6-K
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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934
For the month of November, 2009
UNILEVER N.V.
(Translation of registrant’s name into English)
WEENA 455, 3013 AL, P.O. BOX 760, 3000 DK, ROTTERDAM, THE NETHERLANDS
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F þ      Form 40-F o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):                    
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):                    
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o     No þ
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    
 
 

 


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SIGNATURES


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
         
  UNILEVER N.V.
 
 
  /s/ S.G. Williams    
  S.G. Williams,  
  Secretary
Date: 12 November, 2009


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(LOGO)
2009 HALF YEAR RESULTS
                           
     
   Key Financials (unaudited, at current rates)    Half Year 2009
 
 
                     
 
Turnover ( million)
      19,963         + 0  %  
 
 
                     
 
Operating profit ( million)
      2,554         - 20  %  
 
Operating profit before RDIs* ( million)
      2,915         - 3  %  
 
 
                     
 
Net profit ( million)
      1,636         - 31  %  
 
Net profit before RDIs* ( million)
      1,914         - 12  %  
 
 
                     
 
Earnings per share ()
      0.53         - 33  %  
 
Earnings per share before RDIs* ()
      0.63         - 13  %  
                 
                 
  * RDIs: Restructuring, disposals and other one-off items
Note: operating profit in the first half of 2008 included profits on disposal of 516 million pre-tax.
First Half Highlights
  Underlying sales growth 4.4%, with volumes up 0.2%. Turnover in line with last year after the effects of currency movements (-0.9%) and disposals/acquisitions (-3.2%).
  Operating margin before RDIs down by 50 bps (including 30 bps of margin dilution from disposals), in line with expectations.
  Earnings per share before RDIs down 13%, including -6% from the pensions finance charge and -3% from a higher first half tax charge.
  Net cash flow from operating activities 1.6 billion ahead of last year with much improved working capital.

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INTERIM MANAGEMENT REPORT FOR HALF YEAR TO JUNE 2009
In the following commentary we report underlying sales growth (abbreviated to ‘USG’ or ‘growth’) at constant exchange rates, excluding the effects of acquisitions and disposals. Turnover includes the impact of exchange rates, acquisitions and disposals. Unilever uses ‘constant rate’ and ‘underlying’ measures primarily for internal performance analysis and targeting purposes. We also comment on trends in operating margins before RDIs (restructuring, disposals, and other one-off items). We may also discuss net debt, for which we provide an analysis in the notes to the financial statements. Unilever believes that such measures provide additional information for shareholders on underlying business performance trends. Such measures are not defined under IFRS and are not intended to be a substitute for GAAP measures of turnover, operating margin, profit, EPS and cash flow. Please refer also to notes 2 and 3 to the financial statements.
OPERATIONAL REVIEW
                                             
   
      Half Year 2009
        Turnover       USG        Volume       Price    
        m       %       %       %    
 
 
                                         
 
Asia Africa CEE
      7,431         8.8         1.3         7.4    
 
 
                                         
 
Americas
      6,491         5.9         0.4         5.5    
 
 
                                         
 
Western Europe
      6,041         (1.9 )       (1.2 )       (0.7 )  
                             
 
 
                                         
 
Unilever Total
      19,963         4.4         0.2         4.2    
                             
 
 
                                         
 
Savoury, dressings & spreads
      6,544         1.4                        
 
 
                                         
 
Ice cream & beverages
      4,132         4.5                        
 
 
                                         
 
Personal care
      5,803         4.6                        
 
 
                                         
 
Home care & other
      3,484         9.9                        
                                     
 
 
                                         
 
Unilever Total
      19,963         4.4                        
                                     
REGIONS
Asia Africa CEE – Half year USG +8.8%, Volume +1.3%
Underlying sales have grown in all our main developing and emerging markets and in all categories. Positive volume growth resulted from innovations and increased marketing support. Overall consumer demand in our categories continued to grow during the first half of this year, but with volumes increasing at a slower rate than in the past.
We have established a regional supply chain centre, based in Singapore, and are progressively rolling out common systems across the region. We continued to invest in our priority markets of Russia and China during the first half of 2009. We have completed a new global R&D centre in Shanghai. In Russia, we completed the acquisition of Baltimor, the market leader in ketchup, on 3 July, and we have announced the construction of a new ice cream factory to support Inmarko which has grown rapidly since its acquisition last year through the first half of 2009.
The operating margin before RDIs was up by 150 bps in the first half year.
The Americas – Half year USG +5.9%, Volume +0.4%
The region has sustained a good performance. North America grew by 2.7% in the first half year, with volumes sustained at last year’s levels despite lower foodservice sales including the exit from unbranded business. Sales in Latin America have grown at around 10% in the first half year with an improving volume trend.
The integration of the US, Canada and Caribbean businesses progressed well during the first half of 2009 and Canada moved onto the US SAP platform on 1 October. Our new Customer Insight and Innovation Centre helped generate ideas for fresh ways of growing with our customers.
The operating margin before RDIs was up by 40 bps in the first half year.
Western Europe – Half year USG -1.9%, Volume -1.2%
Markets remain very challenging. Our own business showed positive volume growth in the second quarter, with an improving trend across all key countries and benefiting from good ice cream sales in the first half of the season. Net prices were lower than last year as commodity cost pressures eased and we restored price competitiveness.
We made good progress on reducing costs. This includes rationalising the supply chain, investing in more efficient production lines, leveraging our single IT system to drive regional synergies and streamlining overheads.

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The operating margin before RDIs was lower by 330 bps in the first half year reflecting high commodity costs, the depreciation of sterling, and investments to reignite volume growth.
CATEGORIES
We have grown sales in all categories in the first half year, despite the economic environment. We are seeing the benefits of rolling out innovations faster across countries and regions under our strong global brands. Consumers are looking, more than ever, for good value in the products they buy, so our innovation programme places even greater emphasis on superior functional benefits, backed up by clinical proofs and strong communication. At the same time we continued to build consumption in our categories by developing new market segments and converting users from alternative products during the first half of 2009.
Savoury, dressings and spreads – Half year USG +1.4%
In spreads and dressings, we continued during the first half of 2009 the roll-out of the successful ‘goodness of margarine’ campaign, while reducing prices to reflect the easing of edible oil prices. We are re-launching our value brands in a number of countries to compete at the lower end of the market. In savoury, Knorr has grown well in the Americas and Asia Africa CEE but sales were down in Western Europe. We have implemented comprehensive 30 day action plans to address this and have seen an improving trend, particularly in Germany during the first half of 2009. The roll-out of Knorr Stockpots throughout Europe has gone well and consumption is building during the first half of 2009. In the US we have capitalised on the move to more in-home eating with successful campaigns behind Hellmann’s mayonnaise, Ragú pasta sauces and Bertolli frozen meals. This was partly offset by lower Foodservice sales, including the exit from unbranded business. Hellmann’s new ‘double whisked’ light mayonnaise is driving good growth for the brand globally.
Ice cream and beverages – Half year USG +4.5%
The good performance in the first half has been led by strong growth in Developing and Emerging markets in both ice cream and tea. In tea we benefitted from innovations behind a portfolio of brands covering all consumer income levels. We have introduced a range of herbal infusions under our value brand in Russia and a new flavour under our value brand in Poland. Growth of our premium brand Lipton has been boosted by pyramid bags, while Lipton Linea slimming teas are building well in Europe during the first half of 2009 and have recently been launched in Russia and China. We have continued during the first half of 2009 to extend distribution for ice cream brands in Asia Africa CEE and Latin America with good results. In Western Europe we saw good growth in the second quarter, and sales were up for the half year. Magnum, with the successful ‘Temptation’ variant, and Ben & Jerry’s were particularly strong.
Personal care – Half year USG +4.6%
Growth in personal care was driven by our global innovation programme, supported by strong advertising, as well as an increased focus on value across the portfolio. Skin cleansing performed well with new functional advertising for Dove bar, the roll-out of Lux Soft Skin in Latin America and campaigns that address current heightened needs for hygiene. In North America we also introduced Dove shower gels with new technology which reverses dryness. In hair care we benefited from the launch of Lux Shine in China and Japan, continued momentum during the first half of 2009 for Clear anti-dandruff shampoo in Developing and Emerging markets and good growth for Suave, our value brand in the US. We have launched a new Dove deodorant which makes underarms look and feel hair-free for longer and a new Axe body spray fragrance. The successful Signal White Now oral care range has been extended with the introduction of a mouthwash line.
Home care and other – Half year USG +9.9%
Both laundry and household cleaning have performed very well in the first half year. Growth has come from innovation supported by strong advertising and increased promotional intensity. In laundry, we have upgraded our ‘Dirt is Good’ range in key Developing and Emerging markets and launched a version for semi-automatic machines in Brazil. In Europe we are seeing good momentum during the first half of 2009 in Small & Mighty concentrated liquids and in new ‘clear and fresh’ Surf detergents. In household cleaning Cif ‘acti-fizz’ and Domestos ’24 hour protection’ continue during the first half of 2009 to do well and we have now launched Cif in India.

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ADDITIONAL COMMENTARY ON THE FINANCIAL STATEMENTS – FIRST HALF YEAR
Finance costs and tax
The cost of financing net borrowings was 244 million. This was 36 million higher than last year because of a higher average level of net debt and one-off charges this year. The interest rate on borrowings was 4.6%, slightly lower than last year.
There was a net charge of 90 million for pensions financing compared with a credit of 67 million in the first half of last year.
The effective tax rate was 29.4% and the underlying tax rate, before RDIs, was 28.5%. The underlying tax rate is expected to be lower in the second half and to be around 27% for the year as a whole. As at June 2009, our longer term guidance remains around 26%.
Joint ventures, associates and other income from non-current investments
Net profit from joint ventures and associates, together with other income from non-current investments contributed 72 million. This compares with 92 million last year which included a one-time gain on the extension of the Pepsi/Lipton joint venture for ready-to-drink tea. On an underlying basis there was an increase of 4 million.
Cash Flow
Cash flow from operating activities was 1.6 billion higher than last year in the first half. Working capital improvement has been a priority for the business and the good progress made during the first half of 2009 has largely offset the normal seasonal working capital movements.
Balance sheet
Balances at the half year include the acquisition of the TIGI hair care business. The net deficit on pensions increased from 3.4 billion at the start of the year to 3.7 billion, mainly reflecting lower corporate bond rates used to discount liabilities. Changes in the level and maturity profile of financial liabilities reflect bond issues and redemptions since the start of the year. Currency changes had significant effects on goodwill and financial liabilities.
PRINCIPAL RISK FACTORS
On pages 25 to 27 of our 2008 Report and Accounts we set out our assessment of the principal risk issues that would face the business through 2009, including global economic slowdown and changing consumer demand; competitive markets and consolidation of customers; financial risks relating to liquidity, currency, interest, pensions and taxation; exposure to developing and emerging markets; input costs, supplier and supply chain reliance; safety, sustainability and environment; restructuring and changes to the way we operate; and people and talent. In our view, the nature and potential impact of such risks remains essentially unchanged as regards our performance over the second half of 2009.
COMPETITION LAW INVESTIGATIONS
As previously reported, in June 2008 the European Commission initiated an investigation into potential competition law infringements in the European Union in relation to consumer detergents. Unilever has received a number of requests for information from the European Commission regarding the investigation and has been subject to unannounced investigations at some of its premises. No statement of objections against Unilever has been issued to date. It is too early to be able reasonably to assess the outcome or to estimate the fines which the Commission may seek to impose on Unilever as a result of this investigation, if determined against Unilever. Therefore no provision has been made. However, substantial fines can be levied as a result of European Commission investigations. Fines imposed in other sectors for violations of competition rules have amounted to hundreds of millions of euros.

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Unilever is, as previously reported, involved in a number of other on-going investigations by national competition authorities within the EU in relation to potential national competition law infringements, primarily in relation to the home care and personal care sectors. It is too early to be able reasonably to assess the outcome or to estimate the fines which the authorities may seek to impose on Unilever as a result of these national investigations, if determined against Unilever. Therefore no provision has been made.
CAUTIONARY STATEMENT
This announcement may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as ‘expects’, ‘anticipates’, ‘intends’, ‘believes’, or the negative of these terms and other similar expressions of future performance or results, including any financial objectives, and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, the ability to complete planned restructuring activities, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group’s filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report and Accounts on Form 20-F. These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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CONDENSED INTERIM FINANCIAL STATEMENTS
INCOME STATEMENT
(unaudited)
                                     
million   Half Year
                        Increase/  
      2009     2008       (Decrease)  
                        Current   Constant
                        rates   rates
 
                                   
Continuing operations:
                                   
 
                                   
Turnover
      19,963       19,945          %     1  %
 
                                   
Operating profit
      2,554       3,184         (20 )%     (20 )%
 
                         
Restructuring, business disposals and
other items (RDIs) (see note 3)
      (361 )     181                    
 
                                   
Operating profit before RDIs
      2,915       3,003         (3 )%     (4 )%
                     
 
                                   
Net finance costs
      (334 )     (141 )                  
                         
Finance income
      44       51                    
Finance costs
      (288 )     (259 )                  
Pensions and similar obligations
      (90 )     67                    
                         
 
                                   
Share in net profit/(loss) of joint ventures
      63       74                    
Share in net profit/(loss) of associates
      (3 )     8                    
Other income from non-current investments
      12       10                    
                     
 
                                   
Profit before taxation
      2,292       3,135         (27 )%     (27 )%
 
                                   
Taxation
      (656 )     (750 )                  
                     
 
                                   
Net profit from continuing operations
      1,636       2,385         (31 )%     (31 )%
 
                                   
Net profit/(loss) from discontinued operations
                               
                     
 
                                   
Net profit for the period
      1,636       2,385         (31 )%     (31 )%
 
                                   
Attributable to:
                                   
                         
Minority interests
      147       137                    
Shareholders’ equity
      1,489       2,248         (34 )%     (34 )%
                     
 
                                   
             
 
                                   
Combined earnings per share
                                   
Total operations (Euros)
      0.53       0.79         (33 )%     (33 )%
Total operations – diluted (Euros)
      0.52       0.77         (33 )%     (33 )%

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STATEMENT OF COMPREHENSIVE INCOME
(unaudited)
                     
  million   Half Year  
      2009     2008    
 
 
                 
 
Net profit for the period
                   1,636       2,385    
 
 
                 
 
Other comprehensive income
                 
 
Fair value gains/(losses) on financial instruments net of tax
    85       (34 )  
 
Actuarial gains/(losses) on pension schemes net of tax
    (270 )     (126 )  
 
Currency retranslation gains/(losses) net of tax
    142       (331 )  
         
 
 
                 
 
Total comprehensive income for the period
    1,593       1,894    
 
 
                 
     
 
Attributable to:
                 
 
Minority interests
    152       91    
 
Shareholders’ equity
    1,441       1,803    
     
STATEMENT OF CHANGES IN EQUITY
(unaudited)
                      
million   Half Year
    2009     2008  
 
               
Equity at 1 January
                   10,372       12,819  
Total comprehensive income for the period
    1,593       1,894  
Dividends
    (1,361 )     (1,352 )
Movement in treasury stock
    18       (1,520 )
Share-based payment credit
    65       54  
Dividends paid to minority shareholders
    (70 )     (95 )
Currency retranslation gains/(losses) net of tax
    (6 )     (17 )
Other movements in equity
    (33 )     (11 )
     
Equity at the end of the period
    10,578       11,772  

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CASH FLOW STATEMENT
(unaudited)
                             
million   Half Year
    2009     2008  
 
               
Operating activities
               
Cash flow from operating activities
                   2,450       885  
Income tax paid
    (431 )     (481 )
     
Net cash flow from operating activities
    2,019       404  
 
               
Investing activities
               
Interest received
    38       64  
Net capital expenditure
    (506 )     (491 )
Acquisitions and disposals
    (365 )     403  
Other investing activities
    (5 )     40  
     
Net cash flow from/(used in) investing activities
    (838 )     16  
 
               
Financing activities
               
Dividends paid on ordinary share capital
    (1,302 )     (1,194 )
Interest and preference dividends paid
    (258 )     (201 )
Change in financial liabilities
    130       2,081  
Share buy-back programme
          (1,085 )
Other movements on treasury stock
    17       (19 )
Other financing activities
    (43 )     (89 )
     
Net cash flow from/(used in) financing activities
    (1,456 )     (507 )
 
               
     
Net increase/(decrease) in cash and cash equivalents
    (275 )     (87 )
 
               
Cash and cash equivalents at the beginning of the year
    2,360       901  
 
               
Effect of exchange rate changes
    (176 )     (152 )
 
               
     
Cash and cash equivalents at the end of period
    1,909       662  

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BALANCE SHEET
(unaudited)
                         
    As at     As at     As at  
    30 June     31 December     30 June  
million   2009     2008     2008  
     
 
                       
Non-current assets
                       
Goodwill
                   12,338       11,665       12,015  
Intangible assets
    4,598       4,426       4,436  
Property, plant and equipment
    6,261       5,957       6,045  
Pension asset for funded schemes in surplus
    413       425       1,857  
Deferred tax assets
    1,083       1,068       966  
Other non-current assets
    1,591       1,426       1,245  
     
Total non-current assets
    26,284       24,967       26,564  
 
                       
Current assets
                       
Inventories
    3,759       3,889       4,431  
Trade and other current receivables
    4,813       3,823       5,514  
Current tax assets
    167       234       241  
Cash and cash equivalents
    2,082       2,561       1,060  
Other financial assets
    334       632       259  
Non-current assets held for sale
    13       36       277  
     
Total current assets
    11,168       11,175       11,782  
 
                       
Current liabilities
                       
Financial liabilities
    (2,470 )     (4,842 )     (5,947 )
Trade payables and other current liabilities
    (8,428 )     (7,824 )     (8,377 )
Current tax liabilities
    (408 )     (377 )     (457 )
Provisions
    (698 )     (757 )     (829 )
Liabilities associated with non-current assets held for sale
                (42 )
     
Total current liabilities
    (12,004 )     (13,800 )     (15,652 )
     
Net current assets/(liabilities)
    (836 )     (2,625 )     (3,870 )
     
Total assets less current liabilities
    25,448       22,342       22,694  
 
                       
Non-current liabilities
                       
Financial liabilities due after one year
    8,826       6,363       5,607  
Non-current tax liabilities
    231       189       231  
Pensions and post-retirement healthcare benefits liabilities:
                       
Funded schemes in deficit
    2,052       1,820       787  
Unfunded schemes
    2,011       1,987       2,084  
Provisions
    695       646       785  
Deferred tax liabilities
    796       790       1,260  
Other non-current liabilities
    259       175       168  
     
Total non-current liabilities
    14,870       11,970       10,922  
 
                       
Equity
                       
Shareholders’ equity
    10,085       9,948       11,344  
Minority interests
    493       424       428  
     
Total equity
    10,578       10,372       11,772  
     
Total capital employed
    25,448       22,342       22,694  

9


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NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
1       ACCOUNTING INFORMATION AND POLICIES
The condensed interim financial statements are based on International Financial Reporting Standards (IFRS) as adopted by the EU and IFRS as issued by the International Accounting Standards Board. The basis of preparation is consistent with the year ended 31 December 2008, except as set out below, and is in compliance with IAS 34 ‘Interim Financial Reporting’.
The condensed financial statements are shown at current exchange rates, while percentage year-on-year changes are shown at both current and constant exchange rates to facilitate comparison. The income statement on page 6, the statements of comprehensive income and movements in equity on page 7 and the cash flow statement on page 8 are translated at rates current in each period. The balance sheet on page 9 and the analysis of net debt on page 13 are translated at period-end rates of exchange.
The financial statements attached do not constitute the full financial statements within the meaning of Section 240 of the UK Companies Act 1985 and Section 434 of the UK Companies Act 2006. Full accounts for Unilever for the year ended 31 December 2008 have been delivered to the Registrar of Companies. The auditors’ report on these accounts was unqualified and did not contain a statement under Section 237(2) or Section 237(3) of the UK Companies Act 1985.
Recent accounting developments
With effect from 1 January 2009 we have implemented IAS 1 (Revised) ‘Presentation of Financial Statements’ and IFRS 8 ‘Operating Segments’. Our reportable segments under IFRS 8 are our three geographic regions, and the Group’s chief operating decision maker is the Unilever Executive (UEx). In note 4 we provide analysis of the key measure of profit, being operating profit, which is used by UEx to assess the performance of the operating segments. There are no material sales between our operating regions. Figures for the prior year have been restated to reflect the fact that our operations in Central and Eastern Europe are now managed together with those in Asia and Africa. There has been no material change in the segmental analysis of assets since the position reported at 31 December 2008. We provide additional analysis by product area on a voluntary basis in note 5.
We are currently assessing the impact of the following revised standard or interpretation. These changes are not expected to have a material impact on the Group’s results of operations, financial position or disclosures.
  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 17 ‘Leases’ (effective for annual periods beginning on or after 1 January 2010) removing the specific guidance on classifying land as an operating lease.
 
  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).
2       NON-GAAP MEASURES
In our financial reporting we use certain measures that are not recognised under IFRS or other generally accepted accounting principles (GAAP). We do this because we believe that these measures are useful to investors and other users of our financial statements in helping them to understand underlying business performance. Wherever we use such measures, we make clear that these are not intended as a substitute for recognised GAAP measures. Wherever appropriate and practical, we provide reconciliations to relevant GAAP measures. The principal non-GAAP measure which we apply in our quarterly reporting is underlying sales growth, which we reconcile to changes in the GAAP measure turnover in notes 4 and 5. In note 8 we reconcile net debt to the amounts reported in our balance sheet and cash flow statement. We also comment on underlying trends in operating margin, by which we mean the movements recorded after setting aside the impact of restructuring, disposals and other one-off items, on the grounds that the incidence of these items is uneven between reporting periods.

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NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
3     SIGNIFICANT ITEMS WITHIN THE INCOME STATEMENT
In our income statement reporting we recognise restructuring costs, profits and losses on business disposals and certain other one-off items, which we collectively term RDIs. We disclose on the face of our income statement the total value of such items that arise within operating profit. In our operating review by geographic segment and in note 4 we highlight the impact of these items on our operating margin. The following schedule shows the impact on net profit of RDIs arising within operating profit, together with the related tax effect, and also highlights the impact of similar one-off items arising elsewhere in the income statement.
million
                 
    Half Year
    2009    2008 
RDIs within operating profit:
               
Restructuring
    (361 )     (330 )
Business disposals
          516  
Impairments and other one-off items
          (5 )
       
Total RDIs within operating profit
    (361 )     181  
Tax effect of RDIs within operating profit:
    102       (3 )
RDIs arising below operating profit:
    (19 )     24  
       
Total impact of RDIs on net profit
    (278 )     202  
     
The impact of RDIs on reported Earnings Per Share is given in note 9.
4     SEGMENTAL ANALYSIS BY GEOGRAPHY
Continuing operations – Half Year
                                 
    Asia Africa             Western      
million   CEE     Americas     Europe     Total  
           
 
Turnover
                               
2008
    7,022       6,453       6,470       19,945  
2009
    7,431       6,491       6,041       19,963  
Change
    5.8 %       0.6 %       (6.6)%       0.1 %  
Impact of:
                               
Exchange rates
    (2.4)%       2.8 %       (2.9)%       (0.9)%  
Acquisitions
    0.7 %       0.5 %       0.3 %       0.5 %  
Disposals
    (1.0)%       (8.1)%       (2.3)%       (3.7)%  
 
                               
Underlying sales growth
    8.8 %       5.9 %       (1.9)%       4.4 %  
 
Price
    7.4 %       5.5 %       (0.7)%       4.2 %  
Volume
    1.3 %       0.4 %       (1.2)%       0.2 %  
         
 
                               
Operating profit
                               
2008
    836       882       1,466       3,184  
2009
    966       883       705       2,554  
 
                               
Operating profit before RDIs
                               
2008
    856       949       1,198       3,003  
2009
    1,017       977       921       2,915  
 
                               
Operating margin
                               
2008
    11.9 %       13.7 %       22.7 %       16.0 %  
2009
    13.0 %       13.6 %       11.7 %       12.8 %  
 
                               
Operating margin before RDIs
                               
2008
    12.2 %       14.7 %       18.5 %       15.1 %  
2009
    13.7 %       15.1 %       15.2 %       14.6 %  

11


Table of Contents

NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
5     SEGMENTAL ANALYSIS BY PRODUCT AREA
Continuing operations – Half Year
                                         
    Savoury     Ice cream             Home care        
    dressings     and     Personal     and        
million   and spreads     beverages     care     other     Total  
             
 
                                       
Turnover
                                       
2008
    6,859       3,999       5,481       3,606       19,945  
2009
    6,544       4,132       5,803       3,484       19,963  
Change
    (4.6)%       3.3 %       5.9 %       (3.4)%       0.1 %  
Impact of:
                                       
Exchange rates
    (0.5)%       (1.5)%       0.4 %       (3.1)%       (0.9)%  
Acquisitions
    0.2 %       0.5 %       0.8 %       0.6 %       0.5 %  
Disposals
    (5.6)%       (0.1)%       0.0 %       (9.8)%       (3.7)%  
Underlying sales growth
    1.4 %       4.5 %       4.6 %       9.9 %       4.4 %  
 
                                       
Operating profit
                                       
2008
    1,422       586       880       296       3,184  
2009
    857       493       901       303       2,554  
 
                                       
Operating margin
                                       
2008
    20.7 %       14.7 %       16.1 %       8.2 %       16.0 %  
2009
    13.1 %       11.9 %       15.5 %       8.7 %       12.8 %  
6     TAXATION
The effective tax rate for the half year was 29.4% compared with 24.6% for 2008. The tax rate is calculated by dividing the tax charge by pre-tax profit excluding the contribution of joint ventures and associates.
Tax effects of components of other comprehensive income were as follows:
                                                 
million                 Half Year 2009 Half Year 2008
            Tax                    Tax     
    Before    (charge)/    After    Before    (charge)/    After 
    tax    credit    tax    tax    credit    tax 
               
 
                                               
Fair value gains/(losses) on financial instruments net of tax
              133       (48 )     85       (29 )     (5 )     (34 )
Actuarial gains/(losses) on pension schemes net of tax
    (373 )     103       (270 )     (150 )     24       (126 )
Currency retranslation gains/(losses) net of tax
    142             142       (331 )           (331 )
               
 
                                               
Other comprehensive income
    (98 )     55       (43 )     (510 )     19       (491 )

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Table of Contents

NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
7     RECONCILIATION OF NET PROFIT TO CASH FLOW FROM OPERATING ACTIVITIES
                 
million   Half Year
    2009    2008 
 
               
Net profit
    1,636       2,385  
Taxation
    656       750  
Share of net profit of joint ventures/associates and other income
from non-current investments
    (72 )     (92 )
Net finance costs
    334       141  
       
Operating profit (continuing and discontinued operations)
    2,554       3,184  
Depreciation, amortisation and impairment
    497       466  
Changes in working capital
    (260 )     (2,140 )
Pensions and similar provisions less payments
    (333 )     (42 )
Restructuring and other provisions less payments
    (123 )     (55 )
Elimination of (profits)/losses on disposals
    (2 )     (565 )
Non-cash charge for share-based compensation
    65       54  
Other adjustments
    52       (17 )
       
Cash flow from operating activities
    2,450       885  
8     NET DEBT
                         
    As at    As at    As at 
    30 June    31 December    30 June 
million   2009    2008   2008 
         
 
                       
Total financial liabilities
    (11,296 )     (11,205 )     (11,554 )
     
Financial liabilities due within one year
    (2,470 )     (4,842 )     (5,947 )
Financial liabilities due after one year
    (8,826 )     (6,363 )     (5,607 )
         
Cash and cash equivalents as per balance sheet
    2,082       2,561       1,060  
     
Cash and cash equivalents as per cash flow statement
    1,909       2,360       662  
Add bank overdrafts deducted therein
    173       201       398  
         
Financial assets
    334       632       259  
         
Net debt
    (8,880 )     (8,012 )     (10,235 )
On 12 February 2009 we issued a bond comprising two senior notes: (a) US $750 million at 3.65% maturing in 5 years and (b) US $750 million at 4.80% maturing in 10 years. On 19 March 2009 we issued senior notes of £350 million at 4.0% maturing in December 2014. On 29 May 2009 we redeemed floating rate notes of 750 million. On 11 June 2009 we issued fixed rate notes on the Eurodollar market for US $450 million at 3.125%, maturing in 2013. On 17 June 2009 we issued senior fixed rate notes for £400 million at 4.75%, maturing in 2017.

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NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
9     COMBINED EARNINGS PER SHARE
The combined earnings per share calculations are based on the average number of share units representing the combined ordinary shares of NV and PLC in issue during the period, less the average number of shares held as treasury stock.
In calculating diluted earnings per share, a number of adjustments are made to the number of shares, principally the following: (i) conversion into PLC ordinary shares in the year 2038 of shares in a group company under the arrangements for the variation of the Leverhulme Trust and (ii) the exercise of share options by employees.
Earnings per share for total operations for the six months were calculated as follows:
                 
    2009     2008  
       
 
               
Combined EPS – Basic   Millions of units
     
Average number of combined share units
                   2,792.4       2,828.1  
 
               
     million
     
Net profit attributable to shareholders’ equity
    1,489       2,248  
 
               
     
Combined EPS (Euros)
    0.53       0.79  
     
 
               
Combined EPS – Diluted   Millions of units
     
Adjusted average number of combined share units
    2,881.5       2,925.6  
 
               
     
Combined EPS – diluted (Euros)
    0.52       0.77  
       
 
               
 
               
Impact of RDIs on Earnings Per Share    million
     
Total impact of RDIs on reported net profit (see note 3)
                   (278 )     202
 
               
Impact of RDIs on basic earnings per share (Euros)
    (0.10 )     0.07
The numbers of shares included in the calculation of earnings per share is an average for the period. During the period the following movements in shares have taken place:
         
    Millions  
Number of shares at 31 December 2008 (net of treasury stock)
                   2,789.1    
Net movements in shares under incentive schemes
    7.9    
 
     
Number of shares at 30 June 2009
    2,797.0    
 
     
10     ACQUISITIONS AND DISPOSALS
On 2 April 2009 we announced the completion of our purchase of the global TIGI professional hair product business and its supporting advanced education academies.
On 23 June 2009 we announced that we had increased our holding in our business in Vietnam to 100%, following an agreement with Vinachem who previously owned 33.3% of the business.
On 3 July 2009 we completed the acquisition of Baltimor Holding ZAO’s sauces business in Russia. The acquisition includes ketchup, mayonnaise and tomato paste business under the Baltimor, Pomo d’Oro and Vostochniy Gourmand brands – accounting for turnover of around 70 million – and a production facility at Kolpino, near St Petersburg.
On 25 September we announced that we will acquire the personal care business of Sara Lee for 1.275 billion in cash. The transaction is subject to regulatory approval and consultation with European Works Councils and is expected to be completed during the first half of 2010.
On 7 October we announced the sale of our equity interest in JohnsonDiversey. Unilever will receive US $158 million in cash together with US $250 million in senior notes, payable in cash or in kind. The transaction is conditional on debt financing and regulatory approvals and is expected to close before the year end.

14


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NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
11     DIVIDENDS
The Boards have declared interim dividends in respect of 2009 at the following rates which are equivalent in value at the rate of exchange applied under the terms of the Equalisation Agreement between the two companies:
Per Unilever N.V. ordinary share: 0.2695 (2008: 0.2600)
Per Unilever PLC ordinary share: £ 0.2422 (2008: £ 0.2055)
Per Unilever N.V. New York share: US$ 0.3950 (2008: US$ 0.3320)
Per Unilever PLC American Depositary Receipt: US$ 0.3950 (2008: US$ 0.3301)
The interim dividends have been determined in Euros and converted into equivalent Sterling and US Dollar amounts using exchange rates issued by the European Central Bank on 3 November 2009.
The interim dividends will be payable as from 16 December 2009, to shareholders registered at close of business on 20 November 2009. The shares will go ex-dividend on 18 November 2009.
US dollar checks for the interim dividend will be mailed on 15 December 2009, to holders of record at the close of business on 20 November 2009. In the case of the NV New York shares, Netherlands withholding tax will be deducted.
12     EVENTS AFTER THE BALANCE SHEET DATE
There were no material post balance sheet events other than those mentioned elsewhere in this report.
13     GUARANTOR STATEMENTS
On 18 November 2008, NV and Unilever Capital Corporation (UCC) filed a US Shelf registration, which provides for the issuance of debt securities that are unconditionally and fully guaranteed, jointly and severally, by NV, PLC and Unilever United States, Inc. (UNUS). This supersedes the previous NV and UCC US Shelf registration filed on 2 October 2000, which provides for the issuance of debt securities that are unconditionally and fully guaranteed, jointly and severally, by NV, PLC and UNUS. Of the US Shelf registration, US $2.75 billion of Notes were outstanding at 31 December 2008 (2007: US $2.75 billion; 2006: US $2.75 billion) with coupons ranging from 5.90% to 7.125%. These Notes are repayable between 1 November 2010 and 15 November 2032.
Provided below are the income statements, cash flow statements and balance sheets of each of the companies discussed above, together with the income statement, cash flow statement and balance sheet of non-guarantor subsidiaries. These have been prepared under the historical cost convention, and, aside from the basis of accounting for investments at net asset value (equity accounting), comply in all material respects with International Financial Reporting Standards. The financial information in respect of Unilever N.V., Unilever PLC and Unilever United States, Inc. has been prepared with all subsidiaries accounted for on an equity basis. The financial information in respect of the non-guarantor subsidiaries has been prepared on a consolidated basis.
million
                                                         
    Unilever    Unilever            Unilever                 
    Capital    N.V.    Unilever    United                 
    Corporation    parent    PLC    States Inc.    Non-             
Income Statement   subsidiary    issuer/    parent     subsidiary    guarantor            Unilever
Six months ended 30 June 2009   issuer    guarantor    guarantor    guarantor    subsidiaries    Eliminations    Group
 
 
                                                       
Continuing operations:
                                                       
 
                                                       
Turnover
    -       -       -       -       19,963       -       19,963  
     
 
                                                       
Operating Profit
    -       211       (146 )     (13 )     2,502       -       2,554  
Finance income
    -       -       -       -       44       -       44  
Finance costs
    (95 )     (73 )     (5 )     -       (115 )     -       (288 )
Pensions and similar obligations
    -       (3 )     -       (34 )     (53 )     -       (90 )
Intercompany finance costs
    114       25       (26 )     (68 )     (45 )     -       -  
Dividends
    -       158       -       731       (889 )     -       -  
Share of net profit/(loss) of joint ventures
    -       -       -       -       63       -       63  
Share of net profit/(loss) of associates
    -       -       -       -       (3 )     -       (3 )
Other income from non-current investments
    -       -       -       -       12       -       12  
     
 
                                                       
Profit before taxation
    19       318       (177 )     616       1,516       -       2,292  
Taxation
    (7 )     (56 )     64       (148 )     (509 )     -       (656 )
     
 
                                                       
Net profit from continuing operations
    12       262       (113 )     468       1,007       -       1,636  
Net profit from discontinued operations
    -       -       -       -       -       -       -  
Equity earnings of subsidiaries
    -       1,226       1,602       (342 )     -       (2,486 )     -  
     
 
                                                       
Net Profit
    12       1,488       1,489       126       1,007       (2,486 )     1,636  
     
Attributable to:
                                                       
Minority interest
    -       -       -       -       147       -       147  
Shareholders’ equity
    12       1,488       1,489       126       860       (2,486 )     1,489  
 

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NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
13     GUARANTOR STATEMENTS (CONTINUED)
€ million
                                                         
    Unilever     Unilever             Unilever                      
    Capital     N.V.     Unilever     United                      
    Corporation     parent     PLC     States Inc.     Non-                
Income Statement   subsidiary     issuer/     parent     subsidiary     guarantor             Unilever  
Six months ended 30 June 2008   issuer     guarantor     guarantor     guarantor     subsidiaries     Eliminations     Group  
 
Continuing operations:
                                                       
 
                                                       
Turnover
    -       -       -       -       19,945       -       19,945  
     
   
Operating Profit
    -       61       67       (10 )     3,066       -       3,184  
Finance income
    -       53       -       -       (2 )     -       51  
Finance costs
    (86 )     (87 )     -       -       (86 )     -       (259 )
Pensions and similar obligations
    -       (4 )     -       (16 )     87       -       67  
Intercompany finance costs
    91       (12 )     26       (31 )     (74 )     -       -  
Dividends
    -       -       38       -       (38 )     -       -  
Share of net profit/(loss) of joint ventures
    -       -       -       -       74       -       74  
Share of net profit/(loss) of associates
    -       -       -       -       8       -       8  
Other income from non-current investments
    -       -       -       -       10       -       10  
     
 
                                                       
Profit before taxation
    5       11       131       (57 )     3,045       -       3,135  
Taxation
    (2 )     (24 )     (99 )     (114 )     (511 )     -       (750 )
     
 
                                                       
Net profit from continuing operations
    3       (13 )     32       (171 )     2,534       -       2,385  
Net profit from discontinued operations
    -       -       -       -       -       -       -  
Equity earnings of subsidiaries
    -       2,261       2,216       399       -       (4,876 )     -  
     
 
                                                       
Net Profit
    3       2,248       2,248       228       2,534       (4,876 )     2,385  
     
Attributable to:
                                                       
Minority interest
    -       -       -       -       137       -       137  
Shareholders’ equity
    3       2,248       2,248       228       2,397       (4,876 )     2,248  
 

16


Table of Contents

NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
13     GUARANTOR STATEMENTS (CONTINUED)
                                                         
    € million     € million     € million     € million     € million     € million     € million
    Unilever     Unilever             Unilever                      
    Capital     N.V.     Unilever     United                      
    Corporation     parent     PLC     States Inc.     Non-                
Balance Sheet   subsidiary     issuer/     parent     subsidiary     guarantor             Unilever
As at 30 June 2009   issuer     guarantor     guarantor     guarantor     subsidiaries     Eliminations     Group
 
Goodwill and intangible assets
    -       46       26       -       16,864       -       16,936  
Property, plant and equipment
    -       -       -       1       6,260       -       6,261  
Pension asset for funded schemes in surplus
    -       -       -       -       413       -       413  
Deferred tax assets
    -       -       -       717       366       -       1,083  
Other non-current assets
    -       -       -       14       1,577       -       1,591  
Amounts due from group companies
after one year
    4,693       3,223       -       -       (7,916 )     -       -  
Net assets of subsidiaries (equity accounted)
    -       30,074       15,876       7,960       (34,022 )     (19,888 )     -  
     
 
Total non-current assets
    4,693       33,343       15,902       8,692       (16,458 )     (19,888 )     26,284  
     
 
                                                       
Inventories
    -       -       -       -       3,759       -       3,759  
Amounts due from group companies
within one year
    -       838       742       -       (1,580 )     -       -  
Trade and other current receivables
    -       117       1       9       4,686       -       4,813  
Current tax assets
    -       173       -       (2 )     (4 )     -       167  
Other financial assets
    -       -       -       -       334       -       334  
Cash and cash equivalents
    2       10       -       (2 )     2,072       -       2,082  
Assets held for sale
    -       -       -       -       13       -       13  
     
Total current assets
    2       1,138       743       5       9,280       -       11,168  
     
Financial liabilities
    (1,384 )     (45 )     -       -       (1,041 )     -       (2,470 )
Amounts due to group companies
within one year
    -       (17,292 )     (5,574 )     -       22,866       -       -  
Trade payables and other current liabilities
    (38 )     (207 )     (2 )     (11 )     (8,170 )     -       (8,428 )
Current tax liabilities
    (6 )     (129 )     (95 )     (6 )     (172 )     -       (408 )
Provisions
    -       (26 )     -       -       (672 )     -       (698 )
Liabilities associated with assets held for sale
    -       -       -       -       -       -       -  
     
Total current liabilities
    (1,428 )     (17,699 )     (5,671 )     (17 )     12,811       -       (12,004 )
     
Net current assets/(liabilities)
    (1,426 )     (16,561 )     (4,928 )     (12 )     22,091       -       (836 )
     
Total assets less current liabilities
    3,267       16,782       10,974       8,680       5,633       (19,888 )     25,448  
 
Financial liabilities due after one year
    2,986       3,268       874       -       1,698       -       8 826  
Amounts due to group companies
after one year
    -       3,089       -       846       (3,935 )     -       -  
Pension and post-retirement
healthcare liabilities:
                                                       
Funded schemes in deficit
    -       -       -       440       1,612       -       2,052  
Unfunded schemes
    -       84       -       681       1,246       -       2,011  
Provisions
    -       1       -       3       691       -       695  
Deferred tax liabilities
    -       97       15       -       684       -       796  
Other non-current liabilities
    -       158       -       142       190       -       490  
     
Total non-current liabilities
    2,986       6,697       889       2,112       2,186       -       14,870  
     
Shareholders’ equity attributable to:
                                                       
Unilever NV
    -       (1,907 )     -       -       -       1,907       -  
Unilever PLC
    -       -       11,992       -       -       (11,992 )     -  
Called up share capital
    -       274       210       -       -       -       484  
Share premium account
    -       25       96       99       (99 )     -       121  
Other reserves
    (2 )     (3,841 )     (2,419 )     715       (2,242 )     1,529       (6,260 )
Retained profit
    283       15,534       206       5,754       5,295       (11,332 )     15,740  
     
Total shareholders’ equity
    281       10,085       10,085       6,568       2,954       (19,888 )     10,085  
     
Minority interests
    -       -       -       -       493       -       493  
     
Total equity
    281       10,085       10,085       6,568       3,447       (19,888 )     10,578  
     
Total capital employed
    3,267       16,782       10,974       8,680       5,633       (19,888 )     25,448  
 

17


Table of Contents

NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
13     GUARANTOR STATEMENTS (CONTINUED)
                                                         
    € million     € million     € million     € million     € million     € million     € million  
    Unilever     Unilever             Unilever                      
    Capital     N.V.     Unilever     United                      
    Corporation     parent     PLC     States Inc.     Non-                
Balance Sheet   subsidiary     issuer/     parent     subsidiary     guarantor             Unilever  
As at 31 December 2008   issuer     guarantor     guarantor     guarantor     subsidiaries     Eliminations     Group  
 
Goodwill and intangible assets
    -       51       23       -       16,017       -       16,091  
Property, plant and equipment
    -       -       -       1       5,956       -       5,957  
Pension asset for funded schemes in surplus
    -       -       -       -       425       -       425  
Deferred tax assets
    -       -       -       777       291       -       1,068  
Other non-current assets
    -       -       -       15       1,411       -       1,426  
Amounts due from group companies after one year
    3,960       2,919       -       -       (6,879 )     -       -  
Net assets of subsidiaries (equity accounted)
    -       28,829       14,360 *     9,534       (32,361 )*     (20,362 )     -  
     
   
Total non-current assets
    3,960       31,799       14,383       10,327       (15,140 )     (20,362 )     24,967  
     
 
Inventories
    -       -       -       -       3,889       -       3,889  
Amounts due from group companies within one year
    -       2,570       611       -       (3,181 )     -       -  
Trade and other current receivables
    -       61       (2 )     5       3,759       -       3,823  
Current tax assets
    -       24       -       80       130       -       234  
Other financial assets
    -       -       -       -       632       -       632  
Cash and cash equivalents
    (3 )     7       -       (4 )     2,561       -       2,561  
Assets held for sale
    -       -       -       -       36       -       36  
     
Total current assets
    (3 )     2,662       609       81       7,826       -       11,175  
     
Financial liabilities
    (1,755 )     (772 )     -       -       (2,315 )     -       (4,842 )
Amounts due to group companies within one year
    -       (17,181 )     (4,923 )*     -       22,104 *     -       -  
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 )     (5,031 )     (16 )     11,158       -       (13,800 )
     
Net current assets/(liabilities)
    (1,793 )     (15,459 )     (4,422 )     65       18,984       -       (2,625 )
     
Total assets less current liabilities
    2,167       16,340       9,961       10,392       3,844       (20,362 )     22,342  
 
Financial liabilities due after one year
    1,923       3,080       -       (2 )     1,362       -       6,363  
Amounts due to group companies after one year
    -       3,089       -       666       (3,755 )     -       -  
Pension and post-retirement healthcare liabilities:
                                                       
Funded schemes in deficit
    -       -       -       449       1,371       -       1,820  
Unfunded schemes
    -       85       -       712       1,190       -       1,987  
Provisions
    -       41       -       3       602       -       646  
Deferred tax liabilities
    -       64       13       -       713       -       790  
Other non-current liabilities
    -       33       -       122       209       -       364  
     
Total non-current liabilities
    1,923       6,392       13       1,950       1,692       -       11,970  
     
Shareholders’ equity attributable to:
                                                       
Unilever NV
    -       -       11,091       -       -       (11,091 )     -  
Unilever PLC
    -       (1,143 )     -       -       -       1,143       -  
Called up share capital
    -       274       210       -       -       -       484  
Share premium account
    -       25       96       -       -       -       121  
Other 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 )     15,812  
     
Total shareholders’ equity
    244       9,948       9,948       8,442       1,728       (20,362 )     9,948  
Minority interests
    -       -       -       -       424       -       424  
     
Total equity
    244       9,948       9,948       8,442       2,152       (20,362 )     10,372  
     
Total capital employed
    2,167       16,340       9,961       10,392       3,844       (20,362 )     22,342  
 
* Figures revised from Unilever’s Form 20-F dated 6 March 2009 to reflect a 2008 group reorganisation. These figures are eliminated on consolidation.

18


Table of Contents

NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
13     GUARANTOR STATEMENTS (CONTINUED)
€ million
                                                         
    Unilever     Unilever             Unilever                      
    Capital     N.V.     Unilever     United                      
    Corporation     parent     PLC     States Inc.     Non-                
Cash flow statement   subsidiary     issuer/     parent     subsidiary     guarantor             Unilever
Six months ended 30 June 2009   issuer     guarantor     guarantor     guarantor     subsidiaries     Eliminations     Group
 
Cash flow from operating activities
    15       431       (162 )     (81 )     2,247       -       2,450  
Income tax paid
    -       (58 )     43       (41 )     (375 )     -       (431 )
     
Net cash flow from operating activities
    15       373       (119 )     (122 )     1,872       -       2,019  
     
Interest received
    114       (23 )     13       -       (66 )     -       38  
Net capital expenditure
    -       (3 )     -       -       (503 )     -       (506 )
Acquisitions and disposals
    -       -       -       -       (365 )     -       (365 )
Other investing activities
    -       865       -     634       (1,504 )     -       (5 )
     
Net cash flow from /(used in) investing activities
    114       839       13     634       (2,438 )     -       (838 )
     
Dividends paid on ordinary share capital
    -       (620 )     (582 )     (731 )     631       -       (1,302 )
Interest and preference dividends paid
    (79 )     (111 )     (32 )     (68 )     32       -       (258 )
Change in financial liabilities
    (45 )     (545 )     715       187       (182 )     -       130  
Share buy-back programme
    -       -       -       -       -       -       -  
Other movement on treasury stock
    -       67       5       3       (58 )     -       17  
Other financing activities
    -       -       -       97       (140 )     -       (43 )
     
Net cash flow from/(used in) financing activities
    (124 )     (1,209 )     106       (512 )     283     -       (1,456 )
     
Net increase/(decrease) in cash and cash equivalents
    5       3       -       -       (283 )     -       (275 )
     
Cash and cash equivalents at beginning of year
    (3 )     7       -       (4 )     2,360       -       2,360  
Effect of foreign exchange rates
    -       -       -       2       (178 )     -       (176 )
     
Cash and cash equivalents at end of year
    2       10       -       (2 )     1,899       -       1,909  
 

19


Table of Contents

NOTES TO THE INTERIM FINANCIAL STATEMENTS
(unaudited)
13     GUARANTOR STATEMENTS (CONTINUED)
€ million
                                                         
    Unilever     Unilever             Unilever                      
    Capital     N.V.     Unilever     United                      
    Corporation     parent     PLC     States Inc.     Non-                
Cash flow statement   subsidiary     issuer/     parent     subsidiary     guarantor             Unilever  
Six months ended 30 June 2008   issuer     guarantor     guarantor     guarantor     subsidiaries     Eliminations     Group  
 
Cash flow from operating activities
    -       (66 )     62       130       759       -       885  
Income tax paid
    -       27       (74 )     (58 )     (376 )     -       (481 )
     
Net cash flow from operating activities
    -       (39 )     (12 )     72       383       -       404  
     
Interest received
    91       14       27       -       6       (74 )     64  
Net capital expenditure
    -       (14 )     -       1       (478 )     -       (491 )
Acquisitions and disposals
    -       -       -       -       403       -       403  
Other investing activities
    -       745       -       -       (2,009 )     1,304       40  
     
Net cash flow from /(used in) investing activities
    91       745       27       1       (2,078 )     1,230       16  
     
Dividends paid on ordinary share capital
    (85 )     (794 )     (528 )     -       213       -       (1,194 )
Interest and preference dividends paid
    -       (99 )     -       (31 )     (145 )     74       (201 )
Change in financial liabilities
    (6 )     1,119       559       -       1,713       (1,304 )     2,081  
Share buy-back programme
    -       (1,077 )     (8 )     -       -       -       (1,085 )
Other movement on treasury stock
    -       145       (38 )     (45 )     (81 )     -       (19 )
Other financing activities
    -       -       -       -       (89 )     -       (89 )
     
Net cash flow from/(used in) financing activities
    (91 )     (706 )     (15 )     (76 )     1,611       (1,230 )     (507 )
     
Net increase/(decrease) in cash and cash equivalents
    -       -       -       (3 )     (84 )     -       (87 )
     
Cash and cash equivalents at beginning of year
    1       2       -       (2 )     900       -       901  
Effect of foreign exchange rates
    -       -       -       4       (156 )     -       (152 )
     
Cash and cash equivalents at end of year
    1       2       -       (1 )     660       -       662  
 

20