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LSE: IIR authorised by

Unilever N.V. 10 July 2008

Update Report – 1Q 08 Results

Increase in commodity prices is expected to maintain our subdued outlook

Common HOLD Direct access to the full report free of charge at

Fundamental research indicates a 9% downside in the common stock over the next 6-24 months. We
have calculated the target price based on fundamental factors, using a weighted average of target
Stock http://www.iirgroup.com/researchoracle/viewreport/show/20268
prices obtained by using DCF and comparative valuation methodologies.

Ticker: Unc.AS
Target Price: €17.08
Current Price: €18.75 We reiterate the common stock a HOLD with a target price of €17.08.

NYSE Stock SELL The NYSE Stock is expected to depreciate by approximately 21% over the next 6-24 months,
approximately 12 percentage points downside is attributable purely to the anticipated depreciation of
the Euro against the US dollar over the same period. We continue to value this stock over a 6-24
month investment horizon as we do not anticipate a significant currency impact in the medium term.
Ticker: UN
Target Price: US$23.06
Current Price: US$29.18 We reiterate the NYSE stock a SELL with a 6-24 month target price of US$23.06.

Supervisor: Jinesh Joshi

Analyst: Swati Gupta
Editor: Adil Bahar, PhD
Global Research Director:
Satish Betadpur, CFA
Next news due:
2Q 08, 31 July 2008
Investment horizon – short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-24 months. If
this report is provided to you by your broker under the Global Settlement, you may now also access (free of
charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming
5-30 days for readers with a shorter trading horizon. These are available on-line only at
www.researchoracle.com

Report summary
Although Unilever recorded healthy revenue growth from Asia Africa, this was significantly offset by
poor performance from the Americas and Europe, leading to a marginal 0.5% y-o-y growth in revenues
in 1Q 08. Management expects the implementation of its single SAP system program and other cost
saving initiatives to offset increase in costs. However, considering the challenging market conditions,
rising commodity costs and fuel prices; flat volumes and price growth in developed economies, we
believe Unilever’s margins will be negatively impacted, going forward. Therefore, we hold a subdued
outlook for the company.

Currency impact for US investors

The impact by itself of the anticipated currency movements on the NYSE stock (now US$29.18),
without considering changes in the share price, is broadly negative and is expected to be:

Over 6 months: US$31.50

Over 12 months: US$28.13
Over 24 months: US$25.31

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