Unilever 2006 Annual Report Download - page 16

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Unilever Annual Report and Accounts 2006 13
Report of the Directors (continued)
Operating review by region
Basis of reporting
In this Operating review we comment on our changes in revenue
on the basis of underlying sales growth (USG). This measure
reflects the change in revenue at constant rates of exchange,
(average exchange rates for the preceding year) excluding the
effects of acquisitions and disposals. It is a measure that provides
valuable additional information on the underlying performance
of the business. In particular, it presents the organic growth of
our business year on year and is used internally as a core measure
of sales performance.
USG is not a measure which is defined under either IFRS or US
GAAP. It should not be considered in isolation from, or as a
substitute for, financial information presented in compliance
with either IFRS or US GAAP. This measure as reported by us
may not be comparable with similarly titled measures reported
by other companies.
The reconciliation of USG to turnover for each of our reporting
regions is given in the following section, and for the Group in
total on page 25.
The reporting in this section is based on results for continuing
operations. Following the disposal of the majority of our
European frozen foods businesses during 2006, the operations
which we classify under this heading are different from those
which were included as continuing operations in our Report and
Accounts 2005.