Key Financials * (unaudited) Full Year 2008 Fourth Quarter 2008
Turnover (€ million) 40 523 + 1% 10 151 + 3%
Operating profit (€ million) 7 167 + 37% 1 458 + 33%
Net profit (€ million) 5 285 + 28% 1 189 + 51%
Earnings per share (€) 1.79 + 32% 0.41 + 61%
Underlying sales growth + 7.4% + 7.3%
Underlying change in operating margin (percent pts) + 0.1 pts - 0.7 pts
* at current exchange rates
Dividends NV (€) increase PLC (p) increase
Final (proposed) 0.51 + 2% 40.19 + 18%
Total (interim + final) 0.77 + 3% 60.74 + 19%

SOLID YEAR OF PROGRESS. STRONGER BUSINESS, BETTER PLACED TO MEET CHALLENGES AHEAD.
Full Year Highlights
• Strong broad-based growth of 7.4% across categories, in line with our markets overall and driven by increased
prices, combined with an underlying improvement in operating margin.
• More competitive cost base: €1.1 billion savings from supply chain and organisational efficiencies.
• Increased investment behind our brands.
• Commodity costs increased by €2.7 billion. Brand strength enabled pricing which offset most of the cost
increases. Savings covered the remainder.
• Portfolio reshaped through disposals, including North American laundry, Boursin, Lawry’s and Bertolli olive oil, and
acquisition of Inmarko ice cream.
• Profits on disposals of €2 190 million pre-tax and €1 612 million post-tax. Earnings per share of €1.79 including
€0.36 net benefit from RDIs (Restructuring, Disposals, and other items)
• Strong balance sheet. €3.6 billion cash returned to shareholders in 2008. Dividends to be increased and
proposal to move to quarterly dividends from 2010.
Fourth Quarter Highlights
• Underlying sales growth of 7.3%. Price increases peaked in the quarter at over 9%. This, together with slowing
economies and reduced inventories at retailers resulted in volumes being lower by 1.6%.
• Reduced volumes, dilution from disposals and exceptionally high increases in input costs put pressure on
margins. Cost pressure expected to ease beyond the first quarter of 2009.
• Lower advertising and promotions reflecting easing media rates and in line with reductions in spend by
competitors.
Paul Polman, Chief Executive Officer: “In 2008 the business made further solid progress. We achieved top line
growth ahead of our target range and, faced with unprecedented input cost pressures, protected profit by early pricing
action and savings programmes. The changes already made over the past few years have strengthened the business
and leave us well placed to meet the challenges ahead. Whilst we have been more or less holding value share our
priority will be to focus first and foremost on volume growth. At the same time we will protect cash and margins,
driving our savings programmes even harder. By doing this we expect to emerge from the current conditions stronger
and more competitive than ever.
Given the current economic uncertainty I believe it would be inappropriate at this stage to provide an outlook
specifically for 2009 or to reaffirm the 2010 targets. That said, I am confident in the underlying strength of the
business and over the longer term expect that we will deliver very competitive levels of growth and margin improvement.”

1 FINANCIAL PERFORMANCE
Full Year
Underlying sales growth of 7.4% was partly offset by movements in exchange rates (4.8%) and the net impact of
disposals and acquisitions (1.4%). Including these effects, turnover was €40 523 million for the full year, increasing by 0.8%.
Operating profit increased by €1 922 million to €7 167 million, including a higher level of profits on business disposals.
These generated a pre-tax profit of €2 190 million in 2008, compared with €297 million in 2007. Before the impact of RDIs (Restructuring, Disposals, and other one-off items), operating profit grew by 1% at current exchange rates, or
6% at constant exchange rates, and there was an underlying improvement in operating margin of 0.1 percentage points.
During the year we increased investment behind our brands and have now raised our annual spending on advertising and promotions by €1 billion over the past four years as well as benefiting from our media efficiency programmes.
With the effect of the much higher selling prices, the ratio of advertising and promotions to turnover was 0.7 points lower than last year.
Net profit was 28% higher than last year, boosted by the profits on disposals. Earnings per share were €1.79, including a net gain of €0.36 from RDI’s. This compared with €1.35 last year, which included a net loss of € 0.07
from RDI’s.
Net cash flow from operations at €3.9 billion was in line with last year. Total cash returns to shareholders in the year were €3.6 billion, made up of €2.1 billion of dividends and €1.5 billion of share buy-backs.

Fourth Quarter
In the fourth quarter underlying sales growth was 7.3% and turnover increased by 2.6%.
Operating profit increased by €361 million, with a higher level of profits on business disposals including the Bertolli and Komili olive oil businesses and plantations in Côte D’Ivoire. Before the impact of RDIs, there was an underlying reduction in operating margin of 0.7 percentage points. This reflected a combination of continued very large increases in input costs exacerbated by adverse currency movements, the effect of lower volumes and the impact of disposals which diluted operating margin by 0.3 percentage points.
We continued to invest strongly behind our brands in the fourth quarter and started to benefit from lower media rates in many countries as well as media efficiency programmes. Against a relatively high comparator the ratio of
advertising and promotions to turnover was lower by 1.3 percentage points. This followed similar reductions by our competitors.
Net profit and earnings per share in the fourth quarter also benefited from the profits on disposals.

4.3 Return on Invested Capital
Return on invested capital was 15.7%, boosted by profits on business disposals. Excluding profits on disposals, ROIC was 11.2%, broadly in line with 2007 on a comparable basis.

4.4 Cash Flow
Cash flow from operations of €5.3 billion was €0.1 billion higher than last year. Lower cash costs of pensions more than offset higher restructuring charges and a €0.2 billion increase in working capital. Tax paid was also €0.1 billion higher, resulting from additional one-off tax payments in 2008. Net cash flow from operations of €3.9 billion was in line with last year.
Ungeared free cash flow was €3.2 billion, which was €0.6 billion lower than last year. The effect of underlying growth in operating profit was offset by business disposals and adverse currency movements. It also reflects higher
restructuring costs, additional investment in capital expenditure and higher working capital and tax rates.

4.5 Dividends and share buy-backs
The proposed final dividend of €0.51 for NV takes the total dividend for the year to €0.77, an increase of 3%. The proposed final dividend of 40.19p for PLC takes the total dividend to 60.74p, an increase of 19%. The difference in
the rates of increase reflects the weakening of Sterling against the Euro. Further details, including the US dividends, can be found on page 16.
It is proposed to simplify the current practice of setting dividends, with a move to paying dividends on a quarterly basis. During the year, 75 million shares were bought back at a total cost of €1.5 billion.

4.6 Balance sheet
The appreciation of the euro against many of the Group’s operating currencies has had the effect of reducing many of the reported asset and liability balances. Higher cash balances reflect the decision to maintain strong liquidity and the proceeds of the sale of the Bertolli olive oil business. Working capital balances are up in response to higher underlying turnover.

4.7 Pensions
The overall net liability for all pension arrangements was €3.4 billion at the end of 2008, up from €1.1 billion at the end of 2007. Funded schemes show an aggregate deficit of €1.4 billion and unfunded arrangements show a liability of
€2.0 billion. The increase in overall balance sheet liability is largely due to the falls in asset values on world markets, partly offset by higher discount rates for liabilities. In 2009 we currently expect cash contributions to be higher than in 2008, but slightly below the levels in the preceding two years.

5 OTHER INFORMATION
As previously announced, Unilever is currently engaged with both the European Commission and other national competition authorities in ongoing investigations in Europe. We continue to cooperate fully with all ongoing
investigations.