UNILEVER PLC

Some of our non-GAAP measures are adjusted to exclude items defined as non-underlying. Management considers non-underlying items to be

significant, unusual or non-recurring in nature and so believes that separately identifying them helps users better understand the financial

performance of the Group from period to period.

■Non-underlying items within operating profit are gains or losses on business disposals, acquisition and disposal-related costs,

restructuring costs, impairments and other approved one-off items within operating profit classified here due to their nature and frequency.

■Non-underlying items not in operating profit but within net profit are net monetary gains/(losses) arising from hyperinflationary economies

and significant and unusual items in net finance cost, share of profit/(loss) of joint ventures and associates and taxation.

■Non-underlying items after taxare calculated as non-underlying items within operating profit after tax plus non-underlying items not in

operating profit but within net profit after tax.

Consequently, within underlying operating profit we exclude the following items:

■Restructuring costs are costs that are directly attributable to a restructuring project. Management defines a restructuring project as a

strategic, major initiative that delivers cost savings and materially changes either the scope of the business or the manner in which the

business is conducted.

■Acquisition and disposal-related costs are costs that are directly attributable to a business acquisition or disposal project.