AGM Statement

Unilever PLC
9 May 2001

Release: Immediate



                    ADDRESS TO UNILEVER PLC ANNUAL MEETING

             BY NIALL FITZGERALD, CHAIRMAN, Wednesday May 9 2001





I propose to divide my remarks into three sections.

First I will review our performance, including our progress in integrating
last year's major acquisition, Bestfoods.

Then I will give you an update on the first year of our key Path to Growth
strategy which is designed to lead the business to materially higher levels of
performance by the year 2004.

Lastly I will briefly deal with the outlook for 2001 and identify issues which
are relevant to the Company's prospects in the coming year.

So let me turn to the headlines of our performance in 2000.



Headlines 2000

By any measure 2000 was an extraordinary year for Unilever and one of
significant achievement. As well as being the first year of our ambitious Path
to Growth programme we then added to the excitement with Euro28 billion worth
of strategic acquisitions and a major reorganisation of the Business.

Our two divisions; Home and Personal Care and Foods which, following the
merger with Bestfoods, is now called Unilever Bestfoods are up and running
fast since 1st January. They have been fully populated with management at
divisional, regional and country levels. And they have outstanding leaders in
Keki Dadiseth and Patrick Cescau.

So, after all this and after the first year of the Path to Growth programme I
believe we are well on plan. Momentum is building, as is our confidence that
we will achieve the very challenging targets we have set ourselves.

Let me now share with you the highlights of our performance last year.



Overall Performance

First a health warning. All the numbers and percentages that follow are
expressed in Euro and at constant exchange rates - that is to say 2000 average
exchange rates. We believe this is the best way to monitor the underlying
performance of our operations year on year.

The principle point to note when looking at our overall profit and loss
account is the impact which exceptional items have had. When we announced Path
to Growth we also spelt out the restructuring costs that would be involved for
the five years up to 2004. These were estimated at Euro5 billion.

2000 was the first year in which a significant proportion of that expenditure
hit our profit and loss account. Overall, we are slightly ahead in the
restructuring plan, which for shareholders, is good news. But the consequence
was a Euro1.3 billion charge in the fourth quarter taken as an exceptional
item. This exceptional charge, together with the amortisation of goodwill of
Euro386 million linked to the acquisitions we made, had a severe headline
effect on our numbers. It is inevitable, but it is planned. Most importantly,
it reflects our determination to do the right thing and to transform Unilever
fit for success in the 21st Century.

Sales

Total sales grew by 7% and amounted to almost Euro44 billion. This figure
includes the net contribution of acquisitions, less disposals, and of course
Bestfoods' contribution for the last few months of the year.

On a full year basis, our acquisitions, Amora Maille and Ben and Jerry's, each
grew their sales by 7%. Better even than this, Slim.Fast grew by an
outstanding 22%. Our plans for growing and developing these businesses are on
track.

Operating Profit

Operating profit before exceptional items and goodwill amortisation was Euro
5.3 billion - a 16% improvement on last year.

Total exceptional charges in the year were almost Euro1.8 billion. We also
incurred other charges of Euro386 million for amortisation of goodwill for the
full year.

It is these charges, together with the higher interest payments due to
acquisitions, which resulted in 39% fall in profit at the pre-tax level. This
led in turn to a 58% drop in net profit because goodwill amortisation is not
tax deductible.

The proper way to look at this however, is as a measure of the investment we
have made in the Company's future, which will come clear when I report on Path
to Growth.

EPS and Dividend

Earnings per share, again before exceptional items and goodwill amortisation,
grew 7% year on year. But for the dilutive effect of the acquisition and
disposal activity it would have been 10.5% - at the top end of our forecast
for the year.

Our confidence in the future remains strong and this is reflected in the
proposed final dividend of 8.67p which brings the total for the year to 13.07p
- an increase of 5% over last year.

Balance Sheet

With regard to the balance sheet, last year I said that our zero gearing and
triple AAA rating was a measure of the financial muscle we could bring to bear
if the right acquisitions came along. Well, we seized the opportunity, we
spent Euro28 billion in cash and have maintained an A investment grade. We
have used the international bond markets with real expertise and with our
disposal programme and strong cash flow of almost Euro7 billion in 2000 - we
are rapidly reducing our borrowings and rebuilding our financial flexibility.



The Bestfoods Story

No summary of 2000 would be complete without specific mention of the Bestfoods
acquisition and it's place in the Unilever family.

Let me first pay credit to the skill shown by both the Unilever and Bestfoods
teams in the near flawless execution of what was one of the largest cash
cross-border acquisitions in history.

Everything went according to plan and we were able to take full control of the
business in the fourth quarter of 2000

Everything we have seen in the Bestfoods business confirms our confidence in
the quality of the brands, the business and most importantly, the management.

We have many reasons to be delighted with the Bestfoods acquisition but not
the least of them is the injection of talent and enthusiasm that the Bestfoods
management have brought to our own operations and the broader horizons and
sense of challenge that Unilever is able to give Bestfoods people in return.
It's a very positive bargain.

We are confident that the Unilever Bestfoods combination will deliver both
significant strategic advantage and shareholder value.

Now let me turn to our Path to Growth strategy - an initiative that lies at
the heart of everything we are currently doing. I start by summarising the
goals we set out a year ago and which we subsequently enhanced when we
acquired Bestfoods.



Path to Growth Goals

By 2004 we aim to achieve:-

*     top line growth of 5% to 6%

*     an operating margin in excess of 16%

*     earnings per share growth of at least 10% each year

The strategy has many features and will touch the lives of everybody who works
for Unilever - indeed I believe it has already done so. It will change the
nature of our business, the way we do business, how we organise ourselves and
how we motivate ourselves.

I would like to concentrate on three key elements of that strategy.

*     Cost reduction: a major reduction in the supply chain and other costs of
administration;

*     Brand focus: concentrating on a portfolio of leading brands, and

*     Enterprise Spirit: the promotion of a spirit of enterprise throughout
our business.

Cost Reduction

This comprises a major restructuring programme designed to deliver annual
savings of at least Euro1.5 billion by 2004 together with a complete revision
of our approach to buying using Unilever's global scale to deliver savings of
a further Euro1.5 billion.

These savings provide the funds to fuel the top line growth and margin
expansion targets which lie at the heart of Path to Growth. So, if we can
pocket them early we will be able to single mindedly concentrate on promoting
top line growth. I am pleased to report that already almost two thirds of the
savings programme has been worked out and agreed.

For instance, on site closures, we anticipate 100 sites around the world will
be closed as we rationalise and concentrate our centres of production.
Forty-three such closures have already been approved and twenty three sites
have been closed by the end of 2000.

It is a similar story with regard to overheads and information technology
savings, where more than half the money we will need to spend to achieve these
has already been committed.

So the investment required to make the savings is well underway.

But more than this, significant real savings are already being achieved. In
our global buying programme, over Euro600 million in savings was banked in
2000 and a further Euro600 million has been identified for 2001.

So, on any measure, this aspect of the Path to Growth programme is well
underway.

Brand Focus

Brand Focus is the element of the programme which generally receives the most
attention and which lies at the heart of the change to our business. It
involves concentrating on some 400 leading brands throughout our world-wide
operations. As a consequence we are either withdrawing from, re-positioning or
selling brands that do not have the potential, to become global, regional or
local leaders.

It is a case of concentrating resources behind fewer, bigger, brands which
have an enduring and broad based consumer appeal - and have the best prospects
for growth.

Sales of our leading brands grew by no less than 6.7% last year, with 2.9% of
that coming from acquisitions. These 'brand heroes' accounted for no less than
78% of Unilever sales in 2000.

Having announced this programme of focussing on fewer brands, there were a few
raised eyebrows last year when we immediately embarked upon the largest buying
spree in our history. However, there is no inconsistency in this.

While Bestfoods, Ben and Jerry's and Slim.Fast may have many differing
characteristics, their one common feature is that they have a small number of
big brands, all with strong growth potential.

Bestfoods brings us greater geographic reach in foods with leading brands
including Knorr and Hellmans, as well as an outstanding global food service
operation.

Ben and Jerry's and Slim.Fast are predominantly US brands which can, and will,
be expanded globally through our infrastructure. They are prime examples of
what we are aiming to achieve. A portfolio of international and local brands
with clear No. 1 or No. 2 positions in their markets.

The process of focussing our brand portfolio really accelerated during 2000.
Excluding Bestfoods, we now have some 900 active brands in our portfolio -
which compares with some 1600 a year ago - and a further 300 have been
targeted for delisting or disposal.

Most importantly, other brands will be merged or will migrate to the leading
brands over the next 24 months. This is a complex process and requires great
skill. It is easy to change a name - but the marketing challenge is to bring
the consumer with you. A prime example of how this was done, was with Radion
and Surf.

When we talk about brand migration, we are really talking about migrating the
consumers. It is not just about a packaging or name change, it's about the
emotions of our consumers who love one brand and we want them to transfer
their affections to another!

We also sold brands in the last 12 months, most notably Elizabeth Arden and
the collection of European culinary brands that were disposed of as part of
the process of obtaining regulatory approval for the Bestfoods deal. Some of
these were old friends like Batchelors and Oxo and we were sorry to say
goodbye. We believe those brands and the people who work with them will
prosper under their new ownership and it was a price we were prepared to pay
as we have replaced those brands with Bestfoods' portfolio of global
significance. Indeed Knorr and Hellmans are among our biggest brands in the
world.

Now much of what I have talked about in Path to Growth are measurable,
physical things. But perhaps the most important element in achieving Path to
Growth lies within ourselves. It can simply be described as the enterprise
spirit.

Enterprise Spirit

Releasing the enterprising qualities within our people, encouraging them to
take initiatives and to feel empowered will ultimately be the key to the
success of Path to Growth.

We talk about our enterprise spirit as if it is understood by everybody - but
it isn't. It is something that you have to relate to as an individual and we
have to find ways to stimulate the creative juices, release that creative
energy.

A key feature of this enterprising culture that we wish to generate is a
strict alignment of rewards with performance.

We believe it is right that outstanding performance should enjoy outstanding
reward but, by the same token, average performance will not be rewarded.

In this way we are seeking to release the enterprise spirit but in a strict
context. A context which links the rewards available to our staff with the
rewards that they have earned for our shareholders.

So empowerment and reward are part of the enterprise spirit, but vigorous
leadership is also necessary.

We spent much time in 2000 renewing and invigorating the leadership of your
business. We know the characteristics of world class business builders - we
know what we are looking for.

Also, there has been a considerable change in the make up of our top team with
almost half of the leadership group being new appointments over the past two
years. Also 2000 saw a major influx of talent from the acquisitions that we
made. If you like, Unilever's gene pool has been refreshed both by internal
appointment and external recruitment.

So empowering individuals, improving the quality of our leadership then moving
decisively to align reward with performance, will suffuse Unilever with the
enterprise spirit - and result in a winning team for our shareholders.



Outlook

Last year we were sitting in a middle of the dot.com revolution. At the time I
said that our business was based on the continuing reality that each day,
week, month and year more people need food, clean homes and personal health.
We have the brands that bring these to consumers everywhere and everyday. We
have a real business that generates growing cashflow earnings and dividends
from the marketing and selling of our brands. None of this will change. The
dot.com revolution may have passed and talk of a new economy now rings a
little hollow, but e:business and the web are here forever and we have ensured
that we have taken the best parts and employed them in our business. We will
continue to do so.

Our strategy is in place and we move forward with confidence.

We intend to succeed and we will be able to secure our success through:-

-     the continued growth of our leading brands;

-     an expansion in margins and earnings per share;

-     acquisitions that will deliver significant and sustained value to our
shareholders;

-     and most important of all, a leadership team which is focused,
revitalised, aligned with shareholders interests and determined to succeed.




                                    -o0o-



May 9 2001