Notes to the consolidated accounts

2 Segment information

Our primary reporting segments are geographic, comprising our three operating regions of Europe, The Americas and Asia Africa. The home countries of the Unilever Group are the Netherlands and the United Kingdom. Turnover for these two countries combined in 2007 was €3 768 million (2006: €3 710 million; 2005: €3 679 million). The combined operating profit in 2007 was €444 million (2006: €555 million; 2005: €648 million). Turnover for the United States for 2007 was €7 120 million (2006: €7 627 million; 2005: €7 550 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 set out within note 2, 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
Analysis by geographical segment Europe The
Americas		 Asia
Africa		 Total
2007
Turnover 15 205 13 442 11 540 40 187
Operating profit 1 678 1 971 1 596 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 15 000 13 779 10 863 39 642
Operating profit 1 903 2 178 1 327 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
2005
Turnover 14 940 13 179 10 282 38 401
Operating profit 2 064 1 719 1 291 5 074
Net finance costs (613)
Share of net profit/(loss) of joint ventures 11 36 – 47
Share of net profit/(loss) of associates (25) 1 (1) (25)
Other income from non-current investments 33
Profit before taxation 4 516
Taxation (1 181)
Net profit from continuing operations 3 335
Net profit from discontinued operations 640
Net profit 3 975
Assets
2007
Segment assets 14 502 10 867 6 279 31 648
Joint ventures/associates 201 11 12 224
Total assets by geographical segment 14 703 10 878 6 291 31 872
Corporate assets 5 430
Total assets 37 302
2006
Segment assets 14 411 11 548 5 875 31 834
Joint ventures/associates 78 16 9 103
Total assets by geographical segment 14 489 11 564 5 884 31 937
Corporate assets 5 135
Total assets 37 072
Liabilities
2007
Segment liabilities 3 964 1 702 2 568 8 234
Joint ventures/associates 15 10 5 30
Total liabilities by geographical segment 3 979 1 712 2 573 8 264
Corporate liabilities 16 219
Total liabilities 24 483
 
2006
Segment liabilities 4 078 1 790 2 231 8 099
Joint ventures/associates 18 11 5 34
Total liabilities by geographical segment 4 096 1 801 2 236 8 133
Corporate liabilities 17 267
Total liabilities 25 400
Capital expenditure
2007 672 342 411 1 425
2006 511 396 294 1 201
Depreciation of property, plant and equipment
2007 (381) (249) (174) (804)
2006 (368) (239) (180) (787)
2005 (390) (230) (150) (770)
Amortisation of finite-lived intangible assets and software
2007 (76) (48) (16) (140)
2006 (63) (76) (18) (157)
2005 (52) (38) (9) (99)
Impairment charges
2007
Goodwill – – – –
Intangible assets – – – –
Total impairment charge – – – –
 
2006
Goodwill (12) – – (12)
Intangible assets – (2) – (2)
Total impairment charge (12) (2) – (14)
 
2005
Goodwill – (129) (2) (131)
Intangible assets – (241) (10) (251)
Other – – (15) (15)
Total impairment charge – (370) (27) (397)
Other non-cash charges
2007 (366) (216) (66) (648)
2006 (679) (231) (52) (962)
2005 (224) (311) (53) (588)

 

Analysis by product area

Although the Group's operations are managed on a geographical basis, the two Foods and Home and Personal Care categories manage brands which we group into our principal product areas; these are secondary reporting segments and are listed below.

Savoury, dressings and spreads – including sales of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, olive oil, margarines and spreads, and cooking products such as liquid margarines.

Ice cream and beverages – including sales of ice cream, tea, weight management products, and nutritionally enhanced staples sold in developing markets.

Personal care – including sales of skin care and hair care products, deodorants and anti-perspirants, and oral care products.

Home care and other operations – including sales of home care products, such as laundry powders and liquids, and a wide range of cleaning products. To support our consumer brands, we own tea plantations, the results of which are reported within this segment.

  € million € million € million € million € million
Analysis by product area Savoury, dressings and spreads Ice cream and beverages Personal care Home care and other Total
2007
Turnover 13 988 7 600 11 302 7 297 40 187
Operating profit 2 059 809 1 786 591 5 245
Net finance costs (252)
Share of net profit/(loss) of joint ventures 15 85 1 1 102
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 13 767 7 578 11 122 7 175 39 642
Operating profit 1 993 900 1 913 602 5 408
Net finance costs (721)
Share of net profit/(loss) of joint ventures 13 64 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
2005
Turnover 13 557 7 332 10 485 7 027 38 401
Operating profit 2 026 609 1 793 646 5 074
Net finance costs (613)
Share of net profit/(loss) of joint ventures 10 36 1 – 47
Share of net profit/(loss) of associates – – – (25) (25)
Other income from non-current investments 33
Profit before taxation 4 516
Taxation (1 181)
Net profit from continuing operations 3 335
Net profit from discontinued operations 640
Net profit 3 975
Assets
2007
Segment assets 19 794 4 434 3 752 3 668 31 648
Joint ventures/associates 19 134 12 59 224
Total assets by product area 19 813 4 568 3 764 3 727 31 872
Corporate assets 5 430
Total assets 37 302
2006
Segment assets 20 435 4 485 3 616 3 298 31 834
Joint ventures/associates 29 24 7 43 103
Total assets by product area 20 464 4 509 3 623 3 341 31 937
Corporate assets 5 135
Total assets 37 072
Capital expenditure
2007 451 350 383 241 1 425
2006 387 327 195 292 1 201