As
filed with the Securities and Exchange Commission on March 29, 2007

|                     | UNITED
          STATES                                                 | 
|-------------------- | ----------------------------------------------------------------------- | 
|                     | SECURITIES
          AND EXCHANGE COMMISSION                            | 
|                     | WASHINGTON,
          D.C. 20549                                        | 
|                     | FORM
          20-F                                                     | 
|(Mark
          One) |                                                                         | 
|                     | REGISTRATION
          STATEMENT PURSUANT TO SECTION 12(b)              | 
|                     | OR 12(g)
          OF THE SECURITIES EXCHANGE ACT OF 1934               | 
|                     | OR                                                                      | 
|                     | ANNUAL
          REPORT PURSUANT TO SECTION 13 OR 15(d) OF              | 
|                     | THE
          SECURITIES EXCHANGE ACT OF 1934                           | 
|                     | For
        the fiscal year ended 31 DECEMBER 2005                      | 
|                     | OR                                                                      | 
|                     | TRANSITION
          REPORT PURSUANT TO SECTION 13 OR 15(d) OF          | 
|                     | THE
          SECURITIES EXCHANGE ACT OF 1934                           | 
|                     | For
        the transition period from ______________ to ______________ | 

Commission file
    number 1-4547

UNILEVER N.V.(Exact name
    of Registrant as specified in its charter)

THE NETHERLANDS(Jurisdiction
    of incorporation or organization)

WEENA 455, 3013
      AL, ROTTERDAM, THE NETHERLANDS(Address
        of principal executive offices)

| | Securities
        registered or to be registered pursuant to Section 12(b) of the Act: |                                                  | 
| | --------------------------------------------------------------------------------------- | ------------------------------------------------ | 
| |                                                                                         |                                                  | 
| | Title
        of each class                                                             | Name
        of each exchange on whichregistered | 
| |                                                                                         |                                                  | 
| | Ordinary
        shares of the nominal amount of 0.51 euro (€0.51) each*                | New
          York Stock Exchange                | 
| |                                                                                         |                                                  | 

Securities
    registered or to be registered pursuant to Section 12(g) of the Act: None(Title
      of class)

Securities
    for which there is a reporting obligation pursuant to Section 15(d) of the
    Act: None(Title
      of class)

| |                                                                                                                                                                                                                                                                                                                                                                                                           | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | The
        total number of outstanding shares of the Registrants capital at
        the close of the period covered bythe
        Annual Report was 571 575 900 ordinary shares                                                                                                                                                                                                                         | 
| |                                                                                                                                                                                                                                                                                                                                                                                                           | 
| | Indicate
        by check mark whether the Registrant (1) has filed all reports required
        to be filed by Section 13of
        15(d) of the Securities Exchange Act of 1934 during the preceding 12
        months (or such shorter periodthat
        the Registrant was required to file such reports), and (2) has been subject
        to such filing requirementsfor
        the past 90 days. | 

|Yes |  | No
|--- |  | --

| | Indicate
        by check mark which financial statement item the Registrant has elected
        to follow. | 
| | ----------------------------------------------------------------------------------------------------------- | 

|Item
          17 |  | Item
        18
|----------------- |  | ---------------

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
| | * For
        Unilever N.V. share capital, the euro amounts shown above and in the
        Unilever Annual Report and Accounts 2005 on Form 20-F and other official
        documents are representations in euros on the basis of Article 67c of
        Book 2 of the Civil Code in the Netherlands, rounded to two decimal places,
        of underlying share capital in Dutch guilders, which have not been converted
        into euros in Unilever N.V.s Articles of Association. Until conversion
        formally takes place by amendment of the Articles of Association the
        entitlements to dividends and voting rights are based on the underlying
        Dutch guilder amounts. | 



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Back to Contents

|At a glance
|-----------
|           



|Turnover(€ million)Continuing
    operations             |  | Operating profit(€ million)Continuing operations           
|-------------------------------------------------------- |  | -----------------------------------------------------------
|                                                         |  |                                                            
|                                                         |  |                                                            
|                                                         |  |                                                            
|Operating margin(%)Continuing operations                 |  | Earnings per share(€)
Total
operations                     
|                                                         |  |                                                            
|                                                         |  |                                                            
|                                                         |  |                                                            
|                                                         |  |                                                            
|                                                         |  |                                                            
|Dividends
  Per Ordinary €0.16
share of
Unilever N.V.(€) |  | Per Ordinary
    31/9p share of
    Unilever PLC(pence)    
|                                                         |  |                                                            
|                                                         |  |                                                            
|                                                         |  |                                                            
|Per €0.16 New York Registry share
of
Unilever N.V.($)    |  | Per31/9p American Depositary Receipt of
    Unilever PLC($)
|                                                         |  |                                                            
|                                                         |  |                                                            
|                                                         |  |                                                            

In addition to the dividends shown above, one-off
    dividends of the following amounts per share were paid in December 2006: €0.26 per ordinary NV share; 17.66p
per ordinary PLC share; $0.3316 per NV New York Registry share; and $0.3372
per PLC American Depositary Receipt.

The dividend and earnings per share information given above, including comparative
amounts for prior years, is expressed in terms of the nominal share values which
have applied since 22 May 2006, following the split of NV shares and the consolidation
of PLC shares which were approved at the 2006 AGMs.

Dividend figures for each year comprise dividends declared or proposed for that
year. Under International Financial Reporting Standards (IFRS), dividends are
only recorded against the year in which they become
payable.

Actual dividends payable for 2006 on Unilever N.V. New York Registry Shares and
American Depositary Receipts of Unilever PLC may differ from those shown above,
which include final dividend values calculated using the rates of exchange ruling
on 7 February 2007 (€1.00 = $1.2987, £1 = $1.9718) .

The term shares as used in this document should, with respect to
shares issued by Unilever N.V., be construed to include depositary receipts for
shares issued by Foundation Unilever NV Trust Office, unless the context otherwise
requires or unless it is clear from the context that this is not the case. For
further information please refer to page 41.



---



|The Unilever Group                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                                                      | Contents                  |  
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------- | ------------------------- | -
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                           |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                           |  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                           |  
|Unilever
          N.V. (NV) is a public limited company registered in the Netherlands,
          which has listings of shares and depositary receipts for shares on
          Euronext Amsterdam and of New York Registry Shares on the New York
          Stock Exchange.
      Unilever PLC (PLC) is a public limited
          company registered in England and Wales which has shares listed on
          the London Stock Exchange and, as American Depositary Receipts, on
          the New York Stock Exchange.
      The two parent companies, NV and PLC,
          together with their group companies, operate as a single economic entity
          (the Unilever Group, also referred to as Unilever or the Group). NV
          and PLC and their group companies constitute a single reporting entity
          for the purposes of presenting consolidated accounts. Accordingly,
          the accounts of the Unilever Group are presented by both NV and PLC
          as their respective consolidated accounts.
      Basis of reportingOur accounting policies
        are based on International Financial Reporting Standards (IFRS) as adopted
        by the EU and UK and Dutch law. These differ in certain respects from
        accounting principles generally accepted in the United States (US GAAP).
        Certain measures used in our reporting are not defined under either IFRS
        or US GAAP. For further information about these measures, and the reasons
        why we believe they are important for an understanding of the performance
        of the business, please refer to the Operating review on page 13 and
        the Financial review on page 23. Variations from United States generally
        accepted accounting principles (US GAAP) and Securities and Exchange
        Commission Financial Statement Requirements Regulation S-X are outlined
        in notes 34 and 35 on pages 124 to 140.
      The brand names shown in italicsin
          this report are trademarks owned by or licensed to companies within
          the Unilever Group.
      Reporting currency and exchange
              ratesDetails of key exchange
      rates used in preparation of these accounts are given on page 146, together
      with Noon Buying Rates in New York for the equivalent dates.
      Forward-looking statementsThis document contains
        certain statements that are neither reported financial results nor other
        historical information. These statements are forward-looking statements,
        including within the meaning of the United States Private Securities
        Litigation Reform Act of 1995. For a description of factors that could
        affect future results, reference should be made to the full Cautionary
    Statement on the inside back cover. |  |                                                                      | Chairmans
        report | 3
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | About Unilever                                                       | 5                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Group Chief
        Executive                                        | 11                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Operating
        review  regions                                   | 13                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Operating
        review  categories                                | 20                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Financial
        review                                             | 23                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Corporate
        governance                                         | 33                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Report of
        the Nomination Committee                           | 48                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Report of
        the Remuneration Committee                         | 49                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Report of
        the Audit Committee                                | 63                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Report
    of the Corporate Responsibility and Reputation Committee  | 64                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Financial
    statements                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Statement
        of Directors responsibilities                     | 66                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Managements
    report on internal control over financial reporting | 68                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Auditors report                                                     | 69                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Consolidated
        income statement                                | 70                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Consolidated
    statement of recognised income and expense          | 71                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Consolidated
        balance sheet                                   | 72                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Consolidated
        cash flow statement                             | 73                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Notes to the
        consolidated accounts                           | 74                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Selected financial
        data                                      | 141                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Principal
    group companies and non-current investments            | 147                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                      |                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Shareholder
    information                                         
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Analysis of
        shareholding                                     | 149                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Exchange
      controls affecting security holders                   | 150                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Nature of
        the trading market                                 | 151                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Taxation
      for US residents holding shares in NV                 | 153                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Taxation
    for US residents holding shares in PLC                  | 154                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Dividend record                                                      | 155                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Glossary                                                             | 156                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Cross reference
        to Form 20-F                                 | 157                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Financial
        calendar                                           | 158                      
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|A changing Unilever
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Our mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.

Unilever is changing  from the way we are structured and the way we operate, to the choices we make and the priorities we set.

We have a reformed governance, a new structure and a One Unilever programme
creating consistency, delivering cost savings and enabling us to leverage our
global scale. We are developing and implementing brilliant consumer marketing.
We are strengthening our relationships with retail customers. And we are outsourcing
transactional operations in IT, finance and HR so we can focus on growing global
brands.

In supporting our growth strategy, these changes are all making an impact on
performance. 2006 was a year of progress, showing consistent broad-based growth,
with all regions and all categories contributing, and savings programmes delivered
ahead of plan, helping to offset higher input costs.

Our investment priorities  personal care, developing and emerging markets,
and Vitality  are fuelling this growth. For example, our Vitality mission
is shaping and directing our brand development, our partnerships and the way
in which we operate around the world.

On the following pages you will recognise information about many of our world-famous
brands and see how our values  our desire to improve peoples lives,
our commitment to the communities in which we operate  are at the heart
of our business. But you will also witness a new purpose, a new confidence and
a new hunger to succeed.

Whether serving the worlds most affluent consumers or those with very limited
disposable income, we always remember that respect and reputation have to be
earned. And retaining the trust and credibility that Unilever has built up over
many years is critical to our success in helping people feel good, look
good and get more out of life.



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|Chairmans report
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In 2006 we regained the initiative in the marketplace resulting in top line growth of 3.8% and a stabilisation of our market shares. Many initiatives such as One Unilever were accelerated and executed
with great skill and discipline. On behalf of the Boards I would like to thank Patrick and his team, as well as
all our 179 000 employees around the world, for their hard work and commitment. Although economic activity has been favourable, in other business areas (for
example raw material prices) the going has been tough. Therefore the words of
appreciation from the Boards are well deserved. I would like to report back to you on a number of issues concerning the dual
structure, Board composition and Board evaluation. Dual structureIn 2005 three proposals were put
forward to change Unilevers constitutional arrangements. All were approved
by shareholders at the two Annual General Meetings (AGMs) which were held in
May 2006. As a result, we now have greater flexibility to allocate assets between the two
parent companies. In addition, there is full transparency between our share prices
since there is one-to-one equivalence in their economic interests in the Unilever
Group. Finally, our shareholders have the right to nominate candidates to the
Boards. All of this means we have simplified the relationship between our NV and PLC
shares, and strengthened several elements of Unilevers corporate governance.
At the same time, the Group continues to benefit from its
dual structure. I would like to remind you that the dual structure refers to the legal framework
of Unilever. When it comes to the day-to-day management of Unilevers operations
the Group is run on the principle of one operating unit and as such the vast
majority of employees are, quite properly, unaware of our legal structure. Board successionDuring 2006 we continued our search
to identify candidates for the Boards who would strengthen its expertise and
independence. We are very pleased that Genevieve Berger, Narayana Murthy and
Hixonia Nyasulu have expressed their willingness
to serve on Unilevers Boards; they will be proposed as Non-Executive Directors
at the AGMs in May 2007. Genevieve is a Professor of Biophysics and Medical Imaging
at Paris University VI and Chairman of the Advisory
Board Health for the EU Commission for Research. Narayana is co-founder
and Chairman of Infosys Technologies Limited. Hixonia is a Non-Executive Director
of Sasol Limited and Anglo Platinum and an Advisory Board Member of JP Morgan
South Africa. Their appointments will bring further diversity of background and
experience to the Boards and we hope that their nominations will be approved
by shareholders.


In addition to welcoming these new members to the Boards, we will be saying goodbye
to two of the Directors. First, Rudy Markham. Rudy retires after 39 years of
distinguished service with Unilever during which time he has successfully occupied
a number of senior executive positions. In 1998 he joined the Boards as Strategy
and Technology Director, being appointed Financial Director, now Chief Financial
Officer, in 2000. On behalf of the Boards I would like to acknowledge his outstanding
career and thank him for the significant contribution he has made to our business
throughout that time. Secondly, Lynda Chalker. Lynda retires as a Non-Executive Director after three
terms of three years. She has served as Chair of the Corporate Responsibility
and Reputation Committee and throughout her time on the Boards we have benefited
from her wise counsel and expert knowledge of developing markets. On your behalf I thank them both for their service. In addition, the Nomination Committee led by its Chairman David Simon was given
the task of searching for a new Chairman as my successor. We are delighted that
Michael Treschow has agreed to succeed me as the first independent Chairman of
the Boards of Unilever, subject to his appointment as a Non-Executive Director
at the AGMs. Michael is a businessman with a formidable track record gained in
some of the worlds most competitive consumer industries. He has also proved
himself an effective Chairman at both Ericsson and Electrolux, and we trust that
his appointment will be approved by shareholders. When these changes are implemented we will have finalised a complete restructuring
of our corporate governance arrangements. This change process was initiated in
2004 and it involved the elimination of Advisory Directors, the phase-out of
the dual leadership system, the adoption of a one-tier board structure and the
appointment of a fully independent Chairman of the Boards. We feel we will have
Boards in place which will measure favourably against the highest corporate governance
standards. Board evaluationDuring 2006 a full and thorough evaluation
of how the Boards functioned was conducted by a specialist outside firm. Taken
as a whole, the outcome was positive as it confirmed that the changes we have
made since 2004, the move from Advisory Directors to Non-Executive Directors
and the splitting of the Chairman and Chief Executive roles, have strengthened
our governance structure. In addition, the amount of time spent on Unilever Board
matters compares very
favourably with general practice. These conclusions support our belief that all the alterations to our governance
structure and proceedings have been beneficial to Unilever overall and that we
meet the very high standards expected of a group of our
size and complexity.




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|Chairmans report (continued)
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ConclusionI realise I a m writing to you for
  the last time after 35 years of service with Unilever. The changes within Unilever over this period have been truly transformational both in terms of product portfolio and geographical spread. Our turnover in Western Europe has declined from 65% to 34% of Unilever sales.
The expansion has been picked up by the developing countries which represent over 40% of our turnover. Moreover, 35 years ago 25% of Unilever sales were outside the fast moving consumer goods sector. Spearheaded by disposals and acquisitions such as Chesebrough Ponds and Bestfoods, Unilever turnover is now focused
on around 400 brands, all in consumer goods categories. Especially spectacular has been the rise of turnover of our personal care business from 4% of sales in 1972 to 28% of sales today. Perhaps the most impressive change since
    the early seventies is the step-up of the quality and strength of our brand
    portfolio. We have come from a position of no brand achieving a turnover of
    over €1 billion, to todays position of twelve billion-euro brands,
    representing around 55% of Unilevers turnover. All these changes together with the underpinning of our Vitality mission position our company favourably for future growth. What has not changed over the last four decades is the way Unilever conducts its business: integrity first and foremost in all things we undertake together with a keen interest for the communities and environment in
which we work. It has been a privilege to serve in Unilever over the last 35 years.




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|About Unilever
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Description of businessUnilever is one of the worlds
    leading suppliers of fast moving consumer goods across Foods and Home and
    Personal Care categories. Unilevers portfolio includes some of the worlds
    best known and most loved brands. Strategy and long-term
    financial targetsAt the heart of Unilever's
    strategy is a concentration of resources on areas where we have leading positions
    and on high growth spaces, especially in personal care, in developing and
    emerging markets and in Vitality. While the focus is on developing the business
    organically, acquisitions and disposals also have a role to play in accelerating
    the portfolio development. To execute this strategy the business has been reorganised to simplify the management structure and to improve capabilities in marketing, customer management, and research and development. The result is better
allocation of resources, better execution, faster decision-making and greater focus on efficiency. The new organisation, augmented by the successful 'One Unilever' project, allows us to leverage our scale both globally and locally. Unilever's long-term ambition is to achieve
    top-third total shareholder return and our targets reflect this. Over the
    period 2005-2010 we target ungeared free cash flow of €25-30 billion.
    Disposals made in the past two years, with no significant acquisitions to
    date, have reduced the cash generation over the period by just over €1
    billion. Return on invested capital is targeted to increase over the 2004
    base of 11%. We expect underlying sales growth of 3-5% per annum and an operating
    margin in excess of 15% by 2010 after a normal level of restructuring of 0.5
    to 1 percent of sales. Key performance
    indicatorsUnderlying sales growth,
    operating margin, ungeared free cash flow, return on invested capital and
    total shareholder return are key performance indicators for the Group. In the Operating review on pages 13 to 22 and the Financial review on pages 23 to 32 we explain why we regard these as important indicators of our progress against our strategic objectives, describe how we calculate
them, and report on the results of these measures for the current and preceding years. RegionsThree regional teams are
    responsible for managing Unilevers business in the regions, and for
    market operations. They are primarily responsible for winning with customers
    and deploying brand events and innovations effectively. The regions are fully
    accountable for the profit performance of our business, as well as growth,
    short-term cash flows and the in-year development of market shares.


The Europe region includes our operations in Western Europe and in Central and Eastern Europe, and in 2006 accounted for approximately 38% of our business on a turnover basis. The Americas region includes our
operations in North America and Latin America and represented around 35% of our business. Our Asia Africa region accounted for 27% of our business, and includes our operations in the Middle East, Turkey, Africa, Asia and Australasia. CategoriesTwo category teams cover
    Foods and Home and Personal Care, and are responsible for each category and
    the brands therein. They are fully responsible for brand development and innovation,
    including research and development. Categories also lead the strategic elements
    of the supply chain and are accountable for long-term value creation in the
    business, as measured by market share development, category growth, innovation
    metrics and brand health. For more information about our two categories and their innovation activities during 2006 please refer to pages 20 to 22. FunctionsOur five support functions
    (Finance, HR, IT, Communications and Legal) provide value-adding business
    partnership, strategic support and competitive services to the whole business
    (especially the regional and category organisations). They are organised around
    the model of business partners, shared services and expertise teams. Operating environment CompetitionWe have a wide and diverse set of
    competitors in our consumer goods businesses. Many of our competitors also
    operate on an international scale, but others have a narrower regional or
    local focus. Competition is a normal part of business. We aim to compete and give value to our consumers, customers and shareholders in three ways: •
      by continually developing new and improved
        products;•
      by sharing our innovations and concepts
        with our businesses all around the
        world; and•
      by striving to lower the cost of our
        sourcing, manufacturing and distribution
        processes while still maintaining, and improving,
        the quality of our products. We support efforts to create a more open competitive environment through the liberalisation of international trade. We support the full implementation of the Single European Market and inclusion in the European Union
of other countries that fulfil the agreed criteria for membership. DistributionUnilevers products are generally
    sold through its sales force and through independent brokers, agents and distributors
    to chain, wholesale, co-operative and independent grocery accounts, food service
    distributors and institutions. Products are distributed through distribution
    centres, satellite warehouses, company-operated and public storage facilities,
    depots and other facilities.




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|About Unilever(continued)
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ExportsWe sell our products in nearly all
    countries throughout the world and manufacture in many of them. We export
    a wide range of products to countries where we do not make them. For example,
    inside the European Union we make many of our products in only a few member
    countries, for sale in all of them. The chosen manufacturing configuration
    is generally determined by an optimised regional sourcing strategy which takes
    account of requirements for innovation, quality, service, cost and flexibility. SeasonalityCertain of our businesses,
    such as ice cream, are subject to significant seasonal fluctuations in sales.
    However, Unilever operates globally in many different markets and product
    categories. No individual element of seasonality is likely to be material
    to the results of the Group as a whole. Related party
    transactionsTransactions with related
    parties are conducted in accordance with agreed transfer pricing policies
    and include sales to joint ventures and associates. Other than those disclosed
    in this report, there were no related party transactions that were material
    to the Group or to the related parties concerned that are required to be reported
    in 2006 or the two preceding years. For more information about related party transactions please refer also to note 30 on page 122. Resources Our brands  FoodsOur Foods category manages brands
    in two main groups: Savoury, dressings and spreadsincludes sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings,
    olive oil, margarines, spreads and cooking products such as liquid margarines
    and the remaining frozen foods businesses. Among the leading brands areKnorr,
    Hellmanns, Calvé, Wish-Bone, Amora,
    Bertolli, our healthy heart Beceland Floraranges, and
    our family brands includingRama, Blue Bandand Country Crock. Ice cream and beveragesincludes our sales of ice cream under the internationalHeartbrand, including Cornetto, Magnum,
    Carte dOrand Solero, and also Ben & Jerrys,
    Breyers, Klondikeand Popsicle. It also includes sales
    of tea, where our brands include Liptonand Brooke Bond, weight
    management products, principally Slim•Fast, and nutritionally
    enhanced staples sold in developing markets, including our Annapurnaand
    AdeSranges. Within these groups, our UnileverFoodsolutionsbusiness is a global food service business providing solutions for professional chefs
and caterers. Its results are reported within those for the groups above. Our brands  Home and Personal
    CareOur Home and Personal Care category
    manages brands in two main groups: In Personal Care,
    six global brands are the core of our business in the deodorants, skin cleansing,
    daily hair care and mass-market skin care categories Axe, Dove, Lux,
    Ponds, Rexonaand Sunsilk. Other important brands
    include Suave, Clear, Lifebuoyand Vaseline, together
    with Signaland Close Upin oral care.


Our Home Care
    ranges include a series of laundry products, including tablets as well as
    traditional powders and liquids for washing by hand or machine. Tailored products
    including soap bars are available for lower-income consumers. Our brands includeComfort,
    Omo, Radiant, Skip, Snuggleand Surf. Our
    household care products are led by our Cifand Domestosbrands. Corporate venture activitiesUnilever has allocated €350
    million to its venturing activities in order to create business opportunities
    that will help build our core business interests in Foods and Home and Personal
    Care. These activities include: •
      Unilever Technology Ventures,
        which invests in technology funds
        and start-up companies;•
      Unilever Ventures, which
        is an early-stage business development fund
        for businesses from both inside and outside Unilever; and•
      Langholm Capital, which
        is an independent fund investing in private
        European companies with above-average longer-term growth
        prospects. Our employeesWe set great store by our people.
    No matter what their level or individual responsibilities, they all make an
    important contribution to our success. The following examples outline some of the initiatives we have instigated to help our people develop their skills, broaden their experience and  wherever they are in the world  improve their chances of
progressing within Unilever. Talented people are given opportunities to develop at every level. However, our new senior leadership programme, launched in 2006, is aimed at those with potential to reach the top roles. The programme includes a
bespoke business simulation, based on one of our skincare businesses. It provides an exceptional opportunity for senior managers rapidly to gain the breadth and depth of business and leadership understanding required for our businesss most
demanding roles. We are always looking at new ways of working to drive business effectiveness. One example is in the area of business travel which can be time-consuming and tiring. Our current videoconferencing equipment is being
upgraded to state-of-the-art facilities at five major Unilever sites worldwide and is expected to enable us to reduce travel. These facilities mean that complete teams can communicate effectively with one another across continents and time zones
without anyone leaving the office  making better use of everyones time and energy, and limiting time spent away from home. During 2006, as part of a graduate recruitment programme, Unilever Netherlands set an unusual work-experience challenge. Students spent two weeks in rural India on Hindustan Levers Project Shakti, helping women
in remote areas who have set up small businesses as direct-to-consumer retailers and measuring the projects success. By providing local women with training and business skills, Shakti creates a new distribution channel for our products while
providing the women with opportunities to improve their income, standard of living and place in the community. It also helped open Dutch students eyes to the wide variety of activities that take place across the Unilever world.




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|About Unilever(continued)
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Unilever employees whose skills are honed in
  developing and emerging (D&E) markets are reaching senior positions both
  at home and abroad, and 20% of our top 123 managers are from D&E regions.
  Andina/Central America, Argentina, Brazil, India, Indonesia, Japan, Mexico,
  Pakistan, the Philippines and South Africa all have either local nationals as
  their chairmen, or chairmen from within the D&E regions. Furthermore, 39%
  of all individuals on international secondment are from developing or emerging
  countries. Hindustan Lever, Unilevers business in India, has a Personal Vitality Programme which assesses individual employees body mass, blood pressure, cholesterol and blood sugar levels. And assistance is provided
to those who have nutrition or health issues, or exercise requirements. Although voluntary, over 10 000 employees have taken part so far and each will be followed up annually to ensure they have every opportunity to improve their health. Strong, effective leadership is at the heart of our transformation programme and is the key to sustaining high levels of business performance. Our new global Standards of Leadership framework clearly sets out the
behaviours needed to align hearts and minds, inspire people to achieve excellence in strategy execution and develop the skills and capabilities we need for the future. Maintaining health and fitness can be challenging for senior managers in demanding roles. During 2006, several senior leadership teams  including the Unilever Executive  took part in a well-being programme.
Each received their own individual health and Vitality check, which was then used to design a personal plan to enhance their habits and practices in physical activity, nutrition and mental resilience. In 2007 a further ten leadership teams are
expected to participate in a well-being programme. Our total employee numbers over the last five years were as follows: Year end
        in thousands
      2006
      
      2005
      
      2004
      
      2003
      
      2002Europe
      44
      
      49
      
      52
      
      55
      
      60The Americas
      45
      
      47
      
      47
      
      50
      
      53Asia Africa
      90
      
      110
      
      124
      
      129
      
      134Total
      179
      
      206
      
      223
      
      234
      
      247 Of the overall reduction in numbers during 2006 of 27 000, the sale of a plantations business in India accounted for a reduction of 18 000. A further 3 000 resulted from the sale of the majority of our European frozen
foods businesses, with the remainder of the reduction arising from other business disposals and a range of restructuring projects. Included in the total reported numbers for 2006 were 26 000 part-time or seasonal employees (2005: 33 000).


DiversityDiversity in Unilever is about inclusion,
    embracing differences, creating possibilities and growing together for better
    business performance. We embrace diversity in our workforce; this means giving
    full and fair consideration to all applicants and continuing development to
    all employees, regardless of gender, nationality, race, creed, disability,
    style or sexuality. Diversity plays a vital role in ensuring we understand
    consumers needs. The commitment to diversity is set right at the
top of our business. An important legacy of our Chairman, AntonyBurgmans, is that he is leaving the most diverse Unilever Board in our history. Going forward, Group Chief Executive Patrick Cescau will lead our global diversity board that will drive the diversity strategy within the
business. Unilever is one of the worlds most culturally diverse companies with 24 different nationalities represented among our top 123 managers worldwide. In 2006 we focused on practical diversity initiatives. These included the quarterly measurement and tracking of diversity against objectives and the integration of our diversity agenda into our people processes. Gender continues to be the primary focus of our diversity strategy, as well as a way of improving business performance. Between 2000 and 2006, we have increased our female management profile from 25% to 33% and most of
our senior leadership teams, such as Foods, Europe, The Americas and human resources include female leaders. Information technologyUnilever IT is a global function
    headed by the Global Chief Information Officer with a strategy to deliver
    simpler, more cost effective IT solutions to support the business. Common
    technology framework and standards for architecture, key technologies, process,
    information and services, allow Unilever to leverage its scale. For example,
    this approach is supporting the integration of our businesses in each country
    under the One Unilever programme, as well as the setting up of
    regional shared service centres for back-office operations, which
    in some cases are being outsourced. The development of destination IT architecture is another example of simplifying and leveraging scale. The destination IT architecture is essentially a long-term view on the IT application and technology
landscape for Unilever. This also fundamentally changes the way IT works with the business. Unilever partners with a few major suppliers to develop the minimum number of non-overlapping systems needed to deliver the business objectives. This promotes radical simplification with flexibility and agility, faster
implementation and reduced costs. Intellectual propertyWe have a large portfolio of patents
    and trademarks, and we conduct some of our operations under licences which
    are based on patents or trademarks owned or controlled by others. We are not
    dependent on any one patent or group of patents. We use our best efforts to
    protect our brands and technology.




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|About Unilever(continued)
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Property, plant and equipmentWe have interests in properties
    in most of the countries where there are Unilever operations. However, none
    is material in the context of the Group as a whole. The properties are used
    predominantly to house production and distribution activities and as offices.
    There is a mixture of leased and owned property throughout the Group. There
    are no environmental issues affecting the properties which would have a material
    impact upon the Group, and there are no material encumbrances on our properties.
    Any difference between the market value of properties held by the Group and
    the amount at which they are included in the balance sheet is not significant.
    Please refer to the schedule of principal group companies and non-current
    investments on page 147 and 148 and details of property, plant and equipment
    in note 10 on page 90. We currently have no plans to construct new facilities or expand or improve our current facilities in a manner that is material to the Group. Laws and regulationUnilever businesses are governed
    by laws and regulations designed to ensure that products may be safely used
    for their intended purpose and that labelling and advertising are truthful
    and not misleading. Unilever businesses are further regulated by data protection
    and anti-trust legislation. Important regulatory bodies in respect of our
    businesses include the European Commission and the US Food and Drug Administration. We have processes in place to ensure that products, ingredients, manufacturing processes, marketing materials and activities comply with the above-mentioned laws and regulations. Legal proceedingsWe are not involved in any
    legal or arbitration proceedings which might lead to material loss or expenditure
    in the context of the Group results. Similarly we do not have any material
    obligations under environmental legislation. None of our Directors or Officers
    is involved in any legal proceedings which are material as aforesaid. Preference sharesIn 1999, NV issued 211 473 785 €0.05
    (Fl.0.10) cumulative preference shares, with a notional value of €6.58
    (Fl.14.50), as an alternative to a cash dividend. In March 2004, NV announced
    its intention to convert part (€6.53  equivalent to Fl.14.40)
    of the notional value of the preference shares, in accordance with its Articles
    of Association, into NV ordinary shares in the first quarter of 2005. A number
    of holders of preference shares raised objections to the conversion, claiming
    that NV had created legitimate expectations that it would buy the preference
    shares back for an amount of €6.58, the amount of the cash dividend
    in 1999. A group of holders of preference shares requested the Enterprise
    Chamber of the Amsterdam Court of Appeal to conduct an inquiry into the course
    of affairs surrounding the preference shares. On 21 December 2004, the Enterprise
    Chamber ordered an inquiry; an additional request to forbid NV to convert
    the preference shares was rejected. On 15 February 2005 NV converted part of the
    notional value of the preference shares into NV ordinary shares. The value,
    which the holders of the preference shares received upon conversion, was €4.55
    for each preference share.


As a consequence of the conversion, the notional
    value of the preference shares was reduced to €0.05 (Fl.0.10) and pursuant
    to the Articles of Association of NV the preference shares could be cancelled
    upon repayment of this remaining notional value. On 4 May 2005, the Enterprise
    Chamber of the Amsterdam Court of Appeal rejected another request of a group
    of holders of preference shares who had bought their preference shares after
    24 March 2004, which was aimed to prohibit NV from cancelling the preference
    shares. On 10 May 2005, NVs Annual General Meeting decided to cancel
    the preference shares and cancellation took effect on 13 July 2005. On 8 September 2006, the investigators published a report. Criticisms made in this report related to how Unilever had communicated with the preference shareholders but the criticisms did not extend to NVs
decision to convert part of the notional value of the preference shares into ordinary shares. On 8 November 2006 NV announced that it had
    agreed a settlement with the main parties in the legal dispute over the preference
    shares. The settlement includes all former preference shareholders who had
    initiated the inquiry procedure. Unilever has provided €300 million
    in respect of the settlement. Further information is given in note 19 on page
    102. The group of former preference shareholders who had bought their preference shares after 24 March 2004 and who are not entitled to the settlement, have requested the Enterprise Chamber to rule that the report of the
investigators demonstrates mismanagement of NV. They have requested an additional inquiry into the policy and affairs of NV in the period after 24 March 2004. This group of former preference shareholders has also instituted claims with the Rotterdam
District Court for nullification of the NV Boards decision to convert the preference shares and NVs Annual General Meeting decision to cancel the preference shares. The Enterprise Chamber and the Rotterdam District Court have not yet
decided on these claims. On the grounds of NVs alleged attributable
    failure to buy back the preference shares at €6.58, they also claim
    damages in the amount of approximately €81 million, which amount is
    based on the difference between €6.58 and €4.55, the value holders
    of the preference shares received upon conversion for each preference share.
    These claims will be vigorously contested. OtherUnilever has businesses in many
    countries and from time to time these are subject to investigation by competition
    and other regulatory authorities. One such matter concerns ice cream distribution
    in Europe, notably the issues of outlet and cabinet exclusivity. In October
    2003, the Court of First Instance in Luxembourg (CFI) ruled in
    favour of the European Commissions decision banning Unilevers
    Irish ice cream business, HB Ice Cream, from seeking freezer cabinet exclusivity
    for their products in the Irish market. HB Ice Cream submitted an appeal to
    the European Court of Justice in Luxembourg (ECJ) against the
    decision of the CFI. On 28 September 2006 the ECJ dismissed the appeal.Following
    the CFI decision freezer exclusivity in Ireland has not been enforceable from
    October 2003 onwards, in outlets which only have HB freezers. From 2003 Unilever
    Ireland has complied with the Commission decision. With the ECJ judgement
    this position has now become final. Similar consequences may apply in specific
    European markets with equivalent structures to those described in the Commission
    and CFI decisions. There is a




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|About Unilever (continued)
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possibility of claims for damages, in the event of which Unilever will defend its position vigorously. The case between HB Ice Cream and Masterfoods, which has been before the Irish Courts since 1990 and which had been
deferred pending the final determination of the appeal against the Commission decision, has been reopened at the request of Masterfoods. It is noted that in the UK since 2000, when cabinet exclusivity was effectively abandoned following undertakings
given by Unilever to the UK competition authorities, there has not been any material change in Unilevers relevant market share. In 2006 the French competition authorities
    commenced an inquiry into potential competition law infringements in France
    involving a number of consumer goods companies in the home and personal care
    sector, including Unilever France and Lever Faberge France, both subsidiaries
    of the Unilever Group. To date, no statement of objections has been lodged
    against either Unilever France or Lever Faberge France and accordingly the
    potential financial implications, if any, of this investigation for such companies
    cannot yet be assessed. On 8 March 2007 representatives from the
    PortugueseCompetition Authority carried
    out an inspection at the offices of Unilever Jeronimo Martins and such companys
    ice-cream factory in Portugal. The inspection was in relation to impulse ice-cream
    in Portugal. It is the policy of the Unilever Group to comply fully with the
    legal procedures involved in such inspections and any subsequent enquiry.
    It should be noted that no written statement of objections or other allegations
    has been received by Unilever Jeronimo Martins in respect of this matter and
    accordingly the potential financial implications, if any, of this inspection
    for such company cannot yet be assessed. On 14 March 2007 representatives from the
    German Federal Cartel Office carried out an inspection at the offices of Unilever
    Deutschland GmbH in Hamburg. The inspection was in relation to the oral-care
    market in Germany. It is the policy of the Unilever Group to comply fully
    with the legal procedures involved in such inspections and any subsequent
    enquiry. It should be noted that no written statement of objections or other
    allegations has been received by Unilever Deutschland GmbH in respect of this
    matter and accordingly the potential financial implications, if any, of this
    inspection for such company cannot yet be assessed. During 2004 the Federal Supreme Court in
    Brazil (local acronym STF) announced a review of certain cases that it had
    previously decided in favour of taxpayers. Because of this action we established
    a provision in 2004 for the potential repayment of sales tax credits in the
    event that the cases establishing precedents in our favour are reversed. Since
    that time we have continued to monitor the situation and have made reductions
    as appropriate to the amount provided. Also during 2004 in Brazil, and in common
    with many other businesses operating in that country, one of our Brazilian
    subsidiaries received a notice of infringement from the Federal Revenue Service.
    The notice alleges that a 2001 reorganisation of our local corporate structure
    was undertaken without valid business purpose. If upheld, the notice could
    result in a tax claim in respect of prior years. The 2001 reorganisation was
    comparable with that used by many companies in Brazil and we believe that
    the likelihood of a successful challenge by the tax authorities is remote.
    This view is supported by the opinion of outside counsel but there can be
    no guarantee of success on the merits.


Corporate responsibilityWe seek to manage and grow our business around the world in a responsible and sustainable way. The values and standards by which we expect to be judged are set out in our Code of Business Principles. We aim to share these standards and values
    with our suppliers and contractors through our Business Partner Code, which
    sets out standards on ten key points of business integrity, labour standards,
    consumer safety and the environment. The long-term success of our business is
    intimately linked with the vitality of the environment and communities in
    which we operate. Each year we report on our contribution to sustainable development.
    This is available online at the Environment & Society section of www.unilever.com.
    Our report describes how we are working in partnership to address issues such
    as poor nutrition and hygiene, how we continue to work on reducing our environmental
    impacts, and our contributions of €78
    million to communities. The strength of our commitment to sustainable development
    is reflected in our leadership of the food industry category of the Dow Jones
    Sustainability Indexes for the eighth year running. In our Operating review on pages13
    to 22 we give a glimpse of the ways in which our brands are addressing consumers
    social and environmental concerns. Risk managementThe
following discussion about risk management activities includes forward-looking statements that involve risk and uncertainties. The actual results could differ materially from those projected. See the
Cautionary Statement on the inside back cover. Unilevers system of risk management
    is outlined on page66. Responsibility
    for establishing a coherent framework for the Group to manage risk resides
    with the Boards. The remit of the Boards is outlined on page 34. Particular risks and uncertainties that could
    cause actual results to vary from those described in forward-looking statements
    within this document, or which could impact on our ability to meet our published
    targets, have been identified. In this context the following specific risks
    have been identified as areas of focus in 2007. Sales and profit growthThe increasingly competitive environment,
    the further consolidation in the marketplace and continued growth of discounters
    could adversely impact our rate of sales growth and our profit margins. In
    the light of this, we will continue to invest in selected brands and high
    growth market areas to ensure that we deliver profitable sales growth. Our
    continued sales and profit growth depends in large part on our ability to
    generate and implement a stream of consumer-relevant improvements to our products.
    The contribution of innovation is affected by the level of funding that can
    be made available, the technical capability of the research and development
    functions, and the success of operating management in rolling out quickly
    the resulting improvements. Our focus will continue to be on developing our
    brands in ways that are distinctive and are relevant for our customers.




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|About Unilever (continued)
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|                          



We have a number of large global brands, including 12 with an annual turnover greater than €1 billion, which often depend on global or regional development and supply chains. Any adverse event affecting consumer
confidence or continuity of supply of such a brand could have an impact in many markets. The carrying value of intangible assets associated with our brands is significant, and depends on the future success of those brands. There remains a risk that
events affecting one or more of our global brands could potentially impair the value of those brands. As the retail market place through which
    our products are distributed continues to evolve, our growth and profitability
    can be threatened if we do not adapt our strategies and enhance our operational
    capabilities. It is important that we continue to build and deepen relationships
    with our customers. Plans to raise our effectiveness in the trade, where necessary,
    receive increasing attention at all levels. Change initiativesThe continuing restructuring of
    the business which is designed to simplify our operations and leverage our
    scale more effectively, includes outsourcing back office support operations
    and converging regional processes and systems, and requires continuing close
    management attention in 2007. Building on the experiences of 2006, we will
    continue to manage the risks in this area diligently and ensure that there
    are clear action plans to mitigate them. Key to this is the establishment
    and maintenance of project management processes to monitor progress against
    milestones and targets together with appropriate communication programmes. PeopleUnilevers performance targets
    require it to have the right calibre of people at all levels. We must compete
    to obtain capable recruits for the business, and then train them in the skills
    and competencies that we need to deliver profitable growth. At a time of substantial
    change in the business there is a particular focus on creating alignment and
    energetic leadership, evidenced by the senior leadership programme that was
    launched in 2006. Corporate reputationUnilever has created a strong
    corporate reputation over many years and many of our businesses have a high
    local profile. This reputation is underpinned by ensuring that all employees
    embrace the principles prescribed in our Code of Business Principles.Unilever
    products carrying our well-known brand names are sold in over 100 countries.
    Should we fail to meet high product safety, social, environmental and ethical
    standards in all our operations and activities, Unilevers corporate
    reputation could be damaged, leading to the rejection of our products by consumers,
    damage to our brands and diversion of management time into rebuilding our
    reputation. Potential economic instabilityAround 40% of Unilevers
    turnover comes from the developing and emerging economies. We have long experience
    in these markets, which are also an important source of our growth. These
    economies are typically more volatile than those in the developed


world, and there is a risk of downturns in
    consumer demand that would reduce the sales of our products. We will continue
    to monitor closely performance in the most volatile markets and respond quickly
    to protect our business. In cases of extreme social disruption, protecting
    our people is always the priority. Price and supply of raw materials and
    commodities contractsPrices of raw materials and commodities
    increased significantly throughout 2006, adversely impacting margin where
    we were unable to pass on increased costs. To mitigate such risks, and where
    appropriate, we purchase forward contracts for raw materials and commodities,
    almost always for physical delivery. Where appropriate we also use futures
    contracts to hedge future price movements; however, the amounts are not material. Insurance of risksAs a multinational group with
    diverse product offerings and operations in more than 100 countries, Unilever
    is subject to varying degrees of risk and uncertainty. It does not take out
    insurance against all risks and retains a significant element of exposure
    to those risks against which it does insure. However, it insures its business
    assets in each country against insurable risks as it deems appropriate. Financial risksIn addition to the above, Unilever
    is exposed to various specific risks in connection with its financial operations
    and results. These include the following: •
    The impact of movement in equity markets, interest rates and life expectancy on net pension liabilities;•
      Maintenance of group cash flows at an
        appropriate level;•
      Exposure of debt and cash positions
        to changes in interest rates;•
    Potential impact of changes in exchange rates on
    the Groups earnings and on the translation of its underlying net assets;•
      Liquidity and counterparty risks; and•
    Risks associated with the holding of our own shares in connection with share-based remuneration schemes. Further information about these, including
    sensitivity analysis to changes in certain of the key measures, is given in
    note 17 on pages100 and 101 and note
    20 on page 105. Other risksUnilevers businesses are
    exposed to varying degrees of risk and uncertainty related to other factors
    including competitive pricing, consumption levels, physical risks, legislative,
    fiscal, tax and regulatory developments, terrorism and economic, political,
    and social conditions in the environments where we operate. All of these risks
    could materially affect the Groups business, our turnover, operating
    profit, net profit, net assets and liquidity. There may be risks which are
    unknown to Unilever or which are currently believed to be immaterial.




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|Group Chief Executive
|---------------------
|                     



We are grateful to those shareholders and other
  stakeholders who responded to our invitation on the Unilever website to post
  questions for Patrick Cescau. A number of their questions are reflected in
  the Q&A
below. How do you look back on 2006?We are on a journey to
    restore Unilevers competitiveness and growth potential. That journey
    is ongoing but I think we can look back on 2006 with some pride and satisfaction. The improving top-line performance recorded
    during the year suggests that the wide-ranging changes we made to the business
    in 2004 and 2005  both to our organisation and to our strategy 
    were the right ones for Unilever. They are putting us firmly on the road to
    sustained growth. I also believe that we will look back on
    2006 as the year when the business regained its confidence and self-belief
    after the setbacks of recent years. There is a new energy and optimism flowing
    through the Group. What pleased you most about the Groups
performance
last year?The quality and the broad-based
    nature of our growth. All parts of the business  all regions and all
    categories  contributed to healthy underlying sales growth of 3.8% .
    Our cash flow position in 2006 was also strong, and it was a sign of the growing
    financial health of the business that we were able to return an additional
    €750 million to shareholders in the form of a one-off dividend. Our performance was particularly strong in
    those areas we had identified as growth priorities and where we had invested
    accordingly  for example, in developing and emerging markets (D&E)
    and in our personal care business, which grew by an impressive 6.3% . This
    is particularly pleasing and encouraging because it suggests the strategy
    we are following  investing heavily in order to obtain leadership positions
    in high growth areas  is the right one to take us forward. I would also highlight our performance in
    Europe, which has been a tough market for us in recent years. Last year we
    re-doubled our efforts and this was rewarded in steadily improving results
    and a return to modest growth levels. Were there any areas where you had hoped to make greater progress during 2006?Restoring Unilevers
    competitiveness has involved making a lot of changes to the business. In order
    to deliver sustained growth and create value for shareholders, we have reformed
    our governance, overhauled our organisation and put in place a whole new strategy
    to take the business forward.


Inevitably, changes on this scale are going
    to proceed at differing speeds. Overall I am satisfied with where we are at
    this stage in the transformation of the Group. Equally, I know that we have
    some challenges ahead, in particular delivering more profitable growth. While
    our operating margin in 2006 was satisfactory, we must strive for a better
    performance in the year ahead. We werent helped in 2006 by higher than
    expected costs resulting from sharp increases in commodity prices, but that
    has merely served to highlight the importance of the measures we are taking
    to simplify our business and to squeeze out unnecessary costs. Since becoming Group Chief Executive
you have embarked on a significant programme of organisational change and restructuring.
Do you
feel that you now have the right organisation in place to drive Unilevers
growth?It is the nature of things
    today that you have to keep the workings of any organisation under constant
    review. As a business, that is the only way to ensure you are best serving
    the interests of shareholders and other stakeholders. But yes, I do believe
    we are well advanced with the organisational changes needed to support the
    next stage of our development. Indeed, we are already deriving significant
    benefits from the changes we have made, not least from our more streamlined
    governance and management structures. Furthermore, our One Unilever
    programme continues to deliver both greater clarity and significant savings
    as it is steadily rolled out across the whole business. These are all helping
    to deliver the speed and the scale we need to compete more effectively and
    could be seen reflected last year in more global brand platforms, the faster
    roll-out of products and the launch of bigger and better innovations. But we are not complacent. We know that we
    will have to quicken the pace of change even further in the year ahead if
    we are to meet our goal of moving from competing to winning in the marketplace. You have put the concept of Vitality at the heart of the Groups
mission. What evidence is there that it has had a direct impact on performance
in 2006?Vitality is about directing
    our business towards the increasing desire and emphasis on the part of consumers
    the world over to feel good, look good and to get more out of life. As a business
    whose brands deliver health, hygiene and nutritional benefits, we are perhaps
    uniquely well placed to respond to these evolving consumer trends. To that end, Vitality is already directly
    impacting our performance. It is a key element in guiding us to those high
    growth spaces we now regard as critical to Unilevers long-term success.
    It is also perhaps the single biggest factor driving our innovation programme.
    The successful launch in the UK last year of AdeZ a soya-based
    fruit drink  is a good example, one that can be traced directly to our
    Vitality mission and our determination to continue developing products with
    proven nutritional benefits.




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|Group Chief Executive (continued)
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What did you mean when you said last year that the successful brands of the future would be those that not only satisfied consumers functional needs, but also addressed their concerns as
citizens?We have always believed that the
    health and prosperity of our business is linked to the health of the communities
    we serve, which is why we contributed €78 million to communities last
    year. However, we also know that consumers increasingly expect companies and
    brands to play a role in responding to their concerns as citizens around issues
    such as climate change, or helping to address poor nutrition and disease in
    some of the most impoverished parts of the world. Working in partnership with governments,
    international agencies and NGOs is often the most effective way to help address
    these major global threats, and Unilever has already embarked on a number
    of such partnerships, including for example with UNICEF and with the United
    Nations World Food Programme. However, individual brands can and do make
    a difference. The remarkable success of Surf Excelin India, for example,
    which is helping to reduce the amount of water used in laundry in some of
    the countrys most water-stressed regions, is a good case in point. So
    is our success in combating iodine deficiency in parts of Africa through our
    iodised salt brand Annapurna. These and other initiatives demonstrate
    that it is possible to do good and do well, and they have convinced us that
    this is the right direction for Unilever to take. How do you intend to position
    Unilever so that it can benefit most from the huge rise in markets like China
    and India?There is no doubt that the most
    significant growth opportunities for Unilever lie in the D&E economies,
    and not just in China and India. Already, D&E markets account for more
    than 40% of Unilevers turnover and that proportion is set to go on rising. Our history in these countries, going back
    to the very origins of the Group, combined with our existing scale and reach
    across much of the developing world, means we are very well positioned to
    benefit from the shifts taking place in the global economy. Our performance
    in 2006 certainly gives grounds for optimism. Last year, we grew by nearly
    8% in D&E markets. That included some spectacular performances, not least
    in China where growth of nearly 30% was powered directly by the changes we
    are making to the business.


Unilevers first
    independent Non-Executive Chairman takes up position in May. What are your
    expectations?I think it marks a significant
    stage in the life of the Group. It is the latest in a series of important
    governance reforms that are bringing us into line with best corporate practice.
    At the personal level, I am very much looking forward to working with Michael
    Treschow, who brings a wealth of relevant experience to bear. We are all excited
    by his appointment. At the same time, I would like to thank Antony Burgmans,
    our current Chairman, for his significant contribution to Unilever over the
    last 35 years. I would also like to thank two members of the Unilever Executive
    who have also made a significant contribution to Unilever over a long period
    who will leave us in 2007  Rudy Markham and John Rice. What are your ambitions
    for Unilever as you look ahead to 2007 and beyond and what do you think will
    present the biggest challenges?We have made clear that our long-term
    ambition is to be among the top third of our peer group in terms of total
    shareholder return (TSR). That is a stretching but achievable goal. In 2007
    our aim is to continue delivering sustained underlying sales growth while
    at the same time improving our operating margin. We are all focused on that
    task. One of the other key challenges we face in
    2007 will be to ensure that we obtain an even greater return on the significant
    investment we have made in upgrading our skills and capabilities in those
    areas identified as critical to the long-term success of the business 
    marketing, customer management, and research and development. We have made
    enormous strides in each of these areas in recent years, but really have the
    opportunity now in 2007 to accelerate the level of performance.




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| | Report
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|Operating review by region
|--------------------------
|                          



Basis of reportingIn this Operating review we comment on our changes in revenue on the basis of underlying sales growth (USG). This measure reflects the change in revenue at constant rates of exchange, (average exchange rates for the
preceding year) excluding the effects of acquisitions and disposals. It is a measure that provides valuable additional information on the underlying performance of the business. In particular, it presents the organic growth of our business year on
year and is used internally as a core measure of sales performance. USG is not a measure which is defined under
    either IFRS or US GAAP. It should not be considered in isolation from, or
    as a substitute for, financial information presented in compliance with either
    IFRS or US GAAP. This measure as reported by us may not be comparable with
    similarly titled measures reported by other companies. The reconciliation of USG to turnover for
    each of our reporting regions is given in the following section, and for the
    Group in total on page25. The reporting in this section is based on
    results for continuing operations. Following the disposal of the majority
    of our European frozen foods businesses during 2006, the operations which
    we classify under this heading are different from those which were included
    as continuing operations in our Report and Accounts 2005.




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|Operating review by region Europe
|---------------------------------
|                                 



Europe

|Turnover(€ million)Continuing
operations |  | Operating profit(€ million)Continuing
    operations |  | Operating margin(%)Continuing
    operations
|---------------------------------------- |  | ---------------------------------------------------- |  | --------------------------------------------
|                                         |  |                                                      |  |                                             
|                                         |  |                                                      |  |                                             

|                                           |           |    |           |    |           |    |                           |    |                            |    |         |    |         |   
|------------------------------------------ | --------- | -- | --------- | -- | --------- | -- | ------------------------- | -- | -------------------------- | -- | ------- | -- | ------- | --
|                                           |           |    |           |    |           |    |                           |    |                            |    |         |    |         |   
|                                           |           |    |           |    |           |    |                           |    |                            |   
|                                           |           |    |           |    |           |    |                           |    |                            |   
|                                           | € million |    | € million |    | € million |    | Year on year change       |    | Year on year change        |   
|                                           |           |    |           |    |           |    | at current exchange rates |    | at constant exchange rates |   
|Continuing operations                      |           |    |           |    |           |    | 2006                      |    | 2005                       |    | 2006    |    | 2005    |   
|at current rates of exchange               | 2006      |    | 2005      |    | 2004      |    | vs 2005                   |    | vs 2004                    |    | vs 2005 |    | vs 2004 |   
|                                           |           |    |           |    |           |    |                           |    |                            |    |         |    |         |   
|Turnover                                   | 15 000    |    | 14 940    |    | 15 252    |    | 0.4                       | %  | (2.0                       | )% | 0.2     | %  | (2.4    | )%
|Operating profit                           | 1 903     |    | 2 064     |    | 2 045     |    | (7.7                      | )% | 0.8                        | %  | (7.9    | )% | 0.6     | % 
|Operating margin                           | 12.7      | %  | 13.8      | %  | 13.4      | %  |                           |    |                            |    |         |    |         |   
|Restructuring, business disposals,         |           |    |           |    |           |    |                           |    |                            |    |         |    |         |   
|impairment charges and one-time gain on UK |           |    |           |    |           |    |                           |    |                            |    |         |    |         |   
|pension plans included in operating margin | (1.4      | )% | (0.9      | )% | (2.7      | )% |                           |    |                            |    |         |    |         |   
|                                           |           |    |           |    |           |    |                           |    |                            |    |         |    |         |   

|                                     | 2006    |   | 2005    |   |  |  |  |  |  |  |  |  |  | 
|------------------------------------ | ------- | - | ------- | - |  |  |  |  |  |  |  |  |  | 
|Turnover and underlying sales growth | vs 2005 |   | vs 2004 |   |  |  |  |  |  |  |  |  |  | 
|                                     |         |   |         |   |  |  |  |  |  |  |  |  |  | 
|Underlying sales growth (%)          | 1.0     |   | (0.4    | ) |  |  |  |  |  |  |  |  |  | 
|Effect of acquisitions (%)           | 0.1     |   | 0.0     |   |  |  |  |  |  |  |  |  |  | 
|Effect of disposals (%)              | (0.9    | ) | (2.1    | ) |  |  |  |  |  |  |  |  |  | 
|Effect of exchange rates (%)         | 0.2     |   | 0.4     |   |  |  |  |  |  |  |  |  |  | 
|Turnover growth (%)                  | 0.4     |   | (2.0    | ) |  |  |  |  |  |  |  |  |  | 
|                                     |         |   |         |   |  |  |  |  |  |  |  |  |  | 

|2006 compared
    with 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Turnover at current rates of exchange
      rose by 0.4%, after the impact of acquisitions, disposals and exchange rate
      changes as set out in the table above. Operating profit at current rates
      of exchange fell by 7.7%, after including a favourable currency movement
      of 0.2% . The underlying performance of the business after eliminating these
      exchange translation effects and the impact of acquisitions and disposals
    is discussed below at constant exchange rates.
    We have done much work in Europe to
        make our business more competitive. In particular there has been a single-minded
        drive to improve the value we offer consumers, plus a strong innovation
        programme targeted at the core of our portfolio. Simultaneously, the
        implementation of our One Unilever programme, the building
        of capabilities and changes in leadership are all resulting in better
      execution.
    These differences, combined with improved
        consumer demand, returned the region to modest growth. Underlying sales
        grew by 1% in the year  entirely from volume. Market shares were
        broadly stable with gains in ice cream, soups, deodorants and body care.
      However, there were losses in laundry, hair care and tea.
    The UK, our largest European business,
        returned to growth in the year with good results across most Foods and
        personal care ranges. Although laundry sales declined, there have been
        promising signs of progress in recent
market shares with Persilregaining its position as the countrys
leading laundry brand.
    The Netherlands had a strong year. A
        pioneer of One Unilever, it benefited from operating as a
    single company. Highlights were rapid growth for Lipton, Dove, Rexonaand Axe. |  | France remained a difficult
          market with sales lower in spreads, laundry and hair care. New management
          is now in place and there was an improvement in the second half of
          the year.
    Sales in Germany held up better in 2006.
        There was good growth for personal care brands but some turnover in Liptonice
      tea was lost following changes in rules for bottle returns.
    Central and Eastern Europe continued
      to do well, driven by double-digit growth in Russia.
    The sale of the majority of our European
        frozen foods businesses to Permira was successfully completed during
      the year.
    Our 2006 innovation programmes have
        resulted in our Foods brands wholeheartedly embracing the concept of
        Vitality, with new products designed to deliver the health benefits that
        consumers seek. Rama/Blue Band Idea! spreads with added
        nutrients which are beneficial to childrens mental development  was
        launched in 2006 and is being rapidly rolled out in 2007. Throughout
        2007 cause-related promotional activities associated with these brands
        will support the United Nations World Food Programme, improving awareness
      of child hunger and raising funds to alleviate it.
    A range of Knorrbouillon cubes
        with selected natural ingredients and a better, richer taste has been
        rolled out across the region,
while Vieone-shot fruit and vegetable products are now available in 12
countries. Meanwhile, Latin Americas AdeSdrink, a healthy blend
of fruit juices and soya, has been launched successfully in the UK as AdeZ.



|14 | UnileverAnnual Report on Form 20-F 2006
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| |                                              
| | ---------------------------------------------
| | Report
          of the Directors (continued)
| |                                              

|Operating review by region Europe (continued)
|---------------------------------------------
|                                             



|2006
        compared with 2005 (continued)Product launches with
        clear functional or emotional benefits in Home and Personal Care brands
        are being rolled out rapidly across the region. A range of newDovelaunches included the moisturising
        self-tan Dove Summer Glow. Meanwhile in household care, Domestos
        5xcontinues to kill germs even after several flushes and the cleaning
        power of Cifhas been applied to a series of power sprays.
      The operating margin, at 12.7%, was
        1.1 percentage points lower than a year ago, with higher net costs for
        restructuring, disposals and impairments, partially offset by a one-time
        gain of €120 million from changes to the UK pensions plan. Before
        these items, the operating margin would have been 0.6 percentage points
        lower than in 2005. Margins in Foods were lower than in 2005 as we absorbed
        significant increases in commodity costs which were only partly compensated
        by savings programmes.
      2005 compared with
        2004Turnover at current rates
        of exchange fell by 2.0%, mainly due to disposals, and including a positive
        impact from currency movements of 0.4% . Operating profit at current rates
        of exchange rose by 0.8%, including a favourable effect of currency movements
        of 0.2% . The underlying performance of the business after eliminating
        these exchange translation effects and the impact of acquisitions and
        disposals is discussed below at constant exchange rates.
      Our priority in Europe was to regain
        momentum and improve competitiveness. The focus was on enhancing the value
        to consumers of our products through keener pricing, improved quality
        and more and better innovation.
      Marketing support was raised to a more
        competitive level with additional spend deployed against our best opportunities,
        and the organisation was streamlined. |  | We made
        progress during the year. Volume was slightly positive, but investment
        in pricing meant that underlying sales declined by 0.4% in the year.
      Central and Eastern Europe performed
        well in buoyant markets, notably in Russia which was ahead by nearly 20%.
      Western Europe was challenging, with
        continued weak consumer demand. Our businesses grew in the Netherlands
        and Spain, but declined in France, Germany and 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.
      New product launches in 2005 included
        Knorr Viemini shots, extensions of the Becel/Flora pro·activheart health range, soups fortified with vitamins and low-fat soups.
      We introduced a Rexona Sportvariant
        in deodorants, Axeshower gel and Sunsilkhair styling products.
        We further improved our home care product range with launches that address
        specific consumer needs, such as no-need-to-pre-treat laundry
        detergents, Sun4-in-1 dishwash and Domestossink and drain
        unblocker.
      The operating margin, at 13.8%, was
        0.4 percentage points higher than in 2004. 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 0.9% were 1.8 percentage points lower than in 2004.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|UnileverAnnual Report on Form 20-F 2006 | 15
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|                                              | 
|--------------------------------------------- | 
|Report
          of the Directors (continued) | 
|                                              | 

|Operating review by region The Americas
|---------------------------------------
|                                       



The Americas

|Turnover(€ million)
Continuing
operations |  | Operating profit(€ million)Continuing
    operations |  | Operating margin(%)Continuing
    operations
|----------------------------------------- |  | ---------------------------------------------------- |  | --------------------------------------------
|                                          |  |                                                      |  |                                             
|                                          |  |                                                      |  |                                             

|                                                      |           |   |           |    |           |    |                           |   |                            |   |         |   |         |  
|----------------------------------------------------- | --------- | - | --------- | -- | --------- | -- | ------------------------- | - | -------------------------- | - | ------- | - | ------- | -
|                                                      |           |   |           |    |           |    |                           |   |                            |   |         |   |         |  
|                                                      |           |   |           |    |           |    |                           |   |                            |  
|                                                      |           |   |           |    |           |    |                           |   |                            |  
|                                                      | € million |   | € million |    | € million |    | Year on year change       |   | Year on year change        |  
|                                                      |           |   |           |    |           |    | at current exchange rates |   | at constant exchange rates |  
|Continuing operations                                 |           |   |           |    |           |    | 2006                      |   | 2005                       |   | 2006    |   | 2005    |  
|at current
        rates of exchange                  | 2006      |   | 2005      |    | 2004      |    | vs 2005                   |   | vs 2004                    |   | vs 2005 |   | vs 2004 |  
|                                                      |           |   |           |    |           |    |                           |   |                            |   |         |   |         |  
|Turnover                                              | 13 779    |   | 13 179    |    | 12 296    |    | 4.6                       | % | 7.2                        | % | 3.1     | % | 3.4     | %
|Operating profit                                      | 2 178     |   | 1 719     |    | 896       |    | 26.7                      | % | 91.9                       | % | 25.0    | % | 83.6    | %
|Operating margin                                      | 15.8      | % | 13.0      | %  | 7.3       | %  |                           |   |                            |   |         |   |         |  
|Restructuring, business disposals,                    |           |   |           |    |           |    |                           |   |                            |   |         |   |         |  
|impairment charges and one-time
        gain on US    |           |   |           |    |           |    |                           |   |                            |   |         |   |         |  
|healthcare plans included in
        operating margin | 0.0       | % | (3.4      | )% | (9.2      | )% |                           |   |                            |   |         |   |         |  
|                                                      |           |   |           |    |           |    |                           |   |                            |   |         |   |         |  

|                                     | 2006    |   | 2005    |   |  |  |  |  |  |  |  |  |  | 
|------------------------------------ | ------- | - | ------- | - |  |  |  |  |  |  |  |  |  | 
|Turnover and underlying sales growth | vs 2005 |   | vs 2004 |   |  |  |  |  |  |  |  |  |  | 
|                                     |         |   |         |   |  |  |  |  |  |  |  |  |  | 
|Underlying sales growth (%)          | 3.7     |   | 4.1     |   |  |  |  |  |  |  |  |  |  | 
|Effect of acquisitions (%)           | 0.1     |   | 0.0     |   |  |  |  |  |  |  |  |  |  | 
|Effect of disposals (%)              | (0.7    | ) | (0.7    | ) |  |  |  |  |  |  |  |  |  | 
|Effect of exchange rates (%)         | 1.4     |   | 3.6     |   |  |  |  |  |  |  |  |  |  | 
|Turnover growth (%)                  | 4.6     |   | 7.2     |   |  |  |  |  |  |  |  |  |  | 
|                                     |         |   |         |   |  |  |  |  |  |  |  |  |  | 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2006 compared
    with 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Turnover at current rates of exchange
          rose by 4.6%, after the impact of acquisitions, disposals and exchange
          rate changes as set out in the table above. Operating profit at current
          rates of exchange rose by 26.7%, after including a favourable currency
          movement of 1.4% . The underlying performance of the business after
          eliminating these exchange translation effects and the impact of acquisitions
          and disposals is discussed below at constant exchange rates.
    Overall, we have maintained share in
        the US in markets which are growing at around 3%. Underlying sales growth
        in the US was 2.4%, partly reflecting the effect of trade de-stocking
        in personal care brands during the first half of the year and in ice
        cream in the second half. Degree, Doveand Axe our
        three main deodorants brands  all gained share. The launch of Sunsilkdrove
        growth in haircare. In laundry we initiated the move to concentrated
      liquids but have lost further share in conventional detergents.
    Bertollifrozen
          meals, Lipton ready-to-drink tea, in our joint venture with Pepsi,
          and Slim•Fastall gained share in the US with the latter
          making weight loss accessible, affordable and achievable for consumers
          everywhere. Our share for the year as a whole was also up in ice cream,
          although sales were down. The sector has been heavily promoted in recent
          years but in 2006 the level of promotional intensity reduced. As a
          result, the trade used up stocks and bought
less.
    Sales in Brazil picked up well after
        a slow start, with very good innovation-driven performances in hair,
        deodorants and laundry. Indeed, Omos brand share was at
    its highest level for many years. |  | Sales in Mexico were lower for the
          year, affected by a combination of a decline in the traditional retail
          trade and local low-priced competition. In addition, there were several
          operational issues which have since been addressed. The business returned
          to growth in the fourth quarter. Elsewhere there was good growth in
          Argentina, Central America and Venezuela. Taken together, sales in
          Latin America were ahead by 5.8% with Home and Personal Care brands
          continuing to do well. However, there was more modest growth in Foods
          brands due to tough local competition.
    New products introduced in the US included Wish-Bone
          Salad Spritzerswith one calorie per spray, further development
          of the Bertollipremium frozen meal range, and Liptonpyramid
          tea bags. Across the region,
new Knorrsoups and bouillons cater for local tastes. The highly successful AdeSnutritional
drink has been extended with a light variant, new fruit flavours
and the launch of soymilk in Brazil and Mexico.
    We strengthened our hair portfolio with
        the launch of Sunsilk, improved both the Suaveand Dovehaircare
        lines and sold the Aquanet and Finesse brands. We had a good sales response
        to all Small & Mightyconcentrated liquid detergents. These
        use reduced-size packaging to save water, cardboard and energy use in
        production, packaging and transport. They are also easier for consumers
        to carry, pour and store. We then applied all Small & Mightys
        product technology to fabric conditioners, creating Snuggle Exhilarations a
        three-times more concentrated premium sub-range delivering superior fragrance.
        In Brazil, Omohas been further strengthened with a new top-performance
      product including baby and foam control variants.



|16 | UnileverAnnual Report on Form 20-F 2006
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| |                                              
| | ---------------------------------------------
| | Report
          of the Directors (continued)
| |                                              

|Operating review by region The
    Americas (continued)
|-------------------------------------------------------
|                                                       



|2006 compared
            with 2005 (continued)The operating margin,
            at 15.8%, was 2.8 percentage points higher than a year ago. There
            were lower
      costs for restructuring, disposals and impairments, and a one-time benefit
      in 2006 of €146 million from changes to US healthcare plans. In 2005
      there was a gain on the sale of an office. Before these items the operating
      margin would have been 0.3 percentage points lower than last year. Innovation-driven
      marketing mix, pricing and productivity offset high commodity costs. Advertising
      and promotions were increased to support major
  brand launches.
    2005 compared with
          2004Turnover at current rates of exchange
rose by 7.2%, including a positive impact from currency movements of 3.6% . Operating
profit at current rates of exchange was 92% higher than in 2004, including a
favourable impact from currency movements of 8.3% . The underlying performance
of the business after eliminating these exchange translation effects and the
impact of disposals is discussed below at constant exchange rates.
    Underlying sales grew by 4%, all coming
        from volume gains, broadly based across the region, underpinned by a
      successful innovation programme.
    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
        was driven by good consumer response to our initiatives, including Vitality
        innovation and consistent support. This was 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 Doveand Rexonabrands. |  | 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
          Crockand Bertollibrands into new categories, and from Liptonready-to-drink
          and speciality teas. Slim•Fastcontinued 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 Moisturerange and the extension of Axeinto
        male shower gels. In Latin America our brands were also very successful
        in connecting with younger consumers through Rexona teensand
      innovative communication for Axe.
    In the US we introduced all Small & Mighty laundry detergent, offering the convenience of the same cleaning
          power in a smaller bottle. We invested in communication of our Omolaundry
          brands, under the Dirt is Good campaign in southern Latin
      America.
    In Foods, we strengthened the Vitality
        credentials of our brands in the US with Promiseheart health
        spread, Ragúorganic and support for the anti-oxidant properties
        of Liptonteas. AdeScontinued to build across Latin America
      with the distinctive nutrition benefits of soy with fruit.
    The operating margin at current rates
        of exchange 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 healthcare
        plans and from currency effects on capital
reductions.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|UnileverAnnual Report on Form 20-F 2006 | 17
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|                                              | 
|--------------------------------------------- | 
|Report
          of the Directors (continued) | 
|                                              | 

|Operating review by region Asia
    Africa
|------------------------------------------
|                                          



Asia Africa

|Turnover(€ million)Continuing operations |  | Operating profit(€ million)Continuing
      operations |  | Operating margin(%)
      Continuing operations
|---------------------------------------- |  | ------------------------------------------------------ |  | -----------------------------------------------
|                                         |  |                                                        |  |                                                
|                                         |  |                                                        |  |                                                

|                                      |           |    |           |   |           |    |                           |   |                            |  
|------------------------------------- | --------- | -- | --------- | - | --------- | -- | ------------------------- | - | -------------------------- | -
|                                      |           |    |           |   |           |    |                           |   |                            |  
|                                      |           |    |           |   |           |    |                           |   |                            |  
|                                      |           |    |           |   |           |    |                           |   |                            |  
|                                      | € million |    | € million |   | € million |    | Year on year change       |   | Year on year change        |  
|                                      |           |    |           |   |           |    | at current exchange rates |   | at constant exchange rates |  
|Continuing operations                 |           |    |           |   |           |    | 2006                      |   | 2005                       |  
|at current rates of exchange          | 2006      |    | 2005      |   | 2004      |    | vs 2005                   |   | vs 2004                    |  
|                                      |           |    |           |   |           |    |                           |   |                            |  
|Turnover                              | 10 863    |    | 10 282    |   | 9 620     |    | 5.7                       | % | 6.9                        | %
|Operating profit                      | 1 327     |    | 1 291     |   | 1 040     |    | 2.8                       | % | 24.1                       | %
|Operating margin                      | 12.2      | %  | 12.6      | % | 10.8      | %  |                           |   |                            |  
|Restructuring, business disposals and |           |    |           |   |           |    |                           |   |                            |  
|impairment charges included in        |           |    |           |   |           |    |                           |   |                            |  
|operating margin                      | (0.3      | )% | 0.0       | % | (2.9      | )% |                           |   |                            |  
|                                      |           |    |           |   |           |    |                           |   |                            |  

|                                     | 2006    |   | 2005    |   |  |  |  |  |  |  |  |  |  | 
|------------------------------------ | ------- | - | ------- | - |  |  |  |  |  |  |  |  |  | 
|Turnover and underlying sales growth | vs 2005 |   | vs 2004 |   |  |  |  |  |  |  |  |  |  | 
|                                     |         |   |         |   |  |  |  |  |  |  |  |  |  | 
|Underlying sales growth (%)          | 7.7     |   | 8.7     |   |  |  |  |  |  |  |  |  |  | 
|Effect of acquisitions (%)           | 0.0     |   | 0.0     |   |  |  |  |  |  |  |  |  |  | 
|Effect of disposals (%)              | (0.8    | ) | (1.6    | ) |  |  |  |  |  |  |  |  |  | 
|Effect of exchange rates (%)         | (1.1    | ) | 0.0     |   |  |  |  |  |  |  |  |  |  | 
|Turnover growth (%)                  | 5.7     |   | 6.9     |   |  |  |  |  |  |  |  |  |  | 
|                                     |         |   |         |   |  |  |  |  |  |  |  |  |  | 

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2006 compared with
    2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Turnover at current rates of exchange
          rose by 5.7%, after the impact of acquisitions, disposals and exchange
          rate changes as set out in the table above. Operating profit at current
          rates of exchange rose by 2.8%, after including an adverse currency movement
          of 1.2% . The underlying performance of the business after eliminating
          these exchange translation effects and the impact of acquisitions and
    disposals is discussed below at constant exchange rates.
    Markets remained buoyant in most of
        the key countries though there was a slowdown in consumer spending in
        Thailand. Underlying sales growth of 7.7% was broadly based and our aggregate
      market shares remained stable.
    India grew well across major sectors.
        A mix of global, regional and local brands is driving growth, notably Wheeland Surf
        Excelin laundry, and Clinicin haircare. A second year of
        excellent growth in China, stemmed from a combination of market growth,
        better distribution and innovations behind global brands such as Omo,
        Luxand Ponds, as well as the local toothpaste brand, Zhonghua.
        Indeed, Unilever Oral Care and Zhonghuaexhibited at the FDI World
        Dental Federation Congress in China to showcase Live, Learn, Laugh  Unilevers
      global partnership with the Federation to improve oral health globally.
    Indonesia sustained good momentum, not
        only in the large Home and Personal Care ranges but also in Foods as
        a result of strong performances in ice cream and savoury. Thailand had
        a disappointing year through weak demand and intense competition. A major
    programme of activities is under way to correct this. |  | Australia experienced
          a much improved performance with share gains in a number of areas.
          In Japan, Lux Super Rich the leading brand  performed
          well despite the launch of a competitors major brand. However, Doveand Modslost
          share.
    Savoury, ice cream, laundry and household
        care brands were the main drivers of strong growth in Turkey, while sales
      in Arabia were well ahead.
    In South Africa, aggressive price promotions
        by a local competitor have reduced laundry sales, but there were strong
      growth and share gains in Foods.
    Innovation is increasingly being driven
        globally and regionally, rather than locally. The new Sunsilkrange
        has been introduced in most major markets and in laundry, the Dirt is
        Good positioning is now in place across the region. Ponds Age
        Miracle, incorporating unique technology and designed specifically
        for Asian skin, has been launched in four countries. Meanwhile the latest
        global Axe/Lynxfragrance, Click, has been introduced in
      Australia and New Zealand.
    As in the rest of the world, the
          Foods innovation programme focused on Vitality. Moo, a wholesome
          childrens ice cream range based on the goodness of milk, has
          been very well received by mothers and children alike and has proven
          a real success story in South East Asia. Healthy green tea innovations
          are being rolled out extensively, while in South Africa marketing for Ramamargarine
    now communicates the products healthy oils.Addressing
    the needs of lower income consumers, low-priced Knorrstock cubes  already
    successful in Latin America  were
also introduced in the region.



|18 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

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| |                                         
| | ----------------------------------------
| | Report of
      the Directors(continued)
| |                                         

|Operating review by region Asia
          Africa (continued)
|------------------------------------------------------------
|                                                            



2006 compared with 2005(continued)The operating margin at 12.2% was
    0.4 percentage points lower than a year ago. Before the impact of restructuring,
    disposals and impairments, the operating margin would have been in line with
    last year. The benefits to margin of strong volume growth and savings programmes
    were fully offset by higher commodity costs and other cost inflation which
    could not be fully recovered in pricing. 2005 compared with 2004Turnover at current rates of exchange rose by 6.9%, with no net impact from currency movements. Operating profit at current rates of exchange was 24% higher than in 2004, after allowing for an adverse impact from
currency movements of 0.6% . The underlying performance of the business after eliminating these exchange translation effects and the impact of disposals is discussed below at constant exchange rates. We capitalised on our leading positions and
    buoyant consumer demand across most of the region, growing underlying sales
    by nearly 9%, in a competitive environment, and increasing market share in
    key battlegrounds. 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, South Africa, 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 selectively to
    recover increased commodity costs, especially in home care. Growth was underpinned by a range of innovations.
    In skin care in India, Luxwas strengthened with new soap bars from
    the global range and the introduction of limited editions. Innovations in
    Pondsincluded a new mud range in China. In haircare we launched Dovein Indonesia,
    a Sunsilksummer range across South East Asia, a new variant for Lux
    Super Richin China and a strengthened Sunsilkrange across several
    key markets in Africa and the Middle East. New formulations for our laundry products
    include improved whiteness delivery for Surfin Indonesia and Omofor sensitive skin in Turkey. In tea, we substantially strengthened the
    Brooke Bondbrand in India, while Liptonbenefited 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.




|UnileverAnnual Report on Form 20-F 2006 | 19
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|                                         | 
|---------------------------------------- | 
|Report
      of the Directors(continued) | 
|                                         | 

|Operating review  categories
|-----------------------------
|                             



We are passionate about developing great global
    brands and bringing them to market brilliantly. Our Foods and Home and Personal
    Care teams invest heavily in world-class innovation in order to create global
    brand ideas that can be rolled out fast. This involves close collaboration
    between our marketing and research teams, in order to develop breakthrough
    ideas that meet the changing needs of consumers the world over and fulfil
    our mission of adding Vitality to life. Faster roll-outChanges to our structure, our
    One Unilever programme, and better collaboration across our business
    are helping us get new products to market faster than ever before, and this
    is having a big impact on brand growth. Our Dirt is Good positioning including the
    Omolaundry brand now has sales of over €2.5 billion thanks to
    an alignment of the brand positioning and the rapid roll-out in Asia, where
    it delivered not only growth, but record market shares. The new Rama/Blue Band Idea!spread
    was launched in 14 countries within only five months. Idea!is a breakthrough
    innovation with an advanced nutrient mix that supports childrens mental
    development  an issue of interest to parents around the globe, both
    in developed and developing markets. Dove Summer Glowself-tanning
lotion was rolled out across four European countries in just a few weeks. It
became our most successful personal care innovation in Europe in 2006, gaining
sector leadership in most markets through an outstanding team effort involving
marketing, supply chain, R&D and customer development. Brands with global missionsThroughout 2006 we continued to
    build brands with global missions and distinctive points of view. Our brands
    aim to communicate ideas that can be expressed wherever and whenever consumers
    encounter them, and play an active role in consumers lives. Axe/Lynxis one
of the best-known examples: the Axe/Lynxeffect  giving
guys the edge in the dating game  underpins all the brands campaigns.
In 2006 this led to an innovative launch for Axe Click, our most successful
anti-perspirant variant since Pulse. More than 4 million consumers claimed a free hand-held clicker to keep track of the flirtatious looks they attracted as a result
of using Axe Click, helping drive the brands growth in France, Germany
and Mexico. Overall, our deodorants business continues
    to grow. Rexona, with its wont let you down promise,
    played a big role in this success, and reached a major milestone by breaking
    the €1 billion sales barrier.


Flora/Becelhas been fighting the spread of cardiovascular disease for over 40 years. Since 2003 the brand has joined forces with the World Heart Federation to educate
consumers and encourage them to make heart-healthy changes to their diet and lifestyle. Flora/Becel
pro•activis the worlds best-selling cholesterol-lowering food brand and in 2006 the Three Week Challenge engaged with consumers in a number of countries to demonstrate to them the products
effectiveness
in lowering cholesterol. Throughout the year, the Dove Campaign
    for Real Beautycontinued to challenge conventional definitions of beauty.
    The strength of this global mission led to great examples of regional execution.
    For example, the Evolution advertisement, which exposed some of the tricks
    of the beauty trade, prompted much media attention in North America and was
    downloaded from YouTube.com a million times in a two-week period. The Dove Self Esteem Fundworks in
    partnership with schools and organisations such as Girl Scouts of America
    and the Eating Disorders Association to inspire girls to feel more confident
    about the way they look. So far, Doveself-esteem programmes have reached
    more than 750 000 young people and sales of Doveproducts are growing
    rapidly. Liptonis committed
to ensuring consumers everywhere are aware of the goodness of tea', which
is rich in theanine and antioxidants, and has zero calories. Popular all over
the world, Liptonis the leading global tea brand. In 2006, the brand grew strongly, with leaf tea increasing by around 5% and ready-to-drink products, including
sales through our joint venture with Pepsi, up by 25%. Research & DevelopmentWe currently employ more than
    6 000 scientists and product developers in Research & Development (R&D)
    worldwide, delivering total product solutions for Vitality innovations. In
    2006 we spent over €900 million on R&D worldwide. Following our Science & Technology Review,
    which looked at all aspects of our R&D activities, we are focusing resources
    on world-class R&D capabilities, working with clear innovation targets
    and concentrating on fewer  but bigger  projects, which in many
    cases involve patented technology. We have also embraced Open Innovation,
    which has involved creating new working relationships between our R&D
    teams, suppliers, customers, universities and other institutes worldwide. Launched in Turkey in December, Amaze
    Brainfoodis the result of four years of development, long-term clinical
    trials and €40 million of research. The range of lunchbox snacks and
    milk drinks contains one-third of the nutrients children need daily for brain
    development. It was developed through collaboration between our product development
    teams and the Unilever Food & Health Research Institute.




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|Operating review  categories(continued)
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In the Asia skincare market,Pondslaunched Age Miracle, a breakthrough patented innovation containing a plant extract called CLA (conjugated linoleic acid) which helps reduce signs of ageing and yields exceptional results in Asian complexions. Age Miraclehas gone on sale across Asia, helping build Pondsprofile
    in fast-growing D&E
markets. We also developed Surf Excel, which
    enables consumers to achieve the same laundry cleaning results with less rinsing
     a big advantage in areas where water supply is limited. Following the theme of less is more
    in laundry, new technology helped create all Small & Mightyconcentrated
    liquid detergents, which were launched in the US. Small & Mightyis
    three times more concentrated than regular detergents, so you get a full load
    clean with just one-third of the amount. That means fewer packaging materials,
    cheaper transport and less space needed for storage  good news for consumers,
    retailers and the environment. During 2007 Small & Mightywill
    be rolled out across Europe. In June we submitted a dossier to the UK
    FSA (Food Standards Agency) to seek regulatory approval under the EC Novel
    Foods Regulation for the use of Ice Structuring Protein (ISP) in ice cream
    products in Europe. This breakthrough ISP technology enables a multitude of
    innovations in ice cream, including significantly healthier options and better
    quality ice cream. New Domestos 5xcontains a molecule
    called C-TAC which clings to the toilet bowl flush after flush, killing germs
    up to five times longer than any other bleach or toilet product. As part of
    its launch, consumers were supplied with a test strip to prove how long it
    remains effective. Domestos 5xis due to be launched in all key countries
    for the brand. VitalityOur Vitality mission is
    at the heart of everything we do. It provides clear direction for meeting
    consumers changing needs, and helps us identify major growth opportunities
    for our Foods and Home and Personal Care brands. For example, Knorr Vieshots pack
    lots of nutrition into each handy 100ml bottle. These smoothie-style products
    made from fruit and vegetables provide half the minimum daily intake of fruit
    and vegetables recommended by the World Health Organization. Launched in 2005,
    they are now available in 12 European countries  over 100 million bottles
    have been sold so far. AdeZ our soya-based drink with fruit juices  delivers
35% of the daily recommended intake of vitamins B6 and C, magnesium and calcium. AdeZprovides the goodness of soya in a great tasting range of flavours. AdeZstarted in South America
and, with the launch in the UK, this successful product has now been brought to Europe.


When it comes to hygiene, Lifebuoyhas
    already helped around 70 million people in India become more aware of the
    importance of hand-washing with soap to control the spread of diarrhoeal disease
    and respiratory infections. The brand has been working in partnership with
    organisations such as the World Bank and UNICEF to promote hand-washing in
    other countries and as part of its roll-out in Africa. In early 2005 we made a commitment to reduce
    the amount of fats, salt and sugar in our products  a pledge which won
    the praise of the European Health Commissioner. Since then we have achieved
    our original targets: by the end of 2006 we had assessed more than 16 000
    products and taken out more than 37 000 tonnes of trans and saturated fats,
    3 000 tonnes of sodium and 17 000 tonnes of sugars  without compromising
    flavour. This work continues through our ongoing Nutrition Enhancement Programme. A great example is the nutritional improvements
    to our ice cream products. We have removed artificial colours and flavours,
    increased the fruit content and reduced sugar levels in water ices across
    our kids portfolio in Western Europe. It is an ongoing improvement process
    which will extend to more products and regions in the future. Through our global partnership with the FDI
    World Dental Federation we are helping to improve oral health around the world
    with practical, sustainable community programmes. To support these initiatives
    we have developed a low-cost toothbrush, the Pepsodent Fighter, which
    retails at a price equivalent to just €0.20 and is proving a great success
    in India and Indonesia. Meanwhile our Choices programme is helping
    busy shoppers make quick purchasing decisions for healthier eating. The front-of-pack
    stamp helps identify products which are in line with international recommendations
    for trans fats, saturated fats, salt and sugar. The programme has been launched
    in the Netherlands, Belgium and the US, and is now being rolled out globally
    to a total of 40 countries. We are also encouraging its adoption more widely
    in the foods industry. Innovations in 2006The following are some
    examples of our brand innovations and similar activities in 2006. Lipton, the worlds biggest tea brand, is creating drinks that help people live healthier lives. The brand has been rolling out a communication programme to inform
consumers of its antioxidant health benefits and is influencing the wider tea industry with its commitments to sustainability  for example, sustainable farming practices  and
education and health. In 2006 Unilever Tea Kenya won a Global Business Coalition
on HIV/AIDS award for its work on the education, prevention and treatment of
HIV/AIDS in the workplace and beyond. The brand has shown consistent high growth
over the past few years.




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Dove Summer Glowself-tanning lotion keeps a body beautiful all year round. A great example of how a strong global platform can help a brand extend into new categories,
      Dove Summer Glowwas launched in the US and rolled out in four European countries in a matter of weeks. Its advertising continued to target women who, through earlier
campaigns, already know that Doveis committed to real beauty for real women. Dove Summer Glowhelps them feel good about their skin, whatever the weather. The healthy-heart foods market is growing
    fast. And backed by our Goodness of Margarine campaign, Flora/Becelcontinues
    to lead the way. Unilever has been a partner of the World Heart Federation
    since 2003, and works closely with them to increase awareness of cardio-vascular
    disease. Throughout 2007, Flora/Becelis planning to take the message
    further than ever before, with its global Love Your Heart campaign which is
    intended to inspire and empower people to make heart-healthy choices. Backed by a passion-packed advertising campaign
    linked to the energy and excitement of football and the 2006 World Cup, Rexonascored this year when annual sales passed the €1 billion mark for
    the first time. The goal now is to promote the brands market-leading
    body-responsive deodorant, with its technology-based wont let
    you down promise, and turn Rexonainto an iconic brand worldwide
    for men and women. Test-marketed in Ireland and Belgium in 2006,
    Frusì our new frozen snack  is proving very popular.
    Frusìwas created to provide guilt-free pleasure for people
    who take their health seriously. With Frusìthey have the best
    of both worlds: real natural goodness without compromise on taste, pleasure
    or convenience. Sales of Frusìhave beaten targets for market
    penetration and share, and repeat purchases. Following the success of this
    test-market, Frusìis being rolled out to more countries in
    2007. Developed with empty nesters
    in mind and launched in the UK in January 2006, Comfort Crèmehas
    shown thousands of older women that its good to wear softer clothes
    that help you look and feel great. With its gold-topped bottles and fragrances
    of


jojoba and sweet almond oil, Comfort Crèmeis now used in over a million UK households. Its success has overturned
    the idea that fabric conditioners are only popular with mothers with young
    children. With each bottle able to dress more salad
    than a bottle twice its size  26 salads in all  Wish-Bone Salad
    Spritzersare helping Americans count the calories. The easy-to-use bottles
    allow consumers to dress their salads perfectly with just one calorie per
    spray. Available in three flavours  Italian, Balsamic Breeze and Red
    Wine Mist  Wish-Bone Salad Spritzersare good for salads, vegetables
     and waistlines. Bad hair dramas are becoming a thing of the
    past for Americas 20-something women. Launched nationwide in 2006 with
    a witty, $200 million campaign, the SunsilkGet Hairapy
    approach to the dramas of kinky, flat or frizzy hair is bringing this global
    brand to an entirely new market. Backed by innovative marketing, the campaign
    has led to more and more women solving their hair issues with some serious
    hairapy. In 2001, when Unilever signed a joint venture
    with Indonesias Kecap company, Bangosoy sauce had a national
    market share of less than 5%. Today, following an imaginative programme designed
    to preserve Indonesias culinary heritage and enhance the livelihood
    of the countrys soy bean farmers, the brand has sales of around €100
    million  and is growing by 10% year on year. Unilevers guaranteed
    market, technical assistance and access to finance, combined with improved
    work opportunities for women and localised community involvement, have all
    helped develop the brand. Right across Asia, from Pakistan to China,
    the Dirt is Good positioning with Omo(Rinso) has been washing
    well with consumers. Based on the simple premise that, for children, dirt
    and stains are a natural part of being active and learning through play, the
    campaign promotes the brand through community-endorsed playgrounds, outdoor
    games and competitions involving both children and parents. The campaigns
    success has led to Omobecoming Unilevers first-ever billion
    RMB (Renminbi) sales brand in China.




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|Financial review
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The Financial review for the year ended 31 December 2006 is presented below. The Financial review is presented to provide an overview of key influences on Unilevers financial performance for the year and the
financial position as at 31 December 2006. Background sections, such as the overview of Unilevers critical accounting policies and non-GAAP measures are included to provide some additional context. Critical accounting policiesThe
accounts presented comply in all material respects with IFRS and UK and Dutch
law. To prepare these accounts, we are required to make estimates and assumptions,
using judgement based on available information, including historical experience.
These estimates and assumptions are reasonable and are reevaluated on an ongoing
basis. However, actual amounts and results could differ. Critical accounting
policies are those which are most important to the
portrayal of Unilevers financial position and results of operations. Some
of these policies require difficult, subjective or complex judgements from management,
the most important being: Goodwill and intangible assetsImpairment reviews in respect
    of goodwill and indefinite-lived intangible assets are performed at least
    annually. More regular reviews, and impairment reviews in respect of other
    assets, are performed if events indicate that this is necessary. Examples
    of such triggering events would include a significant planned restructuring,
    a major change in market conditions or technology, expectations of future
    operating losses, or negative cash flows. Impairment reviews are performed by comparing
    the carrying value of the asset concerned to that assets recoverable
    amount (being the higher of value in use and fair value less costs to sell).
    Value in use is a valuation derived from discounted future cash flows. Significant
    assumptions, such as long-term growth rates and discount rates, are made in
    preparing these forecast cash flows; although these are believed to be appropriate,
    changes in these assumptions could change the outcomes of the impairment reviews. The most significant balances of goodwill
    and intangible assets relate to the global savoury and dressings sub-product
    group. We have reviewed the carrying value of this cash generating unit by
    considering expected future cash flows based on historical experience and
    planned growth rates and margins for this product group. No significant impairment
    losses have been identified in 2006. Please refer also to note 9 on page 88.


Financial instrumentsFinancial instruments are classified
    according to the purpose for which the instruments were acquired. This gives
    rise to the following categories: held-to-maturity investments, loans and
    receivables, available-for-sale financial assets and financial assets at fair
    value through profit or loss. Please refer to note 1 on page 75 for a description
    of each of these categories. Derivative financial instruments are reported
    at fair value, with changes in fair values booked through profit or loss unless
    the derivatives are designated and effective as hedges of future cash flows,
    in which case the changes are recognised directly in equity. At the time the
    hedged cash flow results in the recognition of an asset or a liability, the
    associated gains or losses on the derivative that had previously been recognised
    in equity are included in the initial measurement of the asset or liability.
    For hedged items that do not result in the recognition of an asset or liability,
    amounts deferred in equity are recognised in the income statement in the same
    period in which the hedged item affects net profit or loss. Changes in fair value of net investment hedges
    in relation to foreign subsidiaries are recognised directly in equity. Pensions and similar obligationsThe assets and liabilities of
    the plans are recognised at fair values in the balance sheet. Pension accounting requires certain assumptions
    to be made in order to value our obligations and to determine the charges
    to be made to the income statement. These figures are particularly sensitive
    to assumptions for discount rates, inflation rates, mortality rates and expected
    long-term rates of return on assets. Information about sensitivity to certain
    of these assumptions is given in note 20 on page 105. The following table sets out these assumptions
    (except for mortality rates), as at 31 December 2006, in respect of the four
    largest Unilever pension plans. Further details of assumptions (including
    mortality rates) made are given in note 20 on pages 103 and 104. %
        
        %
        
        %
        
        %Nether-
        
        UnitedUK
        
        lands
        
        States
        
        GermanyDiscount rate
        5.1
        
        4.6
        
        5.8
        
        4.6Inflation
        2.9
        
        1.9
        
        2.5
        
        1.9Expected long-term rate of return:Equities
        8.0
        
        7.6
        
        8.3
        
        7.6Bonds
        5.2
        
        4.4
        
        5.2
        
        4.4Property
        6.5
        
        6.1
        
        6.8
        
        6.1Others
        7.2
        
        4.0
        
        4.8
        
        3.0 These assumptions are set by reference to market conditions at the valuation date. Actual experience may differ from the assumptions made. The effects of such differences are recognised through the statement of
recognised income and expense.




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Demographic assumptions, such as mortality rates, are set having regard to the latest trends in life expectancy, plan experience and other relevant data. The assumptions are reviewed and updated as necessary as part of
the periodic actuarial valuation of the pension plans. Mortality assumptions for the four largest plans are given in more detail in note 20 on page 104. ProvisionsProvision is made, amongst other reasons, for
legal matters, disputed indirect taxes, employee termination costs and restructuring
where a legal or constructive obligation exists at the balance sheet date and
a
reliable estimate can be made of the likely outcome. Advertising and promotion costsExpenditure on items such as consumer promotions
and trade advertising is charged against profit in the year in which it is incurred.
At each balance sheet date, we are required to estimate the part of expenditure
incurred but not yet invoiced based on our knowledge of customer, consumer and
promotional activity. Deferred taxFull provision is made for deferred taxation
at the rates of tax prevailing at the year-end unless future rates have been
substantively enacted, as detailed in note 1 on page 76. Deferred tax assets
are regularly reviewed for recoverability, and a valuation allowance is established
to the extent that recoverability is not considered likely. Reporting currency and exchange ratesForeign currency amounts for results and cash
flows are translated from underlying local currencies into euros using annual
average exchange rates; balance sheet amounts are translated at year-end rates
except for the ordinary capital of the two parent companies. These are translated
at the rate prescribed by the Equalisation Agreement of 31/9p
= €0.16 (see
Corporate governance on page 39). Non-GAAP measuresCertain discussions and analyses set out in
this Annual Report on Form 20-F include measures which are not defined by generally
accepted accounting principles (GAAP) such as IFRS or US GAAP. We believe this
information, along with comparable GAAP measurements, is useful to investors
because it provides a basis for measuring our operating performance, ability
to retire debt and invest in new business opportunities. Our management uses
these financial measures, along with the most directly comparable GAAP financial
measures, in evaluating our operating performance and value creation. Non-GAAP
financial measures should not be considered in isolation from, or as a substitute
for, financial
information presented in compliance with GAAP. Non-GAAP
financial measures as reported by us may not be comparable to similarly titled
amounts reported by other companies.


In the following sections we set out our definitions of the following non-GAAP
measures and provide reconciliations to relevant GAAP measures: •
    Underlying sales growth;•
    Ungeared free cash flow;•
    Return on invested capital; and•
    Net debt. We set out Measures of long-term value creation as an introduction to the following section, in order to explain the relevance of the above measures. At the end of this section on non-GAAP measures, we
summarise the impact on Total Shareholder Return (TSR) which is our key metric. Measures of long-term value creationUnilevers ambition for the creation of
value for shareholders is measured by Total Shareholder Return over a rolling
three-year period compared with a peer group of 20 other companies. Unilever
believes that the contribution of the business to this objective can best be
measured and communicated to investors through the following measures: •
    The delivery, over time, of Ungeared Free Cash Flow (UFCF), which expresses the translation of profit into cash, and thus longer-term economic
value; and•
    The development, over time, of Return on Invested Capital (ROIC), which expresses the returns generated on capital invested in the
Group. Unilever communicates progress against these measures annually, and management
remuneration is aligned with these objectives. The UFCF over a three-year period
is incorporated as a performance element of
Unilevers management incentive scheme. UFCF and ROIC are non-GAAP measures under IFRS and US GAAP. We include them in
this respect since they are the way in which we communicate our ambition and
monitor progress towards our longer-term value creation goals
and in order to: •
    Improve transparency for investors;•
    Assist investors in their assessment of the long-term value of Unilever;•
    Ensure that the measures are fully understood in the light of how Unilever reviews long-term value creation for shareholders;•
    Properly define the metrics used and confirm their calculation;•
    Share the metrics with all investors at the same time; and•
    Disclose UFCF as it is one of the drivers of management remuneration and therefore management behaviour. As investor measures, we believe that there are no GAAP measures directly comparable
with UFCF and ROIC. However, in the tables on page 26, we reconcile each as follows:
UFCF to cash flow from operating activities and also to net profit; ROIC to net
profit.




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CautionUnilever cautions that, while UFCF and ROIC
are widely used as tools for investment analysis, they are not defined terms
under IFRS or US GAAP and therefore their definition should be carefully reviewed
and understood by investors. Investors should be aware that their application
may vary in practice and therefore these measures may not be fully comparable
between companies. In particular: •
    We recognise that the usefulness of UFCF and ROIC as indicators of investment value is limited, as such measures are based on historical
information;•
    UFCF and ROIC measures are not intended to be a substitute for, or superior to, GAAP measures in the financial statements;•
    The fact that ROIC is a ratio inherently limits its use, and management uses ROIC only for the purposes discussed above. The relevance and use of net profit for the year (being the most relevant comparable GAAP measure) is clearly more pervasive; and•
    UFCF is not the residual cash available to pay dividends but represents cash generated by the business and broadly available to the providers
of finance, both debt and equity. Underlying sales growthUSG reflects the change in revenue from continuing
operations at constant rates of exchange, excluding the effects of acquisitions
and disposals. It is a measure that provides valuable additional information
on the underlying performance of the business. In particular, it presents the
organic growth of our business year on year and is used internally as a core
measure of sales performance. The reconciliation of USG to the GAAP measure turnover is as follows: 2006
        
        2005vs 2005
        
        vs 2004Underlying sales growth (%)
        3.8
        
        3.4Effect of acquisitions (%)
        0.1
        
        0.0Effect of disposals (%)
        (0.8
        )
        (1.5
        )Effect of exchange rates (%)
        0.3
        
        1.4Turnover growth (%)
        3.2
        
        3.3


Ungeared free cash flowUngeared free cash flow (UFCF) expresses the
generation of profit by the business and how this is translated into cash, and
thus economic value. It is therefore not used as a liquidity measure within Unilever.
The movement in UFCF is used by Unilever to measure progress against our longer-term
value creation goals as outlined to investors. UFCF 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 and, in 2006, for the impact
on profit on sales of frozen foods businesses), but before the financing of pensions. In 2006, UFCF was €4.2 billion (2005: €4.0 billion). The reconciliation
of UFCF to the GAAP measures net profit and cash flow from operating activities
is shown on page 26. The tax charge used in determining UFCF can be either the income statement tax
charge or the actual cash taxes paid. Our consistently applied definition uses
the income statement tax charge in order to eliminate the impact of volatility
due to the variable timing of payments around the year end. For 2006 the income
statement tax charge on this basis is materially impacted by the tax effect of
non-cash charges for the provision for preference shares and certain other non-cash
items. UFCF based on actual cash tax paid would be €4.5 billion (2005: €3.7
billion). Return on invested capitalReturn on invested capital (ROIC) expresses
the returns generated on capital invested in the Group. The progression of ROIC
is used by Unilever to measure progress against our longer-term value creation
goals outlined
to investors. ROIC is profit after tax but excluding net interest on net debt and impairment
of goodwill and indefinite-lived intangible assets both net of tax, divided by
average invested capital for the year. Invested
capital is the sum of property, plant and equipment and other non-current investments,
software and finite-lived intangible assets, working capital, goodwill and indefinite-lived
intangible assets at gross book value and cumulative goodwill written off directly
to reserves under an earlier accounting policy. In 2006, ROIC was 14.6% (2005: 12.5%) . The reconciliation of ROIC to the GAAP
measure net profit is shown on page 26. ROIC reported in 2005 and 2006 has been based on total business profit, including
profit on disposals. The impact on profit after tax
of material disposals was €1 170 million (2005: €458 million). ROIC
excluding this impact is 11.5% (2005: 11.3%).




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|                                                                                               | € million        |   | € million        |   | € million |  
|---------------------------------------------------------------------------------------------- | ---------------- | - | ---------------- | - | --------- | -
|Ungeared free cash flow                                                                        | 2006             |   | 2005             |   | 2004      |  
|                                                                                               |                  |   |                  |   |           |  
|Net profit                                                                                     | 5 015            |   | 3
975            |   | 2
941     |  
|Taxation                                                                                       | 1
332            |   | 1
301            |   | 836       |  
|Share of net profit of joint ventures/associates and other income from non-current investments | (144             | ) | (55              | ) | (95       | )
|Net finance costs                                                                              | 725              |   | 618              |   | 631       |  
|Depreciation, amortisation and impairment                                                      | 982              |   | 1
274            |   | 2
063     |  
|Changes in working capital                                                                     | 87               |   | 193              |   | 547       |  
|Pensions charges in operating profit less payments                                             | (1
038           | ) | (532             | ) | (472      | )
|Movements in provisions less payments                                                          | 107              |   | (230             | ) | 574       |  
|Elimination of profits on disposals                                                            | (1
620           | ) | (789             | ) | (308      | )
|Non-cash charge for share-based compensation                                                   | 120              |   | 192              |   | 218       |  
|Other adjustments                                                                              | 8                |   | (23              | ) | (10       | )
|                                                                                               |                  |   |                  |   |           |  
|Cash flow from operating activities                                                            | 5
574            |   | 5
924            |   | 6
925     |  
|                                                                                               |                  |   |                  |   |           |  
|Less charge for share-based compensation                                                       | (120             | ) | (192             | ) | (218      | )
|Add back pension payments less pension charges in operating profit                             | 1
038            |   | 532              |   | 472       |  
|Less net capital expenditure                                                                   | (934             | ) | (813             | ) | (869      | )
|                                                                                               |                  |   |                  |   |           |  
|Less tax charge adjusted to reflect an ungeared position                                       | (1
336           | ) | (1
440           | ) | (964      | )
|                                                                                               |                  |   |                  |   |           |  
|Taxation on profit                                                                             | (1
          332 | ) | (1
          301 | ) | (836      | )
|Taxation
    on profit on sales of frozen foods businesses                                     | 159              |   |                 |   |          |  
|Tax
    relief on net finance costs                                                            | (163             | ) | (139             | ) | (128      | )
|                                                                                               |                  |   |                  |   |           |  
|Ungeared free cash flow                                                                        | 4
222            |   | 4
011            |   | 5
346     |  
|                                                                                               |                  |   |                  |   |           |  
|                                                                                               |                  |   |                  |   |           |  

|                                                                                                    | € million |   | € million |   | € million |  
|--------------------------------------------------------------------------------------------------- | --------- | - | --------- | - | --------- | -
|Return on invested capital                                                                          | 2006      |   | 2005      |   | 2004      |  
|                                                                                                    |           |   |           |   |           |  
|Net profit                                                                                          | 5
015     |   | 3
975     |   | 2
941     |  
|Add back net interest expense net of tax                                                            | 365       |   | 424       |   | 431       |  
|Add back impairment charges net of tax(a)                                                           | 15        |   | 245       |   | 536       |  
|                                                                                                    |           |   |           |   |           |  
|Profit after tax, before interest and impairment of goodwill and indefinite-lived intangible assets | 5
395     |   | 4
644     |   | 3
908     |  
|                                                                                                    |           |   |           |   |           |  
|Year-end positions for invested capital:                                                            |           |   |           |   |           |  
|Property,
    plant and equipment and other non-current investments                                 | 7
142     |   | 7
333     |   | 6
966     |  
|Software
    and finite-lived intangible assets                                                     | 608       |   | 642       |   | 623       |  
|Inventories                                                                                         | 3
796     |   | 4
107     |   | 3
756     |  
|Trade
    and other receivables                                                                     | 4
667     |   | 5
185     |   | 4 410     |  
|Trade
    payables and other creditors due within one year                                          | (8
513    | ) | (8
782    | ) | (8
232    | )
|Elements
    of invested capital included in assets and liabilities held for sale                   | 15        |   | 200       |   |          |  
|Goodwill
    and indefinite-lived intangible assets at gross book value                             | 20
705    |   | 21
621    |   | 19
854    |  
|                                                                                                    |           |   |           |   |           |  
|Total                                                                                               | 28
420    |   | 30
306    |   | 27
377    |  
|Add back cumulative goodwill written off directly to reserves                                       | 6
427     |   | 6
870     |   | 7
246     |  
|                                                                                                    |           |   |           |   |           |  
|Year-end invested capital                                                                           | 34
847    |   | 37
176    |   | 34
623    |  
|                                                                                                    |           |   |           |   |           |  
|Average invested capital for the year                                                               | 36
850    |   | 37
012    |   | 36
444    |  
|                                                                                                    |           |   |           |   |           |  
|Return on average invested capital                                                                  | 14.6      | % | 12.5      | % | 10.7      | %
|                                                                                                    |           |   |           |   |           |  

|(a) | Excluding write-downs of goodwill and indefinite-lived intangible assets taken in connection with business disposals.
|--- | ---------------------------------------------------------------------------------------------------------------------



|26 | UnileverAnnual Report on Form 20-F 2006
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| |                                             
| | --------------------------------------------
| | Report
          of the Directors(continued)
| |                                             

|Financial review (continued)
|----------------------------
|                            



Net debtNet
      debt is defined as the excess of total borrowings, bank overdrafts, relevant
      derivatives and finance leases over cash, cash equivalents and financial
      assets, excluding amounts held for sale. It is a measure that provides valuable
      additional information on the summary presentation of the Groups net
  financial liabilities and is a measure in common use elsewhere. The reconciliation of net debt to the GAAP measure total borrowings is as follows: € million
        
        € million2006
        
        2005Total borrowings
        (8 601
        )
        (12 399
        )Borrowings due within one year
        (4 362
        )
        (5 942
        )Borrowings due after one year
        (4 239
        )
        (6 457
        )Cash and cash equivalents as per balance sheet
        1 039
        
        1 529Cash and cash equivalents
        as per cash flow statement
        710
        
        1 265Add bank overdrafts deducted therein
        329
        
        265Less cash and cash equivalents inassets/liabilities held for
    sale
        
        
        (1
        )Other financial assets
        237
        
        335Derivatives
      and finance leases included in other receivables and other liabilities
        (198
        )
        33Net debt
        (7 523
        )
        (10 502
        )


Total Shareholder ReturnTotal Shareholder Return (TSR) measures the
returns received by a shareholder, capturing both the increase in share price
and the value of dividend income (assuming dividends
are re-invested). Unilevers TSR performance is compared with a peer group
of competitors over a three-year rolling performance period. This period is sensitive
enough to reflect changes but long enough to smooth out short-term volatility.
The return is expressed in US dollars, based on the equivalent US dollar share
price for NV and PLC. US dollars were chosen to facilitate comparison with companies
in Unilevers chosen reference group. The choice of currency affects the
absolute TSR but not
the relative ranking. Unilevers TSR target is to be in the top third of a reference group including
20 other international consumer goods companies on a three-year rolling basis.
At the end of 2005 we were positioned 14th, and at the end of 2006 the ranking
was 13th. In 2006, the following companies formed the peer group of comparative
companies: Avon
        KraftBeiersdorf
        LionCadbury Schweppes
        LOréalClorox
        NestléCoca-Cola
        OrklaColgate
        PepsicoDanone
        Procter & GambleHeinz
        Reckitt BenckiserKao
        Sara LeeKimberly-Clark
        Shiseido Unilevers position relative to the
  TSR reference group The reference
group, including Unilever, consists of 21 companies.
Unilevers position is based on TSR over a three-year rolling period.




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|Report
            of the Directors(continued) | 
|                                               | 

|Financial review (continued)
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Results and earnings per shareThe following discussion summarises the results of the Group during the years 2004, 2005 and 2006. The figures quoted are in euros, at current rates of exchange, being the average or year-end rates of each period,
unless otherwise stated. Information about exchange rates between the euro, pound sterling and the US dollar is given on page 146. The results reflected in the consolidated income statement and supporting notes
arise from the Groups continuing operations. In November 2006, we successfully
completed the sale of the majority of our European frozen foods businesses. The
results of the businesses disposed of have been presented as discontinued operations
for 2004 and 2005, and in 2006, for the period up to the date of sale. During
July 2005, we completed the sale of Unilever Cosmetics International (UCI) to
Coty Inc., United States. The results of UCI are presented as discontinued operations
for the 2004 year and, in 2005, for the period up to the date of sale. € million
    
    € million
    
    € million2006
    
    2005
    
    2004Continuing operations:Turnover
    39 642
    
    38 401
    
    37 168Operating
      profit
    5 408
    
    5 074
    
    3 981Net profit
    3 685
    
    3 335
    
    2 728Net profit from discontinued
        operations
    1 330
    
    640
    
    213Net profit  total
    5 015
    
    3 975
    
    2 941 €
        
        €
        
        €2006
        
        2005
        
        2004EPS  continuing operations
        1.19
        
        1.07
        
        0.87EPS  total
        1.65
        
        1.29
        
        0.94 Results for 2006 compared with 2005Turnover
for the period increased by 3.2% to €39 642 million. The increase is driven
by underlying sales growth of 3.8%, with contributions from both volume and price,
as well as favourable currency effects of 0.3% . Offsetting the increase is the
impact of disposals (0.8)% in the period. Operating profit for the period increased by 7% to €5 408 million with
operating margin increasing to 13.6%, up by 0.4 percentage points compared with
2005. This was after charging restructuring, disposals and impairments costs
equivalent to 1.3 percentage points of sales (compared with 1.5 percentage points
in 2005). It also included €266 million of one-off gains from changes to
US healthcare and UK pension plans, equivalent to 0.7 percentage points of sales.
Before these items, and the profit on the sale of an office in the US in 2005,
the operating margin would have been 0.3 percentage points lower than last year.
Gross margins held steady during the year, with supply chain savings programmes,
pricing action and a positive mix fully offsetting around €600 million
of higher input costs. Investment in advertising and promotions increased by
nearly €300 million, from 12.8% to 13.1% of sales. An overview of performance
by regions is included in the Operating review on pages 13 to 19.


Net finance costs were 18% higher in the year at €721 million. 2006 includes
the provision of €300 million relating to preference shares. The costs
of financing net borrowings were lower than last year with the benefit of a lower
level of debt. Pensions financing, which was a net expense of €53 million
in 2005, showed a net income of €41 million in 2006, reflecting a lower
gross pension fund deficit. The tax rate for the year was 24%, compared with 26% in 2005, including the benefits
of a better country mix. Share of net profit from joint ventures was ahead of last year due to the continued
growth in the partnerships between Liptonand Pepsi for ready-to-drink
tea. Share of net profit from associates increased significantly compared with
prior year, principally because of the placement of equity by one of our venture
capital fund investments. Net profit and earnings per share from continuing operations grew by 10% and
11% respectively in the year. Including the profits of the discontinued operations,
net profit and earnings per share increased by 26% and
27% in the year, respectively. Return on invested capital (ROIC) increased from 12.5% in 2005 to 14.6% in 2006.
Both years included significant profits from the sale of discontinued operations.
Excluding these, the ROIC increased from 11.3% to 11.5%
.. Results for 2005 compared with 2004Reported
turnover grew by 3.3% in the year to €38 401 million. This increase includes
a favourable effect from movements of the average euro exchange rate against
the basket of Unilever currencies, which amounted to 1.4% of turnover. The net
impact of disposals less acquisitions was a decline in turnover of 1.5% . This
arose principally from the sale of European olive oil and other foods businesses.
Underlying sales growth in the year of 3.4% was the result
of volume increases. Operating profit increased by 27% in the year to €5 074 million with operating
margin increasing to 13.2% (2004: 10.7%) . Before the impact of net costs of
restructuring, business disposals and impairments, the operating margin for 2005
would have been 0.9 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 €600 million in input costs. Operating charges for restructuring,
business disposals and impairments include the impairment of the Slim•Fastbusiness
in both 2005 and 2004 amounting to €363 million and €791 million
respectively. An overview of performance by region is included in the Operating
review on pages 13 to 19. Net finance costs were 2% lower in the year at €613 million, through lower
levels of borrowings.




|28 | UnileverAnnual Report on Form 20-F 2006
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| | Report
            of the Directors(continued)
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|Financial review (continued)
|----------------------------
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A reduced contribution was generated from our shares in joint ventures and associates, most significantly from our associate JohnsonDiversey. Profit from discontinued operations includes the gain of €458 million
arising from the sale of UCI. The Groups effective tax rate of profit for the year was 26%, compared
with 21% in 2004, which reflected resolution of a higher level of outstanding
prior year tax issues. Net profit and earnings per share from continuing operations increased by 22%
and 23% respectively in the year. Including the profits of the discontinued operations,
total earnings per share increased by 37% in the
year. Return on invested capital (ROIC) for the year was 12.5%, up from 10.7% in 2004.
This reflects the lower restructuring costs and higher profits on business disposals
included in net profit. ROIC retains all goodwill and intangibles in invested
capital, regardless of impairment. Acquisitions and disposals2006On 4 September 2006, Unilever announced
a public offer to purchase all ordinary shares of Elais-Unilever S.A. held by
third party shareholders. Elais-Unilever S.A. is reported as a subsidiary and
is Unilevers
main foods business in Greece. The offer price was €24.50 per share, with
the public offer closing on 25 October 2006. A total of 2 234 692 shares were
purchased by the end of 2006, increasing Unilevers ownership of Elais-Unilever
S.A. to
83.52% . On 3 November 2006 we announced the completion of the sale of the majority of
our frozen foods businesses in Europe to the Permira Funds. Unilever received
proceeds of €1.7 billion, and recorded a profit on
disposal of €1.2 billion. The businesses sold included operations in Austria,
Belgium, France, Germany, Ireland, the Netherlands, Portugal and the United Kingdom. In 2006 we disposed of various other businesses and brands with a combined turnover
of around €280 million, including Mora in the Netherlands and Belgium,
Finesse in North America and Nihar in India. 2005There were no material acquisitions
during 2005. On 11 July 2005, we completed the sale of our Prestige fragrance business, 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. Business disposals in 2005 included Stanton Oil in the UK and Ireland, Dextro
in various countries in Europe, Opal in Peru, Karo and Knax in Mexico, spreads
and cooking products in Australia and New Zealand, Crispa, Mentadent, Marmite,
Bovril and Maizena in South Africa, frozen pizza in Austria, Biopon in Hungary
and tea plantations in India. The combined annual turnover of these businesses
was approximately €200 million.


In March 2005 Unilever carried out a restructuring of its Portuguese foods business.
Before the restructuring Unilever Portugal held an interest in FIMA/VG  Distribuição
de Produtos Alimentares,
Lda. (FIMA) foods business, a joint venture with Jerónimo Martins Group,
in addition to its wholly owned Bestfoods business acquired in 2000. As a result
of the transaction the two foods businesses  FIMA and Unilever Bestfoods
Portugal  were unified and the joint venture stakes were re-balanced so
that Unilever now holds 49% of the combined foods business and Jerónimo
Martins Group 51%. See page 123 for further details on the Portuguese businesses
whose ownership was
further reorganised as at 1 January 2007. 2004There were no material acquisitions
during 2004. In 2004 we disposed of more than 20 businesses with total turnover in excess
of €700 million. Significant disposals included the sale of certain household
care brands in North America, our edible oils business under the Capullo, Inca
and Mazola brands in Mexico, the Dalda brand in Pakistan and the sale of our
European frozen pizza and baguette business. Our chemicals business in India
(Hindustan Lever Chemicals) was merged with Tata Chemicals. For further information on the impact of acquisitions and disposals refer to
note 26 on page 113. Dividends and market capitalisation Dividends per share Per €0.16
        
        
        
        Per 3 1/9pNV ordinary share
        
        
        
        PLC ordinary share€
        
        €
        
        £
        
        £2006
        
        2005
        
        2006
        
        2005Interim
        0.23
        
        0.22
        
        15.62
        
        15.04Final
        
        
        0.44
        
        
        
        30.09Proposed final
        0.47
        
        
        
        32.04
        
        0.70
        
        0.66
        
        47.66
        
        45.13One-off
        0.26
        
        
        
        17.66
        
        0.96
        
        0.66
        
        65.32
        
        45.13 Final dividends for 2006 are subject to approval at the Annual General Meetings. If approved, this will bring the total regular dividend, excluding the additional one-off payment, to €0.70 per share for NV and
47.66p for PLC, an increase of 6% in each case. In accordance with IFRS, no provision for the amount of this dividend, estimated as €1 358 million, has been recognised in the financial statements for the year ended 31 December 2006. The
additional one-off dividend of €751 million was paid during December 2006. Unilevers combined market capitalisation at 31 December 2006 was €63.4
billion (2005: €57.5 billion).




|UnileverAnnual Report on Form 20-F 2006 | 29
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|Report
            of the Directors(continued) | 
|                                               | 

|Financial review (continued)
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|                            



Balance sheet € million
        
        € million2006
        
        2005Goodwill and intangible assets
        17 206
        
        18 055Other non-current assets
        10 365
        
        10 303Current assets
        9 501
        
        11 142Current liabilities
        (13 884
        )
        (15 394
        )23 188
        
        24 106Non-current liabilities
        11 516
        
        15 341Shareholders equity
        11 230
        
        8 361Minority interest
        442
        
        40423 188
        
        24 106 Goodwill and intangibles as at 31 December 2006 were €0.8 billion lower than in 2005. This was almost solely a consequence of currency movements. Currency movements also explain the reduction of inventories and
trade receivables when compared with prior year. The other significant movements in non-current assets relate to pension assets for funded schemes in surplus and deferred tax assets. The increase in pension fund assets was due to improvements in
asset yields and increased contributions. The decrease of non-current deferred tax assets from €1.7 billion as at 31 December 2005 to €1.3 billion as at 31 December 2006 was a result of the decrease in pension liabilities. The overall funding shortfall before tax of pensions and health care plans reduced
significantly from €5.6 billion at the end of 2005 to €3.1 billion
at the end of 2006. Within this, there was at 31 December 2006 an aggregated
surplus of €0.3 billion on our funded plans, reflecting a combination of
strong equity returns, increased contributions and higher real interest rates,
partly offset by increased life expectancy assumptions. The value of our unfunded
obligations reduced from €4.2 billion to €3.4 billion due to rises
in interest rates, favourable exchange movements and changes to various retiree
medical benefits. We made a number of changes to our pensions and post-retirement healthcare plans
during 2006. In particular, in the US retiree healthcare plan we introduced an
annual cap on the benefits which each participant can claim. In the UK we updated
assumptions on pension commutations and now reduce some deferred pensions if
they are taken early, to align with market practice. See page 32 for details
on Unilevers pension investment strategy. Total equity has increased by €2.9 billion in the year. Net profit added €5.0
billion and currency and fair value/actuarial gains added €0.5 billion.
Dividends paid in the year totalled €2.7
billion.


As at 31 December 2006, cash and cash equivalents and other financial assets
amounted to €1.3 billion, a decrease of €0.6 billion. Borrowings,
(including finance leases amounting to €0.2 billion and the negative fair
value of derivatives relating to borrowings) amounted to €8.8 billion a
reduction of €3.8 billion. The net debt position, see page 27, as at 31 December 2006 was €7.5 billion,
a reduction of €3.0 billion since 1 January 2006. This was driven by the
cash generated by the business during the year, the proceeds of disposals (particularly
from the sale of the majority of the European frozen foods businesses) and currency
effects, specifically the weakening of the US dollar. Unilever manages interest rate and currency exposures based on the net debt position.
Taking into account the various cross currency swaps and other derivatives, 81%
of Unilevers net debt was in US dollars (2005: 60%) and 25% in euros (2005:17%)
and ((33)% - financial assets) in sterling, with the remainder spread over a
large number of other currencies. The currency distribution of total borrowings
was as follows: 70% in US dollars (2005: 51%), and 24% in euros (2005: 20%) with
the remainder spread over a large number of other currencies. Further details
of the currency analyses are given in note 15 on page 95 and note 16 on page
98. Unilever has committed credit facilities in place to support its commercial paper
programmes and for general corporate purposes. The undrawn committed credit facilities
in place at the end of 2006 were: bilateral committed credit facilities totalling
US $4.6 billion, bilateral notes commitments totalling US $0.2 billion
and bilateral money market commitments totalling US $1.4 billion. Further
details regarding these facilities are given in note
16 on page 98. During 2006, a US $300 million bond with a fixed interest rate of 6.15% was
repaid, as was a €1 billion bond with a fixed interest rate of 5.125% and
a US $500 million bond with a fixed interest rate of 5.125% . Three floating
rate bonds denominated in Japanese yen for a total of ¥37 billion (approximately €250
million) were repaid and Unilever issued a new floating rate bond for a similar
amount with a maturity date of June 2008. Unilever is satisfied that its financing arrangements are adequate to meet its
working capital needs for the foreseeable future. Unilevers contractual obligations at the end of 2006 included capital expenditure
commitments, borrowings, lease commitments and other commitments. A summary of
certain contractual obligations at 31 December 2006 is provided in the table
below. Other long-term commitments have increased compared with prior year due
to the outsourcing contracts which Unilever has entered into during 2006. Further
details are set out in the following notes to the accounts; note 10 on page 90,
note 16 on page 96, note 17 on pages 99 to 101 and note 25 on page 112.




|30 | UnileverAnnual Report on Form 20-F 2006
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| | Report
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|Financial review (continued)
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Contractual obligations at 31 December 2006 € million
        
        € million
        
        € million
        
        € million
        
        € millionDue
        
        
        
        
        
        Due inwithin
        
        Due in
        
        Due in
        
        overTotal
        
        one year
        
        1-3 years
        
        3-5 years
        
        5 yearsLong-term debt
        6 183
        
        1 944
        
        696
        
        1 346
        
        2 197Operating lease obligations
        1 617
        
        342
        
        537
        
        338
        
        400Purchase obligations(a)
        233
        
        156
        
        58
        
        16
        
        3Finance leases
        296
        
        71
        
        90
        
        27
        
        108Other long-term commitments
        1 547
        
        315
        
        395
        
        312
        
        525 (a)
        Raw and packaging materials and finished goods. Off-balance sheet arrangementsIFRS interpretation SIC 12 and US GAAP FIN 46R require that entities with which
we have relationships are considered for consolidation in the consolidated accounts
based on relative sharing of economic risks and rewards rather than based solely
on share ownership and voting rights. We periodically review our contractual
arrangements with potential special purpose entities (SPEs) or variable interest
entities (VIEs) as defined by SIC 12 and FIN 46R respectively. The most recent
review has concluded that that there are no significant SPE or VIE relationships
which are not already appropriately reflected in the accounts. Information concerning
guarantees given by the Group is stated in note 25
on page 112. Cash flow € million
        
        € million
        
        € million2006
        
        2005
        
        2004Net cash flow from operating activities
        4 511
        
        4 353
        
        5 547Net
              cash flow from/(used in) investing activities
        1 155
        
        515
        
        (120
        )Net
              cash flow from/(used in) financing activities
        (6 572
        )
        (4 821
        )
        (5 938
        )Net
              increase/(decrease) in cash and cash equivalents
        (906
        )
        47
        
        (511
        ) Cash and cash equivalents at 31 December 2006 were €0.6 billion lower than as at 31 December 2005. Cash from operating activities was €0.3 billion lower than in 2005 due to significantly higher contributions
to pension schemes. This was offset to some extent by the improvements in the level of working capital, with a further reduction of €0.1 billion as at 31 December 2006. Income tax paid was substantially lower through a combination of tax relief
on the higher pension contributions, structural improvements in the tax rate and timing differences. As a result, net cash flow from operating activities was €0.2 billion higher than last year.


Net cash flow from investing activities was €0.6 billion higher due to
the impact of the disposals in the year which had a positive impact of €1.8
billion (2005: €0.8 billion), offset by increased
capital expenditure of €0.1 billion compared with the prior year. Net cash flow used in financing activities increased by €1.8 billion, reflecting
dividend payments and repayment of debt. Finance and liquidityUnilever aims to be in the top third
of a reference group including 20 other international consumer goods companies
for Total Shareholder Return, as explained on page 27.
The Groups financial strategy supports this objective and provides the
financial flexibility to meet its strategic and day-to-day needs. The key elements
of the financial strategy are: •
    Appropriate access to equity and debt capital;•
    Sufficient flexibility for acquisitions that we fund out of current cash flows;•
    A1/P1 short-term credit rating;•
    Sufficient resilience against economic turmoil; and•
    Optimal weighted average cost of capital, given the constraints above. Unilever aims to concentrate cash in the parent and finance companies in order
to ensure maximum flexibility in meeting changing business needs. Operating subsidiaries
are financed through the mix of retained earnings, third-party borrowings and
loans from parent and group financing companies that is most appropriate to the
particular country and business concerned. Unilever maintains access to global
debt markets through an infrastructure of short-term debt programmes (principally
US domestic and euro commercial paper programmes) and long-term debt programmes
(principally a US Shelf registration and euromarket Debt Issuance Programme).
Debt in the international markets is, in general, issued in the name of NV, PLC,
Unilever Finance International BV or Unilever Capital Corporation. NV and PLC
will normally guarantee such debt where they are not the issuer. TreasuryUnilever
Treasurys role is to ensure that appropriate financing is available for
all value-creating investments. Additionally, Treasury delivers financial services
to allow operating companies to manage their financial transactions and exposures
in an efficient, timely and low-cost manner. Unilever Treasury operates as a service centre and is governed by policies and
plans approved by the Boards. In addition to policies, guidelines and exposure
limits, a system of authorities and extensive independent reporting covers all
major areas of activity. Performance is monitored closely. Reviews are undertaken
by the corporate internal audit function.




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|Report
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|Financial review (continued)
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The key financial instruments used by Unilever are short- and long-term borrowings, cash and cash equivalents and certain straightforward derivative instruments, principally comprising interest rate swaps and foreign
exchange contracts. The accounting for derivative instruments is discussed in note 1 on page 74. The use of leveraged instruments is not permitted. Other relevant disclosures are given in notes 15, 16 and 17 on pages 95, 96 and
99. Unilever Treasury manages a variety of market risks, including the effects of
changes in foreign exchange rates, interest rates and liquidity. Further details
of the management of these risks are given in note 17 on
pages 100 and 101. Pensions investment strategyThe
Groups investment strategy in respect of its funded pension plans is implemented
within the framework of the various statutory requirements of the territories
where the plans are based. The Group has developed policy guidelines for the
allocation of assets to different classes with the objective of controlling risk
and maintaining the right balance between risk and long-term returns in order
to limit the cost to the company of the benefits provided. To achieve this, investments
are well diversified, such that the failure of any single investment would not
have a material impact on the overall level
of assets. The


plans invest the largest proportion of the assets in equities, which the Group
believes offer the best returns over the long term commensurate with an acceptable
level of risk. The pension funds also have a proportion of assets invested in
property, bonds and cash. The majority of the assets are managed by a number
of external fund managers with a small proportion managed in-house. Unilever
has a pooled investment vehicle (Univest) which it believes offers its pension
plans around the world a simplified externally managed investment solution to
implement their strategic asset allocation models initially for equities. The
aim is to provide a high quality, well diversified risk controlled
solution. Significant changes after the balance sheet dateOn 1 January 2007, Unilever completed
the restructuring of its Portuguese businesses. The result of the reorganisation
is that Unilever now has a 55% share of the consolidated Portuguese entity, called
Unilever
Jerónimo Martins. The consolidated business includes the foods and home
and personal care businesses. The remaining 45% interest is held by Jerónimo
Martins Group. The structure of the agreement is such that there is joint control
of the newly formed entity and so it will be accounted for by Unilever as a joint
venture. On 12 March 2007, Unilever announced the commencement of a share buy-back programme.
This will involve the purchase in 2007 of ordinary shares of NV or PLC, or a
combination of the two, up to an aggregate market value
of €1.5 billion. The value of the shares purchased will be booked against
equity under the heading of Other reserves, in line with established practice.
As at 19 March 2007, 1 967 782 ordinary shares of NV had been purchased at prices
between €19.55 and €21.41 per share. These shares will be held as
treasury shares.




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Introduction Unilever constantly keeps its corporate governance arrangements under review.
NV and PLC are subject to various corporate governance requirements and best
practice codes, the most relevant being those in the Netherlands, the United
Kingdom and the United States. It is Unilevers practice to comply, where
practicable, with the highest level of these codes and respond to developments
appropriately. The Unilever GroupUnilever N.V. and Unilever PLC are
the two parent companies of the Unilever Group. Together with the group companies,
NV and PLC operate effectively as a single economic entity. This is achieved
by a series of agreements between NV and PLC (the Foundation Agreements, see
page 39), together with special provisions in the Articles of Association of
NV and PLC. NV and PLC have the same Directors and adopt the same accounting
principles. Shareholders of both companies receive dividends on an equalised
basis. NV and PLC and their group companies constitute a single reporting entity
for the purposes of presenting consolidated accounts. Accordingly, the accounts
of the Unilever Group are presented by both NV and PLC as their respective consolidated
accounts. NV and PLC have agreed to co-operate in all areas and ensure that all group companies
act accordingly. NV and PLC are holding and service companies, and the business
activity of Unilever is carried out by their subsidiaries around the world. Shares
in group companies may ultimately be held wholly by either NV or PLC, or jointly
by the two companies, in varying proportions. NV was incorporated under the name Naamlooze Vennootschap Margarine Unie in the
Netherlands in 1927. Its objects and purposes are set out in Article 2 of its
Articles of Association. PLC was incorporated under the name Lever Brothers Limited
in England and Wales in 1894. Its objects and purposes can be found in Clause
3 of its Memorandum of Association. The two companies have different shareholder
constituencies and shareholders cannot convert or exchange the shares of one
company for shares of the other. NV is listed in Amsterdam and New York. PLC
is listed in London and New York. Unilever policiesThe implementation of and compliance
with our governance structure is facilitated through a business orientated policy
framework. Unilever policies are characterised by being universally applicable
within the Unilever Group. They are mandatory in effect and have been developed
to ensure consistency in key areas within our worldwide operations. They cover
operational and functional matters, and govern how we run our business, in order
to comply with applicable
laws and regulations. Unilever policies include: the Code of Business Principles; the Code of Ethics
for Senior Financial Officers, the Compliance Manual for the Listing Rules and
Disclosure and Transparency Rules (including the Unilever Share Dealing Code),
the Risk Management Policy, the Corporate Pensions Policy and the Accounting
and Reporting Policy.


The Code of Business Principles is Unilevers statement of values and represents
the standard of conduct we require from all of our employees. Our Code of Ethics
applies to the senior executive, financial and accounting officers and comprises
the standards prescribed by the US Securities and Exchange Commission (SEC).
The Code of Business Principles Hotline provides for a confidential hotline,
not only to ensure that employees can anonymously submit concerns regarding accounting
and auditing issues but to handle all alleged violations of the Code of Business
Principles. Copies of the Code of Business Principles, the Code of Ethics and
the Share Dealing Code are posted on our website at www.unilever.com/investorcentre/corpgovernance. Our internal risk management and control systems are described on page 9. Developments in corporate governanceIn recent years there have been significant
developments
in Unilevers corporate governance structure. In 2004, the NV and PLC shareholders adopted proposals to create one-tier boards
with a majority of independent Non-Executive Directors. In 2005, shareholders approved a series of further changes to streamline management
and leadership. A separate Non-Executive Chairman and Group Chief Executive were
appointed. The Group Chief Executive established the Unilever Executive (UEx)
which comprises three Regional Presidents (for Europe, The Americas and Asia
Africa), two Category Presidents (for Foods and Home and Personal Care), the
Chief Financial Officer and the Chief HR Officer. The regions are responsible for performance, implementing proven brand mixes
and focusing on building capabilities with customers. The categories are responsible
for the entire brand development process, including innovation, brand positioning
and communication and category strategies. The interdependence between the regions
and categories allows us to exploit our global scale, while building on our deep
roots in local markets. Our HR and Finance functions concentrate on excellence
in human capabilities and cost-efficiencies across the Group. In 2006, following a thorough review of our corporate structure, shareholders
approved proposals to: •
    adapt Unilevers constitutional arrangements
    to allow greater flexibility to allocate assets between both parent companies;•
    simplify the relationship between NV and PLC shares by establishing a one-to-one equivalence in their economic interest in the Unilever Group
(this was achieved by a split of the NV shares and a consolidation of the PLC shares); and•
    allow shareholders the right to nominate candidates to the Boards, taking into account the need to ensure the unity of management.




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In 2007, Unilever plans to appoint its first independent Non-Executive Chairman, Michael Treschow, subject to his appointment as a Non-Executive Director at the AGMs. The text that follows describes the corporate
    governance arrangements since the 2006 AGMs. More information on our corporate
    governance arrangements is set out in The Governance of Unilever,
    the Boards statement of their internal arrangements, which can be found
    at www.unilever.com/investorcentre/corpgovernance. The BoardsThe Boards of NV and PLC comprise the same Directors and have the same Chairman. This ensures unity of governance and management by ensuring that all matters are considered by the Boards as a single intellect, reaching
the same conclusions on the same set of facts (save where specific local factors apply). The Boards are one-tier boards, comprising
    Executive Directors and, in a majority, Non-Executive Directors. The Boards
    have ultimate responsibility for the management, general affairs, direction
    and performance of the business as a whole. The responsibility of the Directors
    is collective, taking into account their respective roles as Executive Directors
    and Non-Executive Directors. The Executive Directors have additional responsibilities
    for the operation of our business as determined by the Group Chief Executive. Our Directors have set out a number of areas
    of responsibility which are reserved to themselves and other areas for which
    matters are delegated to the Group Chief Executive and committees whose actions
    are regularly reported to and monitored by the Boards. These are described
    on pages 35 to 38. Further details of how our Boards effectively operate as
    one board, govern themselves and delegate their authorities are set out in
    The Governance of Unilever, which can be found at www.unilever.com/investorcentre/corpgovernance. Appointment of DirectorsDirectors are appointed
    by shareholders at the AGMs. All existing Directors unless they are retiring
    submit themselves for election every year and shareholders can remove any
    of them by a simple majority vote. In order to seek to ensure that NV and PLC
    have the same Directors, the Articles of Association of NV and PLC contain
    provisions which are designed to ensure that both NV and PLC shareholders
    are presented with the same candidates for election as Directors. This is
    achieved through a nomination procedure operated by the Boards of NV and PLC
    through Unilevers Nomination Committee. The Nomination Committee, based on the evaluation
    of the Boards, its Committees and its individual members, recommends to the
    Boards a list of candidates for nomination at both the Annual General Meetings
    of NV and of PLC. In addition, since 2006 shareholders have been able to nominate
    Directors for this list but to do so they must put a resolution to both meetings
    in line with


local requirements for requisitioning a resolution.
    In order to ensure that the Boards remain identical, anyone being elected
    as a Director of NV must also be elected as a Director of PLC and vice versa.
    If an individual fails to be elected to both companies then he or she will
    be unable to take their place on the Boards. The provisions in the Articles of Association
    for appointingDirectors cannot be
    changed without the permission, in the case of NV, of the holders of the special
    ordinary shares numbered 1 - 2400 inclusive and, in the case of PLC, of the
    holders of PLC's deferred stock. The NV special ordinary shares may only be
    transferred to one or more other holders of such shares. The joint holders
    of both the NV special ordinary shares and the PLC deferred stock are N.V.
    Elma and United Holdings Limited, which are joint subsidiaries of NV and PLC.
    The boards of N.V. Elma and United Holdings Limited comprise the members of
    the Nomination Committee. Board meetingsOur Boards meet at least seven
    times a year to consider important corporate events and actions, such as: •
    approval of corporate strategy;•
    approval of the corporate Annual Plan;•
    review of risks and controls;•
    authorisation of major transactions;•
    review of the functioning of the Boards and their Committees;•
    preparation of the Annual Report and Accounts;•
    declaration of dividends;•
    agreement of quarterly results announcements;•
    convening of shareholders meetings;•
    nominations for Board appointments; and•
    approval of Board remuneration policy. In 2006 the Boards of NV and PLC met eight times. All our Executive Directors attended all meetings. All the Non-Executive Directors attended all meetings, except for Wim Dik who missed one meeting; Lynda Chalker,
David Simon and Jean-Cyril Spinetta who each missed two meetings, and Jeroen van der Veer who missed three meetings. Board meetings are normally held either in London or Rotterdam. The Chairman is assisted by the Joint Secretaries, who ensure that
the Boards are supplied with all the information necessary for their deliberations. The Chairman and the Joint Secretaries involve the Senior Independent Director (see page 36) in the arrangements for Board meetings. Board induction and trainingUpon election, Directors receive
    a comprehensive Directors Manual and are briefed thoroughly on their
    responsibilities. Updates on corporate governance developments and investor
    relations matters are frequent items at Board meetings.On-going
    training is provided for Directors by way of site visits, presentations, circulated
    updates, teach-ins and agenda items at Board or Board committee meetings on,
    among other things, Unilevers business, corporate governance, regulatory
    developments, and investor relations matters. In 2006, a Board meeting was
    held at Port Sunlight which included a visit to one of Unilevers Research
    and Development facilities.




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Board evaluationIn 2006, an independent firm,
    Board Consultants International (BCI), was commissioned to carry out an evaluation
    of the Boards, the Board committees, the Chairman and individual Directors.
    As part of the evaluation, Dr Florian Schilling from BCI conducted interviews
    with all Directors, the Joint Secretaries and two former Directors who had
    retired in 2006. He reported the outcome of the evaluation to the Chairman
    and the Senior Independent Director and to the Boards in February 2007. Board supportThe Joint Secretaries are available
    to advise all Directors and ensure that Board procedures are complied with.
    They are appointed and can be removed by the Boards. A procedure is in place to enable Directors,
    if they so wish, to seek independent professional advice at Unilevers
    expense. Board changesThe current Directors, with their
    biographies, are shown on page 46. All the Executive Directors held office
    throughout the year. Leon Brittan, Lynda Chalker, Wim Dik, David
    Simon and Jeroen van der Veer were re-elected as Non-Executive Directors of
    NV and PLC at the 2006 AGMs. In addition, Charles Golden, Byron Grote, Jean-Cyril
    Spinetta and Kees Storm were appointed as Non-Executive Directors. In 2006, David Simon became our Senior Independent
    Director, Vice-Chairman of NV and PLC, and Chairman of our Remuneration and
    Nomination Committees. Kees Storm became a member and Chairman of the Audit
    Committee. Charles Golden and Byron Grote became members of the Audit Committee.
    Jean-Cyril Spinetta became a member of the Remuneration and Nomination Committee. At the 2006 AGMs, Bertrand Collomb, Oscar
    Fanjul and Hilmar Kopper retired as Non-Executive Directors. At the 2007 AGMs all of the Executive Directors
    and the Non-Executive Directors, with the exception of Antony Burgmans, Lynda
    Chalker and Rudy Markham, who will be retiring at these meetings, will be
    nominated for re-election. Their colleagues would like to thank Antony, Lynda
    and Rudy for the enormous contribution they have made to Unilever during their
    association with the Group. In addition, four new Non-Executive Directors
    will be proposed for election at the 2007 AGMs. These are Genevieve Berger,
    Narayana Murthy, Hixonia Nyasulu and Michael Treschow. Genevieve Berger is
    a Professor of Biophysics and Medical Imaging at Paris University VI and Chairman
    of the Advisory Board Health for the EU Commission for Research.
    Narayana Murthy is co-founder and Chairman of Infosys Technologies Limited.
    Hixonia Nyasulu is a Non-Executive Director of Sasol Limited and Anglo Platinum
    and an Advisory Board Member of JP Morgan South Africa. Michael Treschow,
    who, if appointed, will become Unilevers new independent Chairman, is
    currently Chairman of Ericsson and Electrolux. He will be stepping down as
    Chairman


of Electrolux in April 2007. Their appointments
    will, should their nominations be approved by shareholders, bring further
    diversity of background and experience to the Boards. Professor Berger, Mr
    Murthy and Ms Nyasulu will, subject to their election as Directors, become
    members of the Corporate Responsibility and Reputation Committee. Biographical details for the new Non-Executive
    Directors are contained in the 2007 AGM Notices, and on our website at www.unilever.com/ourcompany/investorcentre. Chairman and Group Chief ExecutiveUnilever has a separate Non-Executive Chairman and Group Chief Executive. There is a clear division of responsibilities between their roles. The Chairman is primarily responsible for leadership of the Boards, ensuring
their effectiveness and setting their agendas. He is also responsible for ensuring that the Boards receive accurate, timely and clear information. The Group Chief Executive has been entrusted,
    within the parameters set out in the Articles of Association of NV and PLC
    and The Governance of Unilever, with all the Boards powers,
    authorities and discretions in relation to the operational management of Unilever.
    The Group Chief Executive has the authority to determine which duties regarding
    the operational management of the companies and their business enterprises
    will be carried out under his responsibility by one or more Executive Directors
    or by one or more other persons. This provides a basis for the Unilever Executive
    team (UEx) that reports to the Group Chief Executive. For UEx members
    biographies see page 47. For our business structure, please refer to About
    Unilever on page 5. Executive DirectorsAll
four Executive Directors are members of the UEx: the Group Chief Executive, the
Chief Financial Officer, the President, Europe and the President, Home and Personal
Care. Details on their responsibilities can be
found in The Governance of Unilever. The Executive Directors are full-time employees
    of Unilever. Information about their remuneration can be found in the report
    of the Remuneration Committee and on our website. We are currently updating
    our Directors service contract to take into account recent changes in
    the law and best practice, for example, those relating to age limits for directors. The Remuneration Committee takes the view
    that the entitlement of the Executive Directors to the security of twelve
    months notice of termination of employment is in line both with the
    practice of many comparable companies and the entitlement of other senior
    executives within Unilever. It is our policy to set the level of severance
    payments for Directors to no more than one years salary, unless the
    Boards, at the proposal of the Remuneration Committee, find this manifestly
    unreasonable given circumstances or unless dictated by applicable law. The Executive Directors submit themselves
    for re-election at the AGMs each year. The Nomination Committee carefully
    considers each nomination for reappointment.




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The Directors stop holding executive office on ceasing to be Directors. Those appointed prior to 2004 retire at the latest by the age of 62. Appointees from 2004 onwards retire at an age between 60 and 65, as decided
by either them or Unilever. We do not grant our Executive Directors any
    personal loans or guarantees. There are no family relationships between
    any of our Executive Directors, other key management personnel or Non-Executive
    Directors. None of our Executive Directors are elected or appointed under
    any arrangement or understanding. Executive Directors are to obtain approval
    from the Chairman for all outside Board appointments. Normally not more than
    one such appointment should be accepted. For Executive Directors biographies
    see page 46. Non-Executive DirectorsThe
Non-Executive Directors share responsibility for the execution of the Boards duties,
taking into account their specific responsibilities, which are essentially supervisory.
In particular, they comprise the principal external presence in the governance
of Unilever, and provide a strong independent element. See page 46 for their
biographies. Role and ResponsibilityThe key elements of the role and
    responsibilities of our Non-Executive Directors are: •
    supervision of and advice to the Group Chief Executive;•
    developing strategy with the Group Chief Executive;•
    scrutiny of performance;•
    controls;•
    reporting of performance;•
    remuneration of and succession planning for Executive Directors; and•
    governance and compliance. Our Non-Executive Directors are chosen for their broad and relevant experience and international outlook, as well as their independence. They form the Audit Committee, the Nomination Committee, the Remuneration
Committee and the Corporate Responsibility and Reputation Committee (formerly External Affairs and Corporate Relations Committee). The roles and membership of these key Board committees are described on page 37. The profile set by the Boards for the
Non-Executive Directors and the chart used for orderly succession planning can be seen on our website at www.unilever.com/investorcentre/corpgovernance. MeetingsThe Non-Executive Directors meet as a group, without the Executive Directors present, under the chairmanship of the Senior Independent Director. In 2006 they met twice as a group. In addition, the Non-Executive Directors usually meet before each Board meeting with the
Chairman, the Group Chief Executive and the Joint Secretaries.


Senior Independent DirectorOur Non-Executive Directors have appointed David Simon as Senior Independent Director. He acts as their spokesman. The Senior Independent Director is consulted by the Chairman on the agenda and arrangements for Board
meetings. He is also, in appropriate cases, a point of contact for shareholders and other stakeholders. TenureOur Non-Executive Directors submit
    themselves for re-election each year. Their nomination for re-election is
    subject to continued good performance which is evaluated by the Boards, based
    on the recommendations of the Nomination Committee. The Nomination Committee
    carefully considers each nomination for reappointment. The Non-Executive Directors
    normally serve for a maximum of nine years. RemunerationThe remuneration of the Non-Executive
    Directors is determined by the Boards, within the overall limit set by the
    shareholders at the AGMs in 2006, and it is reported on page 61. Details of
    the engagement of our Non-Executive Directors can be seen on the Unilever
    website. IndependenceTaking into account the role of
    Non-Executive Directors, which is essentially supervisory, and the fact that
    they make up the key committees of the Boards, it is important that our Non-Executive
    Directors can be considered to be independent. Our definition of independence for Directors is set out in The Governance of Unilever. It is derived from the applicable definitions in use in the Netherlands, UK and US. Our current
Non-Executive Directors are considered to be independent of Unilever, with the exception of Antony Burgmans. Our Boards reached this conclusion after conducting a thorough review of all relevant relationships of the Non-Executive Directors, and
their related or connected persons. A number of relationships, such as non-executive
    directorships, exist between various of our Non-Executive Directors and companies
    that provide banking, insurance or financial advisory services to Unilever.
    Our Boards considered in each case the number of other companies that also
    provide or could readily provide such services to Unilever, the significance
    to those companies of the services they provide to Unilever, the roles of
    the Non-Executive Directors within those companies and the significance of
    that role to our Non-Executive Directors. It concluded that none of these
    relationships threaten the independence of the Non-Executive Directors concerned.
    For example, the Boards have satisfied themselves that Leon Brittans
    position at UBS Investment Bank does not involve him in any way in its broking
    relationship with Unilever. They have noted that Lynda Chalkers involvement
    in consultancy services for Unilever had been terminated before she was elected
    a Non-Executive Director in May 2004. The Boards have formed the view that
    the fact that Antony Burgmans was a member of the Supervisory Board of ABN
    AMRO until April 2006 and that David Simon is a senior adviser of Morgan Stanley
    International, were not material.




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The Boards consider that the Executive Directorship of Byron Grote combined with the Non-Executive Directorship of Antony Burgmans of BP p.l.c. does not affect Dr Grotes status as independent in relation to his
Non-Executive Directorship of Unilever. The Boards also consider that Jean-Cyril Spinettas position as Chairman/CEO of Air France-KLM SA combined with Kees Storms Chairmanship of the Supervisory Board of KLM Royal Dutch Airlines N.V.
does not affect their status as independent in relation to their Non-Executive Directorships of Unilever. Antony Burgmans, who before May 2005 was
    an Executive Director, is not considered to be independent. The Nomination
    Committee and the Boards nominated him for election as a Non-Executive Director
    in 2005 because of his thorough knowledge of Unilever and its operations.
    Antony Burgmans will be succeeded by Michael Treschow as an independent Chairman
    at the AGMs in 2007, subject to his election as a Non-Executive Director. None of our Non-Executive Directors are elected
    or appointed under any arrangement or understanding. Board committeesThe Boards have established the following committees, all formally set up by Board resolution with carefully defined remits. They are made up solely of Non-Executive Directors with the exception of the Corporate
Responsibility and Reputation Committee which has an Executive Director as a member, and report regularly to the Boards. The remits can be found on our website. Audit CommitteeThe Audit Committee is comprised
    only of independent Non-Executive Directors with a minimum requirement of
    three. It is chaired by Kees Storm, and its other members are Wim Dik, Charles
    Golden and Byron Grote. The Committee met five times in 2006, and the members
    attended all meetings. The Boards have satisfied themselves that all the current
    members of the Committee are competent in financial matters and have recent
    and relevant experience and that, for the purposes of the US Sarbanes-Oxley
    Act of 2002, Kees Storm is the Audit Committees financial expert. The
    Committees meetings are attended, by invitation, by the Chief Financial
    Officer, the General Counsel, the Deputy Chief Financial Officer, the Chief
    Auditor and our external auditors. The Audit Committee assists the Boards in
    fulfilling their oversight responsibilities in respect of the integrity of
    Unilevers financial statements; risk management and internal control
    arrangements; compliance with legal and regulatory requirements; the performance,
    qualifications and independence of the external auditors; and the performance
    of the internal audit function. The Committee is directly responsible, subject
    to local laws regarding shareholder approval, for the nomination, compensation
    and oversight of the external auditors. The Audit Committee is fully compliant with
    the rules regarding audit committees that are applicable in the Netherlands,
    UK and US. The Committees responsibilities and powers are fully aligned
    with all requirements in the UK, US and the Netherlands.


The Audit Committee is supplied with all
    information necessary for the performance of its duties by the Chief Auditor,
    Chief Financial Officer, and Deputy Chief Financial Officer. Both the Chief
    Auditor and the external auditors have direct access to the Audit Committee
    separately from management. See page 63 for the Report of the Audit Committee
    to the shareholders. Nomination CommitteeOur Nomination Committee comprises
    a minimum of three independent Non-Executive Directors. It is chaired by David
    Simon and its other members are Jean-Cyril Spinetta, Jeroen van der Veer and
    Antony Burgmans. It met six times in 2006 and the members attended all meetings
    except that David Simon was absent for one meeting. The Committee recommends
    to the Boards candidates for the positions of Director. It also has responsibilities
    for succession planning and oversight of corporate governance matters. It
    is supplied with information by the Joint Secretaries. See page 48 for the Report of the Nomination
    Committee to shareholders. Remuneration CommitteeOur Remuneration Committee comprises
    three independent Non-Executive Directors. It is chaired by David Simon and
    its other members are Jean-Cyril Spinetta and Jeroen van der Veer. It met
    six times in 2006 and the members attended all meetings except that David
    Simon was absent for one meeting. The Committee reviews Directors remuneration
    and is responsible for the executive share-based incentive plans. It determines,
    within the parameters set by our shareholders, specific remuneration arrangements
    for each of the Executive Directors, the remuneration scales and arrangements
    for Non-Executive Directors and the remuneration of the tier of management
    directly below the Boards. The Committee is supplied with information by Jan
    van der Bijl, Joint Secretary of Unilever. The detailed report of the Remuneration Committee
    to shareholders on Directors remuneration is on pages 49 to 62. Corporate Responsibility and Reputation
    CommitteeThe Corporate Responsibility and
    Reputation Committee currently comprises four Non-Executive Directors and
    one Executive Director. It is chaired by Lynda Chalker and its other members
    are Leon Brittan, Antony Burgmans, Wim Dik and Ralph Kugler. Following the
    2007 AGMs, subject to their election, Leon Brittan will chair the Committee
    and its members will be Genevieve Berger, Ralph Kugler, Narayana Murthy and
    Hixonia Nyasulu. The Committee, which replaced the External Affairs and Corporate
    Relations Committee, has responsibility for the oversight of Unilevers
    conduct with regard to its corporate and societal obligations and its reputation
    as a responsible corporate citizen. See page 64 for the Report of the Corporate
    Responsibility and Reputation Committee to shareholders.




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Routine business committeesCommittees are also set up to
    conduct routine business as and when they are necessary. They comprise any
    two of the Directors and certain senior executives and officers. They administer
    or implement certain matters previously agreed by our Boards or the Group
    Chief Executive. The Joint Secretaries are responsible for the operation of
    these committees. Disclosures CommitteeThe Boards have set up a Disclosures Committee which is responsible for helping the Boards ensure that financial and other information that ought to be disclosed publicly is disclosed in a timely manner and that the
information that is disclosed is complete and accurate. The Committee comprises the Deputy Chief Financial Officer, the Joint Secretaries and the Group Treasurer. Directors  Various formal
mattersThe borrowing powers of NV Directors on behalf of NV are not limited by the Articles of Association of NV. PLC Directors have the power to borrow on behalf of PLC up to three times the adjusted capital and reserves of
PLC, as defined in its Articles of Association, without the approval of shareholders (any exceptions requiring an ordinary resolution). The Articles of Association of NV and PLC
    do not require Directors of NV or Directors of PLC to hold shares in NV or
    PLC. However, the remuneration arrangements applicable to our Executive Directors
    require our Executive Directors to build and retain a personal shareholding
    in Unilever equal to at least 150% of their annual base pay. Directors  IndemnificationDirectors indemnification,
    including the terms thereof, is provided for in Article 19 of NVs Articles
    of Association. The power to indemnify directors is provided for in PLCs
    Articles of Association. Deeds of indemnity have been issued to all PLC Directors.Appropriate Directors and Officers
    liability insurance is in place for all Unilever Directors. Directors  Conflicts
of interestWe attach special importance to avoiding conflicts of interest between on the one hand NV and PLC and on the other hand their Directors. The Boards are responsible for ensuring that there are rules in place to avoid
conflicts of interest by Board members. Shareholder matters Relations with shareholders and other investorsWe believe it is important both
    to explain our business developments and financial results to investors and
    to understand their objectives. The Chief Financial Officer has lead responsibility
    for investor relations, with the active involvement of the Group Chief Executive.
    They are supported by our Investor Relations department which organises presentations
    for analysts and investors. Such presentations are generally made available
    on our website. Briefings on quarterly results are given via teleconference
    and are accessible by telephone or via our website. For further information
    visit our website at www.unilever.com/investorcentre.


The Boards are regularly briefed on reactions
    to the quarterly results announcements. They, or the relevant Board Committee,
    are briefed on any issues raised by shareholders that are relevant to their
    responsibilities. Our shareholders can, and do, raise issues
    directly with the relevant Executive Director or the Chairman and, if appropriate,
    a relevant Non-Executive Director or the Senior Independent Director. Both NV and PLC communicate with their respective
    shareholders through the AGMs as well as responding to their questions and
    enquiries during the course of the year. We take the views of our shareholders
    into account and, in accordance with all applicable legislation and regulations,
    may consult them in an appropriate way before putting major new proposals
    to our AGMs. General Meetings of shareholdersThe business to be conducted at
    the AGMs of NV and PLC is set out in the separate Notices of AGM for NV and
    PLC. It includes appointment of Directors, declaration/approval of final dividend,
    appointment of external auditors, approval of changes to the Articles of Association,
    and authorisation for the Boards to allot and repurchase shares, and to restrict
    pre-emptive rights of shareholders. At the AGMs, a full account is given of the
    progress of the business over the last year and there is a review of current
    issues. Shareholders are encouraged to attend the meetings and ask questions,
    and the question-and-answer sessions form an important part of the meetings. General Meetings of shareholders of NV and
    PLC are held at times and places decided by our Boards. NV meetings are held
    in Rotterdam and PLC meetings are held in London on consecutive days. The
    notices calling the meeting normally go out more than thirty days prior to
    the meetings and include further information on how to gain access to the
    AGMs and how to vote by proxy. We welcome our external auditors to the AGMs
    and they are entitled to address the meetings. We are committed to efforts to establish
    more effective ways of communication with our shareholders around the AGMs.
    Electronic communication is becoming an important medium for shareholders,
    providing ready access to shareholder information and reports, and for voting
    purposes. NV was one of the founders of the Dutch
    ShareholdersCommunication Channel.
    NV shareholders participating in the Dutch Shareholders Communication
    Channel are able to appoint electronically a proxy to vote on their behalf
    at the NV AGM and NV shareholders who wish to participate should contact their
    bank or broker. Shareholders of PLC in the United Kingdom can choose to receive
    electronic notification that the Annual Review, Annual Report and Accounts
    and Notice of AGMs have been published on our website, instead of receiving
    printed copies, and can also electronically appoint a proxy to vote on their
    behalf at the AGM. Registration for electronic communication by shareholders
    of PLC can be made at www.unilever.com/shareholderservices.




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Voting rightsTo be entitled to attend and vote
    at NV General Meetings shareholders must hold their NV shares on the record
    date, which is set by the Directors and is not more than thirty days before
    the meeting. Shareholders do not need to block their shares. NV shareholders
    can cast one vote for each €0.16 nominal capital that they hold. This
    means that they can cast one vote for each NV ordinary share, or NV New York
    Registry Share. Shareholders can vote in person or by proxy. Similar arrangements
    apply to holders of depositary receipts issued for NV shares and the holders
    of NV preference shares (see pages 41 and 42). PLC shareholders can cast one vote for each
    1.4p nominal capital that they hold. This means that one vote equals 9/20ths
    of a share. Shareholders can vote in person at the meeting or by proxy. Proxies
    should be submitted to the Registrars, Computershare Investor Services PLC,
    whose details can be found on page 159, at least 48 hours before the AGM.
    Shareholders at the PLC 2007 AGM are, however, being asked to approve a change
    in the voting rights of PLCs ordinary shares designed to bring the voting
    arrangements into line with the consolidation of ordinary shares of 31/9p
    approved at the 2006 AGM. This will result in one vote for each 31/9p of
    nominal capital instead of 1.4p of nominal capital. More information on the exercise of voting
    rights can be found in NVs and PLCs Articles of Association and
    in the respective Notices of Meetings. Holders of NV New York Registry Shares or
    PLC American Depositary Receipts of shares will receive a proxy form enabling
    them to authorise and instruct ABN AMRO N.V. or Citibank, N.A. respectively
    to vote on their behalf at the shareholders meeting of NV or PLC. N.V.
    Elma and United Holdings Limited (the holders of NVs special shares),
    other group companies of NV which hold ordinary or preference shares, and
    United Holdings Limited, which owns half of PLCs deferred stock, are
    not permitted to vote at General Meetings. Voting on each of the resolutions contained
    in the Notice of AGMs is conducted by poll. The final vote is published at
    the meetings and the outcome of the votes, including the proxy votes, is put
    on Unilevers website. For each resolution, proxy appointment forms in
    2006 provided PLC shareholders with the option to direct their proxy to vote
    either for or against the resolution or to abstain. In 2007, proxy appointment
    forms will replace the abstain option with a vote withhold option. Future
    PLC proxy forms and voting result announcements will make it clear that a
    vote withheld is not a vote in law, and will not be counted in the calculation
    of the proportion of votes for and against the resolution voted on. Shareholder proposed resolutionsShareholders of NV may propose
    resolutions if they individually or together hold 1% of NVs issued capital
    in the form of shares or depositary receipts for shares, or if they individually
    or together hold shares or depositary receipts worth at least €50 million.
    They must submit these requests at least 60 days before the date of the General
    Meeting, and the request will be honoured unless, in the opinion of the Boards,
    it is against a substantive interest of the Company. Shareholders who together
    represent at least 10% of the issued capital of NV can also requisition Extraordinary
    General Meetings to deal with specific resolutions.


Shareholders who together hold shares representing
    at least 5% of the total voting rights of PLC, or 100 shareholders who hold
    on average £100 each in nominal value of PLC capital, can require PLC
    to propose a resolution at a General Meeting. PLC shareholders holding in
    aggregate one-tenth of the issued ordinary shares of PLC are able to convene
    a general meeting of PLC. Required majoritiesResolutions are usually adopted
    at NV and PLC shareholder meetings by an absolute majority of votes cast,
    unless there are other requirements under the applicable laws or NVs
    or PLCs Articles of Association. For example, there are special requirements
    for resolutions relating to the alteration of the Articles of Association,
    the liquidation of NV or PLC and the alteration of the Equalisation Agreement
    (see below). A proposal to alter the Articles of Association
    of NV can only be made by the Board of Directors. Such a proposal requires
    the prior approval of the meeting of the holders of the special shares. A
    proposal to alter the Memorandum and Articles of Association of PLC can be
    made either by the Board of Directors or by shareholders in the manner permitted
    under the United Kingdom Companies Act 1985. Proposals to alter the provisions
    in the Articles of Association of NV and PLC relating to the unity of management
    require the prior approval of meetings of the holders of the NV special shares
    and the PLC deferred stock. Copies of the Articles of Association of NV and
    the Memorandum and Articles of Association of PLC can be found on our website. Right to hold sharesUnilever places no limitations
    on the right to hold NV and PLC shares. Foundation Agreements Equalisation AgreementThe
  Equalisation Agreement makes the position of the shareholders of NV and PLC,
  as far as possible, the same as if they held shares in a single company. The
  Agreement regulates the mutual rights of the shareholders of NV and PLC. Under
  the Equalisation Agreement, NV and PLC must adopt the same financial periods
  and accounting policies. Dividends are paid in accordance with a formula relating
  to the nominal values of NVs and PLCs issued share
  capital. Since the AGMs in 2006, each NV Ordinary
    share represents the same underlying economic interest in the Unilever Group
    as each PLC Ordinary share. We pay ordinary dividends for NV and PLC
    on the same day. NV and PLC allocate funds for the dividend from their parts
    of our current profits and free reserves. We pay the same amount on each NV
    share as on one PLC share calculated at the relevant exchange rate. For interim
    dividends this exchange rate is the average rate for the quarter before we
    declare the dividend. For final dividends it is the average rate for the year.
    In arriving at the equalised amount we include any tax payable by the Company
    in respect of the dividend, but calculate it before any tax deductible by
    the Company from the dividend. The Equalisation Agreement provides that
    if one company had losses, or was unable to pay its preference dividends,
    the loss or shortfall would be made up out of:




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•
    the current profits of the other company (after it has paid its own preference shareholders);•
    then its own free reserves; and•
    then the free reserves of the other company. If either company could not pay its ordinary dividends, we would follow the same procedure, except that the current profits of the other company would only be used after it had paid its own ordinary shareholders and if
the Directors thought this more appropriate than, for example, using its own free reserves. So far, NV and PLC have always been able
    to pay their own dividends, so we have never had to follow this procedure.
    If we did, the payment from one company to the other would be subject to any
    United Kingdom and Dutch tax and exchange control laws applicable at that
    time. Under the Equalisation Agreement, the two
    companies are permitted to pay different dividends in the following exceptional
    circumstances: •
    If the average annual sterling/euro exchange rate changed so substantially from one year to the next that to pay equal dividends at the
current exchange rates, either NV or PLC would have to pay a dividend that was unreasonable (that is to say, substantially larger or smaller in its own currency than
the dividend it paid in the previous year); or•
    The governments of the Netherlands or the United Kingdom could in some circumstances place restrictions on the proportion
    of a companys
profits which can be paid out as dividends. This could mean that in order to pay equal dividends one company would have to pay out an amount which would breach the limitations in place at the time, or that the other company would have to pay a smaller dividend. In either of these rare cases, NV and PLC could pay different amounts of dividend if the Boards thought it appropriate. The company paying less than the equalised dividend would put the difference between the dividends
into a reserve: an equalisation reserve in the case of exchange rate fluctuations, or a dividend reserve in the case of a government restriction. The reserves would be paid out to its shareholders when it became possible or reasonable to do so,
which would ensure that the shareholders of both companies would ultimately be treated the same. If both companies were to go into liquidation,
    NV and PLC would each use any funds available for shareholders to pay the
    prior claims of their own preference shareholders. Then they would use any
    surplus to pay each others preference shareholders, if necessary. After
    these claims had been met, they would pay out any equalisation or dividend
    reserve to their own shareholders before pooling the remaining surplus. This
    would be distributed to the ordinary shareholders of both companies on an
    equal basis. If one company were to go into liquidation, we would apply the
    same principles as if both had gone into liquidation simultaneously. In principle, issues of bonus shares and
    rights offerings can only be made in ordinary shares. Again we would ensure
    that shareholders of NV and PLC received shares in equal proportions. The
    subscription price for one new NV share would have to be the same, at the
    prevailing exchange rate, as the price for one


new PLC share. Neither company can issue
    or reduce capital without the consent of the other. The Articles of Association of NV establish
    that any payment under the Equalisation Agreement will be credited or debited
    to the income statement for the financial year in question. Under Article 2 of the Articles of Association
    of NV and Clause 3 of the Memorandum of Association of PLC, each company is
    required to carry out the Equalisation Agreement with the other. Both documents
    state that the Agreement cannot be changed or terminated without the approval
    of shareholders. For NV, the General Meeting can decide to alter or terminate
    the Equalisation Agreement at the proposal of the Board. The necessary approval
    of the General Meeting is then that at least one half of the total issued
    ordinary capital must be represented at an ordinary shareholders meeting,
    where the majority must vote in favour; and (if they would be disadvantaged
    or the agreement is to be terminated), at least two-thirds of the total issued
    preference share capital must be represented at a preference shareholders
    meeting, where at least three-quarters of them must vote in favour. For PLC,
    the necessary approval must be given by the holders of a majority of all issued
    shares voting at a General Meeting and the holders of the ordinary shares,
    either by three-quarters in writing, or by three-quarters voting at a General
    Meeting where the majority of the ordinary shares in issue are represented. In addition, Article 3 of the PLC Articles
    of Association states that PLCs Board must carry out the Equalisation
    Agreement and that the other provisions of the Articles of Association are
    subject to it. We are advised by counsel that these provisions
    oblige our Boards to carry out the Equalisation Agreement, unless it is amended
    or terminated with the required approval of the shareholders of both companies.
    If the Boards fail to enforce the Agreement, shareholders can compel them
    to do so under Dutch and United Kingdom law. A copy of the Equalisation Agreement can
    be found on our website at www.unilever.com/investorcentre/corpgovernance. The Deed of Mutual CovenantsThe Deed of Mutual Covenants provides
    that NV and PLC and their respective subsidiary companies shall co-operate
    in every way for the purpose of maintaining a common operating policy. In
    addition, they shall exchange all relevant information about their respective
    businesses  the intention being to create and maintain a common operating
    platform for the Unilever Group throughout the world. The Deed of Mutual Covenants
    illustrates some of the information which makes up this common platform, such
    as the mutual exchange and free use of know-how, patents, trade marks and
    all other commercially valuable information. The Deed contains provisions
    which allow the Directors of NV and PLC to take any actions to ensure that
    the dividend-generating capacity of each of NV and PLC is aligned with the
    economic interests of their respective shareholders. These provisions also
    allow assets to be transferred between NV and PLC and their associated companies
    (as defined in the Deed of Mutual Covenants) to ensure that assets are allocated
    in the most efficient manner. These arrangements are designed to create a
    balance between the two parent companies and the funds generated by them,
    for the benefit of their respective sets of shareholders.




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The Agreement for Mutual Guarantees of BorrowingUnder the Agreement for Mutual
    Guarantees of Borrowing between NV and PLC, each company will, if asked by
    the other, guarantee the borrowings of the other. The two companies can also
    agree jointly to guarantee the borrowings of their subsidiaries. These arrangements
    are used, as a matter of financial policy, for certain significant public
    borrowings. They enable lenders to rely on our combined financial strength. Combined earnings per shareWe
calculate earnings per share on a combined basis. The calculation is based on
the average amount of NVs and PLCs ordinary share capital in issue
during the year. In our combined earnings per share calculation,
    we assume that both companies will be able to pay their dividends out of their
    part of our profits. This has always been the case in the past, but if we
    did have to make a payment from one to the other it could result in additional
    taxes, and reduce our combined earnings per share. Further information about the calculation
    of earnings per share, including the calculation on a diluted basis, can be
    found in note 7 on page 87. Share capitalNVs
issued share capital on 31 December 2006 was made up of: •
    €274 356 432 split into 1 714 727 700 ordinary
    shares of €0.16 each;•
    €1 028 568 split into 2 400 ordinary shares
    numbered 1 to 2 400, known as special shares; and•
    €113 599 014 split into several classes (4%,
    6% and 7%) cumulative preference shares (financing preference shares). The total number of voting rights attached to NV's outstanding shares is shown hereunder: Total number of votes
        % of issued capital1 714 727 700 ordinary shares
        1 714 727 700
        70.532 400 special shares
        6 428 550
        0.26750 000 4% cumulativepreference shares
        200 906 250
        8.26161 060 6% cumulativepreference shares
        431 409 276
        17.7529 000 7% cumulativepreference shares
        77 678 312
        3.20 NV may issue shares not yet issued and grant rights to subscribe for shares only pursuant to a resolution of the General Meeting of Shareholders or of another corporate body designated for such purpose by a resolution
of the General Meeting. At the Annual General Meeting held on 8 May 2006 the Board of Directors was designated, in accordance with Articles 96 and 96a of Book 2 of the Netherlands Civil Code, as the corporate body which is authorised until 8
November 2007 to resolve on the issue of  or on the granting of rights to subscribe for  shares not yet issued and to restrict or exclude the statutory pre-emption rights that accrue to shareholders upon issue of shares, on the
understanding that this authority is limited to 10% of the issued share capital of the Company, plus an additional 10% of the issued share capital of the Company in connection with or on the occasion of mergers and acquisitions.


At the 2006 AGM the Board of Directors of
    NV was authorised, in accordance with Article 98 of Book 2 of the Netherlands
    Civil Code, until 8 November 2007 to cause the Company to buy in its own shares
    and depositary receipts therefor, within the limits set by law (10% of the
    issued share capital), either through purchase on a stock exchange or otherwise,
    at a price, excluding expenses, not lower than the nominal value of the shares
    and not higher than 10% above the average of the closing price of the shares
    on Eurolist by Euronext Amsterdam for the five business days before the day
    on which the purchase is made. PLCs issued share capital on 31 December
    2006 was made up of: •
    £40 760 420 split into 1 310 156 361 ordinary
    shares of31/9p each; and•
    £100 000 of deferred stock. The total number of voting rights attached to PLCs outstanding shares are shown hereunder: Total number of votes
        % of issued capital1 310 156 361 ordinary shares
        2 911 458 580
        99.76£100 000 deferred stock
        7 142 857
        0.24 Article 83 sets out the voting rights of members
  which are currently one vote for every 1.4p of capital. At the 2007 PLC AGM,
  a resolution will be proposed to amend Article 83 to state that every member
  shall have one
vote for every 31/9p nominal
of capital held of whatever class. The Board of Directors of PLC under sections
    80 and 89 United Kingdom Companies Act 1985 may, subject to the passing of
    the appropriate resolutions at a meeting of shareholders, issue shares within
    the limits prescribed within the resolutions. At the 2006 AGM the Directors
    were authorised to issue new shares pursuant to section 80 of that Act, limited
    to a maximum of £13 450 000 nominal value, and pursuant to section 89
    of that Act, to disapply pre-emption rights up to approximately 5% of PLCs
    issued ordinary share capital. These authorities are renewed annually. At the 2006 AGM the Board of Directors of
    PLC was authorised in accordance with its Articles of Association to make
    market purchases of its ordinary shares within the limits prescribed within
    the resolution until the earlier of the 12 months anniversary after the passing
    of the resolution or the conclusion of the 2007 AGM. Depositary receipts for NV sharesAs
at 1 March 2007, the majority (around 75%) of NVs ordinary shares and around 34% of NVs
7% cumulative preference shares are held by the Foundation Unilever NV Trust
Office (Stichting Administratiekantoor Unilever N.V.), a trust office with a
Board independent from Unilever. As part of its corporate objects, the Foundation
issues depositary receipts in exchange for these shares. These depositary receipts
are listed on Euronext Amsterdam, as are the
NV ordinary and 7% preference shares themselves. Holders of depositary receipts can under
    all circumstances exchange their depositary receipts for the underlying shares
    (and vice versa).




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Holders of depositary receipts are entitled to dividends that are paid on the underlying shares held by the Foundation. Foundation Unilever NV Trust Offices boardThe members of the board are Mr J H Schraven (Chairman), Mr P P de Koning, Prof Dr L Koopmans and Mr A A Olijslager. Their Biographies can be found on the website of the Foundation
www.administratiekantoor-unilever.nl. The Foundation reports periodically, but
    at least once a year, on its activities. Voting by holders of depositary receiptsAlthough the depositary receipts
    themselves do not formally have voting rights, holders of depositary receipts
    are in practice equated with shareholders. Holders of depositary receipts
    can attend NVs General Meetings, either personally or by proxy, and
    will then automatically, without limitation and under all circumstances, receive
    a voting proxy on behalf of the Foundation to vote on the underlying shares. Holders of depositary receipts not attending
    a shareholders meeting and who participate in the Dutch Shareholders
    Communication Channel can also issue binding voting instructions to the Foundation.
    The Foundation is obliged to follow these instructions. The same applies to
    holders of depositary receipts who instruct the Foundation outside the Shareholders
    Communication Channel. Voting by the Foundation Unilever NV Trust
    OfficeShares for which the Foundation
    has not granted voting proxies or for which it has not received voting instructions
    are voted on by the Foundation in such a way as it deems to be in the interests
    of the holders of the depositary receipts. This voting policy is laid down
    in the Conditions of Administration that apply to the depositary receipts.
    Both the Articles of Association and the Conditions of Administration can
    be found on the Foundations website. Specific provisions apply in the event that
    a meeting of holders of NV 7% cumulative preference shares is convened. If a change to shareholders rights
    is proposed, the Foundation will let shareholders know if it intends to vote,
    at least 14 days in advance if possible. It will do this by advertising in
    the press. Hitherto the majority of votes cast by ordinary
    shareholders at NV meetings have been cast by the Foundation. Unilever and
    the Foundation have a policy of actively encouraging holders of depositary
    receipts to exercise their voting rights in NV meetings. Unilever considers the arrangements of the
    Foundation appropriate and in the interest of NV and its shareholders given
    the voting rights attached to the financing preference shares and the relatively
    low attendance of the ordinary shares in its AGMs.


Foundation Unilever NV Trust Offices
    shareholdingFoundation NV Trust Offices
    shareholding fluctuates daily  its holdings on 1 March 2007 were: •
    NV ordinary shares of €0.16: 1 285 189 970 (74.95%);•
    NV 7% cumulative preference shares of €428.57:
    9 790 (33.76%);•
    NV 6% cumulative preference shares of €428.57:
    5 (0.00%); and•
    NV 4% cumulative preference shares of €42.86: 23 (0.00%). Further information on the Foundation, its arrangements and its activities can be found on its website at www.administratiekantoor-unilever.nl. Margarine Union (1930) Limited: Conversion RightsThe first Viscount Leverhulme
    was the founder of the company which became PLC. When he died in 1925, he
    left in his will a large number of PLC shares in various trusts. When the will trusts were varied in 1983,
    the interests of the beneficiaries of his will were also preserved. Four classes
    of special shares were created in Margarine Union (1930) Limited, a subsidiary
    of PLC. One of these classes can be converted at the end of the year 2038
    into 70 875 000 PLC ordinary shares of 31/9p each. This currently represents 5.4% of PLCs
    issued ordinary capital. These convertible shares replicate the rights which
    the descendants of the first Viscount would have had under his will. This
    class of the special shares only has a right to dividends in specified circumstances,
    and no dividends have yet been paid. PLC guarantees the dividend and conversion
    rights of the special shares. Requirements and compliance  generalUnilever is subject to corporate governance requirements in the Netherlands, the UK and as a foreign private issuer in the US. In the following section we report on our compliance with the corporate governance
regulations and best practice codes applicable in the Netherlands and the UK and we also describe compliance with corporate governance regulations in the US. Our governance arrangements are designed
    and structured to promote and further the interests of our companies and their
    shareholders. The Boards reserve the right, in cases where they decide such
    to be conducive to the interests of the companies and the enterprise connected
    therewith or our shareholders, to depart from that which is set out in the
    present and previous sections in relation to our corporate governance. Further
    changes will be reported in future Annual Reports and Accounts and, when necessary,
    through changes to the relevant documents published on our website. As appropriate,
    proposals for change will be put to our shareholders for approval. Further information can be found on our website
    and in The Governance of Unilever, the Boards own constitutional
    document. This describes the terms of reference of our Board Committees, including
    their full responsibilities. It will be kept up to date with changes in our
    internal constitutional arrangements that our Boards may make from time to
    time and it is available on our website and upon request.




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Requirements  the Netherlands GeneralNV is required to state in its
    Annual Report and Accounts whether it complies or will comply with the Principles
    (P) and best practice provisions (bpp) of the Dutch
    Corporate Governance Code (the Dutch Code) and, if it does not comply, to
    explain the reasons for this. As will be clear from the preceding description
    of our governance arrangements, NV complies with almost all of the principles
    and best practice provisions of the Dutch Code. The text that follows sets
    out areas of non-compliance, as well as certain statements that the Dutch
    Code invites us to make to our shareholders that are not included elsewhere
    in this Annual Report and Accounts. Board and Committee structuresNV is a multinational company
    with activities and shareholders located all over the world. It has a one-tier
    board, consisting of both Executive and, as a majority, Non-Executive Directors.
    We achieve compliance of our board arrangements with the Dutch Code, which
    is for the most part based on the customary two-tier structure in the Netherlands,
    by, as far as is possible and practicable, applying the provisions of the
    Dutch Code relating to members of a management board to our Executive Directors
    and the provisions relating to members of a supervisory board to our Non-Executive
    Directors. Management tasks not capable of delegation are performed by the
    Board. Reference is made to Ps II and III and corresponding bpps. Reference
    is also made to the UK Combined Code on Corporate Governance, which is fully
    tailored to the one-tier board model (see page 34). Role of the ChairmanThe Dutch Code recommends that
    in a one-tier board the chairman should neither be, nor have been, responsible
    for the day-to-day conduct of the business (bpp III.8.1) . Before his appointment
    as Non-Executive Chairman, Antony Burgmans was jointly responsible for the
    daily operations of NV and PLC. Thus he is not independent from Unilever.
    He was nominated as Non-Executive Chairman in 2005 because of his thorough
    knowledge of Unilever and its operations. In addition to his role as Chairman,
    the Board considered his knowledge of the business to be essential to see
    through the changes resulting from the structure review. Antony Burgmans will
    be succeeded by Michael Treschow as an independent Chairman at the AGMs in
    2007, subject to his appointment as Non-Executive Director. As Antony Burgmans was the only Non-Executive
    Director who is not independent from Unilever, NV complies with bpp. III.2.1
    of the Dutch Code. In addition to the Chairman, the Boards of
    NV and PLC have a Senior Independent Director who is appointed by the Non-Executive
    Directors and acts as their spokesperson.


Risk management and controlReference is made to page 66 where
    Unilevers control framework is described. This incorporates risk management,
    internal control procedures and disclosure controls and procedures. Our procedures
    cover financial, operational, social, strategic and environmental risks and
    regulatory matters. They are in line with the latest recommendations of Internal
    Control  Revised Guidance for Directors on the Combined Code published
    by the Internal Control Working Party of the Institute of Chartered Accountants
    in England and Wales in October 2005 (The Turnbull Guidance).
    On pages 9 and 10 we have identified certain specific risks that are areas
    of focus in 2007. Unilever has designed its internal risk management and control
    systems to provide reasonable (not absolute) assurance to ensure compliance
    with regulatory matters and to safeguard reliability of the financial reporting
    and its disclosures. The Board considers that the internal risk
    management and control systems are appropriate for our business and in compliance
    with bpp II.1.3. In bpp II.1.4 the Dutch Code invites our Board
    to make a statement on our internal risk management and control systems. In
    its report, published on 20 December 2005, the Corporate Governance Code Monitoring
    Committee has made recommendations concerning the application of this best
    practice provision. In accordance with its recommendation and in the light
    of the above, the Board believes that, as regards financial reporting risks: •
    the risk management and control systems provide reasonable assurance that this Annual Report does not contain any material
inaccuracies;•
    the risk management and control systems have worked properly in 2006;•
    there are no indications that the risk management and control systems will not work properly in 2007;•
    no material failings in the risk management and control systems were discovered in the year under review or the current year until the signing
of these accounts; and, as regards financial, operational, social, strategic, environmental and regulatory risks; and•
    no material failings in the risk management and control systems were discovered in the year under review. This statement is not a statement in accordance with the requirements of Section 404 of the US Sarbanes-Oxley Act. Share options and awardsIn line with bpp II.2.2, the awards
    and grants of shares and options to our Executive Directors are in the material
    cases subject to performance criteria, as referred to on pages 51 and 52 of
    the Report of the Remuneration Committee. The exception is the options over
    150 NV shares granted each year to our Executive Directors under the all-employee
    share option plan in the Netherlands, as described on pages 117 and 118. The
    Directors participation in this plan is seen as a stimulus for all employees
    to participate.




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Retention period of sharesThe Dutch Code recommends that
    shares granted to executive directors without a financial consideration must
    be retained for a period of at least five years (bpp II.2.3) . In 2001 we
    introduced a new remuneration policy with shareholder approval which requires
    our Executive Directors to build and retain a personal shareholding in Unilever
    equal to at least 150% of their annual base pay. We believe that this is in
    line with the spirit of the Dutch Code. Severance payIt is our policy to set the level
    of severance payments for Directors to no more than one years salary,
    unless the Board, at the proposal of the Remuneration Committee, finds this
    manifestly unreasonable given circumstances or unless otherwise dictated by
    applicable law (bpp II.2.7) . Regulations for transactions in securities
    in other 
    companiesThe Dutch Code recommends that
    a director shall give periodic notice of any changes in his holding of securities
    in other Dutch listed companies (bpp II.2.6 and bpp III.7.3) . Our Share Dealing
    Code provides that Directors are required, upon request, to disclose to the
    compliance officer their holdings and transactions in securities in other
    listed companies. We believe this requirement constitutes an appropriate arrangement. Conflicts of interestIn the event of a (potential)
    conflict of interest, the provisions of the Dutch Code (P II.3 and III.6)
    are applied. Conflicts of interest are not understood to include transactions
    and other activities between companies in the Unilever Group. Financing preference sharesNV issued 4%, 6% and 7% cumulative
    preference shares between 1927 and 1970. Their voting rights are based on
    their nominal value, as prescribed by Dutch law. The Dutch Code recommends
    that the voting rights on such shares should, in any event when they are newly
    issued, be based on their economic value rather than on their nominal value
    (bpp IV.1.2) . NV agrees with this principle but cannot unilaterally reduce
    voting rights of its outstanding shares. Anti-takeover constructions and control
    over the companyWith reference to bpp IV.3.9,
    NV has no anti-takeover constructions, in the sense of constructions that
    are intended solely, or primarily, to block future hostile public offers for
    its shares. Nor does it have any constructions whose specific purpose is to
    prevent a bidder, after acquiring 75% of the capital, from appointing or dismissing
    members of the Board and subsequently altering the Articles of Association.
    The acquisition through a public offer of a majority of the shares in a company
    does not under Dutch law preclude in all circumstances the continued right
    of the board of the company to exercise its powers. The relevant information
    which NV is required to disclose in accordance with the Decree dated 5 April
    2006 to implement Article 10 of Directive 2004/25/EC can be found in this
    document.


Provision of informationWe consider it important to comply
    with all applicable statutory regulations on the equal treatment of shareholders
    and provision of information and communication with shareholders and other
    parties (P IV.2 and P IV.3). Meetings of analysts and presentations
    to investorsWe have extensive procedures for
    handling relations with and communicating with shareholders, investors, analysts
    and the media (see description on page 38). The important presentations and
    meetings are conducted as far as practicable in accordance with bpp IV.3.1.
    Due to their large number and overlap in information, some of the less important
    ones are not announced in advance, made accessible to everyone or put on our
    website. Requirements  the United KingdomPLC is required, as a company
    that is incorporated in the United Kingdom and listed on the London Stock
    Exchange, to state how it has applied the principles and how far it has complied
    with the provisions set out in Section 1 of the Combined Code issued in 1998,
    as revised in 2003 (the Combined Code), appended to the United
    Kingdom Listing Rules. In the preceding pages we have described
    how we have applied the Principles and the provisions in the Combined Code.
    In 2006, Unilever complied with the Combined Code except in the following
    two areas: •
    Antony Burgmans, who before May 2005 was an Executive Director, is not considered to be independent. The Nomination Committee and the Board
nominated him for election as a Non-Executive Director in 2005 because of his thorough knowledge of Unilever and its operations. However, with the appointment of Michael Treschow as Chairman, subject to his appointment as a Non-Executive Director at the AGMs, Unilever will comply with the provision
that requires the Chairman to be independent on appointment; and•
    Due to the requirement for Unilever to hold two AGMs for its respective companies on consecutive days, it may not always be possible for all
Directors, and possibly the Chairmen of the Audit, Remuneration and Nomination Committees, to be present at both meetings. The Chairman therefore ensures that a majority of Directors attend both meetings and that at least one member of each Committee attends each AGM. Requirements  the United
StatesBoth NV and PLC are listed on
    the New York Stock Exchange and must therefore comply with such of the requirements
    of US legislation, such as the Sarbanes-Oxley Act of 2002, regulations enacted
    under US securities laws and the Listing Standards of the New York Stock Exchange
    as are applicable to foreign private issuers. In some cases the requirements
    are mandatory and in other cases the obligation is to comply or explain.




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| | Report of
      the Directors(continued)
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|Corporate governance(continued)
|-------------------------------
|                               



We have complied with the requirements concerning corporate governance that were in force during 2006. Attention is drawn in particular to the remit of the Audit Committee on page 37 and the Report of the Audit
Committee on page 63. Actions already taken to ensure compliance
    that are not specifically disclosed elsewhere or otherwise clear from reading
    this document include: •
    the issuance of a Code of Ethics for senior financial officers;•
    the issuance of instructions restricting the employment of former employees of the audit firm; and•
    the establishment of a policy on reporting requirements under the US Securities and Exchange Commission (SEC) relating to the standards of
professional conduct for US attorneys. In each of these cases, existing practices were revised and/or documented in such a way as to conform to the new requirements. The Code of Ethics applies to the senior
    executive, financial and accounting officers and comprises the standards prescribed
    by the SEC, and a copy has been posted on our website at www.unilever.com/investorcentre/corpgovernance. The Code of Ethics comprises an extract of
    the relevant provisions of Unilevers Code of Business Principles and
    the more detailed rules of conduct that implement it. The only amendment to
    these pre-existing provisions and rules that was made in preparing the Code
    of Ethics was made at the request of the Audit Committee and consisted of
    a strengthening of the explicit requirement to keep proper accounting records.
    No waiver from any provision of the Code of Ethics was granted to any of the
    persons falling within the scope of the SEC requirement in 2006.


We are required by US securities laws and
    the Listing Standards of the New York Stock Exchange to have an Audit Committee
    that satisfies Rule 10A-3 under the Exchange Act and the Listing Standards
    of the New York Stock Exchange (NYSE). We are fully compliant with these requirements.
    We are also required to disclose any significant ways in which our corporate
    governance practices differ from those typically followed by US companies
    listed on the NYSE. In addition to the information we have given you in this
    document about our corporate governance arrangements, further details are
    provided in The Governance of Unilever, which is on our website
    at www.unilever.com/investorcentre/corpgovernance. We are fully compliant with the Listing Standards of the New York Stock Exchange applicable to foreign private issuers. Our corporate governance practices do not significantly differ from those followed by US companies
listed on the New York Stock Exchange. We would also confirm that it is our practice,
    in accordance with our home country laws and practices, to give our shareholders
    the opportunity to vote on equity compensation plans.




|UnileverAnnual Report on Form 20-F 2006 | 45
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|Report
            of the Directors(continued) | 
|                                               | 

|Corporate governanceBiographical
    details
|--------------------------------------------
|                                            



Executive Directors Patrick CescauGroup Chief ExecutiveNationality: French. Aged 58. Group
    Chief Executive since April 2005. Joined Unilever 1973. Appointed Director
    4 May 1999. Previous posts include: Chairman, Unilever PLC and Vice-Chairman,
    Unilever N.V. 2004-2005. Foods Director 2001. Financial Director 1999. Controller
    and Deputy Financial Director 1998-1999. President, Lipton USA 1997-1998.
    President and CEO, Van den Bergh Foods USA 1995-1997. Chairman, Indonesia
    1991-1995. External appointments include: Non-Executive Director, Pearson
    plc and Conseiller du Commerce Extérieur de la France in the Netherlands. Kees van der GraafPresident
    EuropeNationality: Dutch. Aged 56.
    President Europe since April 2005. Joined Unilever 1976. Appointed Director
    12 May 2004. Previous posts include: Foods Director 2004, Business Group President,
    Ice Cream and Frozen Foods 2001. Executive Vice-President, Foods and Beverages
    Europe 1998. Senior Vice-President, Global Ice Cream category 1995. External
    appointments include: Board member, ECR (Efficient Consumer Response) and
    Member, IAB (International Advisory Board of the City of Rotterdam). Member,
    Supervisory Boards of ANWB Club (Algemene Nederlandse Wielrijdersbond) and
    ANWB B.V. Ralph Kugler1President Home and personal careNationality: British. Aged
    51. President Home and Personal Care since 1 April 2005. Joined Unilever 1979.
    Appointed Director 11 May 2005. Previous posts include: President Home and
    Personal Care Europe 2001. Business Group President, Latin America 1999. Chairman,
    Unilever Thai Holdings 1995. Chairman, Unilever Malaysia 1992. External appointments
    include: Non-Executive Director, InterContinental Hotels Group PLC. Rudy MarkhamChief Financial
    OfficerNationality: British. Aged
    61. Chief Financial Officer since April 2005. Joined Unilever 1968. Appointed
    Director 6 May 1998. Previous posts include: Financial Director 2000. Strategy
    & Technology Director 1998. Business Group President, North East Asia
    1996-1998. Chairman, Nippon Lever Japan 1992-1996. Chairman, Unilever Australasia
    1989-1992. Group Treasurer 1986-1989. External appointments include: Non-Executive
    Director, Standard Chartered PLC and Legal & General Group Plc. Non-Executive Directors Antony Burgmans1,2ChairmanNationality: Dutch. Aged 60.
    Appointed 2005. Joined Unilever 1972. Appointed Director 8 May 1991. Previous
    posts include: Chairman, Unilever N.V. and Vice-Chairman, Unilever PLC 1999-2005.
    Vice-Chairman, Unilever N.V. 1998. Business Group President, Ice Cream and
    Frozen Foods  Europe and Chairman, Unilever Europe Committee 1996-1998.
    Responsible for South European Foods business 1994-1996. Personal Products
    Co-ordinator 1991-1994. External appointments include: Member, Supervisory
    Board of Akzo Nobel N.V. and Non-Executive Director, BP p.l.c.


The Rt Hon The Lord Brittan of Spennithorne QC, DL1Nationality: British. Aged 67. Appointed 2000. Vice-Chairman, UBS Investment
    Bank and Chairman, UBS Limited. Member, International Advisory Committee of
    Total. Member, EuropeanCommission
    and Vice-President 1989-1999. Member, UK Government 1979-1986. Home Secretary
    1983-1985 and Secretary of State for Trade and Industry 1985-1986. The Rt Hon The Baroness Chalker of Wallasey3Nationality: British.
    Aged 64. Appointed 1998. Non-Executive Director, Group 5 (Pty) Ltd. and Equator
    Energy Limited. Member, International Advisory Board of Lafarge S.A. and Merchant
    Bridge & Co Ltd. UK Minister of State at the Foreign and Commonwealth
    Office 1986-1997. Professor Wim Dik1,7Nationality: Dutch. Aged
    68. Appointed 2001. Professor at Delft University of Technology. Chairman,
    Supervisory Boards of Tele Atlas N.V., Zesko Holding B.V. and N.V. Casema.
    Non-Executive Director, Aviva plc and LogicaCMG plc. Chairman and CEO, Koninklijke
    PTT Nederland (KPN) 1988-1998 and Koninklijke KPN N.V. (Royal Dutch Telecom)
    1998-2000. Minister for Foreign Trade, Netherlands 1981-1982. Charles Golden7Nationality: American.
    Aged 60. Appointed 2006. Executive Vice-President, Chief Financial Officer
    and Director, Eli Lilly and Company1996-2006.
    Non-Executive Director, Clarian Health Partners, Hillenbrand Industries, Inc.
    and Eaton Corporation. Member of Finance Committee, Indianapolis Museum of
    Art. Byron Grote7Nationality: American/British.
    Aged 59. Appointed 2006. Chief Financial Officer, BP p.l.c. Member of Advisory
    Council, Cornell University Johnson Graduate School of Management. The Lord Simon of Highbury CBE4,5,6,Vice-ChairmanNationality: British. Aged
    67. Appointed 2000. Non-Executive Director, Suez Group. Senior Advisor, Morgan
    Stanley International. UK Government
    Minister 1997-1999. Group Chief Executive, BP p.l.c. 1992-1995 and Chairman
    1995-1997. Jean-Cyril Spinetta2,9Nationality: French.
    Aged 63. Appointed 2006. Chairman and CEO of Air France  KLM S.A. Director,
    Saint-Gobain and Alitalia S.p.A 2002-2006. Permanent representative of Air
    France on Board of Directors of Le Monde Enterprises S.A. Kees Storm8Nationality: Dutch. Aged
    64. Appointed 2006. Chairman Executive Board AEGON N.V. 1993-2002. Chairman
    Supervisory Board KLM Royal Dutch Airlines N.V. Board member and Chairman
    of Audit Committee, InBev S.A. Board member and Audit Committee member, Baxter
    International Inc. Member, Supervisory Board, Pon Holdings B.V. Member, Supervisory
    Board, AEGON N.V. Jeroen van der Veer2,9Nationality: Dutch. Aged
    59. Appointed 2002. Chief Executive Royal Dutch Shell plc. Former Member,
    Supervisory Board of De Nederlandsche Bank 2000-2004.




1
        Member Corporate Responsibility and Reputation Committee2
        Member Nomination Committee3
        Chairman Corporate Responsibility and Reputation Committee4
        Chairman Nomination Committee5
        Chairman Remuneration Committee


6
        Senior Independent Director7
        Member Audit Committee8
        Chairman Audit Committee9
        Member Remuneration Committee




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| | Report of
      the Directors(continued)
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|Corporate governanceBiographical
        details (continued)
|------------------------------------------------------------
|                                                            



Unilever Executive (UEx)*Patrick CescauGroup Chief Executive(see previous details on page 46)Vindi BangaPresident FoodsNationality: Indian. Aged 52. Appointed President Foods April 2005.Joined Unilever 1977. Previous posts include: Business Group PresidentHome and Personal Care Asia 2004 in addition to Non-ExecutiveChairman, Hindustan Lever 2004-2005. Chairman and ManagingDirector Hindustan Lever 2000-2004.Kees van der GraafPresident Europe(see previous details on page 46)Ralph KuglerPresident Home and Personal Care(see previous details on page 46)Harish ManwaniPresident Asia AfricaNationality: Indian. Aged 53. Appointed President Asia Africa April2005. Joined Unilever 1976. He is also Non-Executive Chairman,Hindustan Lever. Previous posts include: Business Group President,Home and Personal Care, North America 2004. Business GroupPresident, Home and Personal Care, Latin America 2001 and SeniorVice President, Hair Care and Oral Care 2000.


Rudy MarkhamChief Financial Officer(see previous details on page 46)Sandy OggChief Human Resources OfficerNationality: American. Aged 53. Appointed Chief HR Officer April2005. Joined Unilever 2003. Previous posts include: SVP HumanResources, Foods 2003. Prior to joining Unilever he worked forMotorola in Change Management/Organisation Effectiveness toassist in the transformation of all Communications businesses.John Rice**President The AmericasNationality: American. Aged 55. Appointed President The AmericasApril 2005. Joined Unilever 1981. Previous posts include: BusinessGroup President, Unilever Foods, North America 2002 and UnileverBestfoods Latin America 2000.




|*  | UEx members are treated as
      executive officers and senior management for US purposes and key management
      personnel for IFRS purposes. Although Unilever intends to offer revised
      service agreements to members of UEx, the agreements are currently under
      negotiation with these individuals. All members of the UEx have existing
      agreements with varying terms, however, all agreements include a notice
      period of twelve months. Details of the remuneration paid and share awards
      are shown in aggregate in note 31 on page 122
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   | .                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|** | Unilever announced
      on 19 December 2006 that John Rice had decided to retire from Unilever in
      March 2007. He will be replaced on the Unilever Executive Team and as President,
      The Americas by Michael Polk. Michael is currently Group Vice President
      and President Unilever United States. Michael joined Unilever in 2003 after
      16 years at Kraft.                                                                                                                                                                                         



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|Report
            of the Directors(continued) | 
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|Report of the Nomination Committee
|----------------------------------
|                                  



CompositionDuring 2006 the Nomination
    Committee comprised three Independent Non-Executive Directors and the Chairman
    of Unilever. David Simon chaired the Committee from 9 May 2006, taking over
    from Bertrand Collomb. Other members in 2006 were Jean-Cyril Spinetta, as
    from 9 May 2006, and Jeroen van der Veer and Antony Burgmans. The Joint Secretaries
    act as secretaries to the Committee. The Boards are of the view that it is appropriate
    that the Chairman is included as a member of the Committee on the express
    condition that he does not participate in any discussion of his own position. RemitThe Committee recommends
    to the Boards candidates for the positions of Executive and Non-Executive
    Director, Chairman, Vice-Chairman and Senior Independent Director. The Committee
    is concerned with succession planning within the Boards. The Committee also
    has responsibility for oversight of all matters relating to corporate governance
    and brings any issues to the attention of the Boards. The Committee uses the
    services of recruitment consultants and other external experts. The Boards
    conduct a process of evaluation of their own performance each year. This includes
    a review of each Board Committees performance. The remit of the Committee and the information
    used by it for succession planning are available on our website www.unilever.com/investorcentre/corpgovernance.
    Also on the website are the procedures for evaluation of the Boards and individual
    Directors. The results of the evaluations are provided to the Committee when
    it discusses the nominations for election as Directors, who offer themselves
    for re-election every year. In nominating Directors to the Boards, the
    Committee follows an agreed Board Profile of potential Non-Executive Directors,
    which takes into account the roles of Non-Executive Directors set out in the
    Dutch Corporate Governance Code and the UK Combined Code. Under the terms
    of the Governance of Unilever the Boards should comprise a majority of Non-Executive
    Directors and the Profile provides that three of these have strong financial
    experience, and staff the Audit Committee. To represent Unilevers areas
    of interest, the Profile also indicates there should be a strong representation
    from Developing and Emerging markets as well as from Europe and North America.
    Non-Executives should be independent of Unilever and free from any conflicts
    of interest. The Profile looks at diversity in terms of nationality, race,
    gender and relevant expertise and directs that, wherever possible, the Boards
    should reflect Unilevers consumer base. For more details see www.unilever.com/investorcentre/corpgovernance.


Meetings of the CommitteeThe Committee met six times
    in 2006. All but one meeting were fully attended. The Committee proposed the
    nomination of all Directors offering themselves for re-election at the AGMs
    in 2006. In 2006, the Committee also proposed the nomination of four new Non-Executive
    Directors. These were Charles Golden, Byron Grote, Kees
    Storm and Jean-Cyril Spinetta. They were chosen specifically for their financial
    and general business expertise. The first three are members of the Audit Committee,
    with Kees Storm in the chair. Jean-Cyril Spinetta is a member of the Nomination
    Committee and the Remuneration Committee. During the year the Committee conducted the
    search for a new Chairman to succeed Antony Burgmans, who retires at the 2007
    AGMs. The Committee followed a thorough process supported by an independent
    consultant. The process resulted in the Committees recommendation to
    the Boards to nominate Michael Treschow as Antony Burgmans successor.
    The Committee is pleased to have identified an excellent candidate, who fully
    meets the criteria set for the Chairmans role. Upon appointment Michael
    Treschow will be the first independent non-executive Chairman of Unilever. The Committee has initiated the search process
    aimed at identifying candidates for the role of Chief Financial Officer, following
    the retirement of Rudy Markham at the 2007 AGMs. For this purpose an outside
    executive search firm has been engaged. Also with the support of independent consultants
    the Committee continued its search for new Non-Executive Directors to strengthen
    the Boards knowledge in IT and science as well as to increase representation
    from the D&E markets and enhance diversity of both background and expertise. The nominations of Genevieve Berger, Hixonia
    Nyasulu and Narayana Murthy are the result of this search. The Committee is
    of the view that they, if appointed, would be a very valuable addition to
    the Boards composition. The Committee commissioned an outside consultant
    to support it in carrying out the 2006 evaluation of the Boards, the Chairman,
    the individual Directors and the Board Committees. The results of this evaluation
    have been presented to and discussed by the Boards. The overall conclusion
    is that Boards and Board Committee performance is in line with that of its
    peer group.David SimonChairman
    of the Nomination CommitteeAntony Burgmans 
    Jean-Cyril Spinetta
    Jeroen van der Veer




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| | Report
            of the Directors(continued)
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|Report of the Remuneration Committee
|------------------------------------
|                                    



During 2006 the Committee has reviewed the remuneration policy and practice of the past few years, and on the basis of this experience has decided to prioritise five strategic principles to serve as the platform for
Unilevers approach to remuneration. This strategy is not only for our Executive Directors but for all Unilevers leadership levels. These principles, which improve the structure of our existing remuneration framework as explained in
greater detail in the following pages, are that pay should be: •
    robustly linked to performance;•
    aligned with strategic priorities;•
    aligned with shareholders interests;•
    market competitive; and•
    finally, easy to understand and communicate. Our overriding objective is to ensure that Unilever recruits and retains the
best performers and then optimises the return on investment from the reward system
for Unilevers leadership group. It is also our aim to manage the differing
elements of total remuneration in a fully integrated manner. The five principles will from 2007 provide the foundation of some important changes
to executive remuneration that we are proposing for the level and structure of
Unilever incentive plans. Our proposals have been the subject of consultation
with our major shareholders and their representatives. In summary, these changes
enhance variable rewards relative to fixed pay and simplify the share-based incentives.


The details of the proposed changes to Unilevers long-term incentive arrangements
are described in the Notices to Shareholders for the 2007 AGMs. In short, we believe that we have developed an approach which incorporates the
right mix and level of incentives for our leadership team which also aligns with
shareholders interests. It would also be more understandable and simpler
to communicate to our staff. The year 2006 showed a continuing improvement in top-line growth, whilst trading
contribution was proximate to but slightly below the targets we had set. To remain competitive the base salaries for the Unilever Executive team were
increased by an average of 3.9% from the beginning of 2006. Based on the performance
over 2006 the annual incentive awards were on average 52% of base salary across
the Unilever Executive team. However, in industry ranked terms we are not yet
in a payout position for the TSR Long-Term Incentive Plan. In 2007, we are strengthening the linkage between business performance and executive
rewards. We hope to see continued improvement in business results in 2007, with the leadership
team appropriately rewarded commensurate with these improved results.  David SimonChairman of the Remuneration CommitteeJean-Cyril Spinetta
Jeroen van der Veer




Definition of auditable part of the report of the Remuneration CommitteeIn
compliance with the UK Directors Remuneration Report Regulation 2002, and
under Title 9, Book 2 of the Civil Code in the Netherlands, the auditable part
of the report of the Remuneration Committee comprises
the ‘Aggregate remuneration for Executive Directors on page 55, the ‘Remuneration
for individual Executive Directors on page 55, the ‘Executive Directors Global
Performance Share Plan on page 56, the ‘Executive Directors conditional
share awards under the TSR Long-Term Incentive Plan on page 56, the ‘Executive
Directors Share Matching Plan on page 57, ‘Executive Directors share
options on page
58, ‘Executive Directors pensions on page 59, ‘Executive
Directors interests  share capital on page 60, ‘Non-Executive
Directors remuneration on page 61 and ‘Non-Executive Directors interests  share
capital on page 62.



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|Report
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|Report of the Remuneration Committee (continued)
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Unilever reward policy table 2006

|                               |                             | Indicative levels at face                                                                                                        |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|------------------------------ | --------------------------- | -------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|Element                        | Payment vehicle             | value as % of base pay                                                                                                           |  | Plan objectives/Key drivers                                                                                                                                                                                                    |  | Performance measures                                                                                                                                                                                                                                                                           | 
|                               |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|Short-term (one year)          |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|                               |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|Base salary                    | Cash                        | Market competitive                                                                                                               |  | Attraction and retention of                                                                                                                                                                                                    |  | Individual performance                                                                                                                                                                                                                                                                         | 
|                               |                             |                                                                                                                                  |  | key executives                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                | 
|                               |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|Annual incentive               | Cash (75%)
    Shares (25%) | Executive Director: 60% on target(range
      of 0%  100%)
      Group Chief Executive: 90% on target(range
      of 0%  150%) |  | Delivery of tradingcontribution
  (Unilevers primary internal measure of economic value added  see page 51) and top-line growth targets
      Individual responsibility for
        key Unilever business
        objectives |  | Trading contribution (Executive Director: 40%, Group Chief Executive: 50%)
      Underlying sales growth
        (Executive Director: 40%,
      Group Chief Executive: 50%)
      Individual contribution to Unilever business strategy (Executive Director: 20%, Group Chief Executive: 50%) | 
|                               |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|Long-term (three
    years)    |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|                               |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|Global
Performance 
Share Plan | Shares                      | Grant level: around 25%
      Vesting level:
            0%  200%
    of grant                                                  |  | Ungeared
              Free Cash Flow as the basic driver
      of Unilever shareholder returns
          Top-line growth as essential to Unilevers
    long-term value creation                                              |  | Ungeared Free Cash Flow (50%)
    Underlying sales growth (50%)                                                                                                                                                                                                                                | 
|                               |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|TSR Long-Term 
Incentive Plan  | Shares                      | Grant level: around 60%
      Vesting level:
            0%  200%
    of grant                                                  |  | Shareholder return at upper half of peer group with 20 other companies                                                                                                                                                         |  | Relative total shareholder return                                                                                                                                                                                                                                                              | 
|                               |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 
|Share Matching
Plan            | Shares                      | 25% of annual incentive earned in return for the deferral
of 25% of bonus earned                                                 |  | Alignment with shareholders interests                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                | 
|                               |                             |                                                                                                                                  |  |                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                | 



A significant proportion of the Executive Directors total reward is linked
to a number of key measures of Group performance to create alignment with the
strategy and business priorities. Depending on the level of performance the variable component could vary between
0% and around 70% of the total reward package (excluding pensions). Unilevers reward policy is benchmarked regularly against arrangements of
other global companies based in Europe. This ensures that Executive Directors reward
levels remain competitive. An internal comparison is made with the reward arrangements
for other senior executives within Unilever to support consistent application
of Unilevers
executive reward policies. In setting targets for the performance measures, the Committee is guided by what
needs to happen to drive underlying performance. This is reflected in both the
short-term and long-term performance targets.




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| |                                               
| | ----------------------------------------------
| | Report
            of the Directors(continued)
| |                                               

|Report of the Remuneration
        Committee (continued)
|--------------------------------------------------------
|                                                        



Base salaryThe Remuneration Committee reviews
base salary levels annually, taking into account external benchmarks in the context
of Group and individual performance. Annual incentiveThe annual incentive arrangement
rewards Executive Directors for the delivery of
trading contribution (Unilevers primary internal measure of economic value
added) and top-line growth targets, as well as for their individual contribution
to Unilevers business strategy. In 2006, the Group Chief Executive had a maximum opportunity of 150% of base
salary. The maximum level is only payable in the case of exceptional performance.
The opportunity for other Executive Directors in 2006 was
between 0% and 100%. The performance criteria for the annual incentive are: •
    Trading contribution: Unilevers primary internal measure of economic value added. It is calculated from Trading Result after a deduction
for tax and a charge for asset use. (Trading result is the internal management measure of profit that is the most consistent with operating profit). Increases in
trading contribution reflect the combined impact of top-line growth, margin improvement and capital efficiency gains. It is well aligned with our objective of a progressive improvement in return on invested capital and with shareholder value creation;•
    Underlying sales growth: focus on the organic growth of Unilevers turnover; and•
    Individual business targets: tailored to each individuals responsibilities to deliver certain business objectives supporting the
strategy. Individual contribution is assessed against robustly set measures and targets to ensure both objectivity and stretch. Achievement of targets is measured at the end of the year and the payment takes
place the following March. Part of the annual incentive (25%) is delivered to
the Executive Directors in the form of shares in NV and PLC, which are matched
by a conditional award of matching shares, as further described under
the section on long-term incentives below. Long-term incentivesThe long-term incentives for Executive
Directors in 2006 consist of three elements, all of which are delivered in shares: •
    Global Performance Share Plan;•
    TSR Long-Term Incentive Plan; and•
    Share Matching Plan (linked to the annual incentive). Executive Directors are required to demonstrate a significant personal shareholding
commitment to Unilever. Within five years of appointment, they are expected to
hold shares worth 150% of their annual base salary. This reinforces the link
between the executives and other shareholders.


Global Performance Share Plan (GPSP)Under the GPSP conditional rights over
shares in NV and PLC are awarded annually to Executive Directors. For Executive
Directors the value of a grant of conditional shares will not exceed 50% of base
salary. The number of shares actually received at the end of the performance
periods of the three years depends on the satisfaction of the performance targets. The performance measures for vesting are underlying sales growth (for 50% of
the award) and ungeared free cash flow (for 50% of the award). These are key
performance measures in Unilevers external reporting. Underlying sales
growth focuses on the organic growth of Unilevers turnover. Ungeared free
cash flow expresses the translation of profit into cash and thus longer-term
economic value. In respect of performance targets, there is a minimum and a maximum performance
range for each of the two measures and associated vesting levels. Each year,
the Remuneration Committee reviews the performance targets by taking account
of market conditions and internal financial planning. Total Shareholder Return (TSR)
Long-Term Incentive PlanThis plan
rewards Executive Directors for creating more value for Unilevers shareholders when compared with the investment returns generated by
competitors. Under this plan conditional rights over shares in NV and PLC are awarded annually
to Executive Directors. The level of conditional annual award in 2006 is as follows: •
    Group Chief Executive: Shares in NV and PLC to the combined value of €800 000; and•
    Other Executive Directors: Shares in NV and PLC to the combined value of €500 000. Vesting is subject to Unilevers relative TSR performance. TSR measures
the returns received by a shareholder, capturing both the increase in share price
and the value of dividend income (assuming dividends are
reinvested). Unilevers TSR performance is compared with a peer group of
competitors over a three-year performance period. The TSR results are compared
on a single reference currency basis. No shares will vest if Unilever is ranked below position 11 of the TSR ranking
table over the three-year period. Between 25% and 200% of the shares will vest
if Unilever is ranked in the top half of the table as shown
below: Vested award% of original conditionalTSR peer group ranking
        award that will vest12th to 21st
        0%10th or 11th
        25%8th or 9th
        50%5th to 7th
        100%3rd or 4th
        150%1st or 2nd
        200%




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|Report
            of the Directors(continued) | 
|                                               | 

|Report of the Remuneration
        Committee (continued)
|--------------------------------------------------------
|                                                        



Peer group:Avon
        KraftBeiersdorf
        LionCadbury Schweppes
        LOréalClorox
        NestléCoca-Cola
        OrklaColgate
        PepsicoDanone
        Procter & GambleHeinz
        Reckitt BenckiserKao
        Sara LeeKimberly-Clark
        Shiseido Share Matching Plan(linked
  to the annual incentive) The Share Matching Plan enhances the alignment with
  shareholders interests and supports the retention of key executives.
  In addition, the necessity to hold the shares for a minimum period of three
years supports the shareholding requirements set out on page 51. The Executive Directors receive 25% of their annual incentive in the form of
NV and PLC shares. These are matched with an equivalent number of matching shares.
The matching shares will vest after three years provided that the underlying
shares have been retained during this period and the Executive Director has not
resigned or been dismissed. The Remuneration Committee considers that there is no need for further performance
conditions on the vesting of the matching shares because the number of shares
is directly linked to the annual incentive (which is itself subject to demanding
performance conditions). In addition, during the three-year vesting period the
share price of NV and PLC will be influenced by the performance of Unilever.
This, in turn, will affect the ultimate value of the matching
shares on vesting. Executive Directors pensionsThe Remuneration Committee has decided
that from 2007 new Executive Directors will be members of the all-employee pension
arrangement of their home country. Executive Directors appointed prior to 2007
have a defined benefit pension of two-thirds of final salary payable at retirement
from age 60. Annual incentive is not pensionable except for Executive Directors
appointed prior to the change of policy for Executive Directors in 2005 for whom
annual incentive is
pensionable up to a maximum of 20% of base salary. Other benefits and allowancesExecutive Directors enjoy similar
benefits to many other employees of Unilever. For example, like other employees,
Executive Directors are able to participate in the UK Employee ShareSave Plan,
the UK Share Incentive
Plan (ShareBuy) and the All Employee Option Plan in the Netherlands. Some of the Executive Directors serve as a non-executive on the Board of another
company. Unilever requires that all remuneration and fees earned from outside
directorships are paid directly to Unilever.


Future developmentsChanges will be proposed for the
structure and level of the Unilever incentive plans. In summary these changes
enhance variable awards relative to fixed pay and simplify the share-based incentives. Details of the proposed changes to Unilevers long-term incentive arrangements
are described in the notice to shareholders for the 2007
AGMs. The Remuneration Committee intends to continue monitoring trends and changes
in the market. It keeps a watching brief on the continuing alignment between
Unilevers strategic objectives and the reward policy
for
Executive Directors. Commentary on Executive Directors Remuneration
paid in 2006The tables on pages 55 to 60 give
details of the specific
elements of Executive Directors reward packages in 2006. Base salaryIn 2006, base salary levels were
benchmarked against those paid in other major global companies based in Europe,
excluding companies in the financial sector. The increases for 2006 reflect the
change in market levels as well as individual and Group performance. The 2006
annual base salary levels for the Executive Directors are set out below: Based in the UKPatrick Cescau
        £ 972
 500Ralph Kugler
        £ 587 500Rudy Markham
        £ 664 500Based in the NetherlandsKees van der Graaf
        €798 000 Annual incentiveThe annual incentive awards for 2006
were subject to achievement of underlying sales growth and trading contribution
targets in combination with individual key strategic business targets. The Committee
measured the results against the targets set and determined the annual incentive
amounts for 2006. Long-term incentive arrangements •
        Global Performance Share PlanThe performance period of the first award ends on        31 December
2007 and therefore no award vested in 2006.The
second award was made in 2006 for the performance
period 2006-2008.•
        TSR PlanThe conditional shares awarded in 2003 lapsed in 2006 because the vesting was based on the TSR performance of Unilever (when ranked against its defined peer group with competitors) over the three-year performance
period which ended 31 December 2005. For this period, Unilever was ranked        14 in
this peer group and therefore no vesting
occurred for thisaward in March 2006 and the
shares lapsed.




|52 | UnileverAnnual Report on Form 20-F 2006
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| | ----------------------------------------------
| | Report
            of the Directors(continued)
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|Report of the Remuneration
        Committee (continued)
|--------------------------------------------------------
|                                                        



•
    Share Matching PlanThe matching shares originally granted in 2003
          on a conditional basis vested in 2006,
          subject to fulfilment of the retention conditions.•
    Executive Share OptionsThe grants of executive share options made
          in 2003 became exercisable as from 2006.
          As the 2003 grant was based on Unilevers
          EPS performance, the options at vesting were subject to
          no further conditions. PensionsThe Netherlands all-employee pension
plan benefit basis was changed from final salary to career average earnings at
31 December 2006. This had a small impact on the accrued pension of the Netherlands-based
Executive
Director. During 2006, in line with the treatment adopted for other UK-based employees,
individual contributions paid by Executive Directors in the UK are now paid through
a salary sacrifice arrangement. Non-Executive DirectorsThe Non-Executive Directors receive
fees from both NV and PLC. No other remuneration is given in respect of their
Non-Executive duties from either NV or PLC, such as annual incentives, share-based
incentives or pension
benefits. The level of their fees reflects their commitment and contribution to the companies.
The levels were increased in 2006 as a market analysis against Unilevers
peers showed that Unilever had fallen behind in this area. The Remuneration Committee
believes that the levels outlined below are fair in the light of the responsibilities
carried out by Non-Executive Directors and in view of the need to attract and
retain Non-Executive Directors of the appropriate
calibre and standing. The current fee levels are set out below: Non-Executive Role
        Fees payable by PLC
        Fees payable by NVChairman
        £175 000
        €255 000Senior Independent Director
        £45 000
        €65 000Chairman of Audit Committee
        £38 000
        €55 000Board Committee Chairman
        £35 000
        €50 000Other Non-Executive Directors
        £31 000
        €45 000 An additional £5 000 per meeting will be paid to Non-Executive Directors
who have to travel to meetings from outside Europe.


Other items Unilevers share performance relative to broad-based equity indicesThe UK Companies Act 1985 (schedule
7A) requires us to show Unilevers relative share performance, based on
Total Shareholder Return, against a holding of shares in a broad-based equity
index for the last five years. The Remuneration Committee has decided to show
Unilevers performance against two indices, namely the FTSE 100 Index, London,
and the Euronext AEX Index, Amsterdam as these are the most generally used indices
in the UK and the
Netherlands, where we have our principal listings. Five-Year Historical
TSR Performance Growth in the value of a hypothetical £100 holding over five years FTSE 100 comparison based on 30 trading day average values   Growth in the value
of a hypothetical investment over five years AEX comparison based on 30 day average
values




|UnileverAnnual Report on Form 20-F 2006 | 53
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|Report
            of the Directors(continued) | 
|                                               | 

|Report of the Remuneration
    Committee(continued)
|---------------------------------------------------
|                                                   



Remuneration committee

Role and responsibilitiesThe Committee is responsible for
making proposals to the Boards on the reward policy for Executive Directors.
It is also responsible for setting individual reward packages for Executive Directors
and for monitoring and approving all share-based incentive arrangements. The
Committee meets at least three times a year and, during 2006, it met on six occasions. Structure and roleBertrand Collomb stepped down as
Chairman of the Committee at the AGM 2006. At the same time David Simon became
the new Chairman of the Committee and Jean-Cyril Spinetta joined as member of
the Committee. The other Non-Executive Director of the Committee is Jeroen van
der Veer. Advice and assistanceThe Committee does not formally retain
remuneration consultants. It seeks professional advice from external advisers
as and when required. During 2006, the Committee sought advice from Towers Perrin
(an independent firm of human resources specialists) on market data, reward trends
and performance-related pay. Towers Perrin also provides general consultancy
advice to Unilever group companies on employee rewards, pension, communications
and other human resource
matters. The Group Chief Executive can be invited to attend Committee meetings to provide
his own insights to the Committee on business objectives and the individual performance
of his direct reports. Naturally, he does not attend when his own remuneration
is being discussed. The Non-Executive Chairman can, in his role as Chairman of the Board, also attend
the meetings.






|54 | UnileverAnnual Report on Form 20-F 2006
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| | ----------------------------------------------
| | Report
            of the Directors(continued)
| |                                               

|Report of the Remuneration
        Committee(continued)
|-------------------------------------------------------
|                                                       



The following section contains detailed information
    on
the Executive Directors annual remuneration, long-term incentives, pension
benefits and share interests in respect of 2006.

Aggregate remuneration for Executive DirectorsThe following table gives details
of the aggregate remuneration (including value of the vesting of matching shares
and exercise of options) as a group.

|                                                                              | € 000 |  | € 000 | 
|----------------------------------------------------------------------------- | ------ |  | ------ | 
|                                                                              | 2006   |  | 2005   | 
|                                                                              |        |  |        | 
|Annual emoluments                                                             |        |  |        | 
|Base salary                                                                   | 4 061  |  | 5 219  | 
|                                                                              |        |  |        | 
|Allowances and other payments:                                                |        |  |        | 
|Allowances                                                                    | 178    |  | 255    | 
|Other
              payments(a)                                               | 735    |  | 2 586  | 
|                                                                              |        |  |        | 
|Benefits                                                                      | 111    |  | 264    | 
|                                                                              |        |  |        | 
|Performance-related payments (annual incentive)                               | 2 409  |  | 2 752  | 
|                                                                              |        |  |        | 
|Sub-total of annual emoluments                                                | 7 494  |  | 11 076 | 
|                                                                              |        |  |        | 
|Other income arising from vesting/exercise of long-term incentives(b)         |        |  |        | 
|Gains on exercise of share options                                            | 427    |  | 10     | 
|                                                                              |        |  |        | 
|Vesting of matching shares                                                    | 566    |  | 1 149  | 
|                                                                              |        |  |        | 
|Vesting of TSR Long-Term Incentive Plans                                      |       |  |       | 
|                                                                              |        |  |        | 
|Total of annual emoluments and other income arising from long-term incentives | 8 487  |  | 12 235 | 
|                                                                              |        |  |        | 

|(a) | Other payments include payments to Antony Burgmans and André van Heemstra
    following contractual obligations.                                                                                                                                                                                                
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Includes the gains realised in 2006 following the exercise of share options
    granted in earlier years and the value of matching shares vested in 2006.
    No value is attributed to TSR Long-Term Incentive Plan as the shares which
    were conditionally granted in 2003 did not vest and lapsed in 2006.

Remuneration for individual Executive DirectorsThe following table gives details of the remuneration received in 2006 (including the value of vested share match and options exercised at the end of the exercise period) by each Executive Director
individually.

|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  | Other income arising from |     |        |  |          |    
|-------------------------------------------------------------------- | ---------------------- | --- | ---------- | --- | --------------------------- | --- | ------ | --- | ------ |  | ------ |  | ------------------------- | --- | ------ |  | -------- | ---
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  | long-term incentives and  |     |        |  |          |    
|                                                                     | Annual Emoluments 2006 |     |            |     | exercise of options in 2006 |     |        |     |        | 
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                           |    
|                                                                     |                        |     | Allowances |     |                             |     |        |     |        |  |        |  |                           |     |        |  |          |    
|                                                                     | Base                   |     | and other  |     |                             |     |        |     | Total  |  | Total  |  | Option                    |     | Share  |  |          |    
|                                                                     | salary                 |     | payments   | (a) | Benefits                    | (b) | Bonus  | (c) | 2006   |  | 2005   |  | gains                     |     | match  |  | TSR/LTIP |    
|Name and Base Country                                                | € 000                 |     | € 000     |     | € 000                      |     | € 000 |     | € 000 |  | € 000 |  | € 000                    |     | € 000 |  | € 000   |    
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                           |     |        |  |          |    
|Patrick Cescau (UK)(d)                                               | 1 426                  |     | 109        |     | 51                          |     | 1 141  |     | 2 727  |  | 2 544  |  |                          |     | 213    |  |         |    
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                           |     |        |  |          |    
|Kees van der Graaf (NL)                                              | 798                    |     | 14         |     | 23                          |     | 367    |     | 1 202  |  | 1 119  |  |                          |     | 85     |  |         |    
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                           |     |        |  |          |    
|Ralph Kugler (UK)                                                    | 862                    |     | 27         |     | 10                          |     | 414    |     | 1 313  |  | 817    |  |                          |     | 101    |  |         |    
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                           |     |        |  |          |    
|Rudy Markham (UK)                                                    | 975                    |     | 28         |     | 27                          |     | 487    |     | 1 517  |  | 1 425  |  | 427                       | (e) | 167    |  |         |    
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                           |     |        |  |          |    
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                          
|Following notice period payments made to former Executive Directors: |                       
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                          
|Antony Burgmans ( NL) Jan  May                                      |                        | 674 |            |     |                             |     |        | 674 |        |  |        |  |                           |     |        |  |          | 674
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                           |     |        |  |          |    
|André van Heemstra (NL)
January                                      |                        | 61  |            |     |                             |     |        | 61  |        |  |        |  |                           |     |        |  |          | 61 
|                                                                     |                        |     |            |     |                             |     |        |     |        |  |        |  |                           |     |        |  |          |    

|(a) | Include: allowance in lieu of company car; blind trust fees compensation; compensation for loss of net income because part of the salary had to be paid in the Netherlands; entertaining allowance; allowance for cost on
chauffeur driven cars and employers cost for the all-employee savings plan in the Netherlands. All allowances are taxable in the country of residence apart from the entertaining allowance which is currently tax free in the Netherlands. Also includes
payments to Antony Burgmans and André van Heemstra following contractual obligations.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Include: benefits for company car; medical insurance; private use chauffeur driven cars; and housing (for business use) instead of hotel. Included are benefits that are taxable in the country of residence. In addition,
Unilever provides support to Executive Directors in relation to spouses travel expenses when travelling together on company business. This amount is capped at 5% of base salary and for 2006 totalled €206 083 (including related taxes
payable).                                                                                           
|(c) | Bonus of the year 2006. Include: the value of both the cash element and the element paid in shares of Unilever N.V. and PLC. In addition to the element of the bonus paid in shares each Executive Director is awarded, on
a conditional basis, an equivalent number of matching shares.                                                                                                                                                                                                                                                                                 
|(d) | Group Chief Executive.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|(e) | All shares under option purchased and retained.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

Figures have been translated into euros using
  the following exchange rate: €1 = £0.6818 (2005: €1 = £0.6837)



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|Report
            of the Directors(continued) | 
|                                               | 

|Report of the Remuneration
        Committee(continued)
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|                                                       



Executive Directors Global Performance
Share PlanThe following conditional shares were outstanding, awarded or vested during 2006 under the Global Performance Share Plan:

|                   |            |  |                          |     |                                          |     |                       |     | Balance of    | 
|------------------ | ---------- |  | ------------------------ | --- | ---------------------------------------- | --- | --------------------- | --- | ------------- | 
|                   |            |  | Balance of conditional   |     | Conditional grant
    made 21 March 2006 |     | conditional shares at |    
|                   |            |  | shares at 1 January 2006 |     | (Performance period
    2006 to 2008     | (b) | 31 December 2006      |    
|                   |            |  |                          |     |                                          |     |                       |    
|                   | Share type |  | No. of shares            | (a) | No. of shares                            | (a) | Price at award        | (a) | No. of shares | 
|                   |            |  |                          |     |                                          |     |                       |     |               | 
|Patrick Cescau     | NV         |  | 9 000                    |     | 9 000                                    |     | €19.10                |     | 18 000        | 
|                   | PLC        |  | 9 000                    |     | 9 000                                    |     | 1 301.11              | p   | 18 000        | 
|                   |            |  |                          |     |                                          |     |                       |     |               | 
|Kees van der Graaf | NV         |  | 6 000                    |     | 6 000                                    |     | €19.10                |     | 12 000        | 
|                   | PLC        |  | 6 075                    |     | 6 075                                    |     | 1 301.11              | p   | 12 150        | 
|                   |            |  |                          |     |                                          |     |                       |     |               | 
|Ralph Kugler       | NV         |  | 6 000                    |     | 6 000                                    |     | €19.10                |     | 12 000        | 
|                   | PLC        |  | 6 075                    |     | 6 075                                    |     | 1 301.11              | p   | 12 150        | 
|                   |            |  |                          |     |                                          |     |                       |     |               | 
|Rudy Markham       | NV         |  | 6 000                    |     | 6 000                                    |     | €19.10                |     | 12 000        | 
|                   | PLC        |  | 6 075                    |     | 6 075                                    |     | 1 301.11              | p   | 12 150        | 
|                   |            |  |                          |     |                                          |     |                       |     |               | 

|(a) | Number of shares and share prices have been recalculated following the share split and consolidation.                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Each award of performance shares is conditional and vests subject to certain conditions three years after the date of the award. The 2006 awards are subject to the performance period 1 January 2006 to 31 December
2008.

Executive Directors conditional share awards under the TSR Long-Term Incentive PlanConditional rights to ordinary shares in NV and PLC were outstanding, granted or vested/lapsed in 2006 as shown in the table below:

|                   |       |  | Balance of   |     |                     |      |                      |     |              |      |           |     | Balance of | 
|------------------ | ----- |  | ------------ | --- | ------------------- | ---- | -------------------- | --- | ------------ | ---- | --------- | --- | ---------- | 
|                   |       |  | conditional  |     | Conditional award   |      | Conditional awards   |     | conditional  |     
|                   |       |  | shares       |     | made 21 March 2006  |      | lapsed 25 March 2006 |     | shares at    |     
|                   |       |  | at 1 January |     | (Performance period |      | (Performance period  |     | 31 December  |     
|                   |       |  | 2006         |     | 2006 to 2008        | )(a) |                      |     | 2003 to 2005 | )(b) | 2006      |    
|                   |       |  |              |     |                     |      |                      |     |              |      |           |    
|                   |       |  |              |     |                     |      |                      |     |              |      | Original  |     |            | 
|                   | Share |  | No. of       |     | No. of              |      | Price at             |     | No. of       |      | price     |     | No. of     | 
|                   | type  |  | shares       | (c) | shares              | (c)  | award                | (c) | shares       | (c)  | at award) | (c) | shares     | 
|                   |       |  |              |     |                     |      |                      |     |              |      |           |     |            | 
|Patrick Cescau     | NV    |  | 51 144       |     | 20 943              |      | €19.10               |     | (13 611      | )    | €18.37    |     | 58 476     | 
|                   | PLC   |  | 52 118       |     | 21 326              |      | 1 301.11             | p   | (12 995      | )    | 1 300     | p   | 60 449     | 
|                   |       |  |              |     |                     |      |                      |     |              |      |           |     |            | 
|Kees van der Graaf | NV    |  | 31 281       |     | 13 089              |      | €19.10               |     | (8 169       | )    | €18.37    |     | 36 201     | 
|                   | PLC   |  | 31 888       |     | 13 329              |      | 1 301.11             | p   | (7 795       | )    | 1 300     | p   | 37 422     | 
|                   |       |  |              |     |                     |      |                      |     |              |      |           |     |            | 
|Ralph Kugler       | NV    |  | 31 281       |     | 13 089              |      | €19.10               |     | (8 169       | )    | €18.37    |     | 36 201     | 
|                   | PLC   |  | 31 888       |     | 13 329              |      | 1 301.11             | p   | (7 795       | )    | 1 300     | p   | 37 422     | 
|                   |       |  |              |     |                     |      |                      |     |              |      |           |     |            | 
|Rudy Markham       | NV    |  | 42 267       |     | 13 089              |      | €19.10               |     | (13 611      | )    | €18.37    |     | 41 745     | 
|                   | PLC   |  | 42 845       |     | 13 329              |      | 1 301.11             | p   | (12 995      | )    | 1 300     | p   | 43 179     | 
|                   |       |  |              |     |                     |      |                      |     |              |      |           |     |            | 

|(a) | The end date of the performance period in respect of the conditional award made in 2006 is 31 December 2008.                                                                                                                                                                                                                                                                                      
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | The conditional awards made in 2003, which vested in 2006 were based on the TSR performance of Unilever (when ranked against its defined peer group) over the three-year performance period ending 31 December 2005. For
this period, Unilever was ranked 14 out of its peer group and therefore no vesting occurred for this award in March 2006 and the awarded shares of the award 2003 lapsed.
|(c) | The numbers of shares and prices have been converted following the share split and share consolidation which took place on 22 May 2006.                                                                                                                                                                                                                                                           

Antony Burgmans changed from Executive to Non-Executive Director at the 2005 AGMs and assumed his new role of Non-Executive Chairman. In his capacity as an Executive Director Antony Burgmans was granted conditional
shares under the TSR Long-Term Incentive Plan.

Below are details of the balances and vesting of shares under this Plan:

|    |           |     | Conditional  |     |             | 
|--- | --------- | --- | ------------ | --- | ----------- | 
|    | Balance   |     | award lapsed |     | Balance     | 
|    | 1 January |     | 25 March     |     | 31 December | 
|    | 2006      | (a) | 2006(a)      | (b) | 2006        | 
|    |           |     |              |     |             | 
|NV  | 43 962    |     | (21 780      | )   | 22 182      | 
|PLC | 43 814    |     | (20 790      | )   | 23 024      | 
|    |           |     |              |     |             | 

|(a) | The number of shares and prices have been converted following the share split and share consolidation which took place on 22 May 2006.
|--- | --------------------------------------------------------------------------------------------------------------------------------------
|(b) | The conditional shares awarded in 2003 lapsed in March 2006.                                                                          

In his capacity as a Non-Executive Chairman,
  Antony Burgmans does not participate in any share-based remuneration.



|56 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

---



Back to Contents

| |                                               
| | ----------------------------------------------
| | Report
            of the Directors(continued)
| |                                               

|Report of the Remuneration
        Committee(continued)
|-------------------------------------------------------
|                                                       



Executive Directors
  conditional share awards under the TSR Long-Term Incentive Plan (continued)Unilevers position relative to the TSR reference group

|                                                                                                                                                                                |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
|The reference
        group, including
        Unilever,consists of 21companies.
        Unilevers
        position isbased
        on TSR overathree-year
    rolling period. |  | 

Executive Directors Share
        Matching PlanThe following conditional shares were outstanding, awarded or vested during 2006 under the share matching plan:

|                   |       |  | Balance of   |     |                    |        |          |   |                  |        |             |   |          |   | Balance of  | 
|------------------ | ----- |  | ------------ | --- | ------------------ | ------ | -------- | - | ---------------- | ------ | ----------- | - | -------- | - | ----------- | 
|                   |       |  | conditional  |     |                    |        |          |   |                  |        |             |   |          |   | conditional | 
|                   |       |  | shares       |     |                    |        |          |   |                  |        |             |   |          |   | shares at   | 
|                   |       |  | at 1 January |     | Conditional shares |        |          |   | Shares vested on |        | 31 December |  
|                   |       |  | 2006         |     | awarded in 2006    | (a)(b) |          |   | 24 March 2006    | (a)(c) | 2006        |  
|                   |       |  |              |     |                    |        |          |   |                  |        |             |  
|                   |       |  |              |     |                    |        |          |   |                  |        |             |   | Market   |   | Original    | 
|                   | Share |  | No. of       |     | No. of             |        | Price at |   | No. of           |        | price       |   | price    |   | No. of      | 
|                   | type  |  | shares       | (a) | shares             |        | award    |   | shares           |        | at vesting  |   | at award |   | shares      | 
|                   |       |  |              |     |                    |        |          |   |                  |        |             |   |          |   |             | 
|Patrick Cescau     | NV    |  | 7 932        |     | 6 552              |        | €19.10   |   | (5 706           | )      | €19.15      |   | €18.37   |   | 8 778       | 
|                   | PLC   |  | 7 770        |     | 6 671              |        | 1 301.11 | p | (5 449           | )      | 1 298.89    | p | 1 300    | p | 8 992       | 
|                   |       |  |              |     |                    |        |          |   |                  |        |             |   |          |   |             | 
|Kees van der Graaf | NV    |  | 4 293        |     | 2 211              |        | €19.10   |   | (2 238)          | (d)    | €19.15      |   | €18.37   |   | 4 266       | 
|                   | PLC   |  | 4 439        |     | 2 254              |        | 1 301.11 | p | (2 299)          | (d)    | 1 298.89    | p | 1 300    | p | 4 394       | 
|                   |       |  |              |     |                    |        |          |   |                  |        |             |   |          |   |             | 
|Ralph Kugler       | NV    |  | 4 359        |     | 2 175              |        | €19.10   |   | (2 703           | )      | €19.15      |   | €18.37   |   | 3 831       | 
|                   | PLC   |  | 4 305        |     | 2 215              |        | 1 301.11 | p | (2 584           | )      | 1 298.89    | p | 1 300    | p | 3 936       | 
|                   |       |  |              |     |                    |        |          |   |                  |        |             |   |          |   |             | 
|Rudy Markham       | NV    |  | 6 675        |     | 2 739              |        | €19.10   |   | (4 482           | )      | €19.15      |   | €18.37   |   | 4 932       | 
|                   | PLC   |  | 6 552        |     | 2 788              |        | 1 301.11 | p | (4 269           | )      | 1 298.89    | p | 1 300    | p | 5 071       | 
|                   |       |  |              |     |                    |        |          |   |                  |        |             |   |          |   |             | 

|(a) | The numbers of shares and prices have been converted following the share split and share consolidation which took place on 22 May 2006.                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Each award of matching shares is conditional and vests three years after the date of the award subject to certain conditions. The 2006 award was made on 21 March 2006 and will vest on 21 March 2009.
|(c) | The conditional shares awarded on 25 March 2003 (relating to the 2002 performance period) vested on 24 March 2006.                                                                                    
|(d) | Includes conditional shares awarded in 2001: 1 041 NV (original granted at €20.97) and 1 155 PLC (original granted at 1 174p).                                                                        

Antony Burgmans changed from Executive to Non-Executive Director at the 2005 AGMs and assumed his new role of Non-Executive Chairman. In his capacity as an Executive Director Antony Burgmans was granted conditional
share under the Executive Directors Share Plan.

Below details of the balances and vesting of shares under this Plan:

|    |           |     | Conditional |        |               |        |             | 
|--- | --------- | --- | ----------- | ------ | ------------- | ------ | ----------- | 
|    | Balance   |     | shares      |        | Shares vested |        | Balance     | 
|    | 1 January |     | awarded     |        | 24 March      |        | 31 December | 
|    | 2006      | (a) | in 2006     | (a)(b) | 2006          | (a)(c) | 2006        | 
|    |           |     |             |        |               |        |             | 
|NV  | 9 909     |     | 1 743       |        | (7 083        | )      | 4 569       | 
|PLC | 9 698     |     | 1 773       |        | (6 759        | )      | 4 712       | 
|    |           |     |             |        |               |        |             | 

|(a) | The number of shares and prices have been converted following the share split and share consolidation which took place on 22 May 2006.
|--- | --------------------------------------------------------------------------------------------------------------------------------------
|(b) | The award was made 21 March 2006 and related to the period January to May 2005. The award will vest on 21 March 2009.                 
|(c) | The conditional shares awarded 25 March 2003 vested on 24 March 2006.                                                                 

In his capacity as a Non-Executive Chairman,
  Antony Burgmans does not participate in any share-based remuneration.



|UnileverAnnual Report on Form 20-F 2006 | 57
|--------------------------------------- | --

---



Back to Contents

|                                               | 
|---------------------------------------------- | 
|Report
            of the Directors(continued) | 
|                                               | 

|Report of the Remuneration
        Committee(continued)
|-------------------------------------------------------
|                                                       



Executive Directors share optionsDetails of the option plans under which Executive Directors and employees are able to acquire ordinary shares of NV and PLC are shown in note 29 on pages 117 to 121.

Options to acquire NV ordinary shares of €0.16 each and options to acquire
PLC ordinary shares of 31/9p each
were granted, exercised, lapsed and held during 2006 as follows:

|                     |       |  |            |     |            |     |            |        |             |  | Options outstanding |  | Options outstanding |   |           |  |          |  
|-------------------- | ----- |  | ---------- | --- | ---------- | --- | ---------- | ------ | ----------- |  | ------------------- |  | ------------------- | - | --------- |  | -------- | -
|                     |       |  |            |     |            |     |            |        |             |  | below market price  |  | above market price  |   |           |  |          |  
|                     |       |  |            |     |            |     |            |        |             |  | at 31 December 2006 |  | at 31 December 2006 |   |           |  |          |  
|                     |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |         
|                     |       |  |            |     |            |     | Number     |        |             |  |                     |  |                     |   |           |  |          |  
|                     |       |  | Balance of |     | Number     |     | of options |        | Balance of  |  |                     |  | Weighted            |   |           |  | Weighted |  
|                     |       |  | options at |     | of options |     | exercised/ |        | options at  |  |                     |  | average             |   |           |  | average  |  
|                     | Share |  | 1 January  |     | granted    |     | lapsed     |        | 31 December |  | Number              |  | exercise            |   | Number    |  | exercise |  
|                     | type  |  | 2006       | (a) | in 2006    |     | in 2006    |        | 2006        |  | of shares           |  | price               |   | of shares |  | price    |  
|                     |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  
|Patrick Cescau       |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  
|Executive Plan       | NV    |  | 269 166    |     |           |     |           |        | 269 166     |  | 135 237             |  | €17.66              |   | 133 929   |  | €22.08   |  
|Executive Plan       | PLC   |  | 272 967    |     |           |     |           |        | 272 967     |  | 245 967             |  | 1 175               | p | 27 000    |  | 1 483    | p
|NL All-Employee Plan | NV    |  | 750        |     | 150        | (b) | (150)      | (c)    | 750         |  | 600                 |  | €17.53              |   | 150       |  | €22.63   |  
|UK ShareSave Plan    | PLC   |  |           |     | 1 374      | (d) |           |        | 1 374       |  | 1 374               |  | 1 171               | p |           |  |         |  
|                     |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  
|Kees van der Graaf   |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  
|Executive Plan       | NV    |  | 135 450    |     |           |     |           |        | 135 450     |  | 83 250              |  | €18.30              |   | 52 200    |  | €21.94   |  
|Executive Plan       | PLC   |  | 135 450    |     |           |     |           |        | 135 450     |  | 135 450             |  | 1 203               | p |          |  |         |  
|NL All-Employee Plan | NV    |  | 750        |     | 150        | (b) | (150)      | (c)    | 750         |  | 600                 |  | €17.53              |   | 150       |  | €22.63   |  
|UK ShareSave Plan    | PLC   |  | 1 374      |     |           |     |           |        | 1 374       |  | 1 374               |  | 1 202               | p |          |  |         |  
|                     |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  
|Ralph Kugler         |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  
|Executive Plan       | NV    |  | 176 625    |     |           |     |           |        | 176 625     |  | 120 600             |  | €18.19              |   | 56 025    |  | €22.04   |  
|Executive Plan       | PLC   |  | 176 625    |     |           |     |           |        | 176 625     |  | 176 625             |  | 1 163               | p |          |  |         |  
|NL All-Employee Plan | NV    |  | 150        |     | 150        | (b) |           |        | 300         |  | 300                 |  | €17.59              |   |          |  |         |  
|UK ShareSave Plan    | PLC   |  | 1 374      |     |           |     |           |        | 1 374       |  | 1 374               |  | 1 202               | p |          |  |         |  
|                     |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  
|Rudy Markham         |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  
|Executive Plan       | NV    |  | 264 150    |     |           |     | (27 000)   | (e)    | 237 150     |  | 130 500             |  | €17.60              |   | 106 650   |  | €22.21   |  
|Executive Plan       | PLC   |  | 278 682    |     |           |     | (41 532)   | (f)(g) | 237 150     |  | 203 400             |  | 1 167               | p | 33 750    |  | 1 483    | p
|NL All-Employee Plan | NV    |  | 750        |     | 150        | (b) | (150)      | (c)    | 750         |  | 600                 |  | €17.53              |   | 150       |  | €22.63   |  
|UK ShareSave Plan    | PLC   |  | 1 373      |     |           |     |           |        | 1 373       |  | 1 373               |  | 1 190               | p |          |  |         |  
|                     |       |  |            |     |            |     |            |        |             |  |                     |  |                     |   |           |  |          |  

|(a) | The number of shares and the share prices have
been converted following the share split and share consolidation which took place
on 22 May 2006.                                                                                        
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Grants made under the Dutch All-Employee Option Plan on 18 May 2006 at an option price of €17.50.                                                                                                                                       
|(c) | Options lapsed without value on 30 May 2006.                                                                                                                                                                                            
|(d) | Grants made under the UK All-Employee ShareSave Plan on 3 July 2006 at an option price of 1 171p.                                                                                                                                       
|(e) | Options exercised on 1 December 2006 at a market price of €19.97. The options had originally been granted on 2 June 1997 at a price (after taking into account the share split in May 2006) of
€14.26.                                  
|(f) | Options in respect of 14 532 shares exercised
on 2 June 2006 at a market price of 1 188p. The options had originally been granted
on 6 December 1996 at a price (after taking
into account the share consolidation in May 2006) of 762p.
|(g) | Options in respect of 27 000 shares exercised on 1 December 2006 at a market price of 1 363p. The options had originally been granted on 2 June 1997 at a price (after taking into account the share consolidation in May
2006) of 904p.

The value, calculated in accordance with an adjusted Black-Scholes pricing method in respect of options granted in 2006 to the current Executive Directors was as follows: Patrick Cescau €6 155; Kees van der Graaf
€432; Ralph Kugler €432; and Rudy Markham €432.

The term Executive Plan refers to options granted under the PLC or
NV Executive Option Plans.

The closing market prices of ordinary shares at 31 December 2006 were €20.70
(NV shares) and 1 428p (PLC shares). During 2006 the highest market prices were €20.84
and 1 428p respectively, and the lowest
market prices were €16.53 and 1 125p respectively.

Antony Burgmans changed from Executive to Non-Executive Director at the 2005
AGMs and assumed his new role of Non-Executive Chairman. In his capacity as an
Executive Director Antony Burgmans was granted share options under the Executive
Plan and the Dutch All-Employee Plan.

Below are details of his outstanding options under the Option plans:

|                     |       |  |            |  |            |  | Number     |      |             |  |         |  |          |   |         |  |          |  |             |  |          | 
|-------------------- | ----- |  | ---------- |  | ---------- |  | ---------- | ---- | ----------- |  | ------- |  | -------- | - | ------- |  | -------- |  | ----------- |  | -------- | 
|                     |       |  | Balance of |  | Number     |  | of options |      | Balance of  |  | Balance |  | Weighted |   | Balance |  | Weighted |  |             |  |          | 
|                     |       |  | options at |  | of options |  | exercised/ |      | options at  |  | below   |  | average  |   | above   |  | average  |  | First       |  | Final    | 
|                     | Share |  | 1 January  |  | granted    |  | lapsed     |      | 31 December |  | market  |  | exercise |   | market  |  | exercise |  | exercisable |  | expiry   | 
|Plan                 | type  |  | 2006       |  | in 2006    |  | in 2006    |      | 2006        |  | price   |  | price    |   | price   |  | price    |  | date        |  | date     | 
|                     |       |  |            |  |            |  |            |      |             |  |         |  |          |   |         |  |          |  |             |  |          | 
|Executive Option     | NV    |  | 316 800    |  |           |  |           |      | 316 800     |  | 203 400 |  | €17.61   |   | 113 400 |  | €21.78   |  | 24/03/02    |  | 13/02/09 | 
|Executive Option     | PLC   |  | 316 800    |  |           |  |           |      | 316 800     |  | 316 800 |  | 1 163    | p |        |  |         |  | 24/03/02    |  | 13/02/09 | 
|NL All-Employee Plan |       |  | 600        |  |           |  | (150       | )(a) | 450         |  | 300     |  | €17.47   |   | 150     |  | €22.63   |  | 12/06/02    |  | 12/05/09 | 
|                     |       |  |            |  |            |  |            |      |             |  |         |  |          |   |         |  |          |  |             |  |          | 

|(a) | Options lapsed without value on 30 May 2006.
|--- | --------------------------------------------

In his capacity as a Non-Executive Chairman,
  Antony Burgmans does not participate in any share-based remuneration.



|58 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

---



Back to Contents

| |                                         
| | ----------------------------------------
| | Report
      of the Directors(continued)
| |                                         

|Report of the Remuneration Committee
      (continued)
|------------------------------------------------------
|                                                      



Executive Directors
  pensions(a)Pension values for the year ended
  31 December 2006 are set out below.

|                          |          |  |            |     |             |     |            |     |            |     | Increase       |     |               |     |            |    
|------------------------- | -------- |  | ---------- | --- | ----------- | --- | ---------- | --- | ---------- | --- | -------------- | --- | ------------- | --- | ---------- | ---
|                          |          |  |            |     | Increase in |     |            |     | Transfer   |     | in transfer    |     |               |     | Transfer   |    
|                          |          |  |            |     | accrued     |     |            |     | value of   |     | value during   |     | Individual    |     | value of   |    
|                          |          |  | Accrued    |     | pension     |     | Accrued    |     | accrued    |     | 2006 (less     |     | contributions |     | accrued    |    
|                          |          |  | pension at |     | during      |     | pension at |     | pension at |     | individual     |     | made during   |     | pension at |    
|                          | Age at   |  | 31/12/05   | (b) | 2006        | (c) | 31/12/06   | (b) | 31/12/05   | (d) | contributions) | (e) | 2006          | (f) | 31/12/06   | (d)
|Name and base country     | 31/12/06 |  | €000 pa   |     | €000 pa    |     | €000 pa   |     | €000      |     | €000          |     | €000         |     | €000      |    
|                          |          |  |            |     |             |     |            |     |            |     |                |     |               |     |            |    
|Patrick Cescau (UK)       | 58       |  | 933        |     | 67          |     | 1 000      |     | 16 770     |     | 1 874          |     | 18            |     | 18 662     |    
|                          |          |  |            |     |             |     |            |     |            |     |                |     |               |     |            |    
|Kees van der Graaf(g)(NL) | 56       |  | 538        |     | 64          |     | 602        |     | 6 942      |     | 1 147          |     | 9             |     | 8 098      |    
|                          |          |  |            |     |             |     |            |     |            |     |                |     |               |     |            |    
|Ralph Kugler (UK)         | 50       |  | 396        |     | 45          |     | 441        |     | 5 411      |     | 862            |     | 10            |     | 6 283      |    
|                          |          |  |            |     |             |     |            |     |            |     |                |     |               |     |            |    
|Rudy Markham (UK)         | 60       |  | 752        |     | 41          |     | 793        |     | 15 147     |     | 741            |     | 21            |     | 15 909     |    
|                          |          |  |            |     |             |     |            |     |            |     |                |     |               |     |            |    

|(a) | Figures have been translated into euros
      where necessary using the following exchange rates: 31 December 2005 €1.00
      = £0.6864;31 December 2006 €1.00
      = £0.6712; Average for the year ended 31 December 2006 €1.00
      = £0.6818.                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Based on the Executive
          Directors
      current pension letters and calculated on a deferred basis using the Executive
      Directors service to 31 December
      2005 and 31 December 2006 respectively on the basis that the Executive Directors
      remain in service until at least age 60 and
      that the pension payment commences at that time. It includes all pensions
      provided from Unilever pension plans. In the event that an Executive Director
      leaves service prior to age 60 and the payment of pension commences earlier
      than age 60, the pension payable would be on a reduced basis.
|(c) | Includes the effect of inflation on the
      accrued pension at 31 December 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|(d) | For the Netherlands-based Executive
      Directors arrangement calculated on the basis used by the Unilever
      Netherlands pension plan(Progress),
      as prescribed by the Netherlands Ministry of Social Affairs and Employment.
      For the UK-based Executive Directors arrangement calculated on the
      market related basis used by Unilever United Kingdom pension plan (UUKPF),
      in line with the GN11 guidance note published by the Institute and Faculty
      of Actuaries in the United Kingdom.                                                                                                          
|(e) | The increase in transfer value during
         2006 includes the effect of salary increases and additional service
        together
      with exchange rate movements (for pensions denominated in currencies other
         than Euro) and the Executive Directors being one year closer to retirement.                                                                                                                                                                                                                                                                                                                                  
|(f) | Consistent with other Netherlands and
      UK-based employees, the rate of individual contributions in the Netherlands
      is 1% of pensionable salary and in the UK 5% of pensionable salary (above
      the relevant thresholds). In line with the treatment adopted for other UK-based
      employees, individual contributions paid by Executive Directors in
      the UK are now paid through a salary sacrifice arrangement. Individual contributions
      shown above represent the contributions paid before the change to salary
      sacrifice.                                                                         
|(g) | Consistent with the treatment adopted
      for other Netherlands-based employees, the increase in pension accrued during
      the year includes the impact of the changes to the Unilever Netherlands
      pension plan.                                                                                                                                                                                                                                                                                                                                                                                                                

The Listing Rules of the Financial Services Authority are different from the Directors Remuneration Report Regulations 2002 and require the following disclosures for defined benefit pension plans which are
calculated on an alternative basis to those disclosed in the table above:

|• | Increase (or decrease) in accrued pension
      during 2006 (excluding the effect of inflation on the accrued pension at
      31 December 2005): Patrick Cescau
      €33 000; Kees van der Graaf €56 000; Ralph Kugler €10
      000; Rudy Markham €(4 000); and                                                                                   
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                      
|• | Transfer value at 31 December 2006 of
      the increase (or decrease) in accrued pension during 2006 (excluding the
      effect of inflation on the accrued
      pension at 31 December 2005 and less individual contributions): Patrick
      Cescau €605 000; Kees van der Graaf €754
      000; Ralph Kugler €134 000; Rudy Markham €(110 000).

The Dutch Corporate Governance Code requires the following disclosure of pension service costs charged to operating profit: Patrick Cescau €842 000; Kees van der Graaf €258 000; Ralph Kugler €299 000;
Rudy Markham €167 000.

The accrued pension of Antony Burgmans at 1
  June 2006 (the date his pension payment commenced) was €1 136 000; increase
  in accrued pension during the year €22 000 (€21 000 excluding inflation);
  transfer value of the increase in accrued pension during the year (less individual
  contributions) €652 000 (€337 000 excluding inflation); individual
  contributions made during the year €10 000; pension cost charged to operating
  profit €621 000.



|UnileverAnnual Report on Form 20-F 2006 | 59
|--------------------------------------- | --

---



Back to Contents

|                                         | 
|---------------------------------------- | 
|Report
      of the Directors(continued) | 
|                                         | 

|Report of the Remuneration
      Committee (continued)
|------------------------------------------------------
|                                                      



Executive Directors
  interests  share capitalThe interests in the share capitals
  of NV and PLC and their group companies of those who were Executive Directors
  at 31 December 2006 and of their immediate families were as shown in the table
  below:

|                         |               |  | Shares held at      |      | Shares held at      |  
|------------------------ | ------------- |  | ------------------- | ---- | ------------------- | -
|                         |               |  | 1 January 2006      |      | 31 December 2006    |  
|                         |               |  | (excluding unvested |      | (excluding unvested |  
|Name                     | Share type(a) |  | matching shares     | )(b) | matching shares     | )
|                         |               |  |                     |      |                     |  
|Patrick Cescau(c)        | NV            |  | 69 351              |      | 85 059              |  
|                         | PLC           |  | 40 230              |      | 52 347              |  
|                         |               |  |                     |      |                     |  
|Kees van der
      Graaf | NV            |  | 18 708              |      | 23 157              |  
|                         | PLC           |  | 12 037              |      | 16 718              |  
|                         |               |  |                     |      |                     |  
|Ralph Kugler             | NV            |  | 41 628              |      | 45 396              |  
|                         | PLC           |  | 16 264              |      | 20 124              |  
|                         |               |  |                     |      |                     |  
|Rudy Markham             | NV            |  | 127 044             |      | 161 265             |  
|                         | PLC           |  | 64 606              |      | 113 329             |  
|                         |               |  |                     |      |                     |  

|(a) | NV shares are ordinary €0.16 shares
      and PLC shares are ordinary 3 1/9p shares.                                                                           
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | The numbers have been converted into the
      new denomination following the NV/PLC share split and share consolidation
      which took place on 22 May 2006.
|(c) | Balances include under NV 38 715 NV New
      York shares and under PLC 10 220 PLC ADRs.                                                                       

The Executive Directors, in common with other
  employees of PLC and its United Kingdom subsidiaries, had beneficial interests
  in 19 454 453 PLC ordinary shares at 1 January 2006 (converted into the new
  denomination following the shares split and consolidation) and 16 678 871 PLC
  ordinary shares at 31 December 2006, acquired by the Unilever Employee Share
  Trust (Jersey) for the purpose of satisfying options and vesting of shares under
  various group share plans (including the PLC Executive Option Plans and the
  UK Employee ShareSave Plan). Further information, including details of the NV
  and PLC ordinary shares acquired by certain group companies in connection with
  other share-based compensation plans, is given in note 29 on pages 117 to 121.

The voting rights of the Directors who hold
  interests in the share capitals of NV and PLC are the same as for other holders
  of the class of shares indicated. None of the Directors or other executive
  officers shareholdings amounts to more than 1% of the issued shares in
  that class of share. Except as stated above, all shareholdings are beneficial.

The only changes in the interests of the Executive
  Directors and their families in NV and PLC ordinary shares between 31 December
  2006 and 1 March 2007 were that:

|• | The holding of the Unilever Employee Share
      Trust (Jersey) has reduced to 16 313 295 PLC ordinary shares; and                                                                          
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                             
|• | Kees van der Graaf, Ralph Kugler and Rudy
      Markham each acquired further interests in 18 PLC ordinary shares during
      January and February due to monthly
      ShareBuy purchases.



|60 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

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| |                                         
| | ----------------------------------------
| | Report
      of the Directors(continued)
| |                                         

|Report of the Remuneration
      Committee (continued)
|------------------------------------------------------
|                                                      



Non-Executive Directors
  remunerationThe total fees payable to each Non-Executive
  Director in 2006 are set out below:

|                                     | €                     |     | €                     |    
|------------------------------------ | --------------------- | --- | --------------------- | ---
|                                     | Total
      fees paid |     | Total fees
      paid |    
|Current Non-Executive Directors      | in 2006               | (a) | in 2005               | (a)
|                                     |                       |     |                       |    
|Leon Brittan(b)                      | 82
      712          |     | 67
      102          |    
|                                     |                       |     |                       |    
|Antony Burgmans(c)                   | 299 614               |     |                      |    
|                                     |                       |     |                       |    
|Lynda Chalker(d)                     | 94 403                |     | 80 415                |    
|                                     |                       |     |                       |    
|Wim Dik(b)(e)                        | 84 663                |     | 67 102                |    
|                                     |                       |     |                       |    
|Charles Golden(e)(f)(g)              | 89 478                |     | n/a                   |    
|                                     |                       |     |                       |    
|Byron Grote(e)(f)                    | 60 311                |     | n/a                   |    
|                                     |                       |     |                       |    
|David Simon(h)                       | 109 735               |     | 67 102                |    
|                                     |                       |     |                       |    
|Jean-Cyril
      Spinetta(f)(i)      | 60 311                |     | n/a                   |    
|                                     |                       |     |                       |    
|Kees Storm(f)(j)                     | 75 137                |     | n/a                   |    
|                                     |                       |     |                       |    
|Jeroen van
      der Veer(i)         | 82 712                |     | 67 102                |    
|                                     |                       |     |                       |    
|                                     |                       |     |                       |    
|Former
      Non-Executive Directors |                       |     |                       |    
|                                     |                       |     |                       |    
|Bertrand Collomb(k)(l)               | 42 001                |     | 100 654               |    
|                                     |                       |     |                       |    
|Oscar Fanjul(e)(l)                   | 28 000                |     | 67 102                |    
|                                     |                       |     |                       |    
|Hilmar Kopper(j)(l)                  | 33 557                |     | 80 415                |    
|                                     |                       |     |                       |    

|(a) | Covers fees and allowances received from
      both NV and PLC.                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Member of the Corporate Responsibility
      and Reputation Committee.                                                                                                                                    
|(c) | Chairman NV and PLC, and Nomination Committee
      member. Received fee as Chairman since June 2006.                                                                                                     
|(d) | Chairman of the Corporate Responsibility
      and Reputation Committee.                                                                                                                                  
|(e) | Member of the Audit Committee.                                                                                                                                                                            
|(f) | Appointed at 2006 AGMs.                                                                                                                                                                                   
|(g) | Total fees include €29 167 allowance
      for travel from outside Europe.                                                                                                                                
|(h) | Senior Independent Director, Vice Chairman
      and Chairman of the Remuneration and Nomination Committees as from 2006
      AGMs. Until 2006 AGMs member of the Nomination and Remuneration Committees.
|(i) | Member of the Nomination and Remuneration
      Committees.                                                                                                                                               
|(j) | Chairman of the Audit Committee.                                                                                                                                                                          
|(k) | Senior Independent Director, Vice Chairman
         and Chairman of the Remuneration and Nomination Committees until 2006
        AGMs.                                                                   
|(l) | Stepped down at the 2006 AGMs.                                                                                                                                                                            



|UnileverAnnual Report on Form 20-F 2006 | 61
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|                                         | 
|---------------------------------------- | 
|Report
      of the Directors(continued) | 
|                                         | 

|Report of the Remuneration
      Committee (continued)
|------------------------------------------------------
|                                                      



Non-Executive Directors
  interests  share capitalThe interests in the share capitals
  of NV and PLC and their group companies of those who were Non-Executive Directors
  as at 31 December 2006 (including those of their immediate families) were as
  shown below:

|                          |            |     | Shares held
      at |        | Shares held
      at   |    
|------------------------- | ---------- | --- | -------------------- | ------ | ---------------------- | ---
|Name                      | Share type | (a) | 1 January
      2006 | (b)    | 31 December
      2006 |    
|                          |            |     |                      |        |                        |    
|Leon Brittan              | NV         |     |                     |        |                       |    
|                          | PLC        |     |                     |        |                       |    
|                          |            |     |                      |        |                        |    
|Antony Burgmans           | NV         |     | 133
      848        |        | 137
      334          |    
|                          | PLC        |     | 58 511               |        | 62 054                 |    
|                          |            |     |                      |        |                        |    
|Lynda Chalker             | NV         |     |                     |        |                       |    
|                          | PLC        |     | 1 136                |        | 1 136                  |    
|                          |            |     |                      |        |                        |    
|Wim Dik                   | NV         |     |                     |        |                       |    
|                          | PLC        |     |                     |        |                       |    
|                          |            |     |                      |        |                        |    
|Charles Golden            | NV         |     |                     |        |                       |    
|                          | PLC        |     |                     |        |                       |    
|                          |            |     |                      |        |                        |    
|Byron Grote               | NV         |     | 3 000                | (c)(d) | 3 000                  | (d)
|                          | PLC        |     | 1 800                | (c)(e) | 1 800                  | (e)
|                          |            |     |                      |        |                        |    
|David Simon               | NV         |     |                     |        |                       |    
|                          | PLC        |     | 1 421                |        | 1 492                  |    
|                          |            |     |                      |        |                        |    
|Jean-Cyril
      Spinetta | NV         |     |                     |        |                       |    
|                          | PLC        |     |                     |        |                       |    
|                          |            |     |                      |        |                        |    
|Kees Storm                | NV         |     |                     |        |                       |    
|                          | PLC        |     |                     |        |                       |    
|                          |            |     |                      |        |                        |    
|Jeroen van
      der Veer | NV         |     | 16 800               |        | 16 800                 |    
|                          | PLC        |     |                     |        |                       |    
|                          |            |     |                      |        |                        |    

|(a) | NV shares are ordinary €0.16 shares
      and PLC shares are ordinary 3 1/9p shares.                                                                    
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | The numbers have been converted into the
      new denomination following the share split and share consolidation which
      took place on 22 May 2006.
|(c) | Balance at date of appointment at the
      AGMs in May 2006.                                                                                           
|(d) | Held in the form of NV New York shares.                                                                                                                 
|(e) | Held in the form of PLC ADRs.                                                                                                                           

There were no changes in the interests of the
  Non-Executive Directors and their immediate families in NV and PLC ordinary
  shares between 31 December 2006 and 1 March 2007.

The Report has been approved by the Boards
  and has been signed on their behalf by the Joint Secretaries, J A A van der
  Bijl and S G Williams.

By order of the Boards



J A A van der Bijl
  S G Williams

Joint Secretaries of Unilever N.V. and Unilever
  PLC

6 March 2007



|62 | UnileverAnnual Report on Form 20-F 2006
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| |                                         
| | ----------------------------------------
| | Report
      of the Directors(continued)
| |                                         

|Report of the Audit Committee
|-----------------------------
|                             



The role of the Audit Committee is to assist
  the Unilever Boards in fulfilling their oversight responsibilities regarding
  the integrity of Unilevers financial statements, risk management and internal
  control, compliance with legal and regulatory requirements, the external auditors
  performance, qualifications and independence, and the performance of the internal
  audit function. During the year ended 31 December 2006 the principal activities
  of the Committee were as follows: Financial statementsThe Committee considered reports
   from the Chief Financial Officer on the quarterly and annual financial statements

  and reviewed the Annual Report and Accounts and Annual Report on Form 20-F
  prior to publication. Audit of the Annual
    AccountsPricewaterhouseCoopers, Unilevers
  external auditors, reported in depth to the Committee on the scope and outcome
  of the annual audit. Their reports included accounting matters, governance and
  control, and accounting developments. Risk management
    and internal control arrangementsThe Committee reviewed Unilever's
  overall approach to risk management and control, and its processes, outcomes
  and disclosure, including specifically: •
    review of level of disclosure in quarterly
      financial results announcements;•
    review of accounting principles and judgements
      with respect to financial statements;•
    review of managements risk assessments
      in relation to the NV preference shares
      issued in 1999;•
    Corporate Audits interim and year-end
      reports on the Status of Risk Management
      and Control, and managements response;•
    annual report from the Chief Financial
      Officer on business risks and positive
      assurance on operating controls and corporate policies; and a
      quarterly review of business risks and safeguards;•
    the interim and year-end reports from
      the Code of Business Principles Compliance
      Committee;•
    monitoring the resolution of complaints
      received through the global Ethics
      hotline which included a procedure for handling complaints
      and concerns relating to accounting, internal control and
      auditing matters;•
    quarterly review of progress of the implementation
      of the requirements under Section
      404 of the Sarbanes-Oxley Act of 2002
      with respect to internal controls over financial reporting;•
    review of the application of information
      and communication technology;•
    a review of the annual pension report
      and pensions related accounting and
      proposals;•
    annual review of anti-fraud arrangements;•
    a review of tax planning policy; and•
    review of treasury policies and consideration
      of proposals relating to capital injection,
      debt issuance, investment hedge and
      dividends. External auditorsThe Audit Committee conducted
  a formal evaluation of the effectiveness of the external audit process and carried
  out a formal review of the appointment of external auditors in October 2006.
  The Committee has approved the extension of the current external audit contract
  by one year, and recommended to the Boards the reappointment of the external
  auditors. On the recommendation of the Audit Committee, the Directors will be
  proposing the reappointment of PricewaterhouseCoopers at the AGMs in May 2007.


Both Unilever and the auditors have for many years had safeguards in place to avoid the possibility that the auditors objectivity and independence could be compromised. The Committee reviewed the report from
PricewaterhouseCoopers on the actions they take to comply with the professional and regulatory requirements and best practice designed to ensure their independence from Unilever. The UK lead partner in charge of the audit, who was appointed in 2001,
rotated off at the 2006 AGM and a new lead partner was appointed in May 2006, and assumed responsibility for the audit of the 2006 accounts. The committee also reviewed the statutory audit, other audit, tax and other services provided by PricewaterhouseCoopers, and compliance with Unilevers policy, which prescribes in detail the types of engagements
for which the external auditors can and cannot be used: •
    statutory audit services  as detailed
      above, including audit of subsidiaries;•
    other audit services  work which
      regulations or agreements with third
      parties require the auditors to undertake e.g. in connection
      with borrowings and shareholder services;•
    other services  statutory auditors
      may carry out work that they are best
      placed to undertake, including internal control reviews;•
    acquisition and disposal services 
      where the auditors are best placed
      to do this work;•
    tax services  all significant tax
      consulting work is put to tender, except
      where the auditors are best placed to do this; and•
    general consulting  external auditors
      may not tender for general consulting
      work. All engagements over €100,000 require specific advance approval of the Audit Committee Chairman. The overall policy is regularly reviewed and updated in the light of internal developments, external developments
and best practice. The Committee held independent meetings with the external auditors during the year. Internal audit functionThe Committee engaged in discussion
  and review of the Corporate Audit Departments audit plan for the year,
  and approved its budget and resource requirements. The Committee carried out a formal evaluation of the performance of the internal audit function and confirmed that they were satisfied with their relationship with the Chief Auditor. The Committee held independent meetings with the Chief Auditor during the year. Audit Committee
    terms of referenceThe Audit Committees
    terms of reference can be viewed on Unilevers website at www.unilever.com
    or supplied on request. In February 2006, the terms of reference were updated
    to reflect requirements under the Dutch Corporate Governance Code that the
    Audit Committee has oversight of the policy of the Group on tax planning,
    the financing of the Group, and the applications of information and communication
    technology. The Audit Committee carried out a self-assessment of its own performance. Kees StormChairman
  of the Audit CommitteeWim DikCharles Golden
    Byron Grote




|UnileverAnnual Report on Form 20-F 2006 | 63
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|                                               | 
|---------------------------------------------- | 
|Report
            of the Directors(continued) | 
|                                               | 

|Report of the Corporate Responsibility
    and Reputation Committee
|-------------------------------------------------------------------
|                                                                   



Terms of referenceIn 2006, the Committee revised its
name and terms of reference and made the following adjustments: •
    the members of the Committee will include the Executive Director who chairs the Corporate Responsibility Council;•
    the Committee has oversight of and will make recommendations
    to the Boards on Unilevers conduct with regard to corporate and societal
obligations and its reputation as a responsible corporate citizen;•
    it will ensure that appropriate communications policies are in place
    and working effectively to build and protect Unilevers reputation
internally and externally; and•
    it will provide oversight and guidance on the environmental and social impact of how Unilever conducts its business. The full text of the Committees terms of reference can be found on Unilevers website at www.unilever.com. MeetingsIn its four meetings held
in 2006, the Committee focused on a review of its terms of reference, implementation
of Unilevers Code of Business Principles and its supplier code, corporate
responsibility strategy as defined by the newly established Corporate Responsibility
Council (consisting of executive members from supply chain, SEAC, communications
and regional representatives), Unilevers role in the Investment Climate
Facility for Africa and policy issues such as
biofuels. The Committee welcomed the visibility and importance given to the Code by Executive
Directors as an important mechanism to ensure that Unilever operates as a good
corporate citizen. The Committee reviewed the programme for further embedding
of the code in Unilevers business operations, including the training module
to keep the code alive and understood. Unilevers lead role in the Investment Climate Facility for Africa, launched
at the World Economic Forum in Cape Town in June, was discussed. This initiative
is supported by several companies,


governments, the EU Commission and the World Bank. Unilevers commitment
to help drive development and growth in Africa through public/private partnerships
was fully endorsed. The Committee noted good progress made on redefining Unilevers corporate
environmental strategy. The important role and impact that values-led product brands have on the health
and prosperity of the communities Unilever serve was discussed and the CEO leadership
role recognised (Social Innovation: How values-led brands are helping to drive
business strategy, speech by Patrick Cescau, available on Unilevers website
at www.unilever.com). Policy issues discussed included Unilevers strategy on biofuels. First
generation biofuels are made from rapeseed oil and other ingredients generally
used for food, while second generation biofuels are made from materials including
wood, straw, pulp and waste. Members supported Unilevers position to improve
energy efficiency and set targets for the use of renewable energy with the aim
of combating climate change causes. Members also agreed that biofuels can play
an important role as an alternative energy provided they meet the criteria of
being sustainable, efficient and not having a negative impact on public health.
It was agreed that second generation biofuels would meet these criteria. Unilever
should develop a strategy geared towards promoting that more resource, particularly
in R&D, be allocated to accelerating the introduction of second generation
biofuels and other sustainable, cost-effective sources of renewable
energy. Lynda ChalkerChair of the Corporate Responsibility and Reputation CommitteeLeon Brittan 
Antony Burgmans
Wim
DikRalph KuglerExecutive Director




|64 | UnileverAnnual Report on Form 20-F 2006
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| |                               
| | ------------------------------
| | Financial
          Statements
| |                               



|Financial
    Statements |  |  | Contents                                                                     
|------------------------ |  |  | -----------------------------------------------------------------------------
|                         |  |  |                                                                              
|                         |  |  | Statement
    of Directors responsibilities                                 
|                         |  |  | Managements
          report on internal controlover
    financial reporting
|                         |  |  | Auditors report                                                             
|                         |  |  | Consolidated income statement                                                
|                         |  |  | Consolidated statement of recognised
    income and expense                  
|                         |  |  | Consolidated balance sheet                                                   
|                         |  |  | Consolidated cash flow statement                                             
|                         |  |  | Notes to the consolidated accounts                                           
|                         |  |  | 1                                                                            
|                         |  |  | 2                                                                            
|                         |  |  | 3                                                                            
|                         |  |  | 4                                                                            
|                         |  |  | 5                                                                            
|                         |  |  | 6                                                                            
|                         |  |  | 7                                                                            
|                         |  |  | 8                                                                            
|                         |  |  | 9                                                                            
|                         |  |  | 10                                                                           
|                         |  |  | 11                                                                           
|                         |  |  | 12                                                                           
|                         |  |  | 13                                                                           
|                         |  |  | 14                                                                           
|                         |  |  | 15                                                                           
|                         |  |  | 16                                                                           
|                         |  |  | 17                                                                           
|                         |  |  | 18                                                                           
|                         |  |  | 19                                                                           
|                         |  |  | 20                                                                           
|                         |  |  | 21                                                                           
|                         |  |  | 22                                                                           
|                         |  |  | 23                                                                           
|                         |  |  | 24                                                                           
|                         |  |  | 25                                                                           
|                         |  |  | 26                                                                           
|                         |  |  | 27                                                                           
|                         |  |  | 28                                                                           
|                         |  |  | 29                                                                           
|                         |  |  | 30                                                                           
|                         |  |  | 31                                                                           
|                         |  |  | 32                                                                           
|                         |  |  | 33                                                                           
|                         |  |  | 34                                                                           
|                         |  |  | 35                                                                           
|                         |  |  | Selected financial data                                                      
|                         |  |  | Principal group companies and non-current
    investments                    



|UnileverAnnual Report on Form 20-F 2006 | 65
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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Statement of Directors responsibilities
|----------------------------------------
|                                        



Annual accountsThe Directors are required by Title 9, Book 2 of the Civil Code in the Netherlands and the United Kingdom Companies Act 1985 to prepare accounts for each financial year which give a true and fair view of the state of
affairs of the Unilever Group, and the NV and PLC entities as at the end of the financial year and of the profit or loss and cash flows for that year. The Directors consider that, in preparing the accounts, the Group and the NV
and PLC entities have used the most appropriate accounting policies, consistently
applied and supported by reasonable and prudent judgements and estimates, and
that all International Financial Reporting Standards as adopted by the EU which
they consider to be applicable have been followed. The Directors have responsibility for ensuring that NV and PLC keep accounting
records which disclose with reasonable accuracy their financial position and
which enable the Directors to ensure that the accounts comply with the relevant
legislation. They also have a general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Group, and to prevent
and detect fraud and other irregularities. This statement, which should be read in conjunction with the Auditors report,
is made with a view to distinguishing for shareholders the respective responsibilities
of the Directors and of the auditors in
relation to the accounts. A copy of the financial statements of the Unilever Group is placed on our website
at www.unilever.com/investorcentre. The maintenance
and integrity of the website are the responsibility of the Directors, and the
work carried out by the auditors does not involve consideration of these matters.
Accordingly, the auditors accept no responsibility for any changes that may have
occurred to the financial statements since they were initially placed on the
website. Legislation in the United Kingdom and the Netherlands governing the
preparation and dissemination of financial statements may differ from legislation
in other jurisdictions.


Going concernThe
Directors continue to adopt the going concern basis in preparing the accounts.
This is because the Directors, after making enquiries and following a review
of the Groups budget for 2007 and 2008, including
cash flows and borrowing facilities, consider that the Group has adequate resources
to continue in operation for the foreseeable future. Internal and disclosure controls and proceduresUnilever
has a well-established control framework, which is documented and regularly reviewed
by the Boards. This incorporates risk management, internal control procedures
and disclosure controls and procedures (including the operation of the Disclosures
Committee  see page 38) which are designed to provide reasonable, but not absolute, assurance that assets are safeguarded, the risks facing the business are being addressed and all information
required to be disclosed is reported to the Groups senior management, including
where appropriate the Group Chief Executive and Chief Financial Officer, within
the required timeframe. Our procedures cover financial, operational, social, strategic and environmental
risks and regulatory matters. The Boards of NV and PLC have also established
a clear organisational structure, including delegation of appropriate authorities.
The Groups control framework is supported through a Code of Business Principles,
which sets standards of professionalism and integrity for its operations worldwide,
and through an Operational Controls Assessment process, which requires the senior
management in each business unit to assess the effectiveness of financial controls.
In our major units financial controls are subject to a comprehensive assessment
annually with all other controls being reviewed
over a one- to three-year cycle. The Boards have overall responsibility for establishing key procedures designed
to achieve systems of internal control and disclosure control and for reviewing
and evaluating their effectiveness. The day-to-day responsibility for implementation
of these procedures and ongoing monitoring of risk and the effectiveness of controls
rests with the Groups senior management at individual operating company
and regional level. Regions review, on an ongoing basis, the risks faced by their
group and the related internal control arrangements, and provide written reports
to the Group Chief Executive.




|66 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Statement of Directors responsibilities (continued)
|----------------------------------------------------
|                                                    



Unilevers corporate internal audit function plays a key role in providing an objective view and continuous reassurance of the effectiveness of the risk management and related control systems throughout Unilever
to both operating management and the Boards. The Group has an independent Audit Committee, comprised entirely of Independent Non-Executive Directors. This Committee meets regularly with the Chief Auditor and the external auditors. Unilever has a comprehensive budgeting system with an annual budget approved
by the Boards, which is regularly reviewed and updated. Performance is monitored
against budget and the previous year through monthly and quarterly reporting
routines. The Group reports to shareholders quarterly. Unilevers system of risk management has been in place throughout 2006 and
up to the date of this report, and complies with the recommendations of Internal
Control  Revised Guidance for Directors on
the Combined Code, published by the Internal Control Working Party of the
Institute of Chartered Accountants in England & Wales in October 2005. The
Boards have carried out an annual review of the effectiveness of the systems
of risk management and internal control during 2006 in accordance with this guidance,
and have ensured that the necessary actions have been or are being taken to address
any significant failings arising out of that review. Based on an evaluation by the Boards, the Group Chief Executive and the Chief
Financial Officer concluded that the design and operation of the Groups
disclosure controls and procedures as at 31 December 2006 were effective, and
that subsequently there have been no significant changes in the Groups
internal controls, or in other factors that could significantly affect those
controls. It is Unilevers practice to bring acquired companies within the Groups
governance procedures as soon as is practicable and in any event by the end of
the first full year of operation.






|UnileverAnnual Report on Form 20-F 2006 | 67
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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Managements report
    on internal control over financial reporting
|--------------------------------------------------------------------
|                                                                    



In accordance with the requirements of Section 404 of the US Sarbanes-Oxley Act of 2002, the following report is provided by management in respect of the Companys internal control over financial reporting (as
defined in rules 13a-15(f) or rule 15d-15(f) under the US Securities Exchange Act of 1934):

|• | Unilevers management is responsible for establishing
    and maintaining adequate internal control over financial reporting for the group;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|• | Unilevers management has used the Committee
    of Sponsoring Organizations of the Treadway Commission (COSO) framework to evaluate the effectiveness of our internal control over
financial reporting. Management believes that the COSO framework is a suitable framework for its evaluation of our internal control over financial reporting because it is free from bias, permits
reasonably consistent qualitative and quantitative measurements of internal controls, is sufficiently complete so that those relevant factors that would alter a conclusion
about the effectiveness of internal controls are not omitted and is relevant to an evaluation of internal control over financial reporting.
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|• | Management has assessed the effectiveness of internal control over financial reporting as of 31 December 2006, and has concluded that such internal control over financial reporting
is effective.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|• | PricewaterhouseCoopers LLP and PricewaterhouseCoopers Accountants N.V., who have audited the consolidated financial statements of
    the Group for the year ended 31 December 2006,
have also audited managements assessment of the effectiveness of internal control
over financial reporting as at 31 December 2006 and have issued an attestation
report on managements assessment. For
the Auditors report please refer to page
69.                                                                                                                                                                                                                                                                   



|68 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Auditors reportUnited States
|-----------------------------
|                             



Report of the independent registered public accounting firms to the shareholders of Unilever N.V. and Unilever PLC

We have completed an integrated audit of the Unilever Groups 31 December 2006 consolidated accounts and of its internal control over financial reporting as of 31 December 2006 and audits of its 31 December 2005
and 31 December 2004 consolidated accounts in accordance with the standards of the Public Company Accounting Oversight Board (United States). Our opinions, based on our audits, are presented below.

Consolidated accountsIn our opinion, the accompanying
consolidated income statements and the related consolidated balance sheets, consolidated
cash flow statements and consolidated statements of recognised income and expense
present fairly, in all material respects, the financial position of the Unilever
Group at 31 December 2006 and 2005 and the results of its operations and cash
flows for each of the three years in the period ended 31 December 2006, in conformity
with International Financial Reporting Standards (IFRS) as adopted by the European
Union. These consolidated accounts are the responsibility of the Groups
Directors. Our responsibility is to express an opinion on these consolidated
accounts based on our audits. We conducted our audits of these consolidated accounts
in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated accounts are free
of material misstatement. An audit of consolidated accounts includes examining,
on a test basis, evidence supporting the amounts and disclosures in the consolidated
accounts, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall consolidated accounts presentation.
We believe that
our audits provide a reasonable basis for our opinion.

IFRS as adopted by the European Union vary in certain significant respects from
accounting principles generally accepted in the United States of America. Information
relating to the nature and effect of such differences is presented in notes 34
and 35 on pages124 to 140.

As discussed in note 21 on page 108, Unilever changed the manner in which it
accounts for financial instruments upon adoption of International Accounting
Standards No. 32 Financial Instruments: Disclosure and Presentation, and No.
39 Financial Instruments: Recognition and Measurement, on 1 January 2005.

Internal control over financial reportingAlso,
in our opinion, managements assessment, included in the accompanying Managements
report on internal control over financial reporting as
set out on page68, that the Group maintained effective internal control over
financial reporting as of 31 December 2006 based on criteria established in Internal
Control  Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO), is fairly stated, in all material respects, based on those criteria. Furthermore, in our opinion, the Group maintained, in all material respects, effective internal control
over financial reporting as of 31 December 2006, based on criteria established in Internal Control  Integrated Framework issued by the COSO. The Groups management is responsible for maintaining effective internal control over financial
reporting and for its assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express opinions on managements assessment and on the effectiveness of the Groups
internal control over
financial reporting based on our audit.

We conducted our audit of internal control over financial reporting in accordance
with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether effective internal control over financial reporting was
maintained in all material respects. An audit of internal control over financial
reporting includes obtaining an understanding of internal control over financial
reporting, evaluating managements assessment, testing and evaluating the
design and operating effectiveness of internal control, and performing such other
procedures as we consider necessary in the circumstances. We believe that our
audit provides a reasonable basis for our opinion.

A companys internal control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of consolidated accounts for external purposes in accordance
with generally accepted accounting standards and principles. A companys
internal control over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in accordance with generally accepted
accounting standards and principles, and that receipts and expenditures of the
company are being made only in accordance with authorisations of management and
directors of the company; and (iii) provide reasonable assurance regarding prevention
or timely detection of unauthorised acquisition, use, or disposition of the companys
assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

|26 March 2007, Rotterdam, The Netherlands |                            
|----------------------------------------- | ---------------------------
|PricewaterhouseCoopers Accountants N.V    |                            
|As auditors of Unilever N.V.              |                            
|                                          | PricewaterhouseCoopers LLP 
|                                          | London, United Kingdom     
|                                          | As auditors of Unilever PLC
|                                          |                            
|Prof Dr J A van Manen RA                  | 26 March 2007              



|UnileverAnnual Report on Form 20-F 2006 | 69
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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Consolidated income statement Unilever
    Group
|------------------------------------------------
|                                                
|for the year ended 31 December                  



|                                             | € million |   | € million |   | € million |  
|-------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                             | 2006      |   | 2005      |   | 2004      |  
|                                             |           |   |           |   |           |  
|Continuing operations                        |           |   |           |   |           |  
|Turnover2                                    | 39 642    |   | 38 401    |   | 37 168    |  
|Operating profit2                            | 5 408     |   | 5 074     |   | 3 981     |  
|After (charging)/crediting:                  |           |   |           |   |           |  
|Restructuring 3                              | (704      | ) | (328      | ) | (913      | )
|Business disposals, impairments and other 3  | 196       |   | (249      | ) | (908      | )
|Gain on US healthcare and
 UK pensions3      | 266       |   |          |   |          |  
|                                             |           |   |           |   |           |  
|Net finance costs 5                          | (721      | ) | (613      | ) | (623      | )
|                                             |           |   |           |   |           |  
|Finance income                               | 128       |   | 129       |   | 145       |  
|Finance costs                                | (590      | ) | (689      | ) | (714      | )
|Preference shares provision                  | (300      | ) |          |   |          |  
|Pensions and similar obligations             | 41        |   | (53       | ) | (54       | )
|                                             |           |   |           |   |           |  
|Share of net profit/(loss) of joint ventures | 78        |   | 47        |   | 39        |  
|Share of net profit/(loss) of associates     | 36        |   | (25       | ) | 2         |  
|Other income from non-current investments11  | 30        |   | 33        |   | 54        |  
|                                             |           |   |           |   |           |  
|Profit before taxation                       | 4 831     |   | 4 516     |   | 3 453     |  
|Taxation 6                                   | (1 146    | ) | (1 181    | ) | (725      | )
|                                             |           |   |           |   |           |  
|Net profit from continuing operations        | 3 685     |   | 3 335     |   | 2 728     |  
|Net profit from discontinued operations 27   | 1 330     |   | 640       |   | 213       |  
|                                             |           |   |           |   |           |  
|Net profit                                   | 5 015     |   | 3 975     |   | 2 941     |  
|Attributable to:                             |           |   |           |   |           |  
|Minority interests                           | 270       |   | 209       |   | 186       |  
|Shareholders equity                         | 4 745     |   | 3 766     |   | 2 755     |  
|                                             |           |   |           |   |           |  

|                             |      |  |      |  |      | 
|---------------------------- | ---- |  | ---- |  | ---- | 
|                             | €    |  | €    |  | €    | 
|Combined earnings per share7 | 2006 |  | 2005 |  | 2004 | 
|                             |      |  |      |  |      | 
|From continuing operations   |      |  |      |  |      | 
|Basic earnings per share     | 1.19 |  | 1.07 |  | 0.87 | 
|Diluted earnings per share   | 1.15 |  | 1.04 |  | 0.84 | 
|                             |      |  |      |  |      | 
|From discontinued operations |      |  |      |  |      | 
|Basic earnings per share     | 0.46 |  | 0.22 |  | 0.07 | 
|Diluted earnings per share   | 0.45 |  | 0.21 |  | 0.07 | 
|                             |      |  |      |  |      | 
|From total operations        |      |  |      |  |      | 
|Basic earnings per share     | 1.65 |  | 1.29 |  | 0.94 | 
|Diluted earnings per share   | 1.60 |  | 1.25 |  | 0.91 | 
|                             |      |  |      |  |      | 

References in the consolidated income statement, consolidated statement of recognised
income and expense, consolidated cash flow statement and consolidated balance
sheet relate to notes on pages 74 to 140, which form an integral part of the
consolidated financial statements.

Accounting policies of the Unilever Group
    are set out in note 1 on pages 74 to 78.

Variations from United States generally accepted accounting principles and Securities
and Exchange Commission Financial Statement Requirements Regulation S-X are outlined
in notes 34 and 35 on pages 124 to
140.



|70 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Consolidated statement
    of recognised income and expenseUnilever Group
|-------------------------------------------------------------------------
|                                                                         
|for the year ended
    31 December                                       



|                                                       | € million |   | € million |   | € million |  
|------------------------------------------------------ | --------- | - | --------- | - | --------- | -
|                                                       | 2006      |   | 2005      |   | 2004      |  
|                                                       |           |   |           |   |           |  
|Fair value gains/(losses) net of tax:                  |           |   |           |   |           |  
|On cash flow hedges                                    | 6         |   | 14        |   | n/a       |  
|On available-for-sale financial assets                 | 15        |   |          |   | n/a       |  
|Actuarial gains/(losses) on pension schemes net of tax | 853       |   | (49       | ) | (480      | )
|Currency retranslation gains/(losses) net of tax(a)    | (335      | ) | 513       |   | 80        |  
|                                                       |           |   |           |   |           |  
|Net income/(expense) recognised directly in equity     | 539       |   | 478       |   | (400      | )
|                                                       |           |   |           |   |           |  
|Net profit                                             | 5 015     |   | 3 975     |   | 2 941     |  
|                                                       |           |   |           |   |           |  
|Total recognised income and expense21                  | 5 554     |   | 4 453     |   | 2 541     |  
|                                                       |           |   |           |   |           |  
|Attributable to:                                       |           |   |           |   |           |  
|Minority interests                                     | 242       |   | 249       |   | 167       |  
|Shareholders equity                                   | 5 312     |   | 4 204     |   | 2 374     |  
|                                                       |           |   |           |   |           |  

|(a) | Includes fair value gains/(losses) on net investment hedges of €(779)
    million (2005: €332 million; 2004 n/a).
|--- | -----------------------------------------------------------------------------------------------------------------



|UnileverAnnual Report on Form 20-F 2006 | 71
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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Consolidated balance sheetUnilever Group
|----------------------------------------
|                                        
|as at 31 December                       



|                                                                    | € million |   | € million |  
|------------------------------------------------------------------- | --------- | - | --------- | -
|                                                                    | 2006      |   | 2005      |  
|                                                                    |           |   |           |  
|Goodwill 9                                                          | 12 425    |   | 12 963    |  
|Intangible assets 9                                                 | 4 781     |   | 5 092     |  
|Property, plant and equipment 10                                    | 6 276     |   | 6 492     |  
|Pension asset for funded schemes in surplus 20                      | 1 697     |   | 1 036     |  
|Trade and other receivables due after more than one year 14         | 252       |   | 231       |  
|Deferred tax assets 12                                              | 1 266     |   | 1 703     |  
|Other non-current assets 11                                         | 874       |   | 841       |  
|                                                                    |           |   |           |  
|Total non-current assets                                            | 27 571    |   | 28 358    |  
|                                                                    |           |   |           |  
|Inventories 13                                                      | 3 796     |   | 4 107     |  
|Trade and other current receivables 14                              | 4 290     |   | 4 830     |  
|Current tax assets                                                  | 125       |   | 124       |  
|Cash and cash equivalents 15                                        | 1 039     |   | 1 529     |  
|Other financial assets 15                                           | 237       |   | 335       |  
|Assets held for sale 27                                             | 14        |   | 217       |  
|                                                                    |           |   |           |  
|Total current assets                                                | 9 501     |   | 11 142    |  
|                                                                    |           |   |           |  
|Borrowings due within one year 16                                   | (4 362    | ) | (5 942    | )
|Trade payables and other current liabilities 18                     | (7 934    | ) | (8 228    | )
|Current tax liabilities                                             | (579      | ) | (554      | )
|Provisions 19                                                       | (1 009    | ) | (644      | )
|Liabilities associated with assets held for sale 27                 |          |   | (26       | )
|                                                                    |           |   |           |  
|Total current liabilities                                           | (13 884   | ) | (15 394   | )
|                                                                    |           |   |           |  
|Net current assets/(liabilities)                                    | (4 383    | ) | (4 252    | )
|                                                                    |           |   |           |  
|Total assets less current liabilities                               | 23 188    |   | 24 106    |  
|                                                                    |           |   |           |  
|Borrowings due after more than one year 16                          | 4 239     |   | 6 457     |  
|Trade payables and other liabilities due after more than
one year18 | 399       |   | 389       |  
|Non-current tax liabilities                                         | 272       |   | 213       |  
|Pensions and post-retirement healthcare liabilities:                |           |   |           |  
|Funded schemes in deficit 20                                        | 1 379     |   | 2 415     |  
|Unfunded schemes20                                                  | 3 398     |   | 4 202     |  
|Provisions 19                                                       | 826       |   | 732       |  
|Deferred tax liabilities 12                                         | 1 003     |   | 933       |  
|                                                                    |           |   |           |  
|Total non-current liabilities                                       | 11 516    |   | 15 341    |  
|                                                                    |           |   |           |  
|Called up share capital21                                           | 484       |   | 512       |  
|Share premium account21                                             | 165       |   | 162       |  
|Other reserves21                                                    | (2 143    | ) | (2 328    | )
|Retained profit21                                                   | 12 724    |   | 10 015    |  
|                                                                    |           |   |           |  
|Shareholders equity                                                | 11 230    |   | 8 361     |  
|Minority interests 21                                               | 442       |   | 404       |  
|                                                                    |           |   |           |  
|Total equity                                                        | 11 672    |   | 8 765     |  
|                                                                    |           |   |           |  
|Total capital employed                                              | 23 188    |   | 24 106    |  
|                                                                    |           |   |           |  

Commitments and contingent liabilities are shown in note 25 on page 112.

These financial statements were approved by the Directors on 26 March 2007.



|72 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Consolidated cash flow
        statementUnilever
    Group
|----------------------------------------------------------
|                                                          
|for the year ended 31 December                            



|                                                                                     | € million |   | € million |   | € million |  
|------------------------------------------------------------------------------------ | --------- | - | --------- | - | --------- | -
|                                                                                     | 2006      |   | 2005      |   | 2004      |  
|                                                                                     |           |   |           |   |           |  
|Cash flow from operating activities 28                                               | 5 574     |   | 5 924     |   | 6 925     |  
|Income tax paid                                                                      | (1 063    | ) | (1 571    | ) | (1 378    | )
|                                                                                     |           |   |           |   |           |  
|Net cash flow from operating activities                                              | 4 511     |   | 4 353     |   | 5 547     |  
|                                                                                     |           |   |           |   |           |  
|Interest received                                                                    | 125       |   | 130       |   | 168       |  
|Purchase of intangible assets                                                        | (113      | ) | (92       | ) | (89       | )
|Purchase of property, plant and equipment                                            | (1 013    | ) | (914      | ) | (978      | )
|Disposal of property, plant and equipment                                            | 192       |   | 124       |   | 151       |  
|Sale and leaseback transactions resulting in operating leases                        |          |   | 69        |   | 47        |  
|Acquisition of group companies, joint ventures and associates                        | (96       | ) | (20       | ) | (40       | )
|Consideration paid in respect of acquisitions made in previous years                 |          |   |          |   | (158      | )
|Disposal of group companies, joint ventures and associates                           | 1 873     |   | 804       |   | 413       |  
|Payments received in advance for future disposals                                    |          |   |          |   | 101       |  
|Acquisition of other non-current investments                                         | (90       | ) | (50       | ) | (25       | )
|Disposal of other non-current investments                                            | 61        |   | 83        |   | 68        |  
|Dividends from joint ventures, associates and other non-current investments          | 120       |   | 65        |   | 92        |  
|(Purchase)/sale of financial assets                                                  | 96        |   | 316       |   | 130       |  
|                                                                                     |           |   |           |   |           |  
|Net cash flow from/(used in) investing activities                                    | 1 155     |   | 515       |   | (120      | )
|                                                                                     |           |   |           |   |           |  
|Dividends paid on ordinary share capital                                             | (2 602    | ) | (1 804    | ) | (1 720    | )
|Interest and preference dividends paid                                               | (605      | ) | (643      | ) | (787      | )
|Additional borrowings and change in short-term borrowings                            | 2 154     |   | 3 968     |   | 2 966     |  
|Repayment of borrowings                                                              | (5 364    | ) | (4 795    | ) | (6 008    | )
|Sale and leaseback transactions resulting in finance leases                          | 2         |   |          |   | 211       |  
|Capital element of finance lease rental payments                                     | (73       | ) | (53       | ) | (59       | )
|Movement on treasury stock                                                           | 98        |   | (1 276    | ) | (332      | )
|Dividends paid and other payments (to)/from minority shareholders and joint ventures | (182      | ) | (218      | ) | (209      | )
|                                                                                     |           |   |           |   |           |  
|Net cash flow from/(used in) financing activities                                    | (6 572    | ) | (4 821    | ) | (5 938    | )
|                                                                                     |           |   |           |   |           |  
|Net increase/(decrease) in cash and cash equivalents                                 | (906      | ) | 47        |   | (511      | )
|Cash and cash equivalents at the beginning of the year                               | 1 265     |   | 1 406     |   | 1 428     |  
|Effect of foreign exchange rate changes                                              | 351       |   | (188      | ) | 489       |  
|                                                                                     |           |   |           |   |           |  
|Cash and cash equivalents at the end of the year15                                   | 710       |   | 1 265     |   | 1 406     |  
|                                                                                     |           |   |           |   |           |  

The cash flows of pension funds (other than contributions and other direct payments
made by the Group in respect of pensions and similar obligations) are not included
in the consolidated cash flow statement. Cash flows relating to discontinued
operations included above are set out in note 27 on page 114.



|UnileverAnnual Report on Form 20-F 2006 | 73
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|                                    | 
|----------------------------------- | 
|Financial
    Statements(continued) | 
|                                    | 

|Notes to the consolidated
        accountsUnilever
    Group
|------------------------------------------------------------
|                                                            



1 Accounting
  information and policies

The accounting policies adopted are essentially the same as those which applied for the previous financial year. Changes arising from interpretations or amendments of applicable accounting standards are set out below
under the heading of Companies legislation and accounting standards. UnileverThe two parent companies, NV and PLC, together
with their group companies, operate as a single economic entity (the Unilever
Group, also referred to as Unilever or the Group). NV and PLC have the same Directors
and are linked by a series of agreements, including an Equalisation Agreement,
which are designed so that the position of the shareholders of both companies
is as nearly as possible the same as if they held shares in a single company. The Equalisation Agreement provides that both companies adopt the same accounting
principles and requires as a general rule the dividends and other rights and
benefits (including rights on liquidation) attaching to
each €0.16 nominal of ordinary share capital of NV to be equal in value
at the relevant rate of exchange to the dividends and other rights and benefits
attaching to each 31/9p nominal of ordinary share capital of PLC, as if each such unit of capital formed part of the ordinary capital of one and the same company. For additional information please refer to Corporate
governance on page 39. Basis of consolidationDue to the operational and contractual arrangements
referred to above, NV and PLC form a single reporting entity for the purposes
of presenting consolidated accounts. Accordingly, the accounts of Unilever are
presented by both NV and PLC as their respective consolidated accounts. Group
companies included in the consolidation are those companies controlled by NV
or PLC. Control exists when the Group has the power to govern the financial and
operating policies of an
entity so as to obtain benefits from its activities. The net assets and results of acquired businesses are included in the consolidated
accounts from their respective dates of acquisition, being the date on which
the Group obtains control. The results of disposed businesses are included in
the consolidated accounts up to their date of disposal, being the date control
ceases. Companies legislation and accounting standardsThe consolidated accounts have been prepared
in accordance with International Financial Reporting Standards (IFRS) as adopted
by the EU, including interpretations from the International Financial Reporting
Interpretations Committee (IFRIC) and the Standing Interpretations Committee
(SIC), and with Book 2 of the Civil Code in the Netherlands and the United Kingdom
Companies Act 1985. The accounts are prepared under the historical cost convention unless otherwise
indicated. The accounting policies adopted are consistent with those of the previous financial
year except that the Group has adopted the following IFRIC interpretations with
effect from 1 January 2006. Adoption of these interpretations did not have a
material effect on the financial statements of the Group. •
    IFRIC 4 Determining Whether an Arrangement Contains a Lease, provides guidance in determining whether arrangements contain a lease
to which lease accounting must be applied.•
    IFRIC 5 Rights to Interests Arising from Decommissioning, Restoration and Environmental Rehabilitation Funds, establishes the
accounting treatment for funds established to help finance decommissioning for a companys assets. The Group also applied the amendment to IAS 39 Financial Instruments: Recognition
and Measurement and IFRS 4 Insurance Contracts which requires
that financial guarantee contracts are accounted for as financial instruments,
initially recognised at fair value. As the Group has no material external financial
guarantees, the amendment did not have a material effect on the financial statements.


In addition, the Group has applied the following
  changes in presentation of the financial statements: •
    Within the income statement, costs and revenues relating to restructuring, business disposals and impairments are shown separately;•
    Within the balance sheet, current tax assets were previously shown net within current tax liabilities. These are now reported separately on a
gross basis; and•
    Secondary reporting segments are presented in four reporting segments, as opposed to six reporting segments in 2005. Further information is
provided on page 81. Variations from United States generally accepted accounting principles and Securities
and Exchange Commission Financial Statement Requirements Regulation S-X are outlined
in notes 34 and 35 on pages 124 to
140. Foreign currenciesItems included in the financial statements of
group companies are measured using the currency of the primary economic environment
in which each entity operates (its functional currency). The consolidated financial
statements are presented in euros. The functional currencies of NV and PLC are
euros and sterling respectively. Foreign currency transactions are translated into the functional currency using
the exchange rates prevailing at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such transactions and from
the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the income statement, except
when deferred in equity as qualifying hedges. Those arising on trading transactions
are taken to operating profit; those arising on cash, financial assets and borrowings
are classified as finance income or cost. In preparing the consolidated financial statements, the income statement, the
cash flow statement and all other movements in assets and liabilities are translated
at annual average rates of exchange. The balance sheet, other than the ordinary
share capital of NV and PLC, is translated at year-end rates of exchange. In
the case of hyper-inflationary economies, which are those in which inflation
exceeds 100% cumulatively over a three-year period, the accounts are adjusted
to reflect current price levels and remove the influences of inflation before
being translated. The ordinary share capital of NV and PLC is translated in accordance with the
Equalisation Agreement. The difference between the resulting value for PLC and
the value derived by applying the year-end rate of exchange is taken to other
reserves (see note 23 on page 110). The effects of exchange rate changes during the year on net assets at the beginning
of the year are recorded as a movement in shareholders equity, as is the
difference between profit of the year retained at average rates of exchange and
at year-end rates of exchange. For these purposes net assets include loans between
group companies and related foreign exchange contracts, if any, for which settlement
is neither planned nor likely to occur in the foreseeable future. Exchange gains/losses
on hedges of net assets are also recorded as a movement in equity. Cumulative exchange differences arising since the transition date of 1 January
2004 are reported as a separate component of other reserves (see note 23 on page
110). In the event of disposal or part disposal of an interest in a group company
either through sale or as a result of a repayment of capital, the cumulative
exchange difference is recognised in the income statement as part of the profit
or loss on disposal of group companies. Business CombinationsBusiness combinations are accounted for using
the acquisition accounting method. This involves recognising identifiable assets
and liabilities of the acquired business at fair value. Acquisitions of minority interests are accounted for using the parent entity
method, whereby the difference between the consideration and the book value
of the share of the net assets acquired is recognised as
goodwill.




|74 | UnileverAnnual Report on Form 20-F 2006
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| |                                    
| | -----------------------------------
| | Financial
    Statements(continued)
| |                                    

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



1 Accounting information and policies(continued)

GoodwillGoodwill (being the difference between the fair
value of consideration paid for new interests in group companies, joint ventures
and associates and the fair value of the Groups share of their net identifiable
assets and contingent liabilities at the date of acquisition) is capitalised.
Goodwill is not amortised, but is subject to an annual review for impairment
(or more frequently if necessary). Any impairment is charged to the income statement
as it
arises. For the purpose of impairment testing, goodwill acquired in a business combination
is, from the acquisition date, allocated to each of the Groups cash generating
units, or groups of cash generating units, that are expected to benefit from
the synergies of the combination, irrespective of whether other assets or liabilities
of the acquired business are assigned to those units or group of units. Each
unit or group of units to which the goodwill is allocated represents the lowest
level within the Group at which the goodwill is monitored for internal management
purposes, and is not larger than a segment based on either the Groups primary
or the Groups secondary reporting format. Intangible assetsOn acquisition of group companies, Unilever
recognises any specifically identifiable intangible assets separately from goodwill,
initially measuring the intangible assets at fair value. Separately purchased
intangible assets are initially measured at cost. Finite-lived intangible assets
mainly comprise patented and non-patented technology, know-how and software.
These assets are capitalised and amortised on a straight-line basis in the income
statement over the period of their expected useful lives, or the period of legal
rights if shorter, none of which exceeds ten years. Periods in excess of five
years are used only where the Directors are satisfied that the life of these
assets will clearly exceed that
period. Indefinite-lived intangibles are not amortised, but are subject to review for
impairment. Unilever monitors the level of product development costs against all the criteria
set out in IAS 38. These include the requirement to establish that a flow of
economic benefits is probable before costs are capitalised. For Unilever this
is evident only shortly before a product is launched into the market. The level
of costs incurred after these criteria have been met is currently insignificant. Property, plant and equipmentProperty, plant and equipment is stated at cost
less depreciation and impairment. Depreciation is provided on a straight-line
basis at percentages of cost based on the expected average useful lives of the
assets and their residual values. Estimated useful lives by major class of assets
are as follows: Freehold buildings
        40 years(no depreciation on freehold land)Leasehold buildings
        40 years
        *Plant and equipment
        220 years*or life of lease if less than 40 years Property, plant and equipment is subject to review for impairment if triggering
events or circumstances indicate that this is necessary. Any impairment is charged
to the income statement as it arises. Other non-current assetsJoint ventures are undertakings in which the
Group has an interest and which are jointly controlled by the Group and one or
more other parties. Associates are undertakings in which the Group has an investment
and can
exercise significant influence. Interests in joint ventures and associates are accounted for using the equity
method and are stated in the consolidated balance sheet at cost, adjusted for
the movement in the Groups share of their net assets and liabilities. The
Groups share of the profit or loss after tax of joint ventures and associates
is included in the Groups consolidated profit before taxation. Biological assets are stated at fair value less estimated point-of-sale costs.


Financial instrumentsFinancial instruments are recognised when
    the Group becomes party to the contract. They are initially measured at fair
    value (the transaction price) adjusted, in the case of instruments not classified
    as fair value through profit or loss, by directly attributable transaction
  costs. Financial assetsMarket purchases and sales of financial assets
  are recognised using settlement date accounting. Financial assets, other than
  those which are financial assets at fair value through profit or loss, are
  initially recognised at fair value plus directly attributable transaction costs.
  Any impairment of a financial asset is charged to the income statement as it
  arises. Financial assets are classified according to the purpose for which the investments
were acquired. This gives rise to the following categories: held-to-maturity
investments, loans and receivables, available-for-sale financial assets and financial
assets at fair value through profit or loss. Unilever determines the classification
of its investments at initial recognition. Held-to-maturity investmentsHeld-to-maturity investments are non-derivative
financial assets with fixed or determinable payments and fixed maturities that
management has the positive intention and ability to hold to maturity. They are
included in non-current investments at amortised cost using the effective interest
method, less any amounts written off to reflect impairment. Loans and receivablesLoans and receivables are non-derivative financial
assets with fixed or determinable payments that are not quoted in an active market.
They arise when the Group provides money, goods or services directly to a counterparty
with no intention of trading the receivable. Loans and receivables are included
in trade and other receivables in the balance sheet at amortised cost. Short-term loans and receivables are initially measured at original invoice amount
and subsequently measured after deducting any provision for impairment. Available-for-sale financial assetsAvailable-for-sale financial assets are non-derivative
financial assets that are either designated in this category or not classified
in any of the other categories. They are included in non-current assets unless
management intends to dispose of the investment within 12 months of the balance
sheet date. When securities classified as available-for-sale are sold or impaired,
the accumulated fair value adjustments recognised in equity are included in the
income statement as gains and losses from investment securities. Interest on
available-for-sale securities calculated using the effective interest rate method
is recognised
in the income statement as part of other income. Dividends
on available-for-sale equity instruments are recognised in the income statement
as part of other income when the Groups right to receive payment is established. Financial assets at fair value through profit or lossA financial asset is classified in this category
if acquired principally for the purpose of selling in the short term or if so
designated. Derivatives are also classified in this category unless they are
designated as hedges. Assets in this category are classified as current assets
if they are either held-for-trading or are expected to be realised within 12
months of the balance sheet date. Directly attributable transaction costs related
to the purchase of the assets are expensed as incurred. Gains and losses arising
from changes in fair value are included in the income statement.




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|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
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|                                                                



1 Accounting information and policies(continued)

Borrowings and other financial liabilitiesBorrowings are recognised initially at fair
value, net of transaction costs incurred. Borrowings are subsequently stated
at amortised cost unless they are part of a fair value hedge accounting relationship;
any difference between the amount on initial recognition and the redemption value
is recognised in the income statement over the period of the borrowings using
the effective interest method. Those borrowings that are part of a fair value
hedge accounting relationship are also recorded on an amortised cost basis, plus
or minus the fair value attributable to the risk being hedged with a corresponding
entry in the income statement. Short-term financial liabilities are measured at original invoice amount. Borrowing
costs are not capitalised as part of property, plant and equipment. Derivative financial instrumentsDerivatives are measured on the balance sheet
at fair value. The activities of the Group expose it primarily to the financial
risks of changes in foreign currency exchange rates and interest rates. The Group
uses foreign exchange forward contracts, interest rate swap contracts and forward
rate agreements to hedge these exposures. The Group also uses commodity contracts
to hedge future requirements for certain raw materials, almost always for physical
delivery. Those contracts that can also be settled in cash are treated as a financial
instrument. The Group does not use derivative financial instruments for speculative
purposes. The use of leveraged instruments is not permitted. Changes in the fair value of derivative financial instruments that are designated
and effective as hedges of future cash flows are recognised directly in equity,
and any ineffective portion is recognised immediately in the income statement.
If the cash flow hedge of a firm commitment or forecasted transaction subsequently
results in the recognition of a non-financial asset or a liability, then, at
the time the non-financial asset or liability is recognised, the associated gains
or losses on the derivative that had previously been recognised in equity are
included in the initial measurement of the non-financial asset or liability.
For hedged items that do not result in the recognition of a non-financial asset
or a liability, amounts deferred in equity are recognised in the income statement
in the same period in which the hedged item affects net profit or loss. Hedge accounting is discontinued when the hedging instrument no longer qualifies
for hedge accounting. At that time, any cumulative gain or loss on the hedging
instrument recognised in equity is retained in equity until the forecasted transaction
occurs. If a hedged transaction is no longer expected to occur, the net cumulative
gain or loss recognised in equity is transferred to the income statement. For an effective hedge of an exposure to changes in the fair value of recognised
assets and liabilities, the hedged item is adjusted for changes in fair value
attributable to the risk being hedged with the corresponding entry in the income
statement. Gains or losses from re-measuring the derivative, or for non-derivatives
the foreign currency component of its carrying amount, are recognised in the
income statement. Changes in fair value of net investment hedges in relation to foreign subsidiaries
are recognised directly in equity. Gains and losses accumulated in equity are
included in the income statement when the foreign operation is partially disposed
of or sold. Changes in the fair value of derivative financial instruments that do not qualify
for hedge accounting are recognised in the income statement as they arise. Derivatives embedded in other financial instruments or other host contracts are
treated as separate derivatives when their risks and characteristics are not
closely related to those of host contracts and the host contracts are carried
at fair value with unrealised gains or losses reported in the income statement.


Valuation principlesThe fair values of quoted investments are
  based on current bid prices. For unlisted and for listed securities where the
  market for a financial asset is not active the Group establishes fair value
  using valuation techniques. These include the use of recent arms length
  transactions, reference to other instruments that are substantially the same
  and discounted cash flow analysis. Impairment of financial instrumentsAt each balance sheet date the Group assesses
whether there is objective evidence that a financial asset or a group of financial
assets is impaired. In the case of equity securities classified as available-for-sale,
a significant or prolonged decline in the fair value of the security below its
cost is considered in determining whether the securities are impaired. If any
such evidence exists for available-for-sale financial assets, the cumulative
loss  measured as the difference between the acquisition cost and the current
fair value, less any impairment loss on that financial asset previously recognised
in profit or loss  is removed from equity and recognised in the income
statement. Impairment losses recognised in the income statement on equity instruments
are not subsequently
reversed through the income statement. InventoriesInventories are valued at
the lower of weighted average cost and net realisable value. Cost comprises direct
costs and, where appropriate, a proportion of attributable production overheads. Cash and cash equivalentsFor the purpose of preparation
of the cash flow statement, cash and cash equivalents includes cash at bank and
in hand, highly liquid interest bearing securities with original maturities of
three months or less, and
bank overdrafts. Pensions and similar obligationsThe operating and financing
costs of defined benefit plans are recognised separately in the income statement.
Service costs are systematically allocated over the service lives of employees,
and financing costs are recognised in the periods in which they arise. The costs
of individual events such as past service benefit enhancements, settlements and
curtailments are recognised immediately in the income statement. Variations from
expected costs, arising from the experience of the plans or changes in actuarial
assumptions, are recognised immediately in the statement of recognised income
and expense. The assets and liabilities of defined benefit plans are recognised
at fair value in the balance sheet. The charges to the income statement for defined contribution plans are the company
contributions payable, and the assets and liabilities of such plans are not included
in the balance sheet of the Group. All defined benefit plans are subject to regular actuarial review using the projected
unit method, either by external consultants or by actuaries employed by Unilever.
Group policy is that the most important plans, representing approximately 80%
of the defined benefit liabilities, are formally valued every year; other principal
plans, accounting for approximately a further 15% of liabilities, have their
liabilities updated each year. Group policy for the remaining plans requires
a full actuarial valuation at least every three years. Asset values for all plans
are updated every year. TaxationIncome tax on the profit or
loss for the year comprises current and deferred tax. Income tax is recognised
in the income statement except to the extent that it relates to items recognised
directly in equity. Current tax is the expected tax payable on the taxable income for the year, using
tax rates enacted or substantively enacted at the balance sheet date, and any
adjustments to tax payable in respect of previous
years.




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| |                                            
| | -------------------------------------------
| | Financial
            Statements(continued)
| |                                            

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



1 Accounting information and policies(continued)

Deferred taxation is recognised using the liability method on taxable temporary differences between the tax base and the accounting base of items included in the balance sheet of the Group. The following temporary
differences are not provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent
that they will probably not reverse in the forseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates prevailing at the year
end unless future rates have been enacted or substantively enacted. A deferred tax asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the asset can be utilised.
Deferred tax assets are reduced to the extent that it is no longer probable that
the related tax benefit will be realised. ProvisionsProvisions are recognised when either a legal
or constructive obligation, as a result of a past event, exists at the balance
sheet date and where the amount of the obligation can be reliably estimated. Segment informationSegmental information is provided
on the basis of geographical segments and product categories. The primary format,
geographic regions, is based on the management structure of the Group, which
operates in three
geographical regions. Revenue recognitionTurnover comprises sales of
goods and services after deduction of discounts and sales taxes. It does not
include sales between group companies. Discounts given by Unilever include rebates,
price reductions and incentives given to customers, promotional couponing and
trade communication costs. Turnover is recognised when the risks and rewards of the underlying products
and services have been substantially transferred to the customer. Revenue from
services is recognised as the services are performed. Interest revenue is recognised
as interest accrues using the effective interest method. Research and market support costsExpenditure on research and
market support, such as advertising, is charged to the income statement when
incurred. LeasesLeases are classified as finance
leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee. All other leases are classified as operating
leases. Assets held under finance leases are recognised as non-current assets of the
Group at their fair value at the date of commencement of the lease or, if lower,
at the present value of the minimum lease payments. The corresponding liability
to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance charges and reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining balance
of the liability. Finance charges are charged directly against income. A profit or loss is recognised on a sale and leaseback transaction based on the
difference between sales proceeds and the carrying amount of the asset. Where
the transaction results in a finance lease, the profit or loss is deferred and
amortised over the lease term. Where the transaction results in an operating
lease, any profit or loss is recognised immediately with reference to the proceeds
of sale and the fair value of the asset. Lease payments relating to operating leases are charged to the income statement
on a straight-line basis over the lease term.


Share-based paymentsThe economic cost of awarding
shares and share options to employees is reflected by recording a charge in the
income statement equivalent to the fair value of the benefit awarded over the
vesting period. The fair value is determined with reference to option pricing
models, principally adjusted Black-Scholes models or a multinomial pricing model. Shares held by employee share trustsThe assets and liabilities
of certain PLC trusts, NV and group companies which purchase and hold NV and
PLC shares to satisfy options granted are included in the consolidated accounts.
The book value of shares held is deducted from other reserves, and trust borrowings
are included in the Groups borrowings. The costs of the trusts are included
in the results of the Group. These shares are excluded from the calculation of
earnings per share. Assets held for saleAssets and groups of assets
and liabilities which comprise disposal groups are classified
as held for sale when all of the following criteria are met: a decision
has been made to sell, the assets are available for sale immediately, the assets
are being actively marketed, and a sale has been or is expected to be concluded
within twelve months of the balance sheet date. Assets and disposal groups held
for sale are valued at the lower of book value or fair value less disposal costs.
Assets held for sale are not depreciated. Critical accounting estimates and judgementsEstimates and judgements are
continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under
the circumstances. The preparation of financial statements under IFRS requires management to make
estimates and assumptions concerning the future. The resulting accounting estimates
will, by definition, seldom equal the related actual results. The estimates and
assumptions that have a significant risk of causing a material adjustment to
the carrying amounts of assets and liabilities within the next financial year
are discussed below. Income statement presentationOn the face of the income statement,
costs and revenues relating to restructuring, business disposals and impairments
are disclosed. In addition, individual items judged to be significant are disclosed
separately. These are material in terms of nature and amount. These disclosures
are given in order to provide additional information to help users better understand
financial performance. Impairment of goodwill and indefinite-lived intangible assetsImpairment reviews in respect of
goodwill and intangible assets are performed at least annually. More regular
reviews are performed if events indicate that this is necessary. Examples of
such triggering events would include a significant planned restructuring, a major
change in market conditions or technology, expectations of future operating losses,
or negative cash flows. The recoverable amounts of cash-generating units are determined based on the
higher of fair value less costs to sell and value-in-use calculations. These
calculations require the use of estimates. Details of key assumptions made are
set out in note 9 on page 89. Retirement benefitsPension accounting requires certain
assumptions to be made in order to value our obligations and to determine the
charges to be made to the income statement. These figures are particularly sensitive
to assumptions for discount rates, mortality, inflation rates and expected long-term
rates of return on assets. Details of assumptions made are given in note 20 on
pages 103 and 104.




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|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
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|                                                                



1 Accounting information and policies(continued)

TaxationThe Group is subject to taxes in numerous jurisdictions.
Significant judgement is required in determining worldwide provision for taxes.
There are many transactions and calculations during the ordinary course of business
for which the ultimate tax determination is uncertain. The Group recognises liabilities
for anticipated tax audit issues based on estimates of whether additional taxes
will be due. Where the final tax outcome of these matters is different from the
amounts that were initially recorded, such differences will impact the income
tax and deferred tax provisions in the period in which such determination is
made. ProvisionsProvision is made, among other reasons, for
legal matters, disputed indirect taxes, employee termination costs and restructuring
where a legal or constructive obligation exists at the balance sheet date and
a reliable estimate can be made of the likely outcome. The nature of these costs
is such that judgement has to be applied to estimate the timing and amount of
cash outflows. Recent accounting developmentsIFRS
7, Financial Instruments: Disclosures, (effective from 1 January
2007), introduces significant new disclosures to improve the information about
financial instruments. It requires the disclosures of qualitative and quantitative
information about exposure to risks arising from financial instruments, including
specified minimum disclosures about credit risk, liquidity risk and market risk,
including analysis of sensitivity to market risk. It replaces disclosure requirements
in IAS 32, Financial Instruments: Disclosure and Presentation. In addition an amendment has been issued to IAS 1 Presentation of Financial
Statements which requires Unilever to make new disclosures to enable the
users of financial statements to evaluate the
Groups objectives, policies and processes for managing capital. Unilever will apply IFRS 7 and the amendment to IAS 1 from January 2007.


IFRS 8 Operating Segments (effective
    from 1 January 2009) introduces a management reporting approach to segment
    reporting. The information reported would be that which management uses internally
    for evaluating the performance of operating segments and allocating resources
    to those segments. It replaces disclosure requirements in IAS 14 Segment
    Reporting and its impact is currently being assessed by the Group. The following interpretations, relevant to Unilever, have been released and will
be adopted by Unilever on the dates as noted. Adoption is not expected to have
a material effect on the consolidated results of operations or financial position
of Unilever. •
    IFRIC 7, Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies (effective for Unilever from 1 January 2007) provides guidance on how to apply the requirements of IAS 29 in a reporting period in which an entity identifies the
existence of hyperinflation in the economy when that economy was not hyperinflationary in the prior period.•
    IFRIC 9 Reassessment of embedded derivatives (effective for Unilever from 1 January 2007) requires an entity to assess whether a
contract contains an embedded derivative at the date an entity first becomes a party to the contract and prohibits reassessment unless there is a change to the contract that
significantly modifies the cash flows.•
    IFRIC 10 Interim Financial Reporting and Impairment (effective for Unilever from 1 January 2007) states that any impairment loss recognised for goodwill and equity instruments classified as available for sale in an interim period may not be reversed in subsequent interim
periods. Recent changes in reporting requirements under US GAAP are discussed in note
34 on page 131.




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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated accounts Unilever Group
|-------------------------------------------------
|                                                 



2 Segment
  information

Our primary reporting segments are geographic, comprising our three operating regions of Europe, The Americas and Asia Africa. The home countries of the Unilever Group are the Netherlands and the United Kingdom.
Turnover for these two countries combined in 2006 was €3 710 million (2005: €3 679 million; 2004: €3 831 million). The combined operating profit in 2006 was €555 million (2005: €648 million; 2004: €667 million).
Turnover for the United States for 2006 was €7 627 million (2005: €7 550 million; 2004: €7 361 million). No other countries had turnover of more than 10% of the group total.

The analysis of turnover by geographical area is stated on the basis of origin.
Turnover on a destination basis would not be materially different. Inter-segment
sales between geographical areas and between product areas as on page 81 are
not material. Total assets and capital expenditure are based on the location
of the assets. Segment results are presented on the basis of operating profit.
Segment assets consist primarily of property, plant and equipment, goodwill and
other intangible assets, inventories and receivables. Corporate assets consist
of financial assets, cash and cash equivalents, other non-current investments
and pension and current and deferred tax assets. Segment liabilities consist
primarily of trade payables and other liabilities. Corporate liabilities include
borrowings, tax balances payable, provisions and pension and deferred tax liabilities.
Capital expenditure comprises additions to property, plant and equipment and
intangible assets, including additions resulting from acquisitions. Other non-cash
charges include charges to the income statement during the year in respect of
share-based compensation, restructuring and other provisions.

Additional segment information relevant to reporting in the United States is
set out in note 35 on pages 132 to 133.

|                                             | € million |   | € million |  | € million |   | € million |  
|-------------------------------------------- | --------- | - | --------- |  | --------- | - | --------- | -
|                                             |           |   | The       |  | Asia      |   |           |  
|Analysis by geographical segment             | Europe    |   | Americas  |  | Africa    |   | Total     |  
|                                             |           |   |           |  |           |   |           |  
|2006                                         |           |   |           |  |           |   |           |  
|Turnover                                     | 15 000    |   | 13 779    |  | 10 863    |   | 39 642    |  
|Operating profit                             | 1 903     |   | 2 178     |  | 1 327     |   | 5 408     |  
|Net finance costs                            |           |   |           |  |           |   | (721      | )
|Share of net profit/(loss) of joint ventures | 17        |   | 60        |  | 1         |   | 78        |  
|Share of net profit/(loss) of associates     | 36        |   |          |  |          |   | 36        |  
|Other income from non-current investments    |           |   |           |  |           |   | 30        |  
|                                             |           |   |           |  |           |   |           |  
|Profit before taxation                       |           |   |           |  |           |   | 4 831     |  
|Taxation                                     |           |   |           |  |           |   | (1 146    | )
|                                             |           |   |           |  |           |   |           |  
|Net profit from continuing operations        |           |   |           |  |           |   | 3 685     |  
|Net profit from discontinued operations      |           |   |           |  |           |   | 1 330     |  
|                                             |           |   |           |  |           |   |           |  
|Net profit                                   |           |   |           |  |           |   | 5 015     |  
|                                             |           |   |           |  |           |   |           |  
|2005                                         |           |   |           |  |           |   |           |  
|Turnover                                     | 14 940    |   | 13 179    |  | 10 282    |   | 38 401    |  
|Operating profit                             | 2 064     |   | 1 719     |  | 1 291     |   | 5 074     |  
|Net finance costs                            |           |   |           |  |           |   | (613      | )
|Share of net profit/(loss) of joint ventures | 11        |   | 36        |  |          |   | 47        |  
|Share of net profit/(loss) of associates     | (25       | ) | 1         |  | (1        | ) | (25       | )
|Other income from non-current investments    |           |   |           |  |           |   | 33        |  
|                                             |           |   |           |  |           |   |           |  
|Profit before taxation                       |           |   |           |  |           |   | 4 516     |  
|Taxation                                     |           |   |           |  |           |   | (1 181    | )
|                                             |           |   |           |  |           |   |           |  
|Net profit from continuing operations        |           |   |           |  |           |   | 3 335     |  
|Net profit from discontinued operations      |           |   |           |  |           |   | 640       |  
|                                             |           |   |           |  |           |   |           |  
|Net profit                                   |           |   |           |  |           |   | 3 975     |  
|                                             |           |   |           |  |           |   |           |  
|2004                                         |           |   |           |  |           |   |           |  
|Turnover                                     | 15 252    |   | 12 296    |  | 9 620     |   | 37 168    |  
|Operating profit                             | 2 045     |   | 896       |  | 1 040     |   | 3 981     |  
|Net finance costs                            |           |   |           |  |           |   | (623      | )
|Share of net profit/(loss) of joint ventures | 6         |   | 31        |  | 2         |   | 39        |  
|Share of net profit/(loss) of associates     | (2        | ) | 3         |  | 1         |   | 2         |  
|Other income from non-current investments    |           |   |           |  |           |   | 54        |  
|                                             |           |   |           |  |           |   |           |  
|Profit before taxation                       |           |   |           |  |           |   | 3 453     |  
|Taxation                                     |           |   |           |  |           |   | (725      | )
|                                             |           |   |           |  |           |   |           |  
|Net profit from continuing operations        |           |   |           |  |           |   | 2 728     |  
|Net profit from discontinued operations      |           |   |           |  |           |   | 213       |  
|                                             |           |   |           |  |           |   |           |  
|Net profit                                   |           |   |           |  |           |   | 2 941     |  
|                                             |           |   |           |  |           |   |           |  



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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated accounts Unilever Group
|-------------------------------------------------
|                                                 



2 Segment information(continued)

|                                                            | € million |   | € million |   | € million |   | € million |  
|----------------------------------------------------------- | --------- | - | --------- | - | --------- | - | --------- | -
|                                                            |           |   | The       |   | Asia      |   |           |  
|Analysis by geographical segment                            | Europe    |   | Americas  |   | Africa    |   | Total     |  
|                                                            |           |   |           |   |           |   |           |  
|Assets                                                      |           |   |           |   |           |   |           |  
|2006                                                        |           |   |           |   |           |   |           |  
|Segment assets                                              | 14 445    |   | 11 550    |   | 5 875     |   | 31 870    |  
|Joint ventures/associates                                   | 78        |   | 16        |   | 9         |   | 103       |  
|                                                            |           |   |           |   |           |   |           |  
|Total assets by geographical segment                        | 14 523    |   | 11 566    |   | 5 884     |   | 31 973    |  
|Corporate assets                                            |           |   |           |   |           |   | 5 099     |  
|                                                            |           |   |           |   |           |   |           |  
|Total assets                                                |           |   |           |   |           |   | 37 072    |  
|                                                            |           |   |           |   |           |   |           |  
|2005                                                        |           |   |           |   |           |   |           |  
|Segment assets(a)                                           | 15 138    |   | 12 532    |   | 6 299     |   | 33 969    |  
|Joint ventures/associates                                   | 26        |   | 37        |   | 21        |   | 84        |  
|                                                            |           |   |           |   |           |   |           |  
|Total assets by geographical segment                        | 15 164    |   | 12 569    |   | 6 320     |   | 34 053    |  
|Corporate assets                                            |           |   |           |   |           |   | 5 447     |  
|                                                            |           |   |           |   |           |   |           |  
|Total assets                                                |           |   |           |   |           |   | 39 500    |  
|                                                            |           |   |           |   |           |   |           |  
|Liabilities                                                 |           |   |           |   |           |   |           |  
|2006                                                        |           |   |           |   |           |   |           |  
|Segment liabilities                                         | 4 375     |   | 1 732     |   | 2 192     |   | 8 299     |  
|Joint ventures/associates                                   | 18        |   | 11        |   | 5         |   | 34        |  
|                                                            |           |   |           |   |           |   |           |  
|Total liabilities by geographical segment                   | 4 393     |   | 1 743     |   | 2 197     |   | 8 333     |  
|Corporate liabilities                                       |           |   |           |   |           |   | 17 067    |  
|                                                            |           |   |           |   |           |   |           |  
|Total liabilities                                           |           |   |           |   |           |   | 25 400    |  
|                                                            |           |   |           |   |           |   |           |  
|2005                                                        |           |   |           |   |           |   |           |  
|Segment liabilities                                         | 4 485     |   | 1 914     |   | 2 244     |   | 8 643     |  
|Joint ventures/associates                                   | 20        |   | 11        |   | 6         |   | 37        |  
|                                                            |           |   |           |   |           |   |           |  
|Total liabilities by geographical segment                   | 4 505     |   | 1 925     |   | 2 250     |   | 8 680     |  
|Corporate liabilities                                       |           |   |           |   |           |   | 22 055    |  
|                                                            |           |   |           |   |           |   |           |  
|Total liabilities                                           |           |   |           |   |           |   | 30 735    |  
|                                                            |           |   |           |   |           |   |           |  
|Capital expenditure                                         |           |   |           |   |           |   |           |  
|2006                                                        | 511       |   | 396       |   | 294       |   | 1 201     |  
|2005                                                        | 447       |   | 305       |   | 298       |   | 1 050     |  
|                                                            |           |   |           |   |           |   |           |  
|Depreciation of property, plant and equipment               |           |   |           |   |           |   |           |  
|2006                                                        | (368      | ) | (239      | ) | (180      | ) | (787      | )
|2005                                                        | (390      | ) | (230      | ) | (150      | ) | (770      | )
|2004                                                        | (429      | ) | (303      | ) | (217      | ) | (949      | )
|                                                            |           |   |           |   |           |   |           |  
|Amortisation of finite-lived intangible assets and software |           |   |           |   |           |   |           |  
|2006                                                        | (63       | ) | (76       | ) | (18       | ) | (157      | )
|2005                                                        | (52       | ) | (38       | ) | (9        | ) | (99       | )
|2004                                                        | (37       | ) | (24       | ) | (3        | ) | (64       | )
|                                                            |           |   |           |   |           |   |           |  

|(a) | During the year the Directors have reassessed the allocation of goodwill to segments following the implementation of a new operating framework and establishment of primary segments based on geographies during 2005. The
reassessment is based on the relative fair values of the segments at the time of the implementation of the new operating framework and results in a reallocation of goodwill (and associated currency retranslation effects during 2005) from Europe and
The Americas regions of €0.1 billion and €1.1 billion respectively into the Asia Africa region. Segmental amounts for 2005 have been amended to reflect this allocation.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|80 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

---



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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



2 Segment information(continued)

|                                 | € million |   | € million |   | € million |   | € million |  
|-------------------------------- | --------- | - | --------- | - | --------- | - | --------- | -
|                                 |           |   | The       |   | Asia      |   |           |  
|Analysis by geographical segment | Europe    |   | Americas  |   | Africa    |   | Total     |  
|                                 |           |   |           |   |           |   |           |  
|Impairment charges               |           |   |           |   |           |   |           |  
|2006                             |           |   |           |   |           |   |           |  
|Goodwill                         | (12       | ) |          |   |          |   | (12       | )
|Intangible assets                |          |   | (2        | ) |          |   | (2        | )
|                                 |           |   |           |   |           |   |           |  
|Total impairment charge          | (12       | ) | (2        | ) |          |   | (14       | )
|                                 |           |   |           |   |           |   |           |  
|2005                             |           |   |           |   |           |   |           |  
|Goodwill                         |          |   | (129      | ) | (2        | ) | (131      | )
|Intangible assets                |          |   | (241      | ) | (10       | ) | (251      | )
|Other                            |          |   |          |   | (15       | ) | (15       | )
|                                 |           |   |           |   |           |   |           |  
|Total impairment charge          |          |   | (370      | ) | (27       | ) | (397      | )
|                                 |           |   |           |   |           |   |           |  
|2004                             |           |   |           |   |           |   |           |  
|Goodwill                         | (147      | ) | (793      | ) | (63       | ) | (1 003    | )
|                                 |           |   |           |   |           |   |           |  
|Other non-cash charges           |           |   |           |   |           |   |           |  
|2006                             | (679      | ) | (231      | ) | (52       | ) | (962      | )
|2005                             | (224      | ) | (311      | ) | (53       | ) | (588      | )
|2004                             | (417      | ) | (472      | ) | (194      | ) | (1 083    | )
|                                 |           |   |           |   |           |   |           |  

Although the Groups operations are managed on a geographical basis, the two Foods and Home and Personal Care categories manage brands which we group into our principal product areas; these are our secondary
reporting segments and are listed below. In 2006, we reviewed the structure of our secondary reporting segments in the light of the planned disposal of the majority of our European frozen foods businesses. As a consequence we are presenting the main
product areas in four reporting segments, as opposed to six reporting segments in 2005. We have presented the information on this basis, as the products in each of the four reported segments are substantially similar in nature, and combining the
segments provides more meaningful information. Information for prior years has been restated accordingly.

Savoury, dressings and spreads including sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, olive oil, margarines and spreads, and cooking
products such as liquid margarines.Ice cream and beverages including
sales of ice cream, tea, weight management products, and nutritionally enhanced
staples sold in developing markets.Personal care including
sales of skin care and hair care products, deodorants and anti-perspirants, and
oral care products.Home care and other operations including
sales of home care products, such as laundry powders and liquids, and a wide
range of cleaning products. To support our consumer brands, we own tea plantations
and palm oil plantations, the results of which are reported within this segment.

|                                             | € million   |  | € million |  | € million |  | € million |  | € million |  | € million |  | € million |  
|-------------------------------------------- | ----------- |  | --------- |  | --------- |  | --------- |  | --------- |  | --------- |  | --------- | -
|                                             |             |  |           |  |           |  |           |  | Home      |  | Home      |  |           |  
|                                             | Savoury,    |  | Ice cream |  |           |  |           |  | care      |  | and       |  |           |  
|                                             | dressings   |  | and       |  |           |  | Personal  |  | and       |  | personal  |  |           |  
|Analysis by product area                     | and spreads |  | beverages |  | Foods     |  | care      |  | other     |  | care      |  | Total     |  
|                                             |             |  |           |  |           |  |           |  |           |  |           |  |           |  
|2006                                         |             |  |           |  |           |  |           |  |           |  |           |  |           |  
|Turnover                                     | 13 767      |  | 7 578     |  | 21 345    |  | 11 122    |  | 7 175     |  | 18 297    |  | 39 642    |  
|Operating profit                             | 1 993       |  | 900       |  | 2 893     |  | 1 913     |  | 602       |  | 2 515     |  | 5 408     |  
|Net finance costs                            |             |  |           |  |           |  |           |  |           |  |           |  | (721      | )
|Share of net profit/(loss) of joint ventures | 13          |  | 64        |  | 77        |  | 1         |  |          |  | 1         |  | 78        |  
|Share of net profit/(loss) of associates     |            |  |          |  |          |  |          |  | 36        |  | 36        |  | 36        |  
|Other income from non-current investments    |             |  |           |  |           |  |           |  |           |  |           |  | 30        |  
|                                             |             |  |           |  |           |  |           |  |           |  |           |  |           |  
|Profit before taxation                       |             |  |           |  |           |  |           |  |           |  |           |  | 4 831     |  
|Taxation                                     |             |  |           |  |           |  |           |  |           |  |           |  | (1 146    | )
|                                             |             |  |           |  |           |  |           |  |           |  |           |  |           |  
|Net profit from continuing operations        |             |  |           |  |           |  |           |  |           |  |           |  | 3 685     |  
|Net profit from discontinued operations      |             |  |           |  |           |  |           |  |           |  |           |  | 1 330     |  
|                                             |             |  |           |  |           |  |           |  |           |  |           |  |           |  
|Net profit                                   |             |  |           |  |           |  |           |  |           |  |           |  | 5 015     |  
|                                             |             |  |           |  |           |  |           |  |           |  |           |  |           |  



|UnileverAnnual Report on Form 20-F 2006 | 81
|--------------------------------------- | --

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



2 Segment information(continued)

|                                             | € million   |  | € million |   | € million |  | € million |  | € million |   | € million |   | € million |  
|-------------------------------------------- | ----------- |  | --------- | - | --------- |  | --------- |  | --------- | - | --------- | - | --------- | -
|                                             |             |  |           |   |           |  |           |  | Home      |   | Home      |   |           |  
|                                             | Savoury,    |  | Ice cream |   |           |  |           |  | care      |   | and       |   |           |  
|                                             | dressings   |  | and       |   |           |  | Personal  |  | and       |   | personal  |   |           |  
|Analysis by product area                     | and spreads |  | beverages |   | Foods     |  | care      |  | other     |   | care      |   | Total     |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|2005                                         |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Turnover                                     | 13 557      |  | 7 332     |   | 20 889    |  | 10 485    |  | 7 027     |   | 17 512    |   | 38 401    |  
|Operating profit                             | 2 026       |  | 609       |   | 2 635     |  | 1 793     |  | 646       |   | 2 439     |   | 5 074     |  
|Net finance costs                            |             |  |           |   |           |  |           |  |           |   |           |   | (613      | )
|Share of net profit/(loss) of joint ventures | 10          |  | 36        |   | 46        |  | 1         |  |          |   | 1         |   | 47        |  
|Share of net profit/(loss) of associates     |            |  |          |   |          |  |          |  | (25       | ) | (25       | ) | (25       | )
|Other income from non-current investments    |             |  |           |   |           |  |           |  |           |   |           |   | 33        |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Profit before taxation                       |             |  |           |   |           |  |           |  |           |   |           |   | 4 516     |  
|Taxation                                     |             |  |           |   |           |  |           |  |           |   |           |   | (1 181    | )
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Net profit from continuing operations        |             |  |           |   |           |  |           |  |           |   |           |   | 3 335     |  
|Net profit from discontinued operations      |             |  |           |   |           |  |           |  |           |   |           |   | 640       |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Net profit                                   |             |  |           |   |           |  |           |  |           |   |           |   | 3 975     |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|2004                                         |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Turnover                                     | 13 476      |  | 7 090     |   | 20 566    |  | 9 780     |  | 6 822     |   | 16 602    |   | 37 168    |  
|Operating profit                             | 1 880       |  | (30       | ) | 1 850     |  | 1 508     |  | 623       |   | 2 131     |   | 3 981     |  
|Net finance costs                            |             |  |           |   |           |  |           |  |           |   |           |   | (623      | )
|Share of net profit/(loss) of joint ventures | 5           |  | 31        |   | 36        |  | 1         |  | 2         |   | 3         |   | 39        |  
|Share of net profit/(loss) of associates     |            |  |          |   |          |  |          |  | 2         |   | 2         |   | 2         |  
|Other income from non-current investments    |             |  |           |   |           |  |           |  |           |   |           |   | 54        |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Profit before taxation                       |             |  |           |   |           |  |           |  |           |   |           |   | 3 453     |  
|Taxation                                     |             |  |           |   |           |  |           |  |           |   |           |   | (725      | )
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Net profit from continuing operations        |             |  |           |   |           |  |           |  |           |   |           |   | 2 728     |  
|Net profit from discontinued operations      |             |  |           |   |           |  |           |  |           |   |           |   | 213       |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Net profit                                   |             |  |           |   |           |  |           |  |           |   |           |   | 2 941     |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Assets                                       |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|2006                                         |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Segment assets                               | 20 434      |  | 4 485     |   | 24 919    |  | 3 616     |  | 3 335     |   | 6 951     |   | 31 870    |  
|Joint ventures/associates                    | 29          |  | 24        |   | 53        |  | 7         |  | 43        |   | 50        |   | 103       |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Total assets by product area                 | 20 463      |  | 4 509     |   | 24 972    |  | 3 623     |  | 3 378     |   | 7 001     |   | 31 973    |  
|Corporate assets                             |             |  |           |   |           |  |           |  |           |   |           |   | 5 099     |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Total assets                                 |             |  |           |   |           |  |           |  |           |   |           |   | 37 072    |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|2005                                         |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Segment assets                               | 21 289      |  | 5 455     |   | 26 744    |  | 3 622     |  | 3 603     |   | 7 225     |   | 33 969    |  
|Joint ventures/associates                    | 23          |  | 31        |   | 54        |  | 9         |  | 21        |   | 30        |   | 84        |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Total assets by product area                 | 21 312      |  | 5 486     |   | 26 798    |  | 3 631     |  | 3 624     |   | 7 255     |   | 34 053    |  
|Corporate assets                             |             |  |           |   |           |  |           |  |           |   |           |   | 5 447     |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Total assets                                 |             |  |           |   |           |  |           |  |           |   |           |   | 39 500    |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|Capital expenditure                          |             |  |           |   |           |  |           |  |           |   |           |   |           |  
|2006                                         | 387         |  | 327       |   | 714       |  | 195       |  | 292       |   | 487       |   | 1 201     |  
|2005                                         | 346         |  | 226       |   | 572       |  | 245       |  | 233       |   | 478       |   | 1 050     |  
|                                             |             |  |           |   |           |  |           |  |           |   |           |   |           |  



|82 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

---



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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



3 Gross
  profit and operating costs

|                               | € million |   | € million |   | € million |  
|------------------------------ | --------- | - | --------- | - | --------- | -
|                               | 2006      |   | 2005      |   | 2004      |  
|                               |           |   |           |   |           |  
|Turnover                       | 39 642    |   | 38 401    |   | 37 168    |  
|Cost of sales                  | (20 093   | ) | (19 539   | ) | (18 942   | )
|                               |           |   |           |   |           |  
|Gross profit                   | 19 549    |   | 18 862    |   | 18 226    |  
|Distribution and selling costs | (9 486    | ) | (9 078    | ) | (8 025    | )
|Administrative expenses(a)     | (4 655    | ) | (4 710    | ) | (6 220    | )
|                               |           |   |           |   |           |  
|Operating profit               | 5 408     |   | 5 074     |   | 3 981     |  
|                               |           |   |           |   |           |  

|(a) | Includes amortisation of finite-lived intangible assets and impairment of goodwill and intangible assets.
|--- | ---------------------------------------------------------------------------------------------------------

The following items are disclosed on the face of the income statement as separate disclosure provides additional information to users to help them better understand underlying business performance.

|                                               | € million |   | € million |   | € million |  
|---------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                               | 2006      |   | 2005      |   | 2004      |  
|                                               |           |   |           |   |           |  
|Restructuring                                  | (704      | ) | (328      | ) | (913      | )
|Business disposals, impairments and other      |           |   |           |   |           |  
|Gain/(loss) on disposals of group companies    | 179       |   | 132       |   | 264       |  
|Impairments                                    | (14       | ) | (397      | ) | (1 003    | )
|(Provision for)/release of Brazilian sales tax | 31        |   | 16        |   | (169      | )
|Gains on US healthcare and UK pensions         | 266       |   |          |   |          |  
|                                               |           |   |           |   |           |  

Restructuring costs are incurred as the business continues to reorganise operations and support functions. They primarily relate to redundancy and retirement costs. Business disposals generate both costs and revenues
which are not reflective of underlying performance. Impairment charges are primarily recognised for goodwill other than where included in restructuring or as part of business disposals. In 2005 and 2004 significant impairment charges were recognised
in respect ofSlim•Fast,respectively €363 million and €791
million.

The gains on US healthcare arise from the introduction of an annual cap on the
benefits which each participant can claim. The gain in the UK results from reducing
deferred pensions if they are taken early.

Other items within operating costs include:

|                                                              | € million |   | € million |   | € million |  
|------------------------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                                              | 2006      |   | 2005      |   | 2004      |  
|                                                              |           |   |           |   |           |  
|Staff costs                                                   | (5 355    | ) | (5 745    | ) | (5 708    | )
|Raw and packaging materials and goods purchased for resale    | (15 655   | ) | (15 106   | ) | (14 278   | )
|Amortisation of finite-lived intangible assets and software   | (157      | ) | (99       | ) | (64       | )
|Depreciation of property, plant and equipment                 | (787      | ) | (770      | ) | (949      | )
|Advertising and promotions                                    | (5 203    | ) | (4 918    | ) | (4 365    | )
|Exchange gains/(losses)                                       | (25       | ) | 19        |   | (97       | )
|Lease rentals                                                 | (451      | ) | (421      | ) | (389      | )
|Minimum operating lease payments                              | (455      | ) | (423      | ) | (393      | )
|Contingent operating lease payments                           | (3        | ) | (3        | ) | (5        | )
|Less: Sub-lease income relating to operating lease agreements | 7         |   | 5         |   | 9         |  
|                                                              |           |   |           |   |           |  

Total expenditure on research and development in 2006, including costs incurred under some of the headings reported above, was €906 million (2005: €932 million; 2004: €972 million).



|UnileverAnnual Report on Form 20-F 2006 | 83
|--------------------------------------- | --

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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated accounts Unilever Group
|-------------------------------------------------
|                                                 



4 Staff
  costs

|                                               | € million |   | € million |   | € million |  
|---------------------------------------------- | --------- | - | --------- | - | --------- | -
|Staff costs                                    | 2006      |   | 2005      |   | 2004      |  
|                                               |           |   |           |   |           |  
|Remuneration of employees                      | (4 377    | ) | (4 456    | ) | (4 378    | )
|Emoluments of Executive Directors              | (8        | ) | (11       | ) | (12       | )
|Pensions and other post-employment benefits(a) | (132      | ) | (384      | ) | (445      | )
|Social security costs                          | (718      | ) | (702      | ) | (660      | )
|Share-based compensation costs                 | (120      | ) | (192      | ) | (213      | )
|                                               |           |   |           |   |           |  
|                                               | (5 355    | ) | (5 745    | ) | (5 708    | )
|                                               |           |   |           |   |           |  

|(a) | In 2006 includes gains of €266 million arising from changes in US post-retirement healthcare plans and UK pension plans.
|--- | ------------------------------------------------------------------------------------------------------------------------
|   

|                                            | ‘000 |  | ‘000 |  | ‘000 | 
|------------------------------------------- | ---- |  | ---- |  | ---- | 
|Average number of employees during the year | 2006 |  | 2005 |  | 2004 | 
|                                            |      |  |      |  |      | 
|Europe                                      | 47   |  | 51   |  | 53   | 
|The Americas                                | 46   |  | 46   |  | 48   | 
|Asia Africa                                 | 96   |  | 115  |  | 126  | 
|                                            |      |  |      |  |      | 
|                                            | 189  |  | 212  |  | 227  | 
|                                            |      |  |      |  |      | 

5 Net
  finance costs

|                                       | € million |   | € million |   | € million |  
|-------------------------------------- | --------- | - | --------- | - | --------- | -
|Finance costs                          | 2006      |   | 2005      |   | 2004      |  
|                                       |           |   |           |   |           |  
|Finance costs                          | (590      | ) | (689      | ) | (714      | )
|                                       |           |   |           |   |           |  
|Bank loans and overdrafts              | (93       | ) | (90       | ) | (106      | )
|Bonds and other loans                  | (505      | ) | (580      | ) | (612      | )
|Dividends paid on preference shares(a) | (6        | ) | (11       | ) | n/a       |  
|Exchange gains/(losses)                | 14        |   | (8        | ) | 4         |  
|                                       |           |   |           |   |           |  
|Preference shares provision(b)         | (300      | ) |          |   |          |  
|Finance income                         | 128       |   | 129       |   | 145       |  
|Pensions and similar obligations(c)    | 41        |   | (53       | ) | (54       | )
|                                       |           |   |           |   |           |  
|                                       | (721      | ) | (613      | ) | (623      | )
|                                       |           |   |           |   |           |  

|(a) | From 1 January 2005, Unilever has adopted IAS 32 Financial Instruments: Disclosure and Presentation which requires preference shares that provide for a fixed preference dividend to be classified as
borrowings, and preference dividends to be recognised in the income statement as a finance cost. In accordance with the transition rules for IAS 32, 2004 comparatives have not been restated.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | For further information please refer to note 19 on page 102.                                                                                                                                                                                                                                                                                                                                          
|(c) | Net finance costs in respect of pensions and similar obligations are analysed in note 20 on page 106.                                                                                                                                                                                                                                                                                                 



|84 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

---



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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



6 Taxation

|                                                   | € million |   | € million |   | € million |  
|-------------------------------------------------- | --------- | - | --------- | - | --------- | -
|Tax charge in income statement                     | 2006      |   | 2005      |   | 2004      |  
|                                                   |           |   |           |   |           |  
|Current tax                                        |           |   |           |   |           |  
|Current year                                       | (1 171    | ) | (1 172    | ) | (1 534    | )
|Over/(under) provided in prior years(a)            | 206       |   | 107       |   | 330       |  
|                                                   |           |   |           |   |           |  
|                                                   | (965      | ) | (1 065    | ) | (1 204    | )
|Deferred tax                                       |           |   |           |   |           |  
|Origination and reversal of temporary differences  | (171      | ) | (123      | ) | 445       |  
|Changes in tax rates                               | (15       | ) | 2         |   | 34        |  
|Utilisation of unrecognised losses brought forward | 5         |   | 5         |   |          |  
|                                                   |           |   |           |   |           |  
|                                                   | (181      | ) | (116      | ) | 479       |  
|                                                   |           |   |           |   |           |  
|                                                   | (1 146    | ) | (1 181    | ) | (725      | )
|                                                   |           |   |           |   |           |  

|(a) | Provisions have been released for amounts over provided for tax in prior years in a number of countries, none of which is individually material.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------

Europe is considered to be Unilevers domestic tax base. The reconciliation between the computed weighted average rate of income tax expense, which is generally applicable to Unilevers European companies,
and the actual rate of taxation charged is as follows:

|                                                  | %    |   | %    |   | %    |  
|------------------------------------------------- | ---- | - | ---- | - | ---- | -
|Reconciliation of effective tax rate              | 2006 |   | 2005 |   | 2004 |  
|                                                  |      |   |      |   |      |  
|Computed rate of tax(b)                           | 30   |   | 31   |   | 32   |  
|Differences due to:                               |      |   |      |   |      |  
|Other rates applicable to non-European countries  | 1    |   |     |   | 1    |  
|Incentive tax credits                             | (7   | ) | (5   | ) | (5   | )
|Withholding tax on dividends                      | 1    |   | 2    |   | 2    |  
|Adjustments to previous years                     | (4   | ) | (2   | ) | (10  | )
|Expenses not deductible for tax purposes          | 2    |   | 2    |   |     |  
|Utilisation of previously unrecognised tax losses |     |   | (1   | ) |     |  
|Other                                             | 1    |   | (1   | ) | 1    |  
|                                                  |      |   |      |   |      |  
|Effective tax rate                                | 24   |   | 26   |   | 21   |  
|                                                  |      |   |      |   |      |  

|(b) | The computed tax rate used is the average of the standard rate of tax applicable in the European countries in which Unilever operates, weighted by the amount of profit before taxation generated in each of those
countries.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|UnileverAnnual Report on Form 20-F 2006 | 85
|--------------------------------------- | --

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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



6 Taxation(continued)

The following tables analyse profit before taxation and actual taxation charges between those arising in Europe and elsewhere.

|                                             | € million |   | € million |   | € million |  
|-------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                             | 2006      |   | 2005      |   | 2004      |  
|                                             |           |   |           |   |           |  
|Profit before taxation                       |           |   |           |   |           |  
|Europe                                       |           |   |           |   |           |  
|Parent and group companies                   | 2 266     |   | 2 379     |   | 2 203     |  
|Share of net profit/(loss) of joint ventures | 17        |   | 11        |   | 7         |  
|Share of net profit/(loss) of associates     | 36        |   | (20       | ) | (2        | )
|                                             |           |   |           |   |           |  
|                                             | 2 319     |   | 2 370     |   | 2 208     |  
|Outside Europe                               |           |   |           |   |           |  
|Group companies                              | 2 451     |   | 2 115     |   | 1
209     |  
|Share of net profit/(loss) of joint ventures | 61        |   | 36        |   | 32        |  
|Share of net profit/(loss) of associates     |          |   | (5        | ) | 4         |  
|                                             |           |   |           |   |           |  
|                                             | 2 512     |   | 2 146     |   | 1245      |  
|                                             |           |   |           |   |           |  
|                                             | 4 831     |   | 4 516     |   | 3 453     |  
|                                             |           |   |           |   |           |  
|Taxation                                     |           |   |           |   |           |  
|Europe                                       |           |   |           |   |           |  
|Parent and group companies:                  |           |   |           |   |           |  
|Current taxes payable                        | (359      | ) | (414      | ) | (615      | )
|Deferred taxation                            | (174      | ) | (162      | ) | 164       |  
|                                             |           |   |           |   |           |  
|Accelerated depreciation                     | 2         |   | 22        |   | 54        |  
|Pensions                                     | (196      | ) | (123      | ) | (63       | )
|Provisions                                   | 24        |   | (25       | ) | 57        |  
|Goodwill and intangible assets               | 4         |   | (48       | ) | 109       |  
|Other                                        | (8        | ) | 12        |   | 7         |  
|                                             |           |   |           |   |           |  
|                                             | (533      | ) | (576      | ) | (451      | )
|Outside Europe                               |           |   |           |   |           |  
|Group companies:                             |           |   |           |   |           |  
|Current taxes payable                        | (606      | ) | (651      | ) | (589      | )
|Deferred taxation                            | (7        | ) | 46        |   | 315       |  
|                                             |           |   |           |   |           |  
|Accelerated depreciation                     | 25        |   | (40       | ) | (20       | )
|Pensions                                     | (142      | ) | 28        |   | (26       | )
|Provisions                                   | 16        |   | (78       | ) | 205       |  
|Goodwill and intangible assets               | 98        |   | 123       |   | 168       |  
|Other                                        | (4        | ) | 13        |   | (12       | )
|                                             |           |   |           |   |           |  
|                                             | (613      | ) | (605      | ) | (274      | )
|                                             |           |   |           |   |           |  
|                                             | (1 146    | ) | (1 181    | ) | (725      | )
|                                             |           |   |           |   |           |  



|86 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



7 Combined
  earnings per share

|                             | €    |  | €    |  | €    | 
|---------------------------- | ---- |  | ---- |  | ---- | 
|Combined earnings per share  | 2006 |  | 2005 |  | 2004 | 
|                             |      |  |      |  |      | 
|From continuing operations   |      |  |      |  |      | 
|Basic earnings per share     | 1.19 |  | 1.07 |  | 0.87 | 
|Diluted earnings per share   | 1.15 |  | 1.04 |  | 0.84 | 
|                             |      |  |      |  |      | 
|From discontinued operations |      |  |      |  |      | 
|Basic earnings per share     | 0.46 |  | 0.22 |  | 0.07 | 
|Diluted earnings per share   | 0.45 |  | 0.21 |  | 0.07 | 
|                             |      |  |      |  |      | 
|From total operations        |      |  |      |  |      | 
|Basic earnings per share     | 1.65 |  | 1.29 |  | 0.94 | 
|Diluted earnings per share   | 1.60 |  | 1.25 |  | 0.91 | 
|                             |      |  |      |  |      | 

Basis of calculationThe calculations of combined earnings
per share are based on the net profit attributable to ordinary capital divided
by the average number of share units representing the combined ordinary capital
of NV and PLC in issue during the year, after deducting shares held as treasury
stock. Earnings per share are calculated on the basis of the revised nominal
share values which have been applied since 22 May 2006 and which resulted in
a one-to-one equivalence of ordinary shares of NV and PLC as regards their economic
interest in the Group. For further information please refer to note 22 on page
109.

The calculations of diluted earnings per share are based on: (i) conversion into
PLC ordinary shares of the shares in a group company which are convertible in
the year 2038, as described in Corporate governance on page 42; (ii) conversion
of the €0.05 NV preference shares; (iii) the effect of share-based compensation
plans, details of which are set out in note 29 on pages 117 to 121; and (iv)
the forward equity
contract described in note 29 on page 121.

On 15 February 2005, Unilever converted its €0.05 NV preference shares
into ordinary €0.51 NV shares. The conversion was made using shares already
held by Unilever for the purposes of satisfying the
Groups share-based compensation plans. Unilever bought further ordinary
shares in the market during 2005 to the extent required to restore the hedging
position. Until the date of conversion, the €0.05 preference shares were
potentially dilutive for the purposes of the calculation of fully diluted earnings
per share, as shown below. At midnight on 13 July 2005 the €0.05 NV preference
shares were cancelled.

|                                                                                       |         |         | Millions of share units |        
|-------------------------------------------------------------------------------------- | ------- | ------- | ----------------------- | -------
|Calculation of average number of share units                                           | 2006    |         | 2005                    |        
|                                                                                       |         |         |                         |        
|Average number of shares:                                                              | NV      | 1 714.7 |                         | 1 714.7
|                                                                                       | PLC     | 1 310.2 |                         | 1 310.2
|Less shares held by employee share trusts and companies                                | (141.6  | )       | (111.9                  | )      
|                                                                                       |         |         |                         |        
|Combined average number of share units for all bases except diluted earnings per share | 2 883.3 |         | 2 913.0                 |        
|Add shares issuable in 2038                                                            | 70.9    |         | 70.9                    |        
|Add shares for conversion                                                              |        |         | 7.1                     |        
|Add dilutive effect of share-based compensation plans and forward equity contract      | 18.3    |         | 16.0                    |        
|                                                                                       |         |         |                         |        
|Adjusted combined average number of share units for diluted earnings per share basis   | 2 972.5 |         | 3 007.0                 |        
|                                                                                       |         |         |                         |        

|                                                                                                     |           |  |           |  |           |  
|---------------------------------------------------------------------------------------------------- | --------- |  | --------- |  | --------- | -
|                                                                                                     | € million |  | € million |  | € million |  
|Calculation of earnings                                                                              | 2006      |  | 2005      |  | 2004      |  
|                                                                                                     |           |  |           |  |           |  
|Net profit attributable to shareholders equity                                                      | 4 745     |  | 3 766     |  | 2 755     |  
|Less preference dividends                                                                            | n/a       |  | n/a       |  | (28       | )
|                                                                                                     |           |  |           |  |           |  
|Net profit attributed to ordinary capital for basic earnings per share calculations                  | 4 745     |  | 3 766     |  | 2 727     |  
|                                                                                                     |           |  |           |  |           |  
|Adjusted net profit attributed to ordinary capital for the diluted earnings per share calculation(a) | 4 745     |  | 3 769     |  | 2 748     |  
|                                                                                                     |           |  |           |  |           |  

|(a) | In accordance with IAS 33,
        the net profit for diluted earnings per share has been adjusted for the
        preference dividend on shares for conversion, which in 2006 amounted
        to €nil (2005: €3 million; 2004: €21 million).
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|UnileverAnnual Report on Form 20-F 2006 | 87
|--------------------------------------- | --

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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



8 Dividends
  on ordinary capital

|                                                   | € million |   | € million |   | € million |  
|-------------------------------------------------- | --------- | - | --------- | - | --------- | -
|Dividends paid on ordinary capital during the year | 2006      |   | 2005      |   | 2004      |  
|                                                   |           |   |           |   |           |  
|Final dividend 2003 paid in June 2004              |          |   |          |   | (1 116    | )
|Interim dividend 2004 paid in November 2004        |          |   |          |   | (603      | )
|Final dividend 2004 paid in June 2005              |          |   | (1 229    | ) |          |  
|Interim dividend 2005 paid in December 2005        |          |   | (638      | ) |          |  
|Final dividend 2005 paid in June 2006              | (1 269    | ) |          |   |          |  
|Interim dividend 2006 paid in December 2006        | (664      | ) |          |   |          |  
|One-off dividend paid in December 2006             | (751      | ) |          |   |          |  
|                                                   |           |   |           |   |           |  
|                                                   | (2 684    | ) | (1 867    | ) | (1 719    | )
|                                                   |           |   |           |   |           |  

|                    |                             |  |                               | 
|------------------- | --------------------------- |  | ----------------------------- | 
|                    | Per €0.16 NV ordinary share |  | Per 3 1/9p PLC ordinary share | 
|                    | €                           |  | €                             | 
|Dividends per share | 2006                        |  | 2005                          | 
|                    |                             |  |                               | 
|Interim             | 0.23                        |  | 0.22                          | 
|Final               |                            |  | 0.44                          | 
|Proposed final(a)   | 0.47                        |  |                              | 
|                    |                             |  |                               | 
|                    | 0.70                        |  | 0.66                          | 
|One-off             | 0.26                        |  |                              | 
|                    |                             |  |                               | 
|                    | 0.96                        |  | 0.66                          | 
|                    |                             |  |                               | 

|(a) | The proposed final dividend on ordinary capital for the year 2006 has to be approved by shareholders at the Annual General Meetings. In accordance with IFRS, no provision for the amount of this dividend, estimated at
€1 358 million, has been recognised in the financial statements for the year ended 31 December 2006.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Full details of dividends per share for the years 2002 to 2006 are given on page 155.

9 Goodwill
  and intangible assets

Indefinite-lived intangible assets principally comprise those trademarks for which there is no foreseeable limit to the period over which they are expected to generate net cash inflows. These are considered to have an
indefinite life, given the strength and durability of our brands and the level of marketing support. Brands that are classified as indefinite have been in the market for many years, and the nature of the industry we operate in is such that brand
obsolescence is not common, if appropriately supported by advertising and marketing spend. Finite-lived intangible assets, which primarily comprise patented and non-patented technology, know-how, and software, are capitalised and amortised in
operating profit on a straight-line basis over the period of their expected useful lives, none of which exceeds ten years. The level of amortisation for finite-lived intangible assets is not expected to change materially over the next five
years.

|                                         | € million |  | € million | 
|---------------------------------------- | --------- |  | --------- | 
|At cost less amortisation and impairment | 2006      |  | 2005      | 
|                                         |           |  |           | 
|Goodwill                                 | 12 425    |  | 12 963    | 
|Indefinite-lived intangible assets       | 4 174     |  | 4 450     | 
|Finite-lived intangible assets           | 343       |  | 416       | 
|Software                                 | 264       |  | 226       | 
|                                         |           |  |           | 
|                                         | 17 206    |  | 18 055    | 
|                                         |           |  |           | 

|                                  |           |   |             |   |            |   |           |   |           |  
|--------------------------------- | --------- | - | ----------- | - | ---------- | - | --------- | - | --------- | -
|                                  | € million |   | € million   |   | € million  |   | € million |   | € million |  
|                                  |           |   | Indefinite- |   | Finite-    |   |           |   |           |  
|                                  |           |   | lived       |   | lived      |   |           |   |           |  
|                                  |           |   | intangible  |   | intangible |   |           |   |           |  
|Movements during 2006             | Goodwill  |   | assets      |   | assets     |   | Software  |   | Total     |  
|                                  |           |   |             |   |            |   |           |   |           |  
|Cost                              |           |   |             |   |            |   |           |   |           |  
|1 January 2006                    | 14 080    |   | 4 713       |   | 631        |   | 291       |   | 19 715    |  
|Acquisitions of group companies   | 60        |   | 8           |   | 1          |   |          |   | 6         |  
|Disposals of group companies      | (1        | ) |            |   |           |   |          |   | (1        | )
|Change in useful life assumptions |          |   | (32         | ) | 32         |   |          |   |          |  
|Additions                         |          |   |            |   | 3          |   | 110       |   | 113       |  
|Currency retranslation            | (685      | ) | (280        | ) | (25        | ) | (9        | ) | (999      | )
|                                  |           |   |             |   |            |   |           |   |           |  
|31 December 2006                  | 13 454    |   | 4 409       |   | 642        |   | 392       |   | 18 897    |  
|                                  |           |   |             |   |            |   |           |   |           |  
|Amortisation and impairment       |           |   |             |   |            |   |           |   |           |  
|1 January 2006                    | (1 117    | ) | (263        | ) | (215       | ) | (65       | ) | (1 660    | )
|Amortisation for the year         |          |   |            |   | (94        | ) | (63       | ) | (157      | )
|Impairment                        | (12       | ) |            |   |           |   | (2        | ) | (14       | )
|Currency retranslation            | 100       |   | 28          |   | 10         |   | 2         |   | 140       |  
|                                  |           |   |             |   |            |   |           |   |           |  
|31 December 2006                  | (1 029    | ) | (235        | ) | (299       | ) | (128      | ) | (1 691    | )
|                                  |           |   |             |   |            |   |           |   |           |  
|Net book value 31 December 2006   | 12 425    |   | 4 174       |   | 343        |   | 264       |   | 17 206    |  
|                                  |           |   |             |   |            |   |           |   |           |  



|88 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

---



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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
    accounts Unilever Group
|-----------------------------------------------------
|                                                     



9 Goodwill and intangible assets(continued)

|                                                                | € million |   | € million   |   | € million  |   | € million |   | € million |  
|--------------------------------------------------------------- | --------- | - | ----------- | - | ---------- | - | --------- | - | --------- | -
|                                                                |           |   | Indefinite- |   | Finite-    |   |           |   |           |  
|                                                                |           |   | lived       |   | lived      |   |           |   |           |  
|                                                                |           |   | intangible  |   | intangible |   |           |   |           |  
|Movements during 2005                                           | Goodwill  |   | assets      |   | assets     |   | Software  |   | Total     |  
|                                                                |           |   |             |   |            |   |           |   |           |  
|Cost                                                            |           |   |             |   |            |   |           |   |           |  
|1 January 2005                                                  | 12 887    |   | 4 251       |   | 597        |   | 193       |   | 17 928    |  
|Acquisitions of group companies                                 | 13        |   |            |   |           |   |          |   | 13        |  
|Disposals of group companies                                    | (49       | ) | (6          | ) | (16        | ) | (4        | ) | (75       | )
|Additions                                                       |          |   | 2           |   | 4          |   | 86        |   | 92        |  
|Reversal of assets held for sale not included in final disposal | 15        |   | 55          |   |           |   |          |   | 70        |  
|Currency retranslation                                          | 1 214     |   | 411         |   | 46         |   | 16        |   | 1 687     |  
|                                                                |           |   |             |   |            |   |           |   |           |  
|31 December 2005                                                | 14 080    |   | 4 713       |   | 631        |   | 291       |   | 19 715    |  
|                                                                |           |   |             |   |            |   |           |   |           |  
|Amortisation and impairment                                     |           |   |             |   |            |   |           |   |           |  
|1 January 2005                                                  | (937      | ) |            |   | (150       | ) | (27       | ) | (1 114    | )
|Disposals of group companies                                    | 42        |   | 1           |   | 3          |   | 2         |   | 48        |  
|Amortisation for the year(a)                                    |          |   |            |   | (62        | ) | (38       | ) | (100      | )
|Impairment losses                                               | (131      | ) | (251        | ) |           |   |          |   | (382      | )
|Currency retranslation                                          | (91       | ) | (13         | ) | (6         | ) | (2        | ) | (112      | )
|                                                                |           |   |             |   |            |   |           |   |           |  
|31 December 2005                                                | (1 117    | ) | (263        | ) | (215       | ) | (65       | ) | (1 660    | )
|                                                                |           |   |             |   |            |   |           |   |           |  
|Net book value 31 December 2005                                 | 12 963    |   | 4 450       |   | 416        |   | 226       |   | 18 055    |  
|                                                                |           |   |             |   |            |   |           |   |           |  

|(a) | Includes €(1) million relating to discontinued operations.
|--- | ----------------------------------------------------------

There are no significant carrying amounts of goodwill and intangible assets that are allocated across multiple cash generating units (CGUs).

Impairments charges in the yearThe impairments charged in 2006 principally
relate to planned business disposals that will be completed during 2007.

In 2006, Slim•Fastwas fully integrated into The Americas business
as part of the North American beverage operations. As a result of the integration, Slim•Fastis
no longer evaluated on a stand-alone basis but as part of the North American
beverage CGU. The 2006 impairment review on this basis and on a stand-alone basis
did not result in any
impairments (2005: €363 million; 2004: €791 million).

Significant CGUsThe goodwill and indefinite-lived
intangible assets (predominantly Knorrand Hellmanns) held
in the global savoury and dressings CGU, comprising €11.6 billion (2005: €11.9
billion) and €3.4 billion (2005: €3.6 billion) respectively, are
considered significant in comparison to the total carrying amounts of goodwill
and indefinite-lived intangible assets at 31 December 2006. No other CGUs are
considered significant in this respect.

During 2006, we conducted an impairment review of the carrying value of these
assets. Value in use of the global savoury and dressings CGU has been calculated
as the present value of projected future cash flows. A pre-tax discount rate
of 10% was used.

The following key assumptions were used in the discounted cash flow projections
for the savoury and dressings CGU:

|• | a longer-term sustainable growth rate of 3%, adjusted for market fade, used to determine an appropriate terminal value multiple;
|- | --------------------------------------------------------------------------------------------------------------------------------
|• | average near-term nominal growth for the major product groups within the CGU of 3%; and                                         
|• | average operating margins for the major product groups within the CGU ranging from 16% to 19%.                                  

The growth rates and margins used to estimate future performance are based on past performance and our experience of growth rates and margins achievable in our key markets as a guide. We believe that the assumptions
used in estimating the future performance of the savoury and dressings CGU are consistent with past performance.

The projections covered a period of ten years as we believe this to be a suitable
timescale over which to review and consider annual performance before applying
a fixed terminal value multiple to the final year cash flows of the detailed
projection. Stopping the detailed projections after five years and applying a
terminal value multiple thereafter would not result in a value in use that would
cause impairment.

The growth rates used to estimate future performance beyond the periods covered
by our annual planning and strategic planning processes do not exceed the long-term
average rates of growth for similar
products.

We have performed sensitivity analysis around the base case assumptions and have
concluded that no reasonably possible changes in key assumptions would cause
the recoverable amount of the global savoury and dressings CGU to be less than
the carrying amount.



|UnileverAnnual Report on Form 20-F 2006 | 89
|--------------------------------------- | --

---



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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
          Group
|-------------------------------------------------------------------
|                                                                   



10 Property,
  plant and equipment

|                                                   | € million |  | € million | 
|-------------------------------------------------- | --------- |  | --------- | 
|At cost less depreciation and impairment           | 2006      |  | 2005      | 
|                                                   |           |  |           | 
|Land and buildings                                 | 1 944     |  | 1 994     | 
|Plant and equipment                                | 4 332     |  | 4 498     | 
|                                                   |           |  |           | 
|                                                   | 6 276     |  | 6 492     | 
|                                                   |           |  |           | 
|Includes freehold land                             | 205       |  | 224       | 
|                                                   |           |  |           | 
|Commitments for capital expenditure at 31 December | 231       |  | 263       | 
|                                                   |           |  |           | 

|                                                                  | € million |   | € million |   | € million |  
|----------------------------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                                                  | Land and  |   | Plant and |   |           |  
|Movements during 2006                                             | buildings |   | equipment |   | Total     |  
|                                                                  |           |   |           |   |           |  
|Gross                                                             |           |   |           |   |           |  
|1 January 2006                                                    | 3 014     |   | 10 845    |   | 13 859    |  
|Acquisitions of group companies                                   | 2         |   | 6         |   | 8         |  
|Disposals of group companies                                      | (130      | ) | (291      | ) | (421      | )
|Additions                                                         | 150       |   | 921       |   | 1 071     |  
|Disposals                                                         | (80       | ) | (586      | ) | (666      | )
|Currency retranslation                                            | (136      | ) | (446      | ) | (582      | )
|Reclassification as held for sale(a)                              | 95        |   | (69       | ) | 26        |  
|Other adjustments                                                 | 77        |   | (9        | ) | 68        |  
|                                                                  |           |   |           |   |           |  
|31 December 2006                                                  | 2 992     |   | 10 371    |   | 13 363    |  
|                                                                  |           |   |           |   |           |  
|Depreciation                                                      |           |   |           |   |           |  
|1 January 2006                                                    | (1 020    | ) | (6 347    | ) | (7 367    | )
|Disposals of group companies                                      | 50        |   | 185       |   | 235       |  
|Depreciation charge for the year(b)                               | (74       | ) | (731      | ) | (805      | )
|Disposals                                                         | 45        |   | 512       |   | 557       |  
|Currency retranslation                                            | 38        |   | 251       |   | 289       |  
|Reclassification as held for sale(a)                              | (18       | ) | 69        |   | 51        |  
|Other adjustments                                                 | (69       | ) | 22        |   | (47       | )
|                                                                  |           |   |           |   |           |  
|31 December 2006                                                  | (1 048    | ) | (6 039    | ) | (7 087    | )
|                                                                  |           |   |           |   |           |  
|Net book value 31 December 2006                                   | 1 944     |   | 4 332     |   | 6 276     |  
|                                                                  |           |   |           |   |           |  
|Includes payments on account and assets in course of construction | 71        |   | 478       |   | 549       |  
|                                                                  |           |   |           |   |           |  

|(a) | After reinstating certain assets with gross value of €112 million and accumulated depreciation of €28 million which were previously classified as held for sale.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Includes €(18) million relating to discontinued operations.                                                                                                     



|90 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
          Group
|-------------------------------------------------------------------
|                                                                   



10 Property, plant and equipment(continued)

|                                                                  | € million |   | € million |   | € million |  
|----------------------------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                                                  | Land and  |   | Plant and |   |           |  
|Movements during 2005                                             | buildings |   | equipment |   | Total     |  
|                                                                  |           |   |           |   |           |  
|Gross                                                             |           |   |           |   |           |  
|1 January 2005                                                    | 2 859     |   | 10 013    |   | 12 872    |  
|Disposals of group companies                                      | (26       | ) | (117      | ) | (143      | )
|Additions                                                         | 163       |   | 795       |   | 958       |  
|Disposals                                                         | (95       | ) | (619      | ) | (714      | )
|Reversal of asset held for sale not included in final disposal    | 53        |   | 57        |   | 110       |  
|Currency retranslation                                            | 269       |   | 798       |   | 1 067     |  
|Reclassification as held for sale                                 | (175      | ) | (116      | ) | (291      | )
|Other adjustments                                                 | (34       | ) | 34        |   |          |  
|                                                                  |           |   |           |   |           |  
|31 December 2005                                                  | 3 014     |   | 10 845    |   | 13 859    |  
|                                                                  |           |   |           |   |           |  
|Depreciation                                                      |           |   |           |   |           |  
|1 January 2005                                                    | (966      | ) | (5 855    | ) | (6 821    | )
|Disposals of group companies                                      | 12        |   | 91        |   | 103       |  
|Depreciation charge for the year(c)                               | (77       | ) | (715      | ) | (792      | )
|Disposals                                                         | 53        |   | 549       |   | 602       |  
|Reversal of asset held for sale not included in final disposal    | (5        | ) | (50       | ) | (55       | )
|Currency retranslation                                            | (83       | ) | (466      | ) | (549      | )
|Reclassification as held for sale                                 | 51        |   | 94        |   | 145       |  
|Other adjustments                                                 | (5        | ) | 5         |   |          |  
|                                                                  |           |   |           |   |           |  
|31 December 2005                                                  | (1 020    | ) | (6 347    | ) | (7 367    | )
|                                                                  |           |   |           |   |           |  
|Net book value 31 December 2005                                   | 1 994     |   | 4 498     |   | 6 492     |  
|                                                                  |           |   |           |   |           |  
|Includes payments on account and assets in course of construction | 64        |   | 487       |   | 551       |  
|                                                                  |           |   |           |   |           |  

|(c) | Includes €(22) million relating to discontinued operations.
|--- | -----------------------------------------------------------

Included in the above is property, plant and equipment under a number of finance lease agreements, for which the book values are as follows:

|                 | € million |   | € million |   | € million |  
|---------------- | --------- | - | --------- | - | --------- | -
|                 |           |   | Plant and |   |           |  
|Net book value   | Buildings |   | equipment |   | Total     |  
|                 |           |   |           |   |           |  
|Gross book value | 62        |   | 369       |   | 431       |  
|Depreciation     | (20       | ) | (201      | ) | (221      | )
|                 |           |   |           |   |           |  
|31 December 2006 | 42        |   | 168       |   | 210       |  
|                 |           |   |           |   |           |  
|Gross book value | 68        |   | 354       |   | 422       |  
|Depreciation     | (18       | ) | (202      | ) | (220      | )
|                 |           |   |           |   |           |  
|31 December 2005 | 50        |   | 152       |   | 202       |  
|                 |           |   |           |   |           |  



|UnileverAnnual Report on Form 20-F 2006 | 91
|--------------------------------------- | --

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
          Group
|-------------------------------------------------------------------
|                                                                   



11 Other
  non-current assets

|                                         | € million |  | € million | 
|---------------------------------------- | --------- |  | --------- | 
|                                         | 2006      |  | 2005      | 
|                                         |           |  |           | 
|Interest in net assets of joint ventures | 57        |  | 67        | 
|Interest in net assets of associates     | 46        |  | 17        | 
|Other non-current assets                 | 771       |  | 757       | 
|                                         |           |  |           | 
|                                         | 874       |  | 841       | 
|                                         |           |  |           | 

|                                                                        | € million |   | € million |  
|----------------------------------------------------------------------- | --------- | - | --------- | -
|Movements during 2006 and 2005                                          | 2006      |   | 2005      |  
|                                                                        |           |   |           |  
|Joint ventures(a)                                                       |           |   |           |  
|1 January                                                               | 67        |   | 32        |  
|Additions(b)                                                            |          |   | 26        |  
|Dividends received/reductions                                           | (85       | ) | (43       | )
|Share in net profit                                                     | 78        |   | 47        |  
|Currency retranslation                                                  | (3        | ) | 5         |  
|                                                                        |           |   |           |  
|31 December                                                             | 57        |   | 67        |  
|                                                                        |           |   |           |  
|Associates(c)                                                           |           |   |           |  
|1 January                                                               | (20       | ) | 6         |  
|Acquisitions/(disposals)                                                | 5         |   | 7         |  
|Dividends received/reductions                                           | (13       | ) | (11       | )
|Share in net profit                                                     | 36        |   | (25       | )
|Currency retranslation                                                  | 4         |   | 3         |  
|                                                                        |           |   |           |  
|                                                                        | 12        |   | (20       | )
|Of which: Net liabilities of JohnsonDiversey reclassified to provisions | 34        |   | 37        |  
|                                                                        |           |   |           |  
|31 December                                                             | 46        |   | 17        |  
|                                                                        |           |   |           |  
|Other non-current assets(d)                                             |           |   |           |  
|1 January                                                               | 757       |   | 731       |  
|Additions/(reductions)/(impairments)/fair value movements               | 46        |   | (22       | )
|Currency retranslation                                                  | (32       | ) | 48        |  
|                                                                        |           |   |           |  
|31 December                                                             | 771       |   | 757       |  
|                                                                        |           |   |           |  

|(a) | Our principal joint ventures are the FIMA business in Portugal and the Pepsi/Lipton Partnership in the US.                                                                                                                                                                                                                                                                                                                                  
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Effect of the 2005 transaction in connection with our Foods business in Portugal (see note 26 on page 113).                                                                                                                                                                                                                                                                                                                                 
|(c) | Associates primarily comprise our investments in JohnsonDiversey Holdings Inc., Palmci and Langholm Capital Partners. Other Unilever Ventures assets (excluding Langholm) are included under Other non-current
assets above.                                                                                                                                                                                                              
|(d) | Other non-current assets are mainly available-for-sale assets, and predominantly consist of investments in a number of companies and financial institutions in India, Europe and the US, including €181 million
(2005: €197 million) of assets in a trust to fund benefit obligations in the US (see also note 20 on page 103). Also included under this heading are biological assets with a fair value of €36 million (2005: €37 million).

|                                                  |           |  |           | 
|------------------------------------------------- | --------- |  | --------- | 
|                                                  | € million |  | € million | 
|Analysis of listed and unlisted investments       | 2006      |  | 2005      | 
|                                                  |           |  |           | 
|Investments listed on a recognised stock exchange | 402       |  | 326       | 
|Unlisted investments                              | 369       |  | 431       | 
|                                                  |           |  |           | 
|                                                  | 771       |  | 757       | 
|                                                  |           |  |           | 

|                                          |           |  |           |  |           | 
|----------------------------------------- | --------- |  | --------- |  | --------- | 
|                                          |           |  |           |  |           | 
|                                          | € million |  | € million |  | € million | 
|Other income from non-current investments | 2006      |  | 2005      |  | 2004      | 
|                                          |           |  |           |  |           | 
|Income from other non-current investments | 21        |  | 20        |  | 36        | 
|Profit/(loss) on disposal                 | 9         |  | 13        |  | 18        | 
|                                          |           |  |           |  |           | 
|                                          | 30        |  | 33        |  | 54        | 
|                                          |           |  |           |  |           | 

The joint ventures and associates have no significant contingent liabilities to which the Group is exposed, and the Group has no significant contingent liabilities in relation to its interest in the joint ventures and
associates.

The Group has no outstanding capital commitments to joint ventures.

Outstanding balances with joint ventures and associates are shown in note 30
on page 122.



|92 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
          Group
|-------------------------------------------------------------------
|                                                                   



12 Deferred
  taxation

|                                 | € million |   | € million |     | € million |     | € million    |   | € million |  
|-------------------------------- | --------- | - | --------- | --- | --------- | --- | ------------ | - | --------- | -
|                                 | As at 1   |   |           |     |           |     | Acquisitions |   | As at 31  |  
|                                 | January   |   | Income    |     |           |     | and          |   | December  |  
|Movements during the year        | 2006      |   | statement | (a) | Equity    | (b) | disposals    |   | 2006      |  
|                                 |           |   |           |     |           |     |              |   |           |  
|Pensions and similar obligations | 1 478     |   | (344      | )   | (415      | )   | (5           | ) | 714       |  
|Provisions                       | 666       |   | 40        |     | (37       | )   | 23           |   | 692       |  
|Goodwill and intangible assets   | (834      | ) | 102       |     | 49        |     | (1           | ) | (684      | )
|Accelerated tax depreciation     | (742      | ) | 55        |     | 29        |     | 9            |   | (649      | )
|Tax losses                       | 146       |   | (36       | )   | (5        | )   | 8            |   | 113       |  
|Fair value gains                 |          |   | (2        | )   | 1         |     |             |   | (1        | )
|Fair value losses                |          |   | 7         |     | (3        | )   |             |   | 4         |  
|Share-based payments             | 74        |   | 9         |     | 11        |     | (2           | ) | 92        |  
|Other                            | (18       | ) | 13        |     | (2        | )   | (11          | ) | (18       | )
|                                 |           |   |           |     |           |     |              |   |           |  
|                                 | 770       |   | (156      | )   | (372      | )   | 21           |   | 263       |  
|                                 |           |   |           |     |           |     |              |   |           |  

|(a) | Includes €25 million credit reported under discontinued operations in the income statement.               
|--- | ----------------------------------------------------------------------------------------------------------
|(b) | Of the total movement in equity of €372 million, €39 million arises as a result of currency retranslation.

At the balance sheet date, the Group has unused tax losses of €1 621 million and tax credits amounting to €338 million available for offset against future taxable profits. Deferred tax assets h ave not been
recognised in respect of unused tax losses of €1 243 million and tax credits of €338 million, as it is not probable that there will be future taxable profits within the entities against which the losses can be utilised. The majority of
these tax losses and credits arise in tax jurisdictions where they do not expire with the exception of €494 million of state and federal tax losses in the USA which expire between now and 2026.

Other deductible temporary differences of €199 million have not been recognised
as a deferred tax asset. There is no expiry date for these differences.

At the balance sheet date, the aggregate amount of temporary differences associated
with undistributed earnings of subsidiaries for which deferred tax liabilities
have not been recognised was €755 million (2005: €765 million). No
liability has been recognised in respect of these differences because the Group
is in a position to control the timing of the reversal of the temporary differences,
and it is probable that such differences will not reverse in
the forseeable future.

Deferred income tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities
and when the deferred income taxes relate to the same fiscal authority. The following
amounts, determined after appropriate offsetting, are shown in the consolidated
balance sheet:

|                                                      | € million |   | € million |   | € million   |   | € million   |   | € million |   | € million |  
|----------------------------------------------------- | --------- | - | --------- | - | ----------- | - | ----------- | - | --------- | - | --------- | -
|                                                      | Assets    |   | Assets    |   | Liabilities |   | Liabilities |   | Total     |   | Total     |  
|Deferred tax assets and liabilities                   | 2006      |   | 2005      |   | 2006        |   | 2005        |   | 2006      |   | 2005      |  
|                                                      |           |   |           |   |             |   |             |   |           |   |           |  
|Pensions and similar obligations                      | 925       |   | 1 709     |   | (211        | ) | (231        | ) | 714       |   | 1 478     |  
|Provisions                                            | 670       |   | 704       |   | 22          |   | (38         | ) | 692       |   | 666       |  
|Goodwill and intangible assets                        | (194      | ) | (431      | ) | (490        | ) | (403        | ) | (684      | ) | (834      | )
|Accelerated tax depreciation                          | (328      | ) | (489      | ) | (321        | ) | (253        | ) | (649      | ) | (742      | )
|Tax losses                                            | 112       |   | 144       |   | 1           |   | 2           |   | 113       |   | 146       |  
|Fair value gains                                      | (1        | ) |          |   |            |   |            |   | (1        | ) |          |  
|Fair value losses                                     | 4         |   | 6         |   |            |   | (6          | ) | 4         |   |          |  
|Share-based payments                                  | 92        |   | 74        |   |            |   |            |   | 92        |   | 74        |  
|Other                                                 | (14       | ) | (14       | ) | (4          | ) | (4          | ) | (18       | ) | (18       | )
|                                                      |           |   |           |   |             |   |             |   |           |   |           |  
|                                                      | 1 266     |   | 1 703     |   | (1 003      | ) | (933        | ) | 263       |   | 770       |  
|                                                      |           |   |           |   |             |   |             |   |           |   |           |  
|Of which deferred tax to be recovered/(settled) after |           |   |           |   |             |   |             |   |           |   |           |  
|more than 12 months                                   | 460       |   | 1 269     |   | (621        | ) | (834        | ) | (161      | ) | 435       |  
|                                                      |           |   |           |   |             |   |             |   |           |   |           |  



|UnileverAnnual Report on Form 20-F 2006 | 93
|--------------------------------------- | --

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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
    Group
|------------------------------------------------------------
|                                                            



13 Inventories

|                                    | € million |  | € million | 
|----------------------------------- | --------- |  | --------- | 
|Inventories                         | 2006      |  | 2005      | 
|                                    |           |  |           | 
|Raw materials and consumables       | 1 360     |  | 1 512     | 
|Finished goods and goods for resale | 2 436     |  | 2 595     | 
|                                    |           |  |           | 
|                                    | 3 796     |  | 4 107     | 
|                                    |           |  |           | 

Inventories with a value of €96 million (2005: €123 million) are carried at net realisable value, this being lower than cost. During 2006, €160 million (2005: €159 million) was charged to the income
statement for damaged, obsolete and lost inventories. In 2006, €34 million (2005: €35 million) was utilised or released to the income statement from inventory provisions taken in earlier years.

In 2006, inventories with a carrying amount
  of €6 million were pledged as security for certain of the Groups borrowings
  (2005: €8 million).

|14
      Trade and other receivables |           |  |           | 
|------------------------------------ | --------- |  | --------- | 
|                                     | € million |  | € million | 
|Trade and other receivables          | 2006      |  | 2005      | 
|                                     |           |  |           | 
|Due within one year                  |           |  |           | 
|Trade receivables                    | 3 054     |  | 3 345     | 
|Prepayments and accrued income       | 477       |  | 833       | 
|Other receivables                    | 759       |  | 652       | 
|                                     |           |  |           | 
|                                     | 4 290     |  | 4 830     | 
|Due after more than one year         |           |  |           | 
|Other receivables                    | 252       |  | 231       | 
|                                     |           |  |           | 
|Total trade and other receivables    | 4 542     |  | 5 061     | 
|                                     |           |  |           | 

Concentrations of credit risk with respect to trade receivables are limited, due to the Groups customer base being large and diverse.

|                                                                       | € million |   | € million |  
|---------------------------------------------------------------------- | --------- | - | --------- | -
|Impairment provision for trade receivables  movements during the year | 2006      |   | 2005      |  
|                                                                       |           |   |           |  
|1 January                                                              | 258       |   | 232       |  
|Charged to current year income statement                               | 38        |   | 39        |  
|Reductions/releases                                                    | (107      | ) | (33       | )
|Currency retranslation                                                 | (9        | ) | 20        |  
|                                                                       |           |   |           |  
|31 December                                                            | 180       |   | 258       |  
|                                                                       |           |   |           |  



|94 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



15 Cash
  and cash equivalents and other financial assets

|                                                            | € million |  | € million | 
|----------------------------------------------------------- | --------- |  | --------- | 
|Cash and cash equivalents and other financial assets        | 2006      |  | 2005      | 
|                                                            |           |  |           | 
|Cash and cash equivalents                                   |           |  |           | 
|Cash at bank and in hand                                    | 469       |  | 867       | 
|Short-term deposits with maturity of less than three months | 390       |  | 412       | 
|Other cash equivalents                                      | 180       |  | 250       | 
|                                                            |           |  |           | 
|                                                            | 1 039     |  | 1 529     | 
|                                                            |           |  |           | 
|Other financial assets                                      |           |  |           | 
|Listed                                                      | 47        |  | 36        | 
|Unlisted                                                    | 190       |  | 299       | 
|                                                            |           |  |           | 
|                                                            | 237       |  | 335       | 
|                                                            |           |  |           | 
|Total cash and cash equivalents and other financial assets  | 1 276     |  | 1 864     | 
|                                                            |           |  |           | 

Other financial assets include government securities and A minus or higher rated money and capital market instruments.

|                                                              | €million |   | €million |   | €million |  
|------------------------------------------------------------- | -------- | - | -------- | - | -------- | -
|Cash and cash equivalents included in the cash flow statement | 2006     |   | 2005     |   | 2004     |  
|                                                              |          |   |          |   |          |  
|Cash and cash equivalents as per balance sheet                | 1 039    |   | 1 529    |   | 1 590    |  
|Cash and cash equivalents in businesses held for sale         |         |   | 1        |   | n/a      |  
|Bank overdrafts                                               | (329     | ) | (265     | ) | (184     | )
|                                                              |          |   |          |   |          |  
|                                                              | 710      |   | 1 265    |   | 1 406    |  
|                                                              |          |   |          |   |          |  

Interest rate profile and currency analysis of financial assetsThe table set out below takes into
  account the various interest rate swaps and forward foreign currency contracts
  entered into by the Group, details of which are set out in note 17 on pages
  99 and 100.

The interest rate profiles of the Groups
  financial assets analysed by principal currency are set out in the table below:

|                                                                             | €million      |  |               |  |           |  | €million |  |          |  | €million |    
|---------------------------------------------------------------------------- | ------------- |  | ------------- |  | --------- |  | -------- |  | -------- |  | -------- | ---
|                                                                             | Fixed         |  | Fixed         |  | Fixed     |  | Floating |  | Floating |  |          |    
|                                                                             | rate          |  | rate          |  | rate      |  | rate     |  | rate     |  | Total    |    
|                                                                             |               |  |               |  |           |  |          |  |          |  |          |    
|                                                                             | Amount        |  | Average       |  | Weighted  |  |          |  |          |  |          |    
|                                                                             | of fixing     |  | interest rate |  | average   |  |          |  | Interest |  |          |    
|                                                                             | for following |  | for following |  | fixing    |  |          |  | rate for |  |          |    
|                                                                             | year          |  | year          |  | period    |  |          |  | 2007     |  |          |    
|                                                                             |               |  |               |  |           |  |          |  |          |  |          |    
|Assets  2006                                                                |               |  |               |  |           |  |          |  |          |  |          |    
|Euro                                                                         | 1             |  | 3.1%          |  | 0.1 years |  | 210      |  | 4.1%     |  | 211      |    
|Sterling                                                                     | 1 549         |  | 5.3%          |  | 1.0 years |  | 1 193    |  | 5.6%     |  | 2 742    | (a)
|US dollar                                                                    |              |  |               |  |           |  | 8        |  | 5.4%     |  | 8        |    
|Indian rupee                                                                 |              |  |               |  |           |  | 403      |  | 8.8%     |  | 403      |    
|Other                                                                        |              |  |               |  |           |  | 635      |  | 7.0%     |  | 635      |    
|                                                                             |               |  |               |  |           |  |          |  |          |  |          |    
|                                                                             | 1 550         |  |               |  |           |  | 2 449    |  |          |  | 3 999    |    
|Sterling leg of currency derivatives mainly relating to intra-group loans(a) |               |  |               |  |           |  |          |  |          |  | (2 723   | )  
|                                                                             |               |  |               |  |           |  |          |  |          |  |          |    
|Total                                                                        |               |  |               |  |           |  |          |  |          |  | 1 276    |    
|                                                                             |               |  |               |  |           |  |          |  |          |  |          |    
|Assets  2005(b)                                                             |               |  |               |  |           |  |          |  |          |  |          |    
|Euro                                                                         | 14            |  | 3.1%          |  | 1.1 years |  | 636      |  |          |  | 650      |    
|Sterling                                                                     |              |  |               |  |           |  | 57       |  |          |  | 57       |    
|US dollar                                                                    |              |  |               |  |           |  | 94       |  |          |  | 94       |    
|Indian rupee                                                                 |              |  |               |  |           |  | 346      |  |          |  | 346      |    
|Other                                                                        |              |  |               |  |           |  | 967      |  |          |  | 967      |    
|                                                                             |               |  |               |  |           |  |          |  |          |  |          |    
|Total                                                                        | 14            |  |               |  |           |  | 2 100    |  |          |  | 2 114    | (c)
|                                                                             |               |  |               |  |           |  |          |  |          |  |          |    

|(a) | Includes the sterling leg of the currency derivatives mainly relating to intra-group loans, amounting to €2 723 million for 2006. These derivatives create a sterling interest rate exposure. However, to reconcile
the assets with the balance sheet, the total value is eliminated again. The other leg of the currency derivatives is shown in note 16 as a liability.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Figures for 2005 have been restated to reflect the amount of fixing and related average interest rate for the following year.                                                                                                                                                                                                                                            
|(c) | Includes fair value of borrowing-related derivatives amounting to €250 million. For further information please refer to note 17 on pages 99 and 100.                                                                                                                                                                                                                     



|UnileverAnnual Report on Form 20-F 2006 | 95
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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



16 Borrowings

|                                       | €million |  | € million | 
|-------------------------------------- | -------- |  | --------- | 
|Borrowings                             | 2006     |  | 2005      | 
|                                       |          |  |           | 
|Preference shares                      | 124      |  | 124       | 
|Bank loans and overdrafts              | 1 307    |  | 1 456     | 
|Bonds and other loans                  |          |  |           | 
|At amortised cost                      | 6 561    |  | 8 609     | 
|Subject to fair value hedge accounting | 609      |  | 2 210     | 
|                                       |          |  |           | 
|                                       | 8 601    |  | 12 399    | 
|                                       |          |  |           | 

|                                                       |          |  |           | 
|------------------------------------------------------ | -------- |  | --------- | 
|                                                       | €million |  | € million | 
|Borrowings  additional details                        | 2006     |  | 2005      | 
|                                                       |          |  |           | 
|The repayments fall due as follows                     |          |  |           | 
|Within one year:                                       |          |  |           | 
|Bank loans and overdrafts                              | 743      |  | 786       | 
|Bonds and other loans                                  | 3 619    |  | 5 156     | 
|                                                       |          |  |           | 
|Total due within one year                              | 4 362    |  | 5 942     | 
|                                                       |          |  |           | 
|After one year but within two years                    | 385      |  | 2 049     | 
|After two years but within three years                 | 311      |  | 180       | 
|After three years but within four years                | 1 344    |  | 391       | 
|After four years but within five years                 | 2        |  | 1 493     | 
|After five years                                       | 2 197    |  | 2 344     | 
|                                                       |          |  |           | 
|Total due after more than one year                     | 4 239    |  | 6 457     | 
|                                                       |          |  |           | 
|Secured borrowings                                     |         |  | 8         | 
|                                                       |          |  |           | 
|Of which secured against property, plant and equipment |         |  |          | 
|                                                       |          |  |           | 

|                                            |            |  |            |  |           |  |           |  |           |  |           |  |           | 
|------------------------------------------- | ---------- |  | ---------- |  | --------- |  | --------- |  | --------- |  | --------- |  | --------- | 
|                                            |            |  | €million   |  |           |  |           |  | €million  |  | €million  |  | € million | 
|                                            |            |  |            |  |           |  |           |  | Issued,   |  |           |  |           | 
|                                            | Number     |  |            |  | Nominal   |  | Number    |  | called up |  |           |  |           | 
|                                            | of shares  |  |            |  | value     |  | of shares |  | and fully |  | Statutory |  |           | 
|                                            | authorised |  | Authorised |  | per share |  | issued    |  | paid      |  | Reserve   |  | Total     | 
|                                            |            |  |            |  |           |  |           |  |           |  |           |  |           | 
|Preference shares NV as at 31 December 2006 |            |  |            |  |           |  |           |  |           |  |           |  |           | 
|7% Cumulative Preference                    | 75 000     |  | 32         |  | €428.57   |  | 29 000    |  | 12        |  | 1         |  | 13        | 
|6% Cumulative Preference                    | 200 000    |  | 86         |  | €428.57   |  | 161 060   |  | 69        |  | 4         |  | 73        | 
|4% Cumulative Preference                    | 750 000    |  | 32         |  | €42.86    |  | 750 000   |  | 32        |  | 2         |  | 34        | 
|Share premium                               |            |  |            |  |           |  |           |  | 4         |  |           |  | 4         | 
|                                            |            |  |            |  |           |  |           |  |           |  |           |  |           | 
|                                            |            |  | 150        |  |           |  |           |  | 117       |  | 7         |  | 124       | 
|Preference shares NV as at 31 December 2005 |            |  |            |  |           |  |           |  |           |  |           |  |           | 
|7% Cumulative Preference                    | 75 000     |  | 34         |  | €453.78   |  | 29 000    |  | 13        |  |          |  | 13        | 
|6% Cumulative Preference                    | 200 000    |  | 91         |  | €453.78   |  | 161 060   |  | 73        |  |          |  | 73        | 
|4% Cumulative Preference                    | 750 000    |  | 34         |  | €45.38    |  | 750 000   |  | 34        |  |          |  | 34        | 
|Share premium                               |            |  |            |  |           |  |           |  | 4         |  |          |  | 4         | 
|                                            |            |  |            |  |           |  |           |  |           |  |           |  |           | 
|                                            |            |  | 159        |  |           |  |           |  | 124       |  |          |  | 124       | 
|                                            |            |  |            |  |           |  |           |  |           |  |           |  |           | 

The 7%, 6% and 4% cumulative preference shares of NV are entitled to dividends at the rates indicated. The 4% preference capital of NV is redeemable at par at the companys option either wholly or in part. The
other classes of preferential share capital of NV are not redeemable.

At the Annual General Meeting of NV held
  on 8 May 2006 it was agreed to convert the nominal value of all classes of shares
  from guilders into euros. The 7% and 6% preference shares with a nominal value
  of Fl.1 000 each, were converted into shares with a nominal value of €428.57
  each, and the 4% preference shares with a nominal value of Fl.100 each, were
  converted into shares with a nominal value of €42.86 each. The effect of this
  was to adjust their reported value, with the difference being held as a statutory
  reserve.

In order to maintain the same economic rights
  for the preference shares as before the euro conversion, it was decided that
  their entitlement to dividend and liquidation proceeds remains linked, using
  the official euro conversion rate, to the amount in Dutch guilders originally
  paid up on these shares. As a consequence the amount paid out as preference
  dividends will remain the same euro amount as paid out in previous years.



|96 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

---



Back to Contents

| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



16 Borrowings(continued)

Borrowings  additional
    detailsThe tables set out below and on
  page 95 take into account the various interest rate swaps and forward foreign
  currency contracts entered into by the Group, details of which are set out in
  note 17 on pages 99 and 100.

Details of specific bonds and other loans
  are also given below:

|                                        | € million |  | € million |     | € million |  | € million |    
|--------------------------------------- | --------- |  | --------- | --- | --------- |  | --------- | ---
|                                        | Amortised |  | Fair      |     | Amortised |  | Fair      |    
|                                        | cost      |  | value     |     | cost      |  | value     |    
|                                        | 2006      |  | 2006      | (a) | 2005      |  | 2005      | (a)
|                                        |           |  |           |     |           |  |           |    
|Unilever N.V.                           |           |  |           |     |           |  |           |    
|5.125% Bonds 2006 (€)                   |          |  |          |     |          |  | 1 010     |    
|5.125% Notes 2006 (US $)                |          |  |          |     | 431       |  |          |    
|4.250% Bonds 2007 (€)                   | 505       |  | 500       |     | 513       |  | 507       |    
|5.000% Bonds 2007 (US $)                | 490       |  |          |     |          |  | 556       |    
|3.375% Bonds 2015 (€)                   | 747       |  |          |     | 747       |  |          |    
|Commercial paper (€)                    |          |  |          |     | 2 180     |  |          |    
|Commercial paper (£)                    |          |  |          |     | 491       |  |          |    
|Commercial paper (US $)                 |          |  |          |     | 348       |  |          |    
|Commercial paper (Swiss francs)         |          |  |          |     | 53        |  |          |    
|Other                                   | 7         |  |          |     | 36        |  |          |    
|                                        |           |  |           |     |           |  |           |    
|Total Unilever N.V.                     | 1 749     |  | 500       |     | 4 799     |  | 2 073     |    
|                                        |           |  |           |     |           |  |           |    
|Other group companies                   |           |  |           |     |           |  |           |    
|                                        |           |  |           |     |           |  |           |    
|Netherlands                             |           |  |           |     |           |  |           |    
|Commercial paper (€)                    | 770       |  |          |     |          |  |          |    
|Commercial paper (£)                    | 532       |  |          |     |          |  |          |    
|Commercial paper (US $)                 | 236       |  |          |     |          |  |          |    
|Commercial paper (Swiss francs)         | 63        |  |          |     |          |  |          |    
|                                        |           |  |           |     |           |  |           |    
|United States                           |           |  |           |     |           |  |           |    
|6.150% Bonds 2006 (US $)                |          |  |          |     | 253       |  |          |    
|7.125% Bonds 2010 (US $)                | 1 321     |  |          |     | 1 467     |  |          |    
|7.000% Bonds 2017 (US $)                | 110       |  |          |     | 120       |  |          |    
|7.250% Bonds 2026 (US $)                | 217       |  |          |     | 239       |  |          |    
|6.625% Bonds 2028 (US $)                | 166       |  |          |     | 185       |  |          |    
|5.900% Bonds 2032 (US $)                | 746       |  |          |     | 829       |  |          |    
|5.600% Bonds 2097 (US $)                | 69        |  |          |     | 77        |  |          |    
|Commercial paper (US $)                 | 259       |  |          |     |          |  |          |    
|Other                                   | 8         |  |          |     | 12        |  |          |    
|                                        |           |  |           |     |           |  |           |    
|Japan                                   |           |  |           |     |           |  |           |    
|Floating rate note 2006 (Japanese yen)  |          |  |          |     | 151       |  |          |    
|                                        |           |  |           |     |           |  |           |    
|Thailand                                |           |  |           |     |           |  |           |    
|3.300% Bonds 2007 (Thai baht)           | 139       |  |          |     | 134       |  |          |    
|                                        |           |  |           |     |           |  |           |    
|South Africa                            |           |  |           |     |           |  |           |    
|10.200% Bonds 2008 (South African rand) |          |  | 109       |     |          |  | 137       |    
|Commercial paper (South African rand)   | 27        |  |          |     | 120       |  |          |    
|                                        |           |  |           |     |           |  |           |    
|Other countries                         | 149       |  |          |     | 223       |  |          |    
|                                        |           |  |           |     |           |  |           |    
|Total other group companies             | 4 812     |  | 109       |     | 3 810     |  | 137       |    
|                                        |           |  |           |     |           |  |           |    
|Total bonds and other loans             | 6 561     |  | 609       |     | 8 609     |  | 2 210     |    
|                                        |           |  |           |     |           |  |           |    

|(a) | As required by fair value hedge accounting, the fair value of the bonds and other loans is based on their amortised cost adjusted for the market value of the related derivative.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ReclassificationsDuring 2006 Unilever discontinued
  fair value accounting for 5.000% Bonds 2007. On the date the hedge accounting
  discontinued, the fair value became the new value at amortised cost.



|UnileverAnnual Report on Form 20-F 2006 | 97
|--------------------------------------- | --

---



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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



16 Borrowings(continued)

Undrawn committed facilitiesUnilever had the following
  undrawn committed facilities at 31 December 2006:

|• | revolving 364-day bilateral credit facilities of in aggregate US $4 263 million (2005: US $3 958 million) with a 364-day term out;                                                                                                                   
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|• | revolving five-year bilateral credit facilities of in aggregate US $334 million (2005: US $334 million);                                                                                                                                             
|• | revolving 364-day notes commitments of US $200 million (2005: US $200
    million) with the ability to issue notes with a maturity up to 364 days; and                                                                                               
|• | 364-day bilateral money market commitments of in
    aggregate US $1 420 million (2005: US $1 725 million), under which
    the underwriting banks agree, subject to certain
conditions, to subscribe for notes with maturities of up to three years.

The facilities that matured in November 2006 and December 2006 have been renewed until November 2007.

Interest rateThe average interest rate
  on short-term borrowings in 2006 was 3.6% (2005: 3.0%) .

Interest rate profile and currency analysis of financial liabilitiesThe interest rate profiles
  of the Groups financial liabilities analysed by principal currency are
  set out in the table below:

|                                                                               | € million     |  |               |  |            |  | € million |   |          |  | € million |    
|------------------------------------------------------------------------------ | ------------- |  | ------------- |  | ---------- |  | --------- | - | -------- |  | --------- | ---
|                                                                               | Fixed         |  | Fixed         |  | Fixed      |  | Floating  |   | Floating |  |           |    
|                                                                               | rate          |  | rate          |  | rate       |  | rate      |   | rate     |  | Total     |    
|                                                                               |               |  |               |  |            |  |           |   |          |  |           |    
|                                                                               | Amount        |  | Average       |  | Weighted   |  |           |   |          |  |           |    
|                                                                               | of fixing     |  | interest rate |  | average    |  |           |   | Interest |  |           |    
|                                                                               | for following |  | for following |  | fixing     |  |           |   | rate for |  |           |    
|                                                                               | year          |  | year          |  | period     |  |           |   | 2007     |  |           |    
|                                                                               |               |  |               |  |            |  |           |   |          |  |           |    
|Liabilities  2006                                                             |               |  |               |  |            |  |           |   |          |  |           |    
|Euro(a)                                                                        | 1 771         |  | 3.4%          |  | 4.5 years  |  | 351       |   | 4.1%     |  | 2 122     |    
|Sterling                                                                       | 140           |  | 7.8%          |  | 20.8 years |  | 140       |   | 5.6%     |  | 280       |    
|US dollar                                                                      | 3 444         |  | 6.6%          |  | 12.2 years |  | 2 687     |   | 5.4%     |  | 6 131     |    
|Swedish krona                                                                  |              |  |               |  |            |  | 830       |   | 3.8%     |  | 830       |    
|Swiss francs                                                                   |              |  |               |  |            |  | 519       |   | 2.4%     |  | 519       |    
|Japanese yen                                                                   | 1             |  | 4.0%          |  | 0.5 years  |  | 377       |   | 0.8%     |  | 378       |    
|Thai baht                                                                      | 139           |  | 3.2%          |  | 0.9 years  |  | 85        |   | 5.2%     |  | 224       |    
|Other                                                                          | 102           |  | 11.7%         |  | 3.9 years  |  | 936       |   | 7.7%     |  | 1 038     |    
|                                                                               |               |  |               |  |            |  |           |   |          |  |           |    
|                                                                               | 5 597         |  |               |  |            |  | 5 925     |   |          |  | 11 522    |    
|Euro leg of currency derivatives
      mainly relating to intra-group loans(b) |               |  |               |  |            |  |           |   |          |  | (2 723    | )  
|                                                                               |               |  |               |  |            |  |           |   |          |  |           |    
|Total                                                                          |               |  |               |  |            |  |           |   |          |  | 8 799     | (c)
|                                                                               |               |  |               |  |            |  |           |   |          |  |           |    
|Liabilities  2005(d)                                                          |               |  |               |  |            |  |           |   |          |  |           |    
|Euro(a)                                                                        | 1 897         |  | 3.0%          |  | 4.9 years  |  | 571       |   |          |  | 2 468     |    
|Sterling                                                                       | 91            |  | 5.4%          |  | 0.7 years  |  | (52       | ) |          |  | 39        |    
|US dollar                                                                      | 3 857         |  | 6.3%          |  | 12.9 years |  | 2 517     |   |          |  | 6 374     |    
|Japanese yen                                                                   | 2             |  | 4.0%          |  | 1.5 years  |  | 436       |   |          |  | 438       |    
|Thai baht                                                                      | 153           |  | 3.2%          |  | 1.9 years  |  | 104       |   |          |  | 257       |    
|Other                                                                          | 127           |  | 11.7%         |  | 4.8 years  |  | 2 913     |   |          |  | 3 040     |    
|                                                                               |               |  |               |  |            |  |           |   |          |  |           |    
|Total                                                                          | 6 127         |  |               |  |            |  | 6 489     |   |          |  | 12 616    | (e)
|                                                                               |               |  |               |  |            |  |           |   |          |  |           |    

|(a) | Euro borrowings include €124 million preference shares that provide for a fixed preference dividend.                                                                                                                                                                                                                                                                            
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Includes the euro leg of the currency derivatives mainly relating to intra-group loans, amounting to €2 723 million for 2006. These derivatives create an interest rate exposure in euro. However, to reconcile the
liability with the balance sheet, the total value is eliminated again. The other leg of the currency derivatives is shown in note 15 on page 95 as an asset.
|(c) | Includes finance lease creditors amounting to €187 million and fair value of borrowing-related derivatives (see note 17 on page 99) amounting to €11 million.                                                                                                                                                                                                                   
|(d) | Figures for 2005 have been restated to reflect the amount of fixing and related average interest rate for the following year.                                                                                                                                                                                                                                                   
|(e) | Includes finance lease creditors amounting to €217 million.                                                                                                                                                                                                                                                                                                                     



|98 | UnileverAnnual Report on Form 20-F 2006
|-- | ---------------------------------------

---



Back to Contents

| |                                            
| | -------------------------------------------
| | Financial
            Statements(continued)
| |                                            

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



17 Financial
  instruments and treasury risk management

The Group has comprehensive policies in place, approved by the Boards, covering the use of derivative financial instruments. These instruments are used for hedging purposes. Established controls are in place covering
all financial instruments. These include policies, guidelines, exposure limits, a system of authorities and independent reporting. Performance is closely monitored with independent reviews undertaken by internal audit. Hedge accounting principles
are described in note 1 on page 74. The use of leveraged instruments is not permitted. Details of the instruments used for interest rate and foreign exchange exposure management, together with information on related exposures, are given
below.

Unilevers interest rate management
  policy is described below. The Groups exposure to interest rates is mainly
  fixed by fixed rate long-term debt issues and straightforward derivative financial
  instruments, such as interest rate swaps. In general, cash is invested short-term
  at floating interest rates.

At the end of 2006, interest rates were fixed
  on approximately 48% of the projected net of cash and borrowing positions for
  2007 and 52% for 2008 (compared with 61% for 2006 and 49% for 2007 at the end
  of 2005).

The separate amounts shown as assets and
  liabilities are not indicative of the amount of credit risk to which the Group
  is exposed as we have netting agreements in place with our principal banks.
  In case of a default, Unilever is allowed to net the assets and liabilities.
  There was no significant concentration of credit risk with any single counterparty.
  Details of our policy for managing credit risk are given below.

In the assessment of hedge effectiveness
  the credit risk element on the underlying hedged item has been excluded. Hedge
  ineffectiveness is immaterial.

Fair values of derivatives used as cash flow
  hedges, fair value hedges and in connection with purchases of own shares at
  31 December 2006 amounted in total to assets of €23 million (2005: €62
  million) and liabilities of €9 million (2005: €22 million). Of these
  amounts, the fair value of borrowing-related derivatives at 31 December 2006
  was €5 million (2005: €46 million).

|                                                                                       | € million |  | € million |  | € million   |  | € million   | 
|-------------------------------------------------------------------------------------- | --------- |  | --------- |  | ----------- |  | ----------- | 
|                                                                                       | Assets    |  | Assets    |  | Liabilities |  | Liabilities | 
|Fair values
      of derivatives used as hedges of net investments in foreign entities | 2006      |  | 2005      |  | 2006        |  | 2005        | 
|                                                                                       |           |  |           |  |             |  |             | 
|Current                                                                                |           |  |           |  |             |  |             | 
|Foreign exchange derivatives                                                           | 11        |  | 250       |  | 350         |  | 1           | 
|                                                                                       |           |  |           |  |             |  |             | 

The fair value of borrowing-related derivatives
  included above at 31 December 2006 amounted to €(339) million (2005: €249
  million). The impact of exchange rate movements on the fair value of forward
  exchange contracts used to hedge net investments is recognised in reserves.

|                                 | € million |  | € million |  | € million   |  | € million   | 
|-------------------------------- | --------- |  | --------- |  | ----------- |  | ----------- | 
|                                 | Assets    |  | Assets    |  | Liabilities |  | Liabilities | 
|Fair values of natural hedges(a) | 2006      |  | 2005      |  | 2006        |  | 2005        | 
|                                 |           |  |           |  |             |  |             | 
|Current                          |           |  |           |  |             |  |             | 
|Interest rate derivatives        | 2         |  | 7         |  | 1           |  | 2           | 
|Cross currency swaps             |          |  | 253       |  | 6           |  | 1           | 
|Foreign exchange derivatives     | 371       |  | 11        |  | 31          |  | 282         | 
|                                 |           |  |           |  |             |  |             | 
|                                 | 373       |  | 271       |  | 38          |  | 285         | 
|Non-current                      |           |  |           |  |             |  |             | 
|Interest rate derivatives        |          |  |          |  | 1           |  | 4           | 
|Cross currency swaps             |          |  |          |  | 12          |  | 27          | 
|                                 |           |  |           |  |             |  |             | 
|                                 |          |  |          |  | 13          |  | 31          | 
|                                 |           |  |           |  |             |  |             | 
|                                 | 373       |  | 271       |  | 51          |  | 316         | 
|                                 |           |  |           |  |             |  |             | 

|(a) | A natural hedge  sometimes known
      as an economic hedge  is where exposure to a risk is offset, or partly
      offset, by an opposite exposure to that same risk. Hedge accounting is not
      applied to these relationships.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Of the fair values disclosed above, the fair
  value of borrowing-related derivatives at 31 December 2006 amounted to €323
  million (2005: €(45) million).

Additional informationThe fair values of forward foreign exchange
  contracts represent the unrealised gain or loss on revaluation of the contracts
  at the year-end forward exchange rates. The fair values of interest rate derivatives
  are based on the net present value of the anticipated future cash flows.

Embedded derivativesIn accordance with IAS 39, 'Financial instruments:
  Recognition and Measurement', Unilever has reviewed all contracts for embedded
  derivatives that are required to be separately accounted for if they do not
  meet specific requirements set out in the standard; no such embedded derivatives
  have been identified.



|UnileverAnnual Report on Form 20-F 2006 | 99
|--------------------------------------- | --

---



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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



17 Financial instruments and treasury risk management(continued)

Fair values of financial assets and financial liabilitiesThe following table summarises the fair values and carrying amounts of the various classes of financial assets and financial liabilities. All trade and other receivables and trade payables and other liabilities (other
than finance lease creditors) and provisions have been excluded from the analysis below and from the interest rate and currency profiles in note 15 on page 95 and note 16 on page 96, as their carrying amounts are a reasonable approximation of their
fair value, because of their short-term nature.

|                                  | € million |   | € million |   | € million |   | € million |  
|--------------------------------- | --------- | - | --------- | - | --------- | - | --------- | -
|                                  | Fair      |   | Fair      |   | Carrying  |   | Carrying  |  
|                                  | value     |   | value     |   | amount    |   | amount    |  
|                                  | 2006      |   | 2005      |   | 2006      |   | 2005      |  
|                                  |           |   |           |   |           |   |           |  
|Financial assets                  |           |   |           |   |           |   |           |  
|Other non-current assets          | 784       |   | 757       |   | 771       |   | 757       |  
|Cash and cash equivalents         | 1 039     |   | 1 529     |   | 1 039     |   | 1 529     |  
|Other financial assets            | 237       |   | 335       |   | 237       |   | 335       |  
|Derivatives related to borrowings |          |   | 250       |   |          |   | 250       |  
|                                  |           |   |           |   |           |   |           |  
|                                  | 2 060     |   | 2 871     |   | 2 047     |   | 2 871     |  
|Financial liabilities             |           |   |           |   |           |   |           |  
|Bank loans and overdrafts         | (1 307    | ) | (1 456    | ) | (1 307    | ) | (1 456    | )
|Bonds and other loans             | (7 402    | ) | (11 255   | ) | (7 170    | ) | (10 819   | )
|Finance lease creditors           | (192      | ) | (225      | ) | (187      | ) | (217      | )
|Preference shares                 | (122      | ) | (124      | ) | (124      | ) | (124      | )
|Derivatives related to borrowings | (11       | ) |          |   | (11       | ) |          |  
|                                  |           |   |           |   |           |   |           |  
|                                  | (9 034    | ) | (13 060   | ) | (8 799    | ) | (12 616   | )
|                                  |           |   |           |   |           |   |           |  

The fair values and the carrying amount of
  listed investments included in financial assets and preference shares included
  in financial liabilities are based on their market values. Cash and cash equivalents,
  other financial assets, bank loans and overdrafts have fair values that approximate
  to their carrying amounts because of their short-term nature. The fair values
  of listed bonds are based on their market value; non-listed bonds and other
  loans are based on the net present value of the anticipated future cash flows
  associated with these instruments. Fair values for finance lease creditors have
  been assessed by reference to current market rates for comparable leasing arrangements.

CollateralCounterparties have deposited securities with
  a market value of €2 million (2005: €275 million) as collateral
  for their obligations in respect of derivative financial instruments. Such collateral
  is not regarded as an asset of Unilever and is excluded from the balance sheet.

Commodity contractsUnilever purchases forward
  contracts to hedge future requirements for certain raw materials, almost always
  for physical delivery. Futures contracts may also be used to hedge future price
  movements.

Treasury risk managementUnilever manages a variety
  of market risks, including the effects of changes in foreign exchange rates,
  interest rates, liquidity and counterparty risks.

Unilever has an interest rate management
  policy aimed at optimising net interest cost and reducing volatility. This is
  achieved by modifying the interest rate exposure of debt and cash positions
  through the use of interest rate swaps.

Fixed rate investments and borrowings give
  rise to a fair value interest rate risk. The floating amounts give rise to a
  cash flow interest rate risk.

Because of Unilevers broad operational
  reach, it is subject to risks from changes in foreign currency values that could
  affect earnings. As a practical matter, it is not feasible to fully hedge these
  fluctuations. Additionally, Unilever believes that most currencies of major
  countries in which it operates will equalise against the euro over time. Unilever
  does have a foreign exchange policy that requires operating companies to manage
  trading and financial foreign exchange exposures within prescribed limits. This
  is achieved primarily through the use of forward foreign exchange contracts.
  Regional groups monitor compliance with this policy. At the end of 2006, there
  was no material exposure from companies holding assets and liabilities other
  than in their functional currency.

In addition, as Unilever conducts business
  in many foreign currencies but publishes its financial statements and measures
  its performance in euros, it is subject to exchange risk due to the effects
  that exchange rate movements have on the translation of the underlying net assets
  of its foreign subsidiaries. Unilever aims to minimise its foreign exchange
  exposure in operating companies by borrowing in the local currency, except where
  inhibited by local regulations, lack of local liquidity or local market conditions.
  For those countries that, in the view of management, have a substantial retranslation
  risk, Unilever may hedge such net investment. Nevertheless, from time to time,
  currency revaluations on unhedged investments will trigger exchange translation
  movements in the balance sheet.



|100 | UnileverAnnual Report on Form 20-F 2006
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| |                                            
| | -------------------------------------------
| | Financial
            Statements(continued)
| |                                            

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



17 Financial instruments and treasury risk management(continued)

Liquidity risk is managed by maintaining access to global debt markets through an infrastructure of short-term and long-term debt programmes. In addition to this, Unilever has committed credit facilities in place to
support its commercial paper programmes and for general corporate purposes. See note 16 on page 96 for further details of these credit facilities.

Counterparty exposures are minimised by restricting
  dealing counterparties to a limited number of financial institutions that have
  secure credit ratings, by working within agreed counterparty limits, by obtaining
  collateral for outstanding positions and by setting limits on the maturity of
  exposures. Counterparty credit ratings are closely monitored and concentration
  of credit risk with any single counterparty is avoided. There was no significant
  concentration of credit risk with any single counterparty as at the year end.

Master netting agreements are in place for
  the majority of interest rate derivative instruments. The risk in the event
  of default by a counterparty is determined by the extent to which market prices
  have moved since the contracts were made. The Group believes that the risk of
  incurring such losses is remote.

Cash flow provides the funds to service the
  financing of the business and enhance shareholder return. A material and sustained
  shortfall in our cash flow could undermine our credit rating and overall investor
  confidence and could restrict the Groups ability to raise funding.

Sensitivity analysisThe analysis below presents the
  sensitivity of the fair value of the financial instruments, including derivative
  financial instruments which the Group held at 31 December 2006, to hypothetical
  changes in interest and foreign exchange rates.

Interest rate sensitivityThe fair values of debt, investments
  and related hedging instruments are affected by movements in interest rates.
  The analysis shows the sensitivity of the fair value of interest rate-sensitive
  instruments to a hypothetical 10% change in the interest rates across all maturities.

Foreign exchange rate sensitivityThe values of debt, investments
  and related hedging instruments, denominated in currencies other than the functional
  currency of the entities holding them, are subject to exchange rate movements.
  The analysis shows the income statement sensitivity of these values to a hypothetical
  10% change in foreign exchange rates.

|                           | Sensitivity
      to a           | 
|-------------------------- | -------------------------------- | 
|                           | hypothetical 10%
      change in | 
|                           | rates as at 31
      December    | 
|                           | € million                        | 
|                           | 2006                             | 
|                           |                                  | 
|Interest rate risk         | 167                              | 
|Foreign exchange rate risk | 16                               | 
|                           |                                  | 

The above-mentioned interest rate sensitivity
  relates to financial instruments, including derivative financial instruments,
  with fair values amounting to €7 408 million at the end of 2006 (2005:
  €11 186 million). The above-mentioned foreign exchange rate risk relates
  to a value of financial instruments and derivatives of €164 million at
  the end of 2006 (2005: €300 million).

Sensitivity to not applying
  hedge accountingDerivatives have to be reported at fair value.
  Those derivatives used for cash flow hedging for which we do not apply hedge
  accounting will cause volatility in the income statement. Such derivatives did
  not have a material impact on the 2006 income statement.

Income statement sensitivity to changes in interest ratesAs mentioned above on page 100,
  Unilever has an interest rate management policy aimed at optimising net interest
  costs and reducing volatility. Part of the interest rates on funds and debt
  are not fixed and are therefore subject to changes in floating interest rates.
  The analysis shows the sensitivity of the income statement to a hypothetical
  one percentage point change in floating interest rates over both funds and debt
  on a full-year basis.

|      | Sensitivity
      to a hypothetical    |  
|----- | -------------------------------------- | -
|      | one percentage
      point change in   |  
|      | floating rates
      as at 31 December |  
|      | € million                              |  
|      | 2006                                   |  
|      |                                        |  
|Funds | 24                                     |  
|Debt  | (59                                    | )
|      |                                        |  



|UnileverAnnual Report on Form 20-F 2006 | 101
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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



18 Trade
  payables and other liabilities

|                                 | € million |  | € million | 
|-------------------------------- | --------- |  | --------- | 
|Trade and other payables         | 2006      |  | 2005      | 
|                                 |           |  |           | 
|Due within one year              |           |  |           | 
|Trade payables                   | 3 833     |  | 3 988     | 
|Accruals                         | 2 741     |  | 2 858     | 
|Social security and sundry taxes | 386       |  | 410       | 
|Finance lease creditors          | 61        |  | 64        | 
|Others                           | 913       |  | 908       | 
|                                 |           |  |           | 
|                                 | 7 934     |  | 8 228     | 
|Due after more than one year     |           |  |           | 
|Accruals                         | 197       |  | 153       | 
|Finance lease creditors          | 126       |  | 153       | 
|Others                           | 76        |  | 83        | 
|                                 |           |  |           | 
|                                 | 399       |  | 389       | 
|                                 |           |  |           | 
|Total trade and other payables   | 8 333     |  | 8 617     | 
|                                 |           |  |           | 

The amounts shown above do not include any creditors due after more than five years other than finance lease creditors described in note 25 on page 112.

19 Provisions

|                                         | € million |  | € million | 
|---------------------------------------- | --------- |  | --------- | 
|Provisions                               | 2006      |  | 2005      | 
|                                         |           |  |           | 
|Due within one year                      |           |  |           | 
|Restructuring provisions                 | 439       |  | 391       | 
|Preference shares provision              | 300       |  |          | 
|Other provisions                         | 270       |  | 253       | 
|                                         |           |  |           | 
|                                         | 1 009     |  | 644       | 
|Due after one year                       |           |  |           | 
|Restructuring provisions                 | 53        |  | 63        | 
|Legal provisions                         | 51        |  | 38        | 
|Disputed indirect taxes                  | 560       |  | 547       | 
|Net liability of associate               | 34        |  | 37        | 
|Other provisions                         | 128       |  | 47        | 
|                                         |           |  |           | 
|                                         | 826       |  | 732       | 
|                                         |           |  |           | 
|Total restructuring and other provisions | 1 835     |  | 1 376     | 
|                                         |           |  |           | 



|                            | € million     |   | € million  |   | € million  |  | € million      |   | € million     |   | € million  |   | € million |  
|--------------------------- | ------------- | - | ---------- | - | ---------- |  | -------------- | - | ------------- | - | ---------- | - | --------- | -
|                            |               |   |            |   | Preference |  |                |   |               |   |            |   |           |  
|                            | Restructuring |   | Legal      |   | shares     |  | Disputed       |   | Net liability |   | Other      |   |           |  
|Movements during 2006       | provisions    |   | provisions |   | provision  |  | indirect taxes |   | of associate  |   | provisions |   | Total     |  
|                            |               |   |            |   |            |  |                |   |               |   |            |   |           |  
|31 December 2005            | 454           |   | 38         |   |           |  | 547            |   | 37            |   | 300        |   | 1 376     |  
|Disposal of group companies | 1             |   |           |   |           |  |               |   |              |   | 48         |   | 49        |  
|Income statement:           |               |   |            |   |            |  |                |   |               |   |            |   |           |  
|New charges                 | 472           |   | 18         |   | 300        |  | 95             |   |              |   | 126        |   | 1 011     |  
|Releases                    | (89           | ) | (3         | ) |           |  | (47            | ) |              |   | (30        | ) | (169      | )
|Utilisation                 | (332          | ) |           |   |           |  | (22            | ) |              |   | (35        | ) | (389      | )
|Currency retranslation      | (14           | ) | (2         | ) |           |  | (13            | ) | (3            | ) | (11        | ) | (43       | )
|                            |               |   |            |   |            |  |                |   |               |   |            |   |           |  
|31 December 2006            | 492           |   | 51         |   | 300        |  | 560            |   | 34            |   | 398        |   | 1 835     |  
|                            |               |   |            |   |            |  |                |   |               |   |            |   |           |  

Restructuring provisions primarily relate to early retirement and redundancy costs; no projects are individually material.

Legal provisions are comprised of many claims,
  of which none is individually material.

Unilever announced on 8 November 2006 that
  it had agreed a settlement with the main parties in the legal dispute over its
  1999 Unilever N.V. preference shares. The terms of the agreement are that NV
  will pay an amount of €1.38 plus interest of €0.16 compensation
  per preference share held at the beginning of 24 March 2004, the day on which
  NV announced its intention to convert the preference shares into NV ordinary
  shares. NV also agreed to reimburse the parties who initiated the Enterprise
  Chamber procedure for costs and expenses. On 19 January 2007 NV announced that
  the settlement offer will be extended to all those other former preference shareholders
  who held preference shares at the beginning of 24 March 2004. Unilever has provided
  €300 million in respect of the settlement.

The provision for disputed indirect taxes
  is comprised of a number of small disputed items. The largest elements of the
  provision relate to disputes with the Brazilian authorities. Because of the
  nature of the disputes, the timing of the utilisation of the provisions, and
  any associated cash outflows, is uncertain. The majority of the disputed items
  attract an interest charge.

No individual item within the other provisions
  balance is significant. Unilever expects that the issues relating to these restructuring,
  legal and other provisions will be substantively resolved over the next five
  years.



|102 | UnileverAnnual Report on Form 20-F 2006
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| |                                            
| | -------------------------------------------
| | Financial
            Statements(continued)
| |                                            

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



20 Pensions
  and similar obligations

Description of plansIn many countries the Group operates
  defined benefit pension plans based on employee pensionable remuneration and
  length of service. The majority of these plans are externally funded. The Group
  also provides other post-employment benefits, mainly post-employment medical
  plans in the United States. These plans are predominantly unfunded. The Group
  also operates a number of defined contribution plans, the assets of which are
  held in external funds.

The majority of the Groups externally
  funded plans are established as trusts, foundations or similar entities. The
  operation of these entities is governed by local regulations and practice in
  each country, as is the nature of the relationship between the Group and the
  trustees (or equivalent) and their composition.

Exposure to risksPension assets and liabilities
  (pre-tax) of €17 278 million and €20 358 million respectively are
  held on the Groups balance sheet as at31
  December 2006. Movements in equity markets, interest rates, inflation and life
  expectancy could materially affect the level of surpluses and deficits in these
  schemes, and could prompt the need for the Group to make additional pension
  contributions, or to reduce pension contributions, in the future. The key assumptions
  used to value our pension liabilities are set out below and on page 104.

Investment strategyThe Groups investment
  strategy in respect of its funded pension plans is implemented within the framework
  of the various statutory requirements of the territories where the plans are
  based. The Group has developed policy guidelines for the allocation of assets
  to different classes with the objective of controlling risk and maintaining
  the right balance between risk and long-term returns in order to limit the cost
  to the company of the benefits provided. To achieve this, investments are well
  diversified, such that the failure of any single investment would not have a
  material impact on the overall level of assets. The plans invest the largest
  proportion of the assets in equities which the Group believes offer the best
  returns over the long term commensurate with an acceptable level of risk. The
  pension funds also have a proportion of assets invested in property, bonds and
  cash. The majority of assets are managed by a number of external fund managers
  with a small proportion managed in-house. Unilever has a pooled investment vehicle
  (Univest) which it believes offers its pension plans around the world a simplified
  externally managed investment solution to implement their strategic asset allocation
  models initially for equities. The aim is to provide a high quality, well diversified
  risk-controlled solution.

Significant Items on the face of the Income StatementDuring 2006 we updated certain
  terms of the defined benefit plan in the UK which resulted in a one-off credit
  to the income statement in 2006 of €120 million. During 2006 a number
  of initiatives were taken to reduce the cost of healthcare benefits, principally
  in the United States, through changes to the design of the plans. As a consequence,
  a reduction in liability of €146 million was recognised in the income
  statement for 2006.

AssumptionsWith the objective of presenting
  the assets and liabilities of the pensions and other post-employment benefit
  plans at their fair value on the balance sheet, assumptions under IAS 19 are
  set by reference to market conditions at the valuation date. The actuarial assumptions
  used to calculate the benefit obligations vary according to the country in which
  the plan is situated. The following table shows the assumptions, weighted by
  liabilities, used to value the principal defined benefit pension plans (covering
  approximately 96% of pension liabilities  the principal pension
  plans) and plans providing other post-employment benefits, and in addition
  the expected long-term rates of return on assets, weighted by asset value.

|                                                            | 31 December 2006 |  | 31 December 2005 |  | 31 December 2004 | 
|----------------------------------------------------------- | ---------------- |  | ---------------- |  | ---------------- | 
|                                                            |                  |  |                  |  |                  | 
|                                                            | Principal        |  | Other            |  | Principal        | 
|                                                            | defined          |  | post-            |  | defined          | 
|                                                            | benefit          |  | employment       |  | benefit          | 
|                                                            | pension          |  | benefit          |  | pension          | 
|                                                            | plans            |  | plans            |  | plans            | 
|                                                            |                  |  |                  |  |                  | 
|Discount rate                                               | 5.1%             |  | 5.9%             |  | 4.6%             | 
|Inflation                                                   | 2.5%             |  | n/a              |  | 2.4%             | 
|Rate of increase in salaries                                | 3.7%             |  | 4.0%             |  | 3.5%             | 
|Rate of increase for pensions in payment                    | 2.3%             |  | n/a              |  | 2.1%             | 
|Rate of increase for pensions in deferment (where provided) | 2.7%             |  | n/a              |  | 2.5%             | 
|Long-term medical cost inflation                            | n/a              |  | 5.0%             |  | n/a              | 
|Expected long-term rates of return:                         |                  |  |                  |  |                  | 
|Equities                                                    | 7.8%             |  |                  |  | 7.4%             | 
|Bonds                                                       | 4.9%             |  |                  |  | 4.2%             | 
|Property                                                    | 6.3%             |  |                  |  | 5.8%             | 
|Others                                                      | 6.3%             |  |                  |  | 6.1%             | 
|Weighted average asset return                               | 6.9%             |  |                  |  | 6.4%             | 
|                                                            |                  |  |                  |  |                  | 



|UnileverAnnual Report on Form 20-F 2006 | 103
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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
    accounts Unilever Group
|-----------------------------------------------------
|                                                     



20 Pensions and similar obligations(continued)

The valuations of other post-employment benefit plans generally assume a higher initial level of medical cost inflation, which falls from 9.9% to the long-term rate within the next five years. Assumed healthcare cost
trend rates have a significant effect on the amounts reported for healthcare plans. A one percentage point change in assumed healthcare cost trend rates would have the following effect:

|                                                        | € million |  | € million |  
|------------------------------------------------------- | --------- |  | --------- | -
|                                                        | 1% point  |  | 1% point  |  
|                                                        | increase  |  | decrease  |  
|                                                        |           |  |           |  
|Effect on total of service and interest cost components | 4         |  | (3        | )
|Effect on total benefit obligation                      | 51        |  | (47       | )
|                                                        |           |  |           |  

The expected rate of return on plan assets was determined, based on actuarial advice, by a process that takes the long-term rates of return on government bonds available at the balance sheet date and applies to these
rates suitable risk premiums that take account of historic market returns and current market long-term expectations for each asset class.

For the most important pension plans, representing approximately 80% of all defined
benefit plans by liabilities, the assumptions used at 31 December 2006, 2005
and 2004 were:

|                                                                  |      |  | United Kingdom |  |      |  |      |  | Netherlands | 
|----------------------------------------------------------------- | ---- |  | -------------- |  | ---- |  | ---- |  | ----------- | 
|Assumptions                                                       | 2006 |  | 2005           |  | 2004 |  | 2006 |  | 2005        | 
|                                                                  |      |  |                |  |      |  |      |  |             | 
|Discount rate                                                     | 5.1% |  | 4.7%           |  | 5.3% |  | 4.6% |  | 4.0%        | 
|Inflation                                                         | 2.9% |  | 2.7%           |  | 2.8% |  | 1.9% |  | 1.8%        | 
|Rate of increase in salaries                                      | 4.4% |  | 4.2%           |  | 4.3% |  | 2.4% |  | 2.3%        | 
|Rate of increase for pensions
      in payment                    | 2.9% |  | 2.7%           |  | 2.9% |  | 1.9% |  | 1.8%        | 
|Rate of increase for pensions
      in deferment (where provided) | 2.9% |  | 2.7%           |  | 2.9% |  | 1.9% |  | 1.8%        | 
|Expected long-term rates of
      return:                         |      |  |                |  |      |  |      |  |             | 
|Equities                                                          | 8.0% |  | 7.6%           |  | 8.0% |  | 7.6% |  | 7.0%        | 
|Bonds                                                             | 5.2% |  | 4.5%           |  | 5.0% |  | 4.4% |  | 3.7%        | 
|Property                                                          | 6.5% |  | 6.1%           |  | 6.5% |  | 6.1% |  | 5.5%        | 
|Others                                                            | 7.2% |  | 6.7%           |  | 7.2% |  | 4.0% |  | 3.7%        | 
|Weighted average asset return                                     | 7.3% |  | 6.9%           |  | 7.3% |  | 6.6% |  | 6.0%        | 
|                                                                  |      |  |                |  |      |  |      |  |             | 
|                                                                  |      |  |                |  |      |  |      |  |             | 
|                                                                  |      |  |                |  |      |  |      |  |             | 

|                                                            |      |  |      |  | United States |  |      |  |      |  | Germany | 
|----------------------------------------------------------- | ---- |  | ---- |  | ------------- |  | ---- |  | ---- |  | ------- | 
|                                                            | 2006 |  | 2005 |  | 2004          |  | 2006 |  | 2005 |  | 2004    | 
|                                                            |      |  |      |  |               |  |      |  |      |  |         | 
|Discount rate                                               | 5.8% |  | 5.5% |  | 5.7%          |  | 4.6% |  | 4.0% |  | 4.5%    | 
|Inflation                                                   | 2.5% |  | 2.4% |  | 2.5%          |  | 1.9% |  | 1.8% |  | 1.8%    | 
|Rate of increase in salaries                                | 4.0% |  | 4.0% |  | 4.5%          |  | 2.6% |  | 2.5% |  | 2.5%    | 
|Rate of increase for pensions in payment                    | 0.0% |  | 0.0% |  | 0.0%          |  | 1.9% |  | 1.8% |  | 1.8%    | 
|Rate of increase for pensions in deferment (where provided) | 0.0% |  | 0.0% |  | 0.0%          |  | 0.0% |  | 0.0% |  | 0.0%    | 
|Expected long-term rates of return:                         |      |  |      |  |               |  |      |  |      |  |         | 
|Equities                                                    | 8.3% |  | 8.0% |  | 8.4%          |  | 7.6% |  | 7.0% |  | 7.6%    | 
|Bonds                                                       | 5.2% |  | 4.8% |  | 4.7%          |  | 4.4% |  | 3.7% |  | 4.1%    | 
|Property                                                    | 6.8% |  | 6.5% |  | 6.9%          |  | 6.1% |  | 5.5% |  | 6.1%    | 
|Others                                                      | 4.8% |  | 4.2% |  | 2.1%          |  | 3.0% |  | 3.7% |  | 3.7%    | 
|Weighted average asset return                               | 7.4% |  | 7.0% |  | 7.3%          |  | 5.8% |  | 5.3% |  | 5.7%    | 
|                                                            |      |  |      |  |               |  |      |  |      |  |         | 

Demographic assumptions, such as mortality rates, are set having regard to the latest trends in life expectancy, plan experience and other relevant data. The assumptions are reviewed and updated as necessary as part of
the periodic actuarial valuation of the pension plans.

Mortality assumptions for the most important countries are based on the following
post-retirement mortality tables: (i) United Kingdom: PMA 92 and PFA 92 with
short cohort adjustment and scaling factor of 125% applied, projected to 2015
for current pensioners and to 2025 for future pensioners; (ii) the Netherlands:
GBMV (1995-2000) with age set back of four years for males and two years for
females; (iii) United States: RP2000 with a projection period of 10-15 years;
and (iv) Germany: Heubeck 1998 (Periodentafel) with a scaling factor of 85%.

These tables translate into the following years of life expectancy for current
pensioners aged 65:

|        | United  |  |             |  | United |  |         | 
|------- | ------- |  | ----------- |  | ------ |  | ------- | 
|        | Kingdom |  | Netherlands |  | States |  | Germany | 
|        |         |  |             |  |        |  |         | 
|Males   | 19      |  | 18          |  | 19     |  | 18      | 
|Females | 22      |  | 21          |  | 22     |  | 21      | 
|        |         |  |             |  |        |  |         | 

As considered appropriate having regard to the factors set out above, the assumptions and approach adopted allow for future improvements in life expectancy.

Assumptions for the remaining defined benefit plans vary considerably, depending
on the economic conditions of the countries where they are situated.



|104 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



20 Pensions and similar obligations(continued)

Balance SheetThe assets, liabilities and surplus/(deficit)
position of the pension and other post-employment benefit plans and the expected
rates of return on the plan assets at the balance sheet date were:

|                                   | € million |   | € million        |   | %         |  | € million        |   | € million   |   | %                |  | € million |   | € million   |   | %         | 
|---------------------------------- | --------- | - | ---------------- | - | --------- |  | ---------------- | - | ----------- | - | ---------------- |  | --------- | - | ----------- | - | --------- | 
|                                   |           |   | 31 December 2006 |   |           |  | 31 December 2005 |   |             |   | 31 December 2004 | 
|                                   |           |   | Other post-      |   | Long-term |  |                  |   | Other post- |   | Long-term        |  |           |   | Other post- |   | Long-term | 
|                                   |           |   | employment       |   | rates of  |  |                  |   | employment  |   | rates of         |  |           |   | employment  |   | rates of  | 
|                                   | Pension   |   | benefit          |   | return    |  | Pension          |   | benefit     |   | return           |  | Pension   |   | benefit     |   | return    | 
|                                   | plans     |   | plans            |   | expected  |  | plans            |   | plans       |   | expected         |  | plans     |   | plans       |   | expected  | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Assets of principal plans:         |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Equities                           | 10 274    |   |                 |   | 7.8%      |  | 9 670            |   |            |   | 7.4%             |  | 8 050     |   |            |   | 7.9%      | 
|Bonds                              | 3 946     |   |                 |   | 4.9%      |  | 3 854            |   |            |   | 4.2%             |  | 3 154     |   |            |   | 4.5%      | 
|Property                           | 1 421     |   |                 |   | 6.3%      |  | 1 326            |   |            |   | 5.8%             |  | 1 229     |   |            |   | 6.3%      | 
|Other                              | 1 221     |   |                 |   | 6.3%      |  | 752              |   |            |   | 6.1%             |  | 684       |   |            |   | 6.1%      | 
|Assets of other plans              | 403       |   | 13               |   | 7.3%      |  | 387              |   | 17          |   | 6.9%             |  | 288       |   | 14          |   | 7.2%      | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|                                   | 17 265    |   | 13               |   |           |  | 15 989           |   | 17          |   |                  |  | 13 405    |   | 14          |   |           | 
|Present value of liabilities:      |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Principal plans                    | (18 711   | ) |                 |   |           |  | (19 081          | ) |            |   |                  |  | (16 528   | ) |            |   |           | 
|Other plans                        | (722      | ) | (925             | ) |           |  | (1 059           | ) | (1 306      | ) |                  |  | (1 070    | ) | (1 175      | ) |           | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|                                   | (19 433   | ) | (925             | ) |           |  | (20 140          | ) | (1 306      | ) |                  |  | (17 598   | ) | (1 175      | ) |           | 
|Aggregate net deficit of the plans | (2 168    | ) | (912             | ) |           |  | (4 151           | ) | (1 289      | ) |                  |  | (4 193    | ) | (1 161      | ) |           | 
|Irrecoverable surplus(a)           |          |   |                 |   |           |  | (141             | ) |            |   |                  |  | (100      | ) |            |   |           | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Pension liability net of assets    | (2 168    | ) | (912             | ) |           |  | (4 292           | ) | (1 289      | ) |                  |  | (4 293    | ) | (1 161      | ) |           | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Of which in respect of             |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Funded plans in surplus:           |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Liabilities                        | (5 200    | ) |                 |   |           |  | (4 728           | ) |            |   |                  |  | (4 176    | ) |            |   |           | 
|Assets                             | 6 897     |   |                 |   |           |  | 5 905            |   |            |   |                  |  | 4 901     |   |            |   |           | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Aggregate surplus                  | 1 697     |   |                 |   |           |  | 1 177            |   |            |   |                  |  | 725       |   |            |   |           | 
|Irrecoverable surplus(a)           |          |   |                 |   |           |  | (141             | ) |            |   |                  |  | (100      | ) |            |   |           | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Pension asset net of liabilities   | 1 697     |   |                 |   |           |  | 1 036            |   |            |   |                  |  | 625       |   |            |   |           | 
|Funded plans in deficit:           |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Liabilities                        | (11 716   | ) | (44              | ) |           |  | (12 444          | ) | (72         | ) |                  |  | (10 795   | ) | (62         | ) |           | 
|Assets                             | 10 368    |   | 13               |   |           |  | 10 084           |   | 17          |   |                  |  | 8 504     |   | 14          |   |           | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Pension liability net of assets    | (1 348    | ) | (31              | ) |           |  | (2 360           | ) | (55         | ) |                  |  | (2 291    | ) | (48         | ) |           | 
|Unfunded plans:                    |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|Pension liability                  | (2 517    | ) | (881             | ) |           |  | (2 968           | ) | (1 234      | ) |                  |  | (2 627    | ) | (1 113      | ) |           | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 
|                                   |           |   |                  |   |           |  |                  |   |             |   |                  |  |           |   |             |   |           | 

|(a) | The surplus in the plans is recoverable to the extent that the Group is able to benefit from either refunds or future contribution reductions.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------

The constituents of the Principal plans have been extended during 2006, such that some plans have been moved from Other plans into Principal plans.

Equity securities include Unilever securities amounting to €32 million
(0.2% of total plan assets) and €34 million (0.2% of total plan assets)
at 31 December 2006 and 2005 respectively. Property includes property occupied
by Unilever amounting to €75 million and €73 million at 31 December
2006 and 2005 respectively.

The pension assets above exclude the assets in a Special Benefits Trust amounting
to €181 million (2005: €197 million) to fund pension and similar
obligations in the US (see also note 11 on page
92).

The sensitivity of the overall pension liabilities to changes in the weighted
key financial assumptions are:

|               |                           | Impact on                 | 
|-------------- | ------------------------- | ------------------------- | 
|               | Change in                 | overall                   | 
|               | assumption                | liabilities               | 
|               |                           |                           | 
|Discount rate  | Increase/decrease by 0.5% | Decrease/increase by 6.8% | 
|Inflation rate | Increase/decrease by 0.5% | Increase/decrease by 5.6% | 
|               |                           |                           | 



|UnileverAnnual Report on Form 20-F 2006 | 105
|--------------------------------------- | ---

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



20 Pensions and similar obligations(continued)

Income statementThe charge to the income statement
comprises:

|                                                | € million |   | € million |   | € million |  
|----------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                                | 2006      |   | 2005      |   | 2004      |  
|                                                |           |   |           |   |           |  
|Charged to operating profit:                    |           |   |           |   |           |  
|Defined benefit pension and other benefit plans |           |   |           |   |           |  
|Current service cost                            | (369      | ) | (349      | ) | (327      | )
|Employee contributions                          | 13        |   | 18        |   | 31        |  
|Special termination benefits                    | (56       | ) | (73       | ) | (133      | )
|Past service cost                               | 293       |   | (12       | ) | (11       | )
|Settlements/curtailments                        | 48        |   | 95        |   | 60        |  
|Defined contribution plans                      | (61       | ) | (63       | ) | (65       | )
|                                                |           |   |           |   |           |  
|Total operating cost                            | (132      | ) | (384      | ) | (445      | )
|                                                |           |   |           |   |           |  
|Charged to other finance income/(cost):         |           |   |           |   |           |  
|Interest on retirement benefits                 | (977      | ) | (984      | ) | (972      | )
|Expected return on assets                       | 1 018     |   | 931       |   | 918       |  
|                                                |           |   |           |   |           |  
|Total other finance income/(cost)               | 41        |   | (53       | ) | (54       | )
|                                                |           |   |           |   |           |  
|Net impact on the income statement (before tax) | (91       | ) | (437      | ) | (499      | )
|                                                |           |   |           |   |           |  

Cash flowGroup cash flow in respect of pensions
and similar benefits comprises company contributions paid to funded plans and
benefits paid by the company in respect of unfunded plans. In 2006, the benefits
paid in respect of
unfunded plans amounted to €333 million (2005: €328 million; 2004: €324
million). Company contributions to funded defined benefit plans are subject to
periodic review, taking account of local legislation. In 2006, contributions
to
funded defined benefit plans amounted to €758 million (2005: €508
million; 2004: €462 million). Contributions to defined contribution plans
including 401k plans amounted to €61 million (2005: €63 million;
2004: €65
million). In 2005, a €15 million refund of assets was received out of unrecognised
surplus from Finland. Total contributions by the Group to funded plans, net of
refunds, are currently expected to be €371 million in 2007 (2006 Actual: €758
million). Benefit payments by the Group in respect of unfunded plans are currently
expected to be about €341 million in 2007 (2006 Actual: €333
million).

Statement of recognised income and expenseAmounts recognised in the
statement of recognised income and expense:

|                                                                                                | € million |  | € million |   | € million |   | € million  |  
|----------------------------------------------------------------------------------------------- | --------- |  | --------- | - | --------- | - | ---------- | -
|                                                                                                |           |  |           |   |           |   | Cumulative |  
|                                                                                                |           |  |           |   |           |   | since      |  
|                                                                                                |           |  |           |   |           |   | 1 January  |  
|                                                                                                | 2006      |  | 2005      |   | 2004      |   | 2004       |  
|                                                                                                |           |  |           |   |           |   |            |  
|Actual return less expected return on pension and other benefit plan assets                     | 533       |  | 1 592     |   | 369       |   | 2 494      |  
|Experience gains/(losses) arising on pension plan and other benefit plan liabilities            | 51        |  | 27        |   | (47       | ) | 31         |  
|Changes in assumptions underlying the present value of the pension and other benefit            |           |  |           |   |           |   |            |  
|plan liabilities                                                                                | 474       |  | (1 706    | ) | (1 047    | ) | (2 279     | )
|                                                                                                |           |  |           |   |           |   |            |  
|Actuarial gain/(loss)                                                                           | 1 058     |  | (87       | ) | (725      | ) | 246        |  
|Change in unrecognised surplus                                                                  | 142       |  | (41       | ) | 2         |   | 103        |  
|Refund of unrecognised assets                                                                   |          |  | 15        |   |          |   | 15         |  
|                                                                                                |           |  |           |   |           |   |            |  
|Net actuarial gain/(loss) recognised in statement of recognised income and expense (before tax) | 1 200     |  | (113      | ) | (723      | ) | 364        |  
|                                                                                                |           |  |           |   |           |   |            |  



|106 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

---



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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



20 Pensions and similar obligations(continued)

Reconciliation of change in assets and liabilitiesMovements in assets and liabilities
during the year:

|                                | € million |   | € million |   | € million |   | € million   |   | € million   |   | € million   |  
|------------------------------- | --------- | - | --------- | - | --------- | - | ----------- | - | ----------- | - | ----------- | -
|                                | Assets    |   | Assets    |   | Assets    |   | Liabilities |   | Liabilities |   | Liabilities |  
|                                | 2006      |   | 2005      |   | 2004      |   | 2006        |   | 2005        |   | 2004        |  
|                                |           |   |           |   |           |   |             |   |             |   |             |  
|1 January                       | 16 006    |   | 13 419    |   | 12 819    |   | (21 446     | ) | (18 773     | ) | (17 880     | )
|Acquisitions/disposals          | (63       | ) | (3        | ) |          |   | 123         |   | 18          |   | (6          | )
|Current service cost            |          |   |          |   |          |   | (384        | ) | (367        | ) | (344        | )
|Employee contributions          | 14        |   | 19        |   | 32        |   |            |   |            |   |            |  
|Special termination benefits    |          |   |          |   |          |   | (54         | ) | (79         | ) | (135        | )
|Past service costs(b)           |          |   |          |   |          |   | 293         |   | (13         | ) | (13         | )
|Settlements/curtailments        | (17       | ) | (10       | ) | (23       | ) | 76          |   | 105         |   | 85          |  
|Other finance income            | 1 021     |   | 931       |   | 918       |   |            |   |            |   |            |  
|Other finance cost              |          |   |          |   |          |   | (982        | ) | (986        | ) | (976        | )
|Actuarial gain/(loss)           | 533       |   | 1 592     |   | 369       |   | 525         |   | (1 679      | ) | (1 094      | )
|Employer contributions          | 1 091     |   | 836       |   | 786       |   |            |   |            |   |            |  
|Benefit payments                | (1 267    | ) | (1 247    | ) | (1 223    | ) | 1 267       |   | 1 247       |   | 1 223       |  
|Reclassification of benefits(c) | 38        |   | 39        |   | (166      | ) | (32         | ) | (140        | ) | 166         |  
|Currency retranslation          | (78       | ) | 430       |   | (93       | ) | 256         |   | (779        | ) | 201         |  
|                                |           |   |           |   |           |   |             |   |             |   |             |  
|31 December                     | 17 278    |   | 16 006    |   | 13 419    |   | (20 358     | ) | (21 446     | ) | (18 773     | )
|                                |           |   |           |   |           |   |             |   |             |   |             |  

|(b) | The reduction in liabilities in 2006 includes the €266 million reported on the face of the income statement.                                                   
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) | During 2004 some plans changed from defined benefit to defined contribution. During 2005 certain obligations were reclassified as employee benefit obligations.

History of experience gains and losses

|                                                                     | € million |   | € million |    | € million |   
|-------------------------------------------------------------------- | --------- | - | --------- | -- | --------- | --
|                                                                     | 2006      |   | 2005      |    | 2004      |   
|                                                                     |           |   |           |    |           |   
|Actual return less expected return on plan assets (€ million)        | 533       |   | 1 592     |    | 369       |   
|As % of plan assets at beginning of year                             | 3.3       | % | 11.9      | %  | 2.9       | % 
|                                                                     |           |   |           |    |           |   
|Experience gains/(losses) on plan liabilities (€ million)            | 51        |   | 27        |    | (47       | ) 
|As % of present value of plan liabilities at beginning of year       | 0.2       | % | 0.1       | %  | (0.3      | )%
|                                                                     |           |   |           |    |           |   
|Changes in actuarial assumptions underlying the present value of the |           |   |           |    |           |   
|pension
    benefit and other benefit plan liabilities (€ million)   | 474       |   | (1 706    | )  | (1 047    | ) 
|As % of present value of plan liabilities at beginning of year       | 2.2       | % | (9.1      | )% | (5.9      | )%
|                                                                     |           |   |           |    |           |   
|Total actuarial gain/(loss) (€ million)                              | 1 058     |   | (87       | )  | (725      | ) 
|As % of present value of plan liabilities at beginning of year       | 4.9       | % | (0.5      | )% | (4.1      | )%
|                                                                     |           |   |           |    |           |   

US GAAP disclosuresDisclosures required for the reporting
  of pensions and similar obligations under US GAAP are set out in note 34 on
  pages 126 to 130.



|UnileverAnnual Report on Form 20-F 2006 | 107
|--------------------------------------- | ---

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



21 Equity

|                                                                |           |   | Shareholders equity |   |           |   | Total equity |  
|--------------------------------------------------------------- | --------- | - | -------------------- | - | --------- | - | ------------ | -
|                                                                |           |   |                      |   |           |   |              |  
|                                                                | € million |   | € million            |   | € million |   | € million    |  
|                                                                | Called up |   | Share                |   |           |   |              |  
|                                                                | share     |   | premium              |   | Other     |   | Retained     |  
|Consolidated statement of changes in equity                     | capital   |   | account              |   | reserves  |   | profit       |  
|                                                                |           |   |                      |   |           |   |              |  
|1 January 2004                                                  | 642       |   | 1 530                |   | (2 442    | ) | 7 006        |  
|Total recognised income and expense for the year                |          |   |                     |   | 218       |   | 2 156        |  
|Preference dividends                                            |          |   |                     |   |          |   | (28          | )
|Final dividends 2003 on ordinary capital                        |          |   |                     |   |          |   | (1 116       | )
|Interim dividends 2004 on ordinary capital                      |          |   |                     |   |          |   | (603         | )
|(Purchase)/sale/reduction of treasury stock                     |          |   |                     |   | (331      | ) | 7            |  
|Share-based payment credit(a)                                   |          |   |                     |   |          |   | 222          |  
|Dividends paid to minority shareholders                         |          |   |                     |   |          |   |             |  
|Currency retranslation gains/(losses) net of tax                |          |   |                     |   |          |   | 1            |  
|Other movements in equity                                       |          |   |                     |   |          |   | 2            |  
|                                                                |           |   |                      |   |           |   |              |  
|31 December 2004                                                | 642       |   | 1 530                |   | (2 555    | ) | 7 647        |  
|Accounting policy change
       preference shares(b)           | (130      | ) | (1 372               | ) |          |   |             |  
|Accounting policy change
       other financial instruments(b) |          |   |                     |   | (19       | ) | 407          |  
|                                                                |           |   |                      |   |           |   |              |  
|Equity as restated at 1 January 2005                            | 512       |   | 158                  |   | (2 574    | ) | 8 054        |  
|Total recognised income and expense for the year                |          |   |                     |   | 379       |   | 3 825        |  
|Final dividends 2004 on ordinary capital                        |          |   |                     |   |          |   | (1 229       | )
|Interim dividends 2005 on ordinary capital                      |          |   |                     |   |          |   | (638         | )
|Conversion of preference shares                                 |          |   |                     |   | 1 129     |   | (199         | )
|(Purchase)/sale/reduction of treasury stock                     |          |   |                     |   | (1 262    | ) |             |  
|Share-based payment credit(a)                                   |          |   |                     |   |          |   | 186          |  
|Dividends paid to minority shareholders                         |          |   |                     |   |          |   |             |  
|Currency retranslation gains/(losses) net of tax                |          |   | 4                    |   |          |   |             |  
|Other movements in equity                                       |          |   |                     |   |          |   | 16           |  
|                                                                |           |   |                      |   |           |   |              |  
|31 December 2005                                                | 512       |   | 162                  |   | (2 328    | ) | 10 015       |  
|Total recognised income and expense for the year                |          |   |                     |   | (263      | ) | 5 575        |  
|Final dividends 2005 on ordinary capital                        |          |   |                     |   |          |   | (1 269       | )
|Interim dividends 2006 on ordinary capital                      |          |   |                     |   |          |   | (664         | )
|One-off dividend                                                |          |   |                     |   |          |   | (751         | )
|(Purchase)/sale/reduction
      of treasury stock(c)            |          |   |                     |   | 403       |   | (285         | )
|Share-based payment credit(a)                                   |          |   |                     |   |          |   | 111          |  
|Dividends paid to minority shareholders                         |          |   |                     |   |          |   |             |  
|Currency retranslation gains/(losses) net of tax                | (12       | ) | 3                    |   | 14        |   |             |  
|Other movements in equity                                       | (16       | ) |                     |   | 31        |   | (8           | )
|                                                                |           |   |                      |   |           |   |              |  
|31 December 2006                                                | 484       |   | 165                  |   | (2 143    | ) | 12 724       |  
|                                                                |           |   |                      |   |           |   |              |  

|(a) | The share-based payment credit relates to the reversal of the non-cash charge recorded against operating profit in respect of the fair value of share options and awards granted to employees.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | From 1 January 2005, Unilever adopted IAS 32 Financial Instruments: Disclosure and Presentation and IAS 39 Financial Instruments: Recognition and Measurement.                            
|(c) | Includes transfer from treasury stock to retained profit of share settled schemes arising from prior years and differences between exercise and grant price of share options.                 



|108 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

---



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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



22 Share
  capital

|                              | € million |  | € million | 
|----------------------------- | --------- |  | --------- | 
|Called up share capital       | 2006      |  | 2005      | 
|                              |           |  |           | 
|Ordinary share capital of NV  | 274       |  | 290       | 
|Ordinary share capital of PLC | 210       |  | 222       | 
|                              |           |  |           | 
|                              | 484       |  | 512       | 
|                              |           |  |           | 

|                                                                                   |               |  |            |  |            |  |           |  |               |  |               |   |               |  
|---------------------------------------------------------------------------------- | ------------- |  | ---------- |  | ---------- |  | --------- |  | ------------- |  | ------------- | - | ------------- | -
|                                                                                   |               |  |            |  |            |  |           |  |               |  | Issued,       |   | Issued,       |  
|                                                                                   | Number        |  |            |  |            |  | Nominal   |  | Number        |  | called up and |   | called up and |  
|                                                                                   | of shares     |  | Authorised |  | Authorised |  | value     |  | of shares     |  | fully paid    |   | fully paid    |  
|Ordinary share capital                                                             | authorised    |  | 2006       |  | 2005       |  | per share |  | issued        |  | 2006          |   | 2005          |  
|                                                                                   |               |  |            |  |            |  |           |  |               |  |               |   |               |  
|                                                                                   |               |  | € million  |  | € million  |  |           |  |               |  | € million     |   | € million     |  
|                                                                                   |               |  |            |  |            |  |           |  |               |  |               |   |               |  
|NV ordinary shares                                                                 | 3 000 000 000 |  | 480        |  | 508        |  | €0.16     |  | 1 714 727 700 |  | 274           |   | 290           |  
|NV
        ordinary shares (shares numbered
        1 to 2 400  ‘Special Shares) |               |  | 1          |  | 1          |  | €428.57   |  | 2 400         |  | 1             |   | 1             |  
|Internal holdings eliminated                                                       |               |  |            |  |            |  |           |  |               |  |               |   |               |  
|on
    consolidation (€428.57 shares)                                              |               |  |           |  |           |  |           |  |               |  | (1            | ) | (1            | )
|                                                                                   |               |  |            |  |            |  |           |  |               |  |               |   |               |  
|                                                                                   |               |  | 481        |  | 509        |  |           |  |               |  | 274           |   | 290           |  
|                                                                                   |               |  |            |  |            |  |           |  |               |  |               |   |               |  

|                                                                       |               |  |           |  |           |  |          |     |               |     |           |   |           |  
|---------------------------------------------------------------------- | ------------- |  | --------- |  | --------- |  | -------- | --- | ------------- | --- | --------- | - | --------- | -
|                                                                       |               |  | £ million |  | £ million |  |          |     |               |     | £ million |   | £ million |  
|                                                                       |               |  |           |  |           |  |          |     |               |     |           |   |           |  
|PLC ordinary shares                                                    | 4 377 075 492 |  | 136.2     |  | 136.2     |  | 31/9p    |     | 1 310 156 361 |     | 40.8      |   | 40.8      |  
|PLC deferred stock                                                     | 100 000       |  | 0.1       |  | 0.1       |  | £1 stock |     | 100 000       |     | 0.1       |   | 0.1       |  
|Internal
        holding eliminated on consolidation (£1 stock)        |               |  |          |  |          |  |          |     |               |     | (0.1      | ) | (0.1      | )
|                                                                       |               |  |           |  |           |  |          |     |               |     |           |   |           |  
|                                                                       |               |  | 136.3     |  | 136.3     |  |          |     |               |     | 40.8      |   | 40.8      |  
|                                                                       |               |  |           |  |           |  |          |     |               |     |           |   |           |  
|Euro equivalent in millions (at £1.00 = €5.143) (2005: £1.00 = €5.445) |               |  |           |  |           |  |          | 210 |               | 222 |          
|                                                                       |               |  |           |  |           |  |          |     |               |     |          

For information on the rights of shareholders of NV and PLC and the operation of the Equalisation Agreement, see Corporate governance on pages 39 to 40.

At the Annual General Meetings of NV and
  PLC held on 8 May and 9 May 2006 respectively, shareholders approved proposals
  that the NV ordinary shares be split in the ratio 3 to 1 and that the PLC ordinary
  shares be consolidated in the ratio 9 to 20. At the same time, amendments were
  made to NVs Articles of Association to convert into euros the share capital
  amounts previously denominated in Dutch guilders. Following these changes, which
  became effective on 22 May 2006, the nominal value of each NV ordinary share
  is €0.16 and the nominal value of each PLC ordinary share is 31/9p. In the case of the NV ordinary shares, the new nominal
  value per share does not, for reasons of rounding, equate exactly to the equivalent
  value expressed in Dutch guilders. As a result, the reported share capital issued
  at 31 December 2006 is €16 million lower than in 2005, with a corresponding
  amount being included in other reserves (see note 23 on page 110). In the case
  of the PLC ordinary shares, the euro conversion rate is now £1.00 = €5.143.
  As at 31 December 2005 when the NV shares were denominated in Dutch guilders,
  the effective rate of exchange was £1.00 = €5.445. This rate change
  results in a reduction in the euro equivalent of €12 million with a corresponding
  amount being included in other reserves (see note 23 on page 110). A nominal
  dividend of 6% is paid on the deferred stock of PLC, which is not redeemable.

Internal holdingsThe ordinary shares numbered 1 to
  2 400 (inclusive) in NV (Special Shares) and deferred stock of PLC
  are held as to one half of each class by N.V. Elma  a subsidiary of NV
   and one half by United Holdings Limited  a subsidiary of PLC. This
  capital is eliminated on consolidation. It carried the right to nominate persons
  for election as Directors at general meetings of shareholders. At NVs
  AGM held on 8 May 2006 and at PLCs AGM held on 9 May 2006 it was decided
  to abandon this right. Accordingly, NVs and PLCs Articles of Association
  were amended so that for an alteration of the provisions within them relating
  to the unity of management between NV and PLC, prior approval is required from
  meetings of the holders of the NV Special Shares and the PLC Deferred Stock.
  The subsidiaries mentioned above have waived their rights to dividends on their
  ordinary shares in NV.

Share-based compensationThe Group operates a number of share-based
  compensation plans involving options and awards of ordinary shares of NV and
  PLC. Full details of these plans are given in note 29 on pages 117 to 121.



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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



23 Other
  reserves

|                                            | € million |   | € million |   | € million |   | € million |   | € million |   | € million |   | € million |   | € million |   | € million |  
|------------------------------------------- | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | -
|                                            | NV        |   | NV        |   | NV        |   | PLC       |   | PLC       |   | PLC       |   | Total     |   | Total     |   | Total     |  
|                                            | 2006      |   | 2005      |   | 2004      |   | 2006      |   | 2005      |   | 2004      |   | 2006      |   | 2005      |   | 2004      |  
|                                            |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|Fair value reserves                         | 9         |   | (3        | ) | n/a       |   | 7         |   | (2        | ) | n/a       |   | 16        |   | (5        | ) | n/a       |  
|Cash flow hedges                            | 4         |   | (3        | ) | n/a       |   | (3        | ) | (2        | ) | n/a       |   | 1         |   | (5        | ) | n/a       |  
|Available-for-sale financial assets         | 5         |   |          |   | n/a       |   | 10        |   |          |   | n/a       |   | 15        |   |          |   | n/a       |  
|Currency retranslation of group companies   | 318       |   | 548       |   | 160       |   | (19       | ) | 35        |   | 58        |   | 299       |   | 583       |   | 218       |  
|Adjustment on translation of PLCs ordinary |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|capital
              at 31/9p = €0.16      |          |   |          |   |          |   | (150      | ) | (164      | ) | (164      | ) | (150      | ) | (164      | ) | (164      | )
|Capital redemption reserve                  | 16        |   |          |   |          |   | 16        |   | 16        |   | 16        |   | 32        |   | 16        |   | 16        |  
|Book value treasury stock                   | (1 623    | ) | (2 010    | ) | (2 065    | ) | (717      | ) | (748      | ) | (560      | ) | (2 340    | ) | (2 758    | ) | (2 625    | )
|                                            |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|                                            | (1 280    | ) | (1 465    | ) | (1 905    | ) | (863      | ) | (863      | ) | (650      | ) | (2 143    | ) | (2 328    | ) | (2 555    | )
|                                            |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  

|                                             |           |   |           |  
|-------------------------------------------- | --------- | - | --------- | -
|                                             | € million |   | € million |  
|Cash flow hedges  movements during the
year | 2006      |   | 2005      |  
|                                             |           |   |           |  
|1 January                                    | (5        | ) | (19       | )
|Additions                                    | 12        |   | 9         |  
|Transfers to income statement                | (4        | ) | 1         |  
|Transfers to inventories/non-current assets  | (2        | ) | 4         |  
|                                             |           |   |           |  
|31 December                                  | 1         |   | (5        | )
|                                             |           |   |           |  

Unilever acquired 3 010 666 ordinary shares of NV and 3 010 465 ordinary shares of PLC through purchases on the stock exchanges during the year. These shares are held as treasury stock as a separate component of other
reserves. The total number held at 31 December 2006 is 70 319 259 (2005: 74 179 011) NV shares and 64 656 456 (2005: 71 332 301) PLC shares. Of these, 55 514 379 NV shares and 53 100 244 PLC shares were held in connection with share-based compensation plans (see note 29 on
pages 117 to 121).

|                                                                | € million |   | € million |  
|--------------------------------------------------------------- | --------- | - | --------- | -
|Treasury stock  movements during the year                      | 2006      |   | 2005      |  
|                                                                |           |   |           |  
|1 January                                                       | (2 758    | ) | (2 625    | )
|Utilised for preference shares conversion at average book value |          |   | 1 129     |  
|Purchases and other utilisations                                | 418       |   | (1 262    | )
|                                                                |           |   |           |  
|31 December                                                     | (2 340    | ) | (2 758    | )
|                                                                |           |   |           |  

|                                                           |           |   |           |  
|---------------------------------------------------------- | --------- | - | --------- | -
|                                                           | € million |   | € million |  
|Currency retranslation reserve  movements
during the year | 2006      |   | 2005      |  
|                                                           |           |   |           |  
|1 January                                                  | 583       |   | 218       |  
|Currency retranslation during the year                     | 495       |   | 92        |  
|Movement in net investment hedges                          | (779      | ) | 332       |  
|Recycled to income statement                               |          |   | (59       | )
|                                                           |           |   |           |  
|31 December                                                | 299       |   | 583       |  
|                                                           |           |   |           |  



|110 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



24 Retained
  profit

|                                                                          | € million |   | € million |   | € million |   | € million |   | € million |   | € million |   | € million |   | € million |   | € million |  
|------------------------------------------------------------------------- | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | -
|                                                                          | NV        |   | NV        |   | NV        |   | PLC       |   | PLC       |   | PLC       |   | Total     |   | Total     |   | Total     |  
|Movements during the year                                                 | 2006      |   | 2005      |   | 2004      |   | 2006      |   | 2005      |   | 2004      |   | 2006      |   | 2005      |   | 2004      |  
|                                                                          |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|31 December 2004                                                          |           |   | 8 331     |   |           |   |           |   | (684      | ) |           |   |           |   | 7 647     |   |           |  
|Accounting policy change for                                              |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|financial instruments(a)                                                  |           |   | (1 500    | ) |           |   |           |   | 1 907     |   |           |   |           |   | 407       |   |           |  
|                                                                          |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|1 January                                                                 | 8 721     |   | 6 831     |   | 7 321     |   | 1 294     |   | 1 223     |   | (315      | ) | 10 015    |   | 8 054     |   | 7 006     |  
|                                                                          |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|Recognised
        income and expense through retained profit             | 3 727     |   | 3 092     |   | 1 520     |   | 1 848     |   | 733       |   | 636       |   | 5 575     |   | 3 825     |   | 2 156     |  
|Preference dividends(b)                                                   |          |   |          |   | (28       | ) |          |   |          |   |          |   |          |   |          |   | (28       | )
|Final dividends 2003 on ordinary capital                                  |          |   |          |   | (630      | ) |          |   |          |   | (486      | ) |          |   |          |   | (1 116    | )
|Interim dividends 2004 on ordinary capital                                |          |   |          |   | (343      | ) |          |   |          |   | (260      | ) |          |   |          |   | (603      | )
|Final dividends 2004 on ordinary capital                                  |          |   | (710      | ) |          |   |          |   | (519      | ) |          |   |          |   | (1 229    | ) |          |  
|Interim dividends 2005 on ordinary capital                                |          |   | (363      | ) |          |   |          |   | (275      | ) |          |   |          |   | (638      | ) |          |  
|Final dividends 2005 on ordinary capital                                  | (722      | ) |          |   |          |   | (547      | ) |          |   |          |   | (1 269    | ) |          |   |          |  
|Interim dividends 2006 on ordinary capital                                | (379      | ) |          |   |          |   | (285      | ) |          |   |          |   | (664      | ) |          |   |          |  
|One-off dividend                                                          | (428      | ) |          |   |          |   | (323      | ) |          |   |          |   | (751      | ) |          |   |          |  
|Conversion of preference shares                                           |          |   | (199      | ) |          |   |          |   |          |   |          |   |          |   | (199      | ) |          |  
|Utilisation of treasury stock                                             | (217      | ) |          |   | 7         |   | (68       | ) |          |   |          |   | (285      | ) |          |   | 7         |  
|Share-based compensation credit(c)                                        | 70        |   | 132       |   | 152       |   | 41        |   | 54        |   | 70        |   | 111       |   | 186       |   | 222       |  
|Adjustment
        arising from change in structure of group companies(d) | (2 368    | ) | (70       | ) | 332       |   | 2 368     |   | 70        |   | (332      | ) |          |   |          |   |          |  
|Other movements in retained profit                                        |          |   | 8         |   |          |   | (8        | ) | 8         |   | 3         |   | (8        | ) | 16        |   | 3         |  
|                                                                          |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|31 December                                                               | 8 404     |   | 8 721     |   | 8 331     |   | 4 320     |   | 1 294     |   | (684      | ) | 12 724    |   | 10 015    |   | 7 647     |  
|Of which retained by:                                                     |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|Parent companies                                                          | 9 755     |   | 9 463     |   | 7 693     |   | 2 306     |   | 2 145     |   | 1 553     |   | 12 061    |   | 11 608    |   | 9 246     |  
|Other group companies                                                     | (1 294    | ) | (668      | ) | 731       |   | 2 006     |   | (837      | ) | (2 235    | ) | 712       |   | (1 505    | ) | (1 504    | )
|Joint ventures and associates                                             | (57       | ) | (74       | ) | (93       | ) | 8         |   | (14       | ) | (2        | ) | (49       | ) | (88       | ) | (95       | )
|                                                                          |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  
|                                                                          | 8 404     |   | 8 721     |   | 8 331     |   | 4 320     |   | 1 294     |   | (684      | ) | 12 724    |   | 10 015    |   | 7 647     |  
|                                                                          |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |   |           |  

|(a) | Due to the adoption of IAS 32 and IAS
      39 with effect from 1 January 2005, intra-group preference shares are now
      classified as debt instead of equity. The relative ownership of these preference
      shares has resulted in a realignment of balances between NV and PLC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | From 1 January 2005, Unilever adopted
      IAS 32 which requires preference shares that provide for a fixed preference
      dividend to be classified as borrowings and preference dividends to be recognised
      in the income statement. In accordance with the transition rules for IAS
      32, 2004 was not restated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(c) | The share-based compensation credit relates
      to the reversal of the non-cash charge recorded against operating profit
      in respect of the fair value of share options and awards granted to employees.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(d) | As part of the review of Unilever's corporate
      structure, and in the light of the constitutional and operational arrangements
      which enable Unilever N.V. and Unilever PLC to operate as nearly as practicable
      as a single company, the Directors have been authorised to take any action
      necessary or desirable in order to ensure that the ratio of the dividend
      generating capacity of Unilever PLC to that of Unilever N.V. does not differ
      substantially from the ratio of the dividend entitlement of ordinary shareholders
      in Unilever PLC to that of ordinary shareholders in Unilever N.V. Therefore,
      in 2006, shareholdings in the Unilever companies in Czech Republic, Hungary,
      Russia and Turkey, as well as a part of indirect shareholdings in Unilever
      US, have been transferred from Unilever N.V. to Unilever PLC for no consideration.
      In addition, part of a dividend which would otherwise be due from a Unilever
      US intermediate company to a company within the Unilever N.V. part of the
      Group has instead been paid to a company within the Unilever PLC part of
      the Group. Re-organisations of group companies have produced similar types
      of adjustments in previous years.

Cumulative goodwill written off directly to reserves prior to the transition to IFRS on 1 January 2004 was €5 199 million for NV and €2 063 million for PLC.



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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



25 Commitments
  and contingent liabilities

|                                     | € million |  | € million |  | € million |  | € million |  | € million |  | € million | 
|------------------------------------ | --------- |  | --------- |  | --------- |  | --------- |  | --------- |  | --------- | 
|                                     | Future    |  |           |  |           |  | Future    |  |           |  |           | 
|                                     | minimum   |  |           |  |           |  | minimum   |  |           |  |           | 
|                                     | lease     |  | Finance   |  | Present   |  | lease     |  | Finance   |  | Present   | 
|                                     | payments  |  | cost      |  | value     |  | payments  |  | cost      |  | value     | 
|Long-term finance lease commitments  | 2006      |  | 2006      |  | 2006      |  | 2005      |  | 2005      |  | 2005      | 
|                                     |           |  |           |  |           |  |           |  |           |  |           | 
|Buildings(a)                         | 137       |  | 94        |  | 43        |  | 160       |  | 95        |  | 65        | 
|Plant and machinery                  | 159       |  | 15        |  | 144       |  | 170       |  | 18        |  | 152       | 
|                                     |           |  |           |  |           |  |           |  |           |  |           | 
|                                     | 296       |  | 109       |  | 187       |  | 330       |  | 113       |  | 217       | 
|The commitments fall due as follows: |           |  |           |  |           |  |           |  |           |  |           | 
|Within 1 year                        | 71        |  | 10        |  | 61        |  | 75        |  | 11        |  | 64        | 
|After 1 year but within 2 years      | 68        |  | 8         |  | 60        |  | 60        |  | 10        |  | 50        | 
|After 2 years but within 3 years     | 22        |  | 6         |  | 16        |  | 56        |  | 6         |  | 50        | 
|After 3 years but within 4 years     | 17        |  | 6         |  | 11        |  | 14        |  | 6         |  | 8         | 
|After 4 years but within 5 years     | 10        |  | 5         |  | 5         |  | 13        |  | 6         |  | 7         | 
|After 5 years                        | 108       |  | 74        |  | 34        |  | 112       |  | 74        |  | 38        | 
|                                     |           |  |           |  |           |  |           |  |           |  |           | 
|                                     | 296       |  | 109       |  | 187       |  | 330       |  | 113       |  | 217       | 
|                                     |           |  |           |  |           |  |           |  |           |  |           | 

|(a) | All leased land is classified as operating leases.
|--- | --------------------------------------------------
|   

|                                      | € million |  | € million | 
|------------------------------------- | --------- |  | --------- | 
|Long-term operating lease commitments | 2006      |  | 2005      | 
|                                      |           |  |           | 
|Land and buildings                    | 1 257     |  | 1 472     | 
|Plant and machinery                   | 360       |  | 459       | 
|                                      |           |  |           | 
|                                      | 1 617     |  | 1 931     | 
|                                      |           |  |           | 

|                                                          |           |  |           |  |           |  |           | 
|--------------------------------------------------------- | --------- |  | --------- |  | --------- |  | --------- | 
|                                                          | € million |  | € million |  | € million |  | € million | 
|                                                          |           |  |           |  | Other     |  | Other     | 
|                                                          | Operating |  | Operating |  | commit-   |  | commit-   | 
|                                                          | leases    |  | leases    |  | ments     |  | ments     | 
|Operating lease and other commitments fall due as follows | 2006      |  | 2005      |  | 2006      |  | 2005      | 
|                                                          |           |  |           |  |           |  |           | 
|Within 1 year                                             | 342       |  | 339       |  | 471       |  | 365       | 
|After 1 year but within 2 years                           | 294       |  | 297       |  | 261       |  | 323       | 
|After 2 years but within 3 years                          | 243       |  | 267       |  | 192       |  | 62        | 
|After 3 years but within 4 years                          | 182       |  | 222       |  | 175       |  | 40        | 
|After 4 years but within 5 years                          | 156       |  | 209       |  | 153       |  | 23        | 
|After 5 years                                             | 400       |  | 597       |  | 528       |  | 18        | 
|                                                          |           |  |           |  |           |  |           | 
|                                                          | 1 617     |  | 1 931     |  | 1 780     |  | 831       | 
|                                                          |           |  |           |  |           |  |           | 

The Group has sublet part of the leased properties
  under operating leases. Future minimum sublease payments of €16 million
are expected to be received.

Other commitments principally comprise commitments
  under contracts to purchase materials and services. They do not include commitments
  for capital expenditure, which are reported in note 10 on page 90. The increase
  in other commitments as at 31 December 2006 is due to outsourcing initiatives.

Contingent liabilities are either possible
  obligations that will probably not require a transfer of economic benefits,
  or present obligations that may, but probably will not, require a transfer of
  economic benefits. It is not appropriate to make provisions for contingent liabilities,
  but there is a chance that they will turn into an obligation in the future.
  The Group believes that incurred losses in any of these matters would not have
  a material effect.

Examples of the first type of contingent
  liability arise in respect of litigation against group companies, investigations
  by competition, regulatory and fiscal authorities and obligations arising under
  environmental legislation. The estimated total of such contingent liabilities
  at 31 December 2006 was some €439 million (2005: €349 million).
  This includes amounts relating to some of the legal proceedings mentioned on
  page 8.

Examples of the second type of contingent
  liability are guarantees issued by group companies. At 31 December 2006 these
  amounted to some €105 million (2005: €113 million). Included in
  this are discounted trade bills with a value of €23 million (2005: €25
  million). We believe that any loss arising in connection with these would not
  have a material effect on the Groups financial condition or results of
  operations. Guarantees given by parent or group companies that relate to liabilities
  already included in these consolidated accounts are excluded from this total.

The total value of guarantees which arose
  or were revised in 2006 was €41 million (2005: €39 million). The
  fair value of guarantees is not material in either 2005 or 2006.



|112 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



26 Acquisitions
  and disposals

AcquisitionsDuring 2006 we purchased minority
  interests in subsidiary companies in Greece and Algeria, trademarks in Czech
  Republic, distribution in Tunisia and Vashisti business in India. Also an additional
  investment into Langholm Capital Partners Fund was made and classified as an
  acquisition of associates (see note 11 on page 92).

The following table sets out the effect of
  acquisitions of group companies in 2006, 2005 and 2004 on the consolidated balance
  sheet. The fair values currently established for all acquisitions made in 2006
  are provisional. The goodwill arising on these transactions has been capitalised
  and is subject to an annual review for impairment (or more frequently if necessary)
  in accordance with our accounting policies as set out in note 1 on page 74.
  Any impairment is charged to the income statement as it arises. Detailed information
  relating to goodwill is given in note 9 on pages 88 and 89.

|                                 | € million |  | € million |  | €    | 
|-------------------------------- | --------- |  | --------- |  | ---- | 
|Acquisitions                     | 2006      |  | 2005      |  | 2004 | 
|                                 |           |  |           |  |      | 
|Net assets acquired              | 42        |  | 7         |  | 33   | 
|Goodwill arising in subsidiaries | 60        |  | 13        |  | 7    | 
|                                 |           |  |           |  |      | 
|Consideration                    | 102       |  | 20        |  | 40   | 
|                                 |           |  |           |  |      | 

Consideration consisted wholly of cash.

DisposalsThe results of disposed businesses
  are included in the consolidated accounts up to their date of disposal.

On 3 November 2006, Unilever announced that
  it had reached a final agreement with Permira Funds to sell the majority of
  its European frozen foods business for €1.7 billion. The Unilever businesses
  being sold in this transaction include the frozen foods operations in Austria,
  Belgium, France, Germany, Ireland, Netherlands, Portugal and United Kingdom.

Other disposals in 2006 wereMora
  in the Netherlands and Belgium, Finesse in the US, Canada and Sweden, Friol
  in Italy and Nihar and tea plantations in India.

The principal disposals in 2005 were UCI
  across the world, Stanton Oil in UK and Ireland, Dextro in various countries
  in Europe, Opal in Peru, Karo and Knax in Mexico, spreads and cooking products
  in Australia and in New Zealand, Crispa, Mentadent, Marmite, Bovril and Maizena
  in South Africa, frozen pizza in Austria, Biopon in Hungary and tea plantations
  in India.

In March 2005 Unilever completed the restructuring
  of its Portuguese foods business. Before the restructuring Unilever Portugal
  held an interest in FIMA/VG  Distribuição de Produtos Alimentares,
  Lda. (FIMA) foods business, a joint venture with Jerónimo Martins Group,
  in addition to its wholly owned Bestfoods business acquired in 2000. As a result
  of the transaction the two foods businesses  FIMA and Unilever Bestfoods
  Portugal  were unified and the joint venture stakes were re-balanced so
  that Unilever hold 49% of the combined foods business and Jerónimo Martins
  Group 51%. During the year, Unilever signed an agreement with Jerónimo
  Martins to restructure the ownership of the Portuguese operations effective
  1 January 2007. Further information is provided in note 33 on page 123.

In 2004, the principal disposals were Puget
  oils in France, the frozen pizza and baguette businesses in various countries
  in Europe, Rit, Niagara, Final Touch and Sunlight in North America, Capullo,
  Mazola and Inca in Chile and Mexico and Dalda oils in Pakistan. Our chemicals
  business in India (Hindustan Lever Chemicals) was merged with Tata Chemicals.
  Various other smaller brands were also sold as part of our Path to Growth strategy.

|                                                                  | € million |   | € million |   | €    |  
|----------------------------------------------------------------- | --------- | - | --------- | - | ---- | -
|Disposals                                                         | 2006      |   | 2005      |   | 2004 |  
|                                                                  |           |   |           |   |      |  
|Goodwill and intangible assets                                    | 1         |   | 150       |   | 23   |  
|Other non-current assets                                          | 242       |   | 78        |   | 52   |  
|Current assets                                                    | 354       |   | 207       |   | 145  |  
|Trade creditors and other payables                                | (157      | ) | (106      | ) | (34  | )
|Provisions for liabilities and charges                            | (91       | ) | (15       | ) | (9   | )
|Minority interest                                                 |          |   | (1        | ) | (25  | )
|                                                                  |           |   |           |   |      |  
|Net assets sold                                                   | 349       |   | 313       |   | 152  |  
|(Gain)/loss on recycling of currency retranslation on disposal    |          |   | (5        | ) | 2    |  
|Profit on sale attributable to Unilever                           | 1 528     |   | 655       |   | 338  |  
|                                                                  |           |   |           |   |      |  
|Consideration                                                     | 1 877     |   | 963       |   | 492  |  
|Cash                                                              | 1 870     |   | 845       |   | 417  |  
|Cash balances of businesses sold                                  |          |   | (17       | ) | (4   | )
|Financial assets, cash deposits and borrowings of businesses sold | (5        | ) | 8         |   | 39   |  
|Non-cash items and deferred consideration                         | 12        |   | 26        |   | 40   |  
|Payment received in prior year                                    |          |   | 101       |   |     |  
|                                                                  |           |   |           |   |      |  



|UnileverAnnual Report on Form 20-F 2006 | 113
|--------------------------------------- | ---

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|                                       | 
|-------------------------------------- | 
|Financial Statements
      (continued) | 
|                                       | 

|Notes to the consolidated
      accounts Unilever Group
|-------------------------------------------------------
|                                                       



27 Assets
  held for sale and discontinued operations

Following the announcement on 9 February 2006
  of the intention to dispose of the majority of Unilevers European frozen
  foods businesses, the results of these businesses have been presented as discontinued
  operations. The sale of these businesses to Permira Funds was completed on 3
  November 2006. Also included under this heading are the results of Unilever
  Cosmetics International (UCI) following the sale of this business to Coty Inc.
  in July 2005.

An analysis of the result of discontinued operations,
  and the result recognised on disposal of discontinued operations is as follows:

|                                                         | €
      million |   | € million   |   | € million   |  
|-------------------------------------------------------- | --------------- | - | ----------- | - | ----------- | -
|Income
      statement of discontinued operations        | 2006            |   | 2005        |   | 2004        |  
|                                                         |                 |   |             |   |             |  
|Turnover                                                 | 1
      033     |   | 1
      501 |   | 1
      940 |  
|Expenses                                                 | (863            | ) | (1 253      | ) | (1 648      | )
|                                                         |                 |   |             |   |             |  
|Operating profit                                         | 170             |   | 248         |   | 292         |  
|Net finance
      costs                                  | (3              | ) | (6          | ) | (7          | )
|                                                         |                 |   |             |   |             |  
|Profit before
      tax                                  | 167             |   | 242         |   | 285         |  
|Taxation                                                 | (25             | ) | (72         | ) | (98         | )
|                                                         |                 |   |             |   |             |  
|Profit after
      taxation                              | 142             |   | 170         |   | 187         |  
|Gain/(loss)
      on disposal of discontinued operations | 1 349           |   | 513         |   | 39          |  
|Recycling of
      currency retranslation upon disposal  |                |   | 5           |   |            |  
|Taxation arising
      on disposal                       | (161            | ) | (48         | ) | (13         | )
|                                                         |                 |   |             |   |             |  
|Gain/(loss)
      after taxation on disposal             | 1 188           |   | 470         |   | 26          |  
|                                                         |                 |   |             |   |             |  
|Net profit
      from discontinued operations            | 1 330           |   | 640         |   | 213         |  
|                                                         |                 |   |             |   |             |  

|                                                  | € million |  | € million |  | € million | 
|------------------------------------------------- | --------- |  | --------- |  | --------- | 
|Segment
      analysis of discontinued operations | 2006      |  | 2005      |  | 2004      | 
|                                                  |           |  |           |  |           | 
|Turnover                                          |           |  |           |  |           | 
|Europe                                            | 1 033     |  | 1 397     |  | 1 702     | 
|The Americas                                      |          |  | 102       |  | 231       | 
|Asia Africa                                       |          |  | 2         |  | 7         | 
|                                                  |           |  |           |  |           | 
|                                                  | 1 033     |  | 1 501     |  | 1 940     | 
|                                                  |           |  |           |  |           | 
|Foods                                             | 1 033     |  | 1 271     |  | 1 398     | 
|Personal care                                     |          |  | 230       |  | 542       | 
|                                                  |           |  |           |  |           | 
|                                                  | 1 033     |  | 1 501     |  | 1 940     | 
|                                                  |           |  |           |  |           | 
|Operating profit                                  |           |  |           |  |           | 
|Europe                                            | 170       |  | 227       |  | 241       | 
|The Americas                                      |          |  | 20        |  | 47        | 
|Asia Africa                                       |          |  | 1         |  | 4         | 
|                                                  |           |  |           |  |           | 
|                                                  | 170       |  | 248       |  | 292       | 
|                                                  |           |  |           |  |           | 
|Foods                                             | 164       |  | 226       |  | 219       | 
|Personal care                                     | 6         |  | 22        |  | 73        | 
|                                                  |           |  |           |  |           | 
|                                                  | 170       |  | 248       |  | 292       | 
|                                                  |           |  |           |  |           | 
|                                                  |           |  |           |  |           | 

|                                                             | € million |   | € million |   | € million |  
|------------------------------------------------------------ | --------- | - | --------- | - | --------- | -
|Summary
      cash flow statement of discontinued operations | 2006      |   | 2005      |   | 2004      |  
|                                                             |           |   |           |   |           |  
|Net cash flow from/(used in)
      operating activities      | 79        |   | 62        |   | 314       |  
|Net cash flow from/(used in)
      investing activities      | 1 618     |   | 621       |   | 44        |  
|Net cash flow from/(used in)
      financing activities      | (1        | ) | (4        | ) | (5        | )
|                                                             |           |   |           |   |           |  
|Net increase/(decrease) in
      cash and cash equivalents   | 1 696     |   | 679       |   | 353       |  
|                                                             |           |   |           |   |           |  



|114 | UnileverAnnual Report on Form 20-F 2006
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| |                                       
| | --------------------------------------
| | Financial
      Statements (continued)
| |                                       

|Notes to the consolidated
      accounts Unilever Group
|-------------------------------------------------------
|                                                       



27 Assets held for sale and discontinued operations(continued)

Various non-current assets were held for sale at the year end, including a number of other production and distribution facilities.

|                                         | € million |  | € million | 
|---------------------------------------- | --------- |  | --------- | 
|Assets
      classified as held for sale | 2006      |  | 2005      | 
|                                         |           |  |           | 
|Disposal groups held for
      sale      |           |  |           | 
|Goodwill                                 |          |  |          | 
|Intangible assets                        |          |  |          | 
|Property, plant and equipment            |          |  | 42        | 
|Biological assets                        |          |  | 21        | 
|Other non-current investments            |          |  |          | 
|Inventories                              |          |  | 18        | 
|Trade and other receivables              |          |  | 6         | 
|Cash and cash equivalents                |          |  | 1         | 
|                                         |           |  |           | 
|                                         |          |  | 88        | 
|                                         |           |  |           | 
|Non-current assets held
      for sale   |           |  |           | 
|Property, plant and equipment            | 14        |  | 129       | 
|                                         |           |  |           | 
|                                         | 14        |  | 217       | 
|                                         |           |  |           | 

|                                                                        | € million |  | € million |  
|----------------------------------------------------------------------- | --------- |  | --------- | -
|Liabilities
      classified as held for sale (part of disposal groups) | 2006      |  | 2005      |  
|                                                                        |           |  |           |  
|Trade payables and other liabilities                                    |          |  | (16       | )
|Restructuring and other provisions                                      |          |  |          |  
|Pension liability for unfunded
      schemes                            |          |  | (1        | )
|Deferred taxation                                                       |          |  | (9        | )
|                                                                        |           |  |           |  
|                                                                        |          |  | (26       | )
|                                                                        |           |  |           |  

Total assets at 31 December 2006 are included
  in the geographical segments as follows: Europe €9 million; The Americas
  €4 million; and Asia Africa €1 million.



|UnileverAnnual Report on Form 20-F 2006 | 115
|--------------------------------------- | ---

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|                                       | 
|-------------------------------------- | 
|Financial Statements
      (continued) | 
|                                       | 

|Notes to the consolidated
      accounts Unilever Group
|-------------------------------------------------------
|                                                       



28 Reconciliation
  of net profit to cash flow from operating activities

|                                                                                                     | € million |   | € million |   | € million |  
|---------------------------------------------------------------------------------------------------- | --------- | - | --------- | - | --------- | -
|Cash flow
      from operating activities                                                            | 2006      |   | 2005      |   | 2004      |  
|                                                                                                     |           |   |           |   |           |  
|Net profit                                                                                           | 5 015     |   | 3 975     |   | 2 941     |  
|Taxation                                                                                             | 1 332     |   | 1 301     |   | 836       |  
|Share of net profit of joint
      ventures/associates and other income from non-current investments | (144      | ) | (55       | ) | (95       | )
|Net finance costs                                                                                    | 725       |   | 618       |   | 631       |  
|                                                                                                     |           |   |           |   |           |  
|Finance
      income                                                                                 | (138      | ) | (130      | ) | (145      | )
|Finance
      cost                                                                                   | 602       |   | 693       |   | 717       |  
|Preference
      shares provision                                                                    | 300       |   |          |   |          |  
|Pensions
      and similar obligations                                                               | (39       | ) | 55        |   | 59        |  
|                                                                                                     |           |   |           |   |           |  
|Depreciation, amortisation
      and impairment                                                      | 982       |   | 1 274     |   | 2 063     |  
|Changes in working capital                                                                           | 87        |   | 193       |   | 547       |  
|                                                                                                     |           |   |           |   |           |  
|Inventories                                                                                          | (156      | ) | (153      | ) | 221       |  
|Trade
      and other current receivables                                                            | (172      | ) | (36       | ) | 298       |  
|Trade
      payables and other current liabilities                                                   | 415       |   | 382       |   | 28        |  
|                                                                                                     |           |   |           |   |           |  
|Pensions and similar provisions
      less payments                                                  | (1 038    | ) | (532      | ) | (472      | )
|Provisions less payments                                                                             | 107       |   | (230      | ) | 574       |  
|Elimination of (profits)/losses
      on disposals                                                   | (1 620    | ) | (789      | ) | (308      | )
|Non-cash charge for share-based
      compensation                                                   | 120       |   | 192       |   | 218       |  
|Other adjustments                                                                                    | 8         |   | (23       | ) | (10       | )
|                                                                                                     |           |   |           |   |           |  
|Cash flow from operating activities                                                                  | 5 574     |   | 5 924     |   | 6 925     |  
|                                                                                                     |           |   |           |   |           |  

The cash flows of pension funds (other than contributions and other direct payments made by the Group in respect of pensions and similar obligations) are not included in the Group cash flow statement.

Major non-cash transactionsDuring 2006 the Group has taken a
  provision of €300 million for possible compensation payments relating
  to the 2005 conversion of preference shares, issued by Unilever N.V. in 1999.

During 2006 the Group entered into new finance lease arrangements in respect of equipment with a capital value at inception of the lease of €51 million (2005: €49 million).

On 15 February 2005 €1 129 million of
  treasury stock was used in the conversion of the €0.05 preference shares
  into ordinary NV shares.



|116 | UnileverAnnual Report on Form 20-F 2006
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| |                                       
| | --------------------------------------
| | Financial
      Statements (continued)
| |                                       

|Notes to the consolidated
      accounts Unilever Group
|-------------------------------------------------------
|                                                       



29 Share-based
  compensation plans

As at 31 December 2006, the Group had a number of share-based compensation plans:

(i) All-Employee Share
  Option PlansLocal All-Employee Share Option Plans
  have been set up in 15 countries to enhance employee involvement with Unilever
  and its performance by providing a potential financial benefit linked to the
  Unilever share price. There are no individual performance targets to be met.
  The plans permit participation by all permanent employees in the country where
  the relevant plan applies.

(ii) Executive Option
  PlansThe Executive Option Plans were introduced
  in 1985 to reward key employees throughout the world for their contribution
  to the enhancement of the Groups longer-term future and their commitment
  to the Group over a sustained period. The grants were dependent on performance
  of the Group and the individual.

(iii) Global Performance
  Share Plan (GPSP)Introduced in 2005, under this plan
  managers can be awarded conditional shares which will vest three years later
  at a level between 0% and 150% - 200% depending on Unilevers achievement
  of set targets for Underlying Sales Growth and Ungeared Free Cash Flow over
  the three-year performance period.

(iv) TSR Long-Term Incentive
  PlanThis plan was introduced in 2001 and,
  depending on the TSR ranking (see page 27) of Unilever in comparison with its
  peer group, it will potentially award top executives on the vesting date three
  years later with between 0% and 200% of the original conditional award.

(v) North America Performance
  Share ProgrammeA long-term incentive plan for North
  American managers, awarding Unilever shares if company targets are met over
  a three-year period.

(vi) Other plansThese comprise a Share Matching Plan,
  a Restricted Share Plan, and a cash-settled share-based retention plan.

Unilever will not grant share options in total in respect of Executive Option Plans for more than 5% of its issued ordinary capital, and for all Plans together, for more than 10% of its issued ordinary capital. The
Board does not apportion these limits to each plan separately.

In recent years we have met the obligations under our share option and award plans by purchasing shares in advance and transferring them, in return for the exercise price, to Directors and employees as the options are
exercised or the awards vest.

The numbers in this note include those for Executive Directors shown in the report of the Remuneration Committee on pages 49 to 62 and those for key management personnel shown in note 31 on page 122. No awards were
made to Executive Directors in 2004, 2005 and 2006 under the North America Performance Share Programme, the Restricted Share Plan or the cash-settled share-based retention plan. Non-Executive Directors do not participate in any of the share-based
compensation plans.

The economic fair value of the awards is calculated using an option pricing model (usually an adjusted Black-Scholes or multinomial model) and the resulting cost is recognised as remuneration cost amortised over the
vesting period of the grant. The actual remuneration costs charged in each period is shown below, and relates almost wholly to equity settled plans:

|                                                | € million |   | € million |   | € million |  
|----------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                                | 2006      |   | 2005      |   | 2004      |  
|                                                |           |   |           |   |           |  
|All-Employee Share Option Plans                 | (12       | ) | (13       | ) | (17       | )
|Executive Option Plans                          | (29       | ) | (63       | ) | (105      | )
|Global Performance Share Plan                   | (17       | ) | (15       | ) |          |  
|TSR Long-Term Incentive Plan                    | (9        | ) | (10       | ) | (9        | )
|North America Performance Share
      Programme | (31       | ) | (63       | ) | (64       | )
|Other Plans                                     | (22       | ) | (28       | ) | (23       | )
|                                                |           |   |           |   |           |  
|                                                | (120      | ) | (192      | ) | (218      | )
|                                                |           |   |           |   |           |  

Disclosures, including a description of the method and significant assumptions used to estimate the fair values of options and the weighted average information, are given below for each type of plan, on a combined
basis.

In the tables for each plan or group of plans,
  option or award valuations are given on the basis of the weighted average of
  options or awards granted during each period. For plans involving options, the
  fair value per option is estimated using the Black-Scholes option pricing method.
  The expected option terms are based on historic data. Figures for expected volatility
  are set with regard to historic volatility over the last six years. The expected
  dividend yield is based on the dividend yield in the year of grant. Forfeiture
  rates are set annually with regard to historic forfeiture rates.



|UnileverAnnual Report on Form 20-F 2006 | 117
|--------------------------------------- | ---

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|                                       | 
|-------------------------------------- | 
|Financial Statements
      (continued) | 
|                                       | 

|Notes to the consolidated
      accounts Unilever Group
|-------------------------------------------------------
|                                                       



29 Share-based compensation plans(continued)

(i) All-Employee Share Option
  PlansUnilever has All-Employee Share Option
  Plans in 15 countries: Austria, Belgium, Denmark, Finland, France, Germany,
  Ireland, Italy, the Netherlands, Portugal, Spain, Sweden and Switzerland, and
  with a share save element in South Africa and the United Kingdom.

The vesting periods range between three and
  five years (Netherlands nil) and the maximum term is five years.

A summary of the status of the All-Employee
  Plans as at 31 December 2006, 2005 and 2004 and changes during the years ended
  on these dates is presented below:

|                           |            |   | 2006     |  |            |   | 2005     |  |            |   | 2004     | 
|-------------------------- | ---------- | - | -------- |  | ---------- | - | -------- |  | ---------- | - | -------- | 
|                           |            |   | Weighted |  |            |   | Weighted |  |            |   | Weighted | 
|                           |            |   | average  |  |            |   | average  |  |            |   | average  | 
|                           | Number of  |   | exercise |  | Number of  |   | exercise |  | Number of  |   | exercise | 
|                           | options    |   | price    |  | options    |   | price    |  | options    |   | price    | 
|                           |            |   |          |  |            |   |          |  |            |   |          | 
|Outstanding at 1 January   | 20 467 554 |   | € 19.11  |  | 22 155 623 |   | € 18.77  |  | 21 564 274 |   | € 18.71  | 
|Granted                    | 4 356 278  |   | € 17.65  |  | 4 884 012  |   | € 17.62  |  | 4 830 401  |   | € 17.79  | 
|Exercised                  | (1 921 936 | ) | € 17.32  |  | (3 077 008 | ) | € 15.59  |  | (563 445   | ) | € 14.21  | 
|Forfeited                  | (1 683 941 | ) | € 19.18  |  | (1 967 127 | ) | € 18.91  |  | (2 150 074 | ) | € 18.22  | 
|Expired                    | (3 224 609 | ) | € 21.35  |  | (1 527 946 | ) | € 17.93  |  | (1 525 533 | ) | € 19.12  | 
|                           |            |   |          |  |            |   |          |  |            |   |          | 
|Outstanding at 31 December | 17 993 346 |   | € 18.54  |  | 20 467 554 |   | € 19.02  |  | 22 155 623 |   | € 18.64  | 
|                           |            |   |          |  |            |   |          |  |            |   |          | 
|Exercisable at 31 December | 6 484 654  |   | € 19.66  |  | 6 819 376  |   | € 20.88  |  | 5 988 657  |   | € 19.71  | 
|                           |            |   |          |  |            |   |          |  |            |   |          | 

The weighted average market price of the shares
  at the time of exercise was €19.92 (2005: €18.34; 2004: €17.12)
  . As at 1 January 2006 there were 13 648 178 non-vested options at a weighted
  average fair value of €3.59. As at 31 December 2006 there were 11 508
  692 non-vested options at a weighted average fair value of €3.30. During
  2006 there were 5 132 333 options vested at a weighted average fair value of
  €3.83.

|                              | 2006      |  | 2005      |  | 2004      | 
|----------------------------- | --------- |  | --------- |  | --------- | 
|                              |           |  |           |  |           | 
|Option value information      |           |  |           |  |           | 
|Fair value per option         | € 3.10    |  | € 3.01    |  | € 3.18    | 
|Valuation assumptions:        |           |  |           |  |           | 
|Expected
      option term    | 3.5 years |  | 3.5 years |  | 3.4 years | 
|Expected
      volatility     | 27.5%     |  | 27.5%     |  | 27.5%     | 
|Expected
      dividend yield | 3.8%      |  | 3.6%      |  | 3.3%      | 
|Risk-free interest rate       | 3.8%      |  | 2.9%      |  | 3.5%      | 
|                              |           |  |           |  |           | 

The exercise prices and remaining life of the
  All-Employee Option Plans as at 31 December 2006 are as follows:

|                |                  |  |                   |  | Options outstanding |  |                  |  | Options exercisable | 
|--------------- | ---------------- |  | ----------------- |  | ------------------- |  | ---------------- |  | ------------------- | 
|                |                  |  |                   |  |                     |  |                  |  |                     | 
|                | Number           |  | Weighted          |  |                     |  | Number           |  |                     | 
|Range of        | outstanding at   |  | average remaining |  | Weighted average    |  | exercisable at   |  | Weighted average    | 
|exercise prices | 31 December 2006 |  | contractual life  |  | exercise price      |  | 31 December 2006 |  | exercise price      | 
|                |                  |  |                   |  |                     |  |                  |  |                     | 
|€17.00  €23.34 | 17 993 346       |  | 3 years           |  | €18.54              |  | 6 484 654        |  | €19.66              | 
|                |                  |  |                   |  |                     |  |                  |  |                     | 



|118 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes
    to the consolidated accountsUnilever Group
|----------------------------------------------------
|                                                    



29 Share-based compensation plans(continued)

(ii) Executive Option PlansUnder the Executive Option
  Plans options are granted to key employees of the Group on a discretionary basis.
  The exercise price is the market price at the date of grant. Since the introduction
  of the Global Performance Share Plan in 2005, it is the intention to make no
  further grants under the Executive Option Plans, except for a few premium option
  grants which result from prior commitments. The plans are made up of the following:

NV Executive Option Plan and PLC Executive
  Option PlanThese plans provide for the granting
  of options to purchase shares of Unilever N.V. and of Unilever PLC, at a price
  not lower than the market price on the day the options were granted. These options
  become exercisable after a three-year period from the date of grant. The options
  have a maximum term of ten years.

North America Executive Stock Option ProgrammeThis programme is covered by the
  Unilever North America 2002 Omnibus Equity Compensation Plan and provides for
  the granting of options to purchase a maximum of 121.5 million shares in Unilever
  N.V. of the New York Registry, and 117.9 million shares of Unilever PLC, at
  a price not lower than the market value on the day the options are granted.
  These options become exercisable over a three-year period from the date of grant
  and have a maximum term of ten years.

Managers working in India can participate
  in an Executive Option Plan relating to Hindustan Lever Limiteds shares.
  As these are neither NV nor PLC shares, no figures for this plan are disclosed
  in this note, but the fair value costs for 2006 €1 million (2005: €2
  million; 2004: €3 million) and are included in the costs of Executive
  Option Plans on page 117.

A summary of the status of the Executive
  Option Plans as at 31 December 2006, 2005 and 2004 and changes during the years
  ended on these dates is presented below:

|                           |             |   | 2006     |  |             |   | 2005     |  |             |   | 2004     | 
|-------------------------- | ----------- | - | -------- |  | ----------- | - | -------- |  | ----------- | - | -------- | 
|                           |             |   | Weighted |  |             |   | Weighted |  |             |   | Weighted | 
|                           |             |   | average  |  |             |   | average  |  |             |   | average  | 
|                           | Number of   |   | exercise |  | Number of   |   | exercise |  | Number of   |   | exercise | 
|                           | options     |   | price    |  | options     |   | price    |  | options     |   | price    | 
|                           |             |   |          |  |             |   |          |  |             |   |          | 
|Outstanding at 1 January   | 94 304 917  |   | €18.16   |  | 106 817 066 |   | €18.18   |  | 101 146 875 |   | €17.45   | 
|Granted                    |            |   |         |  | 994 780     |   | €17.07   |  | 16 785 813  |   | €17.03   | 
|Exercised                  | (12 458 411 | ) | €16.80   |  | (6 387 147  | ) | €15.34   |  | (5 079 787  | ) | €12.41   | 
|Forfeited                  | (3 487 375  | ) | €19.76   |  | (7 078 325  | ) | €19.19   |  | (6 035 835  | ) | €18.34   | 
|Expired                    | (55 912     | ) | €13.87   |  | (41 457     | ) | €18.00   |  |            |   |         | 
|                           |             |   |          |  |             |   |          |  |             |   |          | 
|Outstanding at 31 December | 78 303 219  |   | €18.31   |  | 94 304 917  |   | €18.29   |  | 106 817 066 |   | €17.57   | 
|                           |             |   |          |  |             |   |          |  |             |   |          | 
|Exercisable at 31 December | 64 704 677  |   | €18.46   |  | 59 766 857  |   | €18.39   |  | 49 223 513  |   | €16.54   | 
|                           |             |   |          |  |             |   |          |  |             |   |          | 

The weighted average market price of the
  shares at the time of exercise was €19.64 (2005: €18.82; 2004:€17.13).
  As at 1 January 2006 there were 34 538 060 non-vested options at a weighted
  average fair value of €4.13. As at 31 December 2006 there were 13 598
  542 non-vested options at a weighted average fair value of €3.82. During
  2006 21 234 947 options vested at a weighted average fair value of €4.32.

|                         | 2006 |  | 2005       |  | 2004       | 
|------------------------ | ---- |  | ---------- |  | ---------- | 
|                         |      |  |            |  |            | 
|Option value information |      |  |            |  |            | 
|Fair value per option    |     |  | €3.67      |  | €3.72      | 
|Valuation assumptions:   |      |  |            |  |            | 
|Expected option term     |     |  | 6.0 years  |  | 5.9 years  | 
|Expected volatility      |     |  | 27.5
    % |  | 27.5
    % | 
|Expected dividend yield  |     |  | 3.8
    %  |  | 3.4
    %  | 
|Risk-free interest rate  |     |  | 4.0
    %  |  | 3.7
    %  | 
|                         |      |  |            |  |            | 

The exercise prices and remaining life of
  the Executive Option Plans as at 31 December 2006 are as follows:

|                      |                  |                   | Options outstanding |  |                       | Options exercisable | 
|--------------------- | ---------------- | ----------------- | ------------------- |  | --------------------- | ------------------- | 
|                      |                  |                   |                     |  |                       |                     | 
|                      | Number           | Weighted          |                     |  |                       |                     | 
|Range of              | outstanding at   | average remaining | Weighted average    |  | Number exercisable at | Weighted average    | 
|exercise prices       | 31 December 2006 | contractual life  | exercise price      |  | 31 December 2006      | exercise price      | 
|                      |                  |                   |                     |  |                       |                     | 
|€8.58
       €11.65  | 1 165 006        | 4 years           | €11.51              |  | 1 165 006             | €11.51              | 
|€12.34
       €16.91 | 16 001
      431 | 5 years           | €15.10              |  | 14 608
      402      | €14.95              | 
|€17.19
       €24.66 | 61 136
      782 | 5 years           | €19.28              |  | 48 931
      269      | €19.68              | 
|                      |                  |                   |                     |  |                       |                     | 



|UnileverAnnual Report on Form 20-F 2006 | 119
|--------------------------------------- | ---

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 

|                                                      
|------------------------------------------------------
|Notes
      to the consolidated accountsUnilever Group
|                                                      



29 Share-based compensation plans(continued)

(iii) Global Performance Share PlanThe GPSP was introduced in 2005.
  Under this plan, managers can be awarded conditional shares which will vest
  three years later at a level between 0% and 150% (for middle management) or
  200% (for higher executives) depending on Unilevers achievement of set
  targets for Underlying Sales Growth and Free Cash Flow over the three-year performance
  period. The amount to be paid by participants to obtain the shares at vesting
  is zero.

A summary of the status of the GPSP as at
  31 December 2006 and 2005 and changes during the year is presented below:

|                           | 2006      |   | 2005      |  
|-------------------------- | --------- | - | --------- | -
|                           | Number of |   | Number of |  
|                           | shares    |   | shares    |  
|                           |           |   |           |  
|Outstanding at 1 January   | 3 770 644 |   |          |  
|Awarded                    | 3 426 757 |   | 3 771 268 |  
|Vested                     |          |   |          |  
|Forfeited                  | (470 972  | ) | (624      | )
|                           |           |   |           |  
|Outstanding at 31 December | 6 726 429 |   | 3 770 644 |  
|                           |           |   |           |  
|Exercisable at 31 December |          |   |          |  
|                           |           |   |           |  

|                              |        |  |        | 
|----------------------------- | ------ |  | ------ | 
|                              | 2006   |  | 2005   | 
|                              |        |  |        | 
|Share award value information |        |  |        | 
|Fair value per share award    | €17.07 |  | €15.98 | 
|                              |        |  |        | 

As at 1 January 2006 there were 3 770 644 non-vested share awards at a weighted average fair value of €15.87. As at 31 December 2006 there were 6 726 429 non-vested share awards at a weighted average fair value of
€16.47. During 2006 no share awards vested.

(iv) TSR Long-Term Incentive PlanUnder this plan, introduced
  in 2001, grants are made to Executive Directors and some senior executives.
  The level of share award which will vest three years later will vary in accordance
  with the Total Shareholder Return in comparison with a peer group (see description
  on page 27). If the ranking is below the median, the share award will lapse;
  the higher the ranking above the median, the higher the share award. The amount
  to be paid to the company by participants to obtain the shares at vesting is
  zero.

A summary of the status of the TSR Long-Term
  Incentive Plan as at 31 December 2006, 2005 and 2004 and changes during the
  year ended on these dates is presented below:

|                           | 2006      |   | 2005      |   | 2004      |  
|-------------------------- | --------- | - | --------- | - | --------- | -
|                           | Number of |   | Number of |   | Number of |  
|                           | shares    |   | shares    |   | shares    |  
|                           |           |   |           |   |           |  
|Outstanding at 1 January   | 2 150 450 |   | 2 180 626 |   | 1 994 258 |  
|Awarded                    | 602 347   |   | 689 495   |   | 734 699   |  
|Vested(a)                  |          |   |          |   | (454 759  | )
|Forfeited                  | (33 971   | ) | (21 944   | ) | (93 572   | )
|Expired(b)                 | (771 570  | ) | (697 727  | ) |          |  
|                           |           |   |           |   |           |  
|Outstanding at 31 December | 1 947 256 |   | 2 150 450 |   | 2 180 626 |  
|                           |           |   |           |   |           |  
|Exercisable at 31 December |          |   |          |   |          |  
|                           |           |   |           |   |           |  

|(a) | 2001 award vested 100% as ranking was 6th.                                              
|--- | ----------------------------------------------------------------------------------------
|(b) | 2002 and 2003 awards expired (zero vesting) as rankings were 13th and 14th respectively.
|   

|                              | 2006   |  | 2005   |  | 2004   | 
|----------------------------- | ------ |  | ------ |  | ------ | 
|                              |        |  |        |  |        | 
|Share award value information |        |  |        |  |        | 
|Fair value per share award(c) | €14.08 |  | €13.48 |  | €13.68 | 
|                              |        |  |        |  |        | 

|(c) | Estimated using option pricing models (Monte Carlo) taking account of peer group TSR volatilities and correlations.
|--- | -------------------------------------------------------------------------------------------------------------------

As at 1 January 2006 there were 2 150 450 non-vested
  share awards at a weighted average fair value of €14.13. As at 31 December
  2006 there were 1 947 256 non-vested share awards at a weighted average fair
  value of €13.83. During 2006 there were 771 570 share awards at a weighted
  average fair value of €14.84 which expired on the vesting date.



|120 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)

|                                                      
|------------------------------------------------------
|Notes
      to the consolidated accountsUnilever Group
|                                                      



29 Share-based compensation plans(continued)

(v) North America Performance Share ProgrammeThis long-term incentive plan for
  North American managers, introduced in 2001, awards Unilever shares if company
  performance targets are met over a three-year period. The amount to be paid
  to the company by participants to obtain the shares at vesting is zero.

A summary of the status of the North America
  Performance Share Programme as at 31 December 2006, 2005 and 2004 and changes
  during the years ended on these dates is presented below:

|                           | 2006       |   | 2005       |   | 2004       |  
|-------------------------- | ---------- | - | ---------- | - | ---------- | -
|                           | Number of  |   | Number of  |   | Number of  |  
|                           | shares     |   | shares     |   | shares     |  
|                           |            |   |            |   |            |  
|Outstanding at 1 January   | 9 516 348  |   | 10 749 007 |   | 11 255 341 |  
|Awarded                    | 2 735 732  |   | 2 742 984  |   | 3 456 287  |  
|Vested                     | (3 057 630 | ) | (3 510 939 | ) | (3 819 424 | )
|Forfeited                  | (650 699   | ) | (464 704   | ) | (143 197   | )
|                           |            |   |            |   |            |  
|Outstanding at 31 December | 8 543 751  |   | 9 516 348  |   | 10 749 007 |  
|                           |            |   |            |   |            |  
|Exercisable at 31 December |           |   |           |   |           |  
|                           |            |   |            |   |            |  

|                              |        |  |        |  |        | 
|----------------------------- | ------ |  | ------ |  | ------ | 
|                              | 2006   |  | 2005   |  | 2004   | 
|                              |        |  |        |  |        | 
|Share award value information |        |  |        |  |        | 
|Fair value per share award    | €17.42 |  | €19.02 |  | €15.88 | 
|                              |        |  |        |  |        | 

As at 1 January 2006 there were 9 516 348
  non-vested share awards at a weighted average fair value of €16.14. As
  at 31 December 2006 there were 8 543 751 non-vested share awards at a weighted
  average fair value of €16.93. During 2006 there were 3 189 363 share awards
  vested at a weighted average fair value of €15.12.

(vi) Other PlansThe Group also provides a
  Share Matching Plan, a Restricted Share Plan, and a cash-settled share-based
  retention plan.

Additional informationAs a result of the share-based
  compensation plans for employees, we are exposed to movements in our own share
  price. We take a flexible approach to the buying of shares to meet these obligations,
  not automatically buying shares at grant. In 2001, we entered into a contract
  with a bank for the forward purchase of Unilever shares. This contract was terminated
  in March 2006.

At 31 December 2006, there were options outstanding
  to purchase 87 114 773 (2005: 99 687 447) ordinary shares in NV or PLC in respect
  of share-based compensation plans of NV and its subsidiaries and the North American
  plans, and 28 832 519 (2005: 33 703 439) ordinary shares in NV or PLC in respect
  of share-based compensation plans of PLC and its subsidiaries.

To satisfy the options granted, certain NV
  group companies hold 91 935 752 (2005: 99 695 763) ordinary shares of NV or
  PLC, and trusts in Jersey and the United Kingdom hold 16 678 871 (2005: 19 454
  453) PLC shares. The trustees of these trusts have agreed, until further notice,
  to waive dividends on these shares, save for the nominal sum of 0.01p per 31/9p
  ordinary share. Shares acquired during 2006 represent 0.2% of the Groups
  called up capital. The balance at year end is 3.6% (2005: 3.9%) .

The book value of €1 836 million (2005:
  €2 258 million) of all shares held in respect of share-based compensation
  plans for both NV and PLC is eliminated on consolidation by deduction from other
  reserves (see note 23 on page 110). Their market value at 31 December 2006 was
  €2 279 million (2005: €2 261 million).

At 31 December 2006 the exercise price of
  14 989 001 (2005: 43 740 558) NV and PLC options were above the market price
  of the shares.

Shares held to satisfy options are accounted
  for in accordance with IAS 32 and SIC 12. All differences between the purchase
  price of the shares held to satisfy options granted and the proceeds received
  for the shares, whether on exercise or lapse, are charged to reserves. In 2006
  this includes €7 million (2005: €7 million) for shares held to meet
  options expiring in the short term which are priced above market value. The
  basis of the charge to operating profit for the economic value of options granted
  is discussed on page 117.

Obligations over the following number of
  shares were granted, exercised, forfeited or expired between 31 December 2006
  and 1 March 2007. In this period we have also, in line with prior years practice,
  purchased 206 871 NV New York Registry Shares and 259 522 PLC shares in the
  form of ADRs to satisfy awards under the North America Executive Option and
  Share Matching Plans.

|                                                |            |  | Exercised,           | 
|----------------------------------------------- | ---------- |  | -------------------- | 
|                                                | Granted    |  | forfeited or expired | 
|                                                |            |  |                      | 
|                                                | Numbers of |  | Numbers              | 
|                                                | shares     |  | of shares            | 
|                                                |            |  |                      | 
|All-Employee Option Plans                       |           |  | 443 488              | 
|Executive Option Plans                          |           |  | 3 006 729            | 
|Global Performance Share
      Plan             |           |  | 20 083               | 
|TSR Long-Term Incentive Plan                    |           |  |                     | 
|North America Performance
      Share Programme |           |  | 91 187               | 
|                                                |            |  |                      | 



|UnileverAnnual Report on Form 20-F 2006 | 121
|--------------------------------------- | ---

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 

|                                                      
|------------------------------------------------------
|Notes
      to the consolidated accountsUnilever Group
|                                                      



30 Related
  party transactions

|The following related party balances existed with associate or joint venture businesses at 31 December: |           |   |           |  
|------------------------------------------------------------------------------------------------------- | --------- | - | --------- | -
|                                                                                                        | € million |   | € million |  
|Related party balances                                                                                  | 2006      |   | 2005      |  
|                                                                                                        |           |   |           |  
|Trading and other balances due (to)/from joint ventures                                                 | 91        |   | 85        |  
|Trading balances due (to)/from associates                                                               | (14       | ) | (8        | )
|                                                                                                        |           |   |           |  

Joint venturesAs discussed in note 33 on page
  123, Unilever completed the restructuring of its Portuguese business as at 1
  January 2007. Balances owed by FIMA at 31 December 2006 were €91 million
  (2005: €85 million).

AssociatesFollowing the sale of DiverseyLever,
  our institutional and industrial cleaning business, to Johnson Professional
  Holdings Inc. in 2002, Unilever has a one-third equity stake in the combined
  JohnsonDiversey business, with an option to exit the business from 2007. This
  option had a fair value of zero at 31 December 2006 and 31 December 2005. At
  31 December 2006 the outstanding balance payable to JohnsonDiversey Holdings
  Inc. was €14 million (2005: €8 million). Sales agency fees to JohnsonDiversey
  were incurred of approximately €68 million in 2006 (2005: €76 million;
  2004: €68 million).

Langholm Capital Partners invests in private
  European companies with above-average longer-term growth prospects. It has invested
  in: Lumene OY, a Finnish personal care business specialising in natural personal
  care for fair skins in harsh climates; Dorset Cereals, a UK manufacturer of
  cereal products aimed at the healthy eating and luxury niche of the cereals
  market; Just Retirement, a specialist financial services company based in the
  UK, providing customised retirement solution for those in and approaching retirement,
  and Elvi, a UK retailer of plus-size womens clothing with 25 owned shops
  and 66 concession outlets. An IPO of Just Retirement took place in 2006. As
  a result of sale of shares during the IPO, Langholm returned €13 million
  to Unilever. Langholm remains a majority shareholder of Just Retirement. To
  build business opp ortunities that fit our core business interests in Foods
  and Home and Personal Care, we have committed €97 million to Langholm
  Capital Partners on a total of €242 million funds raised. At 31 December
  2006, the outstanding balance with Langholm Capital Partners was €45 million
  (not material in 2005).

Other related partiesIn September 2006 Harish Manwani,
  President Asia Africa and member of the Unilever Executive Team, and his wife
  purchased an apartment from Hindustan Lever Limited, a group company ultimately
  owned by PLC, for Rs.118 million (€2 042 255). The purchase was made at
  full market value via an open bidding/tendering process managed by independent
  property consultants. Mr Manwani is also Non-Executive Chairman of Hindustan
  Lever Limited a company listed on, among others, the National Stock Exchange
  of India and the Bombay Stock Exchange. The independent Directors of Hindustan
  Lever Limited, including the Chairman of the Audit Committee were fully consulted.

31
  Key management personnel

For 2004 key management personnel included
  the Executive Directors, Non-Executive Directors and Business Presidents described
  on pages 68 and 69 of the 2004 Report and Accounts. Following a change in the
  management structure which took place in 2005 key management for 2005 and 2006
  for reporting purposes became the members of the UEx together with the Non-Executive
  Directors described on page 46.

|                                                 | € million |   | € million |   | € million |  
|------------------------------------------------ | --------- | - | --------- | - | --------- | -
|Key management
      compensation                | 2006      |   | 2005      |   | 2004      |  
|                                                 |           |   |           |   |           |  
|Salaries and short-term employee
      benefits  | (14       | ) | (13       | ) | (21       | )
|Non-Executive Directors
      fees              | (1        | ) | (1        | ) | (1        | )
|Post-employment benefits                         | (3        | ) | (4        | ) | (5        | )
|Other long-term benefits
      (all share-based) | (2        | ) | (1        | ) | (13       | )
|Termination payments                             |          |   | (1        | ) | (2        | )
|                                                 |           |   |           |   |           |  
|                                                 | (20       | ) | (20       | ) | (42       | )
|                                                 |           |   |           |   |           |  
|Of which:                                        |           |   |           |   |           |  
|Executive Directors                              | (11       | ) | (16       | ) | (24       | )
|Non-Executive Directors                          | (1        | ) | (1        | ) | (1        | )
|Other                                            | (8        | ) | (3        | ) | (17       | )
|                                                 |           |   |           |   |           |  
|                                                 | (20       | ) | (20       | ) | (42       | )
|                                                 |           |   |           |   |           |  

Details of the remuneration of Directors
  are given in the auditable part of the report of the Remuneration Committee
  as defined on page 49. See also note 30 above for information on related party
  transactions.



|122 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)

|                                                      
|------------------------------------------------------
|Notes
      to the consolidated accountsUnilever Group
|                                                      



32 Remuneration
  of auditors

|                      | € million |   | € million |   | € million |  
|--------------------- | --------- | - | --------- | - | --------- | -
|                      | 2006      |   | 2005      |   | 2004      |  
|                      |           |   |           |   |           |  
|Audit fees(a)         | (24       | ) | (14       | ) | (13       | )
|Audit-related fees(b) | (3        | ) | (3        | ) | (5        | )
|Tax fees              | (2        | ) | (3        | ) | (4        | )
|All other fees        | (1        | ) | (2        | ) | (2        | )
|                      |           |   |           |   |           |  

|(a) | Excludes out of pocket expenses and fees
      paid in respect of services supplied for associated pension schemes.                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Includes other audit services which comprises
      audit and similar work that regulation for agreements with third parties
      requires the auditors to undertake.

33 Events
  after the balance sheet date

On 1 January 2007, Unilever completed the restructuring of its Portuguese businesses. The result of the reorganisation is that Unilever now has a 55% share of the combined Portuguese entity, called Unilever
Jerónimo Martins. The combined business includes the foods and home and personal care businesses. The remaining 45% interest is held by Jerónimo Martins Group. The structure of the agreement is such that there is joint control of the
newly formed entity and so it will be accounted for by Unilever as a joint venture.

On 12 March 2007, Unilever announced the
  commencement of a share buy-back programme. This will involve the purchase in
  2007 of ordinary shares of NV or PLC, or a combination of the two, up to an
  aggregate market value of €1.5 billion. The value of the shares purchased
  will be booked against equity under the heading of Other reserves, in line with
  established practice. As at 19 March 2007, 1 967 782 ordinary shares of NV had been purchased at prices
between €19.55 and €21.41 per share. These shares will be held as
treasury shares.



|UnileverAnnual Report on Form 20-F 2006 | 123
|--------------------------------------- | ---

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



34 Divergences
  from United States GAAP

Unilevers consolidated accounts are prepared in accordance with accounting principles which differ in some respects from those applicable in the United States. The following is a summary of the effect on the
Groups net profit, combined earnings per share and equity of the application
of accounting principles generally accepted in the United States (US GAAP).

|                                                                                      | € million |   | € million |   | € million |  
|------------------------------------------------------------------------------------- | --------- | - | --------- | - | --------- | -
|                                                                                      | 2006      |   | 2005      |   | 2004      |  
|                                                                                      |           |   |           |   |           |  
|Net profitas reported in the consolidated income statement                            | 5 015     |   | 3 975     |   | 2 941     |  
|US GAAP adjustments:                                                                  |           |   |           |   |           |  
|Impairment of goodwill and intangible assets                                          | (12       | ) | (279      | ) | (152      | )
|Restructuring costs                                                                   | 23        |   | (224      | ) | 275       |  
|Pensions and similar obligations                                                      | (464      | ) | (265      | ) | (230      | )
|Profit/(loss) on disposal of group companies                                          | (167      | ) | (217      | ) | (11       | )
|Currency retranslation written back on disposals                                      | (81       | ) | (102      | ) | (8        | )
|Sale and leaseback                                                                    | (28       | ) | (56       | ) |          |  
|Financial Instruments                                                                 | (41       | ) | (6        | ) | (66       | )
|Taxation effect of above adjustments including differences in deferred tax accounting | 178       |   | 70        |   | 159       |  
|Other                                                                                 | (38       | ) | (41       | ) | (41       | )
|                                                                                      |           |   |           |   |           |  
|Net increase/(decrease)                                                               | (630      | ) | (1 120    | ) | (74       | )
|                                                                                      |           |   |           |   |           |  
|Net income under US GAAP                                                              | 4 385     |   | 2 855     |   | 2 867     |  
|                                                                                      |           |   |           |   |           |  
|Attributable to:                                                                      |           |   |           |   |           |  
|Minority interests                                                                    | 270       |   | 209       |   | 181       |  
|Shareholders equity                                                                  | 4 115     |   | 2 646     |   | 2 686     |  
|                                                                                      |           |   |           |   |           |  

|Combined earnings per share under US GAAP | €    |  | €    |  | €    | 
|----------------------------------------- | ---- |  | ---- |  | ---- | 
|                                          |      |  |      |  |      | 
|From continuing operations                |      |  |      |  |      | 
|Basic earnings per share                  | 0.98 |  | 0.68 |  | 0.84 | 
|Diluted earnings per share                | 0.93 |  | 0.68 |  | 0.80 | 
|                                          |      |  |      |  |      | 
|From total operations                     |      |  |      |  |      | 
|Basic earnings per share                  | 1.45 |  | 0.90 |  | 0.92 | 
|Diluted earnings per share                | 1.38 |  | 0.88 |  | 0.87 | 
|                                          |      |  |      |  |      | 

|                                                                                      |           |   |           |  
|------------------------------------------------------------------------------------- | --------- | - | --------- | -
|                                                                                      | € million |   | € million |  
|                                                                                      | 2006      |   | 2005      |  
|                                                                                      |           |   |           |  
|Total equityas reported in the consolidated balance sheet                             | 11 672    |   | 8 765     |  
|US GAAP adjustments:                                                                  |           |   |           |  
|Goodwill                                                                              | 4 171     |   | 4 531     |  
|Indefinite-lived intangible assets                                                    | 1 246     |   | 1 402     |  
|Restructuring costs                                                                   | 171       |   | 153       |  
|Pensions and similar obligations                                                      | 31        |   | 1 085     |  
|Taxation effect of above adjustments including differences in deferred tax accounting | (464      | ) | (896      | )
|Other                                                                                 | 241       |   | 356       |  
|                                                                                      |           |   |           |  
|Net increase/(decrease)                                                               | 5 396     |   | 6 631     |  
|                                                                                      |           |   |           |  
|Equity under US GAAP                                                                  | 17 068    |   | 15 396    |  
|                                                                                      |           |   |           |  
|Attributable to:                                                                      |           |   |           |  
|Minority interests                                                                    | 442       |   | 404       |  
|Shareholders equity                                                                  | 16 626    |   | 14 992    |  
|                                                                                      |           |   |           |  



|124 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



34 Divergences from United States GAAP(continued)

The consolidated accounts of the Unilever Group have been prepared in accordance with accounting principles which differ in certain respects from those generally accepted in the United States (US GAAP). The principal
differences are set out below.

Goodwill and intangible assetsUnder IFRS transitional rules, purchased
goodwill and indefinite-lived intangible assets were recognised at the transition
date to IFRS at deemed cost. For goodwill, the deemed cost at 1 January 2004
was the carrying value under previous GAAP at 31 December 2003. Under previous
GAAP, goodwill arising from acquisitions after 1 January 1998 was capitalised
and amortised over the period of its expected useful life, up to a maximum of
20 years. For intangible assets with indefinite lives, the deemed cost at the
date of transition to IFRS is the original cost at which these intangible assets
were initially recognised on the balance sheet at the time of the acquisition.

Under US GAAP prior to 1 January 2002, purchased goodwill and indefinite-lived
intangible assets were capitalised and amortised over their useful lives. From
1 January 2002, under Financial Accounting Standards Board
Statement FAS 142 Goodwill and Other Intangible Assets, the amortisation
of goodwill and indefinite-lived intangible assets ceased. Intangible assets
that have finite useful lives continue to be amortised over their useful lives
for both
IFRS and US GAAP.

The differences in equity between IFRS and US GAAP in accounting for goodwill
and intangible assets are set out in the table below:

|                                                                          | € million |   | € million |  
|------------------------------------------------------------------------- | --------- | - | --------- | -
|                                                                          | 2006      |   | 2005      |  
|                                                                          |           |   |           |  
|Pre-1998 goodwill and intangible assets                                   | 3 149     |   | 3 536     |  
|Cessation of goodwill amortisation                                        | 1 633     |   | 1 631     |  
|Cessation of indefinite-lived intangible assets amortisation              | (398      | ) | (329      | )
|Differences in calculation of goodwill on acquisition                     | 1 118     |   | 1 198     |  
|Recognised impairments on goodwill and indefinite-lived intangible assets | (106      | ) | (128      | )
|Cessation of goodwill amortisation on joint ventures and associates       | 21        |   | 25        |  
|                                                                          |           |   |           |  
|Total adjustment to equity                                                | 5 417     |   | 5 933     |  
|                                                                          |           |   |           |  

Under US GAAP the carrying values and detailed rules for measuring and allocating an impairment loss differ from those rules under IFRS. The principal differences being that:

|• | The impairment review is performed by reference to reporting units, which are defined differently from cash generating units. A reporting unit is at the reporting segment or one
level below; and                                
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  |                                                                                                                                                                                                                                   
|• | Fair value is determined by use of a relief-from-royalty valuation method for indefinite-lived trademarks and through a present value of discounted cash flows methodology for the
relevant reporting unit in respect of goodwill.

In 2006, the US GAAP impairment testing identified an additional €12 million
of goodwill and intangible assets that were impaired (2005: €279 million;
2004: €152 million).

GoodwillAn analysis of goodwill of group
companies, joint ventures and associates by reporting segment is given below:

|                                       | € million |   | € million |   | € million |   | € million |  
|-------------------------------------- | --------- | - | --------- | - | --------- | - | --------- | -
|                                       |           |   | The       |   | Asia      |   |           |  
|                                       | Europe    |   | Americas  |   | Africa    |   | Total     |  
|                                       |           |   |           |   |           |   |           |  
|1 January 2005(a)                      | 8 515     |   | 5 937     |   | 1 960     |   | 16 412    |  
|Acquisitions                           |          |   |          |   | 13        |   | 13        |  
|Disposals                              | (149      | ) | (24       | ) | (4        | ) | (177      | )
|Impairment charged to income statement |          |   | (176      | ) | (3        | ) | 179       |  
|Currency retranslation                 | 56        |   | 1 123     |   | 381       |   | 1 560     |  
|                                       |           |   |           |   |           |   |           |  
|31 December 2005                       | 8 422     |   | 6 860     |   | 2 347     |   | 17 629    |  
|Acquisitions                           | 43        |   |          |   | 17        |   | 60        |  
|Disposals                              | (111      | ) | (25       | ) | (4        | ) | (140      | )
|Impairment charged to income statement | (17       | ) | (5        | ) | (2        | ) | (24       | )
|Currency retranslation                 | (5        | ) | (415      | ) | (388      | ) | (808      | )
|                                       |           |   |           |   |           |   |           |  
|31 December 2006                       | 8 332     |   | 6 415     |   | 1 970     |   | 16 717    |  
|                                       |           |   |           |   |           |   |           |  

|(a) | In 2005 Unilever implemented a new operating framework, which resulted in Unilever reporting its primary operating segments as geographies. In 2005 an allocation of goodwill was made to the reportable segments. During
the year the Directors have reassessed the allocation of goodwill to geographical segments based on the relative fair value of the segments at the time the new operating framework was introduced. As a result, we have amended the 1 January 2005
goodwill balances (and associated currency retranslation effects in 2005) by reallocating goodwill from the Americas segment to the Asia Africa and Europe segments of €1.0 billion and €0.3 billion respectively.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|UnileverAnnual Report on Form 20-F 2006 | 125
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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



34 Divergences from United States GAAP(continued)

Indefinite-lived intangible assetsIndefinite-lived intangible assets
principally comprise trademarks. An analysis of the net book value of indefinite-lived
intangible assets at cost less accumulated amortisation is given below:

|                           | € million |   | € million |  
|-------------------------- | --------- | - | --------- | -
|                           | 2006      |   | 2005      |  
|                           |           |   |           |  
|Cost                       | 6 878     |   | 7 471     |  
|Accumulated amortisation   | (1 458    | ) | (1 619    | )
|                           |           |   |           |  
|Net book value 31 December | 5 420     |   | 5 852     |  
|                           |           |   |           |  

Restructuring costsUnder
Unilevers accounting policy, costs relating to employee terminations and
certain other costs are recognised when a restructuring plan has been announced
as the Group is considered to be demonstrably
committed. Under US GAAP, employee termination costs are recognised when
the company has a liability to the employee, unless further service is required
from the employee, in which case costs are recognised as benefits are earned.
Additionally, under US GAAP, liabilities relating to certain other exit costs
are recognised when incurred.

Pensions and similar obligationsUnder IAS 19, the expected costs
of providing retirement benefits are charged to the income statement over the
periods benefiting from the employees services. Variations from the expected
cost are recognised as they occur in the statement of recognised income and expense.
The assets and liabilities of pension plans are included in the Group balance
sheet at fair value. Under previous US GAAP rules, pension and other post-retirement
plan costs and liabilities were accounted for in accordance with the prescribed
actuarial method and measurement principles of FAS 87, Employers Accounting
for Pensions and FAS 106, Employers Accounting for Post-Retirement
Benefits
Other than Pensions. The most significant difference between IFRS and US
GAAP was that variations from the expected costs were recognised in the income
statement over the expected service lives of the employees. Furthermore, an additional
minimum liability was recognised and a charge made to other comprehensive income
when the accumulated benefit obligation exceeded the fair value of plan assets
to the extent that the amount was not covered by the net liability recognised
in the
balance sheet.

On 31 December 2006, Unilever adopted FAS 158, Employers Accounting
for Defined Benefit Pension and Other Post-Retirement Plans as issued by
the Financial Accounting Standards Board (FASB) in September 2006 in full. The
standard requires the net surplus or deficit of plans to be shown in the statement
of financial position. This standard was adopted by Unilever with effect from
31 December 2006. The adoption of FAS 158 means that the only significant difference
from IFRS is that variations from the expected costs are recognised first in
equity and then recycled in the income statement over the expected service life
of the employees.

Under US GAAP, the actuarial assumptions used to calculate the benefit obligations
are set by reference to market conditions at the balance sheet date, in a manner
similar to that used under IAS 19. Following the adoption of FAS 158 in 2006
the balance sheet accounting methodology is now similar to that under IAS 19.
However, there is still one significant difference since under US GAAP all costs
are recognised in operating profit and certain cost items are amortised in the
income statement even though they have already been recognised in equity. Under
the provisions of FAS 158 earlier years have not been restated.

The disclosures below show the benefit obligations, assets, funded status and
balance sheet impact, as well as the periodic expense, cash flows and related
economic assumptions associated with the defined benefit pension plans and other
post-employment benefit plans as computed in accordance with FAS 87, FAS 106
and FAS 158.

Measurement datesAll plan assets are valued at fair
value at the balance sheet date. Liabilities in respect of the most important
pension plans, comprising approximately 80% of the pension liabilities, are subject
to actuarial valuations every year. The valuations use membership data for the
current year with the liability projected forward to the balance sheet date.
Valuations of all other plans are carried out every three years and in the case
of the other principal pension plans, comprising approximately a further 15%
of the liabilities, the valuations are updated each year.



|126 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



34 Divergences from United States GAAP(continued)

Benefit obligationsThe table below shows changes in
benefit obligations during 2006 and 2005:

|                                      | € million |   | € million |   | € million     |   | € million     |  
|------------------------------------- | --------- | - | --------- | - | ------------- | - | ------------- | -
|                                      |           |   |           |   | Other post-   |   | Other post-   |  
|                                      | Pension   |   | Pension   |   | employment    |   | employment    |  
|                                      | plans     |   | plans     |   | benefit plans |   | benefit plans |  
|Change in benefit obligations         | 2006      |   | 2005      |   | 2006          |   | 2005          |  
|                                      |           |   |           |   |               |   |               |  
|1 January                             | 19 927    |   | 17 512    |   | 1 306         |   | 1 175         |  
|Service cost                          | 338       |   | 321       |   | 28            |   | 28            |  
|Interest cost                         | 907       |   | 915       |   | 62            |   | 68            |  
|Plan member contributions             | 14        |   | 19        |   |              |   |              |  
|Amendments                            | (107      | ) | 13        |   | (186          | ) | (56           | )
|Actuarial (gains)/losses              | (451      | ) | 1 665     |   | (80           | ) | 12            |  
|Acquisitions                          |          |   |          |   |              |   |              |  
|Disposals                             | (118      | ) | (22       | ) | (5            | ) | (3            | )
|Settlements                           | (16       | ) | (4        | ) |              |   | (1            | )
|Curtailments                          | (33       | ) | (36       | ) | (27           | ) | (3            | )
|Special termination benefits          | 54        |   | 79        |   |              |   | 1             |  
|Gross benefits paid                   | (1 177    | ) | (1 160    | ) | (79           | ) | (84           | )
|Less: Federal subsidy on benefit paid |          |   |          |   | 6             |   |              |  
|Reclassification of benefits(a)       | 27        |   | 18        |   | 1             |   | 10            |  
|Currency retranslation                | (137      | ) | 607       |   | (101          | ) | 159           |  
|                                      |           |   |           |   |               |   |               |  
|31 December                           | 19 228    |   | 19 927    |   | 925           |   | 1 306         |  
|                                      |           |   |           |   |               |   |               |  

|(a) | During both 2006 and 2005, certain obligations were reclassified as employee benefit obligations.
|--- | -------------------------------------------------------------------------------------------------

The weighted assumptions used to value the
benefit obligations in respect of the principal plans are:

|                                                                   | %       |  | %       |  | %             |  | %             | 
|------------------------------------------------------------------ | ------- |  | ------- |  | ------------- |  | ------------- | 
|                                                                   |         |  |         |  | Other post-   |  | Other post-   | 
|                                                                   | Pension |  | Pension |  | employment    |  | employment    | 
|Weighted average assumptions used to determine benefit obligations | plans   |  | plans   |  | benefit plans |  | benefit plans | 
|for the principal plans at 31 December                             | 2006    |  | 2005    |  | 2006          |  | 2005          | 
|                                                                   |         |  |         |  |               |  |               | 
|Discount rate                                                      | 5.1     |  | 4.6     |  | 5.9           |  | 5.5           | 
|Salary increases                                                   | 3.7     |  | 3.5     |  | 4.0           |  | 4.0           | 
|Pension increases                                                  | 2.3     |  | 2.1     |  | n/a           |  | n/a           | 
|                                                                   |         |  |         |  |               |  |               | 

In setting the discount rate, the Group has regard to the yield on high quality corporate bonds of suitable duration to the liabilities. For the UK, we utilise the iBoxx 15+ year AA All Stock Index yield, for the
Eurozone we utilise the iBoxx Euro 10+ year AA All Stock index and for the US we utilise the Moodys Corporate AA index yield.

Assumptions for the remaining defined benefit plans vary considerably, depending
on the economic conditions of the countries where they are situated.

Post-employment healthcare benefitsAdditional assumptions in respect of healthcare benefits are:

|Weighted average healthcare trend rates at 31 December | 2006 |  | 2005  | 
|------------------------------------------------------ | ---- |  | ----- | 
|                                                       |      |  |       | 
|Healthcare cost trend rate assumed for next year       | 9.9% |  | 10.4% | 
|Rate to which the cost trend rate gradually declines   | 5.0% |  | 4.8%  | 
|Year that the assumed long-term rate is reached        | 2012 |  | 2012  | 
|                                                       |      |  |       | 

Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one percentage point change in assumed healthcare cost trend rates would have the following
effect:

|                                                   | € million |  | million  |  
|-------------------------------------------------- | --------- |  | -------- | -
|                                                   | 1% point  |  | 1% point |  
|                                                   | increase  |  | decrease |  
|                                                   |           |  |          |  
|Effect on post-employment benefit
      obligation | 51        |  | (47      | )
|                                                   |           |  |          |  



|UnileverAnnual Report on Form 20-F 2006 | 127
|--------------------------------------- | ---

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



34 Divergences from United States GAAP(continued)

Plan assetsThe table below shows the changes in the fair value of plan assets during 2006 and 2005:

|                                                        | € million |   | € million |   | € million     |   | € million     |  
|------------------------------------------------------- | --------- | - | --------- | - | ------------- | - | ------------- | -
|                                                        |           |   |           |   | Other post-   |   | Other post-   |  
|                                                        | Pension   |   | Pension   |   | employment    |   | employment    |  
|                                                        | plans     |   | plans     |   | benefit plans |   | benefit plans |  
|Change in the fair value of plan assets during the year | 2006      |   | 2005      |   | 2006          |   | 2005          |  
|                                                        |           |   |           |   |               |   |               |  
|1 January                                               | 15 989    |   | 13 441    |   | 17            |   | 14            |  
|Actual return on plan assets                            | 1 558     |   | 2 483     |   | (2            | ) | 3             |  
|Acquisitions                                            |          |   |          |   |              |   |              |  
|Disposals                                               | (63       | ) | (3        | ) |              |   |              |  
|Settlements                                             | (16       | ) | (10       | ) |              |   |              |  
|Employer contributions/surplus refunds                  | 1 002     |   | 751       |   | 71            |   | 82            |  
|Plan member contributions                               | 14        |   | 19        |   |              |   |              |  
|Benefits paid from plan assets                          | (1 177    | ) | (1 160    | ) | (73           | ) | (84           | )
|Reclassification of benefits(b)                         | 38        |   | 39        |   |              |   |              |  
|Currency retranslations                                 | (80       | ) | 429       |   |              |   | 2             |  
|                                                        |           |   |           |   |               |   |               |  
|31 December                                             | 17 265    |   | 15 989    |   | 13            |   | 17            |  
|                                                        |           |   |           |   |               |   |               |  

|(b) | During 2005, certain obligations were reclassified as employee benefit obligations.
|--- | -----------------------------------------------------------------------------------

Asset allocationThe
asset allocation for the Groups principal pension plans at 31 December
2005 and 2006, target allocation for 2007, and expected long-term rates of return
by asset category are as follows:

|                               |            |  |             |  |             |  | Long-term      |  
|------------------------------ | ---------- |  | ----------- |  | ----------- |  | -------------- | -
|                               | Target     |  | Percentage  |  | Percentage  |  | expected       |  
|                               | percentage |  | of plan     |  | of plan     |  | return on      |  
|                               | allocation |  | assets at   |  | assets at   |  | plan assets at |  
|                               | for        |  | 31 December |  | 31 December |  | 31 December    |  
|Long-term asset
      category | 2007       |  | 2006        |  | 2005        |  | 2006           |  
|                               |            |  |             |  |             |  |                |  
|Equity securities              | 60         |  | 61          |  | 61          |  | 7.8            | %
|Debt securities                | 26         |  | 24          |  | 25          |  | 4.9            | %
|Property                       | 9          |  | 8           |  | 9           |  | 6.3            | %
|Other                          | 5          |  | 7           |  | 5           |  | 6.0            | %
|                               |            |  |             |  |             |  |                |  
|                               | 100        |  | 100         |  | 100         |  |                |  
|                               |            |  |             |  |             |  |                |  

Equity securities include Unilever securities amounting to €32 million (0.2% of total plan assets) and €34 million (0.2% of total plan assets) at 31 December 2006 and 2005 respectively.

Funded statusThe funded status of the plans, reconciled
to the amount reported in the statement of financial position, is as follows:

|                                                                      | € million |   | € million |   | € million     |   | € million     |  
|--------------------------------------------------------------------- | --------- | - | --------- | - | ------------- | - | ------------- | -
|                                                                      |           |   |           |   | Other post-   |   | Other post-   |  
|                                                                      | Pension   |   | Pension   |   | employment    |   | employment    |  
|                                                                      | plans     |   | plans     |   | benefit plans |   | benefit plans |  
|                                                                      | 2006      |   | 2005      |   | 2006          |   | 2005          |  
|                                                                      |           |   |           |   |               |   |               |  
|Fair value of plan assets                                             | 17 265    |   | 15 989    |   | 13            |   | 17            |  
|Benefit obligations                                                   | (19 228   | ) | (19 927   | ) | (925          | ) | (1 306        | )
|                                                                      |           |   |           |   |               |   |               |  
|Funded status at 31 December                                          | (1 963    | ) | (3 938    | ) | (912          | ) | (1 289        | )
|Unrecognised net transition liability/(asset)                         |          |   | (46       | ) |              |   |              |  
|Unrecognised net actuarial loss/(gain)                                |          |   | 3 008     |   |              |   | 319           |  
|Unrecognised prior service cost                                       |          |   | 91        |   |              |   | (59           | )
|                                                                      |           |   |           |   |               |   |               |  
|Net amount recognised at 31 December                                  | (1 963    | ) | (885      | ) | (912          | ) | (1 029        | )
|                                                                      |           |   |           |   |               |   |               |  
|Amount recognised in the statement of financial position consists of: |           |   |           |   |               |   |               |  
|Prepaid benefit cost                                                  | n/a       |   | 1 603     |   | n/a           |   | 3             |  
|Accrued benefit liability                                             | n/a       |   | (2 488    | ) | n/a           |   | (1 032        | )
|Additional minimum liability                                          | n/a       |   | (2 442    | ) | n/a           |   |              |  
|Intangible asset                                                      | n/a       |   | 52        |   | n/a           |   |              |  
|Accumulated other comprehensive income                                | n/a       |   | 2 390     |   | n/a           |   |              |  
|                                                                      |           |   |           |   |               |   |               |  
|Net amount recognised at 31 December                                  | n/a       |   | (885      | ) | n/a           |   | (1 029        | )
|                                                                      |           |   |           |   |               |   |               |  
|Current assets                                                        | 50        |   | n/a       |   |              |   | n/a           |  
|Non-current assets                                                    | 1 653     |   | n/a       |   | 2             |   | n/a           |  
|Current liabilities                                                   | (224      | ) | n/a       |   | (84           | ) | n/a           |  
|Non-current liabilities                                               | (3 442    | ) | n/a       |   | (830          | ) | n/a           |  
|                                                                      |           |   |           |   |               |   |               |  
|Total net liability                                                   | (1 963    | ) | n/a       |   | (912          | ) | n/a           |  
|                                                                      |           |   |           |   |               |   |               |  

The projected benefit obligation (PBO), accumulated benefit obligation (ABO), and fair value of plan assets, in total and for pension plans where the projected benefit obligation or accumulated benefit obligation is in
excess of plan assets are as follows:



|128 | UnileverAnnual Report on Form 20-F 2006
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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



34 Divergences from United States GAAP(continued)

|                                | € million |  | € million |  | € million   |  | € million   |  | € million   |  | € million   | 
|------------------------------- | --------- |  | --------- |  | ----------- |  | ----------- |  | ----------- |  | ----------- | 
|                                |           |  |           |  | Plans where |  | Plans where |  | Plans where |  | Plans where | 
|                                | Pension   |  | Pension   |  | PBO exceeds |  | PBO exceeds |  | ABO exceeds |  | ABO exceeds | 
|                                | plans     |  | plans     |  | plan assets |  | plan assets |  | plan assets |  | plan assets | 
|                                | 2006      |  | 2005      |  | 2006        |  | 2005        |  | 2006        |  | 2005        | 
|                                |           |  |           |  |             |  |             |  |             |  |             | 
|As at 31 December:              |           |  |           |  |             |  |             |  |             |  |             | 
|Projected benefit obligations   | 19 228    |  | 19 927    |  | 14 069      |  | 15 175      |  | 13 738      |  | 14 749      | 
|Accumulated benefit obligations | 18 152    |  | 18 687    |  | 13 350      |  | 14 290      |  | 12 967      |  | 13 849      | 
|Fair value of plan assets       | 17 265    |  | 15 989    |  | 10 404      |  | 10 067      |  | 10 096      |  | 9 659       | 
|                                |           |  |           |  |             |  |             |  |             |  |             | 

Net periodic cost

|                                              | € million |   | € million |   | € million |   | € million     |   | € million     |   | € million     | 
|--------------------------------------------- | --------- | - | --------- | - | --------- | - | ------------- | - | ------------- | - | ------------- | 
|                                              |           |   |           |   |           |   | Other post-   |   | Other post-   |   | Other post-   | 
|                                              | Pension   |   | Pension   |   | Pension   |   | employment    |   | employment    |   | employment    | 
|                                              | plans     |   | plans     |   | plans     |   | benefit plans |   | benefit plans |   | benefit plans | 
|Components
      of net periodic benefit cost | 2006      |   | 2005      |   | 2004      |   | 2006          |   | 2005          |   | 2004          | 
|                                              |           |   |           |   |           |   |               |   |               |   |               | 
|Service cost (gross)                          | 351       |   | 339       |   | 324       |   | 28            |   | 28            |   | 24            | 
|Interest cost                                 | 907       |   | 915       |   | 909       |   | 62            |   | 68            |   | 64            | 
|Expected returns on plan assets               | (1 020    | ) | (930      | ) | (917      | ) | (1            | ) | (1            | ) |              | 
|Employee contributions                        | (14       | ) | (19       | ) | (32       | ) |              |   |              |   |              | 
|Amortisation of prior service
      cost      | 23        |   | 30        |   | 33        |   | (8            | ) | (2            | ) |              | 
|Amortisation of transition
      (asset)      | (35       | ) | (35       | ) | (35       | ) |              |   |              |   |              | 
|Amortisation of actuarial loss/(gain)         | 172       |   | 162       |   | 163       |   | 17            |   | 17            |   | 12            | 
|                                              |           |   |           |   |           |   |               |   |               |   |               | 
|Total before FAS 88 events                    | 384       |   | 462       |   | 445       |   | 98            |   | 110           |   | 100           | 
|Adjustments for FAS 88 events                 | 42        |   | 81        |   | 120       |   | (27           | ) | (3            | ) | 6             | 
|                                              |           |   |           |   |           |   |               |   |               |   |               | 
|Net periodic benefit cost                     | 426       |   | 543       |   | 565       |   | 71            |   | 107           |   | 106           | 
|                                              |           |   |           |   |           |   |               |   |               |   |               | 

The assumptions in respect of principal plans used to determine the periodic expense in the table above for pensions and other retirement benefits are given in the table below:

|                                                              | %       |  | %       |  | %       |  | %                   |  | %             |  | %             | 
|------------------------------------------------------------- | ------- |  | ------- |  | ------- |  | ------------------- |  | ------------- |  | ------------- | 
|                                                              |         |  |         |  |         |  | Other post-         |  | Other post-   |  | Other post-   | 
|                                                              | Pension |  | Pension |  | Pension |  | employment          |  | employment    |  | employment    | 
|Weighted average
      assumptions used to determine net cost | plans   |  | plans   |  | plans   |  | benefit
      plans |  | benefit plans |  | benefit plans | 
|for the principal
      plans for the years ended 31 December | 2006    |  | 2005    |  | 2004    |  | 2006                |  | 2005          |  | 2004          | 
|                                                              |         |  |         |  |         |  |                     |  |               |  |               | 
|Discount rate                                                 | 4.6     |  | 5.1     |  | 5.5     |  | 5.5                 |  | 5.7           |  | 6.1           | 
|Expected long-term rate of
      return on plan assets        | 6.4     |  | 6.8     |  | 7.2     |  | n/a                 |  | n/a           |  | n/a           | 
|Salary increases                                              | 3.5     |  | 3.6     |  | 3.7     |  | 4.0                 |  | 4.5           |  | 4.5           | 
|Pension increases                                             | 2.1     |  | 2.2     |  | 2.2     |  | n/a                 |  | n/a           |  | n/a           | 
|                                                              |         |  |         |  |         |  |                     |  |               |  |               | 

Expected rate of return on plan assetsThe expected rate of return on plan assets
was determined, based on actuarial advice, by a process that takes the current
long-term rates of return available on government bonds and applies to these
rates suitable risk premiums that take account of historic market returns and
current market expectations.

Post-employment healthcare benefitsAssumed healthcare cost trend rates have a significant
effect on the amounts reported for the healthcare plans. A one percentage point
change in assumed healthcare cost trend rates would have the following
effects:

|                                                              | € million |  | € million |  
|------------------------------------------------------------- | --------- |  | --------- | -
|                                                              | 1% point  |  | 1% point  |  
|                                                              | increase  |  | decrease  |  
|                                                              |           |  |           |  
|Effect on total of service
      and interest cost components | 4         |  | (3        | )
|                                                              |           |  |           |  

Other comprehensive incomeOther changes in plan assets and
benefit obligations recognised in other comprehensive income.

|                                                                                   | € million |   | € million |   | € million                 |   | € million     |   | € million     |  | € million   | 
|---------------------------------------------------------------------------------- | --------- | - | --------- | - | ------------------------- | - | ------------- | - | ------------- |  | ----------- | 
|                                                                                   |           |   |           |   |                           |   | Other post-   |   | Other post-   |  | Other post- | 
|                                                                                   | Pension   |   | Pension   |   | Pension                   |   | employment    |   | employment    |  | employment  | 
|                                                                                   | plans     |   | plans     |   | plans benefit
      plans |   | benefit plans |   | benefit plans | 
|                                                                                   | 2006      |   | 2005      |   | 2004                      |   | 2006          |   | 2005          |  | 2004        | 
|                                                                                   |           |   |           |   |                           |   |               |   |               |  |             | 
|Change in effect of additional
      minimum liability                             | (2 388    | ) | n/a       |   | n/a                       |   |              |   | n/a           |  | n/a         | 
|Total recognised in other comprehensive
      income                               | (674      | ) | n/a       |   | n/a                       |   | 17            |   | n/a           |  | n/a         | 
|Total
        recognised in net period benefit cost and other comprehensive income | (248)     |   | n/a       |   | n/a                       |   | 54            |   | n/a           |  | n/a         | 
|Amounts recognised in accumulated
      other comprehensive income:                |           |   |           |   |                           |   |               |   |               |  |             | 
|Additional
      minimum liability                                                 | n/a       |   | (2 442    | ) | (2 208                    | ) | n/a           |   | n/a           |  | n/a         | 
|Net
      actuarial loss/(gain)                                                    | 1 781     |   | n/a       |   | n/a                       |   | 207           |   | n/a           |  | n/a         | 
|Prior
      service cost/(credit)                                                  | (56       | ) | n/a       |   | n/a                       |   | (224          | ) | n/a           |  | n/a         | 
|Transition
      obligation/(asset)                                                | (11       | ) | n/a       |   | n/a                       |   |              |   | n/a           |  | n/a         | 
|Total
      amount recognised                                                      | 1 714     |   | n/a       |   | n/a                       |   | (17           | ) | n/a           |  | n/a         | 
|                                                                                   |           |   |           |   |                           |   |               |   |               |  |             | 



|UnileverAnnual Report on Form 20-F 2006 | 129
|--------------------------------------- | ---

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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



34 Divergences from United States GAAP(continued)

|                                                                            | € million |   | € million     |  
|--------------------------------------------------------------------------- | --------- | - | ------------- | -
|                                                                            |           |   | Other post-   |  
|                                                                            | Pension   |   | employment    |  
|Estimated amortisation
      amounts from accumulated                       | plans     |   | benefit plans |  
|other comprehensive
      income into net periodic benefit cost during 2007 | 2007      |   | 2007          |  
|                                                                            |           |   |               |  
|Actuarial loss/(gain)                                                       | 89        |   | 4             |  
|Prior service cost/(credit)                                                 | 2         |   | (23           | )
|Transition obligation/(asset)                                               | (35       | ) |              |  
|Total                                                                       | 56        |   | (19           | )
|                                                                            |           |   |               |  

Expected cash flowsDuring 2007, net of refunds, Unilever
currently expects to make cash contributions of €371 million to funded
defined benefit plans. This includes both mandatory and discretionary payments.
In addition, a further €82 million is expected to be contributed to defined
contribution plans.

The table below shows the expected benefit payments from defined benefit plans.
The benefits paid from funded plans include amounts funded by employee contributions.
The benefits paid in respect of unfunded plans are
made from the Groups cash resources.

|                           |        |                          | € million |  | € million |  | € million       | 
|-------------------------- | ------ | ------------------------ | --------- |  | --------- |  | --------------- | 
|Pension
          benefits |        | Other
          benefits |           |  |          
|                           |        |                          |           |  |           |  | Federal subsidy | 
|Expected benefit payments  | Funded |                          | Unfunded  |  | Unfunded  |  | Unfunded        | 
|                           |        |                          |           |  |           |  |                 | 
|2007                       | 909    |                          | 225       |  | 99        |  | 6               | 
|2008                       | 928    |                          | 207       |  | 101       |  | 6               | 
|2009                       | 960    |                          | 216       |  | 105       |  | 6               | 
|2010                       | 971    |                          | 222       |  | 108       |  | 7               | 
|2011                       | 999    |                          | 228       |  | 111       |  | 7               | 
|2012-2016                  | 5 302  |                          | 1 262     |  | 557       |  | 36              | 
|                           |        |                          |           |  |           |  |                 | 

Effect of implementing FAS 158The following table shows the incremental
effect of adopting FAS 158 as at 31 December 2006:

|                                    | € million |   | € million   |   | € million |  
|----------------------------------- | --------- | - | ----------- | - | --------- | -
|                                    | Before    |   | Adjustments |   | After     |  
|                                    | adopting  |   | to adopt    |   | adopting  |  
|                                    | FAS 158   |   | FAS 158     |   | FAS 158   |  
|                                    |           |   |             |   |           |  
|Assets:                             |           |   |             |   |           |  
|Current
      benefit asset         |          |   | 50          |   | 50        |  
|Non-current
      benefit asset     | 1 153     |   | 502         |   | 1 655     |  
|Intangible
      asset              | 13        |   | (13         | ) |          |  
|Deferred
      tax asset            | 611       |   | (5          | ) | 606       |  
|Liabilities:                        |           |   |             |   |           |  
|Current
      benefit liability     | (308      | ) |            |   | (308      | )
|Non-current
      benefit liability | (3 679    | ) | (593        | ) | (4 272    | )
|Shareholders equity:               |           |   |             |   |           |  
|AOCI                                | 1 144     |   | (50         | ) | 1 094     |  
|                                    |           |   |             |   |           |  

Deferred taxUnder IFRS, a provision is made on
unremitted earnings of controlled group companies to the extent that the distributions
are considered probable. US GAAP requires full provision to be made assuming
all earnings will be distributed, unless those earnings can be recovered tax-free
or will be permanently reinvested in the controlled group company.

Under IFRS, deferred tax on share-based compensation is provided based on the
actual tax credit expected to be received using the fair market value of the
share price at the year end (the intrinsic value). The deferred tax is credited
to the income statement to the extent of the tax recognised on the share-based
compensation charge with the excess recognised directly in equity. Under US GAAP,
upon adoption of FAS 123(R), Share Based Payments, deferred tax is
recognised to the extent of the cumulative amount of compensation cost recognised
through the income statement. Upon exercise, the deferred tax adjustment required
is recognised in the income statement or equity, dependent on whether a windfall
pool exists or not.



|130 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



34 Divergences from United States GAAP(continued)

Profit or loss on disposal of group companiesUnder both IFRS and US GAAP, Unilever
calculates profit or loss on sale of group companies net of goodwill included
on the balance sheet and after the write-back of cumulative currency retranslation
differences. Under previous GAAP, goodwill and intangible assets purchased prior
to 1 January 1998 were written off in the year of acquisition as a movement in
profits retained. Under US GAAP, such goodwill and intangible assets were capitalised
and, prior to 1 January 2002, were amortised over their useful lives. These different
accounting treatments give rise to differences between net profit or loss calculated
under IFRS and that calculated under US GAAP. In 2006, the additional goodwill
and intangibles recorded under US GAAP for disposals during the year means that
the
disposal profit was €167 million (2005: €217 million; 2004: €11
million) lower than that reported under IFRS.

Under IFRS, cumulative currency retranslation differences arising from the transition
date to IFRS of 1 January 2004 are included in the calculation whereas under
US GAAP the profit or loss on disposal includes cumulative currency retranslation
differences which have arisen since the date that the businesses were originally
acquired.

Currency retranslationUnder IFRS, the gain from cumulative
translation differences arising from the partial repayment of capital of a subsidiary
is recognised within the income statement. Under US GAAP, currency translation
gains and losses are only recycled to the income statement on the sale or upon
the complete or substantially complete liquidation of the investment.

Financial instrumentsFrom 1 January 2005, Unilever recognises
all derivative financial instruments on the balance sheet at fair value and applies
hedge accounting to a portion of its portfolio of derivative financial instruments,
meaning that changes in the fair value of derivative financial instruments that
are designated and effective as hedges of future cash flows are recognised directly
in equity and any ineffective portion is recognised immediately in the income
statement. This
is similar to requirements under FAS 133, Accounting for Derivatives and
Hedging Activities.

Prior to the adoption of IAS 32 and IAS 39 on 1 January 2005, Unilever applied
hedge accounting to its portfolio of derivative financial instruments, meaning
that changes in the value of forward exchange contracts were recognised in the
results in the same period as changes in the values of the assets and liabilities
they were intended to hedge. Interest payments and receipts arising from interest
rate derivatives such as swaps and forward rate agreements were matched to those
arising from underlying debt and investment positions. Payments made or received
in respect of the early termination of derivative instruments were spread over
the original life of the instrument so long as the underlying exposure continues
to exist.

Prior to 1 January 2005, Unilever had not designated any of its derivative financial
instruments as qualifying hedge instruments under FAS 133 and accordingly, under
US GAAP, all derivative financial instruments were valued at fair value with
changes in fair value reflected in the income statement.

Sale and leasebackThe test for determining if an asset
qualifies for treatment as a sale in a sale and leaseback transaction is stricter
under US GAAP than that under IFRS, in particular where the lessee has continuing
involvement. As a result, certain sale and leaseback transactions entered into
by Unilever are reversed for the purposes of US GAAP reporting.

OtherOther equity differences relate to
joint ventures and associates, biological assets, preference shares, borrowing
costs, outsourcing contracts, sale and leaseback and financial instruments. Other
net profit differences relate to biological assets, dividends on preference shares,
joint ventures and associates, borrowing costs and outsourcing contracts.

Share-based paymentsUnilever has adopted FAS 123(R) as
of 1 January 2006 on a prospective basis. Since the Group had already voluntarily
adopted the fair value measurements from FAS 123 in prior years, the adoption
of this Standard has had no material impact on the consolidated results from
operations and financial position of Unilever.

Recent accounting developmentsIn June 2006, the FASB issued FASB
Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes.
The provisions of FIN 48 will be effective for all outstanding tax positions
on adoption, which for Unilever is 1 January 2007. FIN 48 prescribes a recognition
threshold and measurement attribute for the financial statement recognition and
measurement of a tax position taken or expected to be taken in a tax return.
The impact of FIN 48 on the consolidated results of the operations and financial
position of Unilever is
currently being assessed by the Group.

In October 2006, FASB issued FAS 157, Fair Value Measurement. The
standard addresses how companies should measure fair value when they are required
to use a fair value measure for recognition or disclosure purposes, and move
toward a market-based measure instead of an entity-based measure, and expands
disclosure requirements about fair value measurements. The standard is effective
for fiscal years beginning after 15 November 2007 and will be adopted by Unilever
as at 1 January 2008. The impact of FAS 157 on the consolidated results of operations
and financial position of Unilever is currently being assessed by the Group.

In February 2006, the FASB issued FAS 155, Accounting for Certain Hybrid
Financial Instruments, an amendment of FAS 133 and FAS 140. This statement
simplifies accounting for certain hybrid financial instruments by permitting
fair value remeasurement for any hybrid financial instrument that contains an
embedded derivative that otherwise would require bifurcation. FAS 155 is effective
for Unilever for all financial instruments acquired, issued, or subject to a
remeasurement (new basis) event occurring after 1 January 2007. The adoption
is not expected to have a material effect on the consolidated results of operations
or financial position of Unilever.

In February 2007, the FASB issued FAS 159 The Fair Value Option for Financial
Assets and Financial Liabilities. The standard provides companies with
an option to report selected financial assets and liabilities at fair value.
FAS 159 is effective for fiscal years beginning after 15 November 2007, and will
be adopted by Unilever as at 1 January 2008. The impact on the consolidated results
of operations and financial position of Unilever is currently being assessed
by the Group.

Documents on display in the United StatesUnilever files and furnishes reports
and information with the United States Securities and Exchange Commission (SEC).
Such reports and information can be inspected
and copied at the SECs public reference facilities in Washington DC, Chicago
and New York. Certain of our reports and other information that we file or furnish
to the SEC are also available to the public over the internet on the SECs
website at www.sec.gov.



|UnileverAnnual Report on Form 20-F 2006 | 131
|--------------------------------------- | ---

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|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



35 Additional
  information for US investors

Presented below is additional information required for reporting in the United States, prepared on an IFRS basis:(i) Segment information; (ii) Summarised
presentation of the NV and PLC parts of the Group; and (iii) Guarantor statements.

(i) Segment information (prepared on an IFRS basis)Unilever has reviewed the extent
of its business with major customers, and has concluded that it has no customers
that would require separate disclosure during the reporting periods covered by
this filing.

For management reporting purposes, Unilever uses a number of measures of segment
performance at constant average rates of exchange (that is, the same rates as
in the preceding year). The internal management measure of profit that is most
consistent with operating profit reported in the accounts is Trading Result.
This differs from operating profit, mainly because Trading Result includes a
number of statistical and other adjustments including the application of an inflation
charge on working capital which is added back to arrive at operating profit.

|                                                | € million |   | € million |   | € million |   | € million |  
|----------------------------------------------- | --------- | - | --------- | - | --------- | - | --------- | -
|                                                |           |   | The       |   | Asia      |   |           |  
|Analysis
      by geographical segment          | Europe    |   | Americas  |   | Africa    |   | Total     |  
|                                                |           |   |           |   |           |   |           |  
|2006                                            |           |   |           |   |           |   |           |  
|Turnover                                        |           |   |           |   |           |   |           |  
|At constant 2005 exchange rates                 | 14 967    |   | 13 591    |   | 10 983    |   | 39 541    |  
|Exchange rate adjustments                       | 33        |   | 188       |   | (120      | ) | 101       |  
|                                                |           |   |           |   |           |   |           |  
|At current 2006 exchange rates                  | 15 000    |   | 13 779    |   | 10 863    |   | 39 642    |  
|                                                |           |   |           |   |           |   |           |  
|Trading
      result                            |           |   |           |   |           |   |           |  
|At constant 2005 exchange rates                 | 1 966     |   | 2 096     |   | 1 320     |   | 5 382     |  
|Exchange rate adjustments                       | 5         |   | 20        |   | (9        | ) | 16        |  
|                                                |           |   |           |   |           |   |           |  
|At current 2006 exchange rates                  | 1 971     |   | 2 116     |   | 1 311     |   | 5 398     |  
|Other adjustments                               |           |   |           |   |           |   | 10        |  
|                                                |           |   |           |   |           |   |           |  
|Operating
      profit                          |           |   |           |   |           |   | 5 408     |  
|                                                |           |   |           |   |           |   |           |  
|2005                                            |           |   |           |   |           |   |           |  
|Turnover                                        |           |   |           |   |           |   |           |  
|At constant 2004 exchange rates                 | 14 879    |   | 12 715    |   | 10 281    |   | 37 875    |  
|Exchange rate adjustments                       | 61        |   | 464       |   | 1         |   | 526       |  
|                                                |           |   |           |   |           |   |           |  
|At current 2005 exchange rates                  | 14 940    |   | 13 179    |   | 10 282    |   | 38 401    |  
|                                                |           |   |           |   |           |   |           |  
|Trading
      result                            |           |   |           |   |           |   |           |  
|At constant 2004 exchange rates                 | 2 101     |   | 1 942     |   | 1 234     |   | 5 277     |  
|Exchange rate adjustments                       | 6         |   | 58        |   | (3        | ) | 61        |  
|                                                |           |   |           |   |           |   |           |  
|At current 2005 exchange rates                  | 2 107     |   | 2 000     |   | 1 231     |   | 5 338     |  
|Other adjustments                               |           |   |           |   |           |   | (264      | )
|                                                |           |   |           |   |           |   |           |  
|Operating
      profit                          |           |   |           |   |           |   | 5 074     |  
|                                                |           |   |           |   |           |   |           |  
|2004                                            |           |   |           |   |           |   |           |  
|Turnover                                        |           |   |           |   |           |   |           |  
|At constant 2003 exchange rates                 | 15 246    |   | 13 380    |   | 10 122    |   | 38 748    |  
|Exchange rate adjustments                       | 6         |   | (1 084    | ) | (502      | ) | (1 580    | )
|                                                |           |   |           |   |           |   |           |  
|At current 2004 exchange rates                  | 15 252    |   | 12 296    |   | 9 620     |   | 37 168    |  
|                                                |           |   |           |   |           |   |           |  
|Trading
      result                            |           |   |           |   |           |   |           |  
|At constant 2003 exchange rates                 | 2 236     |   | 2 153     |   | 1 090     |   | 5 479     |  
|Exchange rate adjustments                       | 5         |   | (186      | ) | (57       | ) | (238      | )
|                                                |           |   |           |   |           |   |           |  
|At current 2004 exchange rates                  | 2 241     |   | 1 967     |   | 1 033     |   | 5 241     |  
|Other adjustments                               |           |   |           |   |           |   | (1 260    | )
|                                                |           |   |           |   |           |   |           |  
|Operating
      profit                          |           |   |           |   |           |   | 3 981     |  
|                                                |           |   |           |   |           |   |           |  
|Depreciation,
      amortisation and impairment |           |   |           |   |           |   |           |  
|2006                                            |           |   |           |   |           |   |           |  
|At constant 2005 exchange rates                 | (442      | ) | (313      | ) | (200      | ) | (955      | )
|Exchange rate adjustments                       | (1        | ) | (4        | ) | 2         |   | (3        | )
|                                                |           |   |           |   |           |   |           |  
|At current 2006 exchange rates                  | (443      | ) | (317      | ) | (198      | ) | (958      | )
|                                                |           |   |           |   |           |   |           |  
|2005                                            |           |   |           |   |           |   |           |  
|At constant 2004 exchange rates                 | (442      | ) | (630      | ) | (184      | ) | (1 256    | )
|Exchange rate adjustments                       |          |   | (8        | ) | (2        | ) | (10       | )
|                                                |           |   |           |   |           |   |           |  
|At current 2005 exchange rates                  | (442      | ) | (638      | ) | (186      | ) | (1 266    | )
|                                                |           |   |           |   |           |   |           |  
|2004                                            |           |   |           |   |           |   |           |  
|At constant 2003 exchange rates                 | (613      | ) | (1 236    | ) | (297      | ) | (2 146    | )
|Exchange rate adjustments                       |          |   | 116       |   | 14        |   | 130       |  
|                                                |           |   |           |   |           |   |           |  
|At current 2004 exchange rates                  | (613      | ) | (1 120    | ) | (283      | ) | (2 016    | )
|                                                |           |   |           |   |           |   |           |  



|132 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

---



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| |                                          
| | -----------------------------------------
| | Financial
          Statements(continued)
| |                                          

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



35 Additional information for US investors(continued)

(i) Segment information(continued)

|                                | € million |  | € million |  | € million |   | € million | 
|------------------------------- | --------- |  | --------- |  | --------- | - | --------- | 
|                                |           |  | The       |  | Asia      |   |           | 
|Capital
      expenditure       | Europe    |  | Americas  |  | Africa    |   | Total     | 
|                                |           |  |           |  |           |   |           | 
|2006                            |           |  |           |  |           |   |           | 
|At constant 2005 exchange rates | 507       |  | 389       |  | 296       |   | 1 192     | 
|Exchange rate adjustments       | 4         |  | 7         |  | (2        | ) | 9         | 
|                                |           |  |           |  |           |   |           | 
|At current 2006 exchange rates  | 511       |  | 396       |  | 294       |   | 1 201     | 
|                                |           |  |           |  |           |   |           | 
|2005                            |           |  |           |  |           |   |           | 
|At constant 2004 exchange rates | 446       |  | 291       |  | 298       |   | 1 035     | 
|Exchange rate adjustments       | 1         |  | 14        |  |          |   | 15        | 
|                                |           |  |           |  |           |   |           | 
|At current 2005 exchange rates  | 447       |  | 305       |  | 298       |   | 1 050     | 
|                                |           |  |           |  |           |   |           | 

|                                 |             |   |           |   |           |   |           |  
|-------------------------------- | ----------- | - | --------- | - | --------- | - | --------- | -
|                                 | € million   |   | € million |   | € million |   | € million |  
|                                 | United      |   |           |   |           |   |           |  
|                                 | Kingdom &   |   | United    |   |           |   |           |  
|Analysis by geographical area(a) | Netherlands |   | States    |   | Other     |   | Total     |  
|                                 |             |   |           |   |           |   |           |  
|Turnover                         |             |   |           |   |           |   |           |  
|2006                             |             |   |           |   |           |   |           |  
|At constant 2005 exchange rates  | 3 703       |   | 7 688     |   | 28 150    |   | 39 541    |  
|Exchange rate adjustments        | 7           |   | (61       | ) | 155       |   | 101       |  
|                                 |             |   |           |   |           |   |           |  
|At current 2006 exchange rates   | 3 710       |   | 7 627     |   | 28 305    |   | 39 642    |  
|                                 |             |   |           |   |           |   |           |  
|2005                             |             |   |           |   |           |   |           |  
|At constant 2004 exchange rates  | 3 700       |   | 7 587     |   | 26 588    |   | 37 875    |  
|Exchange rate adjustments        | (21         | ) | (37       | ) | 584       |   | 526       |  
|                                 |             |   |           |   |           |   |           |  
|At current 2005 exchange rates   | 3 679       |   | 7 550     |   | 27 172    |   | 38 401    |  
|                                 |             |   |           |   |           |   |           |  
|2004                             |             |   |           |   |           |   |           |  
|At constant 2003 exchange rates  | 3 779       |   | 8 093     |   | 26 876    |   | 38 748    |  
|Exchange rate adjustments        | 52          |   | (732      | ) | (900      | ) | (1 580    | )
|                                 |             |   |           |   |           |   |           |  
|At current 2004 exchange rates   | 3 831       |   | 7 361     |   | 25 976    |   | 37 168    |  
|                                 |             |   |           |   |           |   |           |  
|Property, plant and equipment    |             |   |           |   |           |   |           |  
|2006                             | 967         |   | 1 060     |   | 4 249     |   | 6 276     |  
|2005                             | 1 018       |   | 1 140     |   | 4 334     |   | 6 492     |  
|                                 |             |   |           |   |           |   |           |  

|(a) | For the United Kingdom and the Netherlands, which are the home countries of the parent companies, the combined operating profit in 2006 was €555 million (2005: €648 million; 2004: €667
million).
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|UnileverAnnual Report on Form 20-F 2006 | 133
|--------------------------------------- | ---

---



Back to Contents

|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



35 Additional information for US investors(continued)

(ii) Summarised presentation of the NV and PLC parts of the Group (prepared on an IFRS basis)

NV and PLC and their group companies constitute a single reporting entity for
the purposes of presenting consolidated accounts. The following supplemental
information shows the consolidated income statement and balance sheet of the
Group analysed according to the relative legal ownership of individual entities
by NV or PLC.



|                                               | € million |   | € million |   | € million |   | € million |   | € million |   | € million |  
|---------------------------------------------- | --------- | - | --------- | - | --------- | - | --------- | - | --------- | - | --------- | -
|                                               | NV        |   | NV        |   | NV        |   | PLC       |   | PLC       |   | PLC       |  
|Income statementfor the year ended 31 December | 2006      |   | 2005      |   | 2004      |   | 2006      |   | 2005      |   | 2004      |  
|                                               |           |   |           |   |           |   |           |   |           |   |           |  
|Continuing operations:                         |           |   |           |   |           |   |           |   |           |   |           |  
|                                               |           |   |           |   |           |   |           |   |           |   |           |  
|Turnover                                       | 27 376    |   | 26 479    |   | 25 328    |   | 12 266    |   | 11 922    |   | 11 840    |  
|                                               |           |   |           |   |           |   |           |   |           |   |           |  
|Operating profit                               | 3 608     |   | 3 552     |   | 2 666     |   | 1 800     |   | 1 522     |   | 1 315     |  
|Net finance costs                              | (686      | ) | (470      | ) | (375      | ) | (35       | ) | (143      | ) | (248      | )
|Share in net profit of joint ventures          | 59        |   | 35        |   | 30        |   | 19        |   | 12        |   | 9         |  
|Share in net profit of associates              |          |   | (12       | ) | 8         |   | 36        |   | (13       | ) | (6        | )
|Other income from non-current investments      | 13        |   | 20        |   | 35        |   | 17        |   | 13        |   | 19        |  
|                                               |           |   |           |   |           |   |           |   |           |   |           |  
|Profit before taxation                         | 2 994     |   | 3 125     |   | 2 364     |   | 1 837     |   | 1 391     |   | 1 089     |  
|Taxation                                       | (727      | ) | (774      | ) | (471      | ) | (419      | ) | (407      | ) | (254      | )
|                                               |           |   |           |   |           |   |           |   |           |   |           |  
|Net profit from continuing operations          | 2 267     |   | 2 351     |   | 1 893     |   | 1 418     |   | 984       |   | 835       |  
|Net profit from discontinued operations        | 836       |   | 455       |   | 131       |   | 494       |   | 185       |   | 82        |  
|                                               |           |   |           |   |           |   |           |   |           |   |           |  
|Net profit                                     | 3 103     |   | 2 806     |   | 2 024     |   | 1 912     |   | 1 169     |   | 917       |  
|                                               |           |   |           |   |           |   |           |   |           |   |           |  
|Attributable to:                               |           |   |           |   |           |   |           |   |           |   |           |  
|Minority interest                              | 66        |   | 57        |   | 56        |   | 204       |   | 152       |   | 130       |  
|Shareholders equity                           | 3 037     |   | 2 749     |   | 1 968     |   | 1 708     |   | 1 017     |   | 787       |  
|                                               |           |   |           |   |           |   |           |   |           |   |           |  



|                                                    | € million |   | € million |   |  |  | € million |   | € million |  
|--------------------------------------------------- | --------- | - | --------- | - |  |  | --------- | - | --------- | -
|                                                    | NV        |   | NV        |   |  |  | PLC       |   | PLC       |  
|Balance sheetas at 31 December                      | 2006      |   | 2005      |   |  |  | 2006      |   | 2005      |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Goodwill and intangible assets                      | 12 569    |   | 14 152    |   |  |  | 4 637     |   | 3 903     |  
|Property, plant and equipment                       | 3 642     |   | 4 321     |   |  |  | 2 634     |   | 2 171     |  
|Pension asset for funded schemes in surplus         | 1 484     |   | 966       |   |  |  | 213       |   | 70        |  
|Deferred tax assets                                 | 755       |   | 961       |   |  |  | 511       |   | 742       |  
|Other non-current assets                            | 723       |   | 695       |   |  |  | 403       |   | 377       |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Total non-current assets                            | 19 173    |   | 21 095    |   |  |  | 8 398     |   | 7 263     |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Inventories                                         | 2 141     |   | 2 661     |   |  |  | 1 655     |   | 1 446     |  
|Trade and other current receivables                 | 2 744     |   | 3 628     |   |  |  | 1 546     |   | 1 202     |  
|Cash and cash equivalents                           | 565       |   | 941       |   |  |  | 474       |   | 588       |  
|Other financial assets                              | 143       |   | 317       |   |  |  | 219       |   | 142       |  
|Assets held for sale                                | 7         |   | 166       |   |  |  | 7         |   | 51        |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Total current assets                                | 5 600     |   | 7 713     |   |  |  | 3 901     |   | 3 429     |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Borrowings due within one year                      | (3 925    | ) | (5 506    | ) |  |  | (437      | ) | (436      | )
|Trade payables and other current liabilities        | (5 469    | ) | (6 114    | ) |  |  | (3 044    | ) | (2 668    | )
|Provisions                                          | (806      | ) | (460      | ) |  |  | (203      | ) | (184      | )
|Liabilities associated with assets held for sale    |          |   | (16       | ) |  |  |          |   | (10       | )
|                                                    |           |   |           |   |  |  |           |   |           |  
|Total current liabilities                           | (10 200   | ) | (12 096   | ) |  |  | (3 684    | ) | (3 298    | )
|                                                    |           |   |           |   |  |  |           |   |           |  
|Net current assets/(liabilities)                    | (4 600    | ) | (4 383    | ) |  |  | 217       |   | 131       |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Total assets less current liabilities               | 14 573    |   | 16 712    |   |  |  | 8 615     |   | 7 394     |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Borrowings due after more than one year             | 3 172     |   | 5 484     |   |  |  | 1 067     |   | 973       |  
|Pension and post-retirement healthcare liabilities: |           |   |           |   |  |  |           |   |           |  
|Funded schemes in deficit                           | 465       |   | 757       |   |  |  | 914       |   | 1 658     |  
|Unfunded schemes                                    | 2 097     |   | 3 040     |   |  |  | 1 301     |   | 1 162     |  
|Provisions                                          | 674       |   | 635       |   |  |  | 152       |   | 97        |  
|Deferred tax liabilities                            | 888       |   | 770       |   |  |  | 115       |   | 163       |  
|Other non-current liabilities                       | 247       |   | 338       |   |  |  | 424       |   | 264       |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Total non-current liabilities                       | 7 543     |   | 11 024    |   |  |  | 3 973     |   | 4 317     |  
|Intra-group  NV/PLC                                | (368      | ) | (1 932    | ) |  |  | 368       |   | 1 932     |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Shareholders equity                                | 7 360     |   | 7 571     |   |  |  | 3 870     |   | 790       |  
|Minority interests                                  | 38        |   | 49        |   |  |  | 404       |   | 355       |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Total equity                                        | 7 398     |   | 7 620     |   |  |  | 4 274     |   | 1 145     |  
|                                                    |           |   |           |   |  |  |           |   |           |  
|Total capital employed                              | 14 573    |   | 16 712    |   |  |  | 8 615     |   | 7 394     |  
|                                                    |           |   |           |   |  |  |           |   |           |  



|134 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

---



Back to Contents

| |                                            
| | -------------------------------------------
| | Financial
            Statements(continued)
| |                                            

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



35 Additional information for US investors(continued)

(iii) Guarantor statements (prepared on an IFRS basis)

On 2 October 2000, NV and Unilever Capital Corporation (UCC) filed a US $15
billion Shelf registration, which is unconditionally and fully guaranteed, jointly
and severally, by NV, PLC and Unilever United States,
Inc. (UNUS). Of the US $15 billion Shelf registration, US $2.75 billion
of Notes were outstanding at 31 December 2006 (2005: US $2.75 billion; 2004:
US $4.25 billion) with coupons ranging from 5.90% to 7.125%. These Notes
are
repayable between 1 November 2010 and 15 November 2032.

Provided below are the income statements, cash flow statements and balance sheets
of each of the companies discussed above, together with the income statement,
cash flow statement and balance sheet of non-guarantor subsidiaries. These have
been prepared under the historical cost convention, and, aside from the basis
of accounting for investments at net asset value (equity accounting), comply
in all material respects with International Financial Reporting Standards. We
have not provided reconciliations from the accounting principles used by Unilever
to US GAAP for the columns relating to the guarantor entities, as such reconciliations
would not materially affect an investors understanding of the nature of
this guarantee. The financial information in respect of NV, PLC and UNUS has
been prepared with all subsidiaries accounted for on an equity basis. The financial
information in respect of the non-guarantor subsidiaries has been prepared on
a consolidated basis.



|                                                     | € million   |   | € million       |   | € million               |   | € million           |   | € million         |   | € million        |   | € million        |  
|---------------------------------------------------- | ----------- | - | --------------- | - | ----------------------- | - | ------------------- | - | ----------------- | - | ---------------- | - | ---------------- | -
|                                                     | Unilever    |   | Unilever        |   |                         |   | Unilever            |   |                   |   |                  |   |                  |  
|                                                     | Capital     |   | N.V.            |   |                         |   | United              |   |                   |   |                  |   |                  |  
|                                                     | Corporation |   | parent          |   | Unilever
        PLC    |   | States
        Inc. |   | Non-              |   |                  |   |                  |  
|Income
          statement                           | subsidiary  |   | issuer/         |   | parent                  |   | subsidiary          |   | guarantor         |   |                  |   | Unilever         |  
|for the
        year ended 31 December 2006          | issuer      |   | guarantor       |   | guarantor               |   | guarantor           |   | subsidiaries      |   | Eliminations     |   | Group            |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Continuing
          operations:                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Turnover                                             |            |   |                |   |                        |   |                    |   | 39
          642  |   |                 |   | 39
    642       |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Operating
          profit                           | (1          | ) | (126            | ) | (108                    | ) | (16                 | ) | 5
          659   |   |                 |   | 5
    408        |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Finance
        income                               |            |   | 38              |   | 5                       |   | 1                   |   | 84                |   |                 |   | 128              |  
|Finance
        costs                                | (169        | ) | (662            | ) |                        |   |                    |   | (59               | ) |                 |   | (890             | )
|Pensions
        and similar obligations             |            |   | (5              | ) |                        |   | (61                 | ) | 107               |   |                 |   | 41               |  
|Intercompany
        finance costs                   | 187         |   | 805             |   | (20                     | ) | (29                 | ) | (943              | ) |                 |   |                 |  
|Dividends                                            |            |   | 1
    916       |   | 1
          337         |   |                    |   | (3
          253) |   |                 |   |                 |  
|Share
        of net profit/(loss) of joint ventures |            |   |                |   |                        |   |                    |   | 78                |   |                 |   | 78               |  
|Share
        of net profit/(loss) of associates     |            |   |                |   |                        |   |                    |   | 36                |   |                 |   | 36               |  
|Other
        income from non-current investments    |            |   |                |   |                        |   |                    |   | 30                |   |                 |   | 30               |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Profit
          before taxation                     | 17          |   | 1
          966 |   | 1
                  214 |   | (105                | ) | 1
          739   |   |                 |   | 4
    831        |  
|Taxation                                             | (6          | ) | (119            | ) | 16                      |   | 76                  |   | (1
          113  | ) |                 |   | (1
          146 | )
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Net
          profit from continuing operations      | 11          |   | 1
          847 |   | 1
          230         |   | (29                 | ) | 626               |   |                 |   | 3
    685        |  
|Net profit
        from discontinued operations      |            |   |                |   | 180                     |   |                    |   | 1
          150   |   |                 |   | 1
    330        |  
|Equity
        earnings of subsidiaries              |            |   | 2
          898 |   | 3
          335         |   | 567                 |   |                  |   | (6
          800 | ) |                 |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Net
          profit                                 | 11          |   | 4
    745       |   | 4
          745         |   | 538                 |   | 1
          776   |   | (6
          800 | ) | 5
    015        |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Attributable
        to:                             |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Minority
        interest                            |            |   |                |   |                        |   |                    |   | 270               |   |                 |   | 270              |  
|Shareholders equity                                 | 11          |   | 4
          745 |   | 4
          745         |   | 538                 |   | 1
          506   |   | (6
          800 | ) | 4
    745        |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Income
          statement                           |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|for the
        year ended 31 December 2005          |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Continuing
          operations:                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Turnover                                             |            |   |                |   |                        |   |                    |   | 38
        401    |   |                 |   | 38
    401       |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Operating
          profit                           |            |   | 87              |   | (61                     | ) | (3                  | ) | 5
        051     |   |                 |   | 5
    074        |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Finance
        income                               |            |   | 61              |   | 11                      |   |                    |   | 57                |   |                 |   | 129              |  
|Finance
        costs                                | (241        | ) | (274            | ) | (2                      | ) | (3                  | ) | (169              | ) |                 |   | (689             | )
|Pensions
        and similar obligations             |            |   | (5              | ) |                        |   | (61                 | ) | 13                |   |                 |   | (53              | )
|Intercompany
        finance costs                   | 256         |   | 509             |   | (11                     | ) | (40                 | ) | (714              | ) |                 |   |                 |  
|Dividends                                            |            |   | 1
        043   |   | 856                     |   |                    |   | (1
        899    | ) |                 |   |                 |  
|Share
        of net profit/(loss) of joint ventures |            |   |                |   |                        |   |                    |   | 47                |   |                 |   | 47               |  
|Share
        of net profit/(loss) of associates     |            |   |                |   |                        |   |                    |   | (25               | ) |                 |   | (25              | )
|Other
        income from non-current investments    |            |   |                |   |                        |   |                    |   | 33                |   |                 |   | 33               |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Profit
          before taxation                     | 15          |   | 1
        421   |   | 793                     |   | (107                | ) | 2
        394     |   |                 |   | 4
    516        |  
|Taxation                                             | (5          | ) | (118            | ) | 36                      |   | 45                  |   | (1
        139    | ) |                 |   | (1
        181   | )
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Net
          profit from continuing operations      | 10          |   | 1
        303   |   | 829                     |   | (62                 | ) | 1
    255         |   |                 |   | 3
    335        |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Net profit
        from discontinued operations      |            |   |                |   |                        |   |                    |   | 640               |   |                 |   | 640              |  
|Equity
        earnings of subsidiaries              |            |   | 2
    463       |   | 2
        937           |   | 732                 |   |                  |   | (6
        132   | ) |                 |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Net
          profit                                 | 10          |   | 3
    766       |   | 3
        766           |   | 670                 |   | 1
    895         |   | (6
        132   | ) | 3
    975        |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Attributable
        to:                             |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  
|Minority
        interest                            |            |   |                |   |                        |   |                    |   | 209               |   |                 |   | 209              |  
|Shareholders equity                                 | 10          |   | 3
        766   |   | 3
        766           |   | 670                 |   | 1
    686         |   | (6
        132   | ) | 3
    766        |  
|                                                     |             |   |                 |   |                         |   |                     |   |                   |   |                  |   |                  |  



|UnileverAnnual Report on Form 20-F 2006 | 135
|--------------------------------------- | ---

---



Back to Contents

|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



35 Additional information for US investors(continued)

(iii) Guarantor statements(continued)

|                                             | € million   |   | € million |   | € million    |   | € million   |   | € million    |   | € million    |   | € million |  
|-------------------------------------------- | ----------- | - | --------- | - | ------------ | - | ----------- | - | ------------ | - | ------------ | - | --------- | -
|                                             | Unilever    |   | Unilever  |   |              |   | Unilever    |   |              |   |              |   |           |  
|                                             | Capital     |   | N.V.      |   |              |   | United      |   |              |   |              |   |           |  
|                                             | Corporation |   | parent    |   | Unilever PLC |   | States Inc. |   | Non-         |   |              |   |           |  
|Income statement                             | subsidiary  |   | issuer/   |   | parent       |   | subsidiary  |   | guarantor    |   |              |   | Unilever  |  
|for the year ended 31 December 2004          | issuer      |   | guarantor |   | guarantor    |   | guarantor   |   | subsidiaries |   | Eliminations |   | Group     |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Continuing operations:                       |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Turnover                                     |            |   |          |   |             |   |            |   | 37 168       |   |             |   | 37 168    |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Operating profit                             |            |   | 59        |   | 33           |   | 6           |   | 3 883        |   |             |   | 3 981     |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Finance income                               |            |   | 26        |   | 6            |   |            |   | 113          |   |             |   | 145       |  
|Finance costs                                | (282        | ) | (160      | ) | (2           | ) | (3          | ) | (267         | ) |             |   | (714      | )
|Pensions and similar obligations             |            |   | (6        | ) |             |   | (10         | ) | (38          | ) |             |   | (54       | )
|Intercompany finance costs                   | 296         |   | 211       |   | (3           | ) | (22         | ) | (482         | ) |             |   |           |  
|Dividends                                    |            |   | 1 960     |   | 770          |   |            |   | (2 730       | ) |             |   |          |  
|Share of net profit/(loss) of joint ventures |            |   |          |   |             |   |            |   | 39           |   |             |   | 39        |  
|Share of net profit/(loss) of associates     |            |   |          |   |             |   |            |   | 2            |   |             |   | 2         |  
|Other income from non-current investments    |            |   |          |   |             |   |            |   | 54           |   |             |   | 54        |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Profit before taxation                       | 14          |   | 2 090     |   | 804          |   | (29         | ) | 574          |   |             |   | 3 453     |  
|Taxation                                     | (5          | ) | 35        |   | 16           |   | 11          |   | (782         | ) |             |   | (725      | )
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net profit from continuing operations        | 9           |   | 2 125     |   | 820          |   | (18         | ) | (208         | ) |             |   | 2 728     |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net profit from discontinued operations      |            |   |          |   |             |   |            |   | 213          |   |             |   | 213       |  
|Equity earnings of subsidiaries              |            |   | 630       |   | 1 935        |   | (76         | ) |             |   | (2 489       | ) |          |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net profit                                   | 9           |   | 2 755     |   | 2 755        |   | (94         | ) | 5            |   | (2 489       | ) | 2 941     |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Attributable to:                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Minority interest                            |            |   |          |   |             |   |            |   | 186          |   |             |   | 186       |  
|Shareholders equity                         | 9           |   | 2 755     |   | 2 755        |   | (94         | ) | (181         | ) | (2 489       | ) | 2 755     |  
|                                             |             |   |           |   |              |   |             |   |              |   |              |   |           |  



|136 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

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Back to Contents

| |                                            
| | -------------------------------------------
| | Financial
            Statements(continued)
| |                                            

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



35 Additional information for US investors(continued)

(iii) Guarantor statements(continued)

|                                                 | € million   |   | € million |   | € million    |   | € million   |   | € million    |   | € million    |   | € million |  
|------------------------------------------------ | ----------- | - | --------- | - | ------------ | - | ----------- | - | ------------ | - | ------------ | - | --------- | -
|                                                 | Unilever    |   | Unilever  |   |              |   | Unilever    |   |              |   |              |   |           |  
|                                                 | Capital     |   | N.V.      |   |              |   | United      |   |              |   |              |   |           |  
|                                                 | Corporation |   | parent    |   | Unilever PLC |   | States Inc. |   | Non-         |   |              |   |           |  
|                                                 | subsidiary  |   | issuer/   |   | parent       |   | subsidiary  |   | guarantor    |   |              |   | Unilever  |  
|Balance sheetas at 31 December 2006              | issuer      |   | guarantor |   | guarantor    |   | guarantor   |   | subsidiaries |   | Eliminations |   | Group     |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Goodwill and intangible assets                   |            |   | 53        |   | 46           |   |            |   | 17 107       |   |             |   | 17 206    |  
|Property, plant and equipment                    |            |   |          |   |             |   | 8           |   | 6 268        |   |             |   | 6 276     |  
|Pension asset for funded schemes in surplus      |            |   |          |   |             |   | 83          |   | 1 614        |   |             |   | 1 697     |  
|Deferred tax assets                              |            |   |          |   |             |   | 941         |   | 325          |   |             |   | 1 266     |  
|Other non-current assets                         |            |   |          |   |             |   | 9           |   | 1 117        |   |             |   | 1 126     |  
|Amounts due from group companies after one year  | 2 567       |   | 2 269     |   | 67           |   |            |   | (4 903       | ) |             |   |          |  
|Net assets of subsidiaries (equity accounted)    |            |   | 28 775    |   | 12 453       |   | 5 946       |   | (29 790      | ) | (17 384      | ) |          |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total non-current assets                         | 2 567       |   | 31 097    |   | 12 566       |   | 6 987       |   | (8 262       | ) | (17 384      | ) | 27 571    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Inventories                                      |            |   |          |   |             |   |            |   | 3 796        |   |             |   | 3 796     |  
|Amounts due from group companies within one year |            |   | 3 289     |   | 163          |   |            |   | (3 452       | ) |             |   |          |  
|Trade and other current receivables              |            |   | 445       |   | 34           |   | 7           |   | 3 804        |   |             |   | 4 290     |  
|Current tax assets                               |            |   |          |   |             |   | 40          |   | 85           |   |             |   | 125       |  
|Other financial assets                           |            |   |          |   |             |   |            |   | 237          |   |             |   | 237       |  
|Cash and cash equivalents                        |            |   | 7         |   |             |   | (5          | ) | 1 037        |   |             |   | 1 039     |  
|Assets held for sale                             |            |   |          |   |             |   |            |   | 14           |   |             |   | 14        |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total current assets                             |            |   | 3 741     |   | 197          |   | 42          |   | 5 521        |   |             |   | 9 501     |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Borrowings due within one year                   | (258        | ) | (1 503    | ) |             |   |            |   | (2 601       | ) |             |   | (4 362    | )
|Amounts due to group companies within one year   |            |   | (18 490   | ) | (1 363       | ) |            |   | 19 853       |   |             |   |          |  
|Provisions                                       |            |   |          |   |             |   | (1          | ) | (1 008       | ) |             |   | (1 009    | )
|Trade payables and other current liabilities     | (22         | ) | (612      | ) | (39          | ) | (7          | ) | (7 254       | ) |             |   | (7 934    | )
|Current tax liabilities                          | (6          | ) | (38       | ) | (121         | ) |            |   | (414         | ) |             |   | (579      | )
|Liabilities held for sale                        |            |   |          |   |             |   |            |   |             |   |             |   |          |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total current liabilities                        | (286        | ) | (20 643   | ) | (1 523       | ) | (8          | ) | 8 576        |   |             |   | (13 884   | )
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net current assets/(liabilities)                 | (286        | ) | (16 902   | ) | (1 326       | ) | 34          |   | 14 097       |   |             |   | (4 383    | )
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total assets less current liabilities            | 2 281       |   | 14 195    |   | 11 240       |   | 7 021       |   | 5 835        |   | (17 384      | ) | 23 188    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Borrowings due after one year                    | 2 066       |   | 866       |   |             |   |            |   | 1 307        |   |             |   | 4 239     |  
|Amounts due to group companies after one year    |            |   | 1 522     |   |             |   | 279         |   | (1 801       | ) |             |   |          |  
|Pension liability for funded schemes in deficit  |            |   |          |   |             |   | 133         |   | 1 246        |   |             |   | 1 379     |  
|Pension liability for unfunded schemes           |            |   | 149       |   |             |   | 879         |   | 2 370        |   |             |   | 3 398     |  
|Provisions                                       |            |   | 340       |   |             |   | 2           |   | 484          |   |             |   | 826       |  
|Deferred tax liabilities                         |            |   | 27        |   | 10           |   | 62          |   | 904          |   |             |   | 1 003     |  
|Other non-current liabilities                    |            |   | 61        |   |             |   | 193         |   | 417          |   |             |   | 671       |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total non-current liabilities                    | 2 066       |   | 2 965     |   | 10           |   | 1 548       |   | 4 927        |   |             |   | 11 516    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Shareholders equity attributable to:            |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|PLC                                              |            |   | 3 807     |   |             |   |            |   |             |   | (3 807       | ) |          |  
|NV                                               |            |   |          |   | 7 423        |   |            |   |             |   | (7 423       | ) |          |  
|Called up share capital                          |            |   | 274       |   | 210          |   |            |   |             |   |             |   | 484       |  
|Share premium account                            |            |   | 25        |   | 140          |   |            |   |             |   |             |   | 165       |  
|Other reserves                                   | (4          | ) | (1 280    | ) | (863         | ) | (467        | ) | (418         | ) | 889          |   | (2 143    | )
|Retained profit                                  | 219         |   | 8 404     |   | 4 320        |   | 5 940       |   | 884          |   | (7 043       | ) | 12 724    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total shareholders equity                       | 215         |   | 11 230    |   | 11 230       |   | 5 473       |   | 466          |   | (17 384      | ) | 11 230    |  
|Minority interests                               |            |   |          |   |             |   |            |   | 442          |   |             |   | 442       |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total equity                                     | 215         |   | 11 230    |   | 11 230       |   | 5 473       |   | 908          |   | (17 384      | ) | 11 672    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total capital employed                           | 2 281       |   | 14 195    |   | 11 240       |   | 7 021       |   | 5 835        |   | (17 384      | ) | 23 188    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  



|UnileverAnnual Report on Form 20-F 2006 | 137
|--------------------------------------- | ---

---



Back to Contents

|                                            | 
|------------------------------------------- | 
|Financial
            Statements(continued) | 
|                                            | 

|Notes to the consolidated
        accountsUnilever
        Group
|----------------------------------------------------------------
|                                                                



35 Additional information for US investors(continued)

(iii) Guarantor statements(continued)

|                                                 | € million   |   | € million |   | € million    |   | € million   |   | € million    |   | € million    |   | € million |  
|------------------------------------------------ | ----------- | - | --------- | - | ------------ | - | ----------- | - | ------------ | - | ------------ | - | --------- | -
|                                                 | Unilever    |   | Unilever  |   |              |   | Unilever    |   |              |   |              |   |           |  
|                                                 | Capital     |   | N.V.      |   |              |   | United      |   |              |   |              |   |           |  
|                                                 | Corporation |   | parent    |   | Unilever PLC |   | States Inc. |   | Non-         |   |              |   |           |  
|                                                 | subsidiary  |   | issuer/   |   | parent       |   | subsidiary  |   | guarantor    |   |              |   | Unilever  |  
|Balance sheetas at 31 December 2005              | issuer      |   | guarantor |   | guarantor    |   | guarantor   |   | subsidiaries |   | Eliminations |   | Group     |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Goodwill and intangible assets                   |            |   | 32        |   | 54           |   |            |   | 17 969       |   |             |   | 18 055    |  
|Property, plant and equipment                    |            |   |          |   |             |   | 6           |   | 6 486        |   |             |   | 6 492     |  
|Pension asset for funded schemes in surplus      |            |   |          |   |             |   | 67          |   | 969          |   |             |   | 1 036     |  
|Deferred tax assets                              |            |   |          |   |             |   | 1 012       |   | 691          |   |             |   | 1 703     |  
|Other non-current assets                         |            |   | 16        |   |             |   | 11          |   | 1 045        |   |             |   | 1 072     |  
|Amounts due from group companies after one year  | 2 512       |   | 6 628     |   | 102          |   | 1 281       |   | (10 523      | ) |             |   |          |  
|Net assets of subsidiaries (equity accounted)    |            |   | 11 176    |   | 9 823        |   | 6 234       |   | (14 593      | ) | (12 640      | ) |          |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total non-current assets                         | 2 512       |   | 17 852    |   | 9 979        |   | 8 611       |   | 2 044        |   | (12 640      | ) | 28 358    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Inventories                                      |            |   |          |   |             |   |            |   | 4 107        |   |             |   | 4 107     |  
|Amounts due from group companies within one year |            |   | 19 619    |   | 294          |   |            |   | (19 913      | ) |             |   |          |  
|Trade and other current receivables              |            |   | 635       |   | 1            |   | 34          |   | 4 160        |   |             |   | 4 830     |  
|Current tax assets                               |            |   |          |   |             |   | 43          |   | 81           |   |             |   | 124       |  
|Other financial assets                           |            |   |          |   |             |   |            |   | 335          |   |             |   | 335       |  
|Cash and cash equivalents                        | 35          |   | 163       |   |             |   | (3          | ) | 1 334        |   |             |   | 1 529     |  
|Assets held for sale                             |            |   |          |   |             |   |            |   | 217          |   |             |   | 217       |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total current assets                             | 35          |   | 20 417    |   | 295          |   | 74          |   | (9 679       | ) |             |   | 11 142    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Borrowings due within one year                   |            |   | (4 548    | ) |             |   |            |   | (1 394       | ) |             |   | (5 942    | )
|Amounts due to group companies within one year   |            |   | (22 027   | ) | (1 871       | ) |            |   | 23 898       |   |             |   |          |  
|Provisions                                       |            |   | (16       | ) |             |   | (5          | ) | (623         | ) |             |   | (644      | )
|Trade payables and other current liabilities     | (31         | ) | (514      | ) | (4           | ) | (100        | ) | (7 579       | ) |             |   | (8 228    | )
|Current tax liabilities                          |            |   | (20       | ) | (26          | ) |            |   | (508         | ) |             |   | (554      | )
|Liabilities held for sale                        |            |   |          |   |             |   |            |   | (26          | ) |             |   | (26       | )
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total current liabilities                        | (31         | ) | (27 125   | ) | (1 901       | ) | (105        | ) | 13 768       |   |             |   | (15 394   | )
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net current assets/(liabilities)                 | 4           |   | (6 708    | ) | (1 606       | ) | (31         | ) | 4 089        |   |             |   | (4 252    | )
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total assets less current liabilities            | 2 516       |   | 11 144    |   | 8 373        |   | 8 580       |   | 6 133        |   | (12 640      | ) | 24 106    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Borrowings due after one year                    | 2 296       |   | 2 442     |   |             |   |            |   | 1 719        |   |             |   | 6 457     |  
|Amounts due to group companies after one year    |            |   |          |   |             |   |            |   |             |   |             |   |          |  
|Pension liability for funded schemes in deficit  |            |   |          |   |             |   | 372         |   | 2 043        |   |             |   | 2 415     |  
|Pension liability for unfunded schemes           |            |   | 159       |   |             |   | 1 260       |   | 2 783        |   |             |   | 4 202     |  
|Provisions                                       |            |   | 32        |   |             |   | 3           |   | 697          |   |             |   | 732       |  
|Deferred tax liabilities                         |            |   | 94        |   | 12           |   |            |   | 827          |   |             |   | 933       |  
|Other non-current liabilities                    |            |   | 56        |   |             |   | 202         |   | 344          |   |             |   | 602       |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total non-current liabilities                    | 2 296       |   | 2 783     |   | 12           |   | 1 837       |   | 8 413        |   |             |   | 15 341    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Shareholders equity attributable to:            |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|PLC                                              |            |   | 790       |   |             |   |            |   |             |   | (790         | ) |          |  
|NV                                               |            |   |          |   | 7 571        |   |            |   |             |   | (7 571       | ) |          |  
|Called up share capital                          |            |   | 290       |   | 222          |   |            |   |             |   |             |   | 512       |  
|Share premium account                            |            |   | 25        |   | 137          |   |            |   |             |   |             |   | 162       |  
|Other reserves                                   | (5          | ) | (1 465    | ) | (863         | ) | (291        | ) | (393         | ) | 689          |   | (2 328    | )
|Retained profit                                  | 225         |   | 8 721     |   | 1 294        |   | 7 034       |   | (2 291       | ) | (4 968       | ) | 10 015    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total shareholders equity                       | 220         |   | 8 361     |   | 8 361        |   | 6 743       |   | (2 684       | ) | (12 640      | ) | 8 361     |  
|Minority interests                               |            |   |          |   |             |   |            |   | 404          |   |             |   | 404       |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total equity                                     | 220         |   | 8 361     |   | 8 361        |   | 6 743       |   | (2 280       | ) | (12 640      | ) | 8 765     |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Total capital employed                           | 2 516       |   | 11 144    |   | 8 373        |   | 8 580       |   | 6 133        |   | (12 640      | ) | 24 106    |  
|                                                 |             |   |           |   |              |   |             |   |              |   |              |   |           |  



|138 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

---



Back to Contents

| |                                           
| | ------------------------------------------
| | Financial
          Statements (continued)
| |                                           

|Notes to the consolidated accounts Unilever Group
|-------------------------------------------------
|                                                 



35 Additional information for US investors(continued)

(iii) Guarantor statements(continued)

|                                                  | € million   |   | € million |   | € million    |   | € million   |   | € million    |   | € million    |   | € million |  
|------------------------------------------------- | ----------- | - | --------- | - | ------------ | - | ----------- | - | ------------ | - | ------------ | - | --------- | -
|                                                  | Unilever    |   | Unilever  |   |              |   | Unilever    |   |              |   |              |   |           |  
|                                                  | Capital     |   | N.V.      |   |              |   | United      |   |              |   |              |   |           |  
|                                                  | Corporation |   | parent    |   | Unilever PLC |   | States Inc. |   | Non-         |   |              |   |           |  
|Cash flow statement                               | subsidiary  |   | issuer/   |   | parent       |   | subsidiary  |   | guarantor    |   |              |   | Unilever  |  
|for the year ended 31 December 2006               | issuer      |   | guarantor |   | guarantor    |   | guarantor   |   | subsidiaries |   | Eliminations |   | Group     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash flow from operating activities               | 1           |   | (336      | ) | (17          | ) | (408        | ) | 6 334        |   |             |   | 5 574     |  
|Income tax paid                                   |            |   | (163      | ) | 42           |   | (33         | ) | (909         | ) |             |   | (1 063    | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from operating activities           | 1           |   | (499      | ) | 25           |   | (441        | ) | 5 425        |   |             |   | 4 511     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Interest received                                 | 187         |   | 995       |   | 5            |   |            |   | 33           |   | (1 095       | ) | 125       |  
|Net capital expenditure                           |            |   | (28       | ) |             |   | (3          | ) | (903         | ) |             |   | (934      | )
|Acquisitions and disposals                        |            |   |          |   | 212          |   |            |   | 1 565        |   |             |   | 1 777     |  
|Other investing activities                        | (324        | ) | 3 799     |   |             |   | 480         |   | (7 302       | ) | 3 534        |   | 187       |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from/(used in) investing activities | (137        | ) | 4 766     |   | 217          |   | 477         |   | (6 607       | ) | 2 439        |   | 1 155     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Dividends paid on ordinary share capital          |            |   | 460       |   | 154          |   |            |   | (3 216       | ) |             |   | (2 602    | )
|Interest and preference dividends paid            | (170        | ) | (349      | ) | (20          | ) | (28         | ) | (1 133       | ) | 1 095        |   | (605      | )
|Change in borrowings and finance leases           | 274         |   | (4 621    | ) | (420         | ) |            |   | 5 020        |   | (3 534       | ) | (3 281    | )
|Movement on treasury stock                        |            |   | 88        |   | 48           |   | 15          |   | 23           |   |             |   | 98        |  
|Other finance activities                          |            |   |          |   |             |   |            |   | (182         | ) |             |   | (182      | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from/(used in) financing activities | 104         |   | (4 422    | ) | (238         | ) | (43         | ) | 466          |   | (2 439       | ) | (6 572    | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net increase/(decrease) in cash and               |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|cash equivalents                                  | (32         | ) | (155      | ) | 4            |   | (7          | ) | (716         | ) |             |   | (906      | )
|Cash and cash equivalents at the beginning        |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|of the year                                       | 35          |   | 162       |   |             |   | (3          | ) | 1 071        |   |             |   | 1 265     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Effect of foreign exchange rate changes           | (3          | ) |          |   |             |   | 5           |   | 349          |   |             |   | 351       |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash and cash equivalents at the end of the year  |            |   | 7         |   | 4            |   | (5          | ) | 704          |   |             |   | 710       |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash flow statement                               |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|for the year ended 31 December 2005               |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash flow from operating activities               |            |   | (5        | ) | (156         | ) | 33          |   | 6 052        |   |             |   | 5 924     |  
|Income tax paid                                   |            |   | (86       | ) | (19          | ) | (177        | ) | (1 289       | ) |             |   | (1 571    | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from operating activities           |            |   | (91       | ) | (175         | ) | (144        | ) | 4 763        |   |             |   | 4 353     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Interest received                                 | 253         |   | 285       |   | 10           |   |            |   | (106         | ) | (312         | ) | 130       |  
|Net capital expenditure                           |            |   | (24       | ) | (3           | ) | (2          | ) | (784         | ) |             |   | (813      | )
|Acquisitions and disposals                        |            |   |          |   |             |   |            |   | 784          |   |             |   | 784       |  
|Other investing activities                        | 1 796       |   | (689      | ) |             |   | 189         |   | 443          |   | (1 325       | ) | 414       |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from/(used in) investing activities | 2 049       |   | (428      | ) | 7            |   | 187         |   | 337          |   | (1 637       | ) | 515       |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Dividends paid on ordinary share capital          |            |   | 28        |   | 37           |   |            |   | (1 869       | ) |             |   | (1 804    | )
|Interest and preference dividends paid            | (253        | ) | (181      | ) | (7           | ) | (43         | ) | (471         | ) | 312          |   | (643      | )
|Change in borrowings and finance leases           | (1 774      | ) | 1 623     |   | 309          |   |            |   | (2 363       | ) | 1 325        |   | (880      | )
|Movement on treasury stock                        |            |   | (1 068    | ) | (171         | ) |            |   | (37          | ) |             |   | (1 276    | )
|Other finance activities                          |            |   |          |   |             |   |            |   | (218         | ) |             |   | (218      | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from/(used in) financing activities | (2 027      | ) | 402       |   | 168          |   | (43         | ) | (4 958       | ) | 1 637        |   | (4 821    | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net increase/(decrease) in cash and               |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|cash equivalents                                  | 22          |   | (117      | ) |             |   |            |   | 142          |   |             |   | 47        |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash and cash equivalents at the beginning        |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|of the year                                       | 10          |   | 279       |   |             |   | (3          | ) | 1 120        |   |             |   | 1 406     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Effect of foreign exchange rate changes           | 3           |   |          |   |             |   |            |   | (191         | ) |             |   | (188      | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash and cash equivalents at the end of the year  | 35          |   | 162       |   |             |   | (3          | ) | 1 071        |   |             |   | 1 265     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  



|UnileverAnnual Report on Form 20-F 2006 | 139
|--------------------------------------- | ---

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Notes to the consolidated
        accounts Unilever
        Group
|-----------------------------------------------------------------
|                                                                 



35 Additional information for US investors(continued)

(iii)
  Guarantor statements(continued)

|                                                  | € million   |   | € million |   | € million    |   | € million   |   | € million    |   | € million    |   | € million |  
|------------------------------------------------- | ----------- | - | --------- | - | ------------ | - | ----------- | - | ------------ | - | ------------ | - | --------- | -
|                                                  | Unilever    |   | Unilever  |   |              |   | Unilever    |   |              |   |              |   |           |  
|                                                  | Capital     |   | N.V.      |   |              |   | United      |   |              |   |              |   |           |  
|                                                  | Corporation |   | parent    |   | Unilever PLC |   | States Inc. |   | Non-         |   |              |   |           |  
|Cash flow statement                               | subsidiary  |   | issuer/   |   | parent       |   | subsidiary  |   | guarantor    |   |              |   | Unilever  |  
|for the year ended 31 December 2004               | issuer      |   | guarantor |   | guarantor    |   | guarantor   |   | subsidiaries |   | Eliminations |   | Group     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash flow from operating activities               | 6           |   | 58        |   | 45           |   | (200        | ) | 7 016        |   |             |   | 6 925     |  
|Income tax paid                                   |            |   | (96       | ) | (126         | ) | (145        | ) | (1 011       | ) |             |   | (1 378    | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from operating activities           | 6           |   | (38       | ) | (81          | ) | (345        | ) | 6 005        |   |             |   | 5 547     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Interest received                                 | 295         |   | 356       |   | 6            |   |            |   | 106          |   | (595         | ) | 168       |  
|Net capital expenditure                           |            |   | (9        | ) | (17          | ) | (1          | ) | (842         | ) |             |   | (869      | )
|Acquisitions and disposals                        |            |   |          |   |             |   |            |   | 316          |   |             |   | 316       |  
|Other investing activities                        | (311        | ) | 2 375     |   |             |   | 372         |   | 288          |   | (2 459       | ) | 265       |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from/(used in) investing activities | (16         | ) | 2 722     |   | (11          | ) | 371         |   | (132         | ) | (3 054       | ) | (120      | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Dividends paid on ordinary share capital          |            |   | 971       |   |             |   |            |   | (2 691       | ) |             |   | (1 720    | )
|Interest and preference dividends paid            | (282        | ) | (249      | ) | (3           | ) | (24         | ) | (824         | ) | 595          |   | (787      | )
|Change in borrowings and finance leases           | 302         |   | (3 402    | ) | 116          |   |            |   | (2 365       | ) | 2 459        |   | (2 890    | )
|Movement on treasury stock                        |            |   | (148      | ) | (21          | ) | (2          | ) | (161         | ) |             |   | (332      | )
|Other finance activities                          |            |   |          |   |             |   |            |   | (209         | ) |             |   | (209      | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net cash flow from/(used in) financing activities | 20          |   | (2 828    | ) | 92           |   | (26         | ) | (6 250       | ) | 3 054        |   | (5 938    | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Net increase/(decrease) in cash and               |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|cash equivalents                                  | 10          |   | (144      | ) |             |   |            |   | (377         | ) |             |   | (511      | )
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash and cash equivalents at the beginning        |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|of the year                                       | 1           |   | 423       |   |             |   | (3          | ) | 1 007        |   |             |   | 1 428     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Effect of foreign exchange rate changes           | (1          | ) |          |   |             |   |            |   | 490          |   |             |   | 489       |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  
|Cash and cash equivalents at the end of the year  | 10          |   | 279       |   |             |   | (3          | ) | 1 120        |   |             |   | 1 406     |  
|                                                  |             |   |           |   |              |   |             |   |              |   |              |   |           |  



|140 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

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| |                                           
| | ------------------------------------------
| | Financial
          Statements (continued)
| |                                           

|Selected financial data Unilever
        Group
|----------------------------------------------
|                                              



Selected financial data under IFRS

In the schedules below, figures within the income statement and for earnings per share reflect the classification between continuing and discontinued operations which is applicable for our 2006 reporting. This
classification differs from that which would have applied under our reporting basis for 2005.

|                                        | € million |   | € million |   | € million |  
|--------------------------------------- | --------- | - | --------- | - | --------- | -
|Consolidated income statement           | 2006      |   | 2005      |   | 2004      |  
|                                        |           |   |           |   |           |  
|Continuing operations:                  |           |   |           |   |           |  
|Turnover                                | 39 642    |   | 38 401    |   | 37 168    |  
|                                        |           |   |           |   |           |  
|Operating profit                        | 5 408     |   | 5 074     |   | 3 981     |  
|                                        |           |   |           |   |           |  
|Net finance costs                       | (721      | ) | (613      | ) | (623      | )
|Income from non-current investments     | 144       |   | 55        |   | 95        |  
|                                        |           |   |           |   |           |  
|Profit before taxation                  | 4 831     |   | 4 516     |   | 3 453     |  
|Taxation                                | (1 146    | ) | (1 181    | ) | (725      | )
|                                        |           |   |           |   |           |  
|Net profit from continuing operations   | 3 685     |   | 3 335     |   | 2 728     |  
|Net profit from discontinued operations | 1 330     |   | 640       |   | 213       |  
|                                        |           |   |           |   |           |  
|Net profit                              | 5 015     |   | 3 975     |   | 2 941     |  
|Attributable to:                        |           |   |           |   |           |  
|Minority interests                      | 270       |   | 209       |   | 186       |  
|Shareholders equity                    | 4 745     |   | 3 766     |   | 2 755     |  
|                                        |           |   |           |   |           |  
|                                        |           |   |           |   |           |  

|                               | €    |  | €    |  | €    | 
|------------------------------ | ---- |  | ---- |  | ---- | 
|Combined earnings per share(a) | 2006 |  | 2005 |  | 2004 | 
|                               |      |  |      |  |      | 
|Continuing operations          |      |  |      |  |      | 
|Basic earnings per share       | 1.19 |  | 1.07 |  | 0.87 | 
|Diluted earnings per share     | 1.15 |  | 1.04 |  | 0.84 | 
|Total operations               |      |  |      |  |      | 
|Basic earnings per share       | 1.65 |  | 1.29 |  | 0.94 | 
|Diluted earnings per share     | 1.60 |  | 1.25 |  | 0.91 | 
|                               |      |  |      |  |      | 
|                               |      |  |      |  |      | 

|                                      | € million |   | € million |   | € million |  
|------------------------------------- | --------- | - | --------- | - | --------- | -
|Consolidated balance sheet            | 2006      |   | 2005      |   | 2004      |  
|                                      |           |   |           |   |           |  
|Non-current assets                    | 27 571    |   | 28 358    |   | 26 368    |  
|Current assets                        | 9 501     |   | 11 142    |   | 10 490    |  
|Current liabilities                   | (13 884   | ) | (15 394   | ) | (14 186   | )
|                                      |           |   |           |   |           |  
|Total assets less current liabilities | 23 188    |   | 24 106    |   | 22 672    |  
|                                      |           |   |           |   |           |  
|Non-current liabilities               | 11 516    |   | 15 341    |   | 15 043    |  
|                                      |           |   |           |   |           |  
|Shareholders equity                  | 11 230    |   | 8 361     |   | 7 264     |  
|Minority interests                    | 442       |   | 404       |   | 365       |  
|                                      |           |   |           |   |           |  
|Total equity                          | 11 672    |   | 8 765     |   | 7 629     |  
|                                      |           |   |           |   |           |  
|Total capital employed                | 23 188    |   | 24 106    |   | 22 672    |  
|                                      |           |   |           |   |           |  
|                                      |           |   |           |   |           |  

|                                                       | € million |   | € million |   | € million |  
|------------------------------------------------------ | --------- | - | --------- | - | --------- | -
|Consolidated cash flow statement                       | 2006      |   | 2005      |   | 2004      |  
|                                                       |           |   |           |   |           |  
|Net cash flow from operating activities                | 4 511     |   | 4 353     |   | 5 547     |  
|Net cash flow from/(used in) investing activities      | 1 155     |   | 515       |   | (120      | )
|Net cash flow from/(used in) financing activities      | (6 572    | ) | (4 821    | ) | (5 938    | )
|                                                       |           |   |           |   |           |  
|Net increase/(decrease) in cash and cash equivalents   | (906      | ) | 47        |   | (511      | )
|Cash and cash equivalents at the beginning of the year | 1 265     |   | 1 406     |   | 1 428     |  
|Effect of foreign exchange rates                       | 351       |   | (188      | ) | 489       |  
|                                                       |           |   |           |   |           |  
|Cash and cash equivalents at the end of the year       | 710       |   | 1 265     |   | 1 406     |  
|                                                       |           |   |           |   |           |  
|                                                       |           |   |           |   |           |  

|Ratios and other metrics                      | 2006  |  | 2005  |  | 2004  | 
|--------------------------------------------- | ----- |  | ----- |  | ----- | 
|                                              |       |  |       |  |       | 
|Operating margin (%)                          | 13.6  |  | 13.2  |  | 10.7  | 
|Net profit margin (%)(b)                      | 12.0  |  | 9.8   |  | 7.4   | 
|Ungeared free cash flow (€ million)(c)        | 4 222 |  | 4 011 |  | 5 346 | 
|Return on invested capital (%)(c)             | 14.6  |  | 12.5  |  | 10.7  | 
|Ratio of earnings to fixed charges (times)(d) | 7.5   |  | 6.5   |  | 5.1   | 
|                                              |       |  |       |  |       | 

|(a) | For the basis of the calculations of combined earnings per share see note 7 on page 87.                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | Net profit margin is expressed as net profit attributable to shareholders equity as a percentage of turnover from continuing operations.                                                                                                                                                                                                                                                                                                                                                                                                 
|(c) | As defined on page 25.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(d) | In the ratio of earnings to fixed charges, earnings consist of net profit from continuing operations excluding net profit or loss of joint ventures and associates increased by fixed charges, income taxes and dividends
received from joint ventures and associates. Fixed charges consist of interest payable on debt and a portion of lease costs determined to be representative of interest. This ratio takes no account of interest receivable although Unilevers
treasury operations involve both borrowing and depositing funds.



|UnileverAnnual Report on Form 20-F 2006 | 141
|--------------------------------------- | ---

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|                                          | 
|----------------------------------------- | 
|Financial
          Statements(continued) | 
|                                          | 

|Selected financial data (continued) Unilever
        Group
|----------------------------------------------------------
|                                                          



Selected financial data under IFRS(continued)

|                     | € million |  | € million |  | € million | 
|-------------------- | --------- |  | --------- |  | --------- | 
|By geographical area | 2006      |  | 2005      |  | 2004      | 
|                     |           |  |           |  |           | 
|Turnover             |           |  |           |  |           | 
|Europe               | 15 000    |  | 14 940    |  | 15 252    | 
|The Americas         | 13 779    |  | 13 179    |  | 12 296    | 
|Asia Africa          | 10 863    |  | 10 282    |  | 9 620     | 
|                     |           |  |           |  |           | 
|                     | 39 642    |  | 38 401    |  | 37 168    | 
|                     |           |  |           |  |           | 
|Operating profit     |           |  |           |  |           | 
|Europe               | 1 903     |  | 2 064     |  | 2 045     | 
|The Americas         | 2 178     |  | 1 719     |  | 896       | 
|Asia Africa          | 1 327     |  | 1 291     |  | 1 040     | 
|                     |           |  |           |  |           | 
|                     | 5 408     |  | 5 074     |  | 3 981     | 
|                     |           |  |           |  |           | 
|Total assets         |           |  |           |  |           | 
|Europe               | 14 523    |  | 15 164    |  | 15 586    | 
|The Americas         | 11 566    |  | 12 569    |  | 11 486    | 
|Asia Africa          | 5 884     |  | 6 320     |  | 4 369     | 
|Corporate            | 5 099     |  | 5 447     |  | 5 417     | 
|                     |           |  |           |  |           | 
|                     | 37 072    |  | 39 500    |  | 36 858    | 
|                     |           |  |           |  |           | 
|Capital expenditure  |           |  |           |  |           | 
|Europe               | 511       |  | 447       |  | 497       | 
|The Americas         | 396       |  | 305       |  | 297       | 
|Asia Africa          | 294       |  | 298       |  | 305       | 
|                     |           |  |           |  |           | 
|                     | 1 201     |  | 1 050     |  | 1 099     | 
|                     |           |  |           |  |           | 
|                     |           |  |           |  |           | 

|                       | € million |  | € million |  | € million | 
|---------------------- | --------- |  | --------- |  | --------- | 
|By operation           | 2006      |  | 2005      |  | 2004      | 
|                       |           |  |           |  |           | 
|Turnover               |           |  |           |  |           | 
|Foods                  | 21 345    |  | 20 889    |  | 20 566    | 
|Home and Personal Care | 18 297    |  | 17 512    |  | 16 602    | 
|                       |           |  |           |  |           | 
|                       | 39 642    |  | 38 401    |  | 37 168    | 
|                       |           |  |           |  |           | 
|Operating profit       |           |  |           |  |           | 
|Foods                  | 2 893     |  | 2 635     |  | 1 850     | 
|Home and Personal Care | 2 515     |  | 2 439     |  | 2 131     | 
|                       |           |  |           |  |           | 
|                       | 5 408     |  | 5 074     |  | 3 981     | 
|                       |           |  |           |  |           | 
|Total assets           |           |  |           |  |           | 
|Foods                  | 24 972    |  | 26 798    |  | 25 382    | 
|Home and Personal Care | 7 001     |  | 7 255     |  | 6 059     | 
|Corporate              | 5 099     |  | 5 447     |  | 5 417     | 
|                       |           |  |           |  |           | 
|                       | 37 072    |  | 39 500    |  | 36 858    | 
|                       |           |  |           |  |           | 
|Capital expenditure    |           |  |           |  |           | 
|Foods                  | 714       |  | 572       |  | 588       | 
|Home and Personal Care | 487       |  | 478       |  | 511       | 
|                       |           |  |           |  |           | 
|                       | 1 201     |  | 1 050     |  | 1 099     | 
|                       |           |  |           |  |           | 



|142 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

---



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| |                                           
| | ------------------------------------------
| | Financial
          Statements (continued)
| |                                           

|Selected financial data
        (continued) Unilever
        Group
|------------------------------------------------------------------
|                                                                  



Selected financial data under previous GAAPUnilever adopted International Financial
Reporting Standards as adopted by the EU with effect from 1 January 2005, with
a transition date of 1 January 2004. Information for the period from 2002 to
2004 as reported under our previous accounting policies (which is not directly
comparable with IFRS) is set out below and on pages 144 and 145.

This information is derived from the audited consolidated accounts of the Unilever
Group for the years 2002 to 2004, and should be read in the context of those
accounts and notes. Those accounts were prepared under the accounting policies
which the Group applied prior to its adoption of IFRS. These were based on United
Kingdom accounting standards and applicable Dutch and UK law. Further information
can be found in the Accounting information and
policies sections of the Report and Accounts for the years in question.

The adoption, in 2003, of UK Financial Reporting Standard 17 on pensions accounting
was reflected by restating the consolidated profit and loss accounts for the
years ended and the balance sheets as at 31 December 2002
and 31 December 2001.

|                                               | € million |   | € million |   | € million |  
|---------------------------------------------- | --------- | - | --------- | - | --------- | -
|Consolidated profit and loss account           | 2004      |   | 2003      |   | 2002      |  
|                                               |           |   |           |   |           |  
|Group turnover                                 | 40 169    |   | 42 693    |   | 48 270    |  
|                                               |           |   |           |   |           |  
|Group operating profit                         | 3 411     |   | 5 483     |   | 5 007     |  
|After charging:                                |           |   |           |   |           |  
|Exceptional items                              | (1 595    | ) | (97       | ) | (707      | )
|Amortisation of goodwill and intangible assets | (1 086    | ) | (1 139    | ) | (1 245    | )
|Income from fixed investments                  | 117       |   | 68        |   | 111       |  
|Interest                                       | (689      | ) | (1 013    | ) | (1 065    | )
|                                               |           |   |           |   |           |  
|Profit on ordinary activities before taxation  | 2 839     |   | 4 538     |   | 4 053     |  
|                                               |           |   |           |   |           |  
|Profit on ordinary activities after taxation   | 2 057     |   | 3 011     |   | 2 448     |  
|                                               |           |   |           |   |           |  
|Net profit                                     | 1 876     |   | 2 762     |   | 2 136     |  
|                                               |           |   |           |   |           |  
|Preference dividends                           | (28       | ) | (27       | ) | (42       | )
|Dividends on ordinary capital                  | (1 815    | ) | (1 682    | ) | (1 659    | )
|                                               |           |   |           |   |           |  
|Result for the year retained                   | 33        |   | 1 053     |   | 435       |  
|                                               |           |   |           |   |           |  
|Combined earnings per share                    | €0.64     |   | €0.94     |   | €0.71     |  
|                                               |           |   |           |   |           |  
|Ordinary dividends                             |           |   |           |   |           |  
|NV  euros per €0.16 of ordinary capital       | 0.6300    |   | 0.5800    |   | 0.5666    |  
|PLC  pounds per 31/9p of ordinary capital     | 0.4256    |   | 0.4018    |   | 0.3565    |  
|                                               |           |   |           |   |           |  
|                                               |           |   |           |   |           |  

|                                       | € million |   | € million |   | € million |  
|-------------------------------------- | --------- | - | --------- | - | --------- | -
|Consolidated balance sheet             | 2004      |   | 2003      |   | 2002      |  
|                                       |           |   |           |   |           |  
|Goodwill and intangible assets         | 15 338    |   | 17 713    |   | 20 274    |  
|Other fixed assets and investments     | 6 473     |   | 6 854     |   | 8 115     |  
|Stocks                                 | 3 758     |   | 4 175     |   | 4 500     |  
|Debtors                                | 5 703     |   | 5 881     |   | 6 571     |  
|Total cash and current investments     | 2 603     |   | 3 345     |   | 2 904     |  
|                                       |           |   |           |   |           |  
|Total assets                           | 33 875    |   | 37 968    |   | 42 364    |  
|                                       |           |   |           |   |           |  
|Creditors due within one year          | (14 570   | ) | (17 074   | ) | (19 955   | )
|                                       |           |   |           |   |           |  
|Total assets less current liabilities  | 19 305    |   | 20 894    |   | 22 409    |  
|                                       |           |   |           |   |           |  
|Creditors due after one year           | 7 610     |   | 9 130     |   | 11 574    |  
|Provisions for liabilities and charges | 5 799     |   | 5 404     |   | 5 514     |  
|                                       |           |   |           |   |           |  
|Total long-term liabilities            | 13 409    |   | 14 534    |   | 17 088    |  
|                                       |           |   |           |   |           |  
|Minority interests                     | 362       |   | 440       |   | 619       |  
|Capital and reserves                   | 5 534     |   | 5 920     |   | 4 702     |  
|                                       |           |   |           |   |           |  
|Total capital employed                 | 19 305    |   | 20 894    |   | 22 409    |  
|                                       |           |   |           |   |           |  



|UnileverAnnual Report on Form 20-F 2006 | 143
|--------------------------------------- | ---

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|                                       | 
|-------------------------------------- | 
|Financial Statements
      (continued) | 
|                                       | 

|Selected financial data
      (continued)Unilever
      Group
|-------------------------------------------------------------
|                                                             



Selected financial data under previous GAAP(continued)

|                             | € million    |  | € million    |  | € million    | 
|---------------------------- | ------------ |  | ------------ |  | ------------ | 
|By
      geographical area   | 2004         |  | 2003         |  | 2002         | 
|                             |              |  |              |  |              | 
|Group
      turnover         |              |  |              |  |              | 
|Europe                       | 17
      314 |  | 18
      208 |  | 19
      573 | 
|The Americas                 | 13 120       |  | 14 146       |  | 17 879       | 
|Asia Africa                  | 9 735        |  | 10 339       |  | 10 818       | 
|                             |              |  |              |  |              | 
|                             | 40 169       |  | 42 693       |  | 48 270       | 
|                             |              |  |              |  |              | 
|Group
      operating profit |              |  |              |  |              | 
|Europe                       | 1 827        |  | 2 563        |  | 1 598        | 
|The Americas                 | 617          |  | 1 429        |  | 2 046        | 
|Asia Africa                  | 967          |  | 1 491        |  | 1 363        | 
|                             |              |  |              |  |              | 
|                             | 3 411        |  | 5 483        |  | 5 007        | 
|                             |              |  |              |  |              | 
|Net
      operating assets   |              |  |              |  |              | 
|Europe                       | 9 748        |  | 11 306       |  | 12 301       | 
|The Americas                 | 8 869        |  | 11 033       |  | 13 441       | 
|Asia Africa                  | 2 294        |  | 2 582        |  | 2 445        | 
|                             |              |  |              |  |              | 
|                             | 20 911       |  | 24 921       |  | 28 187       | 
|                             |              |  |              |  |              | 
|Capital
      expenditure    |              |  |              |  |              | 
|Europe                       | 461          |  | 471          |  | 552          | 
|The Americas                 | 262          |  | 316          |  | 468          | 
|Asia Africa                  | 282          |  | 251          |  | 278          | 
|                             |              |  |              |  |              | 
|                             | 1 005        |  | 1 038        |  | 1 298        | 
|                             |              |  |              |  |              | 

|                             |           |  |           |  |           | 
|---------------------------- | --------- |  | --------- |  | --------- | 
|                             | € million |  | € million |  | € million | 
|By operation                 | 2004      |  | 2003      |  | 2002      | 
|                             |           |  |           |  |           | 
|Group
      turnover         |           |  |           |  |           | 
|Foods                        | 22 530    |  | 23 971    |  | 26 937    | 
|Home and Personal Care       | 17 639    |  | 18 722    |  | 21 333    | 
|                             |           |  |           |  |           | 
|                             | 40 169    |  | 42 693    |  | 48 270    | 
|                             |           |  |           |  |           | 
|Group
      operating profit |           |  |           |  |           | 
|Foods                        | 1 267     |  | 2 648     |  | 2 083     | 
|Home and Personal Care       | 2 144     |  | 2 835     |  | 2 924     | 
|                             |           |  |           |  |           | 
|                             | 3 411     |  | 5 483     |  | 5 007     | 
|                             |           |  |           |  |           | 
|Net operating
      assets   |           |  |           |  |           | 
|Foods                        | 19 014    |  | 22 469    |  | 25 156    | 
|Home and Personal Care       | 1 897     |  | 2 452     |  | 3 031     | 
|                             |           |  |           |  |           | 
|                             | 20 911    |  | 24 921    |  | 28 187    | 
|                             |           |  |           |  |           | 
|Capital
      expenditure    |           |  |           |  |           | 
|Foods                        | 532       |  | 602       |  | 805       | 
|Home and Personal Care       | 473       |  | 436       |  | 493       | 
|                             |           |  |           |  |           | 
|                             | 1 005     |  | 1 038     |  | 1 298     | 
|                             |           |  |           |  |           | 



|144 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

---



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| |                                       
| | --------------------------------------
| | Financial
      Statements (continued)
| |                                       

|Selected financial data
      (continued)Unilever
      Group
|-------------------------------------------------------------
|                                                             



Selected financial
  data under previous GAAP(continued)

|                                                                    | € million |   | € million |   | € million |  
|------------------------------------------------------------------- | --------- | - | --------- | - | --------- | -
|Consolidated
      cash flow statement                              | 2004      |   | 2003      |   | 2002      |  
|                                                                    |           |   |           |   |           |  
|Cash flow
      from operating activities                           | 6 853     |   | 6 780     |   | 7 883     |  
|Dividends from joint ventures                                       | 60        |   | 52        |   | 83        |  
|Returns on investments and
      servicing of finance               | (807      | ) | (1 180    | ) | (1 386    | )
|Taxation                                                            | (1 378    | ) | (1 423    | ) | (1 817    | )
|Capital expenditure and financial
      investment                  | (1 044    | ) | (1 024    | ) | (1 706    | )
|Acquisitions and disposals                                          | 316       |   | 622       |   | 1 755     |  
|Dividends paid on ordinary
      share capital                      | (1 720    | ) | (1 715    | ) | (1 580    | )
|                                                                    |           |   |           |   |           |  
|Cash flow
      before management of liquid resources and financing | 2 280     |   | 2 112     |   | 3 232     |  
|Management of liquid resources                                      | (31       | ) | (41       | ) | (592      | )
|Financing                                                           | (2 921    | ) | (2 917    | ) | (3 078    | )
|                                                                    |           |   |           |   |           |  
|Increase/(decrease)
      in cash in the period                     | (672      | ) | (846      | ) | (438      | )
|                                                                    |           |   |           |   |           |  



|Ratios                                              | 2004 |  | 2003 |  | 2002 | 
|--------------------------------------------------- | ---- |  | ---- |  | ---- | 
|                                                    |      |  |      |  |      | 
|Net profit
      margin (%)(b)                      | 4.7  |  | 6.5  |  | 4.4  | 
|Return on invested
      capital (%)(c)             | 10.8 |  | 12.5 |  | 9.8  | 
|Ratio of earnings
      to fixed charges (times)(d) | 4.3  |  | 4.6  |  | 3.6  | 
|                                                    |      |  |      |  |      | 

|(b) | As defined on page 141.
|--- | -----------------------
|(c) | As defined on page 25. 
|(d) | As defined on page 141.

Selected financial data
  and key ratios on a US GAAP basis

|                                                                         | € million |  | € million |  | € million |  | € million |  | € million | 
|------------------------------------------------------------------------ | --------- |  | --------- |  | --------- |  | --------- |  | --------- | 
|                                                                         | 2006      |  | 2005      |  | 2004      |  | 2003      |  | 2002      | 
|                                                                         |           |  |           |  |           |  |           |  |           | 
|Turnover (total operations)(a)                                           | 40 675    |  | 39 902    |  | 39 108    |  | 41 455    |  | 46 933    | 
|Net profit attributable to
      shareholders equity (total operations) | 4 115     |  | 2 646     |  | 2 686     |  | 3 807     |  | 4 210     | 
|Net profit (continuing operations)                                       | 3 055     |  | 2 215     |  | 2 654     |  | n/a       |  | n/a       | 
|Shareholders equity                                                     | 16 626    |  | 14 992    |  | 14 012    |  | 13 349    |  | 11 772    | 
|Total assets                                                             | 42 467    |  | 45 296    |  | 41 625    |  | 44 145    |  | 48 146    | 
|                                                                         |           |  |           |  |           |  |           |  |           | 
|Basic earnings per share (total
      operations)  (Euros)(b)(c)        | 1.45      |  | 0.90      |  | 0.92      |  | 1.30      |  | 1.42      | 
|Diluted earnings per share
      (total operations)  (Euros)            | 1.38      |  | 0.88      |  | 0.87      |  | 1.26      |  | 1.38      | 
|                                                                         |           |  |           |  |           |  |           |  |           | 
|Return on invested capital
      (%)                                     | 12.4      |  | 10.0      |  | 10.5      |  | 11.4      |  | 11.3      | 
|Net profit margin (%)(d)                                                 | 10.1      |  | 6.6       |  | 6.9       |  | 9.2       |  | 9.0       | 
|Ratio of earnings to fixed
      charges(e)                              | 6.3       |  | 5.0       |  | 4.7       |  | n/a       |  | n/a       | 
|                                                                         |           |  |           |  |           |  |           |  |           | 

|(a) | Turnover from continuing operations for
      the year was €39 642 million (2005: €38 401 million; 2004: €37
      168 million).                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | For the basis of the calculation of earnings
      per share see note 7 on page 87.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(c) | For information on earnings per share
      for continuing operations, please refer to note 34 on page 124.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|(d) | Net profit margin is expressed as net
      profit attributable to shareholders equity as a percentage of turnover
      from total operations.                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(e) | In the ratio of earnings to fixed charges,
      earnings consist of net profit from continuing operations excluding net
      profit or loss of joint ventures and associates increased by fixed charges,
      income taxes and dividends received from joint ventures and associates.
      Fixed charges consist of interest payable on debt and a portion of lease
      costs determined to be representative of interest. This ratio takes no account
      of interest receivable although Unilevers treasury operations involve
      both borrowing and depositing funds.



|UnileverAnnual Report on Form 20-F 2006 | 145
|--------------------------------------- | ---

---



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|                                       | 
|-------------------------------------- | 
|Financial Statements
      (continued) | 
|                                       | 

|Selected financial data
      (continued)Unilever
      Group
|-------------------------------------------------------------
|                                                             



Exchange rates

The information in the following table is based
  on exchange rates between euros and US dollars and euros and sterling. These
  translation rates were used in preparation of the accounts:

|                     | 2006  |  | 2005  |  | 2004  |  | 2003  |  | 2002  | 
|-------------------- | ----- |  | ----- |  | ----- |  | ----- |  | ----- | 
|                     |       |  |       |  |       |  |       |  |       | 
|Year end             |       |  |       |  |       |  |       |  |       | 
|€ 1 = $              | 1.317 |  | 1.184 |  | 1.366 |  | 1.261 |  | 1.049 | 
|€ 1 = £              | 0.671 |  | 0.686 |  | 0.707 |  | 0.708 |  | 0.651 | 
|                     |       |  |       |  |       |  |       |  |       | 
|Annual
      average |       |  |       |  |       |  |       |  |       | 
|€ 1 = $              | 1.254 |  | 1.244 |  | 1.238 |  | 1.126 |  | 0.940 | 
|€ 1 = £              | 0.682 |  | 0.684 |  | 0.678 |  | 0.691 |  | 0.628 | 
|                     |       |  |       |  |       |  |       |  |       | 

Noon Buying Rates in New York for cable transfers in foreign currencies as certified for customs purposes by the Federal Reserve Bank of New York were as follows:

|                     | 2006  |  | 2005  |  | 2004  |  | 2003  |  | 2002  | 
|-------------------- | ----- |  | ----- |  | ----- |  | ----- |  | ----- | 
|                     |       |  |       |  |       |  |       |  |       | 
|Year end             |       |  |       |  |       |  |       |  |       | 
|€1 = $               | 1.320 |  | 1.184 |  | 1.354 |  | 1.260 |  | 1.049 | 
|                     |       |  |       |  |       |  |       |  |       | 
|Annual
      average |       |  |       |  |       |  |       |  |       | 
|€1 = $               | 1.256 |  | 1.245 |  | 1.239 |  | 1.132 |  | 0.945 | 
|                     |       |  |       |  |       |  |       |  |       | 
|High                 |       |  |       |  |       |  |       |  |       | 
|€1 = $               | 1.333 |  | 1.348 |  | 1.363 |  | 1.260 |  | 1.049 | 
|                     |       |  |       |  |       |  |       |  |       | 
|Low                  |       |  |       |  |       |  |       |  |       | 
|€1 = $               | 1.186 |  | 1.167 |  | 1.180 |  | 1.036 |  | 0.859 | 
|                     |       |  |       |  |       |  |       |  |       | 

High and low exchange rate values for each
  of the last six months:

|             | September |  | October |  | November |  | December |  | January |  | February | 
|------------ | --------- |  | ------- |  | -------- |  | -------- |  | ------- |  | -------- | 
|             | 2006      |  | 2006    |  | 2006     |  | 2006     |  | 2007    |  | 2007     | 
|             |           |  |         |  |          |  |          |  |         |  |          | 
|High         |           |  |         |  |          |  |          |  |         |  |          | 
|€1 =
      $ | 1.283     |  | 1.277   |  | 1.326    |  | 1.333    |  | 1.329   |  | 1.325    | 
|             |           |  |         |  |          |  |          |  |         |  |          | 
|Low          |           |  |         |  |          |  |          |  |         |  |          | 
|€1 =
      $ | 1.265     |  | 1.250   |  | 1.271    |  | 1.307    |  | 1.290   |  | 1.293    | 
|             |           |  |         |  |          |  |          |  |         |  |          | 

On 1 March 2007, the exchange rates between
  euros and US dollars and euros and sterling were as follows: €1.00 = US
  $1.322 and €1.00 = £0.674.



|146 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

---



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| |                                       
| | --------------------------------------
| | Financial
      Statements (continued)
| |                                       

|Principal group companies
      and non-current investmentsUnilever Group
|-------------------------------------------------------------------------
|                                                                         
|as at 31 December 2006                                                   



The companies listed below and on page 148 are
  those which, in the opinion of the Directors, principally affect the amount
  of profit and assets shown in the Unilever Group accounts. The Directors consider
  that those companies not listed are not significant in relation to Unilever
  as a whole. Full information as required by Articles 379
  and 414 of Book 2 of the Civil Code in the Netherlands has been filed by Unilever
  N.V. with the Commercial Registry in Rotterdam. Particulars of PLC group companies and other
  significant holdings as required by the United Kingdom Companies Act 1985 will
  be annexed to the next Annual Return of Unilever PLC. Unless otherwise indicated, the companies
    are incorporated and principally operate in the countries under which they
    are shown. The aggregate percentage of equity capital
    directly or indirectly held by NV or PLC is shown in the margin, except where
    it is 100%. All these percentages are rounded down to the nearest whole number. The percentage of Unilevers shareholdings
    held either directly or indirectly by NV and PLC are identified in the tables
    according to the following code: NV 100%
    aPLC 100%
    bNV 60%; PLC 40%
    cNV 85%; PLC 15%
    dNV 19%; PLC 81%
    eNV 46%; PLC 54%
    fNV 24%; PLC 76%
    gNV 56%; PLC 44%
    h Due to the inclusion of certain partnerships
  in the consolidated group accounts of Unilever, para 264(b) of the German trade
  law grants an exemption from the duty to prepare individual statutory financial
  statements and management reports in accordance with the requirements for limited
  liability companies and to have these audited and published. Group
        companies%
    
    OwnershipArgentinaUnilever de
      Argentina S.A.
    dAustraliaUnilever Australia
      Ltd.
    bBelgiumUnilever Belgium
      BVBA/SPRL (Unibel)
    dBrazilUnilever Brasil
      Ltda.
    dCanadaUnilever Canada
      Inc.
    eChileUnilever Chile
      Home and Personal Care Ltda.
    dChinaUnilever (China)
      Investing Company Ltd.
    aUnilever Services
      (Hefei) Limited
    aFranceAmora Maille
      Société Industrielle S.A.S
    dCogesal-Miko
      S.A.S
    d99
    Lever Fabergé
      France S.A.S
    dUnilever France
      Holdings S.A.S
    d


Group
      companies(continued)%
    
    OwnershipGermanyMaizena GrundstücksverwaltungsGmbH
        & Co. OHG
    dPfanni GmbH
      & Co. OHG Stavenhagen
    dPfanni Werke
      GrundstücksverwaltungsGmbH
        & Co. OHG
    dUBG Vermietungs
      GmbH & Co. OHG
    dUnilever Deutschland
      GmbH
    dUnilever Deutschland
      Holding GmbH
    dUnilever Deutschland
      Immobilien LeasingGmbH
        & Co. OHG
    dWizona IPR
      GmbH & Co. OHG
    dGreece84
    Elais-Unilever
      S.A.
    aUnilever Hellas
      A.E.B.E.
    aIndia51
    Hindustan Lever
      Ltd.
    bIndonesia85
    P.T. Unilever
      Indonesia Tbk
    aItalyUnilever Italia
      SrL
    dJapanUnilever Japan
      KK
    aMexicoUnilever de
      México S. de R.L. de C.V.
    dThe NetherlandsMixhold B.V.
    dUnilever Finance
      International B.V.
    aUnilever N.V.(a)Unilever Nederland
      B.V.
    dUNUS Holding
      B.V.
    hPolandUnilever Polska
      S.A.
    dRussiaUnilever SNG
    gSouth
        Africa59
    Unilever South
      Africa Foods (Pty) Limited
    fUnilever South
      Africa Home andPersonal
        Care (Pty) Ltd.
    bSpainUnilever España
      S.A.
    aUnilever Foods
      España S.A.
    aSwedenUnilever Sverige
      AB
    aSwitzerlandUnilever Supply
      Chain Company AG
    aUnilever Schweiz
      GmbH
    dThailandUnilever Thai
      Trading Ltd.
    d (a)
      See Basis of consolidation
        in note 1 on page 74




|UnileverAnnual Report on Form 20-F 2006 | 147
|--------------------------------------- | ---

---



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|                                       | 
|-------------------------------------- | 
|Financial Statements
      (continued) | 
|                                       | 

|Principal group companies
      and non-current investments(continued) Unilever Group
|-------------------------------------------------------------------------------------
|                                                                                     
|as at 31 December 2006                                                               



Group
      companies(continued)TurkeyUnilever Sanayi ve Ticaret
      Türk A.S,.
      bUnited KingdomLever Fabergé Ltd.
    eUnilever Bestfoods UK Ltd.
    eUnilever PLC(a)Unilever UK Holdings Ltd.
    bUnilever UK & CN Holdings
      Ltd.
    eUnited States of AmericaConopco, Inc.
    cUnilever Capital Corporation
    cUnilever United States, Inc.
    c(a)   See
      Basis of consolidation in note 1 on page 74  Joint
        ventures%
    
    OwnershipPortugal49
    FIMA/VG-Distribuição
      de ProdutosAlimentares,
      Lda.
    aUnited States of America50
    Pepsi/Lipton Partnership
    cAssociates%
    
    OwnershipCôte dIvoire40
    Palmci
    bUnited Kingdom40
    Langholm Capital Partners L.P.
    bUnited States of America33
    JohnsonDiversey Holdings, Inc.
    a In addition, we have revenues from operations in the following locations: Abu Dhabi, Algeria, Austria, Bahrain, Bangladesh, Bolivia, Bulgaria, Cambodia, Cameroon, Colombia, Costa Rica, Côte dIvoire,
Croatia, Cuba, Cyprus, Czech Republic, Democratic Republic of Congo, Denmark, Dominican Republic, Dubai, Ecuador, Egypt, El Salvador, Estonia, Finland, Ghana, Guatemala, Honduras, Hong Kong, Hungary, Iran, Ireland, Israel, Jordan, Kenya, Latvia,
Lebanon, Lithuania, Malawi, Malaysia, Morocco, Mozambique, Namibia, Nepal, Netherlands Antilles, New Zealand, Nicaragua, Niger, Nigeria, Norway, Oman, Pakistan, Palestine, Panama, Paraguay, Peru, Philippines, Portugal, Puerto Rico, Romania, Saudi
Arabia, Senegal, Serbia, Singapore, Slovakia, Slovenia, South Korea, Sri Lanka, Sudan, Syria, Taiwan, Tanzania, Trinidad & Tobago, Tunisia, Uganda, Ukraine, United Arab Emirates, Uruguay, Venezuela, Vietnam, Zambia and Zimbabwe.






|148 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

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| |                                  
| | ---------------------------------
| | Shareholder
          information
| |                                  

|Shareholder information
|-----------------------
|                       



Analysis
  of shareholding

Significant shareholders of NVAs far as we are aware the only holders of more than 5% (as referred to in the Act on Financial Supervision in the Netherlands) in the NV share capital (apart from the Foundation Unilever NV Trust Office, see page 41)
are ING Groep N.V. and Aegon N.V. The voting rights of such shareholders are the same as for other holders of the class of share indicated. ING Groep N.V. and Aegon N.V. have each notified the Netherlands Authority for the Financial Markets (AFM)
that as of 1 November 2006 respectively ING Groep N.V. holds indirectly an interest in the NV issued share capital of 22.17% and Aegon N.V. holds indirectly an interest of 5.57% . Both interests are mainly held in cumulative preference shares as
shown hereunder.

ING Groep N.V.

|• | 26 828 546 (1.57%) ordinary shares (€4 292 567)               
|- | --------------------------------------------------------------
|• | 20 665 (71.26%) 7% cumulative preference shares (€8 856 399)  
|• | 120 088 (74.56%) 6% cumulative preference shares (€51 466 114)
|• | 504 440 (67.26%) 4% cumulative preference shares (€21 620 298)

Aegon N.V.

|• | 836 409 (0.05%) ordinary shares (€133 825)                   
|- | -------------------------------------------------------------
|• | 4 995 (17.22%) 7% cumulative preference shares (€2 140 707)  
|• | 29 540 (18.34%) 6% cumulative preference shares (€12 659 957)
|• | 157 106 (20.95%) 4% cumulative preference shares (€6 733 563)

There have been no material changes to the holdings of significant shareholders
of NV during the three years up to and including 2006.

Significant shareholders of PLCThe following table gives notified
details of shareholders who held more than 3% of, or 3% of voting rights attributable
to, PLCs shares or deferred stock (excluding treasury shares) on 1 March
2007. The voting rights of such shareholders are the same as for other holders
of the class of share indicated.

|                |                                              | Number of   |  | Approximate | 
|--------------- | -------------------------------------------- | ----------- |  | ----------- | 
|Title of class  | Name of holder                               | shares held |  | % held      | 
|                |                                              |             |  |             | 
|Deferred Stock  | Naamlooze Vennootschap Elma                  | 50 000      |  | 50          | 
|                | United Holdings Limited                      | 50 000      |  | 50          | 
|Ordinary shares | Trustees of the Leverhulme Trust
    and the |             |  |             | 
|                | Leverhulme Trade Charities
    Trust         | 70 566 764  |  | 5           | 
|                | Legal & General Group plc                    | 45 027 609  |  | 3           | 
|                | Barclays PLC                                 | 40 319 254  |  | 3           | 
|                |                                              |             |  |             | 

Between 1 January 2004 and 31 December 2006, Barclays PLC, The Capital Group Companies, inc., Fidelity Management and Research Company, and Legal & General Group plc have held more than 3% of, or 3% of voting
rights attributable to, PLCs ordinary shares. During this period, and as notified, certain of these holdings reduced to below the reporting 3% threshold. The table above sets out the notifiable interest of shares or voting rights attributable
to PLC as at 1 March 2007.



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|Shareholder information (continued)
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Analysis of PLC registered holdingsAt 31 December 2006 PLC had 67 462 ordinary shareholdings.

The following table analyses the registered holdings
of PLCs 31/9p
ordinary shares at 31 December
2006:

|                 | Number      |           |   |        | Total       |               |   |              
|---------------- | ----------- | --------- | - | ------ | ----------- | ------------- | - | -------------
|Number of shares | of holdings |           | % |        | shares held |               | % |              
|                 |             |           |   |        |             |               |   |              
|1                |            | 1000      |   | 43 107 |             | 63.90         |   | 17 802 194   
|1 001            |            | 2500      |   | 14 326 |             | 21.24         |   | 22 820 193   
|2 501            |            | 5000      |   | 5 637  |             | 8.36          |   | 19 850 051   
|5 001            |            | 10 000    |   | 2 256  |             | 3.34          |   | 15 431 690   
|10 001           |            | 25 000    |   | 970    |             | 1.44          |   | 14 471 304   
|25 001           |            | 50 000    |   | 307    |             | 0.45          |   | 10 773 983   
|50 001           |            | 100 000   |   | 209    |             | 0.31          |   | 14 935 085   
|100 001          |            | 1 000 000 |   | 488    |             | 0.72          |   | 166 272 636  
|Over 1 000 000   |             | 162       |   | 0.24   |             | 1 027 799 225 |   | 78.45        
|                 |             |           |   |        |             |               |   |              
|                 |             |           |   | 67 462 |             | 100.00        |   | 1 310 156 361
|                 |             |           |   |        |             |               |   |              

Share purchases during 2006

|          |                  |  |                |  |                     |  | € million            |    
|--------- | ---------------- |  | -------------- |  | ------------------- |  | -------------------- | ---
|          |                  |  |                |  | Total number of     |  | Maximum value that   |    
|          |                  |  |                |  | shares purchased    |  | may yet be purchased |    
|          | Total number of  |  | Average price  |  | as part of publicly |  | as part of publicly  |    
|          | shares purchased |  | paid per share |  | announced plans     |  | announced plans      | (a)
|          |                  |  |                |  |                     |  |                      |    
|January   |                 |  |               |  |                    |  |                     |    
|February  | 2 175 461        |  | €19.56         |  |                    |  |                     |    
|March     | 933 604          |  | €19.31         |  |                    |  |                     |    
|April     | 25 941           |  | €18.77         |  |                    |  |                     |    
|May       | 1 236 949        |  | €18.38         |  |                    |  |                     |    
|June      | 66 932           |  | €17.08         |  |                    |  |                     |    
|July      |                 |  |               |  |                    |  |                     |    
|August    | 237 632          |  | €17.92         |  |                    |  |                     |    
|September | 320 446          |  | €19.28         |  |                    |  |                     |    
|October   |                 |  |               |  |                    |  |                     |    
|November  | 707 025          |  | €20.26         |  |                    |  |                     |    
|December  | 317 141          |  | €20.49         |  |                    |  |                     |    
|          |                  |  |                |  |                     |  |                      |    
|Total     | 6 021 131        |  | €19.30         |  |                    |  |                     |    
|          |                  |  |                |  |                     |  |                      |    

|(a) | The above share purchases were made to satisfy commitments to deliver shares under our Share Based Plans which are described in note 29 on page 117. In 2006, we replaced the originally planned share buy back of
€500 million for 2006 by a one-off dividend of €750 million, paid at the time of and in addition to the normal interim dividend.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Exchange
  controls affecting security holdersUnder the Dutch External Financial
   Relations Act of 25 March 1994 the Minister of Finance is authorised to issue

  regulations relating to financial transactions concerning the movement of capital
   to or from third countries with respect to direct investments, establishment,

  the performing of financial services, the admission of negotiable instruments
   or goods with respect to which regulations have been issued under the Import

  and Export Act in the interest of the international legal system or an arrangement
   relevant thereto. These regulations may contain a prohibition to perform any

  of the actions indicated in those regulations without a licence. To date no
   regulations of this type have been issued which are applicable to Unilever
  N.V.

The Central Bank of the Netherlands is authorised to issue regulations with respect
to reporting obligations. Pursuant to this authorisation it has issued the Reporting
Obligations Balance of Payments 2003 (the RR 2003). Unilever N.V.
has been appointed by the Central Bank as an institution subject to the reporting
obligations and Unilever N.V. complies with such obligations.

There are currently no exchange controls affecting PLC shareholders.



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| | Shareholder
      information(continued)
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|Shareholder information (continued)
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|                                   



Nature
    of the trading marketThe principal trading markets
    upon which Unilever shares are listed are Euronext Amsterdam for NV ordinary
    and preference shares and the London Stock Exchange for PLC ordinary shares.
    NV ordinary shares mainly trade in the form of depositary receipts for shares. In the United States, NV ordinary shares and PLC American Depositary Receipts,
are traded on the New York Stock Exchange. Citibank, N.A. acts for NV and PLC
as issuer, transfer agent and, in respect of the American Depositary Receipts,
depositary. There have not been any significant trading suspensions in the past three years. At 1 March 2007 there were 6 269 registered holders of NV New York Registry shares
and 747 registered holders of PLC American Depositary Receipts in the United
States. We estimate that approximately 21% of NVs ordinary shares were
held in the United States (approximately 28% in 2005), based on the distribution
of the 2006 interim dividend payments, while most holders of PLC ordinary shares
are registered in the United Kingdom  approximately 99% in 2006 and in
2005.


NV and PLC are separate companies with separate stock exchange listings and different
shareholders. Shareholders cannot convert or exchange the shares of one for shares
of the other and the relative share prices on the various markets can, and do,
fluctuate. Following the decisions taken at the NV AGM held on 8 May 2006 and
the PLC AGM held on 9 May 2006 to simplify the relationship between the NV and
PLC ordinary shares, each NV ordinary share now represents the same underlying
economic interest in the Unilever Group as each PLC ordinary share (save for
exchange rate fluctuations). If you are a shareholder of NV, you have an interest in a Dutch legal entity,
your dividends will be paid in euros (converted into US dollars if you have shares
registered in the United States) and you will be subject to tax in the Netherlands.
If you are a shareholder of PLC, your interest is in a United Kingdom legal entity,
your dividends will be paid in sterling (converted into US dollars if you have
American Depositary Receipts) and you will be subject to United Kingdom tax.
Nevertheless, the Equalisation Agreement means that as a shareholder of either
company you effectively have an interest in the whole of Unilever. You have largely
equal rights over our combined net profit and capital reserves as shown in the
consolidated accounts. See Taxation for US residents on pages 153 and 154 and
Equalisation Agreement on pages 39 and 40. The high and low trading prices for the separate stock exchange listings are
shown in the tables on the following page.




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|Shareholder
      information(continued) | 
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|Shareholder information (continued)
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Nature of the trading market (continued)

Share prices at 31 December 2006The share price of the ordinary shares at the end of the year were as follows:

|                                                |       
|----------------------------------------------- | ------
|NV per €0.16 ordinary share in Amsterdam        | €20.70
|                                                |       
|NV per €0.16 ordinary share in New York         | $27.25
|                                                |       
|PLC per 31/9p ordinary share in London          | £14.28
|                                                |       
|PLC per American Depositary Receipt in New York | $27.82
|                                                |       

Monthly high and low prices for the most recent six months:

|                                                       |      |  | September |  | October |  | November |  | December |  | January |  | February | 
|------------------------------------------------------ | ---- |  | --------- |  | ------- |  | -------- |  | -------- |  | ------- |  | -------- | 
|                                                       |      |  |           |  |         |  |          |  |          |  |         |  |          | 
|NV per €0.16 ordinary share in Amsterdam (in €)        | High |  | 19.59     |  | 19.69   |  | 20.62    |  | 20.84    |  | 21.04   |  | 20.96    | 
|                                                       | Low  |  | 18.56     |  | 19.22   |  | 19.22    |  | 19.67    |  | 20.29   |  | 19.59    | 
|                                                       |      |  |           |  |         |  |          |  |          |  |         |  |          | 
|NV per €0.16 ordinary share in New York (in $)         | High |  | 24.90     |  | 24.93   |  | 26.49    |  | 27.32    |  | 27.43   |  | 27.21    | 
|                                                       | Low  |  | 23.74     |  | 24.20   |  | 24.49    |  | 26.13    |  | 26.27   |  | 25.94    | 
|                                                       |      |  |           |  |         |  |          |  |          |  |         |  |          | 
|PLC per 31/9p ordinary share in London (in £)          | High |  | 13.25     |  | 13.29   |  | 14.12    |  | 14.28    |  | 14.42   |  | 14.24    | 
|                                                       | Low  |  | 12.55     |  | 12.97   |  | 12.94    |  | 13.47    |  | 13.78   |  | 13.61    | 
|                                                       |      |  |           |  |         |  |          |  |          |  |         |  |          | 
|PLC per American Depositary Receipt in New York (in $) | High |  | 25.19     |  | 25.11   |  | 26.93    |  | 27.95    |  | 28.06   |  | 28.02    | 
|                                                       | Low  |  | 23.85     |  | 24.28   |  | 24.68    |  | 26.79    |  | 26.94   |  | 26.66    | 
|                                                       |      |  |           |  |         |  |          |  |          |  |         |  |          | 

Quarterly high and low prices for 2006 and 2005

|                                                       | 2006 |  | 1st   |  | 2nd   |  | 3rd   |  | 4th   | 
|------------------------------------------------------ | ---- |  | ----- |  | ----- |  | ----- |  | ----- | 
|                                                       |      |  |       |  |       |  |       |  |       | 
|NV per €0.16 ordinary share in Amsterdam (in €)        | High |  | 19.78 |  | 19.27 |  | 19.59 |  | 20.84 | 
|                                                       | Low  |  | 18.53 |  | 16.53 |  | 17.26 |  | 19.22 | 
|                                                       |      |  |       |  |       |  |       |  |       | 
|NV per €0.16 ordinary share in New York (in $)         | High |  | 23.86 |  | 24.34 |  | 24.90 |  | 27.32 | 
|                                                       | Low  |  | 22.69 |  | 20.72 |  | 21.74 |  | 24.20 | 
|                                                       |      |  |       |  |       |  |       |  |       | 
|PLC per 31/9p ordinary share in London (in £)          | High |  | 13.54 |  | 13.16 |  | 13.25 |  | 14.28 | 
|                                                       | Low  |  | 12.74 |  | 11.25 |  | 11.84 |  | 12.94 | 
|                                                       |      |  |       |  |       |  |       |  |       | 
|PLC per American Depositary Receipt in New York (in $) | High |  | 23.79 |  | 24.31 |  | 25.19 |  | 27.95 | 
|                                                       | Low  |  | 22.45 |  | 20.66 |  | 21.77 |  | 24.28 | 
|                                                       |      |  |       |  |       |  |       |  |       | 

|                                                       | 2005 |  | 1st   |  | 2nd   |  | 3rd   |  | 4th   | 
|------------------------------------------------------ | ---- |  | ----- |  | ----- |  | ----- |  | ----- | 
|                                                       |      |  |       |  |       |  |       |  |       | 
|NV per €0.16 ordinary share in Amsterdam (in €)        | High |  | 17.58 |  | 18.32 |  | 19.93 |  | 20.27 | 
|                                                       | Low  |  | 16.13 |  | 16.59 |  | 17.72 |  | 18.88 | 
|                                                       |      |  |       |  |       |  |       |  |       | 
|NV per €0.16 ordinary share in New York (in $)         | High |  | 22.89 |  | 22.98 |  | 23.97 |  | 24.02 | 
|                                                       | Low  |  | 20.89 |  | 21.38 |  | 21.55 |  | 22.18 | 
|                                                       |      |  |       |  |       |  |       |  |       | 
|PLC per 31/9p ordinary share in London (in £)          | High |  | 11.71 |  | 12.30 |  | 13.26 |  | 13.39 | 
|                                                       | Low  |  | 10.83 |  | 11.01 |  | 11.96 |  | 12.43 | 
|                                                       |      |  |       |  |       |  |       |  |       | 
|PLC per American Depositary Receipt in New York (in $) | High |  | 22.32 |  | 22.85 |  | 23.67 |  | 23.60 | 
|                                                       | Low  |  | 20.34 |  | 21.16 |  | 21.20 |  | 21.55 | 
|                                                       |      |  |       |  |       |  |       |  |       | 

Annual high and low prices

|                                                       |      |  | 2006  |  | 2005  |  | 2004  |  | 2003  |  | 2002  | 
|------------------------------------------------------ | ---- |  | ----- |  | ----- |  | ----- |  | ----- |  | ----- | 
|                                                       |      |  |       |  |       |  |       |  |       |  |       | 
|NV per €0.16 ordinary share in Amsterdam (in €)        | High |  | 20.84 |  | 20.27 |  | 19.92 |  | 19.98 |  | 24.01 | 
|                                                       | Low  |  | 16.53 |  | 16.13 |  | 14.80 |  | 15.27 |  | 16.55 | 
|                                                       |      |  |       |  |       |  |       |  |       |  |       | 
|NV per €0.16 ordinary share in New York (in $)         | High |  | 27.32 |  | 24.02 |  | 24.80 |  | 21.63 |  | 22.30 | 
|                                                       | Low  |  | 20.72 |  | 20.89 |  | 18.94 |  | 17.65 |  | 16.70 | 
|                                                       |      |  |       |  |       |  |       |  |       |  |       | 
|PLC per 31/9p ordinary share in London (in £)          | High |  | 14.28 |  | 13.39 |  | 12.80 |  | 13.96 |  | 14.64 | 
|                                                       | Low  |  | 11.25 |  | 10.83 |  | 9.85  |  | 10.56 |  | 10.50 | 
|                                                       |      |  |       |  |       |  |       |  |       |  |       | 
|PLC per American Depositary Receipt in New York (in $) | High |  | 27.95 |  | 23.67 |  | 24.17 |  | 21.93 |  | 21.91 | 
|                                                       | Low  |  | 20.66 |  | 20.34 |  | 18.22 |  | 17.46 |  | 16.58 | 
|                                                       |      |  |       |  |       |  |       |  |       |  |       | 



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| |                                       
| | --------------------------------------
| | Shareholder
    information(continued)
| |                                       

|Shareholder information (continued)
|-----------------------------------
|                                   



Taxation
    for US residents holding shares in NV The following notes are provided for guidance. US residents should consult their local tax advisers, particularly in connection with potential liability to pay US taxes on disposal, lifetime gift or bequest of their
shares. Taxation on dividends in the NetherlandsUntil the end of 2006 dividends of
companies in the Netherlands were in principle subject to dividend withholding
tax of 25%. Where a shareholder is entitled to the benefits of the current Income
Tax Convention
(the Convention) concluded on 18 December 1992 between the United
States and the Netherlands, when dividends are paid by NV to: •
    a United States resident;•
    a corporation organised under the laws of the United States (or any territory of it) having no permanent establishment in the Netherlands of
which such shares form a part of the business property; or•
    any other legal person subject to United States Federal income tax with respect to its worldwide income, having no permanent establishment in
the Netherlands of which such shares form a part of the business property; these dividends qualify for a reduction of withholding tax on dividends in the
Netherlands from 25% to 15% (to 5% if the beneficial owner is a company which
directly holds at least 10% of the voting power of NV shares and to 0% if the
beneficial owner is a qualified Exempt Organisation as defined in
Article 36 of the Convention). As of 1 January 2007 dividends of companies in
the Netherlands are in principle subject to dividend withholding tax of
15%. Where a United States resident or corporation has a permanent establishment in
the Netherlands, which has shares in NV forming part of its business property,
dividends it receives on those shares are included in that
establishments profit. They are subject to income tax or corporation tax
in the Netherlands, as appropriate, and tax on dividends in the Netherlands will
generally be applied at the full rate of 25% until the end of 2006 and 15% as
from 1 January 2007. This tax will be treated as foreign income tax eligible
for credit against the shareholders United States income taxes. Under the Convention, qualifying United States organisations that are generally
exempt from United States taxes and that are constituted and operated exclusively
to administer or provide pension, retirement or other employee benefits may be
exempt at source from withholding tax on dividends received from a Dutch corporation.
An agreement published by the US Internal Revenue Service on 20 April 2000 in
release IR-INT-2000-9 between the United States and tax authorities in the Netherlands
describes the eligibility of these US organisations for benefits under the Convention. A United States trust, company or organisation that is operated exclusively for
religious, charitable, scientific, educational or public purposes was subject
to an initial 25% withholding tax rate until the end of 2006 and 15% as from
1 January 2007. Such an exempt organisation is entitled to reclaim from Tax Authorities
in the Netherlands a refund of the Dutch dividend tax, if and to the extent that
it is exempt from United States Federal Income Tax and it would be exempt from
tax in the Netherlands if it were organised and carried on all its activities
there. If you are an NV shareholder resident in any country other than the United States
or the Netherlands, any exemption from, or reduction or


refund of, dividend withholding tax in the Netherlands may be governed by the Tax
Regulation for the Kingdom of the Netherlands or by the tax convention,
if any, between the Netherlands and your country of
residence. United States taxation on dividendsIf you are a United States shareholder,
the dividend (including the withheld amount) up to the amount of our earnings
and profits for United States Federal income tax purposes will be ordinary dividend
income. Dividends received by an individual during taxable years before 2011
will be taxed at a maximum rate of 15%, provided the individual has held the
shares for more than 60 days during the 121-day period beginning 60 days before
the ex-dividend date, that NV is a qualified foreign corporation and that certain
other conditions are satisfied. NV is a qualified foreign corporation for this
purpose. Dividends received by an individual for taxable years after 2010 will
be subject to tax at ordinary income rates. The dividends are not eligible for
the dividends received deduction allowed to corporations. For US foreign tax credit purposes, the dividend is foreign source income, and
withholding tax in the Netherlands is a foreign income tax that is eligible for
credit against the shareholders United States income taxes. However, the
rules governing the US foreign tax credit are complex, and additional limitations
on the credit apply to individuals receiving dividends eligible for the 15% maximum
tax rate on dividends described above. Any portion of the dividend that exceeds our United States earnings and profits
is subject to different rules. This portion is a tax free return of capital to
the extent of your basis in our shares, and thereafter is treated as a gain on
a disposition of the shares. Under a provision of the Dividend Tax Act in the Netherlands, NV is entitled
to a credit (up to a maximum of 3% of the gross dividend from which dividend
tax is withheld) against the amount of dividend tax withheld before remittance
to tax authorities in the Netherlands. The United States tax authority may take
the position that withholding tax in the Netherlands eligible for credit should
be limited accordingly. Taxation on capital gains in the NetherlandsUnder the Convention, if you are
a United States resident or corporation and you have capital gains on the sale
of shares of a Dutch company, these are generally not subject to taxation by
the Netherlands. An exception to this rule generally applies if you have a permanent
establishment in the Netherlands and the capital gain is derived from the sale
of shares which form part of that permanent establishments
business property. Succession duty and gift taxes in the NetherlandsUnder the Estate and Inheritance
Tax Convention between the United States and the Netherlands of 15 July 1969,
United States individual residents who are not Dutch citizens who have shares
will generally not be subject to succession duty in the Netherlands
on the individuals death, unless the shares are part of the business property
of a permanent establishment situated in the Netherlands. A gift of shares of a Dutch company by a person who is not a resident or a deemed
resident of the Netherlands is generally not subject to gift tax in the Netherlands.
A non-resident Netherlands citizen, however, is still treated as a resident of
the Netherlands for gift tax purposes for ten years and any other non-resident
person for one year after leaving the Netherlands.




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|Shareholder
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Taxation
    for US residents holding shares in PLC The following notes are provided for guidance.
    US residents should consult their local tax advisers, particularly in connection
    with potential liability to pay US taxes on disposal, lifetime gift or bequest
    of their shares. United Kingdom taxation on dividendsUnder United Kingdom law, income
    tax is not withheld from dividends paid by United Kingdom companies. Shareholders,
    whether resident in the United Kingdom or not, receive the full amount of
    the dividend actually declared. United States taxation on dividendsIf you are a shareholder resident
    in the US, the dividend up to the amount of our earnings and profits for United
    States Federal income tax purposes will be ordinary dividend income. Dividends
    received by an individual during taxable years before 2011 will be taxed at
    a maximum rate of 15%, provided the individual has held the shares for more
    than 60 days during the 121-day period beginning 60 days before the ex-dividend
    date, that PLC is a qualified foreign corporation and certain other conditions
    are satisfied. PLC is a qualified foreign corporation for this purpose. Dividends
    received by an individual for taxable years after 2010 will be subject to
    tax at ordinary income rates. The dividend is not eligible for the dividends
    received deduction allowable to corporations. The dividend is foreign source
    income for US foreign tax credit purposes. Any portion of the dividend that exceeds
    our United States earnings and profits is subject to different rules. This
    portion is a tax free return of capital to the extent of your basis in our
    shares, and thereafter is treated as a gain on a disposition of the shares.


UK taxation on capital gainsUnder United Kingdom law, when
    you sell shares you may be liable to pay capital gains tax. However, if you
    are either: •
    an individual who is neither resident nor ordinarily resident in the United Kingdom; or•
      a company which is not resident in the
        United Kingdom; you will not be liable to United Kingdom
    tax on any capital gains made on disposal of your shares. The exception is if the shares are held in
    connection with a trade or business which is conducted in the United Kingdom
    through a branch or an agency. UK inheritance taxUnder the current estate and gift
    tax convention between the United States and the United Kingdom, ordinary
    shares held by an individual shareholder who is: •
    domiciled for the purposes of the convention in the United States; and•
    is not for the purposes of the convention a national of the United Kingdom; will not be subject to United Kingdom inheritance
    tax on: •
      the individuals death; or•
      on a gift of the shares during the individuals
        lifetime. The exception is if the shares are part of
    the business property of a permanent establishment of the individual in the
    United Kingdom or, in the case of a shareholder who performs independent personal
    services, pertain to a fixed base situated in the United Kingdom.




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| | Shareholder
      information(continued)
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|Shareholder
        information(continued)
|------------------------------------------
|                                          



Dividend
  recordOur interim ordinary dividends are
  normally announced in November and paid in December. Final ordinary dividends
  are normally proposed in February and, if approved by shareholders at the Annual
  General Meetings, paid in June.

The following tables show the dividends paid
  by NV and PLC for the last five years, expressed in terms of the revised share
  denominations which became effective from 22 May 2006. Dividends have been translated
  into US dollars at the exchange rates prevailing on the dates of declaration
  of the dividend. Differences between the amounts ultimately received by US holders
  of NV and PLC shares are the result of changes in exchange rate between the
  equalisation of the dividends and the date of payment.

The interim dividend is normally 35% of the
  previous years total normal dividend per share, based on the stronger
  of our two parent currencies over the first nine months of the year. Equalisation
  of the interim dividend in the other currency takes place at the average exchange
  rate of the third quarter. Equalisation of the final dividend takes place at
  the average exchange rate for the full year.

Final dividends for 2006 are payable on 21
  June 2007, subject to approval at the AGMs. For purposes of illustration, the
  amounts payable in respect of NV New York Registry Shares and PLC ADRs have
  been translated in the table below at rates of exchange on8
  February 2007, which is the date on which the proposed dividends were announced.
  The actual amounts payable in US dollars will be calculated by reference to
  the exchange rates on the day on which the dividends are approved (15 May 2007
  in the case of NV and 16 May 2007 in the case of PLC).

The dividend timetable for 2007 is shown
  on page 158.

|NV Dividends                                    |           |  |        |  |        |  |        |  |        |  |        | 
|----------------------------------------------- | --------- |  | ------ |  | ------ |  | ------ |  | ------ |  | ------ | 
|                                                |           |  | 2006   |  | 2005   |  | 2004   |  | 2003   |  | 2002   | 
|                                                |           |  |        |  |        |  |        |  |        |  |        | 
|Interim dividend per €0.16                      | (Euros)   |  | 0.2300 |  | 0.2200 |  | 0.2100 |  | 0.1967 |  | 0.1833 | 
|Final dividend per €0.16                        | (Euros)   |  |       |  | 0.4400 |  | 0.4200 |  | 0.3833 |  | 0.3833 | 
|Proposed final dividend per €0.16               | (Euros)   |  | 0.4700 |  |       |  |       |  |       |  |       | 
|One-off dividend per €0.16                      | (Euros)   |  | 0.2600 |  |       |  |       |  |       |  |       | 
|                                                |           |  |        |  |        |  |        |  |        |  |        | 
|Interim dividend per €0.16 (US Registry)        | (Dollars) |  | 0.2934 |  | 0.2638 |  | 0.2685 |  | 0.2296 |  | 0.1800 | 
|Final dividend per €0.16 (US Registry)          | (Dollars) |  |       |  | 0.5613 |  | 0.5399 |  | 0.4545 |  | 0.4380 | 
|Proposed final dividend per €0.16 (US Registry) | (Dollars) |  | 0.6103 |  |       |  |       |  |       |  |       | 
|One-off dividend per €0.16 (US Registry)        | (Dollars) |  | 0.3316 |  |       |  |       |  |       |  |       | 
|                                                |           |  |        |  |        |  |        |  |        |  |        | 

|                                                      |           |  |        |  |        |  |        |  |        |  |        | 
|----------------------------------------------------- | --------- |  | ------ |  | ------ |  | ------ |  | ------ |  | ------ | 
|PLC Dividends                                         |           |  |        |  |        |  |        |  |        |  |        | 
|                                                      |           |  | 2006   |  | 2005   |  | 2004   |  | 2003   |  | 2002   | 
|                                                      |           |  |        |  |        |  |        |  |        |  |        | 
|Interim dividend per 31/9p                            | (Pounds)  |  | 0.1562 |  | 0.1504 |  | 0.1407 |  | 0.1369 |  | 0.1158 | 
|Final dividend per 31/9p                              | (Pounds)  |  |       |  | 0.3009 |  | 0.2849 |  | 0.2649 |  | 0.2407 | 
|Proposed final dividend per
      31/9p               | (Pounds)  |  | 0.3204 |  |       |  |       |  |       |  |       | 
|One-off dividend per 31/9p                            | (Pounds)  |  | 0.1766 |  |       |  |       |  |       |  |       | 
|                                                      |           |  |        |  |        |  |        |  |        |  |        | 
|Interim dividend per 31/9p
      (US Registry)        | (Dollars) |  | 0.2983 |  | 0.2655 |  | 0.2586 |  | 0.2315 |  | 0.1804 | 
|Final dividend per 31/9p
      (US Registry)          | (Dollars) |  |       |  | 0.5583 |  | 0.5366 |  | 0.4694 |  | 0.3866 | 
|Proposed final dividend per
      31/9p (US Registry) | (Dollars) |  | 0.6317 |  |       |  |       |  |       |  |       | 
|One-off dividend per 31/9p
      (US Registry)        | (Dollars) |  | 0.3372 |  |       |  |       |  |       |  |       | 
|                                                      |           |  |        |  |        |  |        |  |        |  |        | 



|UnileverAnnual Report on Form 20-F 2006 | 155
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|                                           | 
|------------------------------------------ | 
|Shareholder
      information(continued)   | 
|                                           | 
|Shareholder
        information(continued)
|                                          



Glossary

The following is intended to provide a general guide to the meanings of various terms which may be used in this report.

|Term used in this report                        | US equivalent or brief description                                                          
|----------------------------------------------- | --------------------------------------------------------------------------------------------
|                                                |                                                                                             
|Accounts                                        | Financial statements                                                                        
|                                                |                                                                                             
|Associate                                       | A business which is not a subsidiary or a joint venture, but in which the Group has         
|                                                | a shareholding and exercises significant influence                                          
|                                                |                                                                                             
|Called up share capital                         | Ordinary shares, issued and fully paid                                                      
|                                                |                                                                                             
|Creditors                                       | Accounts payable/Payables                                                                   
|                                                |                                                                                             
|Creditors: amounts due after more than one year | Long-term accounts payable                                                                  
|                                                |                                                                                             
|Creditors: amounts due within one year          | Current accounts payable                                                                    
|                                                |                                                                                             
|Debtors                                         | Accounts receivable/Receivables                                                             
|                                                |                                                                                             
|Finance cost                                    | Interest expense                                                                            
|                                                |                                                                                             
|Finance income                                  | Interest income                                                                             
|                                                |                                                                                             
|Finance lease                                   | Capital lease                                                                               
|                                                |                                                                                             
|Freehold                                        | Ownership with absolute rights in perpetuity                                                
|                                                |                                                                                             
|Gearing                                         | Leverage                                                                                    
|                                                |                                                                                             
|Group, or consolidated, accounts                | Consolidated financial statements                                                           
|                                                |                                                                                             
|Joint venture                                   | A business which is jointly controlled by the Group and one or more                         
|                                                | external partners                                                                           
|                                                |                                                                                             
|Nominal value                                   | Par value                                                                                   
|                                                |                                                                                             
|Operating margin                                | Operating profit expressed as a percentage of turnover                                      
|                                                |                                                                                             
|Operating profit                                | Net operating income                                                                        
|                                                |                                                                                             
|Profit                                          | Income (or earnings)                                                                        
|                                                |                                                                                             
|Profit and loss account                         | Income statement                                                                            
|                                                |                                                                                             
|Profit attributable to ordinary shareholders    | Net income attributable to ordinary stockholders                                            
|                                                |                                                                                             
|Profit retained                                 | Retained earnings                                                                           
|                                                |                                                                                             
|Provisions                                      | Liabilities other than debt and specific accounts payable                                   
|                                                |                                                                                             
|Reserves                                        | Stockholders equity other than paid-up capital                                             
|                                                |                                                                                             
|Share capital                                   | Capital stock or common stock                                                               
|                                                |                                                                                             
|Share option                                    | Stock option                                                                                
|                                                |                                                                                             
|Share premium account                           | Additional paid-in capital relating to proceeds of sale of stock in excess of par value or  
|                                                | paid-in surplus                                                                             
|                                                |                                                                                             
|Shareholders equity                            | Stockholders equity                                                                        
|                                                |                                                                                             
|Shares in issue                                 | Shares outstanding                                                                          
|                                                |                                                                                             
|Statement of recognised income and expense      | Statement of comprehensive income                                                           
|                                                |                                                                                             
|Turnover                                        | Sales revenues                                                                              
|                                                |                                                                                             
|Weighted average cost of capital                | The cost of equity multiplied by the market capitalisation, plus the after taxation interest
|                                                | cost of debt multiplied by the market value of the net debt, divided by the sum of the      
|                                                | market values of debt and equity                                                            
|                                               



|156 | UnileverAnnual Report on Form 20-F 2006
|--- | ---------------------------------------

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| |                                         
| | ----------------------------------------
| | Shareholder
      information(continued)
| |                                         

|Shareholder
        information(continued)
|------------------------------------------
|                                          



Cross
  reference to Form 20-F

PART I1
        
          Identity
        of directors, senior management and advisers
      n/a2
        
        Offer statistics and expected timetable
    n/a3
        
        Key information3A
        
        Selected financial data
    109, 141-146, 1553B
        
        Capitalisation and indebtedness
    n/a3C
        
        Reasons for the offer and use of proceeds
    n/a3D
        
        Risk factors
    9-10, 100-1014
        
        Information on the company4A
        
        History and development of the company
    1, 5-10, 13-32, 113, 1704B
        
        Business overview
    5-10, 13-32,
        79-824C
        
        Organisational structure
    33, 147-1484D
        
        Property, plant and equipment
    8, 904A
          
        Unresolved staff comments
    n/a5
        
        Operating and financial review and prospects5A
        
        Operating results
    13-32, 76,
        99-1015B
        
        Liquidity and capital resources
    23-32, 66-67,
        90, 95-102, 1125C
        
          Research and development, patents
        and licences, etc.
      5-10,
          13-22, 835D
        
        Trend information
    3-4, 11-325E
        
        Off balance sheet arrangements
    31, 99-1015F
        
        Tabular disclosure of contractual obligations
    30-325G
        
        Safe harbour
    1, Inside
        back cover6
        
        Directors, senior management and employees6A
        
        Directors and senior management
    33-476B
        
        Compensation
    49-62, 84,
        103-107, 117-1226C
        
        Board practices
    3, 33-646D
        
        Employees
    6-76E
        
        Share ownership
    49-62, 117-1217
        
        Major shareholders and related party transactions7A
        
        Major shareholders
    41-42, 149-1527B
        
        Related party transactions
    6, 1227C
        
        Interests of experts and counsel
    n/a8
        
        Financial information8A
        
          Consolidated statementsand
               other financial information
      69-146,
          1558B
        
        Significant changes
    32, 1239
        
        The offer and listing9A
        
        Offer and listing details
    151-1529B
        
        Plan of distribution
    n/a9C
        
        Markets
    Inside front
        cover, 151-1529D
        
        Selling shareholders
    n/a9E
        
        Dilution
    n/a9F
        
        Expenses of the issue
    n/a


10
        
          Additional
        information10A
        
          Share capital
      n/a10B
        
          Memorandum and articles of
        association
      33-47, 96, 10910C
        
          Material contracts
      29, 33, 39-4110D
        
          Exchange controls
      15010E
        
          Taxation
      153-15410F
        
          Dividends and paying agents
      n/a10G
    
      Statement by experts
      n/a10H
        
          Documents on display
      13110I
        
          Subsidiary information
      n/a11
        
          Quantitative
        and qualitative disclosures aboutmarket
        risk
      9-10, 94-10212
        
          Description
        of securities other than equity securities
      n/aPART II13
        
          Defaults,
        dividend arrearages and delinquencies
      n/a14
        
          Material
                 modifications to the rights of security holders
        and use of proceeds
      n/a15
        
          Controls
        and procedures
      66-6916
        
          Reserved16A
        
          Audit Committee financial
        expert
      3716B
        
          Code of Ethics
      33, 4516C
        
          Principal accountant fees
        and services
      63, 12316D
        
          Exemptions from the
        Listing Standards forAudit Committees
      n/a16E
        
          Purchases of equity
        securities by the issuer andaffiliated
        purchasers
      150PART III17
        
          Financial
        statements
      n/a18
        
          Financial
        statements
      69-14019
        
        Exhibits* *
      Filed with the
        United States Securities and Exchange Commission.Unilevers agent
      in the United States is Mr R Soiefer, Senior Vice-President, General Counsel
      and Secretary, Unilever United States, Inc., 700 Sylvan Avenue, Englewood
      Cliffs, NJ 07632.




|UnileverAnnual Report on Form 20-F 2006 | 157
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|                                           | 
|------------------------------------------ | 
|Shareholder
      information(continued)   | 
|                                           | 
|Shareholder
        information(continued)
|                                          



Financial
  calendar

|Annual General Meetings |                                              | 
|----------------------- | -------------------------------------------- | 
|                        |                                              | 
|NV                      | 10:30 am Tuesday 15 May 2007
      Rotterdam | 
|                        |                                              | 
|PLC                     | 11:00 am Wednesday 16 May 2007 London        | 
|                        |                                              | 

|                         |               |  |                |  |                 | 
|------------------------ | ------------- |  | -------------- |  | --------------- | 
|Announcements of results |               |  |                |  |                 | 
|                         |               |  |                |  |                 | 
|First Quarter            | 3 May 2007    |  | Third Quarter  |  | 1 November 2007 | 
|First Half Year          | 2 August 2007 |  | Final for Year |  | 7 February 2008 | 
|                         |               |  |                |  |                 | 

Final ordinary dividends for 2006Announced 8 February 2007 and to be declared 15 May 2007 (NV) and 16 May 2007 (PLC).

|                                   | Ex-dividend       |  | Record      |  | Payment      | 
|---------------------------------- | ----------------- |  | ----------- |  | ------------ | 
|                                   | date              |  | date        |  | date         | 
|                                   |                   |  |             |  |              | 
|NV                                 | 17
      May 2007 |  | 21 May 2007 |  | 21 June 2007 | 
|PLC                                | 23 May 2007       |  | 25 May 2007 |  | 21 June 2007 | 
|NV  New York Registry Shares      | 17 May 2007       |  | 21 May 2007 |  | 21 June 2007 | 
|PLC  American Depositary Receipts | 23 May 2007       |  | 25 May 2007 |  | 21 June 2007 | 
|                                   |                   |  |             |  |              | 

Interim dividends for 2007To be announced 1 November 2007.

|                                   | Ex-dividend     |  | Record          |  | Payment         | 
|---------------------------------- | --------------- |  | --------------- |  | --------------- | 
|                                   | date            |  | date            |  | date            | 
|                                   |                 |  |                 |  |                 | 
|NV                                 | 2 November 2007 |  | 6 November 2007 |  | 5 December 2007 | 
|PLC                                | 7 November 2007 |  | 9 November 2007 |  | 5 December 2007 | 
|NV  New York Registry Shares      | 2 November 2007 |  | 6 November 2007 |  | 5 December 2007 | 
|PLC  American Depositary Receipts | 7 November 2007 |  | 9 November 2007 |  | 5 December 2007 | 
|                                   |                 |  |                 |  |                 | 

Preferential dividends  NV

|                                |  |                          |  | Ex-dividend               |  | Record                    |  | Payment                | 
|------------------------------- |  | ------------------------ |  | ------------------------- |  | ------------------------- |  | ---------------------- | 
|                                |  | Announced                |  | date                      |  | date                      |  | date                   | 
|                                |  |                          |  |                           |  |                           |  |                        | 
|4%Cumulative
        Preference |  | 7 December 2007          |  | 10
        December 2007  |  | 12
        December 2007  |  | 2
        January 2008 | 
|6%Cumulative
        Preference |  | 7 September
        2007 |  | 10 September
        2007 |  | 12 September
        2007 |  | 1 October
        2007 | 
|7%Cumulative
        Preference |  | 7 September
        2007 |  | 10 September
        2007 |  | 12 September
        2007 |  | 1 October
        2007 | 
|                                |  |                          |  |                           |  |                           |  |                        | 

|                                                                                      |                                       |  |                                       | 
|------------------------------------------------------------------------------------- | ------------------------------------- |  | ------------------------------------- | 
|                                                                                      |                                       |  |                                       | 
|Contact
      details                                                                 |                                       |  |                                       | 
|Rotterdam                                                                             | London                                |  | New York                              | 
|                                                                                      |                                       |  |                                       | 
|Unilever N.V.                                                                         | Unilever PLC                          |  | Unilever United States, Inc.          | 
|Investor Relations Department                                                         | Investor Relations Department         |  | Investor Relations Department         | 
|Weena 455, PO Box 760                                                                 | PO Box 68, Unilever House             |  | 700 Sylvan Avenue, Englewood Cliffs   | 
|3000 DK Rotterdam                                                                     | 100 Victoria Embankment               |  | NJ 07632                              | 
|The Netherlands                                                                       | London EC4P 4BQ                       |  | USA                                   | 
|                                                                                      | United Kingdom                        |  |                                       | 
|                                                                                      |                                       |  |                                       | 
|Telephone +44 (0)20 7822 6830                                                         | Telephone +44 (0)20 7822 6830         |  | Telephone +1 (0)201 894 2615          | 
|Telefax      +44 (0)20 7822 5754                                                      | Telefax      +44(0)20
      7822 5754 |  | Telefax      +1
      (0)201 894 2222 | 
|                                                                                      |                                       |  |                                       | 
|Any queries can
    also be sent to us electronically via www.unilever.com/contactus. |                                       |  |                                      
|                                                                                      |                                       |  |                                      



|158 | UnileverAnnual Report on Form 20-F 2006
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| |                                             
| | --------------------------------------------
| | Shareholder
          information(continued)
| |                                             

|Shareholder information(continued)
|----------------------------------
|                                  



WebsiteShareholders are encouraged to
    visit our website www.unilever.com, which has
    a wealth of information about Unilever. There is a section designed specifically
    for investors at www.unilever.com/investorcentre.
    It includes detailed coverage of the Unilever share price, our quarterly and
    annual results, performance charts, financial news and investor relations
    speeches and presentations. It also includes conference and investor/analyst
    presentations. You can also view this years and prior
    years Annual Review and Annual Report and Accounts documents at www.unilever.com/investorcentre. PLC shareholders can elect not to receive
    paper copies of the Annual Review, the Annual Report and Accounts and other
    shareholder documents by registering at www.unilever.com/shareholderservices
    if they prefer to view these on our website. Share
    registration The NetherlandsN.V. Algemeen Nederlands 
    Trustkantoor ANTPO Box 11063 
    1001 GB Amsterdam Telephone
        
          + 31
        (0) 20 522 2555Telefax
        
        + 31
 (0) 20 522 2500Email
  registers@ant-trust.nl UKComputershare Investor Services PLC 
PO Box 82 
The Pavilions 
Bridgwater Road 
Bristol BS99 7NH Telephone
        
          +44(0)870600 3977Telefax
        
          +44(0)870703 6119Website
        www.unilever.com/shareholderservicesEmail
        web-queries@computershare.co.uk USACitibank Shareholder Services 
PO Box 43077 
Providence     RI 02940-3077 Toll free phone (inside US)
        888 502 6356Toll phone (outside US)
        +
          1 816 843 4281Website
        www.citibank.com/adrEmail
        citibank@shareholders-online.com


PublicationsCopies of the following publications
    can be accessed directly or ordered through www.unilever.com/investorcentre
    or www.unilever.nl/onsbedrijf/beleggers. Unilever Annual Review 2006Including Summary Financial Statement.
    Available in English or Dutch, with financial information in euros, pounds
    sterling and US dollars. Unilever Annual Report and Accounts 2006Available in English or Dutch,
    with figures in euros. It forms the basis for the Form 20-F that is filed
    with the United States Securities and Exchange Commission. Quarterly Results AnnouncementsAvailable in English or Dutch,
    with figures in euros; supplements in English, with pounds sterling or US
    dollar figures, are also available. Unilever Annual Report on Form 20-FFiled with the SEC at www.sec.gov.
    Printed copies are available, free of charge, upon request to Unilever United
    States, Inc., Investor Relations Department, 700 Sylvan Avenue, Englewood
    Cliffs, NJ 07632, USA.




|UnileverAnnual Report on Form 20-F 2006 | 159
|--------------------------------------- | ---

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|                                         | 
|---------------------------------------- | 
|Shareholder
      information(continued) | 
|                                         | 

|Index
|-----
|     



Accounting policies
        1, 23-24, 74-78Acquisitions
        29, 74, 113Advertising and promotion
        24Americas, The
        16-17, 79-81Annual General Meetings
        38, 158Asia Africa
        18-19, 79-81Associates
        92, 122Audit Committee
        37, 63Auditors
        63, 69, 123Balance sheet
        30, 72Biographical details
        46-47Biological assets
        92Board committees
        37-38Board remuneration
        49-62Boards
        34Borrowings
        76, 96-98Brands
        6, 20Capital expenditure
        80, 82, 90-91Cash
        76, 95Cash flow
        31, 73, 116Categories
        5Chairman
        3-4, 35Commitments
        112Competition
        5Contingent liabilities
        112Corporate governance
        33-47Corporate responsibility
        9Corporate Responsibility and Reputation Committee
        37, 64Deferred tax
        24, 93Depreciation
        80, 90-91Directors responsibilities
        66-67Discontinued operations
        114-115Disposals
        29, 113Distribution
        5Diversity
        7Dividends
        29, 88, 155, 158Earnings per share
        41, 70, 87Employees
        6-7Equalisation Agreement
        39-40Equity
        108Europe
        14-15, 79-81Exchange rates
        24, 74, 146Executive Directors
        35-36, 46, 51-53, 55-60Exports
        6Finance and liquidity
        31Finance costs and income
        84Financial calendar
        158Financial instruments
        23, 75-76, 99-101Financial review
        23-32Foods
        6, 81-82Functions
        5Goodwill
        23, 75, 88-89Gross profit
        83Group Chief Executive
        11-12, 35Group structure
        1Guarantor statements
        135-140Home and Personal Care
        6, 81-82Home care
        6, 81-82Ice cream and beverages
        6, 81-82Impairment
        88-89Income statement
        70Information technology
        7Innovation
        20-22Intangible assets
        23, 75, 88-89


Intellectual property
        7Internal and disclosure controls
        66International Financial Reporting Standards (IFRS)
        1, 74, 141-142Inventories
        76, 94Joint ventures
        92, 122Key management
        122Key performance indicators
        5Laws and regulation
        8Leases
        77, 112Legal proceedings
        8-9Market capitalisation
        29Net debt
        27Nomination Committee
        37, 48Non-Executive Directors
        36, 46, 53, 61-62Non-GAAP measures
        24Off-balance sheet arrangements
        31Operating costs
        83Operating profit
        79-82Operating review
        13-22Payables
        102Pensions and similar obligations
        23-24, 32, 76,
    103-107, 126-130Personal care
        6, 81-82Post balance sheet events
        32, 123Preference shares and dividends
        96, 158Principal group companies
        147-148Property, plant and equipment
        8, 75, 90-91Provisions
        24, 77, 102Receivables
        94Regions
        5, 13-19Related party transactions
        6, 122Remuneration Committee
        37, 49-62Research and development
        20-21Reserves
        110Restructuring
        83, 102Retained profit
        111Return on invested capital (ROIC)
        24-26Revenue recognition
        77Risk management
        9, 63, 100-101Sarbanes-Oxley
        68Savoury, dressings and spreads
        6, 81-82Seasonality
        6Segment information
        77, 79-82, 132-133Share-based payments
        77, 117-121Share capital
        41, 109Shareholders
        38-39, 149-150Share prices
        152Share registration
        159Staff costs
        84Statement of recognised income and expense
        71Strategy
        5Taxation
        76-77, 85-86Total shareholder return (TSR)
        24, 27Treasury
        31Turnover
        79-82Unilever Executive (UEx)
        47Unilever Foodsolutions
        6Underlying sales growth (USG)
        25Ungeared free cash flow (UFCF)
        24-26US GAAP
        124-140, 145Ventures
        6Vitality
        21Voting
        39Website
        159




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CautionarystatementThis document may contain forward-looking
  statements, including forward-looking statements within the meaning
  of the United States Private Securities Litigation Reform Act of 1995. Words
  such as expects, anticipates, intends or
  the negative of these terms and other similar expressions of future performance
  or results, including financial objectives to 2010, 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 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.



Designed and produced by Unilever Communications
    in conjunction with Addison Corporate Marketing Photography by Igor Emmerich
    
    Typeset by Pauffley, London 
    Printed by St Ives Westerham Press Ltd. 
    ISO 14001:2004 This document is printed on Greencoat Plus
    Velvet which has been independently certified according to the rules of the
    Forest Stewardship Council (FSC). Greencoat Plus Velvet contains 80% recycled fibre. The manufacturing mill is accredited with
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    to retain it, please pass it on to other interested readers or dispose of
    it in your recycled paper waste, thank you.


| | 
| | 

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| | 
| | 



Unilever N.V.Weena 455, PO
    Box 760 
    3000 DK Rotterdam 
    The Netherlands 
    T +31 (0)10 217 4000 
    F +31 (0)10 217 4798 Commercial Register Rotterdam
    
    Number: 24051830 Unilever PLCPO Box 68, Unilever
    House 
    100 Victoria Embankment 
    London EC4P 4BQ 
    United Kingdom 
    T +44 (0)20 7822 5252 
    F +44 (0)20 7822 5951 Unilever PLC registered
    officeUnilever PLC 
    Port Sunlight 
    Wirral
    Merseyside CH62 4ZD
    United Kingdom Registered in England and
    Wales 
    Company Number: 41424 Unilever United States,
    Inc.Investor Relations
    Department 
    700 Sylvan Avenue 
    Englewood Cliffs 
    NJ 07632 
    USAT +1 201 894 2615
    F +1 201 894 2222 www.unilever.com





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SIGNATURES

The registrant hereby certifies that it meets
    all of the requirements for filing on Form 20-F and that it has duly caused
    and authorised the undersigned to sign this Annual Report on its behalf.

|Unilever N.V.                      
|-----------------------------------
|                                   
|(Registrant)                       
|                                   
|                                   
|                                   
|/s/ J A A van der Bijl             
|                                   
|(Signature)                        
|J A A van der Bijl, Joint Secretary
|                                   
|                                   
|Date: 26 March 2007                
|                                   

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UNILEVER
          NV  20-F EXHIBIT LIST

Item 19. Exhibits

Exhibit Number Description of
    Exhibit

|1.1  | Memorandum
        and Articles of Association of Unilever NV, as amended                                                                                                                                                                           
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|2.1  | Indenture dated as of August
        1, 2000, among Unilever Capital Corporation, Unilever N.V., Unilever
        PLC, Unilever United States, Inc. and The Bank of New York, as Trustee,
        relating to Guaranteed Debt Securities 1          
|2.2  | Trust Deed dated as of
        July 22, 1994, among Unilever N.V., Unilever PLC, Unilever Capital Corporation,
        Unilever United States, Inc. and The Law Debenture Trust Corporation
        p.l.c., relating to Guaranteed Debt Securities 2
|4.1  | Equalisation Agreement
        between Unilever N.V. and Unilever PLC                                                                                                                                                                               
|4.2  | Service Contracts of the
        Executive Directors of Unilever PLC 3                                                                                                                                                                              
|4.3  | Letters
            regarding compensation of Executive Directors of Unilever NV                                                                                                                                                                    
|4.4  | Unilever North America
        2002 Omnibus Equity Compensation Plan 4                                                                                                                                                                              
|4.5  | The Unilever NV International
        1997 Executive Share Option Scheme 5                                                                                                                                                                          
|4.6  | The Unilever Long Term
        Incentive Plan 6                                                                                                                                                                                                     
|4.7  | The
            Global Performance Share Plan 2005                                                                                                                                                                                                  
|7.1  | Computation of Ratio of
        earnings to fixed charges and Return on invested capital 7                                                                                                                                                          
|8.1  | List of Subsidiaries 8                                                                                                                                                                                                                              
|10.1 | Consent
            of PricewaterhouseCoopers Accountants N.V. and PricewaterhouseCoopers
            LLP                                                                                                                                           
|12.1 | Certifications
            of the Group Chief Executive and Financial Director/Chief Financial
            Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                        
|13.1 | Certifications
            of the Group Chief Executive and Financial Director/Chief Financial
            Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                        

Certain instruments which define
    rights of holders of long-term debt of the Company and its subsidiaries are
    not being filed because the total amount of securities authorized under each
    such instrument does not exceed 10% of the total consolidated assets of the
    Company and its subsidiaries. The Company and its subsidiaries hereby agree
    to furnish a copy of each such instrument to the Securities and Exchange
    Commission upon request.

|1 | Incorporated by reference to the Form
        6-K furnished to the SEC on October 23, 2000.              
|- | ---------------------------------------------------------------------------------------------------------
|2 | Incorporated by reference to Exhibit
        2.2 of Form 20-F filed with the SEC on March 28, 2002.      
|3 | Incorporated by reference to Exhibit
        4.2 of Form 20-F filed with the SEC on March 29, 2006.      
|4 | Incorporated by reference to Exhibit
        99.1 of Form S-8 filed with the SEC on February 27, 2003.   
|5 | Incorporated by reference to Exhibit
        4.5 of Form 20-F filed with the SEC on March 28, 2002.      
|6 | Incorporated by reference to Exhibit
        4.7 of Form 20-F filed with the SEC on March 28, 2002.      
|7 | The required information is set forth
        on page 141 of the Annual Report on Form 20-F.             
|8 | The required information is set forth
        on pages 147-148 of the Annual Report on Form
        20-F.



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