Good sales growth due to continued momentum in the leading brands and strong performance in Europe.

The Bestfoods integration continues according to plan with an improved sales trend and full delivery of cost synergies.

FINANCIAL HIGHLIGHTS

Constant exchange rates (2000 average)

Third Quarter 2001 (Euro) Millions Nine Months 2001

13,568 +13 % Total Turnover(a) 40,001 +16 %
2,125 +25 % Total Operating profit(a) – beia(b) 5,497 +31 %
1,014 (32)% Pre-tax profit 3,156 (9)%
476 (44)% Net profit 1,630 (22)%
1,053 +5 % Net profit – beia(b) 2,596 +3 %

Per NV share (Fl. 1.12), Euro
—————————–
0.47 (44)% Earnings per share (EPS) 1.62 (22)%
1.06 +6 % EPS (beia)(b) 2.60 +4 %

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Per PLC share (1.4p), Euro cent
——————————-
7.11 (44)% EPS 24.30 (22)%
15.91 +6 % EPS (beia)(b) 39.03 +4 %

(a) Includes our share of Joint Ventures

(b) Before exceptional items and amortization of goodwill and
intangibles

When expressed in current rates of exchange, earnings per share (beia) were up 5% for the quarter and 2% for the first nine months. Earnings per share declined by 42% in the quarter and by 23% for the first nine months.

Interim dividend: N.V. ordinary share(Euro)0.50 +4%, PLC ordinary share 4.65p +6%.

KEY FEATURES FOR THE QUARTER AND THE FIRST NINE MONTHS


  • Sales growth of the leading brands, excluding acquisitions, reached 5.4% for the last twelve months, and 5.3% in the quarter.
  • Operating margin (beia) rose by 160 basis points to 15.7% in the quarter, and to 13.7% for the year to date.
  • Path to Growth savings from restructuring and global buying are on track with additional savings from media efficiency.
  • Year to date cashflow from operations was (Euro)5.2 billion with an additional (Euro)3.3 billion from disposals.
  • EPS (beia) advanced by 6% in the quarter and by 4% for the year to date.
  • Profit before tax and EPS reflect planned restructuring and goodwill amortization from acquisitions.

CHAIRMEN’S COMMENT

“The quarter saw strong underlying sales growth from our Foods businesses with improved performances from European Ice Cream and Ready-to-Drink Tea. Spreads and Frozen Foods continued to benefit from a strong innovation program. There were also excellent results from Ice Cream in North America and from Slim-Fast, both in the U.S.A. and following its international roll-out.

In Home and Personal Care our mass businesses had good sales growth in Europe, North America and East Asia Pacific. These were partly offset by a decline in Prestige Fragrances and a slowdown in some of our developing and emerging markets.

In general, conditions have become more challenging but our business is naturally resilient and has been further strengthened by the Path to Growth program which focuses our resources. Successfully managing our operations through periods of economic difficulty has always been one of Unilever’s core strengths. We remain confident of achieving our targets.”

N. W. A. FitzGerald                        A. Burgmans
Chairman, Unilever PLC Chairman, Unilever N.V.

UNILEVER BACKGROUND: Unilever is one of the world’s largest consumer products companies with annual sales of approximately $46 billion in 2001. It produces and markets a wide range of foods and home and personal care products. Unilever products are on sale in 150 countries around the globe and employs approximately 295,000 people.

In the United States, Unilever sales were approximately $11 billion in 2000. It employs 28,000 people and has 80 offices and manufacturing sites in 26 states.

In the U.S. the business comprises:

Unilever Bestfoods – North America: Lipton, Hellmann’s, Ben & Jerry’s, Slim-Fast, Ragu, Country Crock, Skippy, Good Humor, Breyers, Wish-Bone, Lawry’s, “I Can’t Believe It’s Not Butter!” and Bertolli.

Unilever Home and Personal Care – North America: Dove, Suave, Wisk, “all”, Surf, Snuggle, Sunlight, Lever 2000, Caress, Degree, Pond’s, Vaseline, Q-tips, Mentadent, Finesse, Salon Selectives, ThermaSilk and Calvin Klein, Nautica and Lagerfeld cosmetic and fragrance products.

THIRD QUARTER AND NINE MONTHS FINANCIAL RESULTS (at constant rates of exchange)

Operating profit before exceptional items and amortization of goodwill and intangibles (beia) increased by 25% for the quarter and by 31% for the year to date. Operating margin (beia) was 15.7% in the quarter, an increase of 160 basis points, and 13.7% for the year to date.

Exceptional items in the quarter relating to the Path to Growth program and Bestfoods integration were (Euro)329 million. On a year to date basis, charges of (Euro)814 million were offset by the exceptional profit on the sale of brands in the second quarter leaving the cumulative position flat. Associated costs were (Euro)82 million in the quarter and (Euro)266 million for the year to date.

Amortization of goodwill and intangibles was (Euro)355 million in the quarter with (Euro)297 million related to the acquisition of Bestfoods. For the year to date these were (Euro)1,068 million and (Euro)890 million respectively.

Net interest was (Euro)430 million for the quarter, an increase of (Euro)353 million over last year reflecting the increased level of borrowings to fund acquisitions, partly offset by cash flow from operations and the proceeds of our disposal program.

The effective tax rate for the quarter was 47.5%, which reflects the fact that Bestfoods goodwill amortization is not tax deductible. The underlying tax rate for normal trading operations is 34%.

Including the effect of higher exceptional items and goodwill amortization, net profit in the quarter decreased by (Euro)379 million, or by 44%. Year to date net profit decreased by (Euro)468 million, or by 22%, as a result of higher goodwill amortization. Before exceptional items and goodwill amortization, net profit increased by 5% in the quarter, and by 3% for the year to date.

Earnings per share (beia) rose by 6% in the quarter and by 4% for the year to date. Earnings per share fell by 44% in the quarter and by 22 % in the year to date, reflecting the movements in net profit described earlier.

THIRD QUARTER PERFORMANCE BY REGION (at constant rates of exchange)

The following commentary is based on operating profit before exceptional items and amortization of goodwill and intangibles. Leading brands growth rates exclude acquisitions and disposals.

EUROPE: Strong growth in both sales and profits.

Total sales were ahead by 9% with an underlying sales growth of 6%. Sales grew broadly across categories and there was continuing progress in Central & Eastern Europe. Ice cream and Ready-to-Drink Tea contributed two percentage points of underlying sales growth, helped by a better summer. Ice cream was also boosted by innovations such as Carte d’Or Artisanal and Cornetto Soft Ice.

In Western Europe our leading brands moved ahead by 6.5% in the quarter and by 4.0% on a moving annual total basis.

Among the key highlights in the sales development of our business were:


  • Underlying sales growth of 3.5% in Spreads and Cooking Products due to the continued success of pro-activ, Bertolli Olive Oil based Spreads and the roll-out of Culinesse.
  • The expansion of snacking products and our high quality convenient meal concept 4 Salti in Padella in Frozen Foods which resulted in an underlying sales growth of 3%.
  • Underlying sales growth of 4% in Home and Personal Care with good growth in Personal Care (+9%) and Household Care (+6%). Drivers were: Dove, with a particularly strong performance from face wipes, and Lynx and Sure in the U.K. Deodorants market. In Hair we launched Dove shampoo in Italy and continued to see good growth from Timotei, Cif and Domestos easy-to-use wipes continued to make good progress. In Oral Care underlying sales grew 6% through the increasing contribution from electric toothbrushes and chewing gum.

In Central and Eastern Europe we have seen underlying sales growth of 7% through the launch of soups and Delmy mayonnaise, and growth of Tea in Russia. Household Care and Skin Care brands performed strongly across the region.

Operating margins of 17.5% are 210 bps ahead of last year reflecting continuing progress in Central & Eastern Europe, the benefits of Path to Growth, and the contribution from portfolio changes.

NORTH AMERICA: Acquisitions contribute strongly to sales growth and operating margins remain robust.

Sales grew by 15% with a strong contribution from acquisitions. Overall underlying sales growth was 2%, depressed two percentage points by lower sales of Prestige Fragrances. Our mass Home and Personal Care and Foods businesses performed well with underlying sales growth of 4%.

Our leading brands grew by 2.7% in the quarter and by 3.7% on a moving annual total basis.

In Laundry we saw good volume growth of 5%, partly offset by price reductions. Volume growth was lifted by the performance of our “sensible shopper” brand all. In Skin Care we moved underlying sales ahead by 8% through innovations behind Dove and Suave bar soaps and the recently launched Dove face cloths. Underlying sales growth of 5% in Deodorants was achieved with a key contribution from Dove. In daily Hair Care we have retained our market leadership.

In Foods there were excellent performances from Ice cream where sales were ahead 11% including an increase of 8% in Ben & Jerry’s, and from Slimo Fast where sales rose by 19%. Operating margins in our Ice cream business have improved, in spite of the significant increase in butter fat prices. In our Culinary brands we saw good growth from Ragu with the launch of Ragu Express, a new Italian style easy to prepare snack, and from both Ragu and Wishbone following promotional activity.

Operating margin at 15.6% is flat against the prior year with the benefits of Path to Growth and portfolio change being offset by the loss of contribution from Prestige Fragrances.

AFRICA, MIDDLE EAST AND TURKEY: Resilient profit performance in spite of market conditions in Turkey.

Sales growth was 12% in the quarter of which 6 percentage points came from underlying sales, driven by Laundry, Tea, Skin, and Oral. Strongest country contributions came from Nigeria, Ghana, and South Africa. Price growth was strong in the quarter reflecting our actions to restore margin structures in Turkey. We also took action to recover cost increases in countries suffering devaluation, most notably South Africa.

Our leading brands grew by 8.0% in the quarter and by 7.8% on a moving annual total basis.

Operating margin, at 12%, is 60 bps behind last year due to poorer market conditions in Turkey.

ASIA AND PACIFIC: Sales and margins increased despite slower economic growth.

Sales are ahead by 6% with nearly 5 percentage points coming from underlying sales growth. We have seen strong underlying price increases as key countries have recovered currency related cost increases.

Our leading brands grew by 6.2% in the quarter and by 7.8% on a moving annual total basis.

In East Asia Pacific we continue to see good underlying sales growth of 8% driven by ongoing progress in Japan through the launch of Dove shampoo, the relaunch of Lux shampoo, and the second phase of the Lipton Ready-to-Drink expansion. Growth has been further enhanced by the launch of Dove facial foam in Thailand and the Philippines and the continued success of Dove shampoo in Korea.

In India underlying sales have grown 5% with our Home and Personal Care business leading the way. Household Care was particularly strong with the relaunch of Vim bars, and in Laundry Hindustan Lever took the two leading positions for the first time. In Hair we saw 18% underlying sales growth through the relaunch of Clinic and Lux. In Tea our underlying sales declined as we withdrew from the tail of brands particularly in the low priced segment.

Operating margin at 13.7% is 120 bps up on last year through savings from restructuring and procurement programs.

LATIN AMERICA: Profits move ahead strongly despite weaker markets.

Sales have moved ahead by 34%, including 31% from acquisitions and disposals.

Leading brands have grown by 5.5% in the quarter and by 8.3% on a moving annual total basis.

In Mexico, our business continued to grow in low double digits despite a slowing economy. This was largely driven by the successful roll-out of Sedal shampoo and a continued strong contribution from Ice cream.

In the Southern Cone, economic conditions remain difficult with markets in Argentina declining and devaluation of Brazil’s Real leading to a need for aggressive pricing action. We have continued to gain share in Laundry and in Brazil our Personal Care business has continued to grow through innovations in Deodorants.

Operating margin improved to 14.7%. This was the result of the benefits from procurement and restructuring savings, increased Ice cream profitability, a less intense competitive environment in Laundry and the benefits of portfolio change.

While we do not expect any short-term improvement in business conditions in this region, we are well accustomed to managing our business through periods of volatility whether of currencies or markets.

INTERIM DIVIDEND

In accordance with the interim dividend policy, the interim dividend has been set at 35% of last year’s total dividend, based on the stronger of the two reporting currencies of our parent companies, Euro and Sterling, over the first nine months, which for this period was Euro. The interim dividend, to be paid on December 17, 2001, is therefore fixed at 4.65p per 1.4p ordinary share of Unilever PLC, an increase of 6% from last year. The interim dividend per Fl. 1.12 ordinary share of Unilever N.V. is set at (Euro) 0.50, an increase of 4% from last year. The Unilever PLC shares will go ex-dividend on November 14, 2001, and the Unilever N.V. shares will go ex-dividend on November 5, 2001.

CASH FLOW / BALANCE SHEET

Cash flow from operations for the first nine months of (Euro)5.2 billion was (Euro)0.7 billion above the corresponding period last year. This was driven by strong underlying earnings growth and the contribution from acquisitions.

Returns on investment and servicing of finance reflect higher interest costs as a result of the funding of acquisitions.

Capital expenditure and financial investments are higher and include larger purchases of own shares to cover the broadening of the share option scheme.

Net proceeds from disposals include (Euro)0.2 billion from the sale of Elizabeth Arden, (Euro)1.0 billion for the sale of brands to Campbell’s and (Euro)1.9 billion from the sale of the Bestfoods Baking Company.

Net debt has decreased by (Euro)3.6 billion since December 31, 2000 reflecting the proceeds of disposals and on-going cash generation.

Capital and reserves decreased by (Euro)0.2 billion. Net profit of (Euro)1.6 billion and goodwill write-backs on disposals of (Euro)0.1 billion are reduced by a negative currency retranslation of (Euro)1.0 billion, by purchases of own shares of (Euro)0.4 billion and the interim dividend of (Euro)0.5 billion.

EURO REPORTING

Information in Sterling and U.S. Dollars is available as a supplement to this Euro report.

SAFE HARBOUR STATEMENT: This announcement may contain forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act 1995). Any forward-looking statements are based on current expectations with respect to important risk factors. It is important to note that the actual results could materially differ from the results anticipated in any forward-looking statements which may be contained in this announcement. Factors which might cause forward-looking statements to differ materially from actual results include, among other things, the overall economic, political, social and business conditions, the demand for our goods and services, competition in the market, fluctuations in interest rates and foreign currencies, the impact and other uncertainties of future acquisitions and disposals and any changes in the tax laws and other legislation and regulation, in the jurisdictions in which we operate.

We do not undertake any obligation to update any forward-looking statements contained in or incorporated in this announcement to reflect actual results, changes in assumptions or in other factors which may affect any forward-looking statements.

CONSOLIDATED PROFIT AND LOSS ACCOUNT
– CONSTANT EXCHANGE RATES (unaudited)

In the profit and loss account given below, the results in both years
have been translated at constant exchange rates, being the annual
average exchange rates for 2000. This reporting convention facilitates
comparisons since the impact of exchange rate fluctuations is
eliminated.

Third Quarter (Euro) Millions – constant Nine Months
————- ———–
2001 2000 % Incr./ 2001 2000 % Incr
—- —- ——– —- —- ——
(Decr.) /(Decr.)
——– ——

13,568 12,020 13 % TOTAL TURNOVER 40,001 34,532 16 %
Less: Share of turnover
(195) (101) of joint ventures (524) (270)
———————————————————————-
13,373 11,919 12 % GROUP TURNOVER 39,477 34,262 15 %

1,423 1,554 (8)% GROUP OPERATING PROFIT 4,375 3,619 21 %
———————————————————————-
Group operating profit
2,097 1,683 25 % beia(a) 5,416 4,165 30 %
(329) (73) Exceptional items (1) (468)
Amortization of goodwill
(345) (56) and intangibles (1,040) (78)
———————————————————————-
Add: Share of operating
18 12 profit of joint ventures 53 34

1,441 1,566 (8)% TOTAL OPERATING PROFIT 4,428 3,653 21 %
———————————————————————-
Total operating profit
2,125 1,695 25 % beia(a) 5,497 4,199 31 %
(329) (73) Exceptional items (1) (468)
Amortization of goodwill
(355) (56) and intangibles (1,068) (78)
———————————————————————-
Other income from
3 (2) fixed investments 7 –
(430) (77) Interest (1,279) (167)
————— —————
1,014 1,487 (32)% PROFIT BEFORE TAXATION 3,156 3,486 (9)%
(482) (570) Taxation (1,335) (1,236)
————— —————
532 917 (42)% PROFIT AFTER TAXATION 1,821 2,250 (19)%
(56) (62) Minority Interests (191) (152)
————— —————
NET PROFIT AT CONSTANT
476 855 (44)% 2000 EXCHANGE RATES 1,630 2,098 (22)%
————— —————

———————————————————————-
Net Profit before
exceptional items &
amortization of goodwill
and intangibles
1,053 1,001 5 % (Constant rates) 2,596 2,516 3 %
———————————————————————-
NET PROFIT AT EXCHANGE RATES
493 854 (42)% CURRENT IN EACH PERIOD 1,608 2,089 (23)%
———————————————————————-
Net Profit before exceptional
items & amortization of
goodwill and intangibles
1,034 996 4 % (Current rates) 2,547 2,501 2 %
———————————————————————-

———————————————————————-
COMBINED EARNINGS
PER SHARE (Current rates)
– per Fl. 1.12 ordinary
0.49 0.85 (42)% share (Euros) 1.60 2.08 (23)%
– per Fl. 1.12 ordinary
0.47 0.83 (43)% share – diluted (Euros) 1.55 2.03 (23)%
– per 1.4p ordinary
7.36 12.77 (42)% share (Euro cents) 23.97 31.18 (23)%
– per 1.4p ordinary
share – diluted
7.16 12.45 (43)% (Euro cents) 23.32 30.41 (23)%
———————————————————————-
(a) beia means before exceptional items and amortization of goodwill
and intangibles.

STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES (unaudited)

(Euro) Millions Nine Months
———–
2001 2000
——- ——-
Net profit 1,608 2,089
Currency retranslation (967) 437
——- ——-
Total recognized gains / (losses)
since last annual accounts 641 2,526
——- ——-

MOVEMENTS IN SHAREHOLDERS’ EQUITY (unaudited)
(Euro) Millions Nine Months
———–
2001 2000
——- ——-
Shareholders’ equity as of January 8,169 7,761
Net profit 1,608 2,089
Dividends (520) (497)
Goodwill movements 132 241
Currency retranslation (968) 414
Change of book value of shares or certificates
of shares held in connection with share options (418) (223)
——- ——-
Shareholders’ equity as at end period 8,003 9,785
——- ——-

SUMMARY BALANCE SHEET (unaudited)
(Euro) Millions

As at 29th As at 31st As at 30th
September December September
2001 2000 2000
———- ———- ———-
Goodwill and intangibles 25,240 26,467 4,452
Acquired businesses
held for resale – 1,666 –
Fixed assets 10,274 10,996 9,289
Stocks 5,631 5,421 5,230
Debtors 9,910 9,817 9,869
Cash and current investments 3,388 3,273 20,981
Trade & other creditors (12,894) (12,708) (11,027)
———- ———- ———-
41,549 44,932 38,794
———- ———- ———-

Borrowings 26,256 29,741 22,806
Provisions for liabilities and charges 6,704 6,404 5,538
Minority interests 586 618 665
Capital and reserves 8,003 8,169 9,785
———- ———- ———-
41,549 44,932 38,794
———- ———- ———-

CASH FLOW STATEMENT (unaudited)

(Euro) Millions Nine Months
2001 2000
—— —-
Cash flow from operating activities 5,217 4,468
Dividends from joint ventures 45 19
Returns on investments and servicing of finance (1,392) (238)
Taxation (1,288) (1,116)
Capital expenditure and financial investment (1,138) (849)
Acquisitions and disposals 3,219 (3,327)
Dividends paid on ordinary share capital (927) (877)
——– ———
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT
OF LIQUID RESOURCES AND FINANCING 3,736 (1,920)
Management of liquid resources 398 (13,273)
Financing (3,940) 17,406
——– ———
INCREASE / (DECREASE) IN CASH IN THE PERIOD 194 2,213
——– ———

RECONCILIATION OF CASH FLOW TO
MOVEMENT IN NET FUNDS/(DEBT)

——– ———
NET FUNDS / (DEBT) AS OF JANUARY 1 (26,468) 684
——– ———
INCREASE / (DECREASE) IN CASH IN THE PERIOD 194 2,213
Cash flow from (increase)/decrease
in borrowings 3,935 (17,425)
Cash flow from increase/(decrease)
in liquid resources (398) 13,273
——– ———
Change in net funds / (debt)
resulting from cash flows 3,731 (1,939)
Borrowings within group companies acquired – (92)
Borrowings within group companies sold 1 –
Liquid resources within group companies acquired – 8
Liquid resources within group companies sold – –
Non cash movements (24) (145)
Currency retranslation (108) (341)
——– ———
MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD 3,600 (2,509)
——– ———

——– ———
NET FUNDS / (DEBT) AT PERIOD END (22,868) (1,825)
——– ———

GEOGRAPHICAL ANALYSIS (CONSTANT)

Third Quarter (Euro) Millions Nine Months
————- ———–
% Incr./ % Incr./
——– ——–
2001 2000 (Decr.) 2001 2000 (Decr.)
—- —- ——- —- —- ——-
13,568 12,020 13 % TOTAL TURNOVER 40,001 34,532 16 %
———————————————————————-
5,231 4,803 9 % Europe 15,328 14,015 9 %
3,458 3,005 15 % North America 10,230 8,283 23 %
Africa, Middle East
1,007 896 12 % and Turkey 2,847 2,526 13 %
2,120 2,004 6 % Asia and Pacific 6,343 5,924 7 %
1,752 1,312 34 % Latin America 5,253 3,784 39 %
———————————————————————-
TOTAL OPERATING PROFIT
– before exceptional items and
amortization of goodwill
2,125 1,695 25 % and intangibles 5,497 4,199 31 %
———————————————————————-
914 740 23 % Europe 2,322 1,935 20 %
541 469 15 % North America 1,355 971 40 %
Africa, Middle East
121 113 8 % and Turkey 315 251 26 %
290 250 16 % Asia and Pacific 825 681 21 %
259 123 111 % Latin America 680 361 89 %
———————————————————————-
TOTAL OPERATING MARGIN
– before exceptional items and
amortization of goodwill
15.7% 14.1% and intangibles 13.7% 12.2%
———————————————————————-
17.5% 15.4% Europe 15.1% 13.8%
15.6% 15.6% North America 13.2% 11.7%
Africa, Middle East
12.0% 12.6% and Turkey 11.1% 9.9%
13.7% 12.5% Asia and Pacific 13.0% 11.5%
14.7% 9.3% Latin America 12.9% 9.5%
———————————————————————-

OPERATIONAL ANALYSIS (CONSTANT)

Third Quarter (Euro) Millions Nine Months
————- ———–
% Incr./ % Incr./
——– ——–
2001 2000 (Decr.) 2001 2000 (Decr.)
—- —- ——– —- —- ——–

13,568 12,020 13 % TOTAL TURNOVER 40,001 34,532 16 %
———————————————————————-
7,442 5,890 26 % Foods 22,048 17,005 30 %
———————————————————————-
Oil and dairy based
2,148 2,022 6 % foods and bakery 6,439 5,620 15 %
2,347 2,178 8 % Ice cream and beverages 6,482 6,242 4 %
Culinary and
2,947 1,690 74 % frozen products 9,127 5,143 77 %
———————————————————————-
Home Care and
2,743 2,643 4 % Professional Cleaning 8,164 7,673 6 %
3,235 3,273 (1)% Personal Care 9,332 9,214 1 %
148 214 (31)% Other Operations 457 640 (29)%
———————————————————————-
TOTAL OPERATING PROFIT
– before exceptional
items and amortization of
2,125 1,695 25 % goodwill and intangibles 5,497 4,199 31 %
———————————————————————-
1,173 805 46 % Foods 3,073 2,042 50 %
———————————————————————-
Oil and dairy based
288 287 1 % foods and bakery 880 733 20 %
392 318 24 % Ice cream and beverages 832 763 9 %
Culinary and
493 200 146 % frozen products 1,361 546 150 %
———————————————————————-
Home Care and
295 283 4 % Professional Cleaning 731 708 3 %
666 599 11 % Personal Care 1,672 1,434 17 %
(9) 8 (217)% Other Operations 21 15 45 %
———————————————————————-
TOTAL OPERATING MARGIN
– before exceptional items and
amortization of goodwill
15.7 % 14.1 % and intangibles 13.7 % 12.2 %
———————————————————————-
15.8 % 13.6 % Foods 13.9 % 12.0 %
———————————————————————-
Oil and dairy based
13.4 % 14.2 % foods and bakery 13.7 % 13.1 %
16.7 % 14.5 % Ice cream and beverages 12.8 % 12.2 %
Culinary and
16.7 % 11.8 % frozen products 14.9 % 10.6 %
———————————————————————-
Home Care and
10.7 % 10.7 % Professional Cleaning 8.9 % 9.2 %
20.6 % 18.3 % Personal Care 17.9 % 15.6 %
(6.0)% 3.6 % Other Operations 4.6 % 2.1 %
———————————————————————-

NOTES

Exchange Rates

The results for 2001 and the comparative figures for 2000 have been translated at constant average rates of exchange, being the annual average rates for 2000. For our reporting currencies these were (Euro)1 = (pound)0.61 = US $0.92. In addition, the results, earnings per share and cash flow statement have been translated at rates current in each period. For our reporting currencies these were:

Third Quarter                          Nine Months
————- ———–
2001 (Euro)1 =(pound)0.62 = US $0.89 (Euro)1 =(pound)0.62 = US $0.89
2000 (Euro)1 =(pound)0.61 = US $0.91 (Euro)1 =(pound)0.61 = US $0.94

The balance sheet figures have been translated at period-end rates of
exchange. For our reporting currencies these were :

End September 2001 (Euro)1 =(pound)0.62 = US $0.92
End December 2000 (Euro)1 =(pound)0.62 = US $0.93
End September 2000 (Euro)1 =(pound)0.60 = US $0.88

Current Rates of Exchange

For the first nine months in current rates of exchange: Total turnover is (Euro)39,158 million (15% increase); Operating profit beia is (Euro)5,387 million (29% increase); Operating profit is (Euro)4,347 million (20% increase); Interest is a charge of (Euro)1,257 million (compared with a charge of (Euro)158 million last year); Pre-tax profit is (Euro)3,097 million (11% decrease); Net profit is (Euro)1,608 million (23% decrease); Net profit beia is (Euro)2,547 million (2% increase); Earnings per share beia is (Euro)2.55 per NV share (2% increase); Earnings per share is (Euro)1.60 per NV share (23% decrease).

Acquisitions

In the first nine months of 2001 the effect on turnover and operating profit of acquisitions made in the period was not material.

Disposals

On October 2, 2001 we announced that the sale of our North American seafood business to Nippon Suisan (USA), Inc, a subsidiary of Nippon Suisan Kaisha Limited for U.S. $175 million in cash, had been completed. This business comprises the Gorton’s business in the United States and the BlueWater Seafoods business in Canada. Together the businesses had net sales of U.S. $250 million in 2000.

Acquired businesses held for resale

A number of Bestfoods businesses were expected to be sold within a year from their purchase. The assets and liabilities of those businesses, after adjustment to their estimated net proceeds of sale, were included within ‘Acquired businesses held for resale’. All of these businesses have now been sold and any differences between actual and estimated proceeds have been adjusted in goodwill. The results of these businesses are not included in the Profit & Loss Account.

Reporting of total turnover and total operating profit

The term ‘Total’ means Group (turnover and operating profit) plus our share of the joint ventures (turnover and operating profit) net of our share of any sales to the joint ventures already included in the Group figures.

INTERIM DIVIDENDS

The Boards today declared interim dividends in respect of 2001 on the ordinary shares at the following rates which are equivalent in value at the rate of exchange applied under the terms of the Equalization Agreement between the two companies:

N.V.

Per ordinary share (Euro)0.50 (2000:(Euro)0.48)

PLC

Per ordinary share 4.65p (2000: 4.40p)

The N.V. interim dividend will be payable as of December 17, 2001, to shareholders registered at close of business on November 2, 2001.

The PLC interim dividend will be paid on December 17, 2001, to shareholders registered at close of business on November 16, 2001.

DIVIDEND ON NEW YORK SHARES OF N.V.

The N.V. interim dividend, when converted at the Euro/Dollar European Central Bank rate of exchange on November 1, 2001, represents U.S. $0.454850 per New York Share of Fl. 1.12 (2000: U.S. $0.415008) before deduction of Netherlands withholding tax. U.S. dollar checks for the interim dividend, after deduction of Netherlands withholding tax at the appropriate rate, will be mailed on December 17, 2001, to holders of record of New York shares at the close of business on November 9, 2001.

DIVIDEND ON AMERICAN SHARES OF PLC

Each American share of PLC represents four 1.4p Ordinary shares of PLC. The PLC interim dividend will therefore be 18.60p per American Share. If converted at the noon Sterling/Dollar rate of exchange in London on November 1, 2001, the interim dividend for holders resident in the U.S. would therefore be U.S. $0.2724 per American Share. (2000: U.S. $0.2573).

U.S. dollar checks for the interim dividend converted at the Sterling/Dollar rate of exchange current in London on December 17, 2001 will be mailed on December 24, 2001 to holders of record of American shares at the close of business on November 16, 2001.

Combined earnings per share

The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of N.V. and PLC in issue during the period, less the average number of shares held to meet options granted under various employee share plans.

The number of combined share units is calculated from the underlying NV and PLC shares using the exchange rate of (pound)1 = Fl. 12, in accordance with the Equalization Agreement.

The diluted earnings per share are based on the average number of share units, plus all shares under option, together with certain PLC shares which may be issued in 2038 under the arrangements for the variation of the Leverhulme Trust. The number of shares is reduced, in accordance with FRS 14, by the number of shares that could be purchased at fair value with the expected proceeds from the exercise of options by employees.

Earnings per share in Euro
Constant rates Current rates
————– ————-
2001 2000 2001 2000
—- —- —- —-
Thousands of units
Average number of combined
share units of Fl. 1.12 983,181 989,573 983,181 989,573
Average number of combined
share units of 1.4p 6,554,541 6,597,155 6,554,541 6,597,155

COMBINED EPS

Net profit 1,630 2,098 1,608 2,089
Less: Preference dividends 37 32 37 32
——————————————–
Net profit attributable
to ordinary capital 1,593 2,066 1,571 2,057
——————————————–
Combined EPS per
Fl. 1.12 (Euros) 1.62 2.09 1.60 2.08
——————————————–
Combined EPS per
1.4p (Euro cents) 24.30 31.34 23.97 31.18
——————————————–
COMBINED EPS – BEIA

Net profit 1,630 2,098 1,608 2,089
Add back exceptional
items net of tax (49) 356 (67) 352
Add back amortization of
goodwill / intangibles
net of tax 1,031 62 1,023 60
Add back exceptional items
in minority interests
net of tax (16) – (17) –
——————————————–
Net profit beia 2,596 2,516 2,547 2,501
Less: Preference dividends 37 32 37 32
——————————————–
Net profit attributable to
ordinary capital – beia 2,559 2,484 2,510 2,469
——————————————–
Combined EPS beia per
Fl. 1.12 (Euros) 2.60 2.51 2.55 2.50
——————————————–
Combined EPS beia per
1.4p (Euro cents) 39.03 37.66 38.29 37.43
——————————————–

COMBINED EPS – Diluted

Thousands of units
Adjusted average combined
share units of Fl. 1.12 1,010,632 1,014,722 1,010,632 1,014,722
Adjusted average combined
share units of 1.4p 6,737,550 6,764,814 6,737,550 6,764,814

Net profit attributable
to ordinary capital 1,593 2,066 1,571 2,057
——————————————–
Combined diluted EPS per
Fl. 1.12 (Euros) 1.58 2.04 1.55 2.03
——————————————–
Combined diluted EPS per
1.4p (Euro cents) 23.64 30.55 23.32 30.41
——————————————–

Dates

The provisional results for the fourth quarter and for the year 2001
and the proposed final dividends will be published on Thursday,
February 14, 2002.

Internet: http://www.unilever.com

CONSOLIDATED PROFIT AND LOSS ACCOUNT
– CONSTANT EXCHANGE RATES (unaudited)

In the profit and loss account given below, the results in both years
have been translated at constant exchange rates, being the annual
average exchange rates for 2000. This reporting convention facilitates
comparisons since the impact of exchange rate fluctuations is
eliminated.

Third Quarter U.S. $ Millions – constant Nine Months
————- ———–
2001 2000 % Incr./ 2001 2000 % Incr
—- —- ——- —- —- ——
(Decr.) /(Decr.)
——- ——

12,492 11,066 13 % TOTAL TURNOVER 36,829 31,793 16 %
Less: Share of turnover
(179) (93) of joint ventures (482) (249)
———————————————————————-
12,313 10,973 12 % GROUP TURNOVER 36,347 31,544 15 %
1,312 1,431 (8)% GROUP OPERATING PROFIT 4,028 3,332 21 %
———————————————————————-
Group operating
1,932 1,549 25 % profit beia(a) 4,987 3,834 30 %
(302) (67) Exceptional items (1) (431)
Amortization of goodwill
(318) (51) and intangibles (958) (71)
———————————————————————-
Add: Share of operating profit
16 10 of joint ventures 48 31
1,328 1,441 (8)% TOTAL OPERATING PROFIT 4,076 3,363 21 %
———————————————————————-
Total operating
1,956 1,559 25 % profit beia(a) 5,061 3,865 31 %
(302) (67) Exceptional items (1) (431)
Amortization of
(326) (51) goodwill and intangibles (984) (71)
———————————————————————-
Other income from
1 (1) fixed investments 6 1
(395) (71) Interest (1,177) (154)
————— —————
934 1,369 (32)% PROFIT BEFORE TAXATION 2,905 3,210 (9)%
(444) (524) Taxation (1,229) (1,138)
————— —————
490 845 (42)% PROFIT AFTER TAXATION 1,676 2,072 (19)%
(52) (57) Minority Interests (176) (140)
————— —————
NET PROFIT AT CONSTANT
438 788 (44)% 2000 EXCHANGE RATES 1,500 1,932 (22)%
————— —————
———————————————————————-
Net Profit before
exceptional items &
amortization of goodwill
and intangibles
970 922 5 % (Constant rates) 2,390 2,316 3 %
———————————————————————-
NET PROFIT AT EXCHANGE
RATES CURRENT IN
440 780 (44)% EACH PERIOD 1,439 1,962 (27)%
———————————————————————-
Net Profit before exceptional
items & amortization
of goodwill
and intangibles
924 911 2 % (Current rates) 2,279 2,348 (3)%
———————————————————————-

———————————————————————-
COMBINED EARNINGS
$ $ PER SHARE (Current rates) $ $

– per Fl. 1.12
0.44 0.78 (44)% ordinary share 1.43 1.95 (27)%
– per Fl. 1.12
0.42 0.75 (44)% ordinary share – diluted 1.39 1.90 (27)%
0.26 0.47 (44)% – per 5.6p ordinary share 0.86 1.17 (27)%
– per 5.6p ordinary
0.25 0.45 (44)% share – diluted 0.83 1.14 (27)%
———————————————————————-
(a) beia means before exceptional items and amortization of goodwill
and intangibles.

STATEMENT OF TOTAL RECOGNIZED GAINS AND LOSSES (unaudited)

U.S. $ Millions Nine Months
———–

2001 2000
—- —-
Net profit 1,439 1,962
Currency retranslation (955) (542)
———————–
Total recognized gains / (losses)
since last annual accounts 484 1,420
———————–

MOVEMENTS IN SHAREHOLDERS’ EQUITY (unaudited)

U.S. $ Millions Nine Months
———–
2001 2000
—- —-

Shareholders’ equity as of January 1 7,600 7,797
Net profit 1,439 1,962
Dividends (466) (467)
Goodwill movements 118 226
Currency retranslation (978) (703)
Change of book value of shares or
certificates of shares held in
connection with share options (374) (209)
———————–
Shareholders’ equity as at end period 7,339 8,606
———————–

SUMMARY BALANCE SHEET (unaudited)

US $ Millions
As at 29th As at 31st As at 30th
September December September
2001 2000 2000
—— —— ——
Goodwill and intangibles 23,146 24,622 3,916
Acquired businesses
held for resale – 1,550 –
Fixed assets 9,421 10,230 8,169
Stocks 5,164 5,043 4,600
Debtors 9,087 9,133 8,680
Cash and current investments 3,107 3,045 18,453
Trade & other creditors (11,824) (11,822) (9,698)
————————————
38,101 41,801 34,120
————————————

Borrowings 24,076 27,668 20,058
Provisions for liabilities
and charges 6,148 5,958 4,871
Minority interests 538 575 585
Capital and reserves 7,339 7,600 8,606
————————————
38,101 41,801 34,120
————————————

CASH FLOW STATEMENT (unaudited)

U.S. $ Millions Nine Months
———–
2001 2000
—— —-
Cash flow from operating activities 4,667 4,193
Dividends from joint ventures 41 17
Returns on investments and servicing of finance (1,246) (224)
Taxation (1,153) (1,048)
Capital expenditure and financial investment (1,018) (797)
Acquisitions and disposals 2,880 (3,123)
Dividends paid on ordinary share capital (830) (823)
————————–
CASH INFLOW / (OUTFLOW) BEFORE MANAGEMENT
OF LIQUID RESOURCES AND FINANCING 3,341 (1,805)
Management of liquid resources 356 (12,459)
Financing (3,526) 16,339
————————–
INCREASE / (DECREASE) IN CASH IN THE PERIOD 171 2,075
————————

RECONCILIATION OF CASH FLOW TO MOVEMENT IN
NET FUNDS/(DEBT)

————————
NET FUNDS / (DEBT) AS OF JANUARY 1 (24,623) 687
————————
INCREASE / (DECREASE) IN CASH IN THE PERIOD 171 2,075
Cash flow from (increase)/decrease in borrowings 3,522 (16,357)
Cash flow from increase/(decrease) in
liquid resources (356) 12,459
————————
Change in net funds / (debt) resulting
from cash flows 3,337 (1,823)
Borrowings within group companies acquired – (86)
Borrowings within group companies sold 1 –
Liquid resources within group companies acquired – 7
Liquid resources within group companies sold – –
Non cash movements (21) (136)
Currency retranslation 337 (254)
————————
MOVEMENT IN NET FUNDS / (DEBT) IN THE PERIOD 3,654 (2,292)
————————

————————
NET FUNDS / (DEBT) AT PERIOD END (20,969) (1,605)
————————

GEOGRAPHICAL ANALYSIS (CONSTANT)

Third Quarter U.S. $ Millions Nine Months
————- ———–
% Incr./ % Incr./
——– ——–
2001 2000 (Decr.) 2001 2000 (Decr.)
—- —- ——– —- —- ——–

12,492 11,066 13 % TOTAL TURNOVER 36,829 31,793 16 %
———————————————————————-
4,816 4,422 9 % Europe 14,112 12,903 9 %
3,184 2,767 15 % North America 9,419 7,627 23 %
Africa, Middle East
927 824 12 % and Turkey 2,621 2,325 13 %
1,952 1,844 6 % Asia and Pacific 5,840 5,454 7 %
1,613 1,209 34 % Latin America 4,837 3,484 39 %
———————————————————————-
TOTAL OPERATING PROFIT
– before exceptional items and
amortization of goodwill
1,956 1,559 25 % and intangibles 5,061 3,865 31 %
———————————————————————-
841 681 23 % Europe 2,137 1,782 20 %
498 431 15 % North America 1,248 893 40 %
Africa, Middle East
111 104 8 % and Turkey 290 231 26 %
268 230 16 % Asia and Pacific 760 627 21 %
238 113 111 % Latin America 626 332 89 %
———————————————————————-
TOTAL OPERATING MARGIN
– before exceptional items and
amortization of goodwill
15.7% 14.1% and intangibles 13.7% 12.2%
———————————————————————-
17.5% 15.4% Europe 15.1% 13.8%
15.6% 15.6% North America 13.2% 11.7%
Africa, Middle East
12.0% 12.6% and Turkey 11.1% 9.9%
13.7% 12.5% Asia and Pacific 13.0% 11.5%
14.7% 9.3% Latin America 12.9% 9.5%
———————————————————————-

OPERATIONAL ANALYSIS (CONSTANT)

Third Quarter U.S. $ Millions Nine Months
————- ———–
% Incr./ % Incr./
——– ——–
2001 2000 (Decr.) 2001 2000 (Decr.)
—- —- ——– —- —- ——–

12,492 11,066 13 % TOTAL TURNOVER 36,829 31,793 16 %
———————————————————————-
6,854 5,422 26 % Foods 20,301 15,656 30 %
———————————————————————-
Oil and dairy based
1,978 1,861 6 % foods and bakery 5,929 5,174 15 %
2,162 2,005 8 % Ice cream and beverages 5,968 5,746 4 %
Culinary and
2,714 1,556 74 % frozen products 8,404 4,736 77 %
———————————————————————-
Home Care and
2,524 2,433 4 % Professional Cleaning 7,515 7,064 3 %
2,978 3,014 (1)% Personal Care 8,592 8,484 1 %
136 197 (31)% Other Operations 421 589 (29)%
———————————————————————-
TOTAL OPERATING PROFIT
– before exceptional
items and amortization of
1,956 1,559 25 % goodwill and intangibles 5,061 3,865 31 %
———————————————————————-
1,080 740 46 % Foods 2,830 1,881 50 %
———————————————————————-
Oil and dairy based
266 264 1 % foods and bakery 811 677 20 %
360 292 24 % Ice cream and beverages 766 702 9 %
Culinary and
454 184 146 % frozen products 1,253 502 150 %
———————————————————————-
Home Care and
271 260 4 % Professional Cleaning 672 652 3 %
613 552 11 % Personal Care 1,540 1,320 17 %
(8) 7 (217)% Other Operations 19 12 45 %
———————————————————————-
TOTAL OPERATING MARGIN
– before exceptional items and
amortization of goodwill
15.7 % 14.1 % and intangibles 13.7 % 12.2 %
———————————————————————-
15.8 % 13.6 % Foods 13.9 % 12.0 %
———————————————————————-
Oil and dairy based
13.4 % 14.2 % foods and bakery 13.7 % 12.2 %
16.7 % 14.5 % Ice cream and beverages 12.8 % 12.2 %
Culinary and
16.7 % 11.8 % frozen products 14.9 % 10.6 %
———————————————————————-
Home Care and
10.7 % 10.7 % Professional Cleaning 8.9 % 9.2 %
20.6 % 18.3 % Personal Care 17.9 % 15.6 %
(6.0)% 3.6 % Other Operations 4.6 % 2.1 %
———————————————————————-

Earnings per share in U.S. Dollars

Constant rates Current rates
————– ————-
2001 2000 2001 2000
—- —- —- —-
Thousands of units

Average number of combined
share units of Fl. 1.12 983,181 989,573 983,181 989,573
Average number of combined
share units of 5.6p 1,638,635 1,649,289 1,638,635 1,649,289

COMBINED EPS

Net profit 1,500 1,932 1,439 1,962
Less: Preference dividends 34 29 33 30
——————————————–
Net profit attributable
to ordinary capital 1,466 1,903 1,406 1,932
——————————————–
Combined EPS per Fl. 1.12 $ 1.49 $ 1.92 $ 1.43 $ 1.95
——————————————–
Combined EPS per 5.6p $ 0.89 $ 1.15 $ 0.86 $ 1.17
——————————————–

COMBINED EPS – BEIA

Net profit 1,500 1,932 1,439 1,962
Add back exceptional
items net of tax (46) 327 (61) 330
Add back amortization of
goodwill / intangibles
net of tax 951 57 916 56
Add back exceptional items in
minority interests net of tax (15) – (15) –
———————————————
Net profit beia 2,390 2,316 2,279 2,348
Less: Preference dividends 34 29 33 30
———————————————
Net profit attributable to
ordinary capital – beia 2,356 2,287 2,246 2,318
———————————————
Combined EPS beia
per Fl. 1.12 $ 2.40 $ 2.31 $ 2.28 $ 2.34
———————————————
Combined EPS beia per 5.6p $ 1.44 $ 1.39 $ 1.37 $ 1.41
———————————————

COMBINED EPS – Diluted

Thousands of units
Adjusted average combined
share units of Fl. 1.12 1,010,632 1,014,722 1,010,632 1,014,722
Adjusted average combined
share units of 5.6p 1,684,388 1,691,203 1,684,388 1,691,203

Net profit attributable
to ordinary capital 1,466 1,903 1,406 1,932
———————————————
Combined diluted EPS
per Fl. 1.12 $ 1.45 $ 1.88 $ 1.39 $ 1.90
———————————————
Combined diluted EPS
per 5.6p $ 0.87 $ 1.13 $ 0.83 $ 1.14
———————————————