Unilever 2008 Annual Report Download - page 92

Notes to the consolidated accounts Unilever Group
Unilever Annual Report and Accounts 2008 89
Financial statements
2 Segment information
Our primary reporting segments are geographic. During 2008 we reorganised the management of our regions so that our operations in
Central & Eastern Europe were managed together with those in Asia and Africa, whereas they had previously been managed together with
those in Western Europe. This change reflects our strategic focus on the developing world and the fact that these markets share many common
characteristics. As at the end of 2008 our revised structure comprises the three operating regions of Western Europe, The Americas, and Asia,
Africa and Central & Eastern Europe (AACEE). We are therefore now reporting segmentally on this revised basis and have restated prior year
amounts accordingly. The home countries of the Unilever Group are the Netherlands and the United Kingdom. Turnover for these two countries
combined in 2008 was €3 543 million (2007: €3 768 million; 2006: €3 710 million). The combined operating profit in 2008 was €754 million
(2007: €444 million; 2006: €555 million). Turnover for the United States for 2008 was €6 606 million (2007: €7 120 million; 2006: €7 627
million). No other country had turnover of more than 10% of the Group total.
The analysis of turnover by geographical area is stated on the basis of origin. Turnover on a destination basis would not be materially different.
Inter-segment sales between geographical areas and between product areas as on page 91 are not material. Total assets and capital expenditure
are based on the location of the assets. Segment results are presented on the basis of operating profit. Segment assets consist primarily of
property, plant and equipment, goodwill and other intangible assets, inventories and receivables. Corporate assets consist of current and
deferred tax and pension assets, cash and cash equivalents, and other current or non-current financial assets. Segment liabilities consist primarily
of trade payables and other liabilities. Corporate liabilities include financial liabilities, tax balances payable, provisions and pension and deferred
tax liabilities. Capital expenditure comprises additions to property, plant and equipment and intangible assets, including additions resulting from
acquisitions. Other non-cash charges include charges to the income statement during the year in respect of share-based compensation,
restructuring and other provisions.
€ million € million € million € million
Western The Asia Africa
Analysis by geographical segment Europe Americas CEE Total
2008
Turnover 12 853 13 199 14 471 40 523
Operating profit 2 521 2 945 1 701 7 167
Net finance costs (257)
Share of net profit/(loss) of joint ventures 60 63 2 125
Share of net profit/(loss) of associates 6––6
Other income from non-current investments 88
Profit before taxation 7 129
Taxation (1 844)
Net profit from continuing operations 5 285
Net profit from discontinued operations -
Net profit 5 285
2007
Turnover 13 327 13 442 13 418 40 187
Operating profit 1 563 1 971 1 711 5 245
Net finance costs (252)
Share of net profit/(loss) of joint ventures 26 74 2 102
Share of net profit/(loss) of associates 50 – – 50
Other income from non-current investments 39
Profit before taxation 5 184
Taxation (1 128)
Net profit from continuing operations 4 056
Net profit from discontinued operations 80
Net profit 4 136
2006
Turnover 13 322 13 779 12 541 39 642
Operating profit 1 787 2 178 1 443 5 408
Net finance costs (721)
Share of net profit/(loss) of joint ventures 17 60 1 78
Share of net profit/(loss) of associates 36 – – 36
Other income from non-current investments 30
Profit before taxation 4 831
Taxation (1 146)
Net profit from continuing operations 3 685
Net profit from discontinued operations 1 330
Net profit 5 015
Amounts for 2007 and 2006 have been restated in line with the changes in regional organisation.