Unilever N.V. (UN) | Analysis of Investments

Investment Accounting Policy

Available-for-sale financial assets

Any financial assets not classified as either loans and receivables or financial assets at fair value through profit or loss are designated as available-for-sale. They are initially recognised at fair value, usually the original invoice amount plus any directly related transaction costs. Afterwards they are measured at fair value with changes being recognised in equity. When the investment is sold or impaired, the accumulated gains and losses are moved from equity to the income statement. Interest and dividends from these assets are recognised in the income statement.

Financial assets at fair value through profit or loss

These are derivatives and assets that are held for trading. Related transaction costs are expensed as incurred. Unless they form part of a hedging relationship, these assets are held at fair value, with changes being recognised in the income statement.

Source: Unilever N.V., Annual Report

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Unilever N.V., adjustment to Net Profit Attributable To Shareholders’ Equity

	12 months ended	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Net profit attributable to shareholders’ equity (as reported)
	Add: Fair value gains (losses) on available-for-sale financial assets net of tax
	Net profit attributable to shareholders’ equity (adjusted)

Adjusted Ratios: Mark to Market Available-for-sale Securities (Summary)

Unilever N.V., adjusted ratios

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	Net Profit Margin
	Reported net profit margin	%	%	%	%	%
	Adjusted net profit margin	%	%	%	%	%
	Return on Equity (ROE)
	Reported ROE	%	%	%	%	%
	Adjusted ROE	%	%	%	%	%
	Return on Assets (ROA)
	Reported ROA	%	%	%	%	%
	Adjusted ROA	%	%	%	%	%

Adjusted Net Profit Margin

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net profit attributable to shareholders’ equity (USD $ in millions, translated from EUR €)
	Turnover (USD $ in millions, translated from EUR €)
	Net profit margin1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net profit attributable to shareholders’ equity (USD $ in millions, translated from EUR €)
	Turnover (USD $ in millions, translated from EUR €)
	Adjusted net profit margin2	%	%	%	%	%

2011 Calculations

Adjusted Return On Equity (ROE)

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net profit attributable to shareholders’ equity (USD $ in millions, translated from EUR €)
	Shareholders' equity (USD $ in millions, translated from EUR €)
	ROE1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net profit attributable to shareholders’ equity (USD $ in millions, translated from EUR €)
	Shareholders' equity (USD $ in millions, translated from EUR €)
	Adjusted ROE2	%	%	%	%	%

2011 Calculations

Adjusted Return On Assets (ROA)

		Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008	Dec 31, 2007
	As Reported
	Net profit attributable to shareholders’ equity (USD $ in millions, translated from EUR €)
	Total assets (USD $ in millions, translated from EUR €)
	ROA1	%	%	%	%	%
	Adjusted: Mark to Market Available-for-sale Securities
	Adjusted net profit attributable to shareholders’ equity (USD $ in millions, translated from EUR €)
	Total assets (USD $ in millions, translated from EUR €)
	Adjusted ROA2	%	%	%	%	%

2011 Calculations