NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

UNILEVER GROUP CONTINUED

2. SEGMENT INFORMATION CONTINUED
ADDITIONAL INFORMATION BY GEOGRAPHIES
Although the Group’s operations are managed by product area, we provide additional information based on geographies. The analysis of turnover
by geographical area is stated on the basis of origin.
€ million € million € million € million
Asia/ The
AMET/RUB(d) Americas Europe Total

2016
Turnover 22,445 17,105 13,163 52,713
Operating profit 3,275 2,504 2,022 7,801
Non-core items 19 222 4 245
Core operating profit 3,294 2,726 2,026 8,046
Share of net profit/(loss) of joint ventures and associates (2) 108 21 127
2015
Turnover 22,425 17,294 13,553 53,272
Operating profit 3,019 2,273 2,223 7,515
Non-core items 16 244 90 350
Core operating profit 3,035 2,517 2,313 7,865
Share of net profit/(loss) of joint ventures and associates (1) 96 12 107
2014
Turnover 19,703 15,514 13,219 48,436
Operating profit 2,626 3,233 2,121 7,980
Non-core items (15) (959) 14 (960)
Core operating profit 2,611 2,274 2,135 7,020
Share of net profit/(loss) of joint ventures and associates - 68 30 98
(d) Refers to Asia, Africa, Middle East, Turkey, Russia, Ukraine and Belarus.

Transactions between the Unilever Group’s geographical regions are immaterial and are carried out on an arm’s length basis.

3. GROSS PROFIT AND OPERATING COSTS

RESEARCH AND MARKET SUPPORT COSTS
Expenditure on research and market support, such as advertising, is charged to the income statement as incurred.

NON-CORE ITEMS
Disclosed on the face of the income statement are costs and revenues relating to business disposals, acquisition and disposal-related costs,
impairments and other one-off items, which we collectively term non-core items due to their nature and/or frequency of occurrence. These
items are material in terms of nature and/or amount and are relevant to an understanding of our financial performance.
Business disposals generate both gains and losses which are not reflective of underlying performance. Acquisition and disposal-related costs are
charges directly attributable to the acquisition or disposal of group companies.

€ million € million € million

2016 2015 2014
Turnover 52,713 53,272 48,436
Cost of sales (30,229) (30,808) (28,387)
of which: Distribution costs (3,246) (3,358) (3,079)
Gross profit 22,484 22,464 20,049
Selling and administrative expenses (14,683) (14,949) (12,069)
of which: Brand and Marketing Investment (7,731) (8,003) (7,166)
Research and Development (978) (1,005) (955)
Operating profit 7,801 7,515 7,980

92 Financial Statements Unilever Annual Report and Accounts 2016