IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

Wiley lFRS: Practicallmplementation Guide and Workbook

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Ba sis of calculation

The calculations of combined earn ings per share are based on the net profi t attributable to ordi– nary cap ital divided by the average number of share units representing the combined ordinary capital of NV and PLC in issue during the year , after deducting shares held as treasury stock. Earni ngs per share are calculated on the basis of the revised nominal share values which have bee n app lied since 22 May 2006 and wh ich resulted in a one-to-one equivalence of ordinary shares of NV and PLC as re– gards their economic interest in the Group. For furthe r information please refer to note 22 on page 109. The calc ulations of diluted earning s per share are based on: (i) conversion into PLC ordinary shares of the shares in a group company which are convertible in the year 2038, as descri bed in Corpo– rate governance on page 42; (ii) conversion of the EO.OS NV preference shares, de tails of wh ich are set out below and in note 22 on page 109; (iii) the effect of sha re-based compensation plans, det ails of which are set out in note 29 on pages 117 to 121; and (iv) the forw ard equit y contract desc ribed in note 29 on page 121. On 15 February 2005, Unilever converted its EO.OS NV preference shares into ordi nary EO.SI NV shares. The conversion was made using shares already held by Unilever for the purposes of satisfying the Group's share-based compensation plans. Unilever bought further ord inary shares in the market during 2005 to the extent required to restore the hedging position. Until the date of conversio n, the EO.OS preference shares were potenti ally dilutive for the purp oses of the calculation of fully dil uted ea rnings per share , as shown below. At midnight on 13 July 2005 the EO.OS NV preference shares were cancelled. Calcula tion of average number of sha r e un its

Millions of share units

2005

2004

2006

Net profit attributable to shareholders' equity Less preference dividends Net profit attributed to ordinary capital for basic earnings per share calculation Adjusted net profit attributed to ordinarycapital for the diluted earnings per share calculation* Add shares issuable in 2038 Add shares for conversion Adddilutive effect of share-based compensation plans and forward equity contract Adjusted combined average numberof share units for diluted earnings per share basis Calculation of earnings Average number of shares NY PLC Less shares held by employee share trusts and companies Combined average number of share units for all bases except diluted earnings per share

1,714.7 1,714.7 1,714.7 1,310.2 1,310.2 1,310.2 ~) .uus. ~) 2,883.3 2,913.0 2,890.2 70,9 70.9 70.9 7.1 56.6

18.3

14.9

16.0

3 032 6

3.QQ1J)

~

2004 f million 2,755 ~)

2006 f million 4,745 n!.JJ

2005 f million 3,766 nLa

;Llli

;Llli lli2 In accordance with lAS 33. the net profit fo r diluted earnings per sha re has been adjusted fo r the pref erence dividend on shares f or conversion, which in 2006 amounted to € nil (2005: € 3 million; 2004 € 2 J million).