up in February / March 2000 : issue of convertible bonds for euro 135 million and re-negotiation of a new senior debt  at  better  conditions  for  the  Group.  In  2001, Neopost  benefited  from  profitable  currency  hedging operations which was not the case in the previous year. Net  financial  expenses  are    euro  18.7  million  in  2001 compared to euro 22.9 million in 2000. Very   strong   growth   in   net   income   excluding extraordinary items Net income is euro 38.1 million, an increase of 5.8% over  last  year.  Neopost  benefited  in  2000  of  net extraordinary profits of euro 7.3 million coming mainly from  the  sale  of  the  industrial  land  in  the  United Kingdom  (euro  6.8  million),  whereas  in  2001,  the re-organization of the Online activities impacted the accounts by a net extraordinary loss of euro 1.0 million. Excluding  those  extraordinary  items  Neopost  net income increased by 36.2% from euro 28.7 million in 2000 to euro 39.1 million in 2001. CASH FLOW The main events in 2002 were as follows: n the acquisition of Ascom Hasler’s Mailing Systems division for euro 217 million, n the acquisition of Stielow, a German distribution company whose activities include the marketing of Neopost products in Germany, for euro 34 million, n the raising of additional debt in order to carry out these acquisitions, totalling dollar 88 million and euro 51 million, maturing in 2007, n an increase in the working capital requirement due to: • the  consolidation  of  Stielow  and  Ascom  Hasler,  whose inventories and trade receivables are higher than standard Neopost levels, • exceptionally   high   inventories   of   finished   products following the closure of the Ascom Hasler plant in Bern, n capital expenditure of euro 50 million, relating mainly to rental machines, n excellent cash flow, which helped to fund acquisitions. OTHER FINANCIAL INFORMATION Exchange rate effects on operating profit North America accounts for 43% of Neopost’s sales, and the company is exposed to fluctuations in the dollar against the euro. However, an almost identical proportion of Neopost’s current expenses  and  production  costs  will  also  be  denominated  in dollars in 2003.In addition,since 43% of Neopost’s net debt is in dollars,the company’s operating and net margins are unlikely to experience any major impact from movements in the euro / dollar exchange rate. At 28 February, 100% of Neopost’s dollar / euro conversion requirements were hedged at rates substantially lower than the 1.05 figure used in the budget.This further reduces Neopost’s exposure to fluctuations in the dollar against the euro. Interest rates 75% of floating-rate debt maturing in 2003,58% in 2004 and 6% in 2005 is hedged using either interest rate swaps or caps. <26> Management discussion and analysis SHAREHOLDERS At 31 January 2003, the ownership of Neopost SA’s capital was as follows: Number of shares % Groupe Crédit Agricole 1,641,770 5.42% Management and employees 828,208 2.73% Directors 1,151 0.00% Other shareholders ^(*) 27,834,110 91.85% TOTAL 30,305,239 100.00% (*) at 31 January 2003, only one pension funds had stated controlling more than 5% of Neopost capital: Fidelity for 11%. CORPORATE GOVERNANCE The Board of Directors held four meetings during the 2002 financial  year.  An  Audit  Committee  and  a  Remuneration Committee  were  established  in  October  2000  to  give  the Board greater means of action. Each Director’s term of office is limited to three years.