PRELIMINARY RESULTS NETHERLANDS / UK CORPORATES

Bangkok--Mar 17--Fitch Ratings (Thailand) PRELIMINARY RESULTS NETHERLANDS / UK CORPORATES Unilever NV and Unilever PLC Short-term: `F1' Senior Unsecured: `A+' Outlook: Stable Unilever NV and Unilever PLC announced results of the Unilever Group ("UG") for the year to 31 December 2002. Total turnover (including share of jvs' turnover) reduced by 6.3% to EUR48.8bn, mostly due to adverse exchange rate effects (-6.0%) and disposals (-4.8%) of non-core activities, as partially offset by organic growth of 4.2%. Leading brands, which accounted for 90% of sales at YE02 delivered a higher +5.4% sales growth. By division and excluding currency effects, the group's performance breaks down as follows:- In Foods, total sales were broadly stable at EUR28.8bn but operating profit (before exceptionals and amortisation of goodwill and intangibles ("beia")) increased to EUR4.2bn (the margin increasing from 14.4% to 14.8%). Leading brands' growth was +4.4% but individual brands such as Knorr, Bertolli, and Hellmann's reported growth in the high single digits or more. More specifically the single macro-categories performed as follows: Savoury and Dressings reported a thin +1% growth to EUR10.1bn while sales of Spreads and Cooking Products reduced by 4% resulting from withdrawal of products in connection with the sizeable on-going effort to shift products from non-core to leading brands and from the disposal of the Mazola and Loders Croklan oil businesses. A +4% sales growth to EUR4.5bn was reported by Health, Wellness, and Beverages led by the Lipton and Slim Fast (now a EUR1bn-plus sales brand) brands. A small decrease in sales (-1%) was reported by Ice Cream and Frozen Foods to EUR7.6bn resulting from a not so strong performance of the now European-only frozen foods operations and the exit in FY01 of some under-performing ice cream markets. In Home and Personal Care ("HPC"), sales were substantially unchanged at EUR22.7bn as a result of Home Care and Professional sales reducing by EUR1bn due to the disposal of Diversey Lever and sales in Personal Care delivering strong growth of +8% (by c.EUR1bn) resulting from brand stretching and new product launches around the core brands Dove, Rexona, and Axe in the skin, deodorant and hair categories. Laundry products continued to experience competitive markets in Europe as volume growth of 4% only translated to sales growth of 1%, whereas the category contributed strongly to an increase of profitability in North America and had both strong profit and sales in emerging markets. Overall, operating profit (beia) for the HPC division increased from EUR3.1bn to EUR3.5bn with the margin up by 160 bp to 15.2% thanks to savings and to a better product mix aided by the strength of UG's core brands and innovation. Consolidated operating profit (beia) was practically unchanged at EUR7,260m (including share of profits of associates) due to adverse exchange rate movements. Excluding these, it increased by 6.5% thanks to rationalisation benefits from the Path to Growth ("PtG") process and the integration of Bestfoods, as partly offset by higher advertising and promotion charges and by price reductions. Group operating profit margin beia in fact improved by 100 basis points to 14.9%. Operating exceptionals of EUR1.3bn incurred in relation to PtG were slightly lower than the previous year (EUR1.5bn). Net Interest costs reduced to EUR1.2bn (EUR1.6bn), and net interest cover (pre-exceptional EBITDA- based) improved to 6.9x from 5.4x. Thanks to better cash flow from operating activities (FY02: EUR7.9bn, FY01: EUR7.5bn) and lower taxes paid (FY02: EUR1.8bn, FY01 EUR2.2bn), but higher capex (FY02: EUR1.7bn, FY01: EUR1.4bn), FY02 Net Free Cash Flow ("NFCF") for the year doubled to EUR1.5bn (EUR0.7bn). Disposals raised almost EUR1.8bn. YE02 net debt contracted to EUR17.0bn (YE01: EUR23.2bn), also thanks to a beneficial foreign exchange and a non-cash effect of EUR3.0bn, denoting a net debt / EBITDA (pre-exceptionals) ratio of 2.1x (2.6x). Overall, FY02 results confirm that UG is well on track to fully deliver by FY04 the targets it had set in February 2000 when PtG was launched including the EUR1.6bn of procurement savings achieved in the year and full integration savings targets related to Bestfoods (EUR0.8bn). Also, YE02's 90% portion of sales generated with leading brands is now closer to the group's 95% target. As integration of the Bestfoods acquisition was completed in the first half, more resources were available in the second half for innovation also in the Food division, which was lagging the more successful Personal Care business. Management expects the last period of PtG, in FY03 and FY04 to reap these benefits and show sustainable growth and profitability, in addition to seeing the cash costs for restructuring phase out gradually. Contact : Giulio Lombardi, London Tel: +44 (0) 20 7417 6314 Comment Eldon House 2 Eldon Street London EC2M 7UA +44 (0)207 417 4222 www.fitchratings.com End. -SN-

• ข่าวUnilever Group
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