##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 
 FORM 20-F
 (Mark one)
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE
SECURITIES EXCHANGE ACT OF 1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 OR
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring this shell company report
 For the transition period from  to
 
 Commission
file number 001-04547
 UNILEVER
N.V.
  The Netherlands
 Weena 455, 3013 AL, Rotterdam, The Netherlands
 S.H.M.A. Dumoulin, Group Secretary  Tel: +31-(0)10-217 4999, Fax: +31 (0)10 217
4287,
Unilever N.V. Weena 455, 3013 AL, Rotterdam, The Netherlands
   Title of each class
    
    Name of each exchange on which registeredN.V. New York registry shares each
representing one ordinary share of the nominal amount of 0.16 each
    
    New York Stock Exchange
 None
 None
  The total number of outstanding shares of the issuers capital stock at the close of the
period covered by the annual report was: 1,714,727,700 ordinary
shares
  þ o
  o þ
  þ o
  þ o o
  U.S. GAAP o
    
    International Financial Reporting Standards
as issued by the International AccountingStandards Board þ
    
    Other o
 o o
  o þ




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(GRAPHIC) Annual Report on Form 20-F 2008   Adding Vitality to Life




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(GRAPHIC) 
  Report of the Directors
 1
    
    Our highlights2
    
    Our brands and operations4
    
    Chairmans statement6
    
    Chief Executive Officers review8
    
    Unilever Executive9
    
    Vitality18
    
    Board of Directors20
    
    About Unilever20
    

Our business and our strategy20
    
    Key indicators21
    
    Organisation22
    
    Operating environment22
    
    Resources24
    
    Laws and regulation25
    
    Outlook and risks29
    
    Performance review35
    
    Financial Review44
    
    Corporate governance59
    
    Report of the Nomination Committee60
    
    Report of the Remuneration Committee74
    
    Report of the Audit Committee75
    
    Report of the Corporate Responsibility
and Reputation Committee
 Financial statements
 78
    
    Statement of Directors responsibilities80
    
    Auditors report81
    
    Consolidated income statement81
    
    Consolidated statement of recognised income and expense82
    
    Consolidated balance sheet83
    
    Consolidated cash flow statement84
    
    Notes to the consolidated accounts137
    
    Financial record140
    
    Principal group companies and non-current investments
 Shareholder information
 149
    
    Analysis of shareholding150
    
    Exchange controls affecting security holders151
    
    Nature of the trading market153
    
    Taxation for US persons holding shares in NV154
    
    Taxation for US persons holding shares in PLC155
    
    Dividend record156
    
    Glossary157
    
    Cross-reference to Form 20-F158
    
    Financial calendar158
    
    Contact details159
    
    Website159
    
    Publications159
    
    Share registration160
    
    Index
 Adding Vitality to Life
 Unilevers 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.
 The Unilever Group
    Basis of reporting
  Exchange rates
 Forward-looking statements




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##### Table of Contents



Our highlights
  
 Financial
 7.4%
underlying sales growth
 
 
    
    Ungeared free cash flow of 3.2 billion
    
    Profits on disposals of 2.2 billion pre-tax
    
    Return on invested capital of 15.7%
    
    Total shareholder return ranking
9th out of 21
    
    Earnings per share of 1.79, including 0.36 net benefit from disposals and restructuring
    
    Total dividend increased to
0.77 per
Ordinary 0.16
share of NV and 60.74P, per
Ordinary
31/9p share of PLC
    
 Social
 22 000
products have had their nutritional profile assessed
 
 
    
    Three quarters of the food products in our R&D pipeline bring specific nutritional or health
benefits
    
    16 million school meals delivered to 76 000 children in 2008 through our partnership with the
World Food Programme
    
    Four million children reached by Signal / Pepsodent / Close Up toothpaste brands through
school-based oral health programmes in 2008
    
    120 million people reached by Lifebuoy brands handwashing programme in India since 2002
    
 Environmental
 10 years
as sector leader of the Dow Jones Sustainability Indexes
 
 
    
    2015: the year by which we are committed to sourcing all palm oil from certified
sustainable sources
    
    c. 50% of the tea we sell in Western Europe is grown on Rainforest Alliance
Certified farms
    
    39%
reduction in
CO2 emissions per tonne of production over the period 1995-2008*
 *
    2008 data is preliminary. It will be independently assured and reported in our online
Sustainable Development Report 2008 at www.unilever.com/sustainability
   Unilever Annual Report on Form 20-F 2008     1




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() Report of the Directors
 Our brands and operations
  Our strong portfolio of foods, home
and personal care brands is trusted by
consumers the world over. 13 of our
brands achieve annual sales of 1 billion
or more. Our top 25 brands account for
over 70% of our sales.
 
   
  Operational achievements
 
    
    Strong broad-based underlying sales growth of 7.4%
across categories
    
    More competitive cost base: 1.1 billion savings from supply
chain and organisational efficiencies
    
    Increased investment behind
our brands
    
    Portfolio reshaped through disposals, including North
American laundry, Boursin, Lawrys and Bertolli olive oil
    
    Portfolio strengthened through the acquisition of Inmarko ice
cream in Russia and the planned acquisition of the TIGI hair
salon brands
    
    Named International Supplier of the Year by Tesco for the
third year running
 Regional highlights
   2     Unilever Annual Report on Form 20-F 2008




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(GRAPHIC) 
 *
    
    Some of our brands may be marketed
under alternative names in certain countries.
  Category highlights
 Savoury, dressings and spreads
 
    
    Turnover of 14 232 million
    
    Underlying sales growth of 7.6%
 Ice cream and beverages
 
    
    Turnover of 7 694 million
    
    Underlying sales growth of 5.9%
 Personal care
 
    
    Turnover of 11 383 million
    
    Underlying sales growth
of 6.6%
 Home care
 
    
    Turnover of 7 214 million
    
    Underlying sales growth of 9.8%
 Key facts
 174 000 employees at the end of 2008
 20 nationalities among our top tier
managers
 Around 100 countries in which we operate
 91m invested in community
programmes worldwide
 927m spent on R&D worldwide
 Around 270 manufacturing sites worldwide
   Unilever Annual Report on Form 20-F 2008     3




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Adding Vitality to Life
  
  Our strategy, in an unpredictable economic environment, is to maintain our growth momentum and
deliver competitive levels of profitability.




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() 
  Michael Treschow  Chairman
 Patrick Cescau
 On behalf of the
Directors and everyone at
Unilever, I want to
express our appreciation
to Patrick Cescau for
his services to Unilever
over the last 35 years.
By any standards,
Patricks career has been
a remarkable one,
culminating with his
appointment in 2005 as
Unilevers first ever
Chief Executive Officer.
 Since that time he has
helped to transform the
company. Significant
organisational  particularly the implementation of One Unilever 
 change has been
accompanied by a
consistent improvement in
business results and
overall performance.
Patrick leaves the
business stronger than he
found it, well placed to
meet the challenges that
lie ahead.
 Throughout his time in
the business, Patrick
also came to embody the
qualities and values that
help to make Unilever a
special business:
respect,
humanity, integrity. It
is for these reasons that
he is liked and respected
in equal measure, both
inside the company and
outside.
 We all wish Patrick
a long and happy
retirement.
   Unilever Annual Report on Form 20-F 2008 5




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() Adding Vitality to Life
  
  It is a great pleasure to report to you for the
first time as Unilevers Chief Executive Officer. I
am delighted to be a part of the team and to have
the opportunity of leading this great company.
 
 Paul Polman  Chief Executive Officer
 
    
    The rationalisation of our manufacturing base continued
across all regions.
During the last year we closed or sold a further 14
sites, bringing the total to 26 over the last two
years. We are now on course to exceed our target 
set in 2007  of closing or streamlining 50 to 60
sites by 2010. All these projects are being handled
with great sensitivity to the workforce. Together they
are helping to provide Unilever with a modern, cost
competitive supply chain, capable of meeting the
demands of competing in the 21st century. To
further aid speed and efficiency, we have brought all
our logistical and supply chain operations in Europe
together in one regional structure based in
Switzerland. And we are currently embarked on a
similar move in Asia by centralising our supply chain
management for the region in Singapore.
    
    The brand portfolio was further strengthened and sharpened.
This included the sale of the North American laundry
business. We also divested some smaller, non-strategic
parts of our portfolio, including Boursin cheese,
Lawrys seasonings and the Bertolli olive oil
businesses. These deals were all done at good prices,
achieving significant value for the company. At the
same time, the acquisition in 2008 of the leading
Russian ice cream maker, Inmarko, filled an important
gap in a critical market for us. And we are in the
process of obtaining a vital entry into the
fast-growing salon sector of the hair care market with
our planned acquisition of the TIGI hair product
business. And we are alive to similar value-creating
opportunities that may present themselves during the
year.




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
    
    The One Unilever programme  under which multiple
business units are integrated into a single operating
structure  became a reality across most of the
Groups key markets, bringing greater speed and
simplicity to all our operations.
  
 
   Unilever Annual Report on Form 20-F 2008 7




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() Adding Vitality to Life
 continued
 
  
    
    We are driving brand innovation, the lifeblood of our
business, to a new level. The move to a One Unilever
R&D structure under the Groups Chief R&D Officer,
Professor Geneviève Berger, will help us to win in the marketplace by focusing on
 fewer, bigger innovations  and rolling
them out more swiftly around the world.
    
    We are also raising the bar when it comes to our
supply chain. Through the appointment of a Global Supply Chain Officer, we are looking for even better ways to leverage
our scale in global buying and thereby reduce the
overall cost of raw materials.
In 2008 our supply chain savings were almost 100
million greater than the previous year. To drive the
process even further we have appointed our first
Chief Procurement Officer. We expect a continued
strong programme in 2009 and beyond.
    
    We are ensuring that our brands address the needs
of value-conscious consumers everywhere. Our Bertolli
restaurant-quality Italian
dinners for two, for example, offer North American
consumers an excellent alternative to eating out. And
in South East Asia, our Knorr brand has been quick
to introduce low-cost single units of stock and
seasoning.
    
    Finally, we are using the current economic
environment to bring about a step change in our
approach to costs and cash flow. Hence, we are
accelerating our savings programmes and reducing many
discretionary costs. We are also challenging
ourselves to be ever more efficient and striving to
be best-in-class in the management of working
capital.
 Paul Polman  Chief Executive Officer
  Unilever Executive (UEx)
 Responsible for the performance of
the Group, guided by the Chief
Executive Officer
 Left to right:
 Harish Manwani
President, Asia, Africa and
Central & Eastern Europe
 Jim Lawrence
Chief Financial Officer
 Sandy Ogg
Chief HR Officer
 Michael Polk
President, Americas
 Vindi Banga
President, Foods,
Home & Personal Care
 Geneviève Berger
Chief R&D Officer
 Doug Baillie
President, Western Europe
 
   8 Unilever Annual Report on Form 20-F 2008




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Vitality through R&D
 
 Unilever is a global leader in research and development, believing that powerful vitality-based
innovations are crucial to delivering sustainable growth.
  Unique products with proven benefits
 White teeth, White Now
   
 Unilever Annual Report on Form 20-F 2008 9




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() Adding Vitality to Life
  Every Child has the Right
  10 Unilever Annual Report on Form 20-F 2008




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Vitality is at the heart of everything we do. It defines the many ways our brands help people get
more out of life and is core to our growth agenda.
  More personal vitality
    More social value
 Less environmental impact
   (GRAPHIC)
    

Unilever
Annual Report on Form 20-F 2008  11




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(GRAPHIC) Adding Vitality to Life  Vitality through our customers and suppliers
 We work hard to build strong, lasting relationships with our customers and suppliers around the
world  essential in todays competitive marketplace.
  Winning with customers
 Closer collaboration with suppliers
   12 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



(GRAPHIC) 
 Nothing embodies our business as much as our employees. We grow as a company by growing our people
and are committed to their personal vitality.
  Putting safety first
 Feed the world
 Vital statistics
 Continued focus on gender
 Talent powerhouse in Argentina
   *
    
    2008 data is preliminary. It will be
independently assured and reported in
our online Sustainable Development
Report 2008 at www.unilever.com/sustainability
 Unilever Annual Report on
Form 20-F 2008 13




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Social impacts and Vitality  Making a difference in society
  Improving
nutrition and hygiene lies at the heart of our
vitality agenda.
 Nutrition  helping make the healthy choice
 Spreading the word
 
    www.unilever.com/hellmanns
   14 Unilever Annual Report on Form 20-F 2008




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Hygiene  changing habits, helping save lives
 
   Unilever Annual Report on Form 20-F 2008 15




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() Environment and Vitality  Working towards sustainability
  Unilever depends on the natural environment for
supplies of raw materials and water. Sustainability is
a business issue.
   Sourcing sustainably
    Addressing climate change
 2 2
 2
 Conserving water
 3 3
  
 *
    
    Measured by tonne of production. 2008 data is
preliminary. It will be independently assured and
reported in our online Sustainable Development
Report 2008 at www.unilever.com/sustainability
   16 Unilever Annual Report on Form 20-F 2008




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Reducing packaging and waste
 Lighter, stronger, greener
   Unilever Annual Report on Form 20-F 2008 17




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() Shareholder information
 
  Chairman
 Michael Treschow1,2
 Vice-Chairman
 The Lord Simon of Highbury CBE3,4,5
 Executive Directors
 Paul Polman
Chief Executive Officer
 James Lawrence
Chief Financial Officer
 Non-Executive Directors
 The Rt Hon The Lord Brittan
of Spennithorne QC, DL6
 Professor Wim Dik7
   18 Unilever Annual Report on Form 20-F 2008




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() 
 Left to right:
Michael Treschow
The Lord Simon of Highbury
Paul Polman
James Lawrence
The Rt Hon The Lord Brittan of Spennithorne
Professor Wim Dik
Charles Golden
Byron Grote
Narayana Murthy
Hixonia Nyasulu
Kees Storm
Jeroen van der Veer
  Charles Golden7
 Byron Grote7
 Narayana Murthy8
 Hixonia Nyasulu8
 Kees Storm9
 Jeroen van der Veer1,2
 
   1
    
    Member Nomination Committee2
    
    Member Remuneration Committee2
    
    Chairman Nomination Committee4
    
    Chairman Remuneration Committee5
    
    Senior Independent Director6
    
    Chairman Corporate Responsibility and Reputation Committee7
    
    Member Audit Committee8
    
    Member Corporate Responsibility and Reputation Committee9
    
    Chairman Audit Committee
 Unilever Annual Report on Form 20-F 2008 19




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Report of the Directors
 About Unilever
 
  Our business and our strategy
    Key indicators  performance and portfolio
  2008
    
    
    2007
    
    
    2006Underlying sales growth (%)
    
    
    7.4
    
    
    
    5.5
    
    
    
    3.8Operating margin (%)
    
    
    17.7
    
    
    
    13.1
    
    
    
    13.6Ungeared free cash flow ( billion)
    
    
    3.2
    
    
    
    3.8
    
    
    
    4.2Return on invested capital (%)
    
    
    15.7
    
    
    
    12.7
    
    
    
    14.6Total shareholder return (ranking)
    
    
    9
    
    
    
    8
    
    
    
    13
  million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Turnover
    
    
    40 523
    
    
    
    40 187
    
    
    
    39 642Net profit
    
    
    5 285
    
    
    
    4 136
    
    
    
    5 015Cash flow from operating activities
    
    
    5 326
    
    
    
    5 188
    
    
    
    5 574
   2008
    
    
    2007
    
    2006Share of turnover in D&E markets (%)
    
    
    47
    
    
    
    44
    
    
    
    42Share of turnover in top 25 brands (%)
    
    
    73
    
    
    
    73
    
    
    
    73
   20 Unilever Annual Report on Form 20-F 2008




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Report of the Directors
 About Unilever continued
 
  Key
indicators  people and sustainability
    2
 2008
    
    
    2007
    
    
    2006Total recordable accident frequency rate
per 100 000 hours
    
    
    0.21
    
    
    
    0.26
    
    
    
    0.33CO2 from energy per tonne of
production (kg)
    
    
    146.77
    
    
    
    149.18
    
    
    
    164.59Water per tonne of production (m3)
    
    
    2.96
    
    
    
    3.05
    
    
    
    3.29Total waste per tonne of production (kg)
    
    
    7.89
    
    
    
    7.56
    
    
    
    7.46
 www.unilever.com/sustainability
 www.unilever.com/investorrelations/annual_reports
 www.unilever.com/ourcompany/investorrelations/annual_reports
 Organisation
   Unilever Annual Report on Form 20-F
2008 21




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Report of the Directors
 About Unilever continued
 
  Operating environment
 Competition
   
    
    creating and nurturing attractive brands that are trusted and preferred by consumers and which
seek to address consumer needs and aspirations better than other brands;
    
    developing and rolling
out new and better products and concepts across our regions and product categories, supported by
innovative communication campaigns; and
    
    optimising and improving the productivity and efficiency
of our cost and asset base whilst ensuring a consistent high quality of our products.
 Distribution
  Exports
  Seasonality
  Raw and packaging materials
  Related party transactions
   Resources
 Our brands
   22 Unilever Annual Report on Form 20-F 2008




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Report of the Directors
 About Unilever continued
 
  Savoury, dressings and spreads
 Ice cream and beverages 
  personal care
 home care
  Our employees
 Year end in thousands
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Western Europe
    
    
    30
    
    
    
    34
    
    
    
    36
    
    
    
    41
    
    
    
    44The Americas
    
    
    42
    
    
    
    43
    
    
    
    45
    
    
    
    47
    
    
    
    47Asia Africa CEE
    
    
    102
    
    
    
    97
    
    
    
    98
    
    
    
    118
    
    
    
    132Total
    
    
    174
    
    
    
    174
    
    
    
    179
    
    
    
    206
    
    
    
    223
  Diversity
   Unilever Annual Report on Form 20-F 2008 23




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Report of the Directors
 About Unilever continued
 
  Information Technology
    
    
    strategic alliances and partnerships with global suppliers;
    
    improving IT infrastructure and service levels, whilst reducing costs;
    
    building consistent IT capabilities, processes and databases; and
    
    strategic outsourcing in selected key areas
 Intellectual property
  Property, plant and equipment
  Laws and regulation
   Legal proceedings
   24 Unilever Annual Report on Form 20-F 2008




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Report of the Directors
 Outlook and risks
 
  Outlook
 Risk Factors
  The economic slowdown has adversely impacted consumer markets and resulted in a reduction in
consumer spending. If we are unable to remain competitive in these changing markets, our profits,
profit margins and revenues may be adversely affected.
   Unilever Annual Report on Form 20-F 2008 25




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##### Table of Contents



continued
  Risk Factors
 Increasing competitive pressures and consolidation
of customers could adversely impact our rate of
sales growth and profit margins.
  Our global operations expose us to changes in
liquidity, interest rates, currency exchange rates,
pensions, and taxation, which may have a negative
impact on our business.
 We derive significant revenues from Developing and
Emerging (D&E) markets. These markets are typically
more volatile than developed markets, and any adverse
social, political or economic developments in these
markets could adversely affect our business.
 Input costs are subject to fluctuation, and we are
reliant on suppliers and global supply chains as a
means of producing and supplying our products.
   26 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



continued
  Risk Factors
 Our industry is subject to focus on social and
environmental issues, including sustainable
development, product safety and renewable sources. If
we fail to comply with applicable standards or meet
expectations with respect to these issues, our
reputation could be damaged and our businesses
adversely affected.
 Our recent restructuring initiative involves
significant changes to our organisation. If we are
unable to successfully implement these changes in a
timely manner, we may not realise the expected
benefits from the restructuring.
 Our success depends on attracting and retaining
talented people within our business. Any shortfall
in recruitment or retention could adversely affect
our ability to deliver our strategy and compete in
our markets.
 We are subject to other risks which may adversely
affect our business.
   Unilever Annual Report on Form 20-F 2008 27




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##### Table of Contents



continued
  Risk Management, Internal Controls and
Disclosure Controls and Procedures
    Business Risk Assessment (BRA)
 The Code of Business Principles (CoBP)  www.unilever.com/investorrelations/corp_governance
 Policy compliance
 Operational Controls Assessment (OCA)
 Annual Positive Assurance
 Internal audit
   Boards assessment of compliance with the
Risk Management frameworks
   28 Unilever Annual Report on Form 20-F 2008




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Basis of reporting
  1 9
  
    
    Western Europe
 
    
    The Americas
 
    
    Asia, Africa and Central & Eastern Europe (AACEE)
 Group results and earnings per share
    million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Continuing operations:Turnover
    
    
    40 523
    
    
    
    40 187
    
    
    
    39 642Operating profit
    
    
    7 167
    
    
    
    5 245
    
    
    
    5 408Net profit
    
    
    5 285
    
    
    
    4 056
    
    
    
    3 685Net profit from discontinued
operations
    
    
    
    
    
    
    80
    
    
    
    1 330Net profit  total
    
    
    5 285
    
    
    
    4 136
    
    
    
    5 015
 
    
    
    
    
    
    2008
    
    
    2007
    
    
    2006EPS  continuing operations
    
    
    1.79
    
    
    
    1.32
    
    
    
    1.19EPS  total
    
    
    1.79
    
    
    
    1.35
    
    
    
    1.65
 Group results for 2008 compared with 2007
   Unilever Annual Report on Form 20-F 2008 29




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##### Table of Contents



continued
   
     
  Group results for 2007 compared with 2006  
      
 
 Western Europe
 2008 compared with 2007
  million
    
    
     million2008
    
    
    2007Turnover
    
    
    12 853
    
    
    
    13 327Operating profit
    
    
    2 521
    
    
    
    1 563Operating margin
    
    
    19.6%
    
    
    
    11.7%Restructuring, business disposals and impairment
charges included in operating margin
    
    
    2.8%
    
    
    
    (4.4)%%Underlying sales growth at constant rates
    
    
    1.3Effect of acquisitions
    
    
    (0.0
    )Effect of disposals
    
    
    (2.1
    )Effect of exchange rates
    
    
    (2.8
    )Turnover growth at current rates
    
    
    (3.6
    )%Operating profit 2008 vs 2007Change at current rates
    
    
    61.3Change at constant rates
    
    
    63.6
   30 Unilever Annual Report on Form 20-F
2008




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continued
  Western Europe
    2007 compared with 2006
  million
    
    
     million2007
    
    
    2006Turnover
    
    
    13 327
    
    
    
    13 322Operating profit
    
    
    1 563
    
    
    
    1 787Operating margin
    
    
    11.7%
    
    
    
    13.4%Restructuring, business disposals, impairment charges
and one-time gain (2006) on UK pension
plans included in operating margin
    
    
    (4.4)%
    
    
    
    (1.4)%%Underlying sales growth at constant rates
    
    
    1.8Effect of acquisitions
    
    
    0.0Effect of disposals
    
    
    (1.7
    )Effect of exchange rates
    
    
    (0.1
    )Turnover growth at current rates
    
    
    0.0%Operating profit 2007 vs 2006Change at current rates
    
    
    (12.5
    )Change at constant rates
    
    
    (12.2
    )
 
 The Americas
 2008 compared with 2007
  million
    
    
     million2008
    
    
    2007Turnover
    
    
    13 199
    
    
    
    13 442Operating profit
    
    
    2 945
    
    
    
    1 971Operating margin
    
    
    22.3%
    
    
    
    14.7%Restructuring, business disposals, and impairment
charges included in operating margin
    
    
    6.9%
    
    
    
    (0.7)%%Underlying sales growth at constant rates
    
    
    6.5Effect of acquisitions
    
    
    0.1Effect of disposals
    
    
    (2.9
    )Effect of exchange rates
    
    
    (5.1
    )Turnover growth at current rates
    
    
    (1.8
    )%Operating profit 2008 vs 2007Change at current rates
    
    
    49.4Change at constant rates
    
    
    58.5
   Unilever Annual Report on Form 20-F
2008 31




---



##### Table of Contents



continued
  The Americas
     2007 compared with 2006
  million
    
    
     million2007
    
    
    2006Turnover
    
    
    13 442
    
    
    
    13 779Operating profit
    
    
    1 971
    
    
    
    2 178Operating margin
    
    
    14.7%
    
    
    
    15.8%Restructuring, business disposals, impairment charges
and one-time gain (2006) on US healthcare
plans included in operating margin
    
    
    (0.7)%
    
    
    
    0.0%%Underlying sales growth at constant rates
    
    
    4.1Effect of acquisitions
    
    
    0.1Effect of disposals
    
    
    (0.6
    )Effect of exchange rates
    
    
    (5.8
    )Turnover growth at current rates
    
    
    (2.4
    )%Operating profit 2007 vs 2006Change at current rates
    
    
    (9.5
    )Change at constant rates
    
    
    (3.4
    )
 
   32 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



continued
  Asia, Africa and Central & Eastern Europe (AACEE)
 2008 compared with 2007
  million
    
    
     million2008
    
    
    2007Turnover
    
    
    14 471
    
    
    
    13 418Operating profit
    
    
    1 701
    
    
    
    1 711Operating margin
    
    
    11.8%
    
    
    
    12.8%Restructuring, business disposals and impairment
charges included in operating margin
    
    
    0.1%
    
    
    
    0.9%%Underlying sales growth at constant rates
    
    
    14.2Effect of acquisitions
    
    
    1.1Effect of disposals
    
    
    (0.4
    )Effect of exchange rates
    
    
    (6.2
    )Turnover growth at current rates
    
    
    7.8%Operating profit 2008 vs 2007Change at current rates
    
    
    (0.6
    )Change at constant rates
    
    
    8.3
 2007 compared with 2006
  million
    
    
     million2007
    
    
    2006Turnover
    
    
    13 418
    
    
    
    12 541Operating profit
    
    
    1 711
    
    
    
    1 443Operating margin
    
    
    12.8%
    
    
    
    11.5%Restructuring, business disposals and impairment
charges included in operating margin
    
    
    0.9%
    
    
    
    (0.4)%%Underlying sales growth at constant rates
    
    
    11.0Effect of acquisitions
    
    
    0.1Effect of disposals
    
    
    (0.4
    )Effect of exchange rates
    
    
    (3.3
    )Turnover growth at current rates
    
    
    7.0%Operating profit 2007 vs 2006Change at current rates
    
    
    18.5Change at constant rates
    
    
    25.0
   Unilever Annual Report on Form 20-F
2008 33




---



##### Table of Contents



continued
  Asia, Africa and Central & Eastern Europe (AACEE)
    
 
   34 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Finance and liquidity
 
    
    appropriate access to equity and debt capital;
    
    sufficient flexibility for acquisitions that we
fund out of current cash flows;
    
    A+/A1 long-term credit rating;
    
    A1/P1 short-term credit rating;
    
    sufficient resilience against economic and financial turmoil; and
    
    optimal weighted average cost of capital, given the constraints above.
 Treasury
   Unilever Annual Report on Form 20-F
2008 35




---



##### Table of Contents



continued
  Balance sheet
  million
    
    
     million2008
    
    
    2007Goodwill and intangible assets
    
    
    16 091
    
    
    
    16 755Other non-current assets
    
    
    8 876
    
    
    
    10 619Current assets
    
    
    11 175
    
    
    
    9 928Current liabilities
    
    
    (13 800
    )
    
    
    (13 559
    )Total assets less current liabilities
    
    
    22 342
    
    
    
    23 743Non-current liabilities
    
    
    11 970
    
    
    
    10 924Shareholders equity
    
    
    9 948
    
    
    
    12 387Minority interest
    
    
    424
    
    
    
    432Total capital employed
    
    
    22 342
    
    
    
    23 743
 Contractual obligations at 31 December 2008
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionDue
    
    
    
    
    
    
    
    
    
    
    Due inwithin
    
    
    Due in
    
    
    Due in
    
    
    overTotal
    
    
    one year
    
    
    1-3 years
    
    
    3-5 years
    
    
    5 yearsLong-term debt
    
    
    7 289
    
    
    
    1 110
    
    
    
    2 080
    
    
    
    1 763
    
    
    
    2 336Operating lease
obligations
    
    
    1 491
    
    
    
    344
    
    
    
    444
    
    
    
    286
    
    
    
    417Purchase obligations(a)
    
    
    344
    
    
    
    263
    
    
    
    69
    
    
    
    12
    
    
    
    -Finance leases
    
    
    381
    
    
    
    37
    
    
    
    62
    
    
    
    40
    
    
    
    242Other long-term
commitments
    
    
    1 796
    
    
    
    459
    
    
    
    724
    
    
    
    534
    
    
    
    79
 
 (a)
    
    Raw and packaging materials and finished goods. Off-balance sheet arrangements
 Cash flow
  million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Net cash flow from
operating activities
    
    
    3 871
    
    
    
    3 876
    
    
    
    4 511Net cash flow from/(used in)
investing activities
    
    
    1 415
    
    
    
    (623
    )
    
    
    1 155Net cash flow from/(used in)
financing activities
    
    
    (3 130
    )
    
    
    (3 009
    )
    
    
    (6 572
    )Net increase/(decrease) in cash 
and cash
equivalents
    
    
    2 156
    
    
    
    244
    
    
    
    (906
    )
   36 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



continued
  Dividends and market capitalisation
 Dividends per share
 Per 0.16
    
    
    
    
    
    
    Per 31/9pNV ordinary
    
    
    
    
    
    
    PLC ordinaryshare
    
    
    
    
    
    
    share
    
    
    
    
    
    pence
    
    
    pence2008
    
    
    2007
    
    
    2008
    
    
    2007Interim
    
    
    0.26
    
    
    
    0.25
    
    
    
    20.55
    
    
    
    17.00Final
    
    
    
    
    
    
    0.50
    
    
    
    
    
    
    
    34.11Proposed final
    
    
    0.51
    
    
    
    
    
    
    
    40.19
    
    
    
    
   Pensions investment strategy
  Acquisitions and disposals
 2008
 2007
   Unilever Annual Report on Form 20-F
2008 37




---



##### Table of Contents



continued
  2006
   Significant events after the balance sheet date
  Critical accounting policies
 Goodwill and intangible assets
   Financial instruments
   38 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Pensions and similar obligations
   %
    
    
    %
    
    
    %
    
    
    %Nether-
    
    
    UnitedUK
    
    
    lands
    
    
    States
    
    
    GermanyDiscount rate
    
    
    6.5
    
    
    
    5.9
    
    
    
    5.6
    
    
    
    5.9Inflation
    
    
    2.8
    
    
    
    2.0
    
    
    
    2.1
    
    
    
    2.0Expected long-term rate of return:Equities
    
    
    7.8
    
    
    
    7.2
    
    
    
    6.0
    
    
    
    7.2Bonds
    
    
    5.0
    
    
    
    5.0
    
    
    
    5.1
    
    
    
    4.2Property
    
    
    6.0
    
    
    
    5.7
    
    
    
    4.5
    
    
    
    5.7Others
    
    
    5.6
    
    
    
    5.6
    
    
    
    1.2
    
    
    
    4.4
 Provisions
 Taxation
   Unilever Annual Report on Form 20-F 2008 39




---



##### Table of Contents



continued
  Non-GAAP measures
  
    
    Ungeared free cash flow;
    
    Return on invested capital;
    
    Underlying sales growth; and
    
    Net debt.
  Measures of long-term value creation
  
    
    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.
 
    
    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.
  Caution
 
    
    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.
   40 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Ungeared free cash flow (UFCF)
     million
    
    
     million
    
    
     millionUngeared free cash flow
    
    2008
    
    
    2007
    
    
    2006Net profit
    
    
    5 285
    
    
    
    4 136
    
    
    
    5 015Taxation
    
    
    1 844
    
    
    
    1 137
    
    
    
    1 332Share of net profit of joint ventures/associates and other income from non-current investments
    
    
    (219
    )
    
    
    (191
    )
    
    
    (144
    )Net finance costs
    
    
    257
    
    
    
    252
    
    
    
    725Depreciation, amortisation and impairment
    
    
    1 003
    
    
    
    943
    
    
    
    982Changes in working capital
    
    
    (161
    )
    
    
    27
    
    
    
    87Pensions charges in operating profit less payments
    
    
    (502
    )
    
    
    (910
    )
    
    
    (1 038
    )Movements in provisions less payments
    
    
    (62
    )
    
    
    145
    
    
    
    107Elimination of profits on disposals
    
    
    (2 259
    )
    
    
    (459
    )
    
    
    (1 620
    )Non-cash charge for share-based compensation
    
    
    125
    
    
    
    118
    
    
    
    120Other adjustments
    
    
    15
    
    
    
    (10
    )
    
    
    8Cash flow from operating activities
    
    
    5 326
    
    
    
    5 188
    
    
    
    5 574Less charge for share-based compensation
    
    
    (125
    )
    
    
    (118
    )
    
    
    (120
    )Add back pension charges less payments in operating profit
    
    
    502
    
    
    
    910
    
    
    
    1 038Less net capital expenditure
    
    
    (1 099
    )
    
    
    (983
    )
    
    
    (934
    )Less tax charge adjusted to reflect an ungeared position
    
    
    (1 368
    )
    
    
    (1 228
    )
    
    
    (1 336
    )Taxation on profit
    
    
    (1 844
    )
    
    
    (1 137
    )
    
    
    (1 332
    )Taxation on profit on material business disposals
    
    
    581
    
    
    
    
    
    
    
    159Tax relief on net finance costs
    
    
    (105
    )
    
    
    (91
    )
    
    
    (163
    )Ungeared free cash flow
    
    
    3 236
    
    
    
    3 769
    
    
    
    4 222
 Unilever Annual Report on Form 20-F 2008 41




---



##### Table of Contents



continued
  Return on invested capital (ROIC)
     million
    
    
     million
    
    
     millionReturn on invested capital
    
    2008
    
    
    2007
    
    
    2006Net profit
    
    
    5 285
    
    
    
    4 136
    
    
    
    5 015Add back net interest expense net of tax
    
    
    294
    
    
    
    314
    
    
    
    365Add back impairment charges net of tax(a)
    
    
    38
    
    
    
    1
    
    
    
    15Profit after tax, before interest and impairment of goodwill and indefinite-lived intangible assets
    
    
    5 617
    
    
    
    4 451
    
    
    
    5 395Year-end positions for invested capital:Property, plant and equipment and other non-current investments
    
    
    7 024
    
    
    
    7 276
    
    
    
    7 142Software and finite-lived intangible assets
    
    
    540
    
    
    
    590
    
    
    
    608Inventories
    
    
    3 889
    
    
    
    3 894
    
    
    
    3 796Trade and other receivables
    
    
    5 002
    
    
    
    4 965
    
    
    
    4 667Trade payables and other creditors due within one year
    
    
    (8 449
    )
    
    
    (8 545
    )
    
    
    (8 513
    )Elements of invested capital included in assets and liabilities held for sale
    
    
    45
    
    
    
    150
    
    
    
    15Goodwill and indefinite-lived intangible assets at gross book value
    
    
    20 892
    
    
    
    20 029
    
    
    
    20 705Total
    
    
    28 943
    
    
    
    28 359
    
    
    
    28 420Add back cumulative goodwill written off directly to reserves
    
    
    6 343
    
    
    
    6 427
    
    
    
    6 427Year-end invested capital
    
    
    35 286
    
    
    
    34 786
    
    
    
    34 847Average invested capital for the year
    
    
    35 832
    
    
    
    35 122
    
    
    
    36 850Return on average invested capital
    
    
    15.7
    %
    
    
    12.7
    %
    
    
    14.6
    %
 
 (a)
    
    Excluding write-downs of goodwill and indefinite-lived intangible assets taken in
connection with business disposals. 42 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Underlying sales growth (USG)
  2008
    
    
    2007vs 2007
    
    
    vs 2006Underlying sales growth (%)
    
    
    7.4
    
    
    
    5.5Effect of acquisitions (%)
    
    
    0.4
    
    
    
    0.1Effect of disposals (%)
    
    
    (1.8
    )
    
    
    (0.9
    )Effect of exchange rates (%)
    
    
    (4.8
    )
    
    
    (3.1
    )Turnover growth (%)
    
    
    0.8
    
    
    
    1.4
 Net debt
   million
    
    
     million2008
    
    
    2007Total financial liabilities
    
    
    (11 205
    )
    
    
    (9 649
    )Financial liabilities due within one year
    
    
    (4 842
    )
    
    
    (4 166
    )Financial liabilities due after one year
    
    
    (6 363
    )
    
    
    (5 483
    )Cash and cash equivalents as per balance sheet
    
    
    2 561
    
    
    
    1 098Cash and cash equivalents as per
cash flow statement
    
    
    2 360
    
    
    
    901Add bank overdrafts deducted therein
    
    
    201
    
    
    
    197Financial assets
    
    
    632
    
    
    
    216Net debt
    
    
    (8 012
    )
    
    
    (8 335
    )
 Total Shareholder Return (TSR)
 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
 (PERFORMANCE GRAPH)
  Restructuring costs, business disposals and other
one-off items
   Unilever Annual Report on Form 20-F 2008 43




---



##### Table of Contents



Introduction
  The Unilever Group
 Unilever policies
  Developments in corporate governance
 www.unilever.com/investorrelations/corp_governance
 The Boards
  www.unilever.com/investorrelations/corp_governance
   44 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Appointment of Directors
    Board meetings
 
    
    approval of corporate strategy;
    
    approval of the corporate Annual Plan;
    
    oversight of the performance of the
business;
    
    review of risks and controls;
    
    authorisation of major transactions;
    
    preparation of the Annual Report and
Accounts;
    
    declaration of dividends;
    
    agreement of quarterly results announcements;
 
    
    convening of shareholders meetings;
    
    nominations for Board appointments;
    
    approval of Board remuneration policy; and
    
    review of the functioning of the Boards and their Committees.
  Name
    
    AttendanceMichael Treschow
    
    8 of 8Patrick Cescau* (to 31 December 2008)
    
    8 of 8Paul Polman* (from 29 October 2008)
    
    2 of 2James Lawrence* (from 15 May 2008)
    
    3 of 3Kees van der Graaf* (to 15 May 2008)
    
    3 of 3Ralph Kugler* (to 15 May 2008)
    
    3 of 3Geneviève Berger (to 30 June 2008)
    
    3 of 3Leon Brittan
    
    8 of 8Wim Dik
    
    8 of 8Charles Golden
    
    8 of 8Byron Grote
    
    8 of 8Narayana Murthy
    
    7 of 8Hixonia Nyasulu
    
    8 of 8David Simon
    
    8 of 8Kees Storm
    
    8 of 8Jeroen van der Veer
    
    6 of 8
 
  Board induction and training
 Board evaluation
   Unilever Annual Report on Form 20-F 2008 45




---



##### Table of Contents



continued
  Board support
   Board changes
 Chairman and Chief Executive Officer
   Executive Directors
  www.unilever.com/investorrelations/corp_governance
   46 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Outside Appointments
    Role and Responsibility
  
    
    supervision of and advice to the Chief Executive Officer;
    
    developing strategy with the Chief
Executive Officer;
    
    scrutiny of performance of the business and Chief Executive Officer;
    
    oversight of risks and controls;
    
    reporting of performance;
    
    remuneration of and succession
planning for Executive Directors; and
    
    governance and compliance.
 www.unilever.com/investorrelations/corp_governance
 Meetings
 Senior Independent Director
  Tenure
  Remuneration
 www.unilever.com/investorrelations/corp_governance
 Other appointments
  Independence
   Unilever Annual Report on Form 20-F 2008 47




---



##### Table of Contents



continued
  Committees
 Board Committees
 www.unilever.com/investorrelations/corp_governance
 Audit Committee
 Name
    
    AttendanceKees Storm (Chairman)
    
    6 of 6Wim Dik
    
    6 of 6Charles Golden
    
    6 of 6Byron Grote
    
    6 of 6
   Nomination Committee
    Name
    
    AttendanceDavid Simon (Chairman)
    
    6 of 6Michael
Treschow (from 6 February 2008)
    
    5 of 5Jeroen van der Veer
    
    4 of 6
   48 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Remuneration Committee
    Name
    
    AttendanceDavid Simon (Chairman)
    
    5 of 5Michael Treschow (from 6 February 2008)
    
    4 of 4Jeroen van der Veer
    
    3 of 5
   Corporate Responsibility and Reputation Committee
   Name
    
    AttendanceLeon Brittan (Chairman)
    
    4 of 4Geneviève Berger (to 30 June 2008)
    
    2 of 2Ralph Kugler (to 15 May 2008)
    
    2 of 2Narayana Murthy
    
    2 of 4Hixonia Nyasulu
    
    4 of 4
 Routine business committees
  Disclosure Committee
  Director matters
 Conflicts of interest
   Various formal matters
   Unilever Annual Report on Form 20-F 2008 49




---



##### Table of Contents



continued
  Indemnification
  Shareholder matters
 Relations with shareholders and other investors
  www.unilever.com/investorrelations
    General Meetings of shareholders
 Electronic communication
    www.unilever.com/shareholderservices
 Voting rights
  1 9
   50 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Shareholder proposed resolutions
   Required majorities
 www.unilever.com/investorrelations/corp_governance
 Right to hold shares
  Foundation Agreements
 Equalisation Agreement
     
    
    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.
   Unilever Annual Report on Form 20-F 2008 51




---



##### Table of Contents



continued
  
    
    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.
 www.unilever.com/investorrelations/corp_governance
 The Deed of Mutual Covenants
   52 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  The Agreement for Mutual Guarantees of Borrowing
  Share capital matters
 Combined earnings per share
   Share capital
  
    
    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%) of cumulative preference shares
(financing preference shares).
  Total number of votes
    
    
    % of issued capital1 714 727 700 ordinary shares
    
    
    1 714 727 700
    (a)
    
    
    70.532 400 special shares
    
    
    6 428 550
    
    
    
    0.26750 000 4% cumulative
preference shares
    
    
    200 906 250
    
    
    
    8.26161 060 6% cumulative
preference shares
    
    
    431 409 276
    
    
    
    17.7529 000 7% cumulative
preference shares
    
    
    77 678 312
    
    
    
    3.20
 
 (a)
    
    Of which 141 560 629 shares were held in
treasury and 35 663 020 shares were held in
connection with share-based payments as at 31
December 2008. These shares are not voted on.
 
    
    £40 760 420 split into 1 310 156 361 ordinary
 shares of
31/9p each;
and
 
    
    £100 000 of deferred stock.
  Total number of votes
    
    
    % of issued capital1 310 156 361 ordinary shares
    
    
    1 310 156 361
    (a)
    
    
    99.76£100 000 deferred stock
    
    
    3 214 285
    
    
    
    0.24
 
 (a)
    
    Of which 26 696 994 shares were held by PLC in
treasury and 31 887 851 shares were held by NV group
companies or by share trusts as at 31 December 2008.
These shares are not voted on.
   Unilever Annual Report on Form 20-F
2008 53




---



##### Table of Contents



continued
  Margarine Union (1930) Limited: Conversion Rights
  1 9
 Foundation Unilever NV Trust Office
      Voting by holders of depositary receipts
 Voting by the Foundation Unilever NV Trust Office
      Foundation Unilever NV Trust Offices shareholding
  
    
    NV ordinary shares of 0.16: 1 247 992 862 (72.78%); and
 
    
    NV 7% cumulative preference shares of
428.57: 9 776 (33.71%);
 www.administratiekantoor-unilever.nl
 Requirements and compliance  general
   54 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  www.unilever.com/Investorrelations/corp_governance
 Requirements  European Union
  
    
    there are no requirements to obtain the approval of
NV or PLC, or of other holders of securities in NV or
PLC, for a transfer of such securities;
    
    there are no arrangements by which, with NV or
PLCs cooperation, financial rights carried by
securities are held by a person other than the
holder of such securities;
    
    NV and PLC are not aware of any agreements
between holders of securities which may result in
restrictions on the transfer of such securities
or on voting rights;
    
    neither NV or PLC are parties to any significant
agreement which include provisions that take effect,
alter or terminate such agreement upon a change of
control following a takeover bid;
    
    NV and PLC do not have any agreements with any
Director or employee that would provide
compensation for loss of office or employment
resulting from a takeover except that most of
Unilevers share schemes contain provisions which
operate in the event of a takeover of Unilever,
which provisions may for instance cause options
or awards granted to employees under such schemes
to vest after a takeover or be exchanged into new
awards for shares in another entity; and
    
    the Trustees of the PLC employee share trusts may
vote or abstain in any way they think fit and in doing
so may take into account both financial and
non-financial interests of the beneficiaries of the
employee share trusts or their dependents.
Historically the Trustees tend not to exercise this right.
 Requirements  the Netherlands
 General
 www.commissiecorporategovernance.nl
  Board and Committee structures
  Risk management and control
    
    
    the risk management and control systems provide reasonable assurance that the financial
statements do not contain any material inaccuracies;
    
    the risk management and control systems have worked properly in 2008;
    
    there are no indications that the risk management and control systems will not work properly in
2009;
   Unilever Annual Report on Form 20-F 2008 55




---



##### Table of Contents



continued
  
    
    no material failings in the risk management
and control systems were discovered in the year under
review or the current year up to the date of signing
these accounts;
   Retention period of shares
  Severance pay
  Regulations for transactions in securities
in other companies
  Conflicts of interest
  Financing preference shares
  Anti-takeover constructions and control over the company
 Provision of information
  Meetings of analysts and presentations to investors
  Requirements  the United Kingdom
 www.frc.org.uk
  
    
    The Remuneration Committee currently has two
independent Non-Executive Directors on its
membership. Michael Treschow was appointed a
member of the Remuneration Committee in February
2008. The Committee and the Board are working to
seek a new Non-Executive Director appointment for
that Committee and the membership of the
Committee will be reviewed again in light of David
Simons forthcoming retirement.
 
    
    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 ensures
that a majority of Directors attend both meetings
and that at least one member of each Committee
attends each AGM.
 Risk management and control
   56 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Requirements  the United States
    
    
    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 SEC rules relating to
standards of professional conduct for US attorneys.
  www.unilever.com/investorrelations/corp_governance
 www.unilever.com/investorrelations/corp_governance
 Risk management and control
   Unilever Annual Report on Form 20-F 2008 57




---



##### Table of Contents



Biographical details
  Chairman
  Vice-Chairman
  Executive Directors
 
 Non-Executive Directors
 
 Unilever Executive (UEx)*
 Paul Polman
   Doug Baillie
   Vindi Banga
   Professor Geneviève Berger
 James Lawrence
   Harish Manwani
   Sandy Ogg
   Michael Polk
   58 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Terms of Reference
  www.unilever.com/investorrelations/corp_governance
 Process for the appointment of Directors
 Activities of the Committee during the year
          David Simon  Michael Treschow  Jeroen van der Veer
   Unilever Annual Report on Form 20-F 2008 59




---



##### Table of Contents




    
    aligned with shareholders
interests;
    
    robustly linked to performance;
    
    aligned with strategic priorities;
    
    market competitive; and
    
    easy to understand and communicate.
 David Simon  Michael Treschow  Jeroen van der Veer
   Definition of auditable part of the Report of the Remuneration Committee
  60 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Role and responsibilities
  Structure and role
  Advice and assistance
    Remuneration policy
 Unilever reward policy table 2008
 Element
    
    Payment vehicle
    
    Value determination
    
    Plan objectives/Key driversFIXEDBase salary
    
    Cash
    
    Market median
    
    Attraction and retention of high performing
executivesPension
    
    Cash
    
    All-employee pension arrangement
in home country
Bonus not pensionable
    
    Attraction and retention of high performing
executivesVARIABLE
    
    
    
    Indicative levels at face value as % of base payAnnual incentive
    
    Cash (75%)
Shares (25%)
    
    Executive Directors: target 87%
(range 0%  150%) 
Chief Financial Officer: target 93%
(range 0%  160%) 
Chief Executive Officer: target 113.3%
(range of 0%  200%)
    
    Delivery of trading contribution (Unilevers
primary internal measure of economic value
added  see page 62) and top-line growth targets 
Individual responsibility for key Unilever business
targetsGlobal Share 
Incentive Plan
    
    Shares
    
    Grant level in 2008 for:
Chief Financial Officer 340%
Chief Executive Officer around 170%
    
    Total shareholder return at upper half of peer group
(see page 62)Vesting level: 0%  200% of grant, at end of
3 year performance period subject to the
satisfaction of the performance conditions.
    
    Ungeared Free Cash Flow as the basic driver of
Unilevers shareholder returns 
Top-line revenue growth as essential to Unilevers
long-term value creationShare Matching 
Plan
    
    Shares
    
    25% of annual incentive is paid in shares,
these shares are matched one for one
    
    Alignment with shareholders interests
 Unilever Annual Report on Form 20-F 2008 61




---



##### Table of Contents



continued
  Base salary
  Annual incentive
    
    
    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 and leadership 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.
 Long-term incentives
  
    
    Global Share Incentive Plan; and
 
    
    Share Matching Plan (linked to annual incentive).
       Avon
    
    KraftBeiersdorf
    
    LionCadbury Schweppes
    
    LOréalClorox
    
    NestléCoca-Cola
    
    OrklaColgate
    
    PepsiCoDanone
    
    Procter & GambleHeinz
    
    Reckitt BenckiserKao
    
    Sara LeeKimberly-Clark
    
    Shiseido
   62 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Share
Matching Plan
 Executive Directors pensions
  Other benefits and allowances
  Serving as non-executive on the Board of another company
  Future developments
   Unilever Annual Report on Form 20-F 2008 63




---



##### Table of Contents



continued
  Remuneration information for 2008
  Aggregate remuneration for Executive Directors
  2008
    
    
    2007 000
    
    
     000Annual emolumentsBase salary
    
    
    2 682
    
    
    
    3 491Allowances and other payments
    
    
    1 154
    
    
    
    221Benefits
    
    
    62
    
    
    
    82Performance related payments (annual incentive)
    
    
    4 156
    
    
    
    4 865Sub-total of annual emoluments
    
    
    8 054
    
    
    
    8 659Other income arising from vesting/exercise of long-term incentives(a)Gains on exercise of share options
    
    
    140
    
    
    
    50Vesting of matching shares
    
    
    86
    
    
    
    230Vesting of awards under other Long-Term Incentive Plans
    
    
    2 704
    
    
    
    Total of annual emoluments and other income arising from long-term incentives
    
    
    10 984
    
    
    
    8 939
 
 (a)
    
    Includes the value of shares that vested under Long-term Incentive Plans and had been granted
in earlier years and the gain realised in 2008 of share options granted in earlier years. Comments on base salary 2008
  Comments on base salary 2009
  Comments on annual incentive 2008
  64 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



continued
  Remuneration for individual Executive Directors
  Other income arising fromlong-term incentives andAnnual Emoluments 2008
    
    
    
    
    
    
    exercise of options in 2008Allowances
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Grand
    
    
    GrandBase
    
    
    and other
    
    
    Value of
    
    
    
    
    
    
    Total
    
    
    Total
    
    
    Option
    
    
    Share
    
    
    Other
    
    
    total
    
    
    totalsalary
    
    
    payments
    (a)
    
    benefits
    (b)
    
    Bonus
    (c)
    
    2008
    
    
    2007
    
    
    gains
    
    
    match
    
    
    LTIP
    
    
    2008
    
    
    2007Name and Base Country
    
     000
    
    
     000
    
    
     000
    
    
     000
    
    
     000
    
    
     000
    
    
     000
    
    
     000
    
    
     000
    
    
     000
    
    
     000Patrick Cescau (UK)(d)
    
    
    1 296
    
    
    
    149
    
    
    
    50
    
    
    
    2 073
    
    
    
    3 568
    
    
    
    3 948
    
    
    
    139
    
    
    
    35
    
    
    
    980
    
    
    
    4 722
    
    
    
    4 061Jim Lawrence (UK)(e)
    
    
    450
    
    
    
    14
    
    
    
    7
    
    
    
    903
    
    
    
    1 374
    
    
    
    n/a
    
    
    
    
    
    
    
    
    
    
    
    456
    
    
    
    1 830
    
    
    
    n/aPaul Polman (UK)(f)
    
    
    292
    
    
    
    970
    
    
    
    
    
    
    
    438
    
    
    
    1 700
    
    
    
    n/a
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 700
    
    
    
    n/aKees van der Graaf (NL)(g)
    
    
    333
    
    
    
    13
    
    
    
    1
    
    
    
    385
    
    
    
    732
    
    
    
    1 822
    
    
    
    1
    
    
    
    31
    
    
    
    634
    
    
    
    1 398
    
    
    
    1 882Ralph Kugler (UK)(h)
    
    
    311
    
    
    
    8
    
    
    
    4
    
    
    
    357
    
    
    
    680
    
    
    
    1 961
    
    
    
    
    
    
    
    20
    
    
    
    634
    
    
    
    1 334
    
    
    
    2 014
 
 (a)
    
    Includes allowance in lieu of company car; blind trust fees compensation; tax advice
compensation; special one-off award; compensation for loss of net income because part of the salary
was paid in the Netherlands; entertaining allowance 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.(b)
    
    Includes benefits for company car; housing (for business use) instead of hotel; medical
insurance and private use of chauffeur-driven cars.
Included are benefits that are taxable in the country of residence. In addition, Unilever provides
support to Executive Directors in relation to spouses travel expenses when travelling together on
company business. This amount is capped at 5% of base salary and for 2008 totalled 210 076
(including related taxes payable).(c)
    
    Bonus for the year 2008. Includes the value of both the cash element and the element paid in
shares of NV and PLC. In addition to the element of the bonus paid in shares, each Executive
Director is awarded an equivalent number of matching shares on a conditional basis.(d)
    
    Chief Executive Officer. Base salary set in sterling was £1 021 125 per annum.(e)
    
    Period from May 2008 when he was appointed as a Director. Base salary set in US dollars was $1
133 000 per annum. Bonus figures relates to the full calendar year.(f)
    
    Period from October 2008. Base salary set in sterling was £920 000 per annum.(g)
    
    Period to May 2008. The total emoluments for the period June-December 2008 amounted to 623
000. Base salary set in euros was 798 000 per annum.(h)
    
    Period to May 2008. The total emoluments for the period June-December 2008 amounted to 599
000. Base salary set in sterling was £587 500 per annum.  Comments on long-term incentive arrangements 2008
 
    
    Global Share Incentive Plan
Awards have been made under this plan since 2007. Vesting will start as from 2010 (three years
after the first award). The performance period for the annual award that was made in 2008 is 1
January 2008 to 31 December 2010.
    
    Share Matching Plan
In 2008 the matching shares originally granted in 2005 on a conditional basis vested, subject to
fulfilment of the retention conditions.
  
    
    Global Performance Share Plan
Awards under this plan were made in 2005 and 2006. Vesting of the award made in 2005 was in May
2008 (performance period 1 January 2005  31 December 2007) and the 2006 award will vest in 2009
(performance period 1 January 2006  31 December 2008). Vesting of the 2005 award in 2008 was
based on average annual underlying sales growth (50% of the award) and cumulative ungeared free
cash flow (50% of the award) over the three-year period to 31 December 2007. The performance
ranges, set in 2005, were 2-4% per annum average underlying sales growth (USG) and for ungeared
free cash flow (UFCF) 12.2 billion  13.2 billion. The targets were set before the disposals of
the European frozen foods businesses and Unilever Cosmetics International. The targets have been
adjusted by the impacts of these disposals. The vesting level for threshold performance was 25% of
the relevant portion of the award and 200% for performance at or above the top of the range. The
strong improvements in Unilevers performance over this period led to 121% of awards vesting.
 Unilever Annual Report on Form 20-F 2008 65




---



##### Table of Contents



continued
  
    
    TSR Plan
In 2008 the conditional shares awarded in 2005 vested for 50%. 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 2007. For this period, Unilever ranked 8th
in its peer group and therefore 50% vesting occurred for this award in March 2008.
    
    Executive Share Options
The grants of executive share options made in 2005 became exercisable as from 2008. The 2005 award
was a premium grant and therefore at vesting no further conditions applied.
 Executive Directors Global Share Incentive Plan
   Balance of
    
    
    
    
    
    
    
    
    
    
    Balance ofconditional shares at
    
    
    
    
    
    
    Conditional grant 2008
    
    
    conditional shares at1 January 2008
    
    
    (Performance period 1 January 2008 to 31 December 2010)
    (a)
    
    31 December 2008Share type
    
    No. of shares
    
    
    No. of shares
    (a)
    
    Price at award
    
    
    No. of sharesPatrick Cescau
    
    NV
    
    
    40 505
    
    
    
    44 597
    
    
    
    21.30
    
    
    
    85 102PLC
    
    
    40 505
    
    
    
    44 597
    
    
    
    1 672.00
    p
    
    
    85 102Jim Lawrence
    
    NV
    
    
    80 462
    (b)
    
    
    26 485
    (b)
    
    
    21.73
    
    
    
    106 947PLC
    
    
    80 462
    (b)
    
    
    26 485
    (b)
    
    
    1 743.00
    p
    
    
    106 947Paul Polman(c)
    
    NV
    
    
    
    
    
    
    58 752
    
    
    
    18.93
    
    
    
    58 752PLC
    
    
    
    
    
    
    58 752
    
    
    
    1 439.00
    p
    
    
    58 752Kees van der Graaf
    
    NV
    
    
    20 550
    
    
    
    
    
    
    
    
    
    
    
    20 550
    (d)PLC
    
    
    20 550
    
    
    
    
    
    
    
    
    
    
    
    20 550
    (d)Ralph Kugler
    
    NV
    
    
    22 145
    
    
    
    
    
    
    
    
    
    
    
    22 145
    (d)PLC
    
    
    22 145
    
    
    
    
    
    
    
    
    
    
    
    22 145
    (d)
 
 (a)
    
    Each award of performance shares is conditional and vests subject to certain conditions three
years after the date of the award.(b)
    
    Joined Unilever in September 2007 as Chief Financial Officer. Was appointed a Director in May
2008. Opening balance is as at the date of appointment as a Director. Following approval by
shareholders of an extension to his package, in November 2008 he was awarded an additional 26 485
of each of Unilever NV and PLC shares at 21.73 and 1 743p respectively.(c)
    
    Joined Unilever in October 2008 and was appointed a Director at the EGMs at the end of October
2008. Awards were made under the GSIP plan in November 2008.(d)
    
    Stepped down at the AGMs in May 2008. Balances are at that date.  Balance of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance ofshares at
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    shares at1 January
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31 December2008
    
    
    Grant in 2008
    
    
    Vesting in 2008
    
    
    2008Share type
    
    
    No. of shares
    
    
    No. of shares
    
    
    Price at award
    
    
    No. of shares
    
    
    Price at vesting
    
    
    No. of sharesJim Lawrence
    
    NV
    
    
    35 565
    (a)
    
    
    n/a
    
    
    
    
    
    
    
    11 855
    
    
    
    18.96
    (a)
    
    
    23 710PLC
    
    
    35 565
    (a)
    
    
    n/a
    
    
    
    
    
    
    
    11 855
    
    
    
    1 498.00
    p(a)
    
    
    23 710Paul Polman
    
    NV
    
    
    0
    
    
    
    67 653
    
    
    
    18.93
    (b)
    
    
    n/a
    
    
    
    
    
    
    
    67 653PLC
    
    
    0
    
    
    
    67 653
    
    
    
    1 439.00
    p(b)
    
    
    n/a
    
    
    
    
    
    
    
    67 653
 
 (a)
    
    Awarded in 2007 on joining Unilever. The shares vest 1/3,
1/3, 1/3after respectively 1, 2 and 3
years of service.(b)
    
    Award agreed on joining Unilever. Award was made 6 November 2008 and will vest

1/3,
1/3,
1/3on respectively the first, second and third anniversary of the award. 66 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



continued
  Executive Directors Share Matching Plan
  Balance of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance ofconditional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    conditionalshares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    shares atat 1 January
    
    
    Conditional shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31 December2008
    
    
    awarded in 2008
    (a)
    
    Shares vested in 2008
    (b)
    
    2008Market
    
    
    OriginalShare
    
    No. of
    
    
    No. of
    
    
    Price at
    
    
    No. of
    
    
    price
    
    
    price
    
    
    No. oftype
    
    shares
    
    
    shares
    
    
    award
    
    
    shares
    
    
    at vesting
    
    
    at award
    
    
    sharesPatrick Cescau
    
    NV
    
    
    13 992
    
    
    
    12 025
    
    
    
    21.30
    
    
    
    (813
    )
    
    
    21.30
    
    
    
    16.90
    
    
    
    25 204PLC
    
    
    14 150
    
    
    
    12 025
    
    
    
    1 672.00
    p
    
    
    (852
    )
    
    
    1 672.00
    p
    
    
    1 122.22
    p
    
    
    25 323Jim Lawrence(b)
    
    NV
    
    
    
    
    
    
    1 830
    
    
    
    21.30
    
    
    
    n/a
    
    
    
    
    
    
    
    
    
    
    
    1 830PLC
    
    
    
    
    
    
    1 830
    
    
    
    1 672.00
    p
    
    
    n/a
    
    
    
    
    
    
    
    
    
    
    
    1 830Kees van der Graaf
    
    NV
    
    
    2 925
    
    
    
    5 770
    
    
    
    21.30
    
    
    
    (714
    )
    
    
    21.30
    
    
    
    16.90
    
    
    
    7 981
    (c)PLC
    
    
    3 002
    
    
    
    5 770
    
    
    
    1 672.00
    p
    
    
    (748
    )
    
    
    1 672.00
    p
    
    
    1 122.22
    p
    
    
    8 024
    (c)Ralph Kugler
    
    NV
    
    
    5 042
    
    
    
    5 292
    
    
    
    21.30
    
    
    
    (465
    )
    
    
    21.30
    
    
    
    16.90
    
    
    
    9 869
    (c)PLC
    
    
    5 100
    
    
    
    5 292
    
    
    
    1 672.00
    p
    
    
    (483
    )
    
    
    1 672.00
    p
    
    
    1 122.22
    p
    
    
    9 909
    (c)
 
 (a)
    
    Each award of matching shares is conditional and vests three years after the date of the award
subject to certain conditions. The 2008 award was made at grant date 20 March 2008.(b)
    
    The conditional shares awarded on 21 March 2005 (relating to the 2004 performance period)
vested on 20 March 2008.(c)
    
    Balance is at May 2008 when they stepped down as Executive Directors. Executive Directors Global Performance Share Plan
   Balance of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance ofconditional
    
    
    Conditional shares vested in 2008
    (b)
    
    conditionalshares at
    
    
    Additional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    shares at1 January
    
    
    award
    
    
    Total number
    
    
    
    
    
    
    
    
    
    
    31 December2008
    
    
    on vesting
    
    
    that vested
    
    
    
    
    
    
    
    
    
    
    2008Share price
    
    
    Share priceShare type
    
    No. of shares
    (a)
    
    No. of shares
    
    
    No. of shares
    
    
    at vesting
    
    
    at award
    
    
    No. of shares
    (a)Patrick Cescau
    
    NV
    
    
    18 000
    
    
    
    1 890
    
    
    
    (10 890
    )
    
    
    20.99
    
    
    
    17.66
    
    
    
    9 000PLC
    
    
    18 000
    
    
    
    1 890
    
    
    
    (10 890
    )
    
    
    1 712.00
    p
    
    
    1 196.67
    p
    
    
    9 000Kees van der Graaf
    
    NV
    
    
    12 000
    
    
    
    1 260
    
    
    
    (7 260
    )
    
    
    20.99
    
    
    
    17.66
    
    
    
    6 000
    (c)PLC
    
    
    12 150
    
    
    
    1 276
    
    
    
    (7 351
    )
    
    
    1 712.00
    p
    
    
    1 196.67
    p
    
    
    6 075
    (c)Ralph Kugler
    
    NV
    
    
    12 000
    
    
    
    1 260
    
    
    
    (7 260
    )
    
    
    20.99
    
    
    
    17.66
    
    
    
    6 000
    (c)PLC
    
    
    12 150
    
    
    
    1 276
    
    
    
    (7 351
    )
    
    
    1 712.00
    p
    
    
    1 196.67
    p
    
    
    6 075
    (c)
 
 (a)
    
    Each award of performance shares is conditional and vests subject to performance conditions
three years after the date of the award. Shares may vest between 0 and 200% of the orginally
granted numbers.(b)
    
    In 2008 the conditional award, originally awarded in 2005, vested for
121%.(c)
    
    Total as at the end of May 2008. Both stepped down as Executive Directors at the 2008 AGMs. Unilever Annual Report on Form 20-F
2008 67




---



##### Table of Contents



continued
  Executive Directors conditional share awards under the TSR Long-Term Incentive Plan
   Balance of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance ofconditional
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    conditionalshares at
    
    
    
    
    
    
    Conditional awards lapsed
    
    
    shares at1 January
    
    
    
    
    
    
    24 March 2008 (Performance period 2005 to 2007
    )(a)
    
    31 December2008
    
    
    
    
    
    
    Lapsed
    (a)
    
    
    
    
    
    Original price
    
    
    2008Share type
    
    
    No. of shares
    
    
    Vested
    (a)
    
    No. of shares
    
    
    Price at vesting
    
    
    at award
    
    
    No. of sharesPatrick Cescau
    
    NV
    
    
    
    44 613
    
    
    
    (11 835
    )
    
    
    (11 835
    )
    
    
    21.30
    
    
    
    16.90
    
    
    
    20 943PLC
    
    
    
    46 058
    
    
    
    (12 366
    )
    
    
    (12 366
    )
    
    
    1 672.00
    p
    
    
    1 122.00
    p
    
    
    21 326Kees van der Graaf
    
    NV
    
    
    
    27 882
    
    
    
    (7 397
    )
    
    
    (7 396
    )
    
    
    21.30
    
    
    
    16.90
    
    
    
    13 089
    (b)PLC
    
    
    
    28 788
    
    
    
    (7 730
    )
    
    
    (7 729
    )
    
    
    1 672.00
    p
    
    
    1 122.00
    p
    
    
    13 329
    (b)Ralph Kugler
    
    NV
    
    
    
    27 882
    
    
    
    (7 397
    )
    
    
    (7 396
    )
    
    
    21.30
    
    
    
    16.90
    
    
    
    13 089
    (b)PLC
    
    
    
    28 788
    
    
    
    (7 730
    )
    
    
    (7 729
    )
    
    
    1 672.00
    p
    
    
    1 122.00
    p
    
    
    13 329
    (b)
 
 (a)
    
    The conditional awards made in 2005 vested in 2008 for 50%, as Unilever was ranked number 8 in
the peer group based on performance over the three year period ending 31 December 2007.(b)
    
    Balance is at May 2008 when they stepped down as Executive Directors. Unilevers position relative to the TSR reference group
 
  68 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



continued
  Executive Directors share options
 1 9
  Options outstanding
    
    
    Options outstandingbelow market price
    
    
    above market priceat 31 December 2008
    
    
    at 31 December 2008NumberBalance of
    
    
    of options
    
    
    Balance of
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    Weightedoptions at
    
    
    exercised/
    
    
    options at
    
    
    
    
    
    
    average
    
    
    
    
    
    
    average
    
    
    First
    
    
    FinalShare
    
    
    1 January
    
    
    lapsed
    
    
    31 December
    
    
    Number
    
    
    exercise
    
    
    Number
    
    
    exercise
    
    
    exercisable
    
    
    expirytype
    
    
    2008
    
    
    in 2008
    
    
    2008
    
    
    of options
    
    
    price
    
    
    of options
    
    
    price
    
    
    date
    
    
    datePatrick CescauExecutive Plan
    
    NV
    
    
    242 166
    
    
    
    
    
    
    
    242 166
    
    
    
    27 000
    
    
    
    14.72
    
    
    
    215 166
    
    
    
    20.10
    
    
    
    24/03/02
    
    
    
    31/12/10Executive Plan
    
    PLC
    
    
    245 967
    
    
    
    (33 750
    )(a)
    
    
    212 217
    
    
    
    212 217
    
    
    
    1 166.00
    p
    
    
    
    
    
    
    
    
    
    
    07/03/03
    
    
    
    31/12/10NL All-Employee Plan
    
    NV
    
    
    600
    
    
    
    (150
    )(b)
    
    
    450
    
    
    
    
    
    
    
    
    
    
    
    450
    
    
    
    17.70
    
    
    
    13/05/04
    
    
    
    17/05/11UK ShareSave Plan
    
    PLC
    
    
    1 374
    
    
    
    
    
    
    
    1 374
    
    
    
    1 374
    
    
    
    1 171.00
    p
    
    
    
    
    
    
    
    
    
    
    01/01/09
    
    
    
    30/06/09Kees van der Graaf(c)Executive Plan
    
    NV
    
    
    135 450
    
    
    
    
    
    
    
    135 450
    
    
    
    83 250
    
    
    
    18.30
    
    
    
    52 200
    
    
    
    21.94
    
    
    
    24/03/02
    
    
    
    28/02/11Executive Plan
    
    PLC
    
    
    135 450
    
    
    
    
    
    
    
    135 450
    
    
    
    135 450
    
    
    
    1 080.00
    p
    
    
    
    
    
    
    
    
    
    
    24/03/02
    
    
    
    28/02/11NL All-Employee Plan
    
    NV
    
    
    600
    
    
    
    (150
    )(b)
    
    
    450
    
    
    
    450
    
    
    
    17.70
    
    
    
    
    
    
    
    
    
    
    
    13/05/04
    
    
    
    17/05/11UK ShareSave Plan
    
    PLC
    
    
    1 374
    
    
    
    
    
    
    
    1 374
    
    
    
    1 374
    
    
    
    1 202.00
    p
    
    
    
    
    
    
    
    
    
    
    01/06/08
    
    
    
    30/11/08Ralph Kugler(c)Executive Plan
    
    NV
    
    
    176 625
    
    
    
    
    
    
    
    176 625
    
    
    
    120 600
    
    
    
    18.19
    
    
    
    56 025
    
    
    
    22.04
    
    
    
    24/03/02
    
    
    
    28/02/11Executive Plan
    
    PLC
    
    
    176 625
    
    
    
    
    
    
    
    176 625
    
    
    
    176 625
    
    
    
    1 163.00
    p
    
    
    
    
    
    
    
    
    
    
    24/03/02
    
    
    
    28/02/11NL All-Employee Plan
    
    NV
    
    
    300
    
    
    
    
    
    
    
    300
    
    
    
    300
    
    
    
    17.59
    
    
    
    
    
    
    
    
    
    
    
    18/05/05
    
    
    
    17/05/11UK ShareSave Plan
    
    PLC
    
    
    1 374
    
    
    
    
    
    
    
    1 374
    
    
    
    1 374
    
    
    
    1 202.00
    p
    
    
    
    
    
    
    
    
    
    
    01/06/08
    
    
    
    30/11/08
 
 (a)
    
    Options exercised 30 December 2008 at a market value of 1 557p. The options had originally been
granted on 24 March 1999 at a price of 1 233p.(b)
    
    Options exercised 30 May 2008 at a market value of 21.01. The options had originally been
granted on 2 June 2003 at a price of 17.(c)
    
    Closing balances shown for Kees van der Graaf and
Ralph Kugler are as at date of stepping down as a Director in May 2008. The closing market prices
of ordinary shares at that date were 21.16 and 1 686p.   Unilever Annual Report on Form 20-F
2008 69




---



##### Table of Contents



continued
  Comments on pensions
    Executive Directors pensions (a)
  MovementMovement in
    
    
    
    
    
    
    Transfer
    
    
    in transfer
    
    
    
    
    
    
    Transferaccrued
    
    
    
    
    
    
    value of
    
    
    value during
    
    
    Individual
    
    
    value ofAccrued
    
    
    pension
    
    
    Accrued
    
    
    accrued
    
    
    2008 (less
    
    
    contributions
    
    
    accruedpension at
    
    
    during
    
    
    pension at
    
    
    pension at
    
    
    individual
    
    
    made during
    
    
    pension atAge at
    
    
    31/12/07
    
    
    2008
    (b)
    
    31/12/08
    (c)
    
    31/12/07
    (d)
    
    contributions)
    (e)
    
    2008
    (f)
    
    31/12/08
    (d)Name and base country
    
    31/12/08
    
    
    000 pa
    
    
    000 pa
    
    
    000 pa
    
    
    000
    
    
    000
    
    
    000
    
    
    000Patrick Cescau (UK)(g)
    
    
    60
    
    
    
    1 029
    
    
    
    59
    
    
    
    1 088
    
    
    
    23 937
    
    
    
    (131
    )
    
    
    4
    
    
    
    23 810Kees van der Graaf (NL)(h)
    
    
    58
    
    
    
    639
    
    
    
    (16
    )
    
    
    623
    
    
    
    7 951
    
    
    
    948
    
    
    
    4
    
    
    
    8 903Ralph Kugler (UK)(h)
    
    
    52
    
    
    
    418
    
    
    
    (111
    )
    
    
    307
    
    
    
    7 800
    
    
    
    428
    
    
    
    
    
    
    
    8 228
 
 (a)
    
    Figures have been translated into euros where necessary using the following exchange rates: 31
December 2007 1.00 = £0.7342, $1.471 31 December 2008 1.00 = £0.9773, $1,471; average for the
year ended 31 December 2008 1.00 = £0.7880, $1.468.(b)
    
    Includes the effect of inflation on the accrued pension at 31 December 2007 and the impact on
the accrued pension of changes to the payment dates of the pensions during the year. In the case of
Patrick Cescau no pension accrued after age 60 and in the case of Kees van der Graaf and Ralph
Kugler the pensions were recalculated for early retirement. See note (c) for details.(c)
    
    Based on the Executive Directors pension benefits that have now crystallised and become
payable from 31 December 2008 in the case of Patrick Cescau and 1 March 2009 in the cases of Kees
van der Graaf and Ralph Kugler (rather than the normal retirement date). It includes all pensions
provided from Unilever pension plans.(d)
    
    The Netherlands-based Executive Directors arrangement is calculated on the basis used by the
Unilever Netherlands pension plan
(Progress), as prescribed by the Netherlands Ministry of Social Affairs and Employment. This
basis changed for accounting periods ending after 1 January 2008. Calculated on the old basis
the transfer value at 31 December 2007 was 8 975 000. The UK-based Executive Directors
arrangement is calculated on the market-related basis used by the Unilever United Kingdom
Pension Fund (UUKPF). This basis has changed during 2008. Calculated on the old basis, the
transfer values at 31 December 2007 for Patrick Cescau and Ralph Kugler were 20 617 000 and 6
502 000. The transfer values at 31 December 2008 were calculated using market conditions at
December 2008 for Patrick Cescau and May 2008 for Ralph Kugler.(e)
    
    The movement in transfer values during 2008 includes market changes, together with additional
service, the Executive Directors being one year closer to retirement and exchange rate movements
(for pensions denominated in currencies other than euros). For Patrick Cescau also includes the
impact of his salary increase effective from 1 January 2008. For
Kees van der Graaf and Ralph Kugler includes the enhancement for early retirement of 542 000 and
2 515 000 respectively.(f)
    
    Consistent with employees in the current Unilever Netherlands pension plan, the rate of
individual contributions paid by Kees van der Graaf is 0.5% of pensionable salary between 12 209
and 58 993 and 1% on the balance. Consistent with employees in the Unilever United Kingdom pension
plan, Ralph Kuglers contributions are paid through salary sacrifice at 7% of pensionable salary
(5% of pensionable salary from January to March) above the UK Lower Earnings Limit, and as such no
individual contributions are shown above. Patrick Cescaus contributions on the part of his salary
paid in the Netherlands are paid on the basis of the old Unilever Netherlands pension plan, at 1%
above 58 993. His contribution on the part of his salary paid in the UK are consistent with
employees in the Unilever United Kingdom pension plan, paid through salary sacrifice at 7% of
pensionable salary (5% of pensionable salary from January to March) above the UK
Lower Earnings Limit.(g)
    
    Stepped down from the Boards and retired on 31 December 2008. Attained age 60 on 27 September
2008, accrued no additional pension for service thereafter.(h)
    
    Stepped down from the Boards at the AGMs in May 2008 with pension payable from 1 March 2009.
The values shown in the table are at 31 May 2008, or the period ending on that date, as
appropriate, and include the enhancement for early retirement. Life cover benefits continued to be
payable as if still in employment up to 1 March 2009. 70 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



continued
   DutchCorporateListing rules of the Financial Services Authority
    
    
    Governance Code(a)
    
    
    (b)
    
    
    (c)000
    
    
    000
    
    
    000Patrick Cescau (UK)
    
    
    8
    
    
    
    170
    
    
    
    414Kees van der Graaf (NL)(d)
    
    
    3
    
    
    
    25
    
    
    
    785Ralph Kugler (UK)(d)
    
    
    (2
    )
    
    
    (31
    )
    
    
    2 976
 
 (a)
    
    Increase in accrued pension during 2008 (excluding the effect of inflation on the accrued
pension at 31 December 2007). Excludes the impact of early retirement.(b)
    
    Transfer value at 31 December 2008 of the increase in accrued pension during 2008 (excluding
the effect of inflation
on the accrued pension at 31 December 2007 and less individual contributions).(c)
    
    Pension service costs charged to operating profit.(d)
    
    Values shown are as at 31 May 2008, or the period ending at that date, as appropriate.  Executive Directors interests  share capital
  Shares held at
    
    
    Shares held atShare type
    (a)
    
    1 January 2008
    (b)
    
    31 December 2008
    (b)Patrick Cescau(c)
    
    NV
    
    
    93 099
    
    
    
    119 403PLC
    
    
    65 798
    
    
    
    96 434Jim Lawrence(d)(e)
    
    NV
    
    
    297 338
    
    
    
    309 193PLC
    
    
    241 830
    
    
    
    323 435Paul Polman
    
    NV
    
    
    
    
    
    
    PLC
    
    
    
    
    
    
    
 
 (a)
    
    NV shares are ordinary 0.16 shares and PLC shares are
ordinary 31/9p shares.(b)
    
    Numbers are excluding unvested matching shares.(c)
    
    Balances include under NV 38 715 NV New York shares and under PLC 10
220 PLC ADRs.(d)
    
    Opening balance is at date of appointment as a Director in May 2008.(e)
    
    Balances held at date of appointment as a Director include under PLC 240 000 PLC ADRs and
balance held at 31 December 2008 include under PLC 309 750 ADRs    Unilever Annual Report on Form 20-F
2008 71




---



##### Table of Contents



continued
  Non-Executive Directors
    Non-Executive Directors remuneration
  Total fees paid
    
    
    Total fees paidin 2008
    (a)
    
    in 2007
    (a)Non-Executive Directors
    
    000
    
    
    000Michael Treschow(b)
    
    
    663
    
    
    
    469
    (c)Geneviève Berger
    
    
    42
    (d)
    
    
    60
    (c)Leon Brittan
    
    
    101
    
    
    
    97Wim Dik
    
    
    93
    
    
    
    92Charles Golden
    
    
    118
    
    
    
    134Byron Grote
    
    
    91
    
    
    
    90Narayana Murthy
    
    
    98
    
    
    
    97
    (c)Hixonia Nyasulu
    
    
    118
    
    
    
    82
    (c)David Simon
    
    
    129
    
    
    
    131Kees Storm
    
    
    112
    
    
    
    113Jeroen van der Veer
    
    
    87
    
    
    
    90
 
 (a)
    
    Covers fees and allowances received from both NV in euros (50%) and PLC in Sterling (50%).
Includes fees for intercontinental travel if applicable.(b)
    
    Chairman NV and PLC since the 2007 AGMs.(c)
    
    Appointed in 2007. The 2007 fee therefore only represents the period June  December 2007.(d)
    
    Stepped down as Non-Executive Director on becoming a member of the Unilever Executive Team
as from 1 July 2008. The fees paid in 2008 reflect the period January  May 2008.   72 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



continued
  Non-Executive Directors interests  share capital
  Shares held at
    
    
    Shares held atShare type
    (a)
    
    1 January 2008
    (a)
    
    31 December 2008
    (a)Michael Treschow
    
    NV
    
    
    15 000
    
    
    
    15 000PLC
    
    
    15 000
    
    
    
    15 000Byron Grote
    
    NV NY
    
    
    3 000
    
    
    
    3 000PLC ADRs
    
    
    1 800
    
    
    
    1 800David Simon
    
    NV
    
    
    PLC
    
    
    1 536
    
    
    
    1 569Jeroen van der Veer
    
    NV
    
    
    16 800
    
    
    
    16 800PLC
    
    
    
 
 (a)
    
    NV shares are ordinary 0.16 shares and PLC shares are ordinary
31/9p shares.  Additional statutory and other disclosures
 Unilevers share performance relative to broad-based equity indices
  Five-Year Historical TSR Performance
 
 
    Unilever Annual Report on Form 20-F
2008 73




---



##### Table of Contents



Financial statements
  Audit of the Annual Accounts
  Risk management and internal control arrangements
  
    
    review of level of disclosure in quarterly financial results announcements;
    
    review of accounting principles and judgements with respect to financial statements, including
the annual impairment review of goodwill and intangibles;
    
    review of the analysis supporting the going concern judgement of the 2008 Annual Report and
Accounts;
    
    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 including
procedures for handling complaints and concerns relating to accounting, internal control and
auditing matters;
    
    quarterly review of progress of the application of the requirements under Section 404 of the US
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 the impact of financial volatility on pensions;
    
    annual review of anti-fraud arrangements;
    
    a review of tax planning policy;
    
    review of treasury policies, including debt issuance and hedging;
    
    review of the annual financial plan; and
    
    review of the revised dividend policy.
 External auditors
 
    
    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.
   Internal audit function
  Audit Committee terms of reference
 www.unilever.com/investorrelations/corp_governance
 Board Assessment of the Audit Committee
  Kees Storm  Wim Dik  Charles Golden  Byron Grote
   74 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Terms of reference
    www.unilever.com/investorrelations/corp_governance
 Meetings
  Business risk
 Code of Business Principles
  Business Partner Code
   www.unilever.com/investorrelations/corp_governance
 Labour standards
   Unilever Annual Report on Form 20-F 2008 75




---



##### Table of Contents



continued
  Sustainable sourcing of palm oil
    www.unilever.com/sustainability
 Leon Brittan
 Narayana Murthy
Hixonia Nyasulu
    76 Unilever Annual Report on Form 20-F 2008




---



##### 



Statement of Directors responsibilities
    
    
    78Managements report on internal control over financial reporting
    
    
    79Auditors report
    
    
    80Consolidated income statement
    
    
    81Consolidated statement of recognised income and expense
    
    
    81Consolidated balance sheet
    
    
    82Consolidated cash flow statement
    
    
    83Notes to the consolidated accounts
    
    
    841   Accounting information and policies
    
    
    842   Segment information
    
    
    893   Gross profit and operating costs
    
    
    934   Staff costs
    
    
    945   Net finance costs
    
    
    946   Taxation
    
    
    957   Combined earnings per share
    
    
    968   Dividends on ordinary capital
    
    
    979   Goodwill and intangible assets
    
    
    9710 Property, plant and equipment
    
    
    9911 Other non-current assets
    
    
    10112 Deferred taxation
    
    
    10213 Inventories
    
    
    10214 Trade and other receivables
    
    
    10315 Cash and cash equivalents and other financial assets
    
    
    10316 Financial liabilities
    
    
    10517 Financial instruments and treasury risk management
    
    
    10818 Trade payables and other liabilities
    
    
    11419 Provisions
    
    
    11420 Pensions and similar obligations
    
    
    11521 Equity
    
    
    12122 Share capital
    
    
    12223 Other reserves
    
    
    12324 Retained profit
    
    
    12425 Commitments and contingent liabilities
    
    
    12526 Acquisitions and disposals
    
    
    12827 Assets held for sale and discontinued operations
    
    
    13028 Reconciliation of net profit to cash flow from
operating activities
    
    
    13229 Share-based compensation plans
    
    
    13330 Related party transactions
    
    
    13531 Key management personnel
    
    
    13532 Remuneration of auditors
    
    
    13633 Events after the balance sheet date
    
    
    13634 Summarised presentation of the NV and PLC
parts of the Group
    
    
    13735 Guarantor statements
    
    
    138
 Selected financial data
    
    
    144Principal group companies and non-current investments
    
    
    147
    Unilever Annual Report on Form 20-F 2008 77




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##### Table of Contents



Annual accounts
     www.unilever.com/investorrelations
 Directors responsibility statement
  
    
    the financial statements which have been prepared in accordance with International Financial
Reporting Standards as adopted by the EU and as issued by the International Accounting Standards
Board (in the case of the consolidated accounts) and United Kingdom accounting standards (in the
case of the PLC parent company accounts) and United Kingdom accounting standards and Part 9 of Book
2 of the Dutch Civil Code (in the case of the NV parent company accounts), give a true and fair
view of the assets, liabilities, financial position and profit or loss of the Group and the NV and
PLC entities taken as a whole; and
    
    the Report of the Directors includes a fair review of the development and performance of the
business and the position of the Group and the NV and the PLC entities taken as a whole, together
with a description of the principal risks and uncertainties they face.
  Going concern
    Internal and disclosure controls and procedures
   78 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents




    
    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 2008, and has concluded that such internal control over financial reporting is
effective; and
    
    PricewaterhouseCoopers LLP and PricewaterhouseCoopers Accountants N.V., who have audited the
consolidated financial statements of the Group for the year ended 31 December 2008, have also
audited the effectiveness of internal control over financial reporting as at 31 December 2008
and have issued an attestation report on internal control over financial reporting. For the
Auditors report please refer to page 80.
 Unilever Annual Report on Form 20-F 2008 79




---



##### Table of Contents



United States
  Report of the independent registered public accounting firms to the shareholders of Unilever
N.V. and Unilever PLC
    
 PricewaterhouseCoopers LLPLondon, United KingdomAs auditors of Unilever PLCDrs R A J Swaak RA
    
    3 March 2009
 80 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Unilever Group
  
 Consolidated income statement
   million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Continuing operationsTurnover2
    
    
    40 523
    
    
    
    40 187
    
    
    
    39 642Operating profit2
    
    
    7 167
    
    
    
    5 245
    
    
    
    5 408After (charging)/crediting:Restructuring3
    
    
    (868
    )
    
    
    (875
    )
    
    
    (704
    )Business disposals, impairments and other 3
    
    
    2 137
    
    
    
    306
    
    
    
    196Gain on US healthcare and UK pensions 3
    
    
    
    
    
    
    
    
    
    
    266Net finance costs 5
    
    
    (257
    )
    
    
    (252
    )
    
    
    (721
    )Finance income
    
    
    106
    
    
    
    147
    
    
    
    128Finance costs
    
    
    (506
    )
    
    
    (550
    )
    
    
    (590
    )Preference shares provision
    
    
    
    
    
    
    (7
    )
    
    
    (300
    )Pensions and similar obligations
    
    
    143
    
    
    
    158
    
    
    
    41Share of net profit/(loss) of joint ventures 11
    
    
    125
    
    
    
    102
    
    
    
    78Share of net profit/(loss) of associates 11
    
    
    6
    
    
    
    50
    
    
    
    36Other income from non-current investments 11
    
    
    88
    
    
    
    39
    
    
    
    30Profit before taxation
    
    
    7 129
    
    
    
    5 184
    
    
    
    4 831Taxation 6
    
    
    (1 844
    )
    
    
    (1 128
    )
    
    
    (1 146
    )Net profit from continuing operations
    
    
    5 285
    
    
    
    4 056
    
    
    
    3 685Profit for the year from discontinued
operations 27
    
    
    
    
    
    
    80
    
    
    
    1 330Net profit
    
    
    5 285
    
    
    
    4 136
    
    
    
    5 015Attributable to:Minority interests
    
    
    258
    
    
    
    248
    
    
    
    270Shareholders equity
    
    
    5 027
    
    
    
    3 888
    
    
    
    4 745Combined earnings per share7From continuing operationsBasic earnings per share
    
    
    1.79
    
    
    
    1.32
    
    
    
    1.19Diluted earnings per share
    
    
    1.73
    
    
    
    1.28
    
    
    
    1.15From discontinued operationsBasic earnings per share
    
    
    
    
    
    
    0.03
    
    
    
    0.46Diluted earnings per share
    
    
    
    
    
    
    0.03
    
    
    
    0.45From total operationsBasic earnings per share
    
    
    1.79
    
    
    
    1.35
    
    
    
    1.65Diluted earnings per share
    
    
    1.73
    
    
    
    1.31
    
    
    
    1.60
   
 Consolidated statement of recognised income and expense
   million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Fair value gains/(losses) net of tax:On cash flow hedges
    
    
    (118
    )
    
    
    84
    
    
    
    6On available-for-sale financial assets
    
    
    (46
    )
    
    
    2
    
    
    
    15Actuarial gains/(losses) on pension schemes net of tax
    
    
    (2 293
    )
    
    
    542
    
    
    
    853Currency retranslation gains/(losses) net of tax(a)
    
    
    (1 688
    )
    
    
    (413
    )
    
    
    (335
    )Net income/(expense) recognised directly in equity
    
    
    (4 145
    )
    
    
    215
    
    
    
    539Net profit
    
    
    5 285
    
    
    
    4 136
    
    
    
    5 015Total recognised income and expense21
    
    
    1 140
    
    
    
    4 351
    
    
    
    5 554Attributable to:Minority interests
    
    
    205
    
    
    
    237
    
    
    
    242Shareholders equity
    
    
    935
    
    
    
    4 114
    
    
    
    5 312
 
 (a)
    
    Includes fair value gains/(losses) on net investment hedges of (560) million (2007: (692)
million; 2006: (779) million). Unilever Annual Report on Form 20-F
2008 81




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##### Table of Contents



Unilever Group
  
 Consolidated balance sheet
   million
    
    
     million2008
    
    
    2007Goodwill 9
    
    
    11 665
    
    
    
    12 244Intangible assets 9
    
    
    4 426
    
    
    
    4 511Property, plant and equipment 10
    
    
    5 957
    
    
    
    6 284Pension asset for funded schemes in surplus 20
    
    
    425
    
    
    
    2 008Deferred tax assets 12
    
    
    1 068
    
    
    
    1 003Other non-current assets 11
    
    
    1 426
    
    
    
    1 324Total non-current assets
    
    
    24 967
    
    
    
    27 374Inventories 13
    
    
    3 889
    
    
    
    3 894Trade and other current receivables 14
    
    
    3 823
    
    
    
    4 194Current tax assets
    
    
    234
    
    
    
    367Cash and cash equivalents 15
    
    
    2 561
    
    
    
    1 098Other financial assets 15
    
    
    632
    
    
    
    216Non-current assets held for sale 27
    
    
    36
    
    
    
    159Total current assets
    
    
    11 175
    
    
    
    9 928Financial liabilities 16
    
    
    (4 842
    )
    
    
    (4 166
    )Trade payables and other current liabilities 18
    
    
    (7 824
    )
    
    
    (8 017
    )Current tax liabilities
    
    
    (377
    )
    
    
    (395
    )Provisions 19
    
    
    (757
    )
    
    
    (968
    )Liabilities associated with non-current assets held for
sale 27
    
    
    
    
    
    
    (13
    )Total current liabilities
    
    
    (13 800
    )
    
    
    (13 559
    )Net current assets/(liabilities)
    
    
    (2 625
    )
    
    
    (3 631
    )Total assets less current liabilities
    
    
    22 342
    
    
    
    23 743Financial liabilities due after one year 16
    
    
    6 363
    
    
    
    5 483Non-current tax liabilities
    
    
    189
    
    
    
    233Pensions and post-retirement healthcare liabilities:Funded schemes in deficit 20
    
    
    1 820
    
    
    
    827Unfunded schemes 20
    
    
    1 987
    
    
    
    2 270Provisions 19
    
    
    646
    
    
    
    694Deferred tax liabilities 12
    
    
    790
    
    
    
    1 213Other non-current liabilities
    
    
    175
    
    
    
    204Total non-current liabilities
    
    
    11 970
    
    
    
    10 924Share capital 21
    
    
    484
    
    
    
    484Share premium 21
    
    
    121
    
    
    
    153Other reserves 21
    
    
    (6 469
    )
    
    
    (3 412
    )Retained profit 21
    
    
    15 812
    
    
    
    15 162Shareholders equity
    
    
    9 948
    
    
    
    12 387Minority interests21
    
    
    424
    
    
    
    432Total equity
    
    
    10 372
    
    
    
    12 819Total capital employed
    
    
    22 342
    
    
    
    23 743
   The Board of Directors
 82 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Unilever Group
  
 Consolidated cash flow statement
   million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Cash flow from operating activities 28
    
    
    5 326
    
    
    
    5 188
    
    
    
    5 574Income tax paid
    
    
    (1 455
    )
    
    
    (1 312
    )
    
    
    (1 063
    )Net cash flow from operating activities
    
    
    3 871
    
    
    
    3 876
    
    
    
    4 511Interest received
    
    
    105
    
    
    
    146
    
    
    
    125Purchase of intangible assets
    
    
    (147
    )
    
    
    (136
    )
    
    
    (113
    )Purchase of property, plant and equipment
    
    
    (1 142
    )
    
    
    (1 046
    )
    
    
    (1 013
    )Disposal of property, plant and equipment
    
    
    190
    
    
    
    163
    
    
    
    192Sale and leaseback transactions resulting in operating leases
    
    
    
    
    
    
    36
    
    
    
    Acquisition of group companies, joint ventures and associates
    
    
    (211
    )
    
    
    (214
    )
    
    
    (96
    )Disposal of group companies, joint ventures and associates
    
    
    2 476
    
    
    
    164
    
    
    
    1 873Acquisition of other non-current investments
    
    
    (126
    )
    
    
    (50
    )
    
    
    (90
    )Disposal of other non-current investments
    
    
    47
    
    
    
    33
    
    
    
    61Dividends from joint ventures, associates and other non-current investments
    
    
    132
    
    
    
    188
    
    
    
    120(Purchase)/sale of financial assets
    
    
    91
    
    
    
    93
    
    
    
    96Net cash flow from/(used in) investing activities
    
    
    1 415
    
    
    
    (623
    )
    
    
    1 155Dividends paid on ordinary share capital
    
    
    (2 086
    )
    
    
    (2 182
    )
    
    
    (2 602
    )Interest and preference dividends paid
    
    
    (487
    )
    
    
    (552
    )
    
    
    (605
    )Additional financial liabilities
    
    
    4 544
    
    
    
    4 283
    
    
    
    2 154Repayment of financial liabilities
    
    
    (3 427
    )
    
    
    (2 896
    )
    
    
    (5 364
    )Sale and leaseback transactions resulting in finance leases
    
    
    (1
    )
    
    
    25
    
    
    
    2Capital element of finance lease rental payments
    
    
    (66
    )
    
    
    (74
    )
    
    
    (73
    )Share buy-back programme
    
    
    (1 503
    )
    
    
    (1 500
    )
    
    
    Other movements on treasury stock
    
    
    103
    
    
    
    442
    
    
    
    98Other financing activities
    
    
    (207
    )
    
    
    (555
    )
    
    
    (182
    )Net cash flow from/(used in) financing activities
    
    
    (3 130
    )
    
    
    (3 009
    )
    
    
    (6 572
    )Net increase/(decrease) in cash and cash equivalents
    
    
    2 156
    
    
    
    244
    
    
    
    (906
    )Cash and cash equivalents at the beginning of the year
    
    
    901
    
    
    
    710
    
    
    
    1 265Effect of foreign exchange rate changes
    
    
    (697
    )
    
    
    (53
    )
    
    
    351Cash and cash equivalents at the end of the year15
    
    
    2 360
    
    
    
    901
    
    
    
    710
  Unilever Annual Report on Form 20-F 2008 83




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##### Table of Contents



Unilever Group
  
 1 Accounting information and policies
 Unilever
 1 9
 Basis of consolidation
  Companies legislation and accounting standards
   Foreign currencies
 Business combinations
  Goodwill
   84 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Unilever Group
  1 Accounting information and policies
 Intangible assets
   Property, plant and equipment
 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  Other non-current assets
 Financial instruments
 Financial assets
  Held-to-maturity investments
 Loans and receivables
  Available-for-sale financial assets
 Financial assets at fair value through profit or loss
   Unilever Annual Report on Form 20-F 2008 85




---



##### Table of Contents



Unilever Group
  1 Accounting information and policies
 Financial liabilities
  Derivative financial instruments
   Cash flow hedges
  Fair value hedges
 Net investment hedges
 Valuation principles
 Impairment of financial instruments
 Inventories
 Cash and cash equivalents
 Pensions and similar obligations
   86 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  1 Accounting information and policies
 Taxation
    Provisions
 Segment information
 Revenue recognition
  Research and market support costs
 Leases
 Share-based payments
 Shares held by employee share trusts
 Assets held for sale
 Critical accounting estimates and judgements
  Income statement presentation
 Impairment of goodwill and indefinite-lived intangible assets
   Unilever Annual Report on Form 20-F 2008 87




---



##### Table of Contents



Unilever Group
  1 Accounting information and policies
 Retirement benefits
 Taxation
 Provisions
 Recent accounting developments
 
    
    Amendments in IAS 1 Presentation of Financial Statements
(effective for annual periods beginning on or after 1
January 2009) requiring information in financial
statements to be aggregated on the basis of shared
characteristics and introducing a statement of
comprehensive income.
 
    
    Amendments in IAS 23 Borrowing Costs
(effective for annual periods beginning on or
after 1 January 2009) removing the option for
expensing borrowing costs and requiring mandatory
capitalisation of qualifying borrowing costs.
    
    IFRS 8 Operating Segments (effective for
annual periods beginning on or after 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.
    
    Amendments in IFRS 3 Business Combinations
and IAS 27 Consolidated and Separate Financial
Statements (effective for annual periods
beginning on or after 1 July 2009) changing and
updating the existing requirements or practice
on accounting for partial acquisitions, step
acquisitions, acquisition-related costs,
contingent consideration and transactions with
non-controlling interests.
    
    Amendment to IAS 38 Intangible Assets
(effective for annual periods beginning on or
after 1 January 2009) clarifies the
accounting for advertising expenditure.
    
    IFRIC 16 Hedges of a Net Investment in a Foreign Operation
(effective for annual periods beginning on or after 1 October 2009).
    
    IFRIC 17 Distributions of Non-cash Assets to
Owners (effective for annual periods beginning
on or after 1 July 2009).
    
    IFRIC 18 Transfers of Assets from Customers
(effective for annual periods beginning on or
after 1 July 2009).
   88 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Unilever Group
  
 2 Segment information
    million
    
    
     million
    
    
     million
    
    
     millionWestern
    
    
    The
    
    
    Asia AfricaAnalysis by geographical segment
    
    Europe
    
    
    Americas
    
    
    CEE
    
    
    Total2008Turnover
    
    
    12 853
    
    
    
    13 199
    
    
    
    14 471
    
    
    
    40 523Operating profit
    
    
    2 521
    
    
    
    2 945
    
    
    
    1 701
    
    
    
    7 167Net finance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (257
    )Share of net profit/(loss) of joint ventures
    
    
    60
    
    
    
    63
    
    
    
    2
    
    
    
    125Share of net profit/(loss) of associates
    
    
    6
    
    
    
    
    
    
    
    
    
    
    
    6Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    88Profit before taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7 129Taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 844
    )Net profit from continuing operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 285Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 2852007Turnover
    
    
    13 327
    
    
    
    13 442
    
    
    
    13 418
    
    
    
    40 187Operating profit
    
    
    1 563
    
    
    
    1 971
    
    
    
    1 711
    
    
    
    5 245Net finance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (252
    )Share of net profit/(loss) of joint ventures
    
    
    26
    
    
    
    74
    
    
    
    2
    
    
    
    102Share of net profit/(loss) of associates
    
    
    50
    
    
    
    
    
    
    
    
    
    
    
    50Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39Profit before taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 184Taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 128
    )Net profit from continuing operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4 056Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    80Net profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4 1362006Turnover
    
    
    13 322
    
    
    
    13 779
    
    
    
    12 541
    
    
    
    39 642Operating profit
    
    
    1 787
    
    
    
    2 178
    
    
    
    1 443
    
    
    
    5 408Net finance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (721
    )Share of net profit/(loss) of joint ventures
    
    
    17
    
    
    
    60
    
    
    
    1
    
    
    
    78Share of net profit/(loss) of associates
    
    
    36
    
    
    
    
    
    
    
    
    
    
    
    36Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30Profit before taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4 831Taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 146
    )Net profit from continuing operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3 685Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 330Net profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 015
  Unilever Annual Report on Form 20-F
2008 89




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##### Table of Contents



Unilever Group
  2 Segment information
  million
    
    
     million
    
    
     million
    
    
     millionWestern
    
    
    The
    
    
    Asia AfricaAnalysis by geographical segment
    
    Europe
    
    
    Americas
    
    
    CEE
    
    
    TotalAssets2008Segment assets
    
    
    11 976
    
    
    
    9 988
    
    
    
    8 213
    
    
    
    30 177Joint ventures/associates
    
    
    118
    
    
    
    9
    
    
    
    13
    
    
    
    140Total assets by geographical segment
    
    
    12 094
    
    
    
    9 997
    
    
    
    8 226
    
    
    
    30 317Corporate assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 825Total assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36 1422007Segment assets
    
    
    12 759
    
    
    
    10 867
    
    
    
    8 022
    
    
    
    31 648Joint ventures/associates
    
    
    201
    
    
    
    11
    
    
    
    12
    
    
    
    224Total assets by geographical segment
    
    
    12 960
    
    
    
    10 878
    
    
    
    8 034
    
    
    
    31 872Corporate assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 430Total assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    37 302Liabilities2008Segment liabilities
    
    
    3 297
    
    
    
    1 724
    
    
    
    2 978
    
    
    
    7 999Joint ventures/associates
    
    
    13
    
    
    
    9
    
    
    
    9
    
    
    
    31Total liabilities by geographical segment
    
    
    3 310
    
    
    
    1 733
    
    
    
    2 987
    
    
    
    8 030Corporate liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17 740Total liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25 7702007Segment liabilities
    
    
    3 584
    
    
    
    1 702
    
    
    
    2 948
    
    
    
    8 234Joint ventures/associates
    
    
    12
    
    
    
    10
    
    
    
    8
    
    
    
    30Total liabilities by geographical segment
    
    
    3 596
    
    
    
    1 712
    
    
    
    2 956
    
    
    
    8 264Corporate liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16 219Total liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24 483Capital expenditure2008
    
    
    428
    
    
    
    397
    
    
    
    655
    
    
    
    1 4802007
    
    
    586
    
    
    
    342
    
    
    
    497
    
    
    
    1 425Depreciation of property, plant and equipment2008
    
    
    (332
    )
    
    
    (234
    )
    
    
    (222
    )
    
    
    (788
    )2007
    
    
    (345
    )
    
    
    (249
    )
    
    
    (210
    )
    
    
    (804
    )2006
    
    
    (324
    )
    
    
    (239
    )
    
    
    (224
    )
    
    
    (787
    )Amortisation of finite-lived intangible assets and software2008
    
    
    (94
    )
    
    
    (49
    )
    
    
    (25
    )
    
    
    (168
    )2007
    
    
    (71
    )
    
    
    (48
    )
    
    
    (21
    )
    
    
    (140
    )2006
    
    
    (59
    )
    
    
    (76
    )
    
    
    (22
    )
    
    
    (157
    )
  90 Unilever Annual Report on Form 20-F
2008




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##### Table of Contents



Unilever Group
  2 Segment information
  million
    
    
     million
    
    
     million
    
    
     millionWestern
    
    
    The
    
    
    Asia AfricaAnalysis by geographical segment
    
    Europe
    
    
    Americas
    
    
    CEE
    
    
    TotalImpairment charges2008Goodwill
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Intangible assets
    
    
    
    
    
    
    (38
    )
    
    
    
    
    
    
    (38
    )Other
    
    
    
    
    
    
    (30
    )
    
    
    15
    (a)
    
    
    (15
    )Total impairment charge
    
    
    
    
    
    
    (68
    )
    
    
    15
    
    
    
    (53
    )2007Goodwill
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Intangible assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total impairment charge
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2006Goodwill
    
    
    (12
    )
    
    
    
    
    
    
    
    
    
    
    (12
    )Intangible assets
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    (2
    )Total impairment charge
    
    
    (12
    )
    
    
    (2
    )
    
    
    
    
    
    
    (14
    )Other non-cash charges2008
    
    
    (293
    )
    
    
    (168
    )
    
    
    (42
    )
    
    
    (503
    )2007
    
    
    (341
    )
    
    
    (216
    )
    
    
    (91
    )
    
    
    (648
    )2006
    
    
    (681
    )
    
    
    (231
    )
    
    
    (50
    )
    
    
    (962
    )
 
 (a)
    
    Reversal of provisions following sale of edible oil business in Côte dIvoire (see note 26 on
page 128).  Analysis by product area
 Savoury, dressings and spreads  Ice cream and beverages  Personal care  Home care and other operations
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionSavoury,
    
    
    Ice cream
    
    
    
    
    
    
    Homedressings
    
    
    and
    
    
    Personal
    
    
    care andAnalysis by product area
    
    and spreads
    
    
    beverages
    
    
    care
    
    
    other
    
    
    Total2008Turnover
    
    
    14 232
    
    
    
    7 694
    
    
    
    11 383
    
    
    
    7 214
    
    
    
    40 523Operating profit
    
    
    3 216
    
    
    
    915
    
    
    
    1 824
    
    
    
    1 212
    
    
    
    7 167Net finance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (257
    )Share of net profit/(loss) of joint ventures
    
    
    15
    
    
    
    98
    
    
    
    5
    
    
    
    7
    
    
    
    125Share of net profit/(loss) of associates
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    6Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    88Profit before taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7 129Taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 844
    )Net profit from continuing operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 285Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    -Net profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 2852007Turnover
    
    
    13 988
    
    
    
    7 600
    
    
    
    11 302
    
    
    
    7 297
    
    
    
    40 187Operating profit
    
    
    2 059
    
    
    
    809
    
    
    
    1 786
    
    
    
    591
    
    
    
    5 245Net finance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (252
    )Share of net profit/(loss) of joint ventures
    
    
    15
    
    
    
    85
    
    
    
    1
    
    
    
    1
    
    
    
    102Share of net profit/(loss) of associates
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    50
    
    
    
    50Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39Profit before taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 184Taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 128
    )Net profit from continuing operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4 056Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    80Net profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4 136
 Unilever Annual Report on Form 20-F
2008 91




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##### Table of Contents



Unilever Group
  2 Segment information
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionSavoury,
    
    
    Ice cream
    
    
    
    
    
    
    Homedressings
    
    
    and
    
    
    Personal
    
    
    care andAnalysis by product area
    
    and spreads
    
    
    beverages
    
    
    care
    
    
    other
    
    
    Total2006Turnover
    
    
    13 767
    
    
    
    7 578
    
    
    
    11 122
    
    
    
    7 175
    
    
    
    39 642Operating profit
    
    
    1 993
    
    
    
    900
    
    
    
    1 913
    
    
    
    602
    
    
    
    5 408Net finance costs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (721
    )Share of net profit/(loss) of joint ventures
    
    
    13
    
    
    
    64
    
    
    
    1
    
    
    
    
    
    
    
    78Share of net profit/(loss) of associates
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36
    
    
    
    36Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30Profit before taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4 831Taxation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 146
    )Net profit from continuing operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3 685Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 330Net profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 015Assets2008Segment assets
    
    
    18 577
    
    
    
    4 375
    
    
    
    3 857
    
    
    
    3 368
    
    
    
    30 177Joint ventures/associates
    
    
    21
    
    
    
    46
    
    
    
    15
    
    
    
    58
    
    
    
    140Total assets by product area
    
    
    18 598
    
    
    
    4 421
    
    
    
    3 872
    
    
    
    3 426
    
    
    
    30 317Corporate assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 825Total assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36 1422007Segment assets
    
    
    19 794
    
    
    
    4 434
    
    
    
    3 752
    
    
    
    3 668
    
    
    
    31 648Joint ventures/associates
    
    
    19
    
    
    
    134
    
    
    
    12
    
    
    
    59
    
    
    
    224Total assets by product area
    
    
    19 813
    
    
    
    4 568
    
    
    
    3 764
    
    
    
    3 727
    
    
    
    31 872Corporate assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5 430Total assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    37 302Capital expenditure2008
    
    
    452
    
    
    
    426
    
    
    
    360
    
    
    
    242
    
    
    
    1 4802007
    
    
    451
    
    
    
    350
    
    
    
    383
    
    
    
    241
    
    
    
    1 425
 92 Unilever Annual Report on Form 20-F
2008




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##### Table of Contents



Unilever Group
  
 3 Gross profit and operating costs
  million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Turnover
    
    
    40 523
    
    
    
    40 187
    
    
    
    39 642Cost of sales
    
    
    (21 342
    )
    
    
    (20 558
    )
    
    
    (20 093
    )Gross profit
    
    
    19 181
    
    
    
    19 629
    
    
    
    19 549Distribution and selling costs
    
    
    (9 309
    )
    
    
    (9 489
    )
    
    
    (9 486
    )Administrative expenses(a)
    
    
    (2 705
    )
    
    
    (4 895
    )
    
    
    (4 655
    )Operating profit
    
    
    7 167
    
    
    
    5 245
    
    
    
    5 408
 
 (a)
    
    Includes gain on disposals of group companies, amortisation of finite-lived intangible assets
and impairment of goodwill and intangible assets.   million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Restructuring
    
    
    (868
    )
    
    
    (875
    )
    
    
    (704
    )Business disposals, impairments and other:Gain/(loss) on disposals of group companies
    
    
    2 190
    
    
    
    297
    
    
    
    179Impairments
    
    
    (53
    )
    
    
    
    
    
    
    (14
    )(Provision for)/release of Brazilian sales tax
    
    
    
    
    
    
    9
    
    
    
    31Gains on US healthcare and UK pensions
    
    
    
    
    
    
    
    
    
    
    266
     million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Staff costs
    
    
    (5 274
    )
    
    
    (5 537
    )
    
    
    (5 355
    )Raw and packaging materials and goods purchased for resale
    
    
    (16 489
    )
    
    
    (15 588
    )
    
    
    (15 655
    )Amortisation of finite-lived intangible assets and software
    
    
    (168
    )
    
    
    (140
    )
    
    
    (157
    )Depreciation of property, plant and equipment
    
    
    (788
    )
    
    
    (804
    )
    
    
    (787
    )Advertising and promotions
    
    
    (5 055
    )
    
    
    (5 289
    )
    
    
    (5 203
    )Exchange gains/(losses):
    
    
    108
    
    
    
    (15
    )
    
    
    (25
    )On underlying transactions
    
    
    77
    
    
    
    (10
    )
    
    
    (10
    )On covering forward contracts
    
    
    31
    
    
    
    (5
    )
    
    
    (15
    )Lease rentals:
    
    
    (487
    )
    
    
    (477
    )
    
    
    (451
    )Minimum operating lease payments
    
    
    (495
    )
    
    
    (488
    )
    
    
    (455
    )Contingent operating lease payments
    
    
    
    
    
    
    
    
    
    
    (3
    )Less: Sub-lease income relating to operating lease agreements
    
    
    8
    
    
    
    11
    
    
    
    7
  Unilever Annual Report on Form 20-F
2008 93




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##### Table of Contents



Unilever Group
  
 4 Staff costs
  million
    
    
     million
    
    
     millionStaff costs
    
    2008
    
    
    2007
    
    
    2006Remuneration of employees
    
    
    (4 182
    )
    
    
    (4 409
    )
    
    
    (4 377
    )Emoluments of Executive Directors
    
    
    (11
    )
    
    
    (9
    )
    
    
    (8
    )Pensions and other post-employment benefits(a)
    
    
    (329
    )
    
    
    (321
    )
    
    
    (132
    )Social security costs
    
    
    (627
    )
    
    
    (646
    )
    
    
    (718
    )Share-based compensation costs
    
    
    (125
    )
    
    
    (152
    )
    
    
    (120
    )(5 274
    )
    
    
    (5 537
    )
    
    
    (5 355
    )
 
 (a)
    
    In 2006 includes gains of 266 million arising from changes in US post-retirement healthcare
plans and UK pension plans. '000
    
    
    '000
    
    
    '000Average number of employees during the year
    
    2008
    
    
    2007
    
    
    2006Western Europe
    
    
    32
    
    
    
    35
    
    
    
    38The Americas
    
    
    42
    
    
    
    44
    
    
    
    46Asia, Africa and Central & Eastern Europe
    
    
    100
    
    
    
    96
    
    
    
    105174
    
    
    
    175
    
    
    
    189
  
 5 Net finance costs
  million
    
    
     million
    
    
     millionFinance costs
    
    2008
    
    
    2007
    
    
    2006Finance costs
    
    
    (506
    )
    
    
    (550
    )
    
    
    (590
    )Bank loans and overdrafts
    
    
    (73
    )
    
    
    (62
    )
    
    
    (93
    )Bonds and other loans
    
    
    (429
    )
    
    
    (493
    )
    
    
    (499
    )Dividends paid on preference shares
    
    
    (7
    )
    
    
    (7
    )
    
    
    (6
    )Net gain/(loss) on natural hedges
(a)
    
    
    3
    
    
    
    12
    
    
    
    8On interest rate swaps
    


    
    
    
    
    (1
    )
    
    
    (6
    )On foreign exchange derivatives
    
    
    (221
    )
    
    
    538
    
    
    
    1 035Exchange difference on underlying items
    
    
    224
    
    
    
    (525
    )
    
    
    (1 021
    )Preference shares provision(b)
    
    
    
    
    
    
    (7
    )
    
    
    (300
    )Finance income
    
    
    106
    
    
    
    147
    
    
    
    128Pensions and similar obligations(c)
    
    
    143
    
    
    
    158
    
    
    
    41(257
    )
    
    
    (252
    )
    
    
    (721
    )
 
 (a)
    
    For further details on natural hedges please refer to
note 17 on page 111.(b)
    
    For further information please refer
to note 19 on page 114.(c)
    
    Net finance costs in respect of pensions and similar obligations are analysed in note 20 on
page 118. 94 Unilever Annual Report on Form 20-F
2008




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##### Table of Contents



Unilever Group
  
 6 Taxation
  million
    
    
     million
    
    
     millionTax charge in income statement
    
    2008
    
    
    2007
    
    
    2006Current taxCurrent year
    
    
    (1 650
    )
    
    
    (1 118
    )
    
    
    (1 171
    )Over/(under) provided in prior years(a)
    
    
    80
    
    
    
    226
    
    
    
    206(1 570
    )
    
    
    (892
    )
    
    
    (965
    )Deferred taxOrigination and reversal of temporary differences
    
    
    (271
    )
    
    
    (261
    )
    
    
    (171
    )Changes in tax rates
    
    
    (3
    )
    
    
    21
    
    
    
    (15
    )Utilisation of unrecognised losses brought forward
    
    
    
    
    
    
    4
    
    
    
    5(274
    )
    
    
    (236
    )
    
    
    (181
    )(1 844
    )
    
    
    (1 128
    )
    
    
    (1 146
    )
 
 (a)
    
    Provisions have been released following the favourable settlement of prior year tax audits in a
number of countries, none of which is individually material.  %
    
    
    %
    
    
    %Reconciliation of effective tax rate
    
    2008
    
    
    2007
    
    
    2006Computed rate of tax(b)
    
    
    30
    
    
    
    29
    
    
    
    31Differences due to:Incentive tax credits
    
    
    (5
    )
    
    
    (6
    )
    
    
    (7
    )Withholding tax on dividends
    
    
    2
    
    
    
    2
    
    
    
    1Adjustments to previous years
    
    
    (2
    )
    
    
    (5
    )
    
    
    (4
    )Expenses not deductible for tax purposes
    
    
    1
    
    
    
    2
    
    
    
    2Other
    
    
    
    
    
    
    
    
    
    
    1Effective tax rate
    
    
    26
    
    
    
    22
    
    
    
    24
 
 (b)
    
    The computed tax rate used is the average of the standard rate of tax applicable in the
countries in which Unilever operates, weighted by the amount of profit before taxation generated in
each of those countries. For this reason the rate may vary from year to year according to the mix
of profit and related tax rates. Unilever Annual Report on Form 20-F 2008 95




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##### Table of Contents



Unilever Group
  
 7 Combined earnings per share
 
    
    
    
    
    
    Combined earnings per share
    
    2008
    
    
    2007
    
    
    2006From continuing operationsBasic earnings per share
    
    
    1.79
    
    
    
    1.32
    
    
    
    1.19Diluted earnings per share
    
    
    1.73
    
    
    
    1.28
    
    
    
    1.15From discontinued operationsBasic earnings per share
    
    
    
    
    
    
    0.03
    
    
    
    0.46Diluted earnings per share
    
    
    
    
    
    
    0.03
    
    
    
    0.45From total operationsBasic earnings per share
    
    
    1.79
    
    
    
    1.35
    
    
    
    1.65Diluted earnings per share
    
    
    1.73
    
    
    
    1.31
    
    
    
    1.60
 Basis of calculation
   Millions of share unitsCalculation of average number of share units
    
    2008
    
    
    2007
    
    
    2006Average number of shares: NV
    
    
    1 714.7
    
    
    
    1 714.7
    
    
    
    1 714.7PLC
    
    
    1 310.2
    
    
    
    1 310.2
    
    
    
    1 310.2Less shares held by employee share trusts and companies
    
    
    (215.3
    )
    
    
    (150.3
    )
    
    
    (141.6
    )Combined average number of share units for all bases except diluted earnings per share
    
    
    2 809.6
    
    
    
    2 874.6
    
    
    
    2 883.3Add shares issuable in 2038
    
    
    70.9
    
    
    
    70.9
    
    
    
    70.9Add dilutive effect of share-based compensation plans and forward equity contract
    
    
    25.4
    
    
    
    30.6
    
    
    
    18.3Adjusted combined average number of share units for diluted earnings per share basis
    
    
    2 905.9
    
    
    
    2 976.1
    
    
    
    2 972.5
  million
    
    
     million
    
    
     millionCalculation of earnings
    
    2008
    
    
    2007
    
    
    2006For earnings per share from total operations:Net profit attributable to ordinary capital for total operations
    
    
    5 027
    
    
    
    3 888
    
    
    
    4 745For earnings per share from continuing operations:Net profit from continuing operations
    
    
    5 285
    
    
    
    4 056
    
    
    
    3 685Minority interest in continuing operations
    
    
    (258
    )
    
    
    (248
    )
    
    
    (266
    )Net profit attributable to ordinary capital for continuing operations
    
    
    5 027
    
    
    
    3 808
    
    
    
    3 419
  Millions of share units2008
    
    
    2007Number of shares at 1 January (net of treasury stock)
    
    
    2 853.1
    
    
    
    2 889.9Net movements in shares under incentive schemes
    
    
    11.4
    
    
    
    29.7Share buy-back
    
    
    (75.4
    )
    
    
    (66.5
    )Number of shares at 31 December
    
    
    2 789.1
    
    
    
    2 853.1
 96 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Unilever Group
  
 8 Dividends on ordinary capital
  million
    
    
     million
    
    
     millionDividends paid on ordinary capital during the year
    
    2008
    
    
    2007
    
    
    2006Final NV dividend for the prior year of 0.50 per share (2007: 0.47; 2006: 0.44)
    
    
    (779
    )
    
    
    (767
    )
    
    
    (722
    )Final PLC dividend for the prior year of 34.11p per share (2007: 32.04p; 2006: 30.09p)
    
    
    (548
    )
    
    
    (589
    )
    
    
    (547
    )Interim NV dividend for the year of 0.26 per share (2007: 0.25; 2006: 0.23)
    
    
    (397
    )
    
    
    (400
    )
    
    
    (379
    )Interim PLC dividend for the year of 20.55p per share (2007: 17.00p; 2006: 15.62p)
    
    
    (328
    )
    
    
    (314
    )
    
    
    (285
    )One-off NV dividend of 0.26 per share in 2006
    
    
    
    
    
    
    
    
    
    
    (428
    )One-off PLC dividend of 17.66p per share in 2006
    
    
    
    
    
    
    
    
    
    
    (323
    )(2 052
    )
    
    
    (2 070
    )
    
    
    (2 684
    )Of which:NV dividends
    
    
    (1 176
    )
    
    
    (1 167
    )
    
    
    (1 529
    )PLC dividends
    
    
    (876
    )
    
    
    (903
    )
    
    
    (1 155
    )
   
 9 Goodwill and intangible assets
   million
    
    
     millionAt cost less amortisation and impairment
    
    2008
    
    
    2007Goodwill
    
    
    11 665
    
    
    
    12 244Intangible assets:
    
    
    4 426
    
    
    
    4 511Indefinite-lived intangible assets
    
    
    3 886
    
    
    
    3 921Finite-lived intangible assets
    
    
    206
    
    
    
    273Software
    
    
    334
    
    
    
    31716 091
    
    
    
    16 755
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionIndefinite-
    
    
    Finite-lived
    
    
    livedintangible
    
    
    intangibleMovements during 2008
    
    Goodwill
    
    
    assets
    
    
    assets
    
    
    Software
    
    
    TotalCost1 January 2008
    
    
    13 182
    
    
    
    4 134
    
    
    
    621
    
    
    
    501
    
    
    
    18 438Acquisitions of group companies
    
    
    60
    
    
    
    90
    
    
    
    1
    
    
    
    
    
    
    
    151Disposals of group companies
    
    
    (129
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (129
    )Additions
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    146
    
    
    
    147Disposals
    
    
    
    
    
    
    
    
    
    
    (3
    )
    
    
    (33
    )
    
    
    (36
    )Currency retranslation
    
    
    (496
    )
    
    
    (81
    )
    
    
    (20
    )
    
    
    (34
    )
    
    
    (631
    )Reclassification as held for sale
    
    
    
    
    
    
    (37
    )
    
    
    (1
    )
    
    
    
    
    
    
    (38
    )31 December 2008
    
    
    12 617
    
    
    
    4 107
    
    
    
    598
    
    
    
    580
    
    
    
    17 902Amortisation and impairment1 January 2008
    
    
    (938
    )
    
    
    (213
    )
    
    
    (348
    )
    
    
    (184
    )
    
    
    (1 683
    )Disposal of group companies
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12Amortisation for the year
    
    
    
    
    
    
    
    
    
    
    (59
    )
    
    
    (109
    )
    
    
    (168
    )Impairment
    
    
    
    
    
    
    (37
    )
    
    
    (1
    )
    
    
    
    
    
    
    (38
    )Disposals
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    33
    
    
    
    35Currency retranslation
    
    
    (26
    )
    
    
    (8
    )
    
    
    13
    
    
    
    14
    
    
    
    (7
    )Reclassification as held for sale
    
    
    
    
    
    
    37
    
    
    
    1
    
    
    
    
    
    
    
    3831 December 2008
    
    
    (952
    )
    
    
    (221
    )
    
    
    (392
    )
    
    
    (246
    )
    
    
    (1 811
    )Net book value 31 December 2008
    
    
    11 665
    
    
    
    3 886
    
    
    
    206
    
    
    
    334
    
    
    
    16 091
 Unilever Annual Report on Form 20-F
2008 97




---



##### Table of Contents



Unilever Group
  9 Goodwill and intangible assets
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionIndefinite-
    
    
    Finite-lived
    
    
    livedintangible
    
    
    intangibleMovements during 2007
    
    Goodwill
    
    
    assets
    
    
    assets
    
    
    Software
    
    
    TotalCost1 January 2007
    
    
    13 454
    
    
    
    4 409
    
    
    
    642
    
    
    
    392
    
    
    
    18 897Acquisitions of group companies
    
    
    334
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    334Disposals of group companies
    
    
    (4
    )
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    (5
    )Change in useful life assumptions
    
    
    
    
    
    
    (2
    )
    
    
    2
    
    
    
    
    
    
    
    Additions
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    133
    
    
    
    136Disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (16
    )
    
    
    (16
    )Currency retranslation
    
    
    (602
    )
    
    
    (272
    )
    
    
    (26
    )
    
    
    (8
    )
    
    
    (908
    )31 December 2007
    
    
    13 182
    
    
    
    4 134
    
    
    
    621
    
    
    
    501
    
    
    
    18 438Amortisation and impairment1 January 2007
    
    
    (1 029
    )
    
    
    (235
    )
    
    
    (299
    )
    
    
    (128
    )
    
    
    (1 691
    )Amortisation for the year
    
    
    
    
    
    
    
    
    
    
    (64
    )
    
    
    (76
    )
    
    
    (140
    )Disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16
    
    
    
    16Currency retranslation
    
    
    91
    
    
    
    22
    
    
    
    15
    
    
    
    4
    
    
    
    13231 December 2007
    
    
    (938
    )
    
    
    (213
    )
    
    
    (348
    )
    
    
    (184
    )
    
    
    (1 683
    )Net book value 31 December 2007
    
    
    12 244
    
    
    
    3 921
    
    
    
    273
    
    
    
    317
    
    
    
    16 755
  Impairments charge in the year
  Significant CGUs
    
    
    a longer-term sustainable growth rate of 4%, 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 6%; and
    
    average operating margins for the major product groups within
the CGU ranging from 15% to 19%.
     98 Unilever Annual Report on Form 20-F
2008




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##### Table of Contents



Unilever Group
  
 10 Property, plant and equipment
  million
    
    
     millionAt cost less depreciation and impairment
    
    2008
    
    
    2007Land and buildings
    
    
    1 859
    
    
    
    1 989Plant and equipment
    
    
    4 098
    
    
    
    4 2955 957
    
    
    
    6 284Includes freehold land
    
    
    154
    
    
    
    207Commitments for capital expenditure at 31 December
    
    
    286
    
    
    
    321
  million
    
    
     million
    
    
     millionLand and
    
    
    Plant andMovements during 2008
    
    buildings
    
    
    equipment
    
    
    TotalGross1 January 2008
    
    
    3 019
    
    
    
    10 254
    
    
    
    13 273Acquisition of group companies
    
    
    24
    
    
    
    48
    
    
    
    72Disposals of group companies
    
    
    (61
    )
    
    
    (116
    )
    
    
    (177
    )Additions
    
    
    154
    
    
    
    1 016
    
    
    
    1 170Disposals
    
    
    (84
    )
    
    
    (773
    )
    
    
    (857
    )Currency retranslation
    
    
    (227
    )
    
    
    (823
    )
    
    
    (1 050
    )Reclassification as held for sale
    
    
    (25
    )
    
    
    (29
    )
    
    
    (54
    )Other adjustments
    
    
    40
    
    
    
    (58
    )
    
    
    (18
    )31 December 2008
    
    
    2 840
    
    
    
    9 519
    
    
    
    12 359Depreciation1 January 2008
    
    
    (1 030
    )
    
    
    (5 959
    )
    
    
    (6 989
    )Disposals of group companies
    
    
    22
    
    
    
    63
    
    
    
    85Depreciation charge for the year
    
    
    (107
    )
    
    
    (681
    )
    
    
    (788
    )Disposals
    
    
    65
    
    
    
    681
    
    
    
    746Currency Retranslation
    
    
    66
    
    
    
    413
    
    
    
    479Reclassification as held for sale
    
    
    14
    
    
    
    35
    
    
    
    49Other adjustments
    
    
    (11
    )
    
    
    27
    
    
    
    1631 December 2008
    
    
    (981
    )
    
    
    (5 421
    )
    
    
    (6 402
    )Net book value 31 December 2008
    
    
    1 859
    
    
    
    4 098
    
    
    
    5 957Includes payments on account and assets in course of construction
    
    
    92
    
    
    
    526
    
    
    
    618
 Unilever Annual Report on Form 20-F
2008 99




---



##### Table of Contents



Unilever Group
  10 Property, plant and equipment
  million
    
    
     million
    
    
     millionLand and
    
    
    Plant andMovements during 2007
    
    buildings
    
    
    equipment
    
    
    TotalGross1 January 2007
    
    
    2 992
    
    
    
    10 371
    
    
    
    13 363Disposals of group companies
    
    
    (12
    )
    
    
    (142
    )
    
    
    (154
    )Additions
    
    
    346
    
    
    
    943
    
    
    
    1 289Disposals
    
    
    (98
    )
    
    
    (429
    )
    
    
    (527
    )Currency retranslation
    
    
    (116
    )
    
    
    (333
    )
    
    
    (449
    )Reclassification as held for sale
    
    
    (41
    )
    
    
    (165
    )
    
    
    (206
    )Other adjustments
    
    
    (52
    )
    
    
    9
    
    
    
    (43
    )31 December 2007
    
    
    3 019
    
    
    
    10 254
    
    
    
    13 273Depreciation1 January 2007
    
    
    (1 048
    )
    
    
    (6 039
    )
    
    
    (7 087
    )Disposals of group companies
    
    
    8
    
    
    
    102
    
    
    
    110Depreciation charge for the year
    
    
    (106
    )
    
    
    (698
    )
    
    
    (804
    )Disposals
    
    
    37
    
    
    
    372
    
    
    
    409Currency retranslation
    
    
    36
    
    
    
    186
    
    
    
    222Reclassification as held for sale
    
    
    24
    
    
    
    114
    
    
    
    138Other adjustments
    
    
    19
    
    
    
    4
    
    
    
    2331 December 2007
    
    
    (1 030
    )
    
    
    (5 959
    )
    
    
    (6 989
    )Net book value 31 December 2007
    
    
    1 989
    
    
    
    4 295
    
    
    
    6 284Includes payments on account and assets in course of construction
    
    
    80
    
    
    
    542
    
    
    
    622
   million
    
    
     million
    
    
     millionPlant andNet book value
    
    Buildings
    
    
    equipment
    
    
    TotalGross book value
    
    
    177
    
    
    
    243
    
    
    
    420Depreciation
    
    
    (25
    )
    
    
    (146
    )
    
    
    (171
    )31 December 2008
    
    
    152
    
    
    
    97
    
    
    
    249Gross book value
    
    
    223
    
    
    
    342
    
    
    
    565Depreciation
    
    
    (16
    )
    
    
    (204
    )
    
    
    (220
    )31 December 2007
    
    
    207
    
    
    
    138
    
    
    
    345
 100 Unilever Annual Report on Form 20-F
2008




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##### Table of Contents



Unilever Group
  
 11 Other non-current assets
  million
    
    
     million2008
    
    
    2007Interest in net assets of joint ventures
    
    
    73
    
    
    
    150Interest in net assets of associates
    
    
    67
    
    
    
    74Other non-current financial assets(a):
    
    
    904
    
    
    
    738Held-to-maturity investments
    
    
    472
    
    
    
    473Loans and receivables
    
    
    9
    
    
    
    13Available-for-sale financial assets(b)
    
    
    370
    
    
    
    201Financial assets at fair value through profit or loss
    
    
    53
    
    
    
    51Long-term trade and other receivables(c)
    
    
    171
    
    
    
    187Fair value of biological assets
    
    
    31
    
    
    
    37Other non-financial assets
    
    
    180
    
    
    
    1381 426
    
    
    
    1 324
 
 (a)
    
    Predominantly consist of investments in a number of companies and financial institutions in
India, Europe and the US, including 146 million (2007: 162 million) of assets in a trust to fund
benefit obligations in the US (see also note 20 on page 118).(b)
    
    2008 includes unlisted preferred shares arising in connection with US laundry disposal (see
note 26 on page 128).(c)
    
    Classified as loans and
receivables.  million
    
    
     millionMovements during 2008 and 2007
    
    2008
    
    
    2007Joint ventures(d)1 January
    
    
    150
    
    
    
    57Additions(e)
    
    
    
    
    
    
    115Dividends
received/reductions(f)
    
    
    (202
    )
    
    
    (122
    )Share in net profit
    
    
    125
    
    
    
    102Currency retranslation
    
    
    
    
    
    
    (2
    )31 December
    
    
    73
    
    
    
    150Associates(g)1 January
    
    
    44
    
    
    
    12Acquisitions/(disposals)
    
    
    22
    
    
    
    31Dividends received/reductions
    
    
    (22
    )
    
    
    (48
    )Share in net profit
    
    
    6
    
    
    
    50Currency retranslation
    
    
    (14
    )
    
    
    (1
    )36
    
    
    
    44Of which: Net liabilities of JohnsonDiversey reclassified to provisions
    
    
    31
    
    
    
    3031 December
    
    
    67
    
    
    
    74
 
 (d)
    
    Our principal joint ventures are Unilever Jerónimo Martins in Portugal, Pepsi/Lipton
International and the Pepsi/Lipton Partnership in the US.(e)
    
    In January 2007, the reorganisation
of our Portuguese businesses was completed, whereby Unilever now has a 55% share of the combined
Portuguese entity, called Unilever Jerónimo Martins. The structure of the newly formed entity is
such that there is joint control and it is therefore accounted for by Unilever as a joint venture.
In December 2007 a capital contribution of 103 million was made to Pepsi/Lipton International.(f)
    
    In relation to the extension of the Pepsi/Lipton joint venture for ready-to-drink tea in
January 2008, a reduction of 110 million in carrying value of Pepsi/Lipton International
was recorded.(g)
    
    Associates primarily comprise our investments in JohnsonDiversey Holdings Inc., Langholm
Capital Partners and Physic Ventures. Other Unilever Ventures assets (excluding Langholm) are
included under Other non-current financial assets above.  million
    
    
     millionAnalysis of listed and unlisted investments
    
    2008
    
    
    2007Investments listed on a recognised stock exchange
    
    
    344
    
    
    
    388Unlisted investments
    
    
    560
    
    
    
    350904
    
    
    
    738
  million
    
    
     million
    
    
     millionOther income from non-current investments
    
    2008
    
    
    2007
    
    
    2006Income from other non-current investments
    
    
    19
    
    
    
    19
    
    
    
    21Profit/(loss) on disposal(h)
    
    
    69
    
    
    
    20
    
    
    
    988
    
    
    
    39
    
    
    
    30
 
 (h)
    
    Includes disposal of Palmci plantations (see note 26 on page 128).    Unilever Annual Report on Form 20-F
2008 101




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##### Table of Contents



12 Deferred taxation
  million
    
    
     million
    
    
     million
    
    
     millionAs at 1
    
    
    
    
    
    
    
    
    
    
    As at 31January
    
    
    Income
    
    
    
    
    
    
    DecemberMovements during the year
    
    2008
    
    
    statement
    
    
    Equity(a)
    
    
    2008Pensions and similar obligations
    
    
    200
    
    
    
    (177
    )
    
    
    786
    
    
    
    809Provisions
    
    
    786
    
    
    
    (103
    )
    
    
    (71
    )
    
    
    612Goodwill and intangible assets
    
    
    (780
    )
    
    
    (34
    )
    
    
    (9
    )
    
    
    (823
    )Accelerated tax depreciation
    
    
    (598
    )
    
    
    (2
    )
    
    
    45
    
    
    
    (555
    )Tax losses
    
    
    84
    
    
    
    (7
    )
    
    
    28
    
    
    
    105Fair value gains
    
    
    (8
    )
    
    
    (5
    )
    
    
    7
    
    
    
    (6
    )Fair value losses
    
    
    8
    
    
    
    (3
    )
    
    
    35
    
    
    
    40Share-based payments
    
    
    101
    
    
    
    57
    
    
    
    (58
    )
    
    
    100Other
    
    
    (3
    )
    
    
    
    
    
    
    (1
    )
    
    
    (4
    )(210
    )
    
    
    (274
    )
    
    
    762
    
    
    
    278
 
 (a)
    
    Of the total movement in equity of 762 million, 87 million arises as a result of currency
retranslation and 8 million as a result of acquisitions and disposals.      million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionAssets
    
    
    Assets
    
    
    Liabilities
    
    
    Liabilities
    
    
    Total
    
    
    TotalDeferred tax assets and liabilities
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Pensions and similar obligations
    
    
    887
    
    
    
    514
    
    
    
    (78
    )
    
    
    (314
    )
    
    
    809
    
    
    
    200Provisions
    
    
    619
    
    
    
    750
    
    
    
    (7
    )
    
    
    36
    
    
    
    612
    
    
    
    786Goodwill and intangible assets
    
    
    (345
    )
    
    
    (223
    )
    
    
    (478
    )
    
    
    (557
    )
    
    
    (823
    )
    
    
    (780
    )Accelerated tax depreciation
    
    
    (368
    )
    
    
    (234
    )
    
    
    (187
    )
    
    
    (364
    )
    
    
    (555
    )
    
    
    (598
    )Tax losses
    
    
    103
    
    
    
    85
    
    
    
    2
    
    
    
    (1
    )
    
    
    105
    
    
    
    84Fair value gains
    
    
    
    
    
    
    (3
    )
    
    
    (6
    )
    
    
    (5
    )
    
    
    (6
    )
    
    
    (8
    )Fair value losses
    
    
    43
    
    
    
    8
    
    
    
    (3
    )
    
    
    
    
    
    
    40
    
    
    
    8Share-based payments
    
    
    100
    
    
    
    101
    
    
    
    
    
    
    
    
    
    
    
    100
    
    
    
    101Other
    
    
    29
    
    
    
    5
    
    
    
    (33
    )
    
    
    (8
    )
    
    
    (4
    )
    
    
    (3
    )1 068
    
    
    
    1 003
    
    
    
    (790
    )
    
    
    (1 213
    )
    
    
    278
    
    
    
    (210
    )Of which deferred tax to be recovered/(settled) after
more than 12 months
    
    
    736
    
    
    
    484
    
    
    
    (717
    )
    
    
    (1 111
    )
    
    
    19
    
    
    
    (627
    )
 
 13 Inventories
  million
    
    
     millionInventories
    
    2008
    
    
    2007Raw materials and consumables
    
    
    1 437
    
    
    
    1 406Finished goods and goods for resale
    
    
    2 452
    
    
    
    2 4883 889
    
    
    
    3 894
   102 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Unilever Group
  
 14 Trade and other receivables
  million
    
    
     millionTrade and other receivables
    
    2008
    
    
    2007Due within one yearTrade receivables
    
    
    2 788
    
    
    
    2 965Prepayments and accrued income
    
    
    380
    
    
    
    467Other receivables
    
    
    655
    
    
    
    7623 823
    
    
    
    4 194
   million
    
    
     millionAgeing of trade receivables
    
    2008
    
    
    2007Total trade receivables
    
    
    2 908
    
    
    
    3 112Less impairment provision for trade receivables
    
    
    (120
    )
    
    
    (147
    )2 788
    
    
    
    2 965Of which:Not overdue
    
    
    2 182
    
    
    
    2 240Past due less than three months
    
    
    499
    
    
    
    649Past due more than three months but less than six months
    
    
    100
    
    
    
    85Past due more than six months but less than one year
    
    
    52
    
    
    
    57Past due more than one year
    
    
    75
    
    
    
    81Impairment provision for trade receivables
    
    
    (120
    )
    
    
    (147
    )2 788
    
    
    
    2 965
  million
    
    
     millionImpairment provision for trade and other receivables  movements during the year
    
    2008
    
    
    20071 January
    
    
    176
    
    
    
    180Charged to current year income statement
    
    
    36
    
    
    
    39Reductions/releases
    
    
    (37
    )
    
    
    (40
    )Currency retranslation
    
    
    (10
    )
    
    
    (3
    )31 December
    
    
    165
    
    
    
    176
  
 15 Cash and cash equivalents and other financial assets
  million
    
    
     millionCash and cash equivalents and other financial assets
    
    2008
    
    
    2007Cash and cash equivalentsCash at bank and in hand
    
    
    587
    
    
    
    507Short-term deposits with maturity of less than three months
    
    
    1 974
    
    
    
    500Other cash equivalents(a):
    
    
    
    
    
    
    912 561
    
    
    
    1 098Other financial assets(b)Held-to-maturity investments
    
    
    13
    
    
    
    15Loans and receivables
    
    
    
    
    
    
    2Available-for-sale financial assets
    
    
    
    
    
    
    91Financial assets at fair value through profit or loss(c)
    
    
    619
    
    
    
    108632
    
    
    
    216Of which:Listed
    
    
    31
    
    
    
    41Unlisted
    
    
    601
    
    
    
    175632
    
    
    
    216
 
 (a)
    
    Other cash equivalents are wholly comprised of available-for-sale financial assets.(b)
    
    Other financial assets include government securities, A minus or higher rated money and capital
market instruments and derivatives.(c)
    
    Financial assets at fair value through profit and loss
include derivatives amounting to 597 million (2007: 78 million). Unilever Annual Report on Form 20-F 2008 103




---



##### Table of Contents



Unilever Group
  15 Cash and cash equivalents and other financial assets
  million
    
    
     million
    
    
     millionCash and cash equivalents included in the cash flow statement
    
    2008
    
    
    2007
    
    
    2006Cash and cash equivalents as per balance sheet
    
    
    2 561
    
    
    
    1 098
    
    
    
    1 039Bank overdrafts
    
    
    (201
    )
    
    
    (197
    )
    
    
    (329
    )2 360
    
    
    
    901
    
    
    
    710
 Interest rate profile and currency analysis of financial assets
    million
    
    
    
    
    
    
    
    
    
    
     million
    
    
    
    
    
    
     millionFixed
    
    
    Fixed
    
    
    Fixed
    
    
    Floating
    
    
    Floatingrate
    
    
    rate
    
    
    rate
    
    
    rate
    
    
    rate
    
    
    TotalAmount
    
    
    Average
    
    
    Weighted
    
    
    
    
    
    
    Interestof fixing
    
    
    interest rate
    
    
    average
    
    
    
    
    
    
    rate forfor following
    
    
    for following
    
    
    fixing
    
    
    
    
    
    
    followingyear
    
    
    year
    
    
    period
    
    
    
    
    
    
    yearAssets  2008Euro
    
    
    142
    
    
    
    5.9
    %
    
    0.6 years
    
    
    6 882
    
    
    
    2.3
    %
    
    
    7 024
    (a)Sterling
    
    
    1
    
    
    
    4.5
    %
    
    0.1 years
    
    
    26
    
    
    
    1.7
    %
    
    
    27US dollar
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29
    
    
    
    1.3
    %
    
    
    29Indian rupee
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    187
    
    
    
    11.4
    %
    
    
    187Brazilian real
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40
    
    
    
    13.7
    %
    
    
    40Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    563
    
    
    
    7.1
    %
    
    
    563143
    
    
    
    
    
    
    
    
    
    
    
    7 727
    
    
    
    
    
    
    
    7 870Euro leg of currency derivatives mainly relating to intra-group loans(a)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4 677
    )Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3 193
    (c)Assets  2007Euro
    
    
    12
    
    
    
    4.6
    %
    
    0.5 years
    
    
    358
    
    
    
    4.5
    %
    
    
    370Sterling
    
    
    541
    
    
    
    6.2
    %
    
    0.7 years
    
    
    1 250
    
    
    
    5.3
    %
    
    
    1 791
    (b)US dollar
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    3.4
    %
    
    
    4Indian rupee
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    205
    
    
    
    9.0
    %
    
    
    205Brazilian real
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    151
    
    
    
    11.2
    %
    
    
    151Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    577
    
    
    
    7.5
    %
    
    
    577553
    
    
    
    
    
    
    
    
    
    
    
    2 545
    
    
    
    
    
    
    
    3 098Sterling leg of currency derivatives mainly relating to
intra-group loans(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 784
    )Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 314
    (c)
 
 a)
    
    Includes the euro leg of the currency derivatives relating to intra-group loans, amounting to 4
677 million for 2008. These derivatives create a euro interest rate exposure. However, to reconcile
the total assets with the balance sheet, the total value is eliminated again. The other leg of the
currency derivatives is shown in note 16 on page 107 as part of the interest rate profile of financial
liabilities.b)
    
    Includes the sterling leg of the currency derivatives mainly relating to
intra-group loans, amounting to 1 784 million for 2007. These derivatives create a sterling
interest rate exposure. However to reconcile the total assets with the balance sheet, the total
value is eliminated again. The other leg of the currency is shown in note 16 on page 107 as part of the
interest rate profile of financial liabilities.c)
    
    Includes fair value of financial
liability-related derivatives amounting to 597 million (2007: 78 million). 104 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Unilever Group
  
 16 Financial liabilities
  million
    
    
     millionFinancial liabilities
    
    2008
    
    
    2007Preference shares
    
    
    124
    
    
    
    124Bank loans and overdrafts
    
    
    1 377
    
    
    
    1 212Bonds and other loansAt amortised cost
    
    
    8 477
    
    
    
    7 907Subject to fair value hedge accounting
    
    
    801
    
    
    
    Finance lease creditors
    
    
    207
    
    
    
    311Derivatives
    
    
    219
    
    
    
    9511 205
    
    
    
    9 649
   million
    
    
     millionFinancial liabilities  additional details
    
    2008
    
    
    2007The repayments fall due as followsWithin one year:Bank loans and overdrafts
    
    
    746
    
    
    
    785Bonds and other loans
    
    
    3 853
    
    
    
    3 239Finance lease creditors
    
    
    24
    
    
    
    65Derivatives
    
    
    219
    
    
    
    77Total due within one year
    
    
    4 842
    
    
    
    4 166After one year but within two years
    
    
    1 364
    
    
    
    1 087After two years but within three years
    
    
    751
    
    
    
    1 325After three years but within four years
    
    
    948
    
    
    
    34After four years but within five years
    
    
    830
    
    
    
    797After five years
    
    
    2 470
    
    
    
    2 240Total due after more than one year
    
    
    6 363
    
    
    
    5 483Secured financial liabilities
    
    
    34
    
    
    
    5Of which secured against property, plant and equipment
    
    
    
    
    
    
    
  million
    
    
    
    
    
    
    
    
    
    
     million
    
    
     million
    
    
     millionIssued,Number
    
    
    
    
    
    
    Nominal
    
    
    Number
    
    
    called upof shares
    
    
    
    
    
    
    value
    
    
    of shares
    
    
    and fully
    
    
    Statutoryauthorised
    
    
    Authorised
    
    
    per share
    
    
    issued
    
    
    paid
    
    
    Reserve
    
    
    TotalPreference shares NV as at 31 December 20087% Cumulative Preference
    
    
    75 000
    
    
    
    32
    
    
    
    428.57
    
    
    
    29 000
    
    
    
    12
    
    
    
    1
    
    
    
    136% Cumulative Preference(a)
    
    
    200 000
    
    
    
    86
    
    
    
    428.57
    
    
    
    161 060
    
    
    
    69
    
    
    
    4
    
    
    
    734% Cumulative Preference
    
    
    750 000
    
    
    
    32
    
    
    
    42.86
    
    
    
    750 000
    
    
    
    32
    
    
    
    2
    
    
    
    34Share premium
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    4150
    
    
    
    
    
    
    
    
    
    
    
    117
    
    
    
    7
    
    
    
    124Preference shares NV as at 31 December 20077% Cumulative Preference
    
    
    75 000
    
    
    
    32
    
    
    
    428.57
    
    
    
    29 000
    
    
    
    12
    
    
    
    1
    
    
    
    136% Cumulative Preference(a)
    
    
    200 000
    
    
    
    86
    
    
    
    428.57
    
    
    
    161 060
    
    
    
    69
    
    
    
    4
    
    
    
    734% Cumulative Preference
    
    
    750 000
    
    
    
    32
    
    
    
    42.86
    
    
    
    750 000
    
    
    
    32
    
    
    
    2
    
    
    
    34Share premium
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    4150
    
    
    
    
    
    
    
    
    
    
    
    117
    
    
    
    7
    
    
    
    124
 
 (a)
    
    The 6% cumulative preference shares are traded in the market in units of one tenth of their
nominal value.   Unilever Annual Report on Form 20-F 2008 105




---



##### Table of Contents



Unilever Group
  16 Financial liabilities
 Additional details
   million
    
    
     million
    
    
     million
    
    
     millionAmortised
    
    
    Fair
    
    
    Amortised
    
    
    Faircost
    
    
    value
    
    
    cost
    
    
    value2008
    
    
    2008
    (a)
    
    2007
    
    
    2007
    (a)Unilever N.V.Floating rate note 2009 ()
    
    
    750
    
    
    
    
    
    
    
    750
    
    
    
    3.625% notes 2011 (Swiss francs)
    
    
    267
    
    
    
    
    
    
    
    
    
    
    
    3.125% notes 2012 (Swiss francs)
    
    
    167
    
    
    
    
    
    
    
    
    
    
    
    4.625% Bonds 2012 ()
    
    
    747
    
    
    
    
    
    
    
    747
    
    
    
    4.875% Bonds 2013 ()
    
    
    
    
    
    
    801
    
    
    
    
    
    
    
    3.500% notes 2015 (Swiss francs)
    
    
    232
    
    
    
    
    
    
    
    
    
    
    
    3.375% Bonds 2015 ()
    
    
    747
    
    
    
    
    
    
    
    747
    
    
    
    Other
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    Total Unilever N.V.
    
    
    2 932
    
    
    
    801
    
    
    
    2 244
    
    
    
    Other group companiesNetherlandsCommercial paper ()
    
    
    811
    
    
    
    
    
    
    
    1 526
    
    
    
    Commercial paper (£)
    
    
    
    
    
    
    
    
    
    
    45
    
    
    
    Commercial paper (US $)
    
    
    308
    
    
    
    
    
    
    
    487
    
    
    
    Commercial paper (Swiss francs)
    
    
    20
    
    
    
    
    
    
    
    29
    
    
    
    Commercial paper (Canadian $)
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    Commercial paper (Japanese yen)
    
    
    12
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    115
    
    
    
    
    
    
    
    
    
    
    
    United StatesFloating rate extendible note 2009 (US $) (b)
    
    
    49
    
    
    
    
    
    
    
    340
    
    
    
    7.125% Bonds 2010 (US $)
    
    
    1 230
    
    
    
    
    
    
    
    1 184
    
    
    
    7.000% Bonds 2017 (US $)
    
    
    103
    
    
    
    
    
    
    
    99
    
    
    
    7.250% Bonds 2026 (US $)
    
    
    202
    
    
    
    
    
    
    
    195
    
    
    
    6.625% Bonds 2028 (US $)
    
    
    155
    
    
    
    
    
    
    
    149
    
    
    
    5.900% Bonds 2032 (US $)
    
    
    693
    
    
    
    
    
    
    
    668
    
    
    
    5.600% Bonds 2097 (US $)
    
    
    64
    
    
    
    
    
    
    
    62
    
    
    
    Commercial paper (US $)
    
    
    1 705
    
    
    
    
    
    
    
    732
    
    
    
    Other
    
    
    9
    
    
    
    
    
    
    
    8
    
    
    
    South Africa10.200% Bonds 2008 (South African rand)
    
    
    
    
    
    
    
    
    
    
    100
    
    
    
    Commercial paper (South African rand)
    
    
    55
    
    
    
    
    
    
    
    
    
    
    
    Other countries
    
    
    14
    
    
    
    
    
    
    
    27
    
    
    
    Total other group companies
    
    
    5 545
    
    
    
    
    
    
    
    5 663
    
    
    
    Total bonds and other loans
    
    
    8 477
    
    
    
    801
    
    
    
    7 907
    
    
    
    
 
 (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.(b)
    
    Wholly repayable in 2009. 106 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



16 Financial liabilities
 Interest rate
  Interest rate profile and currency analysis of financial liabilities
   million
    
    
    
    
    
    
    
    
    
    
     million
    
    
    
    
    
    
     millionFixed
    
    
    Fixed
    
    
    Fixed
    
    
    Floating
    
    
    Floatingrate
    
    
    rate
    
    
    rate
    
    
    rate
    
    
    rate
    
    
    TotalAmount
    
    
    Average
    
    
    Weighted
    
    
    
    
    
    
    Interestof fixing
    
    
    interest rate
    
    
    average
    
    
    
    
    
    
    rate forfor following
    
    
    for following
    
    
    fixing
    
    
    
    
    
    
    followingyear
    
    
    year
    
    
    period
    
    
    
    
    
    
    yearLiabilities  2008Euro(c)
    
    
    1 794
    
    
    
    4.3
    %
    
    4.8 years
    
    
    2 551
    
    
    
    2.3
    %
    
    
    4 345Sterling
    
    
    124
    
    
    
    6.4
    %
    
    18.8 years
    
    
    1 305
    
    
    
    1.7
    %
    
    
    1 429US dollar
    
    
    2 608
    
    
    
    6.8
    %
    
    12.8 years
    
    
    4 693
    
    
    
    1.3
    %
    
    
    7 301Swedish krona
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    654
    
    
    
    2.6
    %
    
    
    654Swiss francs
    
    
    668
    
    
    
    3.6
    %
    
    4.1 years
    
    
    (56
    )
    
    
    1.1
    %
    
    
    612Japanese yen
    
    
    147
    
    
    
    1.0
    %
    
    0.5 years
    
    
    264
    
    
    
    1.1
    %
    
    
    411Thai baht
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    196
    
    
    
    2.3
    %
    
    
    196Australian dollar
    
    
    4
    
    
    
    6.4
    %
    
    6.6 years
    
    
    162
    
    
    
    4.5
    %
    
    
    166Other
    
    
    66
    
    
    
    13.0
    %
    
    2.2 years
    
    
    702
    
    
    
    7.1
    %
    
    
    7685 411
    
    
    
    
    
    
    
    
    
    
    
    10 471
    
    
    
    
    
    
    
    15 882Foreign currency leg of currency derivatives relating to intra-group loans(d)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4 677
    )Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11 205
    (f)Liabilities  2007Euro(c)
    
    
    2 073
    
    
    
    4.3
    %
    
    5.0 years
    
    
    980
    
    
    
    4.5
    %
    
    
    3 053Sterling
    
    
    168
    
    
    
    6.4
    %
    
    19.8 years
    
    
    98
    
    
    
    5.3
    %
    
    
    266US dollar
    
    
    3 259
    
    
    
    6.2
    %
    
    10.9 years
    
    
    1 853
    
    
    
    3.4
    %
    
    
    5 112Swedish krona
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    741
    
    
    
    4.9
    %
    
    
    741Swiss francs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    699
    
    
    
    3.1
    %
    
    
    699Japanese yen
    
    
    240
    
    
    
    1.0
    %
    
    1.5 years
    
    
    99
    
    
    
    1.1
    %
    
    
    339Thai baht
    
    
    139
    
    
    
    3.5
    %
    
    0.9 years
    
    
    43
    
    
    
    4.2
    %
    
    
    182Australian dollar
    
    
    3
    
    
    
    5.3
    %
    
    12.0 years
    
    
    192
    
    
    
    7.7
    %
    
    
    195Other
    
    
    90
    
    
    
    11.8
    %
    
    2.5 years
    
    
    756
    
    
    
    6.7
    %
    
    
    8465 972
    
    
    
    
    
    
    
    
    
    
    
    5 461
    
    
    
    
    
    
    
    11 433Euro leg of currency derivatives mainly relating to intra-group loans(e)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 784
    )Total
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9 649
    (f)
 
 (c)
    
    Euro financial liabilities include 124 million preference shares that provide for a fixed
preference dividend.(d)
    
    Includes the foreign currency leg of the currency derivatives relating to our intra-group
loans, amounting to 4 677 million for 2008.
These derivatives create an interest rate exposure in mainly sterling and US dollar. However to
reconcile the total 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 104 as part of the interest
rate profile of financial assets.(e)
    
    Includes the euro leg of the currency derivatives mainly relating to our intra-group loans,
amounting to 1 784 million for 2007.
These derivatives create an interest rate exposure in euro. However, to reconcile the total
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 104 as part of the interest rate profile of financial
assets.(f)
    
    Includes finance lease creditors amounting to 207 million (2007: 311 million) and fair value
of financial liability-related derivatives amounting to 219 million (2007: 95 million). Unilever Annual Report on Form 20-F
2008 107




---



##### Table of Contents



17 Financial instruments and treasury risk management
 Turmoil in financial markets: impact on Treasury
    
    
    In order to reduce our refinance risk, we actively structured out our commercial paper
maturity profile;
    
    Throughout the year we had good access to commercial paper markets (particularly in the US at
significant discounts to Libor);
    
    During the calendar year we completed three bond issues, for a total amount of 1.4 billion,
all at competitive rates; and
    
    As the business successfully managed year-end working capital positions, Unilever closed the
year with a cash balance of around 2.6 billion, including 0.6 billion from proceeds of
disposal of the Bertolli olive oil business received at the year end.
       Treasury Risk Management
  Currency risks
   Interest rate risks
   108 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



17 Financial instruments and treasury risk management
 Liquidity risk
    
    
    revolving 364-day bilateral credit facilities of in aggregate US $4 230 million (2007: US $3 630
million) out of which US $3 675 million (2007: US $3 630 million) with a 364-day term out;
    
    revolving 364-day notes commitments of US $200 million (2007: 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 $1 775 million (2007: US $1 720
million), under which the underwriting banks agree, subject to certain conditions, to
subscribe for notes with maturities of up to three years.
      million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionNetcarryingDue
    
    
    Due
    
    
    Due
    
    
    Due
    
    
    
    
    
    
    
    
    
    
    amount asDue
    
    
    between
    
    
    between
    
    
    between
    
    
    between
    
    
    Due
    
    
    
    
    
    
    shown inwithin
    
    
    1 and
    
    
    2 and
    
    
    3 and
    
    
    4 and
    
    
    after
    
    
    
    
    
    
    balanceUndiscounted cash flows
    
    1 year
    
    
    2 years
    
    
    3 years
    
    
    4 years
    
    
    5 years
    
    
    5 years
    
    
    Total
    
    
    sheet2008Non-derivative financial liabilities:Financial liabilities excluding related derivatives
and finance lease creditors
    
    
    (4 653
    )
    
    
    (1 532
    )
    
    
    (577
    )
    
    
    (940
    )
    
    
    (750
    )
    
    
    (2 387
    )
    
    
    (10 839
    )
    
    
    (10 779
    )Interest on financial liabilities
    
    
    (343
    )
    
    
    (313
    )
    
    
    (210
    )
    
    
    (197
    )
    
    
    (157
    )
    
    
    (1 608
    )
    
    
    (2 828
    )Finance lease creditors including related finance cost
    
    
    (37
    )
    
    
    (36
    )
    
    
    (26
    )
    
    
    (21
    )
    
    
    (19
    )
    
    
    (242
    )
    
    
    (381
    )
    
    
    (207
    )Trade payables and other liabilities
excluding social security and sundry taxes(a)
    
    
    (7 483
    )
    
    
    (175
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7 658
    )
    
    
    (7 658
    )(12 516
    )
    
    
    (2 056
    )
    
    
    (813
    )
    
    
    (1 158
    )
    
    
    (926
    )
    
    
    (4 237
    )
    
    
    (21 706
    )Derivative financial liabilities:Interest rate derivatives:Derivative contracts  receipts
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4Derivative contracts  payments
    
    
    
    
    
    
    (4
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4
    )Foreign exchange derivatives:Derivative contracts  receipts
    
    
    3 510
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3 510Derivative contracts  payments
    
    
    (3 772
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3 772
    )(262
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (262
    )
    
    
    (262)
    (b)31 December
    
    
    (12 778
    )
    
    
    (2 056
    )
    
    
    (813
    )
    
    
    (1 158
    )
    
    
    (926
    )
    
    
    (4 237
    )
    
    
    (21 968
    )
 
 (a)
    
    See note 18 on page 114.(b)
    
    Includes financial liability-related derivatives amounting to (219) million (2007: (95)
million). Unilever Annual Report on Form 20-F
2008 109




---



##### Table of Contents



Unilever Group
  17 Financial instruments and treasury risk management
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionNetcarryingDue
    
    
    Due
    
    
    Due
    
    
    Due
    
    
    
    
    
    
    
    
    
    
    amount asDue
    
    
    between
    
    
    between
    
    
    between
    
    
    between
    
    
    Due
    
    
    
    
    
    
    shown inwithin
    
    
    1 and
    
    
    2 and
    
    
    3 and
    
    
    4 and
    
    
    after
    
    
    
    
    
    
    balanceUndiscounted cash flows
    
    1 year
    
    
    2 years
    
    
    3 years
    
    
    4 years
    
    
    5 years
    
    
    5 years
    
    
    Total
    
    
    sheet2007Non derivative financial liabilities:Financial liabilities excluding related derivatives
and finance lease creditors
    
    
    (4 101
    )
    
    
    (1 060
    )
    
    
    (1 314
    )
    
    
    
    
    
    
    (750
    )
    
    
    (2 127
    )
    
    
    (9 352
    )
    
    
    (9 243
    )Interest on financial liabilities
    
    
    (304
    )
    
    
    (270
    )
    
    
    (236
    )
    
    
    (109
    )
    
    
    (109
    )
    
    
    (1 698
    )
    
    
    (2 726
    )Finance lease creditors including related finance cost
    
    
    (81
    )
    
    
    (41
    )
    
    
    (36
    )
    
    
    (27
    )
    
    
    (21
    )
    
    
    (314
    )
    
    
    (520
    )
    
    
    (311
    )Trade payables and other liabilities
excluding social security and sundry taxes(a)
    
    
    (7 643
    )
    
    
    (204
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (7 847
    )
    
    
    (7 847
    )(12 129
    )
    
    
    (1 575
    )
    
    
    (1 586
    )
    
    
    (136
    )
    
    
    (880
    )
    
    
    (4 139
    )
    
    
    (20 445
    )Derivative financial liabilities:Interest rate derivatives:Derivative contracts - receipts
    
    
    6
    
    
    
    4
    
    
    
    3
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    15Derivative contracts - payments
    
    
    (9
    )
    
    
    (4
    )
    
    
    (3
    )
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    (18
    )Foreign exchange derivatives:Derivative contracts - receipts
    
    
    5 315
    
    
    
    22
    
    
    
    22
    
    
    
    22
    
    
    
    23
    
    
    
    
    
    
    
    5 404Derivative contracts - payments
    
    
    (5 411
    )
    
    
    (26
    )
    
    
    (26
    )
    
    
    (26
    )
    
    
    (26
    )
    
    
    
    
    
    
    (5 515
    )(99
    )
    
    
    (4
    )
    
    
    (4
    )
    
    
    (4
    )
    
    
    (3
    )
    
    
    
    
    
    
    (114
    )
    
    
    (116
    )(b)31 December
    
    
    (12 228
    )
    
    
    (1 579
    )
    
    
    (1 590
    )
    
    
    (140
    )
    
    
    (883
    )
    
    
    (4 139
    )
    
    
    (20 559
    )
 
 (a)
    
    See note 18 on page 114.(b)
    
    Includes financial liability-related derivatives amounting to (219) million (2007: (95) million). Credit risk on banks and received collateral
    
 Derivative financial instruments
   
    
    cash flow hedges used to hedge the risk on future foreign currency cash flows, floating interest
rate cash flows, and the price risk on future purchases of raw materials;
    
    fair value hedges used to convert the fixed interest rate on financial liabilities into a
floating interest rate;
    
    net investment hedges used to hedge the investment value of our foreign subsidiaries; and
    
    natural hedges used to hedge the risk on exposures that are on the balance sheet. No hedge
accounting is applied.
   110 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  17 Financial instruments and treasury risk management
 Cash flow hedges
           
   million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionDue
    
    
    Due
    
    
    Due
    
    
    Due
    
    
    Due
    
    
    Duewithin
    
    
    between
    
    
    between
    
    
    between
    
    
    between
    
    
    after1 year
    
    
    1-2 years
    
    
    2-3 years
    
    
    3-4 years
    
    
    4-5 years
    
    
    5 years
    
    
    Total2008Foreign exchange cash flows
    
    
    (200
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (200
    )Interest rate cash flows
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Commodity contracts cash flows
    
    
    (121
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (121
    )2007Foreign exchange cash flows
    
    
    (235
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (235
    )Interest rate cash flows
    
    
    (18
    )
    
    
    (19
    )
    
    
    (21
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (58
    )Commodity contracts cash flows
    
    
    (310
    )
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (311
    )
 Fair Value hedges
  
 Net investment hedges
   million
    
    
     million
    
    
     million
    
    
     millionAssets
    
    
    Assets
    
    
    Liabilities
    
    
    LiabilitiesFair values of derivatives used as hedges of net investments in foreign entities
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007CurrentForeign exchange derivatives
    
    
    28
    
    
    
    
    
    
    
    257
    
    
    
    337
    
  Natural hedges
    million
    
    
     million
    
    
     million
    
    
     millionAssets
    
    
    Assets
    
    
    Liabilities
    
    
    LiabilitiesFair values of
natural hedges
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007CurrentInterest rate derivatives
    
    
    1
    
    
    
    1
    
    
    
    
    
    
    
    3Cross-currency swaps
    
    
    9
    
    
    
    
    
    
    
    
    
    
    
    Foreign exchange derivatives
    
    
    648
    
    
    
    377
    
    
    
    115
    
    
    
    41658
    
    
    
    378
    
    
    
    115
    
    
    
    44Non-currentInterest rate derivatives
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Cross-currency swaps
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    
    
    
    
    18658
    
    
    
    378
    
    
    
    115
    
    
    
    62
 Unilever Annual Report on Form 20-F 2008 111




---



##### Table of Contents



Unilever Group
  17 Financial instruments and treasury risk management
        
 Sensitivity to not applying hedge accounting
  Embedded derivatives
  Fair values of financial assets and financial liabilities
   million
    
    
     million
    
    
     million
    
    
     millionFair
    
    
    Fair
    
    
    Carrying
    
    
    Carryingvalue
    
    
    value
    
    
    amount
    
    
    amount2008
    
    
    2007
    
    
    2008
    
    
    2007Financial assetsOther non-current assets
    
    
    891
    
    
    
    733
    
    
    
    904
    
    
    
    738Cash and cash equivalents
    
    
    2 561
    
    
    
    1 098
    
    
    
    2 561
    
    
    
    1 098Other financial assets
    
    
    35
    
    
    
    138
    
    
    
    35
    
    
    
    138Derivatives related to financial liabilities
    
    
    597
    
    
    
    78
    
    
    
    597
    
    
    
    784 084
    
    
    
    2 047
    
    
    
    4 097
    
    
    
    2 052Financial liabilitiesBank loans and overdrafts
    
    
    (1 377
    )
    
    
    (1 212
    )
    
    
    (1 377
    )
    
    
    (1 212
    )Bonds and other loans
    
    
    (9 488
    )
    
    
    (8 073
    )
    
    
    (9 278
    )
    
    
    (7 907
    )Finance lease creditors
    
    
    (222
    )
    
    
    (313
    )
    
    
    (207
    )
    
    
    (311
    )Preference shares
    
    
    (102
    )
    
    
    (114
    )
    
    
    (124
    )
    
    
    (124
    )Derivatives related to financial liabilities
    
    
    (219
    )
    
    
    (95
    )
    
    
    (219
    )
    
    
    (95
    )(11 408
    )
    
    
    (9 807
    )
    
    
    (11 205
    )
    
    
    (9 649
    )
  Commodity contracts
  112 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  17 Financial instruments and treasury risk management
 Capital management
  
    
    appropriate access to equity and debt markets;
    
    sufficient flexibility for acquisitions that we fund out of current cash flows;
    
    A+/A1 long-term credit rating;
    
    A1/P1 short-term credit rating;
    
    sufficient resilience against economic and financial turmoil; and
    
    optimal weighted average cost of capital, given the constraints above.
     Income statement sensitivity to changes in foreign exchange rates
   
 Income statement sensitivity to changes in interest rate
   Sensitivity to a reasonably possibleone percentage point change infloating rates as at 31 December million
    
     million2008
    
    
    2007Funds
    
    
    77
    
    
    
    25Debt
    
    
    (105
    )
    
    
    (55
    )
 Net investment hedges: sensitivity relating to changes in foreign exchange rates
      
 Cash flow hedges: sensitivity relating to changes in interest rates and foreign exchange rates
  Unilever Annual Report on Form 20-F 2008 113




---



##### Table of Contents



Unilever Group
  
 18 Trade payables and other liabilities
  million
    
    
     millionTrade and other payables
    
    2008
    
    
    2007Due within one yearTrade payables
    
    
    3 873
    
    
    
    3 690Accruals
    
    
    2 720
    
    
    
    2 970Social security and sundry taxes
    
    
    341
    
    
    
    374Others
    
    
    890
    
    
    
    9837 824
    
    
    
    8 017Due after more than one yearAccruals
    
    
    102
    
    
    
    138Others
    
    
    73
    
    
    
    66175
    
    
    
    204Total trade payables and other liabilities
    
    
    7 999
    
    
    
    8 221
  
 19 Provisions
  million
    
    
     millionProvisions
    
    2008
    
    
    2007Due within one yearRestructuring provisions
    
    
    413
    
    
    
    518Preference shares provision
    
    
    
    
    
    
    3Disputed indirect taxes
    
    
    232
    
    
    
    269Other provisions
    
    
    112
    
    
    
    178757
    
    
    
    968Due after one yearRestructuring provisions
    
    
    91
    
    
    
    63Legal provisions
    
    
    60
    
    
    
    55Disputed indirect taxes
    
    
    312
    
    
    
    422Net liability of associate
    
    
    31
    
    
    
    30Other provisions
    
    
    152
    
    
    
    124646
    
    
    
    694Total restructuring and other provisions
    
    
    1 403
    
    
    
    1 662
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionPreferenceRestructuring
    
    
    Legal
    
    
    shares
    
    
    Disputed
    
    
    Net liability
    
    
    OtherMovements during 2008
    
    provisions
    
    
    provisions
    
    
    provision
    
    
    indirect taxes
    
    
    of associate
    
    
    provisions
    
    
    Total1 January 2008
    
    
    581
    
    
    
    55
    
    
    
    3
    
    
    
    691
    
    
    
    30
    
    
    
    302
    
    
    
    1 662Disposal of group companies
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7
    
    
    
    8Income statement:New charges
    
    
    343
    
    
    
    61
    
    
    
    
    
    
    
    136
    
    
    
    
    
    
    
    31
    
    
    
    571Releases
    
    
    (54
    )
    
    
    (5
    )
    
    
    (3
    )
    
    
    (94
    )
    
    
    
    
    
    
    (37
    )
    
    
    (193
    )Utilisation
    
    
    (343
    )
    
    
    (51
    )
    
    
    
    
    
    
    (38
    )
    
    
    
    
    
    
    (35
    )
    
    
    (467
    )Currency retranslation
    
    
    (24
    )
    
    
    
    
    
    
    
    
    
    
    (151
    )
    
    
    1
    
    
    
    (4
    )
    
    
    (178
    )31 December 2008
    
    
    504
    
    
    
    60
    
    
    
    
    
    
    
    544
    
    
    
    31
    
    
    
    264
    
    
    
    1 403
    114 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  
 20 Pensions and similar obligations
 Description of plans
   Exposure to risks
  
 Investment strategy
  Assumptions
  31 December 2008
    
    
    31 December 2007
    
    
    31 December 2006
    
    
    31 December 2005Other
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    OtherPrincipal
    
    
    post-
    
    
    Principal
    
    
    post-
    
    
    Principal
    
    
    post-
    
    
    Principal
    
    
    post-defined
    
    
    employ-
    
    
    defined
    
    
    employ-
    
    
    defined
    
    
    employ-
    
    
    defined
    
    
    employ-benefit
    
    
    ment
    
    
    benefit
    
    
    ment
    
    
    benefit
    
    
    ment
    
    
    benefit
    
    
    mentpension
    
    
    benefit
    
    
    pension
    
    
    benefit
    
    
    pension
    
    
    benefit
    
    
    pension
    
    
    benefitplans
    
    
    plans
    
    
    plans
    
    
    plans
    
    
    plans
    
    
    plans
    
    
    plans
    
    
    plansDiscount rate
    
    
    6.1%
    
    
    
    5.8%
    
    
    
    5.8%
    
    
    
    6.1%
    
    
    
    5.1%
    
    
    
    5.9%
    
    
    
    4.6%
    
    
    
    5.5%Inflation
    
    
    2.4%
    
    
    
    n/a
    
    
    
    2.6%
    
    
    
    n/a
    
    
    
    2.5%
    
    
    
    n/a
    
    
    
    2.4%
    
    
    
    n/aRate of increase in salaries
    
    
    3.5%
    
    
    
    4.0%
    
    
    
    3.8%
    
    
    
    4.0%
    
    
    
    3.7%
    
    
    
    4.0%
    
    
    
    3.5%
    
    
    
    4.0%Rate of increase for pensions
in payment
    
    
    2.4%
    
    
    
    n/a
    
    
    
    2.5%
    
    
    
    n/a
    
    
    
    2.3%
    
    
    
    n/a
    
    
    
    2.1%
    
    
    
    n/aRate of increase for pensions in
deferment (where provided)
    
    
    2.6%
    
    
    
    n/a
    
    
    
    2.7%
    
    
    
    n/a
    
    
    
    2.7%
    
    
    
    n/a
    
    
    
    2.5%
    
    
    
    n/aLong-term medical cost inflation
    
    
    n/a
    
    
    
    5.0%
    
    
    
    n/a
    
    
    
    5.0%
    
    
    
    n/a
    
    
    
    5.0%
    
    
    
    n/a
    
    
    
    4.8%Expected long-term rates of return:Equities
    
    
    7.4%
    
    
    
    
    
    
    
    8.0%
    
    
    
    
    
    
    
    7.8%
    
    
    
    
    
    
    
    7.4%Bonds
    
    
    4.7%
    
    
    
    
    
    
    
    4.9%
    
    
    
    
    
    
    
    4.9%
    
    
    
    
    
    
    
    4.2%Property
    
    
    5.8%
    
    
    
    
    
    
    
    6.6%
    
    
    
    
    
    
    
    6.3%
    
    
    
    
    
    
    
    5.8%Others
    
    
    5.4%
    
    
    
    
    
    
    
    6.3%
    
    
    
    
    
    
    
    6.3%
    
    
    
    
    
    
    
    6.1%Weighted average asset return
    
    
    6.3%
    
    
    
    
    
    
    
    7.0%
    
    
    
    
    
    
    
    6.9%
    
    
    
    
    
    
    
    6.4%
 Unilever Annual Report on Form 20-F 2008 115




---



##### Table of Contents



Unilever Group
  20 Pensions and similar obligations
   million
    
    
     million1% point
    
    
    1% pointincrease
    
    
    decreaseEffect on total of service and interest cost components
    
    
    2
    
    
    
    (2
    )Effect on total benefit obligation
    
    
    18
    
    
    
    (17
    )
   United Kingdom
    
    
    NetherlandsAssumptions
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Discount rate
    
    
    6.5%
    
    
    
    5.8%
    
    
    
    5.1%
    
    
    
    4.7%
    
    
    
    5.9%
    
    
    
    5.5%
    
    
    
    4.6%
    
    
    
    4.0%Inflation
    
    
    2.8%
    
    
    
    3.0%
    
    
    
    2.9%
    
    
    
    2.7%
    
    
    
    2.0%
    
    
    
    1.9%
    
    
    
    1.9%
    
    
    
    1.8%Rate of increase in salaries
    
    
    4.3%
    
    
    
    4.5%
    
    
    
    4.4%
    
    
    
    4.2%
    
    
    
    2.4%
    
    
    
    2.4%
    
    
    
    2.4%
    
    
    
    2.3%Rate of increase for pensions
in payment
    
    
    2.8%
    
    
    
    3.0%
    
    
    
    2.9%
    
    
    
    2.7%
    
    
    
    2.0%
    
    
    
    1.9%
    
    
    
    1.9%
    
    
    
    1.8%Rate of increase for pensions in
deferment (where provided)
    
    
    2.8%
    
    
    
    3.0%
    
    
    
    2.9%
    
    
    
    2.7%
    
    
    
    2.0%
    
    
    
    1.9%
    
    
    
    1.9%
    
    
    
    1.8%Expected long-term rates of return:Equities
    
    
    7.8%
    
    
    
    8.0%
    
    
    
    8.0%
    
    
    
    7.6%
    
    
    
    7.2%
    
    
    
    8.1%
    
    
    
    7.6%
    
    
    
    7.0%Bonds
    
    
    5.0%
    
    
    
    5.0%
    
    
    
    5.2%
    
    
    
    4.5%
    
    
    
    5.0%
    
    
    
    4.7%
    
    
    
    4.4%
    
    
    
    3.7%Property
    
    
    6.0%
    
    
    
    6.5%
    
    
    
    6.5%
    
    
    
    6.1%
    
    
    
    5.7%
    
    
    
    6.6%
    
    
    
    6.1%
    
    
    
    5.5%Others
    
    
    5.6%
    
    
    
    6.3%
    
    
    
    7.2%
    
    
    
    6.7%
    
    
    
    5.6%
    
    
    
    4.1%
    
    
    
    4.0%
    
    
    
    3.7%Weighted average asset return
    
    
    7.0%
    
    
    
    7.2%
    
    
    
    7.3%
    
    
    
    6.9%
    
    
    
    6.2%
    
    
    
    6.8%
    
    
    
    6.6%
    
    
    
    6.0%United States
    
    
    Germany2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Discount rate
    
    
    5.6%
    
    
    
    5.9%
    
    
    
    5.8%
    
    
    
    5.5%
    
    
    
    5.9%
    
    
    
    5.5%
    
    
    
    4.6%
    
    
    
    4.0%Inflation
    
    
    2.1%
    
    
    
    2.3%
    
    
    
    2.5%
    
    
    
    2.4%
    
    
    
    2.0%
    
    
    
    1.9%
    
    
    
    1.9%
    
    
    
    1.8%Rate of increase in salaries
    
    
    4.0%
    
    
    
    4.0%
    
    
    
    4.0%
    
    
    
    4.0%
    
    
    
    2.8%
    
    
    
    2.8%
    
    
    
    2.6%
    
    
    
    2.5%Rate of increase for pensions
in payment
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    2.0%
    
    
    
    1.9%
    
    
    
    1.9%
    
    
    
    1.8%Rate of increase for pensions in
deferment (where provided)
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    0.0%
    
    
    
    0.0%Expected long-term rates of return:Equities
    
    
    6.0%
    
    
    
    7.8%
    
    
    
    8.3%
    
    
    
    8.0%
    
    
    
    7.2%
    
    
    
    8.1%
    
    
    
    7.6%
    
    
    
    7.0%Bonds
    
    
    5.1%
    
    
    
    4.5%
    
    
    
    5.2%
    
    
    
    4.8%
    
    
    
    4.2%
    
    
    
    4.7%
    
    
    
    4.4%
    
    
    
    3.7%Property
    
    
    4.5%
    
    
    
    6.3%
    
    
    
    6.8%
    
    
    
    6.5%
    
    
    
    5.7%
    
    
    
    6.6%
    
    
    
    6.1%
    
    
    
    5.5%Others
    
    
    1.2%
    
    
    
    3.7%
    
    
    
    4.8%
    
    
    
    4.2%
    
    
    
    4.4%
    
    
    
    5.8%
    
    
    
    3.0%
    
    
    
    3.7%Weighted average asset return
    
    
    5.7%
    
    
    
    6.8%
    
    
    
    7.4%
    
    
    
    7.0%
    
    
    
    5.3%
    
    
    
    6.5%
    
    
    
    5.8%
    
    
    
    5.3%
 116 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Unilever Group
  20 Pensions and similar obligations
   United
    
    
    
    
    
    
    UnitedKingdom
    
    
    Netherlands
    
    
    States
    
    
    GermanyMales
    
    
    21
    
    
    
    20
    
    
    
    19
    
    
    
    18Females
    
    
    23
    
    
    
    22
    
    
    
    22
    
    
    
    21
   Balance sheet
   million
    
    
     million
    
    
    %
    
    
     million
    
    
     million
    
    
    %
    
    
     million
    
    
     million
    
    
    %31 December 2008
    
    
    31 December 2007
    
    
    31 December 2006Other post-
    
    
    Long-term
    
    
    
    
    
    
    Other post-
    
    
    Long-term
    
    
    
    
    
    
    Other post-
    
    
    Long-termemployment
    
    
    rates of
    
    
    
    
    
    
    employment
    
    
    rates of
    
    
    
    
    
    
    employment
    
    
    rates ofPension
    
    
    benefit
    
    
    return
    
    
    Pension
    
    
    benefit
    
    
    return
    
    
    Pension
    
    
    benefit
    
    
    returnplans
    
    
    plans
    
    
    expected
    
    
    plans
    
    
    plans
    
    
    expected
    
    
    plans
    
    
    plans
    
    
    expectedAssets of principal plans:Equities
    
    
    6 044
    
    
    
    
    
    
    
    7.4%
    
    
    
    9 957
    
    
    
    
    
    
    
    8.0%
    
    
    
    10 274
    
    
    
    
    
    
    
    7.8%Bonds
    
    
    3 244
    
    
    
    
    
    
    
    4.7%
    
    
    
    4 278
    
    
    
    
    
    
    
    4.9%
    
    
    
    3 946
    
    
    
    
    
    
    
    4.9%Property
    
    
    1 053
    
    
    
    
    
    
    
    5.8%
    
    
    
    1 381
    
    
    
    
    
    
    
    6.6%
    
    
    
    1 421
    
    
    
    
    
    
    
    6.3%Other
    
    
    1 069
    
    
    
    
    
    
    
    5.4%
    
    
    
    1 220
    
    
    
    
    
    
    
    6.3%
    
    
    
    1 221
    
    
    
    
    
    
    
    6.3%Assets of other plans
    
    
    303
    
    
    
    6
    
    
    
    8.3%
    
    
    
    404
    
    
    
    13
    
    
    
    7.5%
    
    
    
    403
    
    
    
    13
    
    
    
    7.3%11 713
    
    
    
    6
    
    
    
    
    
    
    
    17 240
    
    
    
    13
    
    
    
    
    
    
    
    17 265
    
    
    
    13Present value of liabilities:Principal plans
    
    
    (13 682
    )
    
    
    
    
    
    
    
    
    
    
    (16 798
    )
    
    
    
    
    
    
    
    
    
    
    (18 711
    )
    
    
    Other plans
    
    
    (682
    )
    
    
    (737
    )
    
    
    
    
    
    
    (748
    )
    
    
    (796
    )
    
    
    
    
    
    
    (722
    )
    
    
    (925
    )(14 364
    )
    
    
    (737
    )
    
    
    
    
    
    
    (17 546
    )
    
    
    (796
    )
    
    
    
    
    
    
    (19 433
    )
    
    
    (925
    )Aggregate net deficit of the plans
    
    
    (2 651
    )
    
    
    (731
    )
    
    
    
    
    
    
    (306
    )
    
    
    (783
    )
    
    
    
    
    
    
    (2 168
    )
    
    
    (912
    )Irrecoverable surplus(a)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Pension liability net of assets
    
    
    (2 651
    )
    
    
    (731
    )
    
    
    
    
    
    
    (306
    )
    
    
    (783
    )
    
    
    
    
    
    
    (2 168
    )
    
    
    (912
    )Of which in respect of:Funded plans in surplus:Liabilities
    
    
    (3 600
    )
    
    
    
    
    
    
    
    
    
    
    (12 396
    )
    
    
    
    
    
    
    
    
    
    
    (5 200
    )
    
    
    Assets
    
    
    4 025
    
    
    
    
    
    
    
    
    
    
    
    14 404
    
    
    
    
    
    
    
    
    
    
    
    6 897
    
    
    
    Aggregate surplus
    
    
    425
    
    
    
    
    
    
    
    
    
    
    
    2 008
    
    
    
    
    
    
    
    
    
    
    
    1 697
    
    
    
    Irrecoverable surplus(a)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Pension asset net of liabilities
    
    
    425
    
    
    
    
    
    
    
    
    
    
    
    2 008
    
    
    
    
    
    
    
    
    
    
    
    1 697
    
    
    
    Funded plans in deficit:Liabilities
    
    
    (9 484
    )
    
    
    (30
    )
    
    
    
    
    
    
    (3 627
    )
    
    
    (49
    )
    
    
    
    
    
    
    (11 716
    )
    
    
    (44
    )Assets
    
    
    7 688
    
    
    
    6
    
    
    
    
    
    
    
    2 836
    
    
    
    13
    
    
    
    
    
    
    
    10 368
    
    
    
    13Pension liability net of assets
    
    
    (1 796
    )
    
    
    (24
    )
    
    
    
    
    
    
    (791
    )
    
    
    (36
    )
    
    
    
    
    
    
    (1 348
    )
    
    
    (31
    )Unfunded plans:Pension liability
    
    
    (1 280
    )
    
    
    (707
    )
    
    
    
    
    
    
    (1 523
    )
    
    
    (747
    )
    
    
    
    
    
    
    (2 517
    )
    
    
    (881
    )
 
 (a)
    
    A surplus is deemed recoverable to the extent that the Group is able to benefit economically
from the surplus.  Unilever Annual Report on Form 20-F
2008 117




---



##### Table of Contents



Unilever Group
  20 Pensions and similar obligations
     Impact onChange in
    
    overallassumption
    
    liabilitiesDiscount rate
    
    Increase/decrease by 0.5%
    
    Decrease/increase by 6.0%Inflation rate
    
    Increase/decrease by 0.5%
    
    Increase/decrease by 5.0%
 Income statement
   million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Charged to operating profit:Defined benefit pension and other benefit plansCurrent service cost
    
    
    (272
    )
    
    
    (329
    )
    
    
    (369
    )Employee contributions
    
    
    12
    
    
    
    12
    
    
    
    13Special termination benefits
    
    
    (54
    )
    
    
    (59
    )
    
    
    (56
    )Past service cost
    
    
    24
    
    
    
    35
    
    
    
    293Settlements/curtailments
    
    
    16
    
    
    
    72
    
    
    
    48Defined contribution plans
    
    
    (55
    )
    
    
    (52
    )
    
    
    (61
    )Total operating cost
    
    
    (329
    )
    
    
    (321
    )
    
    
    (132
    )Charged to other finance income/(cost):Interest on retirement benefits
    
    
    (988
    )
    
    
    (1 013
    )
    
    
    (977
    )Expected return on assets
    
    
    1 131
    
    
    
    1 171
    
    
    
    1 018Total other finance income/(cost)
    
    
    143
    
    
    
    158
    
    
    
    41Net impact on the income statement (before tax)
    
    
    (186
    )
    
    
    (163
    )
    
    
    (91
    )
 118 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Unilever Group
  20 Pensions and similar obligations
 Significant Items on the face of the income statement
  Cash flow
  Statement of recognised income and expense
   million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionCumulativesince1 January2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2004Actual return less expected return on pension and other benefit
plan assets
    
    
    (4 243
    )
    
    
    (236
    )
    
    
    533
    
    
    
    1 592
    
    
    
    369
    
    
    
    (1 985
    )Experience gains/(losses) arising on pension plan and other
benefit plan liabilities
    
    
    
    
    
    
    103
    
    
    
    51
    
    
    
    27
    
    
    
    (47
    )
    
    
    134Changes in assumptions underlying the present value of the
pension and other benefit plan liabilities
    
    
    1 116
    
    
    
    946
    
    
    
    474
    
    
    
    (1 706
    )
    
    
    (1 047
    )
    
    
    (217
    )Actuarial gain/(loss)
    
    
    (3 127
    )
    
    
    813
    
    
    
    1 058
    
    
    
    (87
    )
    
    
    (725
    )
    
    
    (2 068
    )Change in unrecognised surplus
    
    
    
    
    
    
    
    
    
    
    142
    
    
    
    (41
    )
    
    
    2
    
    
    
    103Refund of unrecognised assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15
    
    
    
    
    
    
    
    15Net actuarial gain/(loss) recognised in statement of recognised
income and expense (before tax)
    
    
    (3 127
    )
    
    
    813
    
    
    
    1 200
    
    
    
    (113
    )
    
    
    (723
    )
    
    
    (1 950
    )
 Unilever Annual Report on Form 20-F
2008 119




---



##### Table of Contents



Unilever Group
  20 Pensions and similar obligations
 Reconciliation of change in assets and liabilities
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionAssets
    
    
    Assets
    
    
    Assets
    
    
    Liabilities
    
    
    Liabilities
    
    
    Liabilities2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    20061 January
    
    
    17 253
    
    
    
    17 278
    
    
    
    16 006
    
    
    
    (18 342
    )
    
    
    (20 358
    )
    
    
    (21 446
    )Acquisitions/disposals
    
    
    
    
    
    
    (3
    )
    
    
    (63
    )
    
    
    2
    
    
    
    5
    
    
    
    123Current service cost
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (272
    )
    
    
    (329
    )
    
    
    (384
    )Employee contributions
    
    
    12
    
    
    
    12
    
    
    
    14
    
    
    
    
    
    
    
    
    
    
    
    Special termination benefits
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (54
    )
    
    
    (59
    )
    
    
    (54
    )Past service costs(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24
    
    
    
    35
    
    
    
    293Settlements/curtailments
    
    
    (12
    )
    
    
    (4
    )
    
    
    (17
    )
    
    
    28
    
    
    
    76
    
    
    
    76Expected returns on plan assets
    
    
    1 131
    
    
    
    1 171
    
    
    
    1 021
    
    
    
    
    
    
    
    
    
    
    
    Interest on pension liabilities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (988
    )
    
    
    (1 013
    )
    
    
    (982
    )Actuarial gain/(loss)
    
    
    (4 243
    )
    
    
    (236
    )
    
    
    533
    
    
    
    1 116
    
    
    
    1 049
    
    
    
    525Employer contributions
    
    
    754
    
    
    
    1 158
    
    
    
    1 091
    
    
    
    
    
    
    
    
    
    
    
    Benefit payments
    
    
    (1 367
    )
    
    
    (1 247
    )
    
    
    (1 267
    )
    
    
    1 367
    
    
    
    1 247
    
    
    
    1 267Reclassification of benefits(c)
    
    
    (7
    )
    
    
    (7
    )
    
    
    38
    
    
    
    7
    
    
    
    7
    
    
    
    (32
    )Currency retranslation
    
    
    (1 802
    )
    
    
    (869
    )
    
    
    (78
    )
    
    
    2 011
    
    
    
    998
    
    
    
    25631 December
    
    
    11 719
    
    
    
    17 253
    
    
    
    17 278
    
    
    
    (15 101
    )
    
    
    (18 342
    )
    
    
    (20 358
    )
 
 (b)
    
    The reduction in liabilities in 2006 includes the 266 million reported on the face
of the income statement.(c)
    
    Certain obligations have been reclassified as employee
benefit obligations. Funded status of plans at the year end
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Total assets
    
    
    11 719
    
    
    
    17 253
    
    
    
    17 278
    
    
    
    16 006
    
    
    
    13 419Total pension liabilities
    
    
    (15 101
    )
    
    
    (18 342
    )
    
    
    (20 358
    )
    
    
    (21 446
    )
    
    
    (18 773
    )Net liabilities
    
    
    (3 382
    )
    
    
    (1 089
    )
    
    
    (3 080
    )
    
    
    (5 440
    )
    
    
    (5 354
    )Less unrecognised surplus
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (141
    )
    
    
    (100
    )Pension liabilities net of assets
    
    
    (3 382
    )
    
    
    (1 089
    )
    
    
    (3 080
    )
    
    
    (5 581
    )
    
    
    (5 454
    )
 History of experience gains and losses
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Actual return less expected return on plan assets
    
    
    (4 243
    )
    
    
    (236
    )
    
    
    533
    
    
    
    1 592
    
    
    
    369As % of plan assets at beginning of year
    
    
    (24.6
    )%
    
    
    (1.4
    )%
    
    
    3.3
    %
    
    
    11.9
    %
    
    
    2.9
    %Experience gains/(losses) on plan liabilities
    
    
    
    
    
    
    103
    
    
    
    51
    
    
    
    27
    
    
    
    (47
    )As % of present value of plan liabilities at beginning of year
    
    
    0.0
    %
    
    
    0.5
    %
    
    
    0.2
    %
    
    
    0.1
    %
    
    
    (0.3
    )%Changes in actuarial assumptions underlying the present value of the
pension benefit and other benefit plan liabilities
    
    
    1 116
    
    
    
    946
    
    
    
    474
    
    
    
    (1 706
    )
    
    
    (1 047
    )As % of present value of plan liabilities at beginning of year
    
    
    6.1
    %
    
    
    4.6
    %
    
    
    2.2
    %
    
    
    (9.1
    )%
    
    
    (5.9
    )%Total actuarial gain/(loss)
    
    
    (3 127
    )
    
    
    813
    
    
    
    1 058
    
    
    
    (87
    )
    
    
    (725
    )As % of present value of plan liabilities at beginning of year
    
    
    (17.0
    )%
    
    
    4.0
    %
    
    
    4.9
    %
    
    
    (0.5
    )%
    
    
    (4.1
    )%
 120 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Unilever Group
  
 21 Equity
 Shareholders equity
    
    
    Total equity million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionCalled up
    
    
    Share
    
    
    
    
    
    
    
    
    
    
    Totalshare
    
    
    premium
    
    
    Other
    
    
    Retained
    
    
    shareholders
    
    
    Minority
    
    
    TotalConsolidated
statement of changes in equity
    
    capital
    
    
    account
    
    
    reserves
    
    
    profit
    
    
    equity
    
    
    interests
    
    
    equity1 January 2006
    
    
    512
    
    
    
    162
    
    
    
    (2 328
    )
    
    
    10 015
    
    
    
    8 361
    
    
    
    404
    
    
    
    8 765Total recognised income and expense for the year
    
    
    
    
    
    
    
    
    
    
    (263
    )
    
    
    5 575
    
    
    
    5 312
    
    
    
    242
    
    
    
    5 554Dividends on ordinary capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2 684
    )
    
    
    (2 684
    )
    
    
    
    
    
    
    (2 684
    )(Purchase)/sale/reduction of treasury stock(a)
    
    
    
    
    
    
    
    
    
    
    403
    
    
    
    (285
    )
    
    
    118
    
    
    
    
    
    
    
    118Share-based payment credit(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    111
    
    
    
    111
    
    
    
    
    
    
    
    111Dividends paid to minority shareholders
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (184
    )
    
    
    (184
    )Currency retranslation gains/(losses) net of tax
    
    
    (12
    )
    
    
    3
    
    
    
    14
    
    
    
    
    
    
    
    5
    
    
    
    (11
    )
    
    
    (6
    )Other movements in equity
    
    
    (16
    )
    
    
    
    
    
    
    31
    
    
    
    (8
    )
    
    
    7
    
    
    
    (9
    )
    
    
    (2
    )31 December 2006
    
    
    484
    
    
    
    165
    
    
    
    (2 143
    )
    
    
    12 724
    
    
    
    11 230
    
    
    
    442
    
    
    
    11 672Total recognised income and expense for the year
    
    
    
    
    
    
    
    
    
    
    (314
    )
    
    
    4 428
    
    
    
    4 114
    
    
    
    237
    
    
    
    4 351Dividends on ordinary capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2 070
    )
    
    
    (2 070
    )
    
    
    
    
    
    
    (2 070
    )(Purchase)/sale/reduction of treasury stock(a)
    
    
    
    
    
    
    
    
    
    
    (955
    )
    
    
    (99
    )
    
    
    (1 054
    )
    
    
    
    
    
    
    (1 054
    )Share-based payment credit(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    140
    
    
    
    140
    
    
    
    
    
    
    
    140Dividends paid to minority shareholders
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (251
    )
    
    
    (251
    )Currency retranslation gains/(losses) net of tax
    
    
    
    
    
    
    (12
    )
    
    
    
    
    
    
    
    
    
    
    (12
    )
    
    
    (6
    )
    
    
    (18
    )Other movements in equity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39
    
    
    
    39
    
    
    
    10
    
    
    
    4931 December 2007
    
    
    484
    
    
    
    153
    
    
    
    (3 412
    )
    
    
    15 162
    
    
    
    12 387
    
    
    
    432
    
    
    
    12 819Total recognised income and expense for the year
    
    
    
    
    
    
    
    
    
    
    (1 757
    )
    
    
    2 692
    
    
    
    935
    
    
    
    205
    
    
    
    1 140Dividends on ordinary capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2 052
    )
    
    
    (2 052
    )
    
    
    
    
    
    
    (2 052
    )(Purchase)/sale/reduction of treasury stock(a)
    
    
    
    
    
    
    
    
    
    
    (1 304
    )
    
    
    (113
    )
    
    
    (1 417
    )
    
    
    
    
    
    
    (1 417
    )Share-based payment credit(b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    125
    
    
    
    125
    
    
    
    
    
    
    
    125Dividends paid to minority shareholders
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (208
    )
    
    
    (208
    )Currency retranslation gains/(losses) net of tax
    
    
    
    
    
    
    (32
    )
    
    
    
    
    
    
    
    
    
    
    (32
    )
    
    
    (6
    )
    
    
    (38
    )Other movements in equity
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    (2
    )
    
    
    2
    
    
    
    1
    
    
    
    331 December 2008
    
    
    484
    
    
    
    121
    
    
    
    (6 469
    )
    
    
    15 812
    
    
    
    9 948
    
    
    
    424
    
    
    
    10 372
 
 (a)
    
    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.(b)
    
    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. Unilever Annual Report on Form 20-F
2008 121




---



##### Table of Contents



Unilever Group
  
 22 Share capital
  million
    
    
     millionCalled up share
capital
    
    2008
    
    
    2007Ordinary share capital of NV
    
    
    274
    
    
    
    274Ordinary share capital of PLC
    
    
    210
    
    
    
    210484
    
    
    
    484
 Issued,
    
    
    Issued,Number
    
    
    
    
    
    
    
    
    
    
    Nominal
    
    
    Number
    
    
    called up and
    
    
    called up andof shares
    
    
    Authorised
    
    
    Authorised
    
    
    value
    
    
    of shares
    
    
    fully paid
    
    
    fully paidOrdinary
share capital
    
    authorised
    
    
    2008
    
    
    2007
    
    
    per share
    
    
    issued
    
    
    2008
    
    
    2007 million
    
    
     million
    
    
    
    
    
    
    
    
    
    
     million
    
    
     millionNV ordinary shares
    
    
    3 000 000 000
    
    
    
    480
    
    
    
    480
    
    
    
    0.16
    
    
    
    1 714 727 700
    
    
    
    274
    
    
    
    274NV ordinary shares (shares numbered
1 to 2 400  Special Shares)
    
    
    
    
    
    
    1
    
    
    
    1
    
    
    
    428.57
    
    
    
    2 400
    
    
    
    1
    
    
    
    1Internal holdings eliminated
on consolidation (428.57 shares)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    (1
    )481
    
    
    
    481
    
    
    
    
    
    
    
    
    
    
    
    274
    
    
    
    274£ million
    
    
    £ million
    
    
    
    
    
    
    
    
    
    
    £ million
    
    
    
    £ millionPLC ordinary shares
    
    
    4 377 075 492
    
    
    
    136.2
    
    
    
    136.2
    
    
    
    31/9p
    
    
    
    1 310 156 361
    
    
    
    40.8
    
    
    
    40.8PLC deferred stock
    
    
    100 000
    
    
    
    0.1
    
    
    
    0.1
    
    
    £1 stock
    
    
    100 000
    
    
    
    0.1
    
    
    
    0.1Internal holding eliminated
on consolidation (£1 stock)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )
    
    
    (0.1
    )136.3
    
    
    
    136.3
    
    
    
    
    
    
    
    
    
    
    
    40.8
    
    
    
    40.8Euro equivalent in millions (at £1.00 = 5.143)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    210
    
    
    
    210
   Internal holdings
  Share-based compensation
  122 Unilever Annual Report on Form 20-F
2008




---



##### Table of Contents



Unilever Group
  
 23
Other reserves(a)
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionNV
    
    
    NV
    
    
    NV
    
    
    PLC
    
    
    PLC
    
    
    PLC
    
    
    Total
    
    
    Total
    
    
    Total2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    2006Fair value reserves
    
    
    (41
    )
    
    
    92
    
    
    
    9
    
    
    
    (22
    )
    
    
    9
    
    
    
    7
    
    
    
    (63
    )
    
    
    101
    
    
    
    16Cash flow hedges
    
    
    (22
    )
    
    
    86
    
    
    
    4
    
    
    
    (11
    )
    
    
    (1
    )
    
    
    (3
    )
    
    
    (33
    )
    
    
    85
    
    
    
    1Available-for-sale financial assets
    
    
    (19
    )
    
    
    6
    
    
    
    5
    
    
    
    (11
    )
    
    
    10
    
    
    
    10
    
    
    
    (30
    )
    
    
    16
    
    
    
    15Currency retranslation of group companies
    
    
    (640
    )
    
    
    104
    
    
    
    318
    
    
    
    (1 053
    )
    
    
    (204
    )
    
    
    (19
    )
    
    
    (1 693
    )
    
    
    (100
    )
    
    
    299Adjustment on translation of PLCs ordinarycapital at 31/9p = 0.16
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (169
    )
    
    
    (155
    )
    
    
    (150
    )
    
    
    (169
    )
    
    
    (155
    )
    
    
    (150
    )Capital redemption reserve
    
    
    16
    
    
    
    16
    
    
    
    16
    
    
    
    16
    
    
    
    16
    
    
    
    16
    
    
    
    32
    
    
    
    32
    
    
    
    32Book value treasury stock
    
    
    (3 886
    )
    
    
    (2 741
    )
    
    
    (1 623
    )
    
    
    (690
    )
    
    
    (549
    )
    
    
    (717
    )
    
    
    (4 576
    )
    
    
    (3 290
    )
    
    
    (2 340
    )(4 551
    )
    
    
    (2 529
    )
    
    
    (1 280
    )
    
    
    (1 918
    )
    
    
    (883
    )
    
    
    (863
    )
    
    
    (6 469
    )
    
    
    (3 412
    )
    
    
    (2 143
    )
  million
    
    
     millionCash flow hedges
 movements during the year
    
    2008
    
    
    20071 January
    
    
    85
    
    
    
    1Transfers to equity
    
    
    (92
    )
    
    
    74Transfers to income statement:
    
    
    (11
    )
    
    
    1Operating profit
    
    
    (11
    )
    
    
    1Financing
    
    
    
    
    
    
    Transfers to inventories/non-current assets
    
    
    (15
    )
    
    
    931 December
    
    
    (33
    )
    
    
    85
   million
    
    
     millionTreasury stock  movements during the year
    
    2008
    
    
    20071 January
    
    
    (3 290
    )
    
    
    (2 340
    )Purchases and other utilisations
    
    
    (1 286
    )
    
    
    (950
    )31 December
    
    
    (4 576
    )
    
    
    (3 290
    )
  million
    
    
     millionCurrency retranslation reserve  movements during the year
    
    2008
    
    
    20071 January
    
    
    (100
    )
    
    
    299Currency retranslation during the year
    
    
    (1 027
    )
    
    
    294Movement in net investment hedges
    
    
    (560
    )
    
    
    (692
    )Recycled to income statement
    
    
    (6
    )
    
    
    (1
    )31 December
    
    
    (1 693
    )
    
    
    (100
    )
 (a)
    
    The movements in other reserves are analysed between the NV and PLC parts of the Group aggregated according to the
relative legal ownership of individual entities by NV or PLC. Unilever Annual Report on Form 20-F 2008 123




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##### Table of Contents



Unilever Group
  
 24
Retained profit(a)
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionNV
    
    
    NV
    
    
    NV
    
    
    PLC
    
    
    PLC
    
    
    PLC
    
    
    Total
    
    
    Total
    
    
    TotalMovements during the year
    
    2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    20061 January
    
    
    10 403
    
    
    
    8 404
    
    
    
    8 721
    
    
    
    4 759
    
    
    
    4 320
    
    
    
    1 294
    
    
    
    15 162
    
    
    
    12 724
    
    
    
    10 015Recognised income and expense through
retained profit
    
    
    1 742
    
    
    
    2 599
    
    
    
    3 727
    
    
    
    950
    
    
    
    1 829
    
    
    
    1 848
    
    
    
    2 692
    
    
    
    4 428
    
    
    
    5 575Dividends on ordinary capital
    
    
    (1 176
    )
    
    
    (1 167
    )
    
    
    (1 529
    )
    
    
    (876
    )
    
    
    (903
    )
    
    
    (1 155
    )
    
    
    (2 052
    )
    
    
    (2 070
    )
    
    
    (2 684
    )Utilisation of treasury stock
    
    
    (66
    )
    
    
    (53
    )
    
    
    (217
    )
    
    
    (47
    )
    
    
    (46
    )
    
    
    (68
    )
    
    
    (113
    )
    
    
    (99
    )
    
    
    (285
    )Share-based
compensation credit(b)
    
    
    79
    
    
    
    90
    
    
    
    70
    
    
    
    46
    
    
    
    50
    
    
    
    41
    
    
    
    125
    
    
    
    140
    
    
    
    111Adjustment arising from change in structure
of group
companies(c)
    
    
    4 346
    
    
    
    499
    
    
    
    (2 368
    )
    
    
    (4 346
    )
    
    
    (499
    )
    
    
    2 368
    
    
    
    
    
    
    
    
    
    
    
    Other movements in retained profit
    
    
    15
    
    
    
    31
    
    
    
    
    
    
    
    (17
    )
    
    
    8
    
    
    
    (8
    )
    
    
    (2
    )
    
    
    39
    
    
    
    (8
    )31 December
    
    
    15 343
    
    
    
    10 403
    
    
    
    8 404
    
    
    
    469
    
    
    
    4 759
    
    
    
    4 320
    
    
    
    15 812
    
    
    
    15 162
    
    
    
    12 724Of which retained by:Parent companies
    
    
    10 602
    
    
    
    10 009
    
    
    
    9 755
    
    
    
    1 996
    
    
    
    2 344
    
    
    
    2 306
    
    
    
    12 598
    
    
    
    12 353
    
    
    
    12 061Other group companies
    
    
    4 732
    
    
    
    345
    
    
    
    (1 294
    )
    
    
    (1 348
    )
    
    
    2 555
    
    
    
    2 006
    
    
    
    3 384
    
    
    
    2 900
    
    
    
    712Joint ventures and associates
    
    
    9
    
    
    
    49
    
    
    
    (57
    )
    
    
    (179
    )
    
    
    (140
    )
    
    
    8
    
    
    
    (170
    )
    
    
    (91
    )
    
    
    (49
    )15 343
    
    
    
    10 403
    
    
    
    8 404
    
    
    
    469
    
    
    
    4 759
    
    
    
    4 320
    
    
    
    15 812
    
    
    
    15 162
    
    
    
    12 724
 
 (a)
    
    The movements in retained profits are analysed between the NV and PLC parts of the Group
aggregated according to the relative legal ownership of individual entities by NV or PLC.(b)
    
    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.(c)
    
    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 PLC to that of
NV does not differ substantially from the ratio of the dividend entitlement of ordinary
shareholders in PLC to that of ordinary shareholders in NV. During 2007, Unilevers shareholding in
Unilever Jerónimo Martins in Portugal was transferred from NV to PLC for no consideration. In
addition, a part of indirect shareholdings in Unilever US was sold by NV to PLC and the fair value
economic swap in South Africa led to further adjustments between NV and PLC. 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, were transferred from NV to 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 NV part of the Group was instead paid to a company within the PLC part of
the Group. In 2008 shareholdings in the Unilever companies in Belgium, Austria, Netherlands, Poland
and Switzerland were transferred to 100% NV ownership. In addition, shareholdings in Canada and
Indonesia were re-aligned between NV and PLC. Reorganisations of group
companies have produced similar types of adjustments in previous years.  124 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Unilever Group
  
 25
Commitments and contingent liabilities
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionFuture
    
    
    
    
    
    
    
    
    
    
    Futureminimum
    
    
    
    
    
    
    
    
    
    
    minimumlease
    
    
    Finance
    
    
    Present
    
    
    lease
    
    
    Finance
    
    
    Presentpayments
    
    
    cost
    
    
    value
    
    
    payments
    
    
    cost
    
    
    valueLong-term finance lease commitments
    
    2008
    
    
    2008
    
    
    2008
    
    
    2007
    
    
    2007
    
    
    2007Buildings(a)
    
    
    330
    
    
    
    166
    
    
    
    164
    
    
    
    410
    
    
    
    198
    
    
    
    212Plant and machinery
    
    
    51
    
    
    
    8
    
    
    
    43
    
    
    
    110
    
    
    
    11
    
    
    
    99381
    
    
    
    174
    
    
    
    207
    
    
    
    520
    
    
    
    209
    
    
    
    311The commitments fall due as follows:Within 1 year
    
    
    37
    
    
    
    13
    
    
    
    24
    
    
    
    82
    
    
    
    17
    
    
    
    65Later than 1 year but not later than 5 years
    
    
    102
    
    
    
    52
    
    
    
    50
    
    
    
    125
    
    
    
    59
    
    
    
    66Later than 5 years
    
    
    242
    
    
    
    109
    
    
    
    133
    
    
    
    313
    
    
    
    133
    
    
    
    180381
    
    
    
    174
    
    
    
    207
    
    
    
    520
    
    
    
    209
    
    
    
    311
 
 (a)
    
    All leased land is classified as operating leases.   million
    
    
     millionLong-term operating lease commitments
    
    2008
    
    
    2007Land and buildings
    
    
    1 230
    
    
    
    1 328Plant and machinery
    
    
    261
    
    
    
    3351 491
    
    
    
    1 663
  million
    
    
     million
    
    
     million
    
    
     millionOther
    
    
    OtherOperating
    
    
    Operating
    
    
    commit-
    
    
    commit-leases
    
    
    leases
    
    
    ments
    
    
    mentsOperating lease and other commitments fall due as follows
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007Within 1 year
    
    
    344
    
    
    
    363
    
    
    
    722
    
    
    
    646Later than 1 year but not later than 5 years
    
    
    730
    
    
    
    859
    
    
    
    1 339
    
    
    
    955Later than 5 years
    
    
    417
    
    
    
    441
    
    
    
    79
    
    
    
    1521 491
    
    
    
    1 663
    
    
    
    2 140
    
    
    
    1 753
       Unilever Annual Report on Form 20-F 2008 125




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##### Table of Contents



Unilever Group
  25
Commitments and contingent liabilities (continued)
 Legal proceedings
  Ice cream cases
    Other competition issues
        126 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  25
Commitments and contingent liabilities (continued)
 Tax cases Brazil
    Cumulative preference shares
   Unilever Annual Report on Form 20-F 2008 127




---



##### Table of Contents



Unilever Group
  
 26 Acquisitions and disposals
 2008
         2007
     2006
    128 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  26 Acquisitions and disposals
  million
    
    
    million
    
    
    millionDisposals
    
    
    2008
    
    
    2007
    
    
    2006Goodwill and intangible assets
    
    
    
    117
    
    
    
    5
    
    
    
    1Other non-current assets
    
    
    
    145
    
    
    
    44
    
    
    
    242Current assets
    
    
    
    227
    
    
    
    117
    
    
    
    354Trade creditors and other payables
    
    
    
    (61
    )
    
    
    (48
    )
    
    
    (157
    )Provisions for liabilities and charges
    
    
    
    (5
    )
    
    
    (34
    )
    
    
    (91
    )Minority interest
    
    
    
    
    
    
    
    71
    
    
    
    Net assets sold
    
    
    
    423
    
    
    
    155
    
    
    
    349(Gain)/loss on recycling of currency retranslation on disposal
    
    
    
    (6
    )
    
    
    (1
    )
    
    
    Profit on sale attributable to Unilever
    
    
    
    2 237
    
    
    
    399
    
    
    
    1 528Consideration(a)
    
    
    
    2 654
    
    
    
    553
    
    
    
    1 877Cash
    
    
    
    2 453
    
    
    
    168
    
    
    
    1 870Cash balances of businesses sold
    
    
    
    (15
    )
    
    
    (4
    )
    
    
    Financial assets, cash deposits and financial liabilities of businesses sold
    
    
    
    15
    
    
    
    113
    
    
    
    (5
    )Non-cash items and deferred consideration(a)
    
    
    
    201
    
    
    
    276
    
    
    
    12
 
 (a)
    
    For 2007, includes 214 million fair value economic swap in South Africa.    million
    
    
     million
    
    
     millionAcquisitions
    
    2008
    
    
    2007
    
    
    2006Net assets acquired
    
    
    151
    
    
    
    94
    
    
    
    42Goodwill arising in subsidiaries
    
    
    60
    
    
    
    334
    
    
    
    60Consideration
    
    
    211
    
    
    
    428
    
    
    
    102
  Unilever Annual Report on Form 20-F 2008 129




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##### Table of Contents



Unilever Group
  
 27 Assets held for sale and discontinued operations
    million
    
    
     million
    
    
     millionIncome statement of discontinued operations
    
    2008
    
    
    2007
    
    
    2006Turnover
    
    
    
    
    
    
    
    
    
    
    1 033Expenses
    
    
    
    
    
    
    
    
    
    
    (863
    )Operating profit
    
    
    
    
    
    
    
    
    
    
    170Net finance costs
    
    
    
    
    
    
    
    
    
    
    (3
    )Profit before tax
    
    
    
    
    
    
    
    
    
    
    167Taxation
    
    
    
    
    
    
    
    
    
    
    (25
    )Profit after taxation
    
    
    
    
    
    
    
    
    
    
    142Gain/(loss) on disposal of discontinued operations(a)
    
    
    
    
    
    
    89
    
    
    
    1 349Recycling of currency retranslation upon disposal
    
    
    
    
    
    
    
    
    
    
    Taxation arising on disposal
    
    
    
    
    
    
    (9
    )
    
    
    (161
    )Gain/(loss) after taxation on disposal
    
    
    
    
    
    
    80
    
    
    
    1 188Net profit from discontinued operations
    
    
    
    
    
    
    80
    
    
    
    1 330
 
 (a)
    
    In 2007, a one-off gain of 50 million was recognised for future performance-based
consideration from the sale of UCI.  million
    
    
     million
    
    
     millionSegment analysis of discontinued operations
    
    2008
    
    
    2007
    
    
    2006TurnoverWestern Europe
    
    
    
    
    
    
    
    
    
    
    1 033The Americas
    
    
    
    
    
    
    
    
    
    
    Asia, Africa and Central & Eastern Europe
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 033Foods
    
    
    
    
    
    
    
    
    
    
    1 033Personal care
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 033Operating profitWestern Europe
    
    
    
    
    
    
    
    
    
    
    170The Americas
    
    
    
    
    
    
    
    
    
    
    Asia, Africa and Central & Eastern Europe
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    170Foods
    
    
    
    
    
    
    
    
    
    
    164Personal care
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    170
 130 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Unilever Group
  27 Assets held for sale and discontinued operations
  million
    
    
     million
    
    
     millionSummary cash flow statement of discontinued operations
    
    2008
    
    
    2007
    
    
    2006Net cash flow from/(used in) operating activities
    
    
    
    
    
    
    (4
    )
    
    
    79Net cash flow from/(used in) investing activities
    
    
    
    
    
    
    80
    
    
    
    1 618Net cash flow from/(used in) financing activities
    
    
    
    
    
    
    
    
    
    
    (1)Net increase/(decrease) in cash and cash equivalents
    
    
    
    
    
    
    76
    
    
    
    1 696
   million
    
    
     millionAssets classified as held for sale
    
    2008
    
    
    2007Disposal groups held for saleProperty, plant and equipment
    
    
    7
    
    
    
    66Inventories
    
    
    15
    
    
    
    83Trade and other receivables
    
    
    
    
    
    
    422
    
    
    
    153Non-current assets held for saleProperty, plant and equipment
    
    
    14
    
    
    
    614
    
    
    
    6
   million
    
    
     millionLiabilities classified as held for sale (part of disposal groups)
    
    2008
    
    
    2007Trade payables and other liabilities
    
    
    
    
    
    
    (10)Deferred taxation
    
    
    
    
    
    
    (3)
    
    
    
    (13)
 Unilever Annual Report on Form 20-F 2008 131




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##### Table of Contents



Unilever Group
  
 28 Reconciliation of net profit to cash flow from operating activities
  million
    
    
     million
    
    
     millionCash flow from operating activities
    
    
    2008
    
    
    2007
    
    
    2006Net profit
    
    
    
    5 285
    
    
    
    4 136
    
    
    
    5 015Taxation
    
    
    
    1 844
    
    
    
    1 137
    
    
    
    1 332Share of net profit of joint ventures/associates and other income from non-current investments
    
    
    
    (219
    )
    
    
    (191
    )
    
    
    (144
    )Net finance costs:
    
    
    
    257
    
    
    
    252
    
    
    
    725Finance income
    
    
    
    (106
    )
    
    
    (147
    )
    
    
    (138
    )Finance cost
    
    
    
    506
    
    
    
    550
    
    
    
    602Preference shares provision
    
    
    
    
    
    
    
    7
    
    
    
    300Pensions and similar obligations
    
    
    
    (143
    )
    
    
    (158
    )
    
    
    (39
    )Operating profit (continuing and discontinued operations)
    
    
    
    7 167
    
    
    
    5 334
    
    
    
    6 928Depreciation, amortisation and impairment
    
    
    
    1 003
    
    
    
    943
    
    
    
    982Changes in working capital:
    
    
    
    (161
    )
    
    
    27
    
    
    
    87Inventories
    
    
    
    (345
    )
    
    
    (333
    )
    
    
    (156
    )Trade and other current receivables
    
    
    
    (248
    )
    
    
    (43
    )
    
    
    (172
    )Trade payables and other current liabilities
    
    
    
    432
    
    
    
    403
    
    
    
    415Pensions and similar provisions less payments
    
    
    
    (502
    )
    
    
    (910
    )
    
    
    (1 038
    )Provisions less payments
    
    
    
    (62
    )
    
    
    145
    
    
    
    107Elimination of (profits)/losses on disposals
    
    
    
    (2 259
    )
    
    
    (459
    )
    
    
    (1 620
    )Non-cash charge for share-based compensation
    
    
    
    125
    
    
    
    118
    
    
    
    120Other adjustments
    
    
    
    15
    
    
    
    (10
    )
    
    
    8Cash flow from operating activities
    
    
    
    5 326
    
    
    
    5 188
    
    
    
    5 574
  Major non-cash transactions
   132 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Unilever Group
  
 29 Share-based compensation plans
       million
    
    
     million
    
    
     millionIncome statement charge
    
    2008
    
    
    2007
    
    
    2006Performance share plans
    
    
    (97
    )
    
    
    (103
    )
    
    
    (48
    )Other plans(a)
    
    
    (28
    )
    
    
    (49
    )
    
    
    (72
    )(125
    )
    
    
    (152
    )
    
    
    (120
    )
 
 (a)
    
    The Group also provides a Share Matching Plan, an All-Employee Share Option Plan, a TSR
Long-Term Incentive Plan (no awards after 2006) and an Executive Option Plan (no awards after
2005). Performance Share Plans
     2008
    
    
    2007
    
    
    2006Number of
    
    
    Number of
    
    
    Number ofshares
    
    
    shares
    
    
    sharesOutstanding at 1 January
    
    
    16 843 769
    
    
    
    15 270 180
    
    
    
    13 286 992Awarded
    
    
    6 887 890
    
    
    
    6 209 781
    
    
    
    6 162 489Vested
    
    
    (6 415 295
    )
    
    
    (3 465 990
    )
    
    
    (3 057 630
    )Forfeited
    
    
    (963 113
    )
    
    
    (1 170 202
    )
    
    
    (1 121 671
    )Outstanding at 31 December
    
    
    16 353 251
    
    
    
    16 843 769
    
    
    
    15 270 180Exercisable at 31 December
    
    
    
    
    
    
    
    
    
    
    2008
    
    
    
    2007
    
    
    
    2006Share award value informationFair value per share award during the year
    
    
    19.11
    
    
    
    19.06
    
    
    
    17.22
 Unilever Annual Report on Form 20-F 2008 133




---



##### Table of Contents



Unilever Group
  29 Share-based compensation plans (continued)
 Additional information
  1 9
     134 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  
 30 Related party transactions
   million
    
    
     millionRelated party balances
    
    2008
    
    
    2007Trading and other balances due (to)/from joint ventures
    
    
    240
    
    
    
    157Trading balances due (to)/from associates
    
    
    (33
    )
    
    
    (21
    )
 Joint ventures
  Associates
    Other related parties
  
 31 Key management personnel
   million
    
    
     million
    
    
     millionKey management compensation
    
    2008
    
    
    2007
    
    
    2006Salaries and short-term employee benefits
    
    
    (16
    )
    
    
    (19
    )
    
    
    (14
    )Non-Executive Directors fees
    
    
    (2
    )
    
    
    (2
    )
    
    
    (1
    )Post-employment benefits
    
    
    (5
    )
    
    
    (2
    )
    
    
    (3
    )Other long-term benefits (all share-based)
    
    
    (7
    )
    
    
    (2
    )
    
    
    (2
    )Termination payments
    
    
    
    
    
    
    
    
    
    
    (30
    )
    
    
    (25
    )
    
    
    (20
    )Of which:Executive Directors
    
    
    (16
    )
    
    
    (12
    )
    
    
    (11
    )Non-Executive Directors
    
    
    (2
    )
    
    
    (2
    )
    
    
    (1
    )Other
    
    
    (12
    )
    
    
    (11
    )
    
    
    (8
    )(30
    )
    
    
    (25
    )
    
    
    (20
    )
  Unilever Annual Report on Form 20-F 2008 135




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##### Table of Contents



Unilever Group
  
 32 Remuneration of auditors
  million
    
    
     million
    
    
     million2008
    
    
    2007
    
    
    2006Audit fees(a)
    
    
    (21
    )
    
    
    (20
    )
    
    
    (24
    )Audit-related fees(b)
    
    
    (3
    )
    
    
    (2
    )
    
    
    (3
    )Tax fees
    
    
    (2
    )
    
    
    (2
    )
    
    
    (2
    )All other fees
    
    
    (1
    )
    
    
    (1
    )
    
    
    (1
    )
 
 (a)
    
    Excludes 1 million of out of pocket expenses and 1 million fees paid in respect of services
supplied for associated pension schemes.(b)
    
    Includes other audit services which comprises audit and similar work that regulations or
agreements with third parties requires the auditors to undertake. 
 33 Events after the balance sheet date
   136 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Unilever Group
  
 34 Summarised presentation of the NV and PLC parts of the Group
   million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionNV
    
    
    NV
    
    
    NV
    
    
    PLC
    
    
    PLC
    
    
    PLCIncome statement for the year ended 31 December
    
    2008
    
    
    2007
    
    
    2006
    
    
    2008
    
    
    2007
    
    
    2006Continuing operations:Turnover
    
    
    22 108
    
    
    
    24 100
    
    
    
    27 376
    
    
    
    18 415
    
    
    
    16 087
    
    
    
    12 266Operating profit
    
    
    4 033
    
    
    
    2 891
    
    
    
    3 608
    
    
    
    3 134
    
    
    
    2 354
    
    
    
    1 800Net finance costs
    
    
    (170
    )
    
    
    (249
    )
    
    
    (686
    )
    
    
    (87
    )
    
    
    (3
    )
    
    
    (35
    )Share in net profit of joint ventures
    
    
    49
    
    
    
    67
    
    
    
    59
    
    
    
    76
    
    
    
    35
    
    
    
    19Share in net profit of associates
    
    
    (3
    )
    
    
    (2
    )
    
    
    
    
    
    
    9
    
    
    
    52
    
    
    
    36Other income from non-current investments
    
    
    12
    
    
    
    27
    
    
    
    13
    
    
    
    76
    
    
    
    12
    
    
    
    17Profit before taxation
    
    
    3 921
    
    
    
    2 734
    
    
    
    2 994
    
    
    
    3 208
    
    
    
    2 450
    
    
    
    1 837Taxation
    
    
    (971
    )
    
    
    (601
    )
    
    
    (727
    )
    
    
    (873
    )
    
    
    (527
    )
    
    
    (419
    )Net profit from continuing operations
    
    
    2 950
    
    
    
    2 133
    
    
    
    2 267
    
    
    
    2 335
    
    
    
    1 923
    
    
    
    1 418Net profit from discontinued operations
    
    
    
    
    
    
    71
    
    
    
    836
    
    
    
    
    
    
    
    9
    
    
    
    494Net profit
    
    
    2 950
    
    
    
    2 204
    
    
    
    3 103
    
    
    
    2 335
    
    
    
    1 932
    
    
    
    1 912Attributable to:Minority interest
    
    
    16
    
    
    
    41
    
    
    
    66
    
    
    
    242
    
    
    
    207
    
    
    
    204Shareholders equity
    
    
    2 934
    
    
    
    2 163
    
    
    
    3 037
    
    
    
    2 093
    
    
    
    1 725
    
    
    
    1 708
  million
    
    
     million
    
    
    
    
    
    
     million
    
    
     millionNV
    
    
    NV
    
    
    
    
    
    
    PLC
    
    
    PLCBalance sheetas at 31 December
    
    2008
    
    
    2007
    
    
    
    
    
    
    2008
    
    
    2007Goodwill and intangible assets
    
    
    10 298
    
    
    
    11 873
    
    
    
    
    
    
    
    5 793
    
    
    
    4 882Property, plant and equipment
    
    
    3 020
    
    
    
    3 392
    
    
    
    
    
    
    
    2 937
    
    
    
    2 892Pension asset for funded schemes in surplus
    
    
    396
    
    
    
    1 665
    
    
    
    
    
    
    
    29
    
    
    
    343Deferred tax assets
    
    
    598
    
    
    
    757
    
    
    
    
    
    
    
    470
    
    
    
    246Other non-current assets
    
    
    931
    
    
    
    844
    
    
    
    
    
    
    
    495
    
    
    
    480Total non-current assets
    
    
    15 243
    
    
    
    18 531
    
    
    
    
    
    
    
    9 724
    
    
    
    8 843Inventories
    
    
    2 228
    
    
    
    2 206
    
    
    
    
    
    
    
    1 661
    
    
    
    1 688Trade and other current receivables
    
    
    2 189
    
    
    
    2 649
    
    
    
    
    
    
    
    1 634
    
    
    
    1 545Cash and cash equivalents
    
    
    2 066
    
    
    
    732
    
    
    
    
    
    
    
    495
    
    
    
    366Other financial assets
    
    
    746
    
    
    
    401
    
    
    
    
    
    
    
    120
    
    
    
    182Assets held for sale
    
    
    21
    
    
    
    92
    
    
    
    
    
    
    
    15
    
    
    
    67Total current assets
    
    
    7 250
    
    
    
    6 080
    
    
    
    
    
    
    
    3 925
    
    
    
    3 848Financial liabilities
    
    
    (3 673
    )
    
    
    (3 354
    )
    
    
    
    
    
    
    (1 169
    )
    
    
    (812
    )Trade payables and other current liabilities
    
    
    (5 069
    )
    
    
    (5 376
    )
    
    
    
    
    
    
    (3 132
    )
    
    
    (3 036
    )Provisions
    
    
    (520
    )
    
    
    (687
    )
    
    
    
    
    
    
    (237
    )
    
    
    (281
    )Liabilities associated with assets held for sale
    
    
    
    
    
    
    (11
    )
    
    
    
    
    
    
    
    
    
    
    (2
    )Total current liabilities
    
    
    (9 262
    )
    
    
    (9 428
    )
    
    
    
    
    
    
    (4 538
    )
    
    
    (4 131
    )Net current assets/(liabilities)
    
    
    (2 012
    )
    
    
    (3 348
    )
    
    
    
    
    
    
    (613
    )
    
    
    (283
    )Total assets less current liabilities
    
    
    13 231
    
    
    
    15 183
    
    
    
    
    
    
    
    9 111
    
    
    
    8 560Financial liabilities due after one year
    
    
    4 997
    
    
    
    4 169
    
    
    
    
    
    
    
    1 366
    
    
    
    1 314Pension and post-retirement healthcare
liabilities:Funded schemes in deficit
    
    
    952
    
    
    
    619
    
    
    
    
    
    
    
    868
    
    
    
    208Unfunded schemes
    
    
    941
    
    
    
    1 091
    
    
    
    
    
    
    
    1 046
    
    
    
    1 179Provisions
    
    
    458
    
    
    
    560
    
    
    
    
    
    
    
    188
    
    
    
    134Deferred tax liabilities
    
    
    619
    
    
    
    1 101
    
    
    
    
    
    
    
    171
    
    
    
    112Other non-current liabilities
    
    
    240
    
    
    
    264
    
    
    
    
    
    
    
    124
    
    
    
    173Total non-current liabilities
    
    
    8 207
    
    
    
    7 804
    
    
    
    
    
    
    
    3 763
    
    
    
    3 120Intra-group  NV/PLC
    
    
    (6 107
    )
    
    
    (858
    )
    
    
    
    
    
    
    6 107
    
    
    
    858Shareholders equity
    
    
    11 091
    
    
    
    8 173
    
    
    
    
    
    
    
    (1 143
    )
    
    
    4 214Minority interests
    
    
    40
    
    
    
    64
    
    
    
    
    
    
    
    384
    
    
    
    368Total equity
    
    
    11 131
    
    
    
    8 237
    
    
    
    
    
    
    
    (759
    )
    
    
    4 582Total capital employed
    
    
    13 231
    
    
    
    15 183
    
    
    
    
    
    
    
    9 111
    
    
    
    8 560
 Unilever Annual Report on Form 20-F 2008 137




---



##### Table of Contents



Unilever Group
  
 35 Guarantor statements
    million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionUnilever
    
    
    Unilever
    
    
    
    
    
    
    UnileverCapital
    
    
    N.V.
    
    
    
    
    
    
    UnitedCorporation
    
    
    parent
    
    
    Unilever PLC
    
    
    States Inc.
    
    
    Non-Income statement
    
    subsidiary
    
    
    issuer/
    
    
    parent
    
    
    subsidiary
    
    
    guarantor
    
    
    
    
    
    
    Unileverfor the year ended 31 December 2008
    
    issuer
    
    
    guarantor
    
    
    guarantor
    
    
    guarantor
    
    
    subsidiaries
    
    
    Eliminations
    
    
    GroupContinuing operations:Turnover
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40 523
    
    
    
    
    
    
    
    40 523Operating profit
    
    
    (1
    )
    
    
    381
    
    
    
    114
    
    
    
    (19
    )
    
    
    6 692
    
    
    
    
    
    
    
    7 167Finance income
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    105
    
    
    
    
    
    
    
    106Finance costs
    
    
    (167
    )
    
    
    (146
    )
    
    
    
    
    
    
    
    
    
    
    (193
    )
    
    
    
    
    
    
    (506
    )Pensions and similar obligations
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    (27
    )
    
    
    169
    
    
    
    
    
    
    
    143Intercompany finance costs
    
    
    196
    
    
    
    42
    
    
    
    42
    
    
    
    (4
    )
    
    
    (276
    )
    
    
    
    
    
    
    Dividends
    
    
    
    
    
    
    1 473
    
    
    
    1 160
    
    
    
    
    
    
    
    (2 633
    )
    
    
    
    
    
    
    Share of net profit/(loss) of joint ventures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    125
    
    
    
    
    
    
    
    125Share of net profit/(loss) of associates
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    
    
    
    
    6Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    88
    
    
    
    
    
    
    
    88Profit before taxation
    
    
    28
    
    
    
    1 752
    
    
    
    1 316
    
    
    
    (50
    )
    
    
    4 083
    
    
    
    
    
    
    
    7 129Taxation
    
    
    (11
    )
    
    
    (41
    )
    
    
    (134
    )
    
    
    (619
    )
    
    
    (1 039
    )
    
    
    
    
    
    
    (1 844
    )Net profit from continuing
operations
    
    
    17
    
    
    
    1 711
    
    
    
    1 182
    
    
    
    (669
    )
    
    
    3 044
    
    
    
    
    
    
    
    5 285Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Equity earnings of subsidiaries
    
    
    
    
    
    
    3 316
    
    
    
    3 845
    
    
    
    1 637
    
    
    
    
    
    
    
    (8 798
    )
    
    
    Net profit
    
    
    17
    
    
    
    5 027
    
    
    
    5 027
    
    
    
    968
    
    
    
    3 044
    
    
    
    (8 798
    )
    
    
    5 285Attributable to:Minority interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    258
    
    
    
    
    
    
    
    258Shareholders equity
    
    
    17
    
    
    
    5 027
    
    
    
    5 027
    
    
    
    968
    
    
    
    2 786
    
    
    
    (8 798
    )
    
    
    5 027Income statementfor the year ended 31 December 2007Continuing operations:Turnover
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40 187
    
    
    
    
    
    
    
    40 187Operating profit
    
    
    (1
    )
    
    
    23
    
    
    
    (36
    )
    
    
    (22
    )
    
    
    5 281
    
    
    
    
    
    
    
    5 245Finance income
    
    
    
    
    
    
    4
    
    
    
    4
    
    
    
    
    
    
    
    139
    
    
    
    
    
    
    
    147Finance costs
    
    
    (182
    )
    
    
    (112
    )
    
    
    (1
    )
    
    
    
    
    
    
    (262
    )
    
    
    
    
    
    
    (557
    )Pensions and similar obligations
    
    
    
    
    
    
    (6
    )
    
    
    
    
    
    
    (33
    )
    
    
    197
    
    
    
    
    
    
    
    158Intercompany finance costs
    
    
    201
    
    
    
    38
    
    
    
    48
    
    
    
    (12
    )
    
    
    (275
    )
    
    
    
    
    
    
    Dividends
    
    
    
    
    
    
    1 536
    
    
    
    1 154
    
    
    
    
    
    
    
    (2 690
    )
    
    
    
    
    
    
    Share of net profit/(loss) of joint ventures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    102
    
    
    
    
    
    
    
    102Share of net profit/(loss) of associates
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    50
    
    
    
    
    
    
    
    50Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39
    
    
    
    
    
    
    
    39Profit before taxation
    
    
    18
    
    
    
    1 483
    
    
    
    1 169
    
    
    
    (67
    )
    
    
    2 581
    
    
    
    
    
    
    
    5 184Taxation
    
    
    (7
    )
    
    
    (91
    )
    
    
    (89
    )
    
    
    (52
    )
    
    
    (889
    )
    
    
    
    
    
    
    (1 128
    )Net profit from continuing operations
    
    
    11
    
    
    
    1 392
    
    
    
    1 080
    
    
    
    (119
    )
    
    
    1 692
    
    
    
    
    
    
    
    4 056Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    80
    
    
    
    
    
    
    
    80Equity earnings of subsidiaries
    
    
    
    
    
    
    2 496
    
    
    
    2 808
    
    
    
    611
    
    
    
    
    
    
    
    (5 915
    )
    
    
    Net profit
    
    
    11
    
    
    
    3 888
    
    
    
    3 888
    
    
    
    492
    
    
    
    1 772
    
    
    
    (5 915
    )
    
    
    4 136Attributable to:Minority interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    248
    
    
    
    
    
    
    
    248Shareholders equity
    
    
    11
    
    
    
    3 888
    
    
    
    3 888
    
    
    
    492
    
    
    
    1 524
    
    
    
    (5 915
    )
    
    
    3 888
 138 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  35 Guarantor statements
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionUnilever
    
    
    Unilever
    
    
    
    
    
    
    UnileverCapital
    
    
    N.V.
    
    
    
    
    
    
    UnitedCorporation
    
    
    parent
    
    
    Unilever PLC
    
    
    States Inc.
    
    
    Non-Income statement
    
    subsidiary
    
    
    issuer/
    
    
    parent
    
    
    subsidiary
    
    
    guarantor
    
    
    
    
    
    
    Unileverfor the year ended 31 December 2006
    
    issuer
    
    
    guarantor
    
    
    guarantor
    
    
    guarantor
    
    
    subsidiaries
    
    
    Eliminations
    
    
    GroupContinuing operations:Turnover
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    39 642
    
    
    
    
    
    
    
    39 642Operating profit
    
    
    (1
    )
    
    
    (126
    )
    
    
    (108
    )
    
    
    (16
    )
    
    
    5 659
    
    
    
    
    
    
    
    5 408Finance income
    
    
    
    
    
    
    38
    
    
    
    5
    
    
    
    1
    
    
    
    84
    
    
    
    
    
    
    
    128Finance costs
    
    
    (169
    )
    
    
    (662
    )
    
    
    
    
    
    
    
    
    
    
    (59
    )
    
    
    
    
    
    
    (890
    )Pensions and similar obligations
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    (61
    )
    
    
    107
    
    
    
    
    
    
    
    41Intercompany finance costs
    
    
    187
    
    
    
    805
    
    
    
    (20
    )
    
    
    (29
    )
    
    
    (943
    )
    
    
    
    
    
    
    Dividends
    
    
    
    
    
    
    1 916
    
    
    
    1 337
    
    
    
    
    
    
    
    (3 253
    )
    
    
    
    
    
    
    Share of net profit/(loss) of joint ventures
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    78
    
    
    
    
    
    
    
    78Share of net profit/(loss) of associates
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36
    
    
    
    
    
    
    
    36Other income from non-current investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30
    
    
    
    
    
    
    
    30Profit before taxation
    
    
    17
    
    
    
    1 966
    
    
    
    1 214
    
    
    
    (105
    )
    
    
    1 739
    
    
    
    
    
    
    
    4 831Taxation
    
    
    (6
    )
    
    
    (119
    )
    
    
    16
    
    
    
    76
    
    
    
    (1 113
    )
    
    
    
    
    
    
    (1 146
    )Net profit from continuing
operations
    
    
    11
    
    
    
    1 847
    
    
    
    1 230
    
    
    
    (29
    )
    
    
    626
    
    
    
    
    
    
    
    3 685Net profit from discontinued operations
    
    
    
    
    
    
    
    
    
    
    180
    
    
    
    
    
    
    
    1 150
    
    
    
    
    
    
    
    1 330Equity earnings of subsidiaries
    
    
    
    
    
    
    2 898
    
    
    
    3 335
    
    
    
    567
    
    
    
    
    
    
    
    (6 800
    )
    
    
    Net profit
    
    
    11
    
    
    
    4 745
    
    
    
    4 745
    
    
    
    538
    
    
    
    1 776
    
    
    
    (6 800
    )
    
    
    5 015Attributable to:Minority interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    270
    
    
    
    
    
    
    
    270Shareholders equity
    
    
    11
    
    
    
    4 745
    
    
    
    4 745
    
    
    
    538
    
    
    
    1 506
    
    
    
    (6 800
    )
    
    
    4 745
 Unilever Annual Report on Form 20-F 2008 139




---



##### Table of Contents



Unilever Group
  35 Guarantor statements
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionUnilever
    
    
    Unilever
    
    
    
    
    
    
    UnileverCapital
    
    
    N.V.
    
    
    
    
    
    
    UnitedCorporation
    
    
    parent
    
    
    Unilever PLC
    
    
    States Inc.
    
    
    Non-subsidiary
    
    
    issuer/
    
    
    parent
    
    
    subsidiary
    
    
    guarantor
    
    
    
    
    
    
    UnileverBalance sheet as at 31 December 2008
    
    issuer
    
    
    guarantor
    
    
    guarantor
    
    
    guarantor
    
    
    subsidiaries
    
    
    Eliminations
    
    
    GroupGoodwill and intangible assets
    
    
    
    
    
    
    51
    
    
    
    23
    
    
    
    
    
    
    
    16 017
    
    
    
    
    
    
    
    16 091Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    5 956
    
    
    
    
    
    
    
    5 957Pension asset for funded schemes in surplus
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    425
    
    
    
    
    
    
    
    425Deferred tax assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    777
    
    
    
    291
    
    
    
    
    
    
    
    1 068Other non-current assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    15
    
    
    
    1 411
    
    
    
    
    
    
    
    1 426Amounts due from group companies after one year
    
    
    3 960
    
    
    
    2 919
    
    
    
    
    
    
    
    
    
    
    
    (6 879
    )
    
    
    
    
    
    
    Net assets of subsidiaries (equity accounted)
    
    
    
    
    
    
    28 829
    
    
    
    12 788
    
    
    
    9 534
    
    
    
    (30 789
    )
    
    
    (20 362
    )
    
    
    Total non-current assets
    
    
    3 960
    
    
    
    31 799
    
    
    
    12 811
    
    
    
    10 327
    
    
    
    (13 568
    )
    
    
    (20 362
    )
    
    
    24 967Inventories
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3 889
    
    
    
    
    
    
    
    3 889Amounts due from group companies within one year
    
    
    
    
    
    
    2 570
    
    
    
    611
    
    
    
    
    
    
    
    (3 181
    )
    
    
    
    
    
    
    Trade and other current receivables
    
    
    
    
    
    
    61
    
    
    
    (2
    )
    
    
    5
    
    
    
    3 759
    
    
    
    
    
    
    
    3 823Current tax assets
    
    
    
    
    
    
    24
    
    
    
    
    
    
    
    80
    
    
    
    130
    
    
    
    
    
    
    
    234Other financial assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    632
    
    
    
    
    
    
    
    632Cash and cash equivalents
    
    
    (3
    )
    
    
    7
    
    
    
    
    
    
    
    (4
    )
    
    
    2 561
    
    
    
    
    
    
    
    2 561Assets held for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36
    
    
    
    
    
    
    
    36Total current assets
    
    
    (3
    )
    
    
    2 662
    
    
    
    609
    
    
    
    81
    
    
    
    7 826
    
    
    
    
    
    
    
    11 175Financial liabilities
    
    
    (1 755
    )
    
    
    (772
    )
    
    
    
    
    
    
    
    
    
    
    (2 315
    )
    
    
    
    
    
    
    (4 842
    )Amounts due to group companies within one year
    
    
    
    
    
    
    (17 181
    )
    
    
    (3 351
    )
    
    
    
    
    
    
    20 532
    
    
    
    
    
    
    
    Trade payables and other current liabilities
    
    
    (24
    )
    
    
    (153
    )
    
    
    (7
    )
    
    
    (18
    )
    
    
    (7 622
    )
    
    
    
    
    
    
    (7 824
    )Current tax liabilities
    
    
    (11
    )
    
    
    (15
    )
    
    
    (101
    )
    
    
    2
    
    
    
    (252
    )
    
    
    
    
    
    
    (377
    )Provisions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (757
    )
    
    
    
    
    
    
    (757
    )Liabilities associated with assets held for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total current liabilities
    
    
    (1 790
    )
    
    
    (18 121
    )
    
    
    (3 459
    )
    
    
    (16
    )
    
    
    9 586
    
    
    
    
    
    
    
    (13 800
    )Net current assets/(liabilities)
    
    
    (1 793
    )
    
    
    (15 459
    )
    
    
    (2 850
    )
    
    
    65
    
    
    
    17 412
    
    
    
    
    
    
    
    (2 625
    )Total assets less current liabilities
    
    
    2 167
    
    
    
    16 340
    
    
    
    9 961
    
    
    
    10 392
    
    
    
    3 844
    
    
    
    (20 362
    )
    
    
    22 342Financial liabilities due after one year
    
    
    1 923
    
    
    
    3 080
    
    
    
    
    
    
    
    (2
    )
    
    
    1 362
    
    
    
    
    
    
    
    6 363Amounts due to group companies after one year
    
    
    
    
    
    
    3 089
    
    
    
    
    
    
    
    666
    
    
    
    (3 755
    )
    
    
    
    
    
    
    Pensions and post-retirement healthcare
liabilities:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Funded schemes in deficit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    449
    
    
    
    1 371
    
    
    
    
    
    
    
    1 820Unfunded schemes
    
    
    
    
    
    
    85
    
    
    
    
    
    
    
    712
    
    
    
    1 190
    
    
    
    
    
    
    
    1 987Provisions
    
    
    
    
    
    
    41
    
    
    
    
    
    
    
    3
    
    
    
    602
    
    
    
    
    
    
    
    646Deferred tax liabilities
    
    
    
    
    
    
    64
    
    
    
    13
    
    
    
    
    
    
    
    713
    
    
    
    
    
    
    
    790Other non-current liabilities
    
    
    
    
    
    
    33
    
    
    
    
    
    
    
    122
    
    
    
    209
    
    
    
    
    
    
    
    364Total non-current liabilities
    
    
    1 923
    
    
    
    6 392
    
    
    
    13
    
    
    
    1 950
    
    
    
    1 692
    
    
    
    
    
    
    
    11 970Shareholders equity attributable to:NV
    
    
    
    
    
    
    
    
    
    
    11 091
    
    
    
    
    
    
    
    
    
    
    
    (11 091
    )
    
    
    PLC
    
    
    
    
    
    
    (1 143
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1 143
    
    
    
    Called up share capital
    
    
    
    
    
    
    274
    
    
    
    210
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    484Share premium account
    
    
    
    
    
    
    25
    
    
    
    96
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    121Other reserves
    
    
    (1
    )
    
    
    (4 551
    )
    
    
    (1 918
    )
    
    
    (101
    )
    
    
    (2 479
    )
    
    
    2 581
    
    
    
    (6 469
    )Retained profit
    
    
    245
    
    
    
    15 343
    
    
    
    469
    
    
    
    8 543
    
    
    
    4 207
    
    
    
    (12 995
    )
    
    
    15 812Total shareholders equity
    
    
    244
    
    
    
    9 948
    
    
    
    9 948
    
    
    
    8 442
    
    
    
    1 728
    
    
    
    (20 362
    )
    
    
    9 948Minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    424
    
    
    
    
    
    
    
    424Total equity
    
    
    244
    
    
    
    9 948
    
    
    
    9 948
    
    
    
    8 442
    
    
    
    2 152
    
    
    
    (20 362
    )
    
    
    10 372Total capital employed
    
    
    2 167
    
    
    
    16 340
    
    
    
    9 961
    
    
    
    10 392
    
    
    
    3 844
    
    
    
    (20 362
    )
    
    
    22 342
 140 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  35 Guarantor statements
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionUnilever
    
    
    Unilever
    
    
    
    
    
    
    UnileverCapital
    
    
    N.V.
    
    
    
    
    
    
    UnitedCorporation
    
    
    parent
    
    
    Unilever PLC
    
    
    States Inc.
    
    
    Non-subsidiary
    
    
    issuer/
    
    
    parent
    
    
    subsidiary
    
    
    guarantor
    
    
    
    
    
    
    UnileverBalance
sheet as at 31 December 2007
    
    issuer
    
    
    guarantor
    
    
    guarantor
    
    
    guarantor
    
    
    subsidiaries
    
    
    Eliminations
    
    
    GroupGoodwill and intangible assets
    
    
    
    
    
    
    54
    
    
    
    42
    
    
    
    
    
    
    
    16 659
    
    
    
    
    
    
    
    16 755Property, plant and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    6 283
    
    
    
    
    
    
    
    6 284Pension asset for funded schemes in surplus
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2 008
    
    
    
    
    
    
    
    2 008Deferred tax assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    685
    
    
    
    318
    
    
    
    
    
    
    
    1 003Other non-current assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12
    
    
    
    1 312
    
    
    
    
    
    
    
    1 324Amounts due from group companies after one year
    
    
    3 154
    
    
    
    2 250
    
    
    
    4
    
    
    
    
    
    
    
    (5 408
    )
    
    
    
    
    
    
    Net assets of subsidiaries (equity accounted)
    
    
    
    
    
    
    28 915
    
    
    
    13 341
    
    
    
    8 991
    
    
    
    (27 594
    )
    
    
    (23 653
    )
    
    
    Total non-current assets
    
    
    3 154
    
    
    
    31 219
    
    
    
    13 387
    
    
    
    9 689
    
    
    
    (6 422
    )
    
    
    (23 653
    )
    
    
    27 374Inventories
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3 894
    
    
    
    
    
    
    
    3 894Amounts due from group companies within one year
    
    
    
    
    
    
    848
    
    
    
    2 134
    
    
    
    
    
    
    
    (2 982
    )
    
    
    
    
    
    
    Trade and other current receivables
    
    
    
    
    
    
    80
    
    
    
    (3
    )
    
    
    
    
    
    
    4 117
    
    
    
    
    
    
    
    4 194Current tax assets
    
    
    
    
    
    
    38
    
    
    
    
    
    
    
    59
    
    
    
    270
    
    
    
    
    
    
    
    367Cash and cash equivalents
    
    
    1
    
    
    
    2
    
    
    
    
    
    
    
    (2
    )
    
    
    1 097
    
    
    
    
    
    
    
    1 098Other financial assets
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    216
    
    
    
    
    
    
    
    216Assets held for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    159
    
    
    
    
    
    
    
    159Total current assets
    
    
    1
    
    
    
    968
    
    
    
    2 131
    
    
    
    57
    
    
    
    6 771
    
    
    
    
    
    
    
    9 928Financial liabilities
    
    
    (1 024
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3 142
    )
    
    
    
    
    
    
    (4 166
    )Amounts due to group companies within one year
    
    
    
    
    
    
    (17 001
    )
    
    
    (2 952
    )
    
    
    (1
    )
    
    
    19 954
    
    
    
    
    
    
    
    Trade payables and other current liabilities
    
    
    (23
    )
    
    
    (162
    )
    
    
    3
    
    
    
    (21
    )
    
    
    (7 814
    )
    
    
    
    
    
    
    (8 017
    )Current tax liabilities
    
    
    (6
    )
    
    
    
    
    
    
    (168
    )
    
    
    (3
    )
    
    
    (218
    )
    
    
    
    
    
    
    (395
    )Provisions
    
    
    
    
    
    
    (24
    )
    
    
    
    
    
    
    (1
    )
    
    
    (943
    )
    
    
    
    
    
    
    (968
    )Liabilities associated with assets held for sale
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (13
    )
    
    
    
    
    
    
    (13
    )Total current liabilities
    
    
    (1 053
    )
    
    
    (17 187
    )
    
    
    (3 117
    )
    
    
    (26
    )
    
    
    7 824
    
    
    
    
    
    
    
    (13 559
    )Net current assets/(liabilities)
    
    
    (1 052
    )
    
    
    (16 219
    )
    
    
    (986
    )
    
    
    31
    
    
    
    14 595
    
    
    
    
    
    
    
    (3 631
    )Total assets less current liabilities
    
    
    2 102
    
    
    
    15 000
    
    
    
    12 401
    
    
    
    9 720
    
    
    
    8 173
    
    
    
    (23 653
    )
    
    
    23 743Financial liabilities due after one year
    
    
    1 899
    
    
    
    2 364
    
    
    
    
    
    
    
    
    
    
    
    1 220
    
    
    
    
    
    
    
    5 483Amounts due to group companies after one year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Pensions and post-retirement healthcare
liabilities:
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Funded schemes in deficit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8
    
    
    
    819
    
    
    
    
    
    
    
    827Unfunded schemes
    
    
    
    
    
    
    134
    
    
    
    
    
    
    
    725
    
    
    
    1 411
    
    
    
    
    
    
    
    2 270Provisions
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    693
    
    
    
    
    
    
    
    694Deferred tax liabilities
    
    
    
    
    
    
    63
    
    
    
    14
    
    
    
    
    
    
    
    1 136
    
    
    
    
    
    
    
    1 213Other non-current liabilities
    
    
    
    
    
    
    52
    
    
    
    
    
    
    
    104
    
    
    
    281
    
    
    
    
    
    
    
    437Total non-current liabilities
    
    
    1 899
    
    
    
    2 613
    
    
    
    14
    
    
    
    838
    
    
    
    5 560
    
    
    
    
    
    
    
    10 924Shareholders equity attributable to:NV
    
    
    
    
    
    
    
    
    
    
    8 173
    
    
    
    
    
    
    
    
    
    
    
    (8 173
    )
    
    
    PLC
    
    
    
    
    
    
    4 214
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4 214
    )
    
    
    Called up share capital
    
    
    
    
    
    
    274
    
    
    
    210
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    484Share premium account
    
    
    
    
    
    
    25
    
    
    
    128
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    153Other reserves
    
    
    (9
    )
    
    
    (2 529
    )
    
    
    (883
    )
    
    
    (417
    )
    
    
    (613
    )
    
    
    1 039
    
    
    
    (3 412
    )Retained profit
    
    
    212
    
    
    
    10 403
    
    
    
    4 759
    
    
    
    9 299
    
    
    
    2 794
    
    
    
    (12 305
    )
    
    
    15 162Total shareholders equity
    
    
    203
    
    
    
    12 387
    
    
    
    12 387
    
    
    
    8 882
    
    
    
    2 181
    
    
    
    (23 653
    )
    
    
    12 387Minority interests
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    432
    
    
    
    
    
    
    
    432Total equity
    
    
    203
    
    
    
    12 387
    
    
    
    12 387
    
    
    
    8 882
    
    
    
    2 613
    
    
    
    (23 653
    )
    
    
    12 819Total capital employed
    
    
    2 102
    
    
    
    15 000
    
    
    
    12 401
    
    
    
    9 720
    
    
    
    8 173
    
    
    
    (23 653
    )
    
    
    23 743
 Unilever Annual Report on Form 20-F 2008 141




---



##### Table of Contents



Unilever Group
  35 Guarantor statements
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionUnilever
    
    
    Unilever
    
    
    
    
    
    
    UnileverCapital
    
    
    N.V.
    
    
    
    
    
    
    UnitedCorporation
    
    
    parent
    
    
    Unilever PLC
    
    
    States Inc.
    
    
    Non-Cash flow statement
    
    subsidiary
    
    
    issuer/
    
    
    parent
    
    
    subsidiary
    
    
    guarantor
    
    
    
    
    
    
    Unileverfor the year ended 31 December 2008
    
    issuer
    
    
    guarantor
    
    
    guarantor
    
    
    guarantor
    
    
    subsidiaries
    
    
    Eliminations
    
    
    GroupCash flow from operating activities
    
    
    
    
    
    
    73
    
    
    
    (527
    )
    
    
    568
    
    
    
    5 212
    
    
    
    
    
    
    
    5 326Income tax paid
    
    
    
    
    
    
    (10
    )
    
    
    (162
    )
    
    
    (533
    )
    
    
    (750
    )
    
    
    
    
    
    
    (1 455
    )Net cash flow from operating activities
    
    
    
    
    
    
    63
    
    
    
    (689
    )
    
    
    35
    
    
    
    4 462
    
    
    
    
    
    
    
    3 871Interest received
    
    
    196
    
    
    
    3
    
    
    
    31
    
    
    
    
    
    
    
    151
    
    
    
    (276
    )
    
    
    105Net capital expenditure
    
    
    
    
    
    
    (2
    )
    
    
    
    
    
    
    2
    
    
    
    (1 099
    )
    
    
    
    
    
    
    (1 099
    )Acquisitions and disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2 265
    
    
    
    
    
    
    
    2 265Other investing activities
    
    
    
    
    
    
    (675
    )
    
    
    (2 665
    )
    
    
    
    
    
    
    843
    
    
    
    2 641
    
    
    
    144Net cash flow from/(used in) investing
activities
    
    
    196
    
    
    
    (674
    )
    
    
    (2 634
    )
    
    
    2
    
    
    
    2 160
    
    
    
    2 365
    
    
    
    1 415Dividends paid on ordinary share capital
    
    
    
    
    
    
    297
    
    
    
    271
    
    
    
    
    
    
    
    (2 654
    )
    
    
    
    
    
    
    (2 086
    )Interest and preference dividends paid
    
    
    (166
    )
    
    
    (111
    )
    
    
    
    
    
    
    (4
    )
    
    
    (482
    )
    
    
    276
    
    
    
    (487
    )Change in borrowings and finance leases
    
    
    (34
    )
    
    
    1 490
    
    
    
    3 315
    
    
    
    
    
    
    
    (1 080
    )
    
    
    (2 641
    )
    
    
    1 050Share buy-back programme
    
    
    
    
    
    
    (1 225
    )
    
    
    (278
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 503
    )Other movement in treasury stocks
    
    
    
    
    
    
    165
    
    
    
    15
    
    
    
    (40
    )
    
    
    (37
    )
    
    
    
    
    
    
    103Other finance activities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (207
    )
    
    
    
    
    
    
    (207
    )Net cash flow from/(used in) financing
activities
    
    
    (200
    )
    
    
    616
    
    
    
    3 323
    
    
    
    (44
    )
    
    
    (4 460
    )
    
    
    (2 365
    )
    
    
    (3 130
    )Net increase/(decrease) in cash and
cash equivalents
    
    
    (4
    )
    
    
    5
    
    
    
    
    
    
    
    (7
    )
    
    
    2 162
    
    
    
    
    
    
    
    2 156Cash and cash equivalents at the beginning
of the year
    
    
    1
    
    
    
    2
    
    
    
    
    
    
    
    (2
    )
    
    
    900
    
    
    
    
    
    
    
    901Effect of foreign exchange rate changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    (702
    )
    
    
    
    
    
    
    (697
    )Cash and cash equivalents at the end of
the year
    
    
    (3
    )
    
    
    7
    
    
    
    
    
    
    
    (4
    )
    
    
    2 360
    
    
    
    
    
    
    
    2 360Cash flow statement
for the year ended 31 December 2007Cash flow from operating activities
    
    
    (8
    )
    
    
    (10
    )
    
    
    (54
    )
    
    
    (67
    )
    
    
    5 327
    
    
    
    
    
    
    
    5 188Income tax paid
    
    
    
    
    
    
    (131
    )
    
    
    (21
    )
    
    
    (58
    )
    
    
    (1 102
    )
    
    
    
    
    
    
    (1 312
    )Net cash flow from operating
activities
    
    
    (8
    )
    
    
    (141
    )
    
    
    (75
    )
    
    
    (125
    )
    
    
    4 225
    
    
    
    
    
    
    
    3 876Interest received
    
    
    201
    
    
    
    33
    
    
    
    54
    
    
    
    
    
    
    
    131
    
    
    
    (273
    )
    
    
    146Net capital expenditure
    
    
    
    
    
    
    (14
    )
    
    
    
    
    
    
    2
    
    
    
    (971
    )
    
    
    
    
    
    
    (983
    )Acquisitions and disposals
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (50
    )
    
    
    
    
    
    
    (50
    )Other investing activities
    
    
    (921
    )
    
    
    1 375
    
    
    
    (84
    )
    
    
    190
    
    
    
    (706
    )
    
    
    410
    
    
    
    264Net cash flow from/(used in) investing
activities
    
    
    (720
    )
    
    
    1 394
    
    
    
    (30
    )
    
    
    192
    
    
    
    (1 596
    )
    
    
    137
    
    
    
    (623
    )Dividends paid on ordinary share capital
    
    
    
    
    
    
    357
    
    
    
    232
    
    
    
    
    
    
    
    (2 771
    )
    
    
    
    
    
    
    (2 182
    )Interest and preference dividends paid
    
    
    (177
    )
    
    
    (95
    )
    
    
    (1
    )
    
    
    (12
    )
    
    
    (540
    )
    
    
    273
    
    
    
    (552
    )Change in borrowings and finance leases
    
    
    906
    
    
    
    (6
    )
    
    
    (235
    )
    
    
    
    
    
    
    1 083
    
    
    
    (410
    )
    
    
    1 338Share buy-back programme
    
    
    
    
    
    
    (1 500
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1 500
    )Other movement in treasury stocks
    
    
    
    
    
    
    291
    
    
    
    105
    
    
    
    (57
    )
    
    
    103
    
    
    
    
    
    
    
    442Other finance activities
    
    
    
    
    
    
    (305
    )
    
    
    
    
    
    
    
    
    
    
    (250
    )
    
    
    
    
    
    
    (555
    )Net cash flow from/(used in) financing
activities
    
    
    729
    
    
    
    (1 258
    )
    
    
    101
    
    
    
    (69
    )
    
    
    (2 375
    )
    
    
    (137
    )
    
    
    (3 009
    )Net increase/(decrease) in cash and
cash equivalents
    
    
    1
    
    
    
    (5
    )
    
    
    (4
    )
    
    
    (2
    )
    
    
    254
    
    
    
    
    
    
    
    244Cash and cash equivalents at the beginning
of the year
    
    
    
    
    
    
    7
    
    
    
    4
    
    
    
    (5
    )
    
    
    704
    
    
    
    
    
    
    
    710Effect of foreign exchange rate changes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    (58
    )
    
    
    
    
    
    
    (53
    )Cash and cash equivalents at the end
of the year
    
    
    1
    
    
    
    2
    
    
    
    
    
    
    
    (2
    )
    
    
    900
    
    
    
    
    
    
    
    901
 142 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  35 Guarantor statements
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionUnilever
    
    
    Unilever
    
    
    
    
    
    
    UnileverCapital
    
    
    N.V.
    
    
    
    
    
    
    UnitedCorporation
    
    
    parent
    
    
    Unilever PLC
    
    
    States Inc.
    
    
    Non-Cash flow statement
    
    subsidiary
    
    
    issuer/
    
    
    parent
    
    
    subsidiary
    
    
    guarantor
    
    
    
    
    
    
    Unileverfor the year ended 31 December 2006
    
    issuer
    
    
    guarantor
    
    
    guarantor
    
    
    guarantor
    
    
    subsidiaries
    
    
    Eliminations
    
    
    GroupCash flow from operating activities
    
    
    1
    
    
    
    (336
    )
    
    
    (17
    )
    
    
    (408
    )
    
    
    6 334
    
    
    
    
    
    
    
    5 574Income tax paid
    
    
    
    
    
    
    (163
    )
    
    
    42
    
    
    
    (33
    )
    
    
    (909
    )
    
    
    
    
    
    
    (1 063
    )Net cash flow from operating activities
    
    
    1
    
    
    
    (499
    )
    
    
    25
    
    
    
    (441
    )
    
    
    5 425
    
    
    
    
    
    
    
    4 511Interest received
    
    
    187
    
    
    
    995
    
    
    
    5
    
    
    
    
    
    
    
    33
    
    
    
    (1 095
    )
    
    
    125Net capital expenditure
    
    
    
    
    
    
    (28
    )
    
    
    
    
    
    
    (3
    )
    
    
    (903
    )
    
    
    
    
    
    
    (934
    )Acquisitions and disposals
    
    
    
    
    
    
    
    
    
    
    212
    
    
    
    
    
    
    
    1 565
    
    
    
    
    
    
    
    1 777Other investing activities
    
    
    (324
    )
    
    
    3 799
    
    
    
    
    
    
    
    480
    
    
    
    (7 302
    )
    
    
    3 534
    
    
    
    187Net cash flow from/(used in) investing activities
    
    
    (137
    )
    
    
    4 766
    
    
    
    217
    
    
    
    477
    
    
    
    (6 607
    )
    
    
    2 439
    
    
    
    1 155Dividends 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
    )
    
    
    
    
    
    
    98Other 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 265Effect of foreign exchange rate changes
    
    
    (3
    )
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    349
    
    
    
    
    
    
    
    351Cash and cash equivalents at the end of the year
    
    
    
    
    
    
    7
    
    
    
    4
    
    
    
    (5
    )
    
    
    704
    
    
    
    
    
    
    
    710
 Unilever Annual Report on Form 20-F 2008 143




---



##### Table of Contents



Unilever Group
  Selected financial data under IFRS
   million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionConsolidated income statement
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Continuing operations:Turnover
    
    
    40 523
    
    
    
    40 187
    
    
    
    39 642
    
    
    
    38 401
    
    
    
    37 168Operating profit
    
    
    7 167
    
    
    
    5 245
    
    
    
    5 408
    
    
    
    5 074
    
    
    
    3 981Net finance costs
    
    
    (257
    )
    
    
    (252
    )
    
    
    (721
    )
    
    
    (613
    )
    
    
    (623
    )Income from non-current investments
    
    
    219
    
    
    
    191
    
    
    
    144
    
    
    
    55
    
    
    
    95Profit before taxation
    
    
    7 129
    
    
    
    5 184
    
    
    
    4 831
    
    
    
    4 516
    
    
    
    3 453Taxation
    
    
    (1 844
    )
    
    
    (1 128
    )
    
    
    (1 146
    )
    
    
    (1 181
    )
    
    
    (725
    )Net profit from continuing operations
    
    
    5 285
    
    
    
    4 056
    
    
    
    3 685
    
    
    
    3 335
    
    
    
    2 728Net profit from discontinued operations
    
    
    
    
    
    
    80
    
    
    
    1 330
    
    
    
    640
    
    
    
    213Net profit
    
    
    5 285
    
    
    
    4 136
    
    
    
    5 015
    
    
    
    3 975
    
    
    
    2 941Attributable to:Minority interests
    
    
    258
    
    
    
    248
    
    
    
    270
    
    
    
    209
    
    
    
    186Shareholders equity
    
    
    5 027
    
    
    
    3 888
    
    
    
    4 745
    
    
    
    3 766
    
    
    
    2 755
 
    
    
    
    
    
    
    
    
    
    
    
    Combined earnings per share(a)
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Continuing operations:Basic earnings per share
    
    
    1.79
    
    
    
    1.32
    
    
    
    1.19
    
    
    
    1.07
    
    
    
    0.87Diluted earnings per share
    
    
    1.73
    
    
    
    1.28
    
    
    
    1.15
    
    
    
    1.04
    
    
    
    0.84Total operations:Basic earnings per share
    
    
    1.79
    
    
    
    1.35
    
    
    
    1.65
    
    
    
    1.29
    
    
    
    0.94Diluted earnings per share
    
    
    1.73
    
    
    
    1.31
    
    
    
    1.60
    
    
    
    1.25
    
    
    
    0.91
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionConsolidated balance sheet
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Non-current assets
    
    
    24 967
    
    
    
    27 374
    
    
    
    27 571
    
    
    
    28 358
    
    
    
    26 368Current assets
    
    
    11 175
    
    
    
    9 928
    
    
    
    9 501
    
    
    
    11 142
    
    
    
    10 490Current liabilities
    
    
    (13 800
    )
    
    
    (13 559
    )
    
    
    (13 884
    )
    
    
    (15 394
    )
    
    
    (14 186
    )Total assets less current liabilities
    
    
    22 342
    
    
    
    23 743
    
    
    
    23 188
    
    
    
    24 106
    
    
    
    22 672Non-current liabilities
    
    
    11 970
    
    
    
    10 924
    
    
    
    11 516
    
    
    
    15 341
    
    
    
    15 043Shareholders equity
    
    
    9 948
    
    
    
    12 387
    
    
    
    11 230
    
    
    
    8 361
    
    
    
    7 264Minority interests
    
    
    424
    
    
    
    432
    
    
    
    442
    
    
    
    404
    
    
    
    365Total equity
    
    
    10 372
    
    
    
    12 819
    
    
    
    11 672
    
    
    
    8 765
    
    
    
    7 629Total capital employed
    
    
    22 342
    
    
    
    23 743
    
    
    
    23 188
    
    
    
    24 106
    
    
    
    22 672
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionConsolidated cash flow statement
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Net cash flow from operating activities
    
    
    3 871
    
    
    
    3 876
    
    
    
    4 511
    
    
    
    4 353
    
    
    
    5 547Net cash flow from/(used in) investing activities
    
    
    1 415
    
    
    
    (623
    )
    
    
    1 155
    
    
    
    515
    
    
    
    (120
    )Net cash flow from/(used in) financing activities
    
    
    (3 130
    )
    
    
    (3 009
    )
    
    
    (6 572
    )
    
    
    (4 821
    )
    
    
    (5 938
    )Net increase/(decrease) in cash and cash equivalents
    
    
    2 156
    
    
    
    244
    
    
    
    (906
    )
    
    
    47
    
    
    
    (511
    )Cash and cash equivalents at the beginning of the year
    
    
    901
    
    
    
    710
    
    
    
    1 265
    
    
    
    1 406
    
    
    
    1 428Effect of foreign exchange rates
    
    
    (697
    )
    
    
    (53
    )
    
    
    351
    
    
    
    (188
    )
    
    
    489Cash and cash equivalents at the end of the year
    
    
    2 360
    
    
    
    901
    
    
    
    710
    
    
    
    1 265
    
    
    
    1 406
 Ratios and other metrics
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Operating margin (%)
    
    
    17.7
    
    
    
    13.1
    
    
    
    13.6
    
    
    
    13.2
    
    
    
    10.7Net profit margin (%)(b)
    
    
    12.4
    
    
    
    9.7
    
    
    
    12.0
    
    
    
    9.8
    
    
    
    7.4Ungeared free cash flow ( million)(c)
    
    
    3 236
    
    
    
    3 769
    
    
    
    4 222
    
    
    
    4 011
    
    
    
    5 346Return on invested capital (%)(d)
    
    
    15.7
    
    
    
    12.7
    
    
    
    14.6
    
    
    
    12.5
    
    
    
    10.7Ratio of earnings to fixed charges (times)(e)
    
    
    11.7
    
    
    
    8.3
    
    
    
    7.5
    
    
    
    6.5
    
    
    
    5.1
 
 (a)
    
    For the basis of the calculations of combined earnings per share see note 7 on page 96.(b)
    
    Net profit margin is expressed as net profit attributable to shareholders equity as a
percentage of turnover from continuing operations.(c)
    
    Ungeared free cash flow is a non-GAAP measure and is defined and
described on page 41.(d)
    
    Return on invested capital is a non-GAAP measure and is defined and described on page 42.(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. 144 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Unilever Group
  Selected
financial data under IFRS (continued)
  million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionBy geographical area
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004TurnoverWestern Europe
    
    
    12 853
    
    
    
    13 327
    
    
    
    13 322
    
    
    
    13 412
    
    
    
    13 900The Americas
    
    
    13 199
    
    
    
    13 442
    
    
    
    13 779
    
    
    
    13 179
    
    
    
    12 296Asia Africa CEE
    
    
    14 471
    
    
    
    13 418
    
    
    
    12 541
    
    
    
    11 810
    
    
    
    10 97240 523
    
    
    
    40 187
    
    
    
    39 642
    
    
    
    38 401
    
    
    
    37 168Operating profitWestern Europe
    
    
    2 521
    
    
    
    1 563
    
    
    
    1 787
    
    
    
    1 942
    
    
    
    1 989The Americas
    
    
    2 945
    
    
    
    1 971
    
    
    
    2 178
    
    
    
    1 719
    
    
    
    896Asia Africa CEE
    
    
    1 701
    
    
    
    1 711
    
    
    
    1 443
    
    
    
    1 413
    
    
    
    1 0967 167
    
    
    
    5 245
    
    
    
    5 408
    
    
    
    5 074
    
    
    
    3 981Total assetsWestern Europe
    
    
    12 094
    
    
    
    12 960
    
    
    
    12 855
    
    
    
    13 647
    
    
    
    14 144The Americas
    
    
    9 997
    
    
    
    10 878
    
    
    
    11 564
    
    
    
    12 569
    
    
    
    11 486Asia Africa CEE
    
    
    8 226
    
    
    
    8 034
    
    
    
    7 518
    
    
    
    7 837
    
    
    
    5 811Corporate
    
    
    5 825
    
    
    
    5 430
    
    
    
    5 135
    
    
    
    5 447
    
    
    
    5 41736 142
    
    
    
    37 302
    
    
    
    37 072
    
    
    
    39 500
    
    
    
    36 858Capital expenditureWestern Europe
    
    
    428
    
    
    
    586
    
    
    
    401
    
    
    
    395
    
    
    
    448The Americas
    
    
    397
    
    
    
    342
    
    
    
    396
    
    
    
    305
    
    
    
    297Asia Africa CEE
    
    
    655
    
    
    
    497
    
    
    
    404
    
    
    
    350
    
    
    
    3541 480
    
    
    
    1 425
    
    
    
    1 201
    
    
    
    1 050
    
    
    
    1 099
   million
    
    
     million
    
    
     million
    
    
     million
    
    
     millionBy operation
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004TurnoverFoods
    
    
    21 926
    
    
    
    21 588
    
    
    
    21 345
    
    
    
    20 889
    
    
    
    20 566Home and Personal Care
    
    
    18 597
    
    
    
    18 599
    
    
    
    18 297
    
    
    
    17 512
    
    
    
    16 60240 523
    
    
    
    40 187
    
    
    
    39 642
    
    
    
    38 401
    
    
    
    37 168Operating profitFoods
    
    
    4 131
    
    
    
    2 868
    
    
    
    2 893
    
    
    
    2 635
    
    
    
    1 850Home and Personal Care
    
    
    3 036
    
    
    
    2 377
    
    
    
    2 515
    
    
    
    2 439
    
    
    
    2 1317 167
    
    
    
    5 245
    
    
    
    5 408
    
    
    
    5 074
    
    
    
    3 981Total assetsFoods
    
    
    23 019
    
    
    
    24 381
    
    
    
    24 973
    
    
    
    26 798
    
    
    
    25 382Home and Personal Care
    
    
    7 298
    
    
    
    7 491
    
    
    
    6 964
    
    
    
    7 255
    
    
    
    6 059Corporate
    
    
    5 825
    
    
    
    5 430
    
    
    
    5 135
    
    
    
    5 447
    
    
    
    5 41736 142
    
    
    
    37 302
    
    
    
    37 072
    
    
    
    39 500
    
    
    
    36 858Capital expenditureFoods
    
    
    878
    
    
    
    801
    
    
    
    714
    
    
    
    572
    
    
    
    588Home and Personal Care
    
    
    602
    
    
    
    624
    
    
    
    487
    
    
    
    478
    
    
    
    5111 480
    
    
    
    1 425
    
    
    
    1 201
    
    
    
    1 050
    
    
    
    1 099
 Unilever Annual Report on Form 20-F 2008 145




---



##### Table of Contents



Unilever Group
  Exchange rates
  2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Year end1 = US $
    
    
    1.4170
    
    
    
    1.471
    
    
    
    1.317
    
    
    
    1.184
    
    
    
    1.3661 = £
    
    
    0.9773
    
    
    
    0.734
    
    
    
    0.671
    
    
    
    0.686
    
    
    
    0.707Annual average1 = US $
    
    
    1.4680
    
    
    
    1.364
    
    
    
    1.254
    
    
    
    1.244
    
    
    
    1.2381 = £
    
    
    0.7880
    
    
    
    0.682
    
    
    
    0.682
    
    
    
    0.684
    
    
    
    0.678
  2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Year end1 = US $
    
    
    1.3919
    
    
    
    1.460
    
    
    
    1.320
    
    
    
    1.184
    
    
    
    1.354Annual average1 = US $
    
    
    1.4726
    
    
    
    1.371
    
    
    
    1.256
    
    
    
    1.245
    
    
    
    1.239High1 = US $
    
    
    1.6010
    
    
    
    1.486
    
    
    
    1.333
    
    
    
    1.348
    
    
    
    1.363Low1 = US $
    
    
    1.2446
    
    
    
    1.290
    
    
    
    1.186
    
    
    
    1.167
    
    
    
    1.180
  September
    
    
    October
    
    
    November
    
    
    December
    
    
    January
    
    
    February2008
    
    
    2008
    
    
    2008
    
    
    2008
    
    
    2009
    
    
    2009High1 = US $
    
    
    1.4737
    
    
    
    1.4058
    
    
    
    1.3039
    
    
    
    1.4358
    
    
    
    1.3946
    
    
    
    1.3064Low1 = US $
    
    
    1.3939
    
    
    
    1.2446
    
    
    
    1.2525
    
    
    
    1.2634
    
    
    
    1.2804
    
    
    
    1.2547
  146 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Unilever Group
  as
at 31 December 2008
 NV 100%
    
    aPLC 100%
    
    bNV 56%; PLC 44%
    
    cNV 66%; PLC 34%
    
    dNV 17%; PLC 83%
    
    eNV 26%; PLC 74%
    
    fNV 18%; PLC 82%
    
    gNV 65%; PLC 35%
    
    hNV 67%; PLC 33%
    
    i
  Group companies
 %
    
    
    
    OwnershipArgentinaUnilever de Argentina S.A.
    
    dAustraliaUnilever Australia Ltd.
    
    bBelgiumUnilever Belgium BVBA/SPRL (Unibel)
    
    aBrazilUnilever Brasil Ltda.
    
    dCanadaUnilever Canada Inc.
    
    dChileUnilever Chile Home and Personal Care Ltda.
    
    dChinaUnilever Services (He Fei) Co Limited
    
    aFrance99
    
    Unilever France
    
    d
 Group companies
 %
    
    
    
    OwnershipGermanyMaizena Grundstücksverwaltung
   GmbH & Co. OHG
    
    hPfanni GmbH & Co. OHG Stavenhagen
    
    dPfanni Werke Grundstücksverwaltung
   GmbH & Co. OHG
    
    hUBG Vermietungs GmbH & Co. OHG
    
    iUnilever Deutschland GmbH
    
    dUnilever Deutschland Holding GmbH
    
    dUnilever Deutschland Immobilien Leasing
   GmbH & Co. OHG
    
    iUnilever Deutschland Produktions GmbH & Co. OHG
    
    dWizona IPR GmbH & Co. OHG
    
    dGreeceElais Unilever Hellas SA
    
    aIndia52
    
    Hindustan Unilever Ltd.
    
    bIndonesia85
    
    P.T. Unilever Indonesia Tbk
    
    dItalyUnilever 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.
    
    aUNUS Holding B.V.
    
    cPolandUnilever Polska S.A.
    
    aRussiaUnilever Rus
    
    gSouth Africa74
    
    Unilever South Africa (Pty) Limited
    
    fSpainUnilever España S.A.
    
    aSwedenUnilever Sverige AB
    
    aSwitzerlandUnilever Supply Chain Company AG
    
    aUnilever Schweiz GmbH
    
    aThailandUnilever Thai Trading Ltd.
    
    d
 
 (a)
    
    See Basis of consolidation in note 1 on page 84.
   Unilever Annual Report on Form 20-F 2008 147




---



##### Table of Contents



Unilever Group
  as at 31 December 2008
 Group companies
 %
    
    
    
    OwnershipTurkeyUnilever Sanayi ve Ticaret
Türk A.Ş.
    
    bUnited KingdomUnilever 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 84 Joint ventures
 %
    
    
    
    OwnershipPortugal55
    
    Unilever Jerónimo Martins, Lda
    
    bUnited States of America50
    
    Pepsi/Lipton Partnership
    
    c
 Associates
 %
    
    
    
    OwnershipUnited Kingdom40
    
    Langholm Capital Partners L.P.
    
    bUnited States of America33
    
    JohnsonDiversey Holdings, Inc.
    
    a
 
   148 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



Analysis of shareholding
 Significant shareholders of NV
    
    
    21 495 091 (1.25%) ordinary shares (3 439 215)
    
    20 665 (71.26%) 7% cumulative preference shares (8 856 399)
    
    74 088 (46.0%) 6% cumulative preference shares (31 751 894)
    
    504 440 (67.26%) 4% cumulative preference shares (21 620 298)
  
    
    2 763 379 (0.16%) ordinary shares (442 141)
    
    46 000 (28.56%) 6% cumulative preference shares (19 714 220)
  
    
    1 940 019 (0.11%) ordinary shares (310 403)
    
    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)
  Significant shareholders of PLC
  Number of
    
    ApproximateTitle of class
    
    Name of holder
    
    shares held
    
    % heldDeferred Stock
    
    Naamlooze Vennootschap Elma
    
    50 000
    
    
    50United Holdings Limited
    
    50 000
    
    
    50Ordinary shares
    
    Trustees of the Leverhulme Trust and the
Leverhulme Trade Charities Trust
    
    70 566 764
    
    
    5Legal & General Group plc
    
    54 184 916
    
    
    4Barclays PLC
    
    40 319 254
    
    
    3
  Controlling security holders
  Unilever Annual Report on Form 20-F 2008 149




---



##### Table of Contents



continued
  Analysis of shareholding
 Analysis of PLC registered holdings
  1 9
 Number
    
    
    
    
    
    
    TotalNumber of shares
    
    of holdings
    
    
    %
    
    
    shares held
    
    
    %1        1 000
    
    
    40 621
    
    
    
    65.32
    
    
    
    16 500 716
    
    
    
    1.261 001        2 500
    
    
    12 665
    
    
    
    20.37
    
    
    
    20 199 247
    
    
    
    1.542 501        5 000
    
    
    4 941
    
    
    
    7.94
    
    
    
    17 322 908
    
    
    
    1.325 001      10 000
    
    
    1 983
    
    
    
    3.19
    
    
    
    13 581 579
    
    
    
    1.0410 001      25 000
    
    
    821
    
    
    
    1.32
    
    
    
    12 284 547
    
    
    
    0.9425 001      50 000
    
    
    296
    
    
    
    0.48
    
    
    
    10 322 416
    
    
    
    0.7950 001    100 000
    
    
    215
    
    
    
    0.35
    
    
    
    15 514 392
    
    
    
    1.18100 001 1 000 000
    
    
    483
    
    
    
    0.77
    
    
    
    163 878 572
    
    
    
    12.51Over 1 000 000
    
    
    163
    
    
    
    0.26
    
    
    
    1 040 551 984
    
    
    
    79.4262 188
    
    
    
    100.00
    
    
    
    1 310 156 361
    
    
    
    100.00
 Share purchases during 2008
  millionOf which, numbers of
    
    
    Maximum value thatshares purchased
    
    
    may yet be purchasedTotal number of
    
    
    Average price
    
    
    as part of publicly
    
    
    as part of publiclyshares purchased
    
    
    paid per share
    
    
    announced plans(a)
    
    
    announced plansJanuary
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    February
    
    
    15 530 405
    
    
    
    20.98
    
    
    
    15 530 405
    
    
    
    1 174March
    
    
    13 479 567
    
    
    
    20.41
    
    
    
    13 436 219
    
    
    
    900April
    
    
    7 510 000
    
    
    
    21.26
    
    
    
    7 510 000
    
    
    
    740May
    
    
    7 208 151
    
    
    
    21.25
    
    
    
    7 200 000
    
    
    
    587June
    
    
    9 897 839
    
    
    
    19.63
    
    
    
    9 897 839
    
    
    
    393July
    
    
    21 788 953
    
    
    
    18.04
    
    
    
    21 788 953
    
    
    
    August
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    September
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    October
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    November
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    December
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    
    75 414 915
    
    
    
    19.91
    
    
    
    75 363 416
    
    
    
    
 
 (a)
    
    Shares were also purchased to satisfy commitments to deliver shares under our share-based plans
as described in note 29 on pages 133 and 134. Exchange controls affecting security holders
   150 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Nature of the trading market
 
 
   Unilever Annual Report on Form 20-F 2008 151




---



##### Table of Contents



continued
  Nature of the trading market
 Share prices at 31 December 2008
  NV per 0.16 ordinary share in Amsterdam
    
    
    17.34NV per 0.16 ordinary share in New York
    
    $
    24.55PLC per 31/9p ordinary share in London
    
    £
    15.79PLC per American Depositary Receipt in New York
    
    $
    23.02
 Monthly high and low prices for the most recent six months:
 September
    
    
    October
    
    
    November
    
    
    December
    
    
    January
    
    
    February2008
    
    
    2008
    
    
    2008
    
    
    2008
    
    
    2009
    
    
    2009NV per
0.16 ordinary share in Amsterdam (in )
    
    High
    

    
    
    20.85
    
    
    
    20.55
    
    
    
    19.94
    
    
    
    18.36
    
    
    
    18.45
    
    
    
    17.48Low
    
    
    
    18.61
    
    
    
    16.20
    
    
    
    17.40
    
    
    
    16.67
    
    
    
    17.00
    
    
    
    14.99NV per
0.16 ordinary share in New York (in US $)
    
    High
    

    
    
    29.68
    
    
    
    28.77
    
    
    
    25.90
    
    
    
    25.53
    
    
    
    25.25
    
    
    
    23.02Low
    
    
    
    27.02
    
    
    
    21.67
    
    
    
    21.78
    
    
    
    21.27
    
    
    
    21.90
    
    
    
    18.80PLC per 31/9p ordinary share in London (in £)
    
    High
    

    
    
    16.30
    
    
    
    16.01
    
    
    
    15.27
    
    
    
    15.99
    
    
    
    16.87
    
    
    
    15.52Low
    
    
    
    14.37
    
    
    
    12.49
    
    
    
    13.74
    
    
    
    13.92
    
    
    
    15.19
    
    
    
    13.37PLC per American Depositary Receipt in New York (in US $)
    
    High
    

    
    
    28.93
    
    
    
    28.35
    
    
    
    24.48
    
    
    
    23.91
    
    
    
    24.08
    
    
    
    22.57Low
    
    
    
    26.15
    
    
    
    20.40
    
    
    
    20.22
    
    
    
    20.82
    
    
    
    21.78
    
    
    
    18.96Quarterly high and low prices for 2008 and 20072008
    
    
    1st
    
    
    2nd
    
    
    3rd
    
    
    4thNV per 0.16 ordinary share in Amsterdam (in )
    
    
    
    
    
    
    
    
    
    High
    

    
    
    25.61
    
    
    
    22.30
    
    
    
    20.85
    
    
    
    20.55Low
    
    
    
    19.86
    
    
    
    17.60
    
    
    
    17.10
    
    
    
    16.20NV per 0.16 ordinary share in New York (in US $)
    
    
    
    
    
    
    
    
    
    High
    

    
    
    37.18
    
    
    
    34.53
    
    
    
    30.37
    
    
    
    28.77Low
    
    
    
    29.94
    
    
    
    27.90
    
    
    
    26.81
    
    
    
    21.27PLC per 31/9p ordinary share in London (in £)
    
    
    
    
    
    
    
    
    
    High
    

    
    
    19.47
    
    
    
    17.86
    
    
    
    16.30
    
    
    
    16.01Low
    
    
    
    15.16
    
    
    
    13.85
    
    
    
    13.35
    
    
    
    12.49PLC per American Depositary Receipt in New York (in US $)
    
    
    
    
    
    
    
    
    
    High
    

    
    
    38.02
    
    
    
    34.89
    
    
    
    30.21
    
    
    
    28.35Low
    
    
    
    29.90
    
    
    
    27.71
    
    
    
    26.15
    
    
    
    20.222007
    
    
    1st
    
    
    2nd
    
    
    3rd
    
    
    4thNV per 0.16 ordinary share in Amsterdam (in )
    
    
    
    
    
    
    
    
    
    High
    

    
    
    21.96
    
    
    
    23.94
    
    
    
    24.64
    
    
    
    25.72Low
    
    
    
    18.89
    
    
    
    21.32
    
    
    
    20.70
    
    
    
    21.22NV per 0.16 ordinary share in New York (in US $)
    
    
    
    
    
    
    
    
    
    High
    

    
    
    29.33
    
    
    
    32.39
    
    
    
    33.73
    
    
    
    37.31Low
    
    
    
    24.94
    
    
    
    28.63
    
    
    
    28.11
    
    
    
    30.08PLC per 31/9p ordinary share in London (in £)
    
    
    
    
    
    
    
    
    
    High
    

    
    
    15.41
    
    
    
    16.74
    
    
    
    17.22
    
    
    
    19.24Low
    
    
    
    13.20
    
    
    
    14.95
    
    
    
    14.49
    
    
    
    15.15PLC per American Depositary Receipt in New York (in US $)
    
    
    
    
    
    
    
    
    
    High
    

    
    
    30.16
    
    
    
    33.31
    
    
    
    34.86
    
    
    
    38.25Low
    
    
    
    25.57
    
    
    
    29.64
    
    
    
    28.95
    
    
    
    31.11Annual high and low prices2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004NV per 0.16 ordinary share in Amsterdam (in )
    
    

    

    

    

    High
    

    
    
    25.61
    
    
    
    25.72
    
    
    
    20.84
    
    
    
    20.27
    
    
    
    19.92Low
    
    
    
    16.20
    
    
    
    18.89
    
    
    
    16.53
    
    
    
    16.13
    
    
    
    14.80NV per 0.16 ordinary share in New York (in US $)
    
    

    

    

    

    High
    

    
    
    37.18
    
    
    
    37.31
    
    
    
    27.32
    
    
    
    24.02
    
    
    
    24.80Low
    
    
    
    21.27
    
    
    
    24.94
    
    
    
    20.72
    
    
    
    20.89
    
    
    
    18.94PLC per 31/9p ordinary share in London (in £)
    
    

    

    

    

    High
    

    
    
    19.47
    
    
    
    19.24
    
    
    
    14.28
    
    
    
    13.39
    
    
    
    12.80Low
    
    
    
    12.49
    
    
    
    13.20
    
    
    
    11.25
    
    
    
    10.83
    
    
    
    9.85PLC per American Depositary Receipt in New York (in US $)
    
    

    

    

    

    High
    

    
    
    38.02
    
    
    
    38.25
    
    
    
    27.95
    
    
    
    23.67
    
    
    
    24.17Low
    
    
    
    20.22
    
    
    
    25.57
    
    
    
    20.66
    
    
    
    20.34
    
    
    
    18.22
  152 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Taxation for US persons holding shares in NV
  Taxation on dividends in the Netherlands
  
    
    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,
 United States taxation on dividends
     Taxation on capital gains in the Netherlands
  Succession duty and gift taxes in the Netherlands
   Unilever Annual Report on Form 20-F 2008 153




---



##### Table of Contents



(continued)
  Taxation for US persons holding shares in PLC
 United Kingdom taxation on dividends
  United States taxation on dividends
 UK taxation on capital gains
  
    
    an individual who is neither resident nor ordinarily resident in the United Kingdom; or
    
    a company which is not resident in the United Kingdom;
   UK inheritance tax
  
    
    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;
  
    
    the individuals death; or
    
    on a gift of the shares during the individuals lifetime.
   154 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



continued
  Dividend record
      NV Dividends
 2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Interim dividend per 0.16
    
    (Euros)
    
    
    0.2600
    
    
    
    0.2500
    
    
    
    0.2300
    
    
    
    0.2200
    
    
    
    0.2100Final dividend per 0.16
    
    (Euros)
    
    
    
    
    
    
    0.5000
    
    
    
    0.4700
    
    
    
    0.4400
    
    
    
    0.4200Proposed final dividend per 0.16
    
    (Euros)
    
    
    0.5100
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    One-off dividend per 0.16
    
    (Euros)
    
    
    
    
    
    
    
    
    
    
    0.2600
    
    
    
    
    
    
    
    Interim dividend per 0.16 (US Registry)
    
    (US dollars)
    
    
    0.3320
    
    
    
    0.3612
    
    
    
    0.2934
    
    
    
    0.2638
    
    
    
    0.2685Final dividend per 0.16 (US Registry)
    
    (US dollars)
    
    
    
    
    
    
    0.7737
    
    
    
    0.6363
    
    
    
    0.5613
    
    
    
    0.5399Proposed final dividend per 0.16 (US Registry)
    
    (US dollars)
    
    
    0.6537
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    One-off dividend per 0.16 (US Registry)
    
    (US dollars)
    
    
    
    
    
    
    
    
    
    
    0.3316
    
    
    
    
    
    
    
    
 PLC Dividends
 2008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Interim dividend per 31/9p
    
    (Pounds)
    
    
    0.2055
    
    
    
    0.1700
    
    
    
    0.1562
    
    
    
    0.1504
    
    
    
    0.1407Final dividend per 31/9p
    
    (Pounds)
    
    
    
    
    
    
    0.3411
    
    
    
    0.3204
    
    
    
    0.3009
    
    
    
    0.2849Proposed final dividend per 31/9p
    
    (Pounds)
    
    
    0.4019
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    One-off dividend per 31/9p
    
    (Pounds)
    
    
    
    
    
    
    
    
    
    
    0.1766
    
    
    
    
    
    
    
    Interim dividend per 31/9p (US Registry)
    
    (US dollars)
    
    
    0.3301
    
    
    
    0.3525
    
    
    
    0.2983
    
    
    
    0.2655
    
    
    
    0.2586Final dividend per 31/9p (US Registry)
    
    (US dollars)
    
    
    
    
    
    
    0.6615
    
    
    
    0.6357
    
    
    
    0.5583
    
    
    
    0.5366Proposed final dividend per 31/9p (US Registry)
    
    (US dollars)
    
    
    0.5780
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    One-off dividend per 31/9p (US Registry)
    
    (US dollars)
    
    
    
    
    
    
    
    
    
    
    0.3372
    
    
    
    
    
    
    
    
  Unilever Annual Report on Form 20-F 2008 155




---



##### Table of Contents



(continued)
  Glossary
  Term used in this report
    
    US equivalent or brief descriptionAccounts
    
    Financial statementsAssociate
    
    A business which is not a subsidiary or a joint venture, but in which the Group has
a shareholding and exercises significant influenceCalled up share capital
    
    Ordinary shares, issued and fully paidCreditors
    
    Accounts payable/PayablesCreditors: amounts due after more than one year
    
    Long-term accounts payableCreditors: amounts due within one year
    
    Current accounts payableDebtors
    
    Accounts receivable/ReceivablesFinance cost
    
    Interest expenseFinance income
    
    Interest incomeFinance lease
    
    Capital leaseFreehold
    
    Ownership with absolute rights in perpetuityGearing
    
    LeverageGroup, or consolidated, accounts
    
    Consolidated financial statementsJoint venture
    
    A business which is jointly controlled by the Group and one or more
external partnersNominal value
    
    Par valueOperating margin
    
    Operating profit expressed as a percentage of turnoverOperating profit
    
    Net operating incomeProfit
    
    Income (or earnings)Profit and loss account
    
    Income statementProfit attributable to ordinary shareholders
    
    Net income attributable to ordinary stockholdersProfit retained
    
    Retained earningsProvisions
    
    Liabilities other than debt and specific accounts payableReserves
    
    Stockholders equity other than paid-up capitalShare capital
    
    Capital stock or common stockShare option
    
    Stock optionShare premium account
    
    Additional paid-in capital relating to proceeds of sale of stock in excess of par value or
paid-in surplusShareholders equity
    
    Stockholders equityShares in issue
    
    Shares outstandingStatement of recognised income and expense
    
    Statement of comprehensive incomeTurnover
    
    Sales revenues
 156 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



(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
    
    122, 144-146, 1553B
    
    Capitalisation and indebtedness
    
    n/a3C
    
    Reasons for the offer and use of proceeds
    
    n/a3D
    
    Risk factors
    
    25-27, 108-1134
    
    Information on the company4A
    
    History and development of the company
    
    Inside front
cover, 4-8, 20-24, 29-44, 128-129, 157-1594B
    
    Business overview
    
    1-3, 20-24, 29-43, 89-924C
    
    Organisational structure
    
    44, 147-1484D
    
    Property, plant and equipment
    
    24, 99-1004A
    
    Unresolved staff comments
    
    n/a5
    
    Operating and financial review and prospects5A
    
    Operating results
    
    6-8, 29-43, 85-86, 108-1135B
    
    Liquidity and capital resources
    
    35-43, 78, 99, 103-114, 125-1275C
    
    Research and development, patents and licences, etc.
    
    20-24, 29-34, 935D
    
    Trend information
    
    4-8, 20-435E
    
    Off balance sheet arrangements
    
    36, 108-1135F
    
    Tabular disclosure of contractual obligations
    
    36-375G
    
    Safe harbour
    
    Inside front cover,
inside back cover6
    
    Directors, senior management and employees6A
    
    Directors and senior management
    
    18-19, 46-586B
    
    Compensation
    
    60-73, 94, 115-120, 133-1356C
    
    Board practices
    
    4-5, 44-746D
    
    Employees
    
    23-24, 946E
    
    Share ownership
    
    60, 73, 133-1357
    
    Major shareholders and related party transactions7A
    
    Major shareholders
    
    54, 149-1507B
    
    Related party transactions
    
    22, 1357C
    
    Interests of experts and counsel
    
    n/a8
    
    Financial information8A
    
    Consolidated statements and other financial information
    
    4-5, 80-146, 155, 1588B
    
    Significant changes
    
    38, 1369
    
    The offer and listing9A
    
    Offer and listing details
    
    151-1529B
    
    Plan of distribution
    
    n/a9C
    
    Markets
    
    Inside front
cover, 151-1589D
    
    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
    
    44-57, 105, 12210C
    
    Material contracts
    
    37-38, 44, 51-5310D
    
    Exchange controls
    
    15010E
    
    Taxation
    
    153-15410F
    
    Dividends and paying agents
    
    n/a10G
    
    Statement by experts
    
    n/a10H
    
    Documents on display
    
    15910I
    
    Subsidiary information
    
    n/a11
    
    Quantitative and qualitative disclosures about market risk
    
    25-28, 103-11412
    
    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
    
    28, 78-8016
    
    Reserved16A
    
    Audit Committee financial expert
    
    4816B
    
    Code of Ethics
    
    28, 5716C
    
    Principal accountant fees and services
    
    74, 13616D
    
    Exemptions from the Listing Standards for Audit Committees
    
    n/a16E
    
    Purchases of equity securities by the issuer and affiliated purchasers
    
    15016F
    
    Change in Registrants Certifying Accountant
    
    n/a16G
    
    Corporate governance
    
    18-19, 44-76PART III17
    
    Financial statements
    
    n/a18
    
    Financial statements
    
    80-14319
    
    Exhibits*
   Unilever Annual Report on Form 20-F 2008 157




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##### Table of Contents



continued
  Financial calendar
 Annual General MeetingsPLC
    
    11.00am 13 May 2009 LondonNV
    
    10.30am 14 May 2009 Rotterdam
 Announcements of resultsFirst Quarter
    
    7 May 2009
    
    Third Quarter
    
    5 November 2009First Half Year
    
    6 August 2009
    
    Final for Year
    
    4 February 2010
 Final ordinary dividends for 2008
  Ex-dividend
    
    Record
    
    Paymentdate
    
    date
    
    dateNV
    
    18 May 2009
    
    20 May 2009
    
    18 June 2009PLC
    
    20 May 2009
    
    22 May 2009
    
    18 June 2009NV  New York Registry Shares
    
    18 May 2009
    
    20 May 2009
    
    18 June 2009PLC  American Depositary Receipts
    
    20 May 2009
    
    22 May 2009
    
    18 June 2009
 Interim dividends for 2009
  Ex-dividend
    
    Record
    
    Paymentdate
    
    date
    
    dateNV
    
    18 November 2009
    
    20 November 2009
    
    16 December 2009PLC
    
    18 November 2009
    
    20 November 2009
    
    16 December 2009NV  New York Registry Shares
    
    18 November 2009
    
    20 November 2009
    
    16 December 2009PLC  American Depositary Receipts
    
    18 November 2009
    
    20 November 2009
    
    16 December 2009
 Preferential dividends  NV
 Ex-dividend
    
    Record
    
    PaymentAnnounced
    
    date
    
    date
    
    date4% Cumulative Preference
    
    4 December 2009
    
    7 December 2009
    
    9 December 2009
    
    4 January 20106% Cumulative Preference
    
    4 September 2009
    
    7 September 2009
    
    9 September 2009
    
    1 October 20097% Cumulative Preference
    
    4 September 2009
    
    7 September 2009
    
    9 September 2009
    
    1 October 2009
  Contact details
 Rotterdam
    
    LondonUnilever N.V.
    
    Unilever PLCInvestor Relations Department
    
    Investor Relations DepartmentWeena 455, PO Box 760
    
    Unilever House3000 DK Rotterdam
    
    100 Victoria EmbankmentThe Netherlands
    
    London EC4Y 0DYUnited KingdomTelephone +44 (0)20 7822 6830
    
    Telephone +44 (0)20 7822 6830Telefax      +44 (0)20 7822 5754
    
    Telefax      +44 (0)20 7822 5754Any queries can also be sent to us electronically via www.unilever.com/resource/contactus.aspx
 158 Unilever Annual Report on Form 20-F 2008




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##### Table of Contents



continued
  Website
 www.unilever.com
 www.unilever.com/investorrelations
 www.unilever.com/investorrelations
 www.unilever.com/shareholderservices
 Share registration
 The Netherlands
 Telephone
    
    +31 (0)20 522 2555Telefax
    
    +31 (0)20 522 2500Website
    
    www.ant-trust.nlEmail
    
    registers@ant-trust.nl
 UK
 Telephone
    
    +44 (0)870 600 3977Telefax
    
    +44 (0)870 703 6119Website
    
    www.unilever.com/shareholderservicesEmail
    
    web.queries@computershare.co.uk
 USA
 Toll free phone (inside US)
    
    888 502 6356Toll phone (outside US)
    
    +1 781 575 4555Website
    
    www.citibank.com/drEmail
    
    citibank@shareholders-online.com
 Publications
 www.unilever.com/investorrelations www.unilever.nl/onsbedrijf/beleggers
 Unilever Annual Review 2008
 Unilever Annual Report and Accounts 2008  www.sec.gov
 Quarterly Results Announcements
 Unilever Annual Report on Form 20-F 2008
 Documents on display in the United States  www.sec.gov
   Unilever Annual Report on Form 20-F 2008 159




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##### Table of Contents



Accounting policies
    
    Inside front
cover, 38-39, 84-88Acquisitions
    
    37-38, 84, 128-129Advertising and promotion
    
    
    93Americas, The
    
    
    31-32, 89-91Annual General Meetings
    
    
    50,158Asia Africa CEE
    
    
    33-34, 89-91Associates
    
    
    101,135Audit Committee
    
    
    48, 74Auditors
    
    
    74,80,136Balance sheet
    
    
    36, 82Biographical details
    
    
    18-19, 58Biological assets
    
    
    101Board committees
    
    
    48-49Board remuneration
    
    
    60-73Boards
    
    
    44Brands
    
    
    10-11, 22-23Capital expenditure
    
    
    90, 92, 99-100Cash
    
    
    86,104Cash flow
    
    
    36, 83, 132Categories
    
    
    22, 91-92Chairman
    
    
    4,18,46Chief Executive Officer
    
    
    6,18,46Commitments
    
    
    36,125Competition
    
    
    22Contingent liabilities
    
    
    125-127Corporate governance
    
    
    44-58Corporate responsibility
    
    
    14-17Corporate Responsibility and Reputation Committee
    75Deferred tax
    
    
    39, 102Depreciation
    
    
    90, 99-100Directors responsibilities
    
    
    78Discontinued operations
    
    
    130-131Disposals
    
    
    27-28, 128-129Distribution
    
    
    22Diversity
    
    
    23Dividends
    
    
    37, 97, 155, 158Earnings per share
    
    
    53, 81, 96Employees
    
    
    13, 23Equalisation Agreement
    
    
    51-52Equity
    
    
    121Europe, Central & Eastern
    
    
    33-34, 89-91Europe, Western
    
    
    30-31, 89-91Exchange rates
    
    
    Inside front cover, 29, 84, 139Executive Directors
    
    
    18, 46-47, 62-71Exports
    
    
    22Finance and liquidity
    
    
    35Finance costs and income
    
    
    94Financial calendar
    
    
    158Financial instruments
    
    38, 85-86, 108-113Financial liabilities
    
    
    86,105-107Financial Review
    
    
    35-43Functions
    
    
    22Goodwill
    
    
    38, 84-85, 97-98Gross profit
    
    
    93Group structure
    
    Inside front coverHome care
    
    
    23, 91-92Ice cream and beverages
    
    
    23, 91-92Impairment
    
    
    87,98Income statement
    
    
    81Information technology
    
    
    24
 Innovation
    
    
    9Intangible assets
    
    
    38, 85, 97-98Intellectual property
    
    
    24Internal and disclosure controls
    
    
    28International Financial Reporting Standards (IFRS)
    Inside front cover, 84Inventories
    
    
    86,102Joint ventures
    
    
    101, 135Key management
    
    
    135Key performance indicators
    
    
    20-21Laws and regulation
    
    
    24Leases
    
    
    36, 87, 125Legal proceedings
    
    
    24, 126-127Market capitalisation
    
    
    37Net debt
    
    
    43Nomination Committee
    
    
    48, 59Non-Executive Directors
    
    
    18-19, 47-48, 72-73Non-GAAP measures
    
    
    40-43Off-balance sheet arrangements
    
    
    36Operating costs
    
    
    93Operating profit
    
    
    89-92Payables
    
    
    114Pensions and similar obligations
    
    
    37, 39, 86, 115-120Performance Review
    
    
    29-34Personal care
    
    
    23, 91-92Post balance sheet events
    
    
    38,136Preference shares and dividends
    
    
    105,158Principal group companies
    
    
    140-141Property, plant and equipment
    
    
    24, 85, 99-100Provisions
    
    
    39, 87, 114Receivables
    
    
    103Regions
    
    
    21, 29-34Related party transactions
    
    
    22, 135Remuneration Committee
    
    
    49, 60-73Research and development
    
    
    9,93Reserves
    
    
    123Restructuring
    
    
    93, 114Retained profit
    
    
    124Return on invested capital (ROIC)
    
    
    40, 42Revenue recognition
    
    
    87Risk factors
    
    
    25-27Savoury, dressings and spreads
    
    
    23, 91-92Seasonality
    
    
    22Segment information
    
    
    87, 89-92Selected Financial data
    
    
    144-146Share-based payments
    
    
    87, 133-134Share capital
    
    
    53-54,122Shareholders
    
    
    50-51, 149-150Share prices
    
    
    152Share registration
    
    
    159Staff costs
    
    
    4Statement of recognised income and expense
    
    
    81Strategy
    
    
    20Taxation
    
    
    39Total shareholder return (TSR)
    
    
    40, 43Treasury
    
    
    35, 108-113Turnover
    
    
    89-92Unilever Executive (UEx)
    
    
    8, 58Unilever Foodsolutions
    
    
    23Underlying sales growth (USG)
    
    
    29, 43Ungeared free cash flow (UFCF)
    
    
    40, 41Voting
    
    
    54Website
    
    
    159
   160 Unilever Annual Report on Form 20-F 2008




---



##### Table of Contents



Cautionary statement




---



SIGNATURES
  Unilever N.V.
(Registrant)/s/ S.H.M.A. DumoulinS.H.M.A. DUMOULIN,Group Secretary




---



##### Table of Contents



Exhibit Number
    
    Description of Exhibit1.1
    
    Articles of Association of Unilever NV 12.1
    
    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 22.2
    
    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 34.1
    
    Equalisation Agreement between Unilever N.V. and Unilever PLC 44.2
    
    Service
Contracts of the Executive Directors of Unilever NV4.3
    
    Letters
regarding compensation of Executive Directors of Unilever NV4.4
    
    Unilever North America 2002 Omnibus Equity Compensation Plan 54.5
    
    The Unilever NV International 1997 Executive Share Option Scheme 64.6
    
    The Unilever Long Term Incentive Plan 74.7
    
    Global Share Incentive Plan 2007 87.1
    
    Computation of Ratio of earnings to
fixed charges and Return on invested capital 98.1
    
    List of Subsidiaries 1010.1
    
    Consent
of PricewaterhouseCoopers Accountants N.V. and PricewaterhouseCoopers
LLP12.1
    
    Certifications of the Chief Executive Officer and Financial Director/Chief
Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 200213.1
    
    Certifications of the Chief Executive Officer and Financial Director/Chief
Financial Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
  
 1
    
    Incorporated by reference to Exhibit 1.1 of Form 20-F filed with the SEC on March 27, 20082
    
    Incorporated by reference to the Form 6-K furnished to the SEC on October 23, 2000.3
    
    Incorporated by reference to Exhibit 2.2 of Form 20-F filed with the SEC on March 28, 2002.4
    
    Incorporated by reference to Exhibit 2.2 of Form 20-F filed with the SEC on March 26, 2007.5
    
    Incorporated by reference to Exhibit 99.1 of Form S-8 filed with the SEC on February 27, 2003.6
    
    Incorporated by reference to Exhibit 4.5 of Form 20-F filed with the SEC on March 28, 2002.7
    
    Incorporated by reference to Exhibit 4.7 of Form 20-F filed with the SEC on March 28, 2002.8
    
    Incorporated by reference to Exhibit 4.7 of Form 20-F filed
with the SEC on March 26, 2008.9
    
    The required information is set forth on page 144 of the Annual Report and Accounts on Form 20-F.10
    
    The required information is set forth on pages 147 to 148 of the Annual Report and Accounts on Form 20-F.