4th Quarter & Final Results to 31 December 1999

Unilever PLC Unilever NV 22 February 2000 1. UNILEVER 1999 RESULTS 2. UNILEVER PLANS FASTER GROWTH, WITH BACKGROUND NOTES 3. UNILEVER ANNOUNCES BOARD APPOINTMENTS 4. UNILEVER'S ACQUISITIONS AND DISPOSALS IN 1999 --------------------------------------------------------------- UNILEVER ANNUAL RESULTS 1999 Unilever today announces its unaudited provisional results for the fourth quarter and for the year 1999. 'Margins improved to a record high and we ended the year with strong sales growth in the fourth quarter. We also today announce a plan to accelerate top-line growth and to step up the rate of margin improvement' the Chairmen commented. FINANCIAL HIGHLIGHTS Q4 1999 £ Millions Full Year 1999 constant %change constant %change current %change 6,913 +4% Turnover 27,634 +2% 26,994 -% 732 +8% Operating profit - 3,065 +7% 3,012 +5% before exceptional items 657 +2% Pre-tax profit 2,917 (5)% 2,860 (7)% 427 - % Net profit 1,866 (5)% 1,825 (7)% 470 (1)% Net profit - before 1,990 +3% 1,947 +1% exceptional items EPS 26.59p +1% 26.01p (2)% EPS- before exceptional 28.37p +9% 27.76p +7% items* *See note on page 11 KEY FEATURES Fourth quarter sales increase by 4%. Operating margins before exceptional items up 50 basis points to 11.1% - a record year. Annual earnings per share before exceptionals rise 9% at constant rates, 7% at current rates. A proposed final dividend of 8.57p per 1.40p ordinary PLC share, increasing the total dividend per share by 17%. CHAIRMEN'S COMMENT & OUTLOOK 'We have made good progress pursuing our strategy of brand focus and margin improvement against a challenging economic and competitive background. Our home and personal care categories all grew strongly and we saw further improved margins in foods. We are pleased with the developments in Western Europe and the recovery in South East Asia. Marketing investments in Latin America impacted profitability.' 'The fourth quarter saw the business achieve the highest level of underlying growth for two years. This mostly came from businesses that have already implemented our strategy of focusing on fewer brands. This is early proof the strategy is working. The proposed dividend per share increase demonstrates our confidence in the future sustainability of earnings growth.' 'We expect top-line growth to improve this year. It will be in the range of 3 - 4% with the stronger growth coming later in the year. The driving force will be the continued momentum in developing and emerging markets and further progress in Western Europe and North America. We are confident we will see further margin improvement in 2000 leading to an annual rate of earnings per share growth before exceptional items in the range of 8 - 10%.' N W A FitzGerald A Burgmans Chairman, Unilever PLC Chairman, Unilever NV FULL YEAR FINANCIAL RESULTS Earnings Per Share EPS at constant rates of exchange and before exceptional items, taking account of the share consolidation, rose 9%. Due to the relative strength of sterling the rise in EPS before exceptional items at current rates is reduced by 2% to an increase of 7%. The negative swing in exceptionals further reduces EPS to 2% below 1998. Results Operating profit at constant rates and before exceptional items rose by 7%, whilst net profit, on the same basis, increased 3%. This difference is explained by lower interest income resulting from the reduction in net funds following the payment of the special dividend in June 1999. Net profit after exceptional items is 5% below last year, largely due to the exceptional profit on disposal of Plant Breeding International Cambridge in 1998. At current rates of exchange, net profit after exceptional items decreased 6% in guilders, 7% in sterling and 10% in US dollars, reflecting the relative strength of the latter currency. FULL YEAR PERFORMANCE BY REGION The following commentary is based on operating profit before exceptional items, at constant rates of exchange. EUROPE: Operating profit rose 7% and margins advanced to a record 12% for the year. Volume development in the corporate categories in Western Europe was positive with a full percentage point improvement. The disposal of low yielding food businesses, however, led to a marginal fall in overall sales. Operating profits and margins were ahead of last year. Home and personal care drove growth during the year with outstanding performances in deodorants and personal wash. It was also another good year for laundry with Persil/Omo/Skip tablets extending their sector leadership and the successful launch of Comfort Easy Iron. Market shares advanced in most home and personal care categories and in deodorants we achieved a fourth year of double digit volume growth with strong performances from our brands, Rexona, Axe/Lynx and Sure and the successful roll-out of the new Dove anti-perspirant range. All this was achieved despite intense competitive activity. The year again saw Dove confirm itself as our fastest growing personal care brand across all the categories in which it operates. In foods, profits were up, but volumes were marginally down on last year. Our spreads and cooking products business showed a marked improvement in margins, but volumes continued to track a declining market. Our culinary operations grew strongly with 5% volume growth and our geographic coverage will be enhanced once the recently announced Amora Maille acquisition is completed later in 2000. Ice cream volumes rose 2% - most of the growth coming from multi-packs and desserts, principally Carte D'Or. Sales were ahead in our tea operations, based on the rapid expansion of Lipton ready to drink tea, which grew by 13%, and the successful promotion of speciality teas, notably the Tcha green teas range. In Central and Eastern Europe the expected improvements on the anniversary of the Russian crisis did not materialise in the fourth quarter and results for the year as a whole were below 1998. Efforts in the year were focused on building a local infrastructure and improving our competitiveness so as to be able to benefit from an eventual improvement in trade conditions. NORTH AMERICA: Good volume and share development in most home and personal care categories with weaker results in foods. Our home and personal care businesses delivered an excellent performance, but results in most food categories were lower. There was a modest improvement in overall sales and profits. Volumes in our home and personal care businesses grew a strong 5% over the year with a marked acceleration in the fourth quarter. The fastest growing categories were deodorants, personal wash, with Dove strengthening its No. 1 position and hair, where Thermasilk and Suave were outstanding performers. Our laundry business had a good year ending with 4% growth, recovering well from a poor start in the first quarter. There was a similar development in the prestige business, which returned to growth in the second half of the year on the strength of the Elizabeth Arden launches of Green Tea and Cerruti Image. In our professional cleaning business profits were adversely impacted by a sales reorganisation and some account losses. Foods sales were down 2%. This was due to planned exit from the industrial tomato business, together with the effect of reduced trade inventories in several categories. In margarine, decline in the traditional category was partially offset by the successful launch of Take Control our cholesterol reducing spread that has now taken leadership of that category. In culinary products Wishbone dressings and Rag£ pasta sauce showed excellent progress, however we lost share in side dishes due to supply problems. Novelty ice cream sales increased, but in packaged ice cream Breyers faced intense competitive pressure. AFRICA AND MIDDLE EAST: Our businesses performed strongly in Africa and made good progress in the Middle East. Overall sales increased 8% and volumes grew over 6% in corporate categories. Operating profits and margins were also well ahead for the year. We recorded excellent growth, in particular in laundry, with the Omo brand featuring strongly, in oral care, where Close-Up sustained market leadership in West Africa and in skin where we made good progress through the Pond's franchise. Our tea businesses performed well, and in Dubai we brought our new tea production facilities successfully on stream, enhancing our competitiveness. Improvements in the region were broadly based with particularly good performances in South Africa, Israel and Morocco and a turn-around in Nigeria. ASIA AND PACIFIC: We made excellent progress throughout the region across most countries and categories. In South East Asia we have more than matched the economic recovery whilst elsewhere our businesses have prospered despite less helpful economic environments. Overall results were excellent with volumes rising by over 7% and operating profit 23% ahead of 1998. Results were particularly strong in India, Indonesia, Philippines and Vietnam. There were also creditable performances in China and Japan. This regional picture is one of sustained innovation-led growth. Hair performed strongly with underlying volume growth of 16% driven by new Hazeline shampoos in China and strong performances from Lux in Japan and Sunsilk in the Philippines. Our skin businesses also grew strongly with the outstanding performer being Ponds Double White in Japan.We stepped up levels of marketing support throughout the year and these peaked in the fourth quarter as we invested for growth. Nevertheless margins improved a full percentage point over the twelve month period. Our laundry business also benefited from this increased marketing spend with volumes and shares rising in several countries, notably in India and Indonesia. Overall progress in foods was less satisfactory as tea sales in India only started to recover towards the end of the year following the withdrawal of the discriminatory excise duty on packet tea. LATIN AMERICA: A resilient performance as we invest to protect and build market positions. The year was characterised by difficult economic conditions in several countries coupled with a competitive challenge in our largest regional category, laundry. The fourth quarter saw little change in this competitive dynamic. The necessary marketing and pricing investment have adversely impacted overall profits which declined 6% (21% at current rates). We have retained all our leading positions in all the key markets. Oral, hair and deodorants all had good years, increasing sales and market share with excellent progress being made in the important Brazilian market. Key brand extensions here were Close-Up and Seda. Sales in our foods operation were generally lower. However, overall margins and profits increased, particularly in Mexico. CASH FLOW Cash flow from operations was well ahead of last year, increasing by almost £700 million to £3.7 billion mainly due to lower working capital outflows and improved results (before acquisitions and disposals). Returns from investments and servicing of finance reduced because of lower funds following payment of the special dividend in 1999. BALANCE SHEET The main movements in the balance sheet in the year were in Net Funds, Trade and other creditors, and Capital and reserves. Net Funds, at closing rates of exchange, were £425 million at the end of 1999 compared to over £4 billion at the end of 1998; net gearing remains zero. The decrease mainly reflects the payment of the special dividend in June 1999 (a provision for which was included in Trade and other creditors at the end of 1998), partly offset by strong underlying cash flow during the year. Capital and reserves increased by £1.5 billion to £4.8 billion. This mainly reflects profits for the period, net of the proposed final dividend for 1999, together with the issue of 211 million of NV preference shares, amounting to £0.9 billion in value, to those shareholders in Unilever NV who elected to receive the special dividend in this form. In addition, reserves are also impacted by currency retranslation where the strength of sterling between the two balance sheet dates results in a £281million loss on retranslation of net assets. During the year 27 businesses were purchased for a consideration of £329 million while proceeds from disposal of 23 businesses realised £88 million. FINAL DIVIDEND The Boards will recommend to the Annual General Meetings, to be held 3 May 2000, a final dividend of 8.57p per 1.4p ordinary share of Unilever PLC, an increase of 11% over last year and a final dividend of Fl. 1.91 per Fl. 1.12 ordinary share of Unilever N.V., an increase of 12% over last year. This will bring the total dividend to 12.50p per ordinary share of 1.4p, an increase of 17% over last year and Fl. 2.79 per ordinary share of Fl. 1.12, an increase of 11% over last year. YEAR 2000 The Y2K transition went smoothly, confirming the success of the thorough work done. No significant issues have arisen with supply chain partners following close co-operation with the well executed industry preparations in which Unilever played a leading part. Unilever's spend for its Y2K programme amounts to £200 million. This includes all external costs, associated depreciation on capital expenditure, and directly related internal costs from 1996 to completion of the programme. EURO REPORTING We have been publishing supplementary results information in euro throughout 1999 and will replace the guilder and sterling with the euro as the reporting currency from the first quarter 2000. Following this change supplementary information will be available in sterling and US dollars. Supplementary information in euro is given in the attachment to this announcement. CONSOLIDATED PROFIT AND LOSS ACCOUNT - CONSTANT EXCHANGE RATES (unaudited) In the profit and loss account given below, the results in both years have been translated at constant exchange rates, being the annual average exchange rates for 1998. This reporting convention facilitates comparisons since the impact of exchange rate fluctuations is eliminated. Fourth Quarter £ Millions - constant Full Year 1999 1998 %Incr./ 1999 1998 %Incr./ (Decr.) (Decr.) 6,913 6,662 4 % TURNOVER 27,634 27,094 2 % 669 609 10 % OPERATING PROFIT 2,886 2,955 (2)% 732 676 8 % Operating Profit before 3,065 2,871 7 % exceptional items 9 6 Income from fixed investments 35 25 (21) 31 Interest (net) (4) 105 657 646 2 % PROFIT BEFORE TAXATION 2,917 3,085 (5)% (195) (207) Taxation (918) (1,015) 462 439 5 % PROFIT AFTER TAXATION 1,999 2,070 (3)% (35) (12) Minority Interests (133) (97) NET PROFIT AT CONSTANT 1998 427 427 - % EXCHANGE RATES 1,866 1,973 (5)% 470 477 (1)% Net Profit before 1,990 1,937 3 % exceptional items CONSOLIDATED PROFIT AND LOSS ACCOUNT - CURRENT EXCHANGE RATES (unaudited) The profit and loss account given below is stated at current exchange rates, i.e. the results of each period are translated at the exchange rates prevailing during the appropriate period; further information is given on page 11. The reported results are therefore impacted by exchange rate movements between the periods. Fourth Quarter £ Millions - current Full Year 1999 1998 %Incr./ 1999 1998 %Incr./ (Decr.) (Decr.) 6,635 6,701 (1)% TURNOVER 26,994 27,094 - % 638 615 4 % OPERATING PROFIT 2,835 2,955 (4)% 703 682 3 % Operating Profit before 3 ,012 2,871 5 % exceptional items 8 6 Income from fixed investments 34 25 (20) 33 Interest (net) (9) 105 626 654 (4)% PROFIT BEFORE TAXATION 2,860 3,085 (7)% (186) (208) Taxation (902)(1,015) 440 446 (1)% PROFIT AFTER TAXATION 1,958 2,070 (5)% (35) (12) Minority Interests (133) (97) NET PROFIT AT EXCHANGE RATES 405 434 (6)% CURRENT IN EACH PERIOD 1,825 1,973 (7)% 452 482 (6)% NET PROFIT - before 1,947 1,937 1 % exceptional items COMBINED EARNINGS PER SHARE * 6.11p 5.84p 5 % - per 1.40p (1998: 1.25p) 26.01p 26.45p (2)% ordinary share 5.96p 5.69p 5 % - per 1.40p (1998: 1.25p) 25.36p 25.80p (2)% ordinary share - diluted Preference dividends (13) (4) Dividends on ordinary capital (820) (829) Special dividend - (4,979) PROFIT OF THE YEAR RETAINED 992 (3,839) * See note on page 11 on 'Share consolidation'. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (unaudited) £ Millions Full Year 1999 1998 Net profit 1,825 1,973 Currency retranslation ( 211) (143) Total recognised gains/(losses) since 1,614 1 ,830 last annual accounts SUMMARY BALANCE SHEET (unaudited) £ Millions As at 31st December 1999 1998 Goodwill 400 200 Fixed assets 5,572 5,885 Stocks 3,185 3,351 Debtors 4,777 4,755 Cash and current investments 3,402 7,329 Trade & other creditors (6,326) (11,586) 11,010 9,934 Borrowings 2,977 3,250 Provisions for liabilities and charges 2,848 3,044 Minority interests 360 288 Capital and reserves 4,825 3,352 11,010 9,934 CASH FLOW STATEMENT (unaudited) £ Millions Full Year 1999 1998 Cash flow from operating activities 3,724 3,026 Dividends from joint ventures 18 16 Returns on investments and servicing of finance (103) 45 Taxation (951) (845) Capital expenditure and financial investment (989) (939) Acquisitions and disposals (240) 226 Dividends paid on ordinary share capital (4,848) (719) CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT OF (3,389) 810 LIQUID RESOURCES AND FINANCING Management of liquid resources 3,740 (1,341) Financing (96) 28 INCREASE / (DECREASE) IN CASH IN THE PERIOD 255 (503) RECONCILIATION OF CASH FLOW TO MOVEMENT IN NET FUNDS NET FUNDS AT 1 JANUARY 4,079 3,183 INCREASE / (DECREASE) IN CASH IN THE PERIOD 255 (503) Cash flow from (increase)/decrease in borrowings 99 (16) Cash flow from increase/(decrease) in liquid (3,740) 1,341 resources Change in net funds resulting from cash flows (3,386) 822 Borrowings within group companies acquired (19) (11) Borrowings within group companies sold 3 2 Liquid resources within group companies acquired 2 - Liquid resources within group companies sold - (1) Non cash movements (141) (7) Currency retranslation (113) 91 MOVEMENT IN NET FUNDS IN THE PERIOD (3,654) 896 NET FUNDS AT 31 DECEMBER 425 4,079 GEOGRAPHICAL ANALYSIS Fourth Quarter £ Millions Full Year 1999* 1998* %Incr./ 1999** 1999* 1998* %Incr./ (Decr.)* (Decr.)* Turnover 2,963 2,961 - % Europe 12,378 12,571 12,711 (1)% 1,439 1,427 1 % North America 5,822 5,683 5,640 1 % 427 380 13 % Africa and Middle East 1,514 1,608 1,439 8 % 1,128 1,005 12 % Asia and Pacific 4,429 4,261 3,888 10 % 956 889 8 % Latin America 2,851 3,511 3,362 4 % 6,913 6,662 4 % TURNOVER 26,994 27,634 27,094 2 % Operating profit - before exceptional items 286 207 38 % Europe 1,491 1,513 1,420 7 % 214 244 (13)% North America 641 626 605 3 % 35 27 33 % Africa and Middle East 165 176 150 17 % 87 86 1 % Asia and Pacific 435 417 341 23 % 110 112 (1)% Latin America 280 333 355 (6)% 732 676 8 % Sub-total 3,012 3,065 2,871 7 % (63) (67) Exceptional items (177) (179) 84 669 609 10 % OPERATING PROFIT 2,835 2,886 2,955 (2)% % % Operating margin - before % % % exceptional items 9.7% 7.0% Europe 12.0% 12.0% 11.2% 14.8% 17.1% North America 11.0% 11.0% 10.7% 8.2% 6.9% Africa and Middle East 10.9% 10.9% 10.0% 7.7% 8.6% Asia and Pacific 9.8% 9.8% 8.8% 11.5% 12.6% Latin America 9.8% 9.5% 10.6% 10.6% 10.1% OPERATING MARGIN BEI 11.2% 11.1% 10.6% 9.7% 9.1% OPERATING MARGIN 10.5% 10.4% 10.9% * at constant 1998 annual average exchange rates. ** at exchange rates current in the year. OPERATIONAL ANALYSIS Fourth Quarter £ Millions Full Year 1999* 1998* %Incr./ 1999** 1999* 1998* %Incr./ (Decr (Decr.)* TURNOVER 3,233 3,325 (3)% Foods 13,508 13,797 14,103 (2)% 1,300 1,365 (5)% Oil and dairy based 4,795 4,921 5,154 (5)% foods and bakery 759 794 (4)% Ice cream and beverages 4,372 4,456 4,437 - % 1,174 1,166 1 % Culinary and frozen products 4,341 4,420 4,512 (2)% 1,579 1,473 7 % Home Care and 5,998 6,250 5,905 6 % Professional Cleaning 1,909 1,737 10 % Personal Care 7,032 7,122 6,680 7 % 192 127 51 % Other Operations 456 465 406 14 % 6,913 6,662 4 % TURNOVER 26,994 27,634 27,094 2 % OPERATING PROFIT - before exceptional items 285 286 - % Foods 1,340 1,360 1,339 2 % 168 141 19 % Oil and dairy based 513 524 495 6 % foods and bakery (15) 5 - % Ice cream and beverages 391 399 399 - % 132 140 (5)% Culinary and frozen products 436 437 445 (2)% 123 137 (10)% Home Care and 562 576 603 (4)% Professional Cleaning 294 233 26 % Personal Care 1,040 1,057 855 24 % 30 20 53 % Other Operations 70 72 74 (3)% 732 676 8 % Subtotal 3,012 3,065 2,871 7 % (63) (67) Exceptional items (177) (179) 84 669 609 10 % OPERATING PROFIT 2,835 2,886 2,955 (2)% OPERATING MARGIN - before exceptional items 8.8 % 8.6% Foods 9.9 % 9.9% 9.5% 13.0% 10.4% Oil and dairy based foods and bakery 10.7 % 10.6% 9.6% (2.0)% 0.6% Ice cream and beverages 8.9 % 8.9% 9.0% 11.3% 11.9% Culinary and frozen products 10.1 % 9.9% 9.9% 7.8% 9.3% Home Care and Professional Cleaning 9.4 % 9.2% 10.2% 15.4% 13.4% Personal Care 14.8 % 14.8% 12.8% 15.4% 15.3% Other Operations 15.4 % 15.4% 18.2% 10.6% 10.1% OPERATING MARGIN BEI 11.2 % 11.1% 10.6% 9.7% 9.1% OPERATING MARGIN 10.5 % 10.4% 10.9% * at constant 1998 annual average exchange rates ** at exchange rates current in the year NOTES Acquisitions In 1999 the effect on turnover and operating profit of acquisitions made in the year was £90 million and a £4 million loss respectively. Exchange Rates The results for 1999 and the comparative figures for 1998 have been translated at constant average rates of exchange, being the annual average rates for 1998. For our reporting currencies these were £1 = Fl. 3.29 = US $1.66. In addition, the results, earnings per share and cash flow statement have been translated at rates current in each period. For our reporting currencies these were: Fourth Quarter Full Year 1999 £1 = Fl. 3.46 = US $ 1.63 £1 = Fl. 3.35 = US $ 1.62 1998 £1 = Fl. 3.15 = US $ 1.67 £1 = Fl. 3.29 = US $ 1.66 The balance sheet figures have been translated at year-end rates of exchange. For our reporting currencies these were £1 = Fl. 3.55 = US $1.62 (31 December 1998: £1 = Fl. 3.12 = US $1.66). Share consolidation On 10th May 1999 the 1.25p ordinary shares of PLC were consolidated, so that every 112 1.25p ordinary shares was replaced by 100 1.40p ordinary shares. This consolidation was associated with the payment on 9th June 1999, of a special dividend of 66.13p per 1.25p share, so that the economic impact was that of a share buy back at fair value at that date and therefore, in accordance with UK Accounting Standard FRS14, earnings per share for prior periods have not been restated. 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 year, 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 = Fl. 12, in accordance with the Equalisation Agreement, taking into account the share consolidation. The diluted earnings per share is based on the average number of share units, plus all shares under option together, with certain PLC shares which may be issued in 2038 under the arrangements for the variation of the Leverhulme Trust. The number of shares is reduced, in accordance with FRS 14, by the number of shares that could be purchased at fair value with the expected proceeds from the exercise of options by employees. Constant rates Current rates COMBINED EPS Thousands of units 1999 1998 1999 1998 1.40p 1.25p 1.40p 1.25p Net profit 1,866 1,973 1,825 1,973 less: Preference dividends 13 4 13 4 Net profit attributable to 1,853 1,969 1,812 1,969 ordinary capital Average number of combined 6,967,884 7,441,098 6,967,884 7,441,098 share units Combined EPS 26.59p 26.45p 26.01p 26.45p COMBINED EPS - Before Thousands of units exceptional items 1999 1998 1999 1998 1.40p 1.25p 1.40p 1.25p Net profit 1,866 1,973 1,825 1,973 Add back exceptional items 124 (36) 122 (36) net of tax Net profit before exceptional 1,990 1,937 1,947 1,937 items less: Preference dividends 13 4 13 4 Net profit attributable 1,977 1,933 1,934 1,933 before exceptional items Average number of combined 6,967,884 7,441,098 6,967,884 7,441,098 share units Combined EPS before 28.37p 25.97p 27.76p 25.97p exceptional items COMBINED EPS - Diluted Thousands of units 1999 1998 1999 1998 1.40p 1.25p 1.40p 1.25p Net profit attributable to 1,853 1,969 1,812 1,969 ordinary capital Adjusted average combined 7,144,743 7,627,728 7,144,743 7,627,728 share units Combined diluted EPS 25.94p 25.80p 25.36p 25.80p Provisional Status The profit and loss account, balance sheet and cash flow and supplementary information contained in this document is provisional and an abridged version of that which will appear in the Group's full accounts to be published on 29 March 2000. The full accounts for Unilever N.V. and Unilever PLC have not yet been filed with the Commercial Registry in the Netherlands, the Registrar of Companies in the United Kingdom or the Securities and Exchange Commission in the United States, and have not yet been reported on by the auditors. Dividends The Boards have resolved to recommend to the Annual General Meetings to be held on 3 May 2000 the declaration of final dividends in respect of 1999 on the Ordinary capitals at the following rates which are equivalent in value at the rate of exchange applied in terms of the Equalisation Agreement between the two companies: NV Fl. 1.91 per ordinary share (1998: Fl. 1.70), bringing the total of NV's dividend for 1999 to Fl. 2.79 per ordinary share (1998: Fl. 2.51). PLC 8.57p per ordinary share (1998: 7.75p), bringing the total of PLC's dividend for 1999 to 12.50p per ordinary share (1998: 10.70p). The NV final dividend will be paid on 22 May 2000, to shareholders registered at close of business on 4 May 2000. The PLC final dividend will be paid on 22 May 2000, to shareholders registered at close of business on 25 April 2000. In previous years Advance Corporation Tax ('ACT') in respect of any dividend paid by PLC was treated as part of the dividend for the purpose of equalising NV's and PLC's dividends under the Equalisation Agreement. In line with this, PLC's 1998 interim dividend was calculated by reference to the then rate of ACT (twenty/eightieths). ACT was abolished with effect from 6 April 1999 and therefore PLC's 1998 final dividend, and all 1999 dividends have been calculated without reference to ACT. Dates The Annual Review and Annual Accounts 1999 will be published on 29th March, 2000. The results for the first quarter 2000 will be published on Wednesday 10th May, 2000. Salient figures for the above results will be published in the Financial Times and Daily Telegraph on Wednesday 23rd February 2000. Enquiries: Unilever Press Office 0171 822 6805 e-mail: press-office.london@unilever.com Internet: http://www.unilever.com UNILEVER PLANS FASTER GROWTH Unilever today detailed its plans to accelerate top line growth and step up the rate of margin improvement. In September we announced our intention to focus on fewer, stronger brands to promote faster growth. Today we announce a series of linked initiatives to align our entire organisation behind these growth ambitions. By 2004 these will increase annual top line growth to 5 per cent and operating margins to 15 per cent, a marked acceleration of previously announced targets. They will underpin our commitment to double digit earnings growth. 'We see our future in a portfolio of strong brands with international and local scale. These will increasingly reach the consumer via a diversity of channels and a variety of communications media. That is at the heart of what we are announcing today', said Chairman Antony Burgmans/Niall FitzGerald. The principal components of the plans are :- Brands: We will concentrate product innovation and brand development on a focussed portfolio of 400 leading brands. These have been chosen both on the basis of the strength of their current consumer appeal and their prospects for sustained growth. They include familiar brands such as Dove, Lux, Lipton, Magnum and Calvin Klein fragrances. We will invest a total of £1.0 billion in additional marketing support over five years and by 2004, we expect this investment to have driven growth rates in the focussed portfolio to at least 6 per cent per annum. E-Business: E-Business is directly relevant to our growth plans in the areas of brand communication and building direct relationships with consumers. The development of on-line selling will be pioneered by the recently announced venture with iVillage. Alliances with AOL, Microsoft, Excite@Home and WOWGO are in place to support brand communication and build consumer understanding. E-Business also offers significant opportunities in business to business transactions throughout the supply chain and we will be rolling out a global e-procurement system over the next two years. We are intent on achieving a rapid expansion of E-Business and have committed £130 million to these initiatives in 2000 and this will grow. Supply Chain: Our local businesses will be involved in developing plans to re-order our manufacturing activities into integrated regional networks in support of our brands. Our target is a world class supply chain based on some 150 key sites plus a number producing principally for local markets. As a consequence we expect there will be a substantial reduction in the number of manufacturing sites, probably by around 100. Provision for the costs and asset write downs, which are expected to total in the region of £2.0 billion, will be made as necessary consultations are completed and specific plans finalised. Simplification: Concentrating on 400 brands will give us the opportunity to focus resources where they can be most effective, reduce overheads and streamline the Corporate Centre. Central to the plans will be revised knowledge and information systems to support our leading brands and the re-designed supply chain. The costs, estimated at £1.3 billion, will be provided for as plans are implemented. Under-performing Businesses: The remaining businesses that do not meet performance standards or which are no longer part of our strategy, will be re-organised or divested. Specifically we will restructure Elizabeth Arden during 2000, as part of our plans to create a fast growing international cosmetics and fragrance business. The future of our European Bakery business is under review. It is being restructured to improve performance significantly or it will be divested by the year-end. These initiatives are planned to deliver annualised savings of £1.0 billion by 2004. Of those savings, £750 million will be allocated to margin improvement and £250 million to increasing resources behind the 400 leading brands. An additional £200 million currently supporting non-priority brands will be reallocated to the portfolio of leading brands, creating an increase in annual investment of £450 million by 2004. The programme is estimated to cost £3.3 billion in total, the majority of which is expected to be exceptional restructuring cost. It is likely to lead to a reduction of around 25,000 jobs over the next five years, primarily in Europe and the Americas, representing ten percent of Unilever's total workforce. Niall FitzGerald/Antony Burgmans said: 'The move towards a streamlined, more focused organisation will dramatically improve our ability to market our leading brands. At the same time, we will continue to look aggressively for value-adding acquisitions and alliances that will further consolidate and reshape our industries. 'We are determined to deliver a step change in Unilever's growth rate and further improve its operating performance. Today we are announcing changes that mobilise the entire organisation behind our brands to drive growth and margin improvement. There will be changes in the top organisation and incentive schemes to put sharper focus on accountability and delivery. 'We are very aware that these initiatives will lead to job losses over the five year period, but they are necessary for the long-term health of the company. We will take the utmost care to implement these changes in close consultation to minimise the personal impact.' UNILEVER PLANS FASTER GROWTH - Background 1. BRANDS The portfolio of 400 brands on which we will focus has been selected for: Brand Appeal i.e. the strength of their current consumer appeal and how well they will meet expected and emerging consumer needs over the next five to ten years, and Brand Scale i.e. their potential to justify and sustain significant investment in technology, innovation and brand communication. The portfolio has been classified into three types of brand, which will determine the nature and degree of innovation and development they will receive: International Brands These have a common appeal to consumers in many countries, enabling common brand positionings, advertising campaigns and other marketing synergies. Examples are Lipton tea or Magnum ice cream, which can be found in most countries of the world, with formulations sufficiently similar to permit largely similar marketing. Other examples are Dove soap and personal care products, Omo fabric detergent, CloseUp toothpaste and Calvin Klein fragrances. International Brand Positionings These cover brands where the marketing mix is focused on achieving the same consumer positions, but where the brand names, for many reasons, are different. Examples in Foods are Becel (Germany, Netherlands) and Flora (UK), spreads which are both positioned in the heart-health segment. Also, PG Tips (UK), Bushells (Australia), Home Cup (Africa) and Ting Hua (China) are all positioned as the archetypal tea brand in their particular market. Local Jewels These are brands with an exceptionally strong and often unique position, and generally a long history, in particular countries or regions. Examples are Oxo bouillon and Persil (UK), Wishbone salad dressing (USA), Joko tea (Africa), Unox and Andrelon shampoo (Netherlands). Average growth rates of the top 400 brands over the last two years has been 4.6 per cent per annum, with negative growth over-all for the remainder. By 2004 we will have accelerated growth for the 400 leading brands to over 6 per cent per annum. The impact of portfolio focus on growth and margin has already been strikingly demonstrated in the 1998 performance of HPC Europe and Elida Faberge Brazil, two early adopters of brand focus, and is now impressively confirmed in the results of these two businesses in 1999. E-BUSINESS BRIEFING PAPER We are actively pursuing e-business opportunities, through partnerships where appropriate. Our strategy is to develop e-business models to interact directly with consumers and to identify scalability. We will use Web technologies to support procurement and supplier management applications to improve business processes and linkages with key customers. E-Consumer We have established Interactive Brand Centres in North America, Europe and Asia to develop Internet expertise for all our marketeers. Relationships We are building the capability to provide information and services to consumers quickly through alliances with existing independent Portals for specific targeted audiences. These include Women through MSN's WomenCentral, and iVillage and WOWGO, a new European portal for teenage girls. Brand Communication Our Brand Communication strategy, via online advertising and sales promotion and information, has concentrated on using existing brands. Examples are Mentadent (oral hygiene tips), Lipton Recipe Secrets (recipes), Dove Spa (skin care advice) and www.eat.com. Business to Consumer We are experimenting with ways to meet consumer needs directly by using the Web and other channels to provide products when and where consumers want them. Women trying to conceive can now purchase Unipath's ClearPlan Easy Fertility Monitor direct from www.clearplan.com. An alliance with Excite@Home, enables us to develop service offerings for interactive TV. The development of on-line selling will be pioneered by the recently announced venture with iVillage. E-Commerce We are moving quickly to use Web based applications for greater efficiency in our entire supply chain. Retailer Relationships We see opportunities to use internet technology to build on partnerships with customers, from the international retailers to the small local store, to improve our service levels and to create even more efficient distribution systems with lower stock levels. Existing Efficient Customer Response (ECR) programmes including supplier managed inventories will be developed further and extended to more customers. Procurement We are rapidly expanding procurement via e-auctions on the Web, successfully piloted in the US which is our centre of expertise in this area. We intend to roll out e-procurement to build our global buying networks rapidly in partnership with players who are leaders in this field and to migrate a significant part of our procurement onto the Web in the next two years. Internal Processes We already have a broad capability for accessing and sharing knowledge internally through a dedicated intranet linking 70,000 desktops, through which, amongst other things, we track and disseminate innovation projects. This resource will be leveraged further to facilitate global marketing applications and assessment of consumer trends. SUPPLY CHAIN BRIEFING PAPER The margin improvements of recent years owe much to the adoption of regional manufacturing strategies and the consequent programme of plant rationalisation. We will now accelerate this programme, to ensure the focussed portfolio of 400 brands is supported by an equally focussed procurement and manufacturing base. The procurement initiatives already announced and which will produce savings of £1.0 billion by end 2002, are in addition to this programme. An international framework for manufacturing Central to our plans is a network of some 150 key manufacturing sites which will be targeted for investment and development. They will be selected from among our 380 existing sites world-wide with the overall aim of servicing the 400 brands in the most cost effective way. Of the balance, probably 100 sites will no longer be required, while the remainder will service more local markets. The selection criteria for the key sites are clear. In addition to leveraging scale, the relevance of the products made and the efficiencies achieved plant by plant will determine selection. There will be further benefits from driving these sites to achieve the highest performance standards, benchmarked to the best practice of FMCG manufacture. Procurement There will be a similar programme to align our international procurement activity with the requirements of the 400 brands. The function will be re-organised, with emphasis on reducing component complexity and buying on an international scale. Business to Business e-commerce will be a vital tool in achieving our goal and we plan to migrate a significant part of our procurement spend onto the Web in the next two years. Cost/Benefits The programme is expected to cost £2.0 billion in total. Provision for these costs, including asset write-downs and redundancies, will be made progressively as plans are finalised. The exact timing will be governed in many territories, particularly Western Europe, by the need for consultation prior to finalisation of plans. In addition to general benefits of improved efficiencies and reduced costs, we plan to deliver a further 20 per cent improvement in fixed asset utilisation by 2004. Next Steps The necessary reviews are nearing completion and the overall framework is clear. Specific decisions will be taken in due course, following all necessary or relevant consultation. Specific announcements will follow, and we will publicly report progress. SIMPLIFICATION Reducing the number of brands we actively manage from 1600 to 400 is a major simplification of our core business and provides an opportunity to simplify many other activities. Reduced Overheads Our organisation and management structure will be re-directed to the support of 400 brands. This streamlining will mean not only more support behind fewer priorities - but also a significant reduction in overall resources. Savings will be made in Regional and Category managements as the direction of our leading brands and our global supply chains are aligned. This also provides an opportunity for streamlining our Corporate Centre. Shared Services Simplification is also made possible at a national and regional level where we will seek to use Unilever scale wherever possible. Our respective Foods and HPC companies in individual countries and regions will be progressively integrated, yielding savings in back office costs. Most importantly this will facilitate a single interface with our customers - increasingly we will deal with the trade on a national or regional footing as a Foods and/or an HPC business. Systems Convergence We already have a Unilever-wide communications network which links 70,000 employees through desk and lap top PCs. However, our knowledge and information management systems are currently based on local operating company requirements and often reflect local business processes. This will change. We are moving to a harmonised and shared knowledge base for Unilever. 400 brands managed regionally and globally, require fewer systems. At the same time as rationalising the absolute number of systems, we will be concentrating financial processes into a small number of shared service centres around the world. Costs/Benefits The costs of this re-engineering of our management services is estimated at £1.3 billion up to 2004. Next Steps The necessary reviews are nearing completion and the overall framework is clear. Specific decisions will be taken in due course, following all necessary or relevant consultation. Specific announcements will follow, and we will publicly report progress. UNILEVER ANNOUNCES THREE NEW DIRECTORS Three new directors will be recommended to Unilever shareholders for election at their annual general meetings in London and Rotterdam on May 3, 2000. They are: Keki Dadiseth (b: 20-12-45): chairman of Hindustan Lever Ltd - the group's Indian subsidiary - to become a director and member of the Executive Committee. His first assignment will be to undertake a review of Unilever's top organisation and report during the third quarter of 2000. Andre van Heemstra (b: 31-01-46): president, East Asia Pacific Business Group, to become personnel director and a member of the Executive Committee. Charles Strauss (b: 21-01-43): president, Home & Personal Care-North America Business Group, to become a director and will also assume chairmanship of the North America Committee, which co-ordinates Unilever's North American businesses. Jan Peelen, currently personnel director and a member of the Executive Committee, will retire at the annual shareholders' meetings. Robert Phillips, currently a director and chairman of the North America Committee, will also retire at those meetings. Advisory Directors Unilever has also announced today that The Rt Hon The Lord Brittan of Spennithorne, QC, former vice president of the European Commission, will become an advisory director of Unilever N.V. and Unilever PLC with effect from May 1, 2000 Sir Derek Birkin, who has served as an advisory director since 1993, will retire at the annual shareholders'meetings. He has served on the Nomination and Remuneration Committees of the Board. Business Group President Tex Gunning, chairman of Van den Bergh Nederland, will be appointed as president, East Asia Pacific Business Group. Biographical Details Keki Dadiseth: joined Hindustan Lever Ltd in 1973, and undertook a number of roles before being seconded to Unilever in 1984 where he held senior financial and commercial positions. Returning to India in 1987 he became vice-president, personnel and two years later took on the additional responsibility for HLL's personal products business. In 1991 he was appointed executive director and head of detergents. He was made vice-chairman and managing director of HLL in 1995, and became chairman in August 1996. Andre van Heemstra: joined Unilever in 1970 and after holding various positions with Lever in Holland, he was appointed director, marketing and sales for East Africa Industries, Kenya, in 1980. Four years later he was appointed managing director for detergents and personal products, Turkey. In 1988 he returned to the Netherlands where he held various senior marketing and management positions until 1992 when he was appointed chairman of Langnese-Iglo GmbH, Germany. In July 1996 became president of East Asia Pacific Business Group. Charles Strauss: held a number of senior marketing and management positions before joining Unilever in 1986 on its acquisition of Ragu Foods, of which he was president and ceo. He continued in this role until his appointment as chairman and ceo of Unilever Germany's subsidiary, Langnese-Iglo in 1989. In 1992 he became president and ceo of Lever Brothers Company, New York, and a director of Unilever United States Inc. He was president of Unilever's Latin America business group from March 1996 to September 1999 when he took up his present duties. UNILEVER ACQUISITIONS AND DISPOSALS IN 1999 Unilever made 27 acquisitions in 1999. The most important were: Varela SA Colombia Home & Personal Care Mountain Cream China and Hong Kong Ice Cream Beijing Tea Processing Factory China Tea Sociedad Industrial Dominicana Dominican Republic Home & Personal Care and Ice Cream Miro Aebe Greece Tomato Products Rossell India Tea Plantation Selecta Dairy Products Inc. Philippines Ice Cream Slotts & Kockens Sweden Culinary Brands In addition to the above, agreement was reached to acquire two leading French Culinary Brands, Amora and Maille, for £460 million. Unilever disposed of 23 businesses during 1999, including Homann, a salad and dressing business in Germany, a beverage business in Dubai and various other small businesses. The net consideration was £240 million. NOT FOR PUBLICATION BEFORE 0700 HOURS ON TUESDAY 22 FEBRUARY 2000 UNILEVER PLC NOTICE is hereby given that 25 April 2000 is the RECORD DATE for the final ORDINARY DIVIDEND for 1999 payable on 22 May 2000. S G WILLIAMS Secretary Port Sunlight Wirral Merseyside CH62 4UJ In accordance with the current procedure of The London Stock Exchange, the 1.4p Ordinary Shares in Unilever PLC will be quoted ex. dividend on 17 April 2000. American shares each representing four 1.4p Ordinary Shares in Unilever PLC The arrangements between Morgan Guaranty Trust Company of New York ('Morgan') and Unilever PLC for the issue by Morgan in New York of Depositary Receipts for American shares against the deposit with Morgan in London of 1.4p Ordinary Shares in Unilever PLC provide that acceptance of ex. dividend shares tendered to Morgan in London for deposit on or before the record date fixed in New York for payment of a dividend on the American shares, shall be deferred until after such record date. The record date fixed for the final dividend for 1999 on the American Shares is 25 April 2000.

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