SOURCE: Unilever

February 09, 2006 02:02 ET

Unilever announces Fourth Quarter and Annual Results 2005

London/ Rotterdam -- (MARKET WIRE) -- February 9, 2006 --

                  FOURTH QUARTER AND ANNUAL RESULTS 2005
Unilever enters 2006 in much better shape, with increased competitiveness and growth.
FINANCIAL HIGHLIGHTS
(unaudited)

 Fourth Quarter                   EUR million
    2005     2004
 Current  Current
   rates    rates
                  Continuing operations:
  10 081    9 755 Turnover
   1 063    (288) Operating profit/(loss)
     916    (398) Pre-tax profit/(loss)
     726    (124) Net profit from continuing operations

                  Total operations:
    0.71   (0.16) EPS NV (Euros)
   10.68   (2.33) EPS PLC (Euro cents)

           EUR million                       Full Year
                                     2005    2004
                                  Current Current Current Constant
                                    rates   rates   rates    rates
Continuing operations:
Turnover                           39 672  38 566      3%       2%
Operating profit/(loss)             5 314   4 239     25%      24%
Pre-tax profit/(loss)               4 751   3 704     28%      27%
Net profit from continuing          3 502   2 894     21%      20%
operations

Total operations:
EPS NV (Euros)                       3.88    2.83     37%      35%
EPS PLC (Euro cents)                58.17   42.46     37%      35%





KEY FEATURES OF THE YEAR

- Underlying sales up 3.1%, improving trend throughout the year 
  and a strong fourth quarter.

- Market shares stable overall.

- Earnings per share up 37%, with 22% from continuing operations,
  benefiting from lower restructuring, disposal and impairment 
  charges.

- Increased investment behind growth priorities, including additional
  EUR500 million advertising and promotions.

- Operating margin at 13.4%. Productivity improvements and better 
  mix more than offset higher input costs.

- Share buy-back programme of EUR500 million completed. Proposed final
  dividend of EUR1.32 per NV ordinary share and 13.54p per PLC 
  ordinary share, raising the total dividend per share by 5% for NV 
  and by 6% for PLC.

FROZEN FOODS

- Previously announced review completed. Majority of European frozen 
   foods to be sold.

CHIEF EXECUTIVE'S COMMENT AND OUTLOOK

2005 was a year of change and investment in the business. The priority was to restore competitiveness and to grow our top line. We made good progress on both, stabilising our market shares and improving growth through the year.

We have refocused and simplified the organisation, and increased investment behind our growth priorities. We have sold our fragrance business and announced today the planned sale of most of the frozen foods business. Our savings programmes are delivering well and have been successful in containing the impact of higher input costs.

We have seen a return to strong growth in personal care and in developing and emerging markets. Performance in Europe improved compared with last year, especially in Foods. There was some pick up in the fourth quarter, but there is still work to do to return Europe to full competitiveness and growth. This will be a key priority for 2006.

The manner in which we ended 2005 gives me confidence as we enter 2006. Unilever is a simpler and more agile business, more responsive to customer and consumer needs, with a clear value creation agenda.

OUTLOOK

For 2006, our priorities are to sustain our top-line growth and improve our margins. We expect a sustained flow of savings from our current programmes, and a progressively more favourable pricing and commodity cost environment. We will continue to invest competitively behind our growth priorities and expect an increase in operating margin from the 13.4% of 2005. In 2006 we plan restructuring costs of around one percent of sales, at the top end of our long term guidance.

We are on track to deliver our targeted savings from the 'One Unilever' programme of EUR0.7 billion by the end of 2006, and see scope to increase this to EUR1 billion by the end of 2007.

Looking further ahead, I remain confident that we can deliver our value creation objectives to 2010.

Patrick Cescau

Group Chief Executive

9 February 2006

With effect from 1 January 2005, Unilever has adopted International Financial Reporting Standards (IFRS) as adopted by the EU. These apply to both the prior year comparators and the current year results. In addition, the condensed financial statements are now shown only at current exchange rates, while percentage year-on-year changes are shown at both current and constant exchange rates to facilitate comparison. Further information on the impact of the adoption of IFRS can be found on page 12 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. We also use the movements in Ungeared Free Cash Flow (as defined on page 12) and Return On Invested Capital to measure progress against our longer-term value creation goals. 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, profit and cash flow.

FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS

Underlying sales grew by 3.1% in the year, all coming from volume. Like-for-like growth in the fourth quarter was 5% after allowing for the estimated effect of six fewer days than in the same quarter of 2004. (As previously explained, the first quarter had five additional days).

Including the effect of disposals and favourable currency movements, turnover was ahead by 2.9% in the year.

Operating margin for the full year was 13.4%, compared with an operating margin of 11.0% in 2004. Before the impact of net costs of restructuring, business disposals and impairments, the operating margin for 2005 would have been 0.8 percentage points lower than the previous year. Advertising and promotions were 1.1 percentage points of sales higher than last year. Cost savings and an improved mix more than offset the effect of an increase of nearly EUR600 million in input costs.

In the fourth quarter, the operating margin was 10.6%, compared with a negative 3.0% in the prior year. Before the impact of changes in restructuring, disposals and impairment the operating margin would have been 1.3 percentage points lower than the same quarter of the previous year. Advertising and promotions in the quarter were only slightly higher than the average for the year, but significantly up on the fourth quarter of 2004. Continued higher input costs were offset by cost savings and an improved mix, while positive pricing started to contribute to margin. There were also gains in the quarter in US health care plans and from currency effects on capital reductions in the Americas.

Operating profit increased by 25% in the year.

Net finance costs were 2% lower in the year through a lower level of net debt.

The effective tax rate was 26% for the year, compared with 22% in the previous year. As a result of structural improvements we are lowering our longer term expectation for the tax rate from around 30% to around 28%. In the quarter, the tax rate was 21%, reflecting the resolution of some outstanding issues in various countries.

Net profit and EPS from continuing operations both increased by 21% and 22% respectively in the year.

Net profit from discontinued operations included a gain of EUR458 million on the disposal of Unilever Cosmetics International (UCI). Including this, total earnings per share increased by 37% in the year.

FINAL DIVIDENDS

The Boards will recommend to the Annual General Meetings a final dividend of EUR1.32 per EUR0.51* ordinary share** of Unilever N.V. and a final dividend of 13.54p per 1.4p ordinary share of Unilever PLC. This will bring the total dividend to EUR1.98 per EUR0.51* ordinary share, an increase of 5% over last year and 20.31p per 1.4p ordinary share, an increase of 6% over last year.

* 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.

** Unilever N.V. ordinary shares and Unilever N.V. depositary receipts for ordinary shares.

SHARE BUY-BACK

In 2005 we completed a share buy-back program of EUR0.5 billion. This was in addition to the purchase of EUR0.8 billion of shares to partially replenish treasury stock used for the conversion of the EUR0.05 NV preference shares.

For 2006 we plan a further share buy-back of around EUR0.5 billion. We may review this in the light of any tactical acquisitions, disposal proceeds including frozen foods, and the development of credit metrics.

CASH FLOW

Cash and cash equivalents were flat for the year. Net cash flow from operating activities, at EUR4.4 billion, was EUR1.2 billion lower than in the previous year. This includes the effects of additional marketing investment (EUR0.5 billion), a lower inflow from working capital (EUR0.4 billion) compared with last year, and higher cash costs of restructuring, pensions and tax.

Net cash flow from investing activities was EUR0.6 billion higher than last year, reflecting higher disposal receipts (including EUR0.6 billion from the sale of UCI) and net movements in investments with maturity greater than three months. Net cash flow used in financing activities fell by EUR1.1 billion, reflecting borrowing activity offset by increased purchases of own shares.

Ungeared Free Cash Flow was EUR4.0 billion.

RETURN ON INVESTED CAPITAL

Return On Invested Capital increased to 12.5% from 10.7% in 2004.

BALANCE SHEET

Goodwill and intangible assets have increased by EUR1.0 billion against 2004. Currency movements added EUR1.6 billion, offset by Slim Fast impairment and disposals. Inventories and current trade receivables were EUR1.0 billion higher, reflecting currency movements and the low position achieved at the end of 2004.

Closing net debt was EUR10.5 billion, a decrease of EUR0.7 billion since 1 January. Purchases of treasury stock were EUR1.3 billion (including the share buy-back program of EUR0.5 billion) and proceeds of business disposals were EUR0.8 billion. The EUR1.4 billion net debt reduction on conversion of the EUR0.05 preference shares was largely offset by currency movements.

Total equity has increased by EUR2.7 billion since 1 January. Net profit added EUR4.0 billion and currency retranslation EUR0.2 billion. Treasury stock, which is deducted from equity, was used for the conversion of the EUR0.05 preference shares. This reduced borrowings by EUR1.4 billion and increased equity by the same amount. Subsequent purchases of treasury stock and parent company dividends reduced equity by EUR1.3 billion and EUR1.9 billion respectively.

VALUE CREATION TO 2010

Our long term ambition for financial performance remains 'Top 1/3' Total Shareholder Return and our long term targets reflect this:

- Ungeared Free Cash Flow of EUR25-EUR30 billion during the period 2005
  - 2010; and

- Improved Return on Invested Capital from the 2004 base of around 11%.

We plan to deliver this over the period through:

- Top-line growth ahead of our markets, which are expected to grow at
  2-4% per annum;

- Improvement in operating margin against the 2004 base allowing for a
  'normal' level of restructuring of 50-100 bps per annum;

- Improved capital efficiency compared with our 2004 base; and

- Improved tax efficiency, leading to a sustainable tax rate of around
  28%.

FULL YEAR PERFORMANCE BY REGION

EUROPE

Our priority in Europe is to regain momentum and improve competitiveness. The focus has been on enhancing the value to consumers of our products through keener pricing, improved quality and more and better innovation.

Marketing support has been raised to a more competitive level with additional spend deployed against our best opportunities. The organisation is being streamlined and we are building up stronger capabilities in customer management.

We have made progress over the last year: volume has been slightly positive (compared with a 2% decline in 2004), but investment in pricing meant that underlying sales declined by 0.8% in the year.

Central and Eastern Europe performed well, notably in Russia which was ahead by nearly 20%, in buoyant markets.

Western Europe was challenging, with continued weak consumer demand. Our businesses grew in the Netherlands and Spain, but declined by around 2% in France and Germany and by nearly 4% in the UK.

In Foods, we have held overall market share through the course of the year, with growth across all key categories apart from frozen foods.

In Home and Personal Care we had a disappointing year and we have lost market share, particularly in the UK.

Overall, there was some pick-up in the fourth quarter, with around 2% growth on a like-for-like basis, but we are not yet where we want to be.

New product launches this year have included Knorr Vie shots, extensions of the pro.activ heart health range, soups fortified with vitamins and low fat soups.

We have introduced a Rexona sport variant in deodorants, Axe shower gel and Sunsilk hair styling products. We have further improved our home care product range with launches that address specific consumer needs, such as 'no-need-to-pre-treat' laundry detergents, Sun 4-in-1 dishwash and Domestos drain unblocker.

The operating margin, at 14.2%, was 0.4 percentage points higher than last year. Increased advertising and promotions and pricing investment together with higher input costs were partly offset by productivity gains. Net restructuring, disposal and impairment costs, at 0.8% were 1.5 percentage points lower than in 2004.

THE AMERICAS

Underlying sales grew by 4%, all coming from volume gains, broadly based across the region, underpinned by a successful innovation programme. In the fourth quarter, like-for-like sales growth was 5%.

Consumer demand in the US showed a sustained recovery. Our sales in the US grew by 3.2%, accelerating through the year, and we gained market share in aggregate.

In Brazil and Mexico, a strong first half was followed by relatively weaker demand in the second half of the year. We grew in line with our markets in Home and Personal Care, but saw some share loss in Foods.

Growth in personal care across the region has been driven by good consumer response to our initiatives, including Vitality innovation and consistent support. This has been particularly evident in the deodorants and personal wash categories, with strong double-digit growth for Axe, now the number one deodorant in the US, and for the Dove and Rexona brands.

Another strong Foods performance in the US was driven by further share gains in ice cream, continued good results from the extension of the Country Crock and Bertolli brands into new categories, and from Lipton Ready-to-Drink and speciality teas. Slim Fast continued to regain share, but in a much contracted weight management market and sales were well below the previous year.

New launches in the US included the well received Dove 'cool moisture' range and the extension of Axe into male shower gels. In Latin America our brands have also been very successful in connecting with younger consumers through Rexona 'teens' and innovative communication for Axe.

In the US we introduced all 'small and mighty' laundry detergent, offering the convenience of the same cleaning power in a smaller bottle. We have re-launched our Radiant laundry brands in Chile and Argentina delivering outstanding whiteness performance.

In Foods, we strengthened the Vitality credentials of our brands in the US with Promise heart health spread, Ragu organic and support for the anti-oxidant properties of Lipton teas. AdeS continued to build across Latin America with the distinctive nutrition benefits of 'soy with fruit'.

The operating margin was 13.0%, 5.7 percentage points higher than in 2004. Net charges for restructuring, disposal and impairment were 3.4%, which was 5.8 percentage points lower than in the prior year. Cost savings offset a higher level of advertising and promotions and increased input costs. There were also gains from the sale of an office in the US, in US health care plans and from currency effects on capital reductions.

ASIA AFRICA

We have capitalised on our leading positions and buoyant consumer demand across most of the region, growing underlying sales by 9%, in a competitive environment, and increasing market share in key battle grounds. In the fourth quarter, like-for-like sales growth was 10%.

The growth was broad-based in terms of both categories and geographies. There were notable performances in all major developing and emerging countries, including a strong recovery in India with market share gains, and significant contributions from China, which was up by over 20%, and from South East Asia, Turkey and Arabia. Japan returned to growth. After a weak first half, Australia improved in the second half of the year.

Most of the increase came from volume, but price growth gained momentum through the year, as we moved to selectively recover increased commodity costs, especially in home care.

Growth was underpinned by a range of innovations. In skin care in India, Lux has been strengthened with new soap bars from the global range and the introduction of limited editions. Innovations in Pond's included a new 'mud' range in China.

In hair care we launched Dove in Indonesia, a Sunsilk summer range across South East Asia, a new variant for Lux Super Rich in China and a strengthened Sunsilk range across several key markets in Africa and the Middle East.

New formulations for our laundry products include improved whiteness delivery for Surf in Indonesia and Omo for sensitive skin in Turkey.

In tea, we have substantially strengthened the Brooke Bond brand in India, while Lipton is benefiting from strong regional innovations, including Earl Grey and Green Tea variants in markets such as Turkey and Arabia.

The operating margin was 12.6%, 1.8 percentage points higher than in 2004. Increased investment in advertising and promotions was partly offset by productivity gains. The remaining difference was due to net restructuring, disposal and impairment charges which were insignificant in 2005 compared with a net charge of 2.9% in 2004.

SAFE HARBOUR STATEMENT: This announcement 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 FINANCIAL STATEMENTS

INCOME STATEMENT

(unaudited)
         Fourth Quarter                    EUR million
   2005    2004        Increase/
                      (Decrease)

                Current Constant
                  rates    rates



                                 Continuing operations:



 10 081   9 755      3%     (1)% Turnover


  1 063   (288)                  Operating profit/(loss)

                                 After charging:

    (4)   (791)                  Impairment of Slim Fast

      -   (169)                  Provision for Brazilian sales
                                 tax



  (152)   (137)                  Net finance costs

      8      28                  Finance income

  (147)   (165)                  Finance costs

   (13)       -                  Pensions and similar
                                 obligations

     15       8                  Share in net profit/(loss) of
                                 joint ventures

   (19)       -                  Share in net profit/(loss) of
                                 associates

      9      19                  Other income from non-current
                                 investments



    916   (398)                  Profit/(loss) before taxation



  (190)     274                  Taxation



    726   (124)                  Net profit/(loss) from
                                 continuing operations



     10      19                  Net profit/(loss) from
                                 discontinued operations



    736   (105)                  Net profit/(loss) for the
                                 period



                                 Attributable to:

     52      39                  Minority interests

    684   (144)                  Shareholders' equity



                                 Combined earnings per share

                                 From total operations

   0.71  (0.16)                  Per EUR 0.51 ordinary NV share
                                 (Euros)

  10.68  (2.33)                  Per 1.4p ordinary PLC share
                                 (Euro cents)



   0.69  (0.15)                  Per EUR 0.51 ordinary NV share
                                 - diluted (Euros)

  10.37  (2.20)                  Per 1.4p ordinary PLC share -
                                 diluted (Euro cents)



                                 From continuing operations

   0.70  (0.18)                  Per EUR 0.51 ordinary NV share
                                 (Euros)

  10.52  (2.64)                  Per 1.4p ordinary PLC share
                                 (Euro cents)



   0.68  (0.17)                  Per EUR 0.51 ordinary NV share
                                 - diluted (Euros)

  10.21  (2.49)                  Per 1.4p ordinary PLC share -
                                 diluted (Euro cents)




          EUR million                      Full Year
                                   2005    2004        Increase/
                                                      (Decrease)

                                                Current Constant
                                                  rates    rates



Continuing operations:



Turnover                         39 672  38 566      3%       2%


Operating profit/(loss)           5 314   4 239     25%      24%
After charging:

Impairment of Slim Fast           (363)   (791)

Provision for Brazilian sales         -   (169)
tax



Net finance costs                 (618)   (630)

Finance income                      130     145

Finance costs                     (693)   (717)

Pensions and similar               (55)    (58)
obligations

Share in net profit/(loss) of        47      39
joint ventures

Share in net profit/(loss) of      (25)       2
associates

Other income from non-current        33      54
investments



Profit/(loss) before taxation     4 751   3 704     28%      27%


Taxation                        (1 249)   (810)



Net profit/(loss) from            3 502   2 894     21%      20%
continuing operations


Net profit/(loss) from              473      47
discontinued operations



Net profit/(loss) for the         3 975   2 941     35%      34%
period


Attributable to:

Minority interests                  209     186

Shareholders' equity              3 766   2 755     37%      35%


Combined earnings per share

From total operations

Per EUR 0.51 ordinary NV share     3.88    2.83     37%      35%
(Euros)
Per 1.4p ordinary PLC share       58.17   42.46     37%      35%
(Euro cents)


Per EUR 0.51 ordinary NV share     3.76    2.72     38%      37%
- diluted (Euros)
Per 1.4p ordinary PLC share -     56.40   40.78     38%      37%
diluted (Euro cents)


From continuing operations

Per EUR 0.51 ordinary NV share     3.39    2.78     22%      20%
(Euros)
Per 1.4p ordinary PLC share       50.87   41.72     22%      20%
(Euro cents)


Per EUR 0.51 ordinary NV share     3.29    2.67     23%      21%
- diluted (Euros)
Per 1.4p ordinary PLC share -     49.33   40.08     23%      21%
diluted (Euro cents)






STATEMENT OF RECOGNISED INCOME AND EXPENSE

(unaudited)
EUR million                                             Full Year
                                                    2005        2004



Fair value gains/(losses) on financial               346         n/a
instruments and
cash flow hedges net of tax
Actuarial gains/(losses) on pension schemes         (49)       (480)
net of tax
Currency retranslation gains/(losses) net of         181          80
tax


Net income/(expense) recognised directly in          478       (400)
equity


Net profit for the year                            3 975       2 941


Total recognised income and expense for the        4 453       2 541
year


Attributable to:

Minority interests                                   249         167
Shareholders' equity                               4 204       2 374


BALANCE SHEET

(unaudited)
EUR million                                        As at       As at


                                                December 31 December
                                                    2005        2004


Non-current assets

Goodwill and intangible assets                    18 055      17 007
Property, plant and equipment                      6 492       6 181
Pension asset for funded schemes in surplus        1 036         625
Deferred tax assets                                1 703       1 491
Other non-current assets                           1 072       1 064
Total non-current assets                          28 358      26 368


Assets held for sale                                 217         n/a


Current assets

Inventories                                        4 107       3 756
Trade and other receivables due within one         4 830       4 131
year
Financial assets                                     335       1 013
Cash and cash equivalents                          1 529       1 590
Total current assets                              10 801      10 490


Current liabilities

Borrowings due within one year                   (5 942)     (5 155)
Trade payables and other current liabilities     (8 658)     (8 232)
Restructuring and other provisions                 (644)       (799)
Total current liabilities                       (15 244)    (14 186)
Net current assets/(liabilities)                 (4 443)     (3 696)
Total assets less current liabilities             24 132      22 672


Non-current liabilities

Borrowings due after one year                      6 457       6 893
Pension liability for funded schemes in            2 360       2 291
deficit
Pension liability for unfunded schemes             4 257       3 788
Restructuring and other provisions                   732         565
Deferred tax liabilities                             933         789
Other non-current liabilities                        602         717
Total non-current liabilities                     15 341      15 043


Liabilities held for sale                             26         n/a


Equity

Shareholders' equity                               8 361       7 264
Minority interests                                   404         365
Total equity                                       8 765       7 629
Total capital employed                            24 132      22 672


MOVEMENTS IN EQUITY

(unaudited)


EUR million                                              Full Year
                                                     2005       2004



Equity at 31 December 2004                          7 629        n/a
IFRS transition adjustment for financial          (1 564)        n/a
instruments (including preference shares)
Equity at 1 January                                 6 065      7 175
Total recognised income and expense for the         4 453      2 541
period
Dividends                                         (1 867)    (1 747)
Conversion of preference shares                     1 380          -
(Purchase)/sale of treasury stock                 (1 260)      (324)
Share option credit                                   186        222
Dividends paid to minority shareholders             (217)      (203)
Currency retranslation gains/(losses) net of           13        (5)
tax
Other movements in equity                              12       (30)
Equity at 31 December                               8 765      7 629


CASH FLOW STATEMENT

(unaudited)


EUR million                                              Full Year
                                                     2005       2004



Operating activities

Cash flow from operating activities                 5 924      6 925
Income tax paid                                   (1 571)    (1 378)
Net cash flow from operating activities             4 353      5 547


Investing activities

Interest received                                     130        168
Net capital expenditure                             (813)      (869)
Acquisitions and disposals                            784        316
Other investing activities                            414        265
Net cash flow from/(used in) investing                515      (120)
activities


Financing activities

Dividends paid on ordinary share capital          (1 804)    (1 720)
Interest and preference dividends paid              (643)      (787)
Change in borrowings and finance leases             (880)    (2 890)
Purchase of own shares                            (1 276)      (332)
Other financing activities                          (218)      (209)
Net cash flow from/(used in) financing            (4 821)    (5 938)
activities


Net increase/(decrease) in cash and cash               47      (511)
equivalents


Cash and cash equivalents at the beginning of       1 406      1 428
the year


Effect of foreign exchange rate changes             (188)        489


Cash and cash equivalents at the end of the         1 265      1 406
year




ANALYSIS OF NET DEBT

(unaudited)


EUR million                                         As at      As at
                                              31 December  1 January
                                                     2005       2005


Cash and cash equivalents as per cash flow          1 265      1 406
statement
Add: bank overdrafts deducted therein                 265        184
Less: cash and cash equivalents in assets/            (1)        (8)
liabilities held for disposal
Cash and cash equivalents as per balance            1 529      1 582
sheet
Financial assets                                      335        533
Borrowings due within one year                    (5 942)    (6 448)
Borrowings due after one year                     (6 457)    (7 221)
Derivatives and finance leases included in             33        369
other receivables and other liabilities
Net debt                                         (10 502)   (11 185)


GEOGRAPHICAL ANALYSIS

(unaudited)

Continuing operations - Fourth Quarter
EUR million                               Europe   Americas   Asia  Total
                                                            Africa
Turnover

2004                                       4 132      3 160  2 463  9 755
2005                                       3 942      3 521  2 618 10 081
Change                                    (4.6)%      11.4%   6.3%   3.3%
Impact of:

Exchange rates                              0.8%      11.3%   2.2%   4.6%
Acquisitions                                0.2%       0.0%   0.0%   0.1%
Disposals                                 (2.0)%     (0.1)% (1.3)% (1.2)%
Underlying sales growth                   (3.6)%       0.3%   5.4% (0.1)%
Price                                     (0.8)%       0.0%   2.4%   0.3%
Volume                                    (2.9)%       0.3%   2.9% (0.4)%


Operating profit/(loss)

2004                                         189      (559)     82  (288)
2005                                         210        586    267  1 063
Change current rates                       11.2%

Change constant rates                       9.3%



Operating margin

2004                                        4.6%    (17.7)%   3.3% (3.0)%
2005                                        5.3%      16.7%  10.2%  10.6%


Continuing operations - Full Year



EUR million                               Europe   Americas   Asia  Total
                                                            Africa
Turnover

2004                                      16 650     12 296  9 620 38 566
2005                                      16 211     13 179 10 282 39 672
Change                                    (2.6)%       7.2%   6.9%   2.9%
Impact of:

Exchange rates                              0.4%       3.6%   0.0%   1.3%
Acquisitions                                0.2%       0.0%   0.0%   0.1%
Disposals                                 (2.3)%     (0.7)% (1.6)% (1.6)%
Underlying sales growth                   (0.8)%       4.1%   8.7%   3.1%
Price                                     (1.0)%       0.2%   1.5%   0.0%
Volume                                      0.2%       3.9%   7.1%   3.1%


Operating profit/(loss)

2004                                       2 303        896  1 040  4 239
2005                                       2 304      1 719  1 291  5 314
Change current rates                        0.0%      91.9%  24.1%  25.3%
Change constant rates                     (0.2)%      83.6%  24.7%  23.6%


Operating margin

2004                                       13.8%       7.3%  10.8%  11.0%
2005                                       14.2%      13.0%  12.6%  13.4%


Includes restructuring, business
disposals and impairments

2004                                      (2.3)%     (9.2)% (2.9)% (4.6)%
2005                                      (0.8)%     (3.4)% (0.0)% (1.4)%


Operating profit/(loss) of
discontinued operations - Fourth
Quarter




EUR million                               Europe   Americas   Asia  Total
                                                            Africa
2004                                          18          9      3     30
2005                                           -          -      -      -


Operating profit/(loss) of
discontinued operations - Full Year




EUR million                                Europe  Americas   Asia  Total
                                                            Africa
2004                                           22        47      4     73
2005                                            1        20      1     22



CATEGORY ANALYSIS

(unaudited)

Continuing operations - Fourth Quarter
EUR million               Savoury   Spreads  Beverages      Ice
                              and       and               cream
                        dressings   cooking                 and
                                   products              frozen
                                                          foods
Turnover

2004                        2 253     1 240        763    1 218
2005                        2 305     1 191        800    1 221
Change                       2.3%    (3.9)%       4.8%     0.2%
Impact of:

Exchange rates               4.3%      2.4%       5.6%     4.0%
Acquisitions                 0.0%      0.0%       0.0%     0.6%
Disposals                  (1.6)%    (2.9)%     (0.7)%   (1.6)%
Underlying sales           (0.3)%    (3.4)%     (0.1)%   (2.6)%
growth


Operating profit/
(loss)

2004                          224       137      (805)     (62)
2005                          277       166         92     (30)
Change current rates        23.8%     21.6%             (52.8)%

Change constant rates       19.0%     17.9%             (46.1)%



Operating margin

2004                        10.0%     11.0%   (105.4)%   (5.1)%
2005                        12.0%     14.0%      11.5%   (2.4)%

EUR million            Foods Personal     Home     Home   Total
                                 care     care      and
                                           and Personal
                                         other     Care
Turnover

2004                   5 474    2 561    1 720    4 281   9 755
2005                   5 517    2 752    1 812    4 564  10 081
Change                  0.8%     7.5%     5.3%     6.6%    3.3%
Impact of:

Exchange rates          4.0%     5.8%     4.6%     5.3%    4.6%
Acquisitions            0.1%     0.0%     0.0%     0.0%    0.1%
Disposals             (1.8)%   (0.4)%   (0.7)%   (0.5)%  (1.2)%
Underlying sales      (1.5)%     2.0%     1.3%     1.7%  (0.1)%
growth


Operating profit/
(loss)

2004                   (506)      221      (3)      218   (288)
2005                     505      448      110      558   1 063
Change current rates           102.7%            155.8%

Change constant                 85.4%            128.1%
rates



Operating margin

2004                  (9.2)%     8.6%   (0.2)%     5.1%  (3.0)%
2005                    9.2%    16.3%     6.1%    12.2%   10.6%




Continuing operations - Full Year
EUR million           Savoury  Spreads Beverages     Ice   Foods
                          and      and             cream
                    dressings  cooking               and
                              products            frozen
                                                   foods
Turnover

2004                    8 172    4 494     3 012   6 286  21 964
2005                    8 369    4 364     3 054   6 373  22 160
Change                   2.4%   (2.9)%      1.4%    1.4%    0.9%
Impact of:

Exchange rates           1.6%     1.1%      1.3%    0.7%    1.2%
Acquisitions             0.0%     0.0%      0.1%    0.4%    0.1%
Disposals              (2.1)%   (4.6)%    (1.1)%  (1.4)%  (2.3)%
Underlying sales         2.9%     0.7%      1.1%    1.7%    1.9%
growth


Operating profit/
(loss)

2004                    1 226      681     (508)     709   2 108
2005                    1 286      756        48     767   2 857
Change current           4.9%    11.0%              8.3%   35.5%
rates

Change constant          3.8%    10.7%              7.5%   34.2%
rates



Operating margin

2004                    15.0%    15.2%   (16.9)%   11.3%    9.6%
2005                    15.4%    17.3%      1.6%   12.0%   12.9%



EUR million             Personal     Home      Home    Total
                            care     care       and
                                      and  Personal
                                    other      Care
Turnover

2004                       9 780    6 822    16 602   38 566
2005                      10 485    7 027    17 512   39 672
Change                      7.2%     3.0%      5.5%     2.9%
Impact of:

Exchange rates              1.3%     1.8%      1.5%     1.3%
Acquisitions                0.0%     0.0%      0.0%     0.1%
Disposals                 (0.5)%   (1.2)%    (0.8)%   (1.6)%
Underlying sales            6.3%     2.4%      4.7%     3.1%
growth


Operating profit/
(loss)

2004                       1 508      623     2 131    4 239
2005                       1 801      656     2 457    5 314
Change current rates       19.4%     5.2%     15.2%    25.3%
Change constant rates      17.7%     2.1%     13.1%    23.6%


Operating margin

2004                       15.4%     9.1%     12.8%    11.0%
2005                       17.2%     9.3%     14.0%    13.4%

Discontinued operations

Operating profit/(loss) of discontinued operations for the fourth quarter of 2005 was EUR- million (2004: EUR30 million), and operating profit/(loss) for the full year was EUR22 million (2004: EUR73 million). These amounts relate wholly to the Personal Care category.

NOTES

(unaudited)

Adoption of IFRS

With effect from 1 January 2005 Unilever has adopted International Financial Reporting Standards (IFRS) as adopted by the EU. 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 condensed financial statements are 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 standards 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 at 31 December 2004 and the income statements for the quarter and the year then ended is given on pages 14 to 16. 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 have been applied prospectively from 1 January 2005.

Financial instruments (including preference shares)

From 1 January 2005 Unilever has applied 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 EUR1 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 from that previously applied. 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 sale

Application of IFRS 5 has resulted in reclassifications of non-current assets and asset groups held for sale in the balance sheet as at 1 January 2005. It did 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.

Ungeared Free Cash Flow

Unilever uses the movement in Ungeared Free Cash Flow (UFCF) to measure progress against our longer-term value creation goals.

This measure has been redefined to map to the financial statements prepared under IFRS. In doing this we have decided to use the income statement charges for share-based compensation and pensions, rather than cash payments. In this way the measure is made independent of financing decisions for these items.

The new definition is: cash flow from group operating activities, less capital expenditure, less charges to operating profit for share-based compensation and pensions, and less tax (adjusted to reflect an ungeared position), but before the financing of pensions.

For 2005, the UFCF was EUR4.0 billion, and would have been EUR4.1 billion if cash costs had been used for these items.

The calculation of this measure for 2004 and 2005, and information about other non-GAAP measures (Return On Invested Capital, Underlying Sales Growth and Net Debt) can be found on the Unilever website at www.unilever.com/ourcompany/ investorcentre.

Issuances and repayments of debt

There was one repayment of 6.875% notes during the quarter of US $1.5 billion.

Share buy-back

On 3 October 2005 Unilever announced the commencement of a share buy-back programme. Between October and December, this resulted in the purchase of 4.9 million NV shares and 25.7 million PLC shares, with a combined value of approximately EUR500 million. This was in addition to the replenishment by Unilever N.V. of treasury shares used for the conversion of its EUR0.05 preference shares, announced in February 2005.

Acquisitions and Disposals

In December 2004 Unilever announced the restructuring

of its Portuguese foods business. The deal was completed at the end of March 2005. 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%.

On 11 July 2005, we announced the completion of the sale of our Prestige fragrance business, Unilever Cosmetics International (UCI), to Coty Inc. of the United States. Unilever received US $800 million in cash, with the opportunity for further deferred payments contingent upon future sales.

On 20 December 2005, Unilever announced its intention to sell its Mora business to Ad van Geloven in the Netherlands, for an undisclosed sum. The agreement is subject to approval by competition authorities and advice from work councils. The proposed transaction relates to the Mora brand and to factories in Maastricht and Mol (Belgium).

Subsequent to the year end we have announced our intention to sell the majority of our frozen foods business in Europe.

Discontinued operations

Following the announcement of the disposal of UCI, results for this business have been presented in our income statement as discontinued operations, in line with the requirements of IFRS 5. The amount reported for 2005 represents the profits and losses arising on these operations up to the time of disposal together with the profit arising on disposal.

Basic earnings per EUR0.51 NV ordinary share in respect of the discontinued operations were EUR0.01 for the quarter and EUR0.49 for the year (2004: EUR0.02 and EUR0.05 respectively). Diluted earnings per EUR0.51 NV ordinary share in respect of the discontinued operations were EUR0.01 for the quarter and EUR0.47 for the year (2004: EUR0.02 and EUR0.05 respectively).

Basic earnings per 1.4p PLC ordinary share in respect of the discontinued operations were 0.16 Euro cents for the quarter and 7.30 Euro cents for the year (2004: 0.31 Euro cents and 0.74 Euro cents respectively). Diluted earnings per 1.4p PLC ordinary share in respect of the discontinued operations were 0.16 Euro cents for the quarter and 7.07 Euro cents for the year (2004: 0.29 Euro cents and 0.70 Euro cents respectively).

The net cash flows attributable to the discontinued operations in respect of operating, investing and financing activities for the year were EUR(102) million, EUR623 million and EUR- million respectively (2004: EUR94 million, EUR(2) million and EUR- million).

Exchange rate conventions

The income statement on page 7, the statement of recognised income and expense on page 8, the movements in equity on page 9 and the cash flow statement on page 9 are translated at average rates current in each period.

The balance sheet on page 8 and the analysis of net debt on page 9 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/.

The financial statements attached do not constitute the full financial statements within the meaning of Section 240 of the UK Companies Act 1985. Full accounts for Unilever for the year ended 31 December 2004 have been delivered to the Registrar of Companies. The auditors' report on these accounts was unqualified and did not contain a statement under Section 237(2) or Section 237 (3) of the UK Companies Act 1985.

Reconciliation of profit for the year ended 31 December 2004
(unaudited)
                               Previously   Goodwill  Software Biological        
                                 reported        and               assets
                                    under indefinite
                                      old      lived
                                     GAAP intangible
                                              assets
                                      EUR        EUR       EUR        EUR
                                  million    million   million    million



Turnover                           40 366          -         -          -


Turnover of joint ventures          (197)          -         -          -


Operating costs                  (36 758)        815        66          7


Share of operating profit of           44          -         -          -
joint ventures


Operating profit/(loss)             3 455        815        66          7
  After charging:

  Impairment of Slim Fast           (591)      (200)         -          -
  Provision for Brazilian           (169)          -         -          -
  sales tax


Share of operating profit of           42          7         -          -
associates
Finance costs                       (628)          -         -          -
Other finance income/(cost) -        (61)          -         -          -
pensions and similar
obligations
Share of net profit of joint            -          -         -          -
ventures
Share of net profit of                  -          -         -          -
associates
Income from other non-current          31          -         -          -
investments


Profit/(loss) before taxation       2 839        822        66          7


Taxation                            (782)         17      (17)        (2)


Profit/(loss) for the period        2 057        839        49          5


Attributable to:

Minority interests                    181          2         1          2
Shareholders' equity                1 876        837        48          3



                                     Pensions and  Deferred tax
                                          similar   restatement
                                      obligations        effect
                                      EUR million   EUR million



Turnover                                        -             -


Turnover of joint ventures                      -             -


Operating costs                                 -             -


Share of operating profit of joint              -             -
ventures


Operating profit/(loss)                         -             -
  After charging:

  Impairment of Slim Fast                       -             -
  Provision for Brazilian sales                 -             -
  tax


Share of operating profit of                    -             -
associates
Finance costs                                   -             -
Other finance income/(cost) -                   1             -
pensions and similar obligations
Share of net profit of joint                    -             -
ventures
Share of net profit of associates               -             -
Income from other non-current                  23             -
investments


Profit/(loss) before taxation                  24             -


Taxation                                      (8)          (16)


Profit/(loss) for the period                   16          (16)


Attributable to:

Minority interests                              -             -
Shareholders' equity                           16          (16)





                              Tax      Joint Dividends   Other      Total
                        reclassi-   ventures                       effect
                            fying        and                           of
                           effect associates                   transition
                                                                       to
                                                                     IFRS
                              EUR        EUR       EUR     EUR        EUR
                          million    million   million million    million



Turnover                        -      (197)         -       -      (197)


Turnover of joint               -        197         -       -        197
ventures


Operating costs                 -          -         -      14        902


Share of operating              -       (44)         -       -       (44)
profit of joint
ventures


Operating profit/(loss)         -       (44)         -      14        858
  After charging:

  Impairment of Slim            -          -         -       -      (200)
  Fast
  Provision for                 -          -         -       -          -
  Brazilian sales tax


Share of operating              -       (49)         -       -       (42)
profit of associates
Finance costs                   -         47         -      10         57
Other finance income/           -          -         -       -          1
(cost) -
pensions and similar
obligations
Share of net profit of          -         39         -       -         39
joint ventures
Share of net profit of          -          2         -       -          2
associates
Income from other               -          -         -       -         23
non-current investments


Profit/(loss) before            -        (5)         -      24        938
taxation


Taxation                        -          5         -    (33)       (54)


Profit/(loss) for the           -          -         -     (9)        884
period


Attributable to:

Minority interests              -          -         -       -          5
Shareholders' equity            -          -         -     (9)        879



                                          Change Restated under
                                     relating to           IFRS
                                        turnover
                                      definition
                                     EUR million    EUR million



Turnover                                 (1 061)         39 108


Turnover of joint ventures                     -              -


Operating costs                            1 061       (34 795)


Share of operating profit of                   -              -
joint ventures


Operating profit/(loss)                        -          4 313
  After charging:

  Impairment of Slim Fast                      -          (791)
  Provision for Brazilian sales                -          (169)
  tax


Share of operating profit of                   -              -
associates
Finance costs                                  -          (571)
Other finance income/(cost) -                  -           (60)
pensions and similar obligations
Share of net profit of joint                   -             39
ventures
Share of net profit of associates              -              2
Income from other non-current                  -             54
investments


Profit/(loss) before taxation                  -          3 777


Taxation                                       -          (836)


Profit/(loss) for the period                   -          2 941


Attributable to:

Minority interests                             -            186
Shareholders' equity                           -          2 755


Reconciliation of profit for the fourth quarter ended 31 December 2004

(unaudited)

                                Previously   Goodwill  Software Biological
                                  reported        and               assets
                                     under indefinite
                                       old      lived
                                      GAAP intangible
                                               assets
                                       EUR        EUR       EUR        EUR
                                   million    million   million    million



Turnover                            10 233          -         -          -


Turnover of joint ventures            (50)          -         -          -


Operating costs                   (10 520)         30        35          -


Share of operating profit of             9          -         -          -
joint ventures


Operating profit/(loss)              (328)         30        35          -
  After charging:

  Impairment of Slim Fast            (591)      (200)         -          -
  Provision for Brazilian sales      (169)          -         -          -
  tax


Share of operating profit of             8          2         -          -
associates
Finance costs                        (159)          -         -          -
Other finance income/(cost) -            -          -         -          -
pensions and similar
obligations
Share of net profit of joint             -          -         -          -
ventures
Share of net profit of                   -          -         -          -
associates
Income from other non-current            5          -         -          -
investments


Profit/(loss) before taxation        (474)         32        35          -


Taxation                               258         52       (9)          -


Profit/(loss) for the period         (216)         84        26          -


Attributable to:

Minority interests                      39          -         -          -
Shareholders' equity                 (255)         84        26          -

                                      Pensions and Deferred tax
                                           similar  restatement
                                       obligations       effect
                                       EUR million  EUR million



Turnover                                         -            -


Turnover of joint ventures                       -            -


Operating costs                                  -            -


Share of operating profit of joint               -            -
ventures


Operating profit/(loss)                          -            -
  After charging:

  Impairment of Slim Fast                        -            -
  Provision for Brazilian sales tax              -            -


Share of operating profit of                     -            -
associates
Finance costs                                    -            -
Other finance income/(cost) -                  (1)            -
pensions and similar obligations
Share of net profit of joint                     -            -
ventures
Share of net profit of associates                -            -
Income from other non-current                   14            -
investments


Profit/(loss) before taxation                   13            -


Taxation                                       (5)            2


Profit/(loss) for the period                     8            2


Attributable to:

Minority interests                               -            -
Shareholders' equity                             8            2





                            Tax      Joint Dividends   Other      Total
                  reclassifying   ventures                    effect of
                         effect        and                   transition
                                associates                      to IFRS
                    EUR million        EUR       EUR     EUR        EUR
                                   million   million million    million



Turnover                      -       (50)         -       -       (50)


Turnover of joint             -         50         -       -         50
ventures


Operating costs               -          -         -      14         79


Share of                      -        (9)         -       -        (9)
operating profit
of joint ventures


Operating profit/             -        (9)         -      14         70
(loss)
After charging:

Impairment of                 -          -         -       -      (200)
Slim Fast
Provision for                 -          -         -       -          -
Brazilian sales
tax


Share of                      -       (10)         -       -        (8)
operating profit
of associates
Finance costs                 -         12         -      10         22
Other finance                 -          -         -       -        (1)
income/(cost) -
pensions and
similar
obligations
Share of net                  -          8         -       -          8
profit of joint
ventures
Share of net                  -          -         -       -          -
profit of
associates
Income from other             -          -         -       -         14
non-current
investments


Profit/(loss)                 -          1         -      24        105
before taxation


Taxation                      -        (1)         -    (33)          6


Profit/(loss) for             -          -         -     (9)        111
the period


Attributable to:

Minority                      -          -         -       -          -
interests
Shareholders'                 -          -         -     (9)        111
equity



                                        Change     Restated
                                   relating to        under
                                      turnover         IFRS
                                    definition
                                   EUR million  EUR million



Turnover                                 (258)        9 925


Turnover of joint ventures                   -            -


Operating costs                            258     (10 183)


Share of operating profit of                 -            -
joint ventures


Operating profit/(loss)                      -        (258)
After charging:

Impairment of Slim Fast                      -        (791)
Provision for Brazilian sales                -        (169)
tax


Share of operating profit of                 -            -
associates
Finance costs                                -        (137)
Other finance income/(cost) -                -          (1)
pensions and similar obligations
Share of net profit of joint                 -            8
ventures
Share of net profit of                       -            -
associates
Income from other non-current                -           19
investments


Profit/(loss) before taxation                -        (369)


Taxation                                     -          264


Profit/(loss) for the period                 -        (105)


Attributable to:

Minority interests                           -           39
Shareholders' equity                         -        (144)



Reconciliation of equity at 31 December 2004

(unaudited)

                             Previously   Goodwill Software Biological
                               reported        and              assets
                              under old indefinite
                                   GAAP      lived
                                        intangible
                                            assets
                                    EUR        EUR      EUR        EUR
                                million    million  million    million

Non-current assets

Goodwill                         11 508        600        -          -
Intangible assets                 3 830        903      166          -
Property, plant and               6 271          -        -       (36)
equipment
Biological assets                     -          -        -         33
Joint ventures and                   54          -        -          -
associates
Other non-current                   148          -        -          -
investments
Pension asset for funded            456          -        -          -
schemes in surplus
Trade and other receivables       1 198          -        -          -
due after more than one year
Deferred tax assets                   -          -        -          -
Total non-current assets         23 465      1 503      166        (3)


Current assets

Inventories                       3 758          -        -          -
Trade and other receivables       4 505          -        -          -
due within one year
Financial assets                  1 016          -        -          -
Cash and cash equivalents         1 587          -        -          -
Total current assets             10 866          -        -          -


Current liabilities

Creditors due within one       (14 570)          -        -          -
year
Borrowings                      (5 155)          -        -          -
Trade and other payables        (9 415)          -        -          -
Current tax liabilities               -          -        -          -
Net current assets/             (3 704)          -        -          -
(liabilities)
Total assets less current        19 761      1 503      166        (3)
liabilities


Non-current liabilities

Creditors due after more          7 610          -        -          -
than one year
Borrowings                        6 893          -        -          -
Trade and other payables            717          -        -          -
Provisions for liabilities        1 370        (6)        -          -
and charges
(excluding pensions and
similar obligations)
Restructuring and other           1 348          -        -          -
provisions
Interest in associates               22        (6)        -          -
Liabilities for pensions and      4 374          -        -          -
similar obligations
Pension liability for funded      1 633          -        -          -
schemes in deficit
Pension liability for             2 741          -        -          -
unfunded schemes
Deferred tax liabilities            511       (33)       50          1
Total non-current                13 865       (39)       50          1
liabilities


Shareholders' equity

Called up share capital             642          -        -          -
Share premium account             1 530          -        -          -
Other reserves                  (2 735)          -        -          -
Retained profit                   6 097      1 540      115        (4)
Total shareholders' equity        5 534      1 540      115        (4)
Minority interests                  362          2        1          -
Total equity                      5 896      1 542      116        (4)
Total capital employed           19 761      1 503      166        (3)

                                        Pensions and    Deferred
                                             similar         tax
                                         obligations restatement
                                                          effect
                                         EUR million EUR million

Non-current assets

Goodwill                                           -           -
Intangible assets                                  -           -
Property, plant and equipment                      -           -
Biological assets                                  -           -
Joint ventures and associates                      -           -
Other non-current investments                    174           -
Pension asset for funded schemes in             (39)           -
surplus
Trade and other receivables due after              -           -
more than one year
Deferred tax assets                                -           -
Total non-current assets                         135           -


Current assets

Inventories                                        -           -
Trade and other receivables due within             -           -
one year
Financial assets                                   -           -
Cash and cash equivalents                          -           -
Total current assets                               -           -


Current liabilities

Creditors due within one year                      -           -
Borrowings                                         -           -
Trade and other payables                           -           -
Current tax liabilities                            -           -
Net current assets/(liabilities)                   -           -
Total assets less current liabilities            135           -


Non-current liabilities

Creditors due after more than one year             -           -
Borrowings                                         -           -
Trade and other payables                           -           -
Provisions for liabilities and charges                         -
(excluding pensions and similar
obligations)
Restructuring and other provisions                             -

Interest in associates                             -           -
Liabilities for pensions and similar             186           -
obligations
Pension liability for funded schemes in           43           -
deficit
Pension liability for unfunded schemes           143           -
Deferred tax liabilities                        (15)       1 068
Total non-current liabilities                    171       1 068


Shareholders' equity

Called up share capital                            -           -
Share premium account                              -           -
Other reserves                                     -           -
Retained profit                                 (36)     (1 068)
Total shareholders' equity                      (36)     (1 068)
Minority interests                                 -           -
Total equity                                    (36)     (1 068)
Total capital employed                           135           -




                         Tax      Joint Dividends   Other       Total
                    reclassi   ventures                     effect of
                                    and                    transition
                       fying associates                            to
                      effect                                     IFRS    
                         EUR        EUR       EUR     EUR         EUR 
                     million    million   million million     million

Non-current assets

Goodwill                   -          -         -       -         600
Intangible assets          -          -         -       -       1 069
Property, plant and        -          -         -    (54)        (90)
equipment
Biological assets          -          -         -       -          33
Joint ventures and         -          -         -       -           -
associates
Other non-current          -          -         -     376         550
investments
Pension asset for        208          -         -       -         169
funded schemes in
surplus
Trade and other        (973)          -         -      54       (919)
receivables due
after more than one
year
Deferred tax assets    1 491          -         -       -       1 491
Total non-current        726          -         -     376       2 903
assets


Current assets

Inventories                -          -         -     (2)         (2)
Trade and other            -          -         -   (374)       (374)
receivables due
within one year
Financial assets           -          -         -     (3)         (3)
Cash and cash              -          -         -       3           3
equivalents
Total current              -          -         -   (376)       (376)
assets


Current liabilities

Creditors due            686          -     1 215       -       1 901
within one year
Borrowings                 -          -         -       -           -
Trade and other          686          -     1 215       -       1 901
payables
Current tax            (686)          -         -    (32)       (718)
liabilities
Net current assets/        -          -     1 215   (408)         807
(liabilities)
Total assets less        726          -     1 215    (32)       3 710
current liabilities


Non-current
liabilities

Creditors due after        -          -         -       -           -
more than one year
Borrowings                 -          -         -       -           -
Trade and other            -          -         -       -           -
payables
Provisions for             -          -         -       -         (6)
liabilities and
charges
(excluding pensions
and similar
obligations)
Restructuring and          -          -         -       -           -
other provisions
Interest in                -          -         -       -         (6)
associates
Liabilities for        1 519          -         -       -       1 705
pensions and
similar obligations
Pension liability        615          -         -       -         658
for funded schemes
in deficit
Pension liability        904          -         -       -       1 047
for unfunded
schemes
Deferred tax           (793)          -         -       -         278
liabilities
Total non-current        726          -         -       -       1 977
liabilities


Shareholders'
equity

Called up share            -          -         -       -           -
capital
Share premium              -          -         -       -           -
account
Other reserves             -          -         -       -           -
Retained profit            -          -     1 215    (32)       1 730
Total shareholders'        -          -     1 215    (32)       1 730
equity
Minority interests         -          -         -       -           3
Total equity               -          -     1 215    (32)       1 733
Total capital            726          -     1 215    (32)       3 710
employed



                                                  Restated
                                                     under
                                                      IFRS
                                               EUR million

Non-current assets

Goodwill                                            12 108
Intangible assets                                    4 899
Property, plant and equipment                        6 181
Biological assets                                       33
Joint ventures and associates                           54
Other non-current investments                          698
Pension asset for funded schemes in surplus            625
Trade and other receivables due after more             279
than one year
Deferred tax assets                                  1 491
Total non-current assets                            26 368


Current assets

Inventories                                          3 756
Trade and other receivables due within one           4 131
year
Financial assets                                     1 013
Cash and cash equivalents                            1 590
Total current assets                                10 490


Current liabilities

Creditors due within one year                     (12 669)
Borrowings                                         (5 155)
Trade and other payables                           (7 514)
Current tax liabilities                              (718)
Net current assets/(liabilities)                   (2 897)
Total assets less current liabilities               23 471


Non-current liabilities

Creditors due after more than one year               7 610
Borrowings                                           6 893
Trade and other payables                               717
Provisions for liabilities and charges               1 364
(excluding pensions and similar obligations)
Restructuring and other provisions                   1 348
Interest in associates                                  16
Liabilities for pensions and similar                 6 079
obligations
Pension liability for funded schemes in              2 291
deficit
Pension liability for unfunded schemes               3 788
Deferred tax liabilities                               789
Total non-current liabilities                       15 842


Shareholders' equity

Called up share capital                                642
Share premium account                                1 530
Other reserves                                     (2 735)
Retained profit                                      7 827
Total shareholders' equity                           7 264
Minority interests                                     365
Total equity                                         7 629
Total capital employed                              23 471


DIVIDENDS

The Boards have resolved to recommend to the Annual General Meetings of NV and PLC, to be held on 8 May 2006 and 9 May 2006 respectively, the declaration of final dividends in respect of 2005 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.

As required under IAS 10, final dividends for 2005 are not reflected in the financial statements for the year ended 31 December 2005, since they had not been approved by shareholders at the balance sheet date.

Unilever N.V.

EUR1.32 per ordinary share (2004: EUR1.26), bringing the total of NV's dividend for 2005 to EUR1.98 per ordinary share (2004: EUR1.89).

Unilever PLC

13.54p per ordinary share (2004: 12.82p), bringing the total of PLC's dividend for 2005 to 20.31p per ordinary share (2004: 19.15p).

Subject to AGM approval, the NV final dividend will be paid on 12 June 2006, to shareholders registered at close of business on 9 May 2006.

Subject to AGM approval, the PLC final dividend will be paid on 12 June 2006, to shareholders registered at close of business on 19 May 2006.

Dividend on New York shares of NV

US dollar checks for the final dividend on the New York Shares of EUR0.51* nominal amount after deduction of Netherlands withholding tax at the appropriate rate, converted at the euro/dollar European Central Bank rate of exchange on 8 May 2006 will be mailed on 11 June 2006 to holders of record at the close of business on 12 May 2006. If converted at the euro/dollar rate of exchange on 8 February 2006, the NV final dividend would be US $1.577136 per New York share (2004 final dividend: US $1.619604 actual payment) before deduction of Netherlands withholding tax. With the interim dividend in respect of 2005 of US $0.791472 at the actual euro/ dollar conversion rate, already paid, this would result in a total for interim and final dividends in respect of 2005 of US $2.368608 per New York Share (2004: US $2.424996 actual payment).

* 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.

Dividend on American Depositary Receipts of PLC

US Dollar checks for the final dividend on the American Depositary Receipts in PLC converted at the sterling/dollar rate of exchange current in London on 9 May 2006 will be mailed on 11 June 2006 to holders of record at the close of business on 19 May 2006. Each American Depositary Receipt in PLC represents four 1.4p ordinary shares in PLC. The PLC final dividend will therefore be 54.16p per American Depositary Receipt in PLC. If converted at the sterling/dollar rate of exchange on 8 February 2006, the PLC final dividend would be US $0.9438 per American Depositary Receipt in PLC (2004 final dividend: US $0.9658 actual payment). With the interim dividend in respect of 2005 of US $0.4779 at the actual sterling/dollar conversion rate, already paid, this would result in a total for interim and final dividends in respect of 2005 of US $1.4217 per American Depositary Receipt in PLC (2004: US $1.4312 actual payment).

EARNINGS PER SHARE

(unaudited)

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 as treasury stock.

The number of combined share units is calculated from the underlying NV and PLC shares using the exchange rate of GBP1 = EUR5.445, in accordance with the Equalisation Agreement.

In the calculation of diluted earnings per share, a number of adjustments are made to the number of shares, principally the following: (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 EUR0.05 NV preference shares (up to the point of conversion); and (iii) the exercise of share options by employees.

Earnings per share for total operations for the full year

                                                      2005      2004



Combined EPS                                     Thousands of units
Average number of combined share units of EUR      970 990   963 407
0.51
Average number of combined share units of 1.4p   6 473 266 6 422 715


                                                         EUR million

Net profit attributable to shareholders' equity      3 766     2 755
Less: preference dividends                             n/a      (28)
Net profit attributable to shareholders' equity      3 766     2 727
for
basic earnings per share calculation


Combined EPS per EUR 0.51 (Euros)                     3.88      2.83
Combined EPS per 1.4p (Euro cents)                   58.17     42.46


Combined EPS - Diluted                           Thousands of units
Adjusted average number of combined share units  1 002 303 1 010 885
of EUR 0.51
Adjusted average number of combined share units  6 682 023 6 739 234
of 1.4p


                                                     EUR million

Adjusted net profit attributable to                  3 769     2 748
shareholders' equity


Combined diluted EPS per EUR 0.51 (Euros)             3.76      2.72
Combined diluted EPS per 1.4p (Euro cents)           56.40     40.78




Combined EPS - American shares

Combined EPS per EUR 0.51 NV New York Share          $4.82     $3.50
Combined EPS per 5.6p PLC American Depositary        $2.89     $2.10
Receipt


Combined diluted EPS per EUR 0.51 NV New York        $4.68     $3.37
Share
Combined diluted EPS per 5.6p PLC American           $2.81     $2.02
Depositary Receipt

DATES

The Annual Report and Accounts 2005 will be published on 29 March 2006. The results for the first quarter 2006 will be published on 4 May 2006.

ENQUIRIES: UNILEVER PRESS OFFICE
+44 (0) 20 7822 6805/6010
Internet: www.unilever.com
E-mail: press-office.london@unilever.com


9 February 2006


                      This information is provided by RNS
            The company news service from the London Stock Exchange