological assets - - - 27 27 Joint ventures and - - - - 61 associates Other non-current - - 380 574 724 investments Pension asset for - - - 256 830 funded schemes in surplus Trade and other - - 57 (553) 211 receivables due after more than one year Deferred tax assets - - - 1 181 1 181 Total non-current - - 380 2 546 28 677 assets Current assets Inventories - - (1) (1) 4 504 Trade and other - - (379) (379) 5 313 receivables due within one year Financial assets - - 108 108 1 338 Cash and cash - - (108) (108) 2 239 equivalents Total current assets - - (380) (380) 13 394 Current liabilities Creditors due within - 1 147 - 2 020 (15 634) one year Borrowings - - - - (7 485) Trade and other - 1 147 - 2 020 (8 149) payables Current tax - - - (873) (873) liabilities Net current assets/ - 1 147 (380) 767 (3 113) (liabilities) Total assets less - 1 147 - 3 313 25 564 current liabilities Non-current liabilities Creditors due after - - - - 9 418 more than one year Borrowings - - - - 8 659 Trade and other - - - - 759 payables Provisions for - - - (2) 850 liabilities and charges (excluding pensions and similar obligations) Restructuring and - - - - 824 other provisions Interest in associates - - - (2) 26 Liabilities for - - - 1 738 6 145 pensions and similar obligations Pension liability for - - - 753 2 462 funded schemes in deficit Pension liability for - - - 985 3 683 unfunded schemes Deferred tax - - - 448 1 141 liabilities Total non-current - - - 2 184 17 554 liabilities Shareholders' equity Called up share - - - - 642 capital Share premium account - - - - 1 537 Other reserves - - - - (2 613) Retained profit - 1 147 - 1 131 7 966 Total shareholders' - 1 147 - 1 131 7 532 equity Minority interests - - - (2) 478 Total equity - 1 147 - 1 129 8 010 Total capital employed - 1 147 - 3 313 25 564 EARNINGS PER SHARE Combined earnings per share The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of NV and PLC in issue during the period, less the average number of shares held to meet options granted under various employee share plans. The number of combined share units is calculated from the underlying NV and PLC shares using the exchange rate of £ 1 = €5.445, in accordance with the Equalisation Agreement. This number (expressed in terms of NV shares) increased from 962 million at the start of the year to 979 million at the end of the first quarter (6 412 million to 6 525 million in terms of PLC shares) following the conversion of the €0.05 preference shares in February. The number is expected to reduce as we replenish treasury stock. The calculations of diluted earnings per share are based on (i) conversion into PLC ordinary shares in the year 2038 of shares in a group company under the arrangements for the variation of the Leverhulme Trust; (ii) conversion of the €0.05* NV preference shares; (iii) the exercise of share options by employees. *This amount is a representation in Euros on the basis of Article 67c Book 2 of the Dutch Civil Code, rounded to two decimal places, of underlying Dutch guilders, as these have not been converted into Euros in Unilever N.V.'s Articles of Association. Earnings per share for the first quarter 2005 2004 Combined EPS Thousands of units Average number of combined share units of €0.51 970 260 966 182 Average number of combined share units of 1.4p 6 468 403 6 441 217 €million Net profit attributable to shareholders' equity 934 753 Less preference dividends n/a (7) Net profit attributable to shareholders' equity for 934 746 basic earnings per share calculation Combined EPS per €0.51 (Euros) 0.96 0.77 Combined EPS per 1.4p (Euro cents) 14.44 11.58 Combined EPS - Diluted Thousands of units Adjusted average number of combined share units of €0.51 1 007 820 1 012 542 Adjusted average number of combined share units of 1.4p 6 718 801 6 750 283 €million Adjusted net profit attributable to shareholders' 937 751 equity Combined diluted EPS per €0.51 (Euros) 0.93 0.74 Combined diluted EPS per 1.4p (Euro cents) 13.94 11.13 Combined EPS - American shares Combined EPS per €0.51 NV - New York Share $ 1.26 $ 0.97 Combined EPS per 5.6p PLC - American Depositary Receipt $ 0.76 $ 0.58 Combined diluted EPS per €0.51 NV - New York $ 1.22 $ 0.93 Share Combined diluted EPS per 5.6p PLC - American Depositary Receipt $ 0.73 $ 0.56 DATES The results for the second quarter and for the first half-year 2005 will be published on 4 August 2005 ENQUIRIES: UNILEVER PRESS OFFICE +44 (0) 20 7822 6805/6010 Internet: www.unilever.com E-mail: press-office.london@unilever.com This information is provided by RNS The company news service from the London Stock Exchange

Companies

Unilever (ULVR)
UK 100

Latest directors dealings