30 31 INCOME STATEMENT HIGHLIGHTS The financial statements for the year ended 31 January 2004 include Ascom Hasler and Stielow core businesses for the full 12 months. They also include Stielow’s label printing business, which was sold on 1 September 2003, for 8 months and Stielow’s print finishing business, which was sold on 1 March 2004, for 12 months. The financial statements for the year ended 31 January 2003 included Ascom Hasler’s North American business for 11 months, Ascom Hasler’s non-North American activities for 8 months and Stielow for 5 months. To make it easier to analyse Neopost in its new configuration, pro forma financial statements have been drawn up in accordance with   the   group’s   accounting   principles.   These   financial   statements   include   all   Ascom   Hasler   and   Stielow   businesses, for 12 months in 2002 and 2003, except for the non-core Stielow businesses that have now been sold. Year ended 31 January 2004 Year ended 31 January 2004 €m Neopost Neopost Neopost Neopost Pro forma Pro forma Sales 750.9     100.0 % 730.8    100.0 % 760.6   100.0 % 804.6     100.0 % Cost of sales (211.1)    (28.1)% (199.1)   (27.2)% (236.0)   (31.0)% (248.0)    (30.8)% Gross margin 539.8 71.9 % 531.7 72.8 % 524.6 69.0 % 556.6 69.2 % nnnnnnnnnnn nnnnnnnnnnn nnnnnnnnnnn nnnnnnnnnnn R&D expenses (32.8) (4.4)% (32.7) (4.5)% (33.4) (4.4)% (38.2) (4.7)% Sales and marketing expenses (191.4)    (25.5)% (187.9)   (25.7)% (195.1)   (25.6)% (206.4)    (25.7)% Administrative expenses (93.4)    (12.4)% (91.1)   (12.4)% (100.2)   (13.2)% (105.8)    (13.2)% Service and other operating expenses (64.6) (8.6)% (61.2) (8.4)% (61.4) (8.1)% (66.0) (8.2)% Employee profit-sharing (1.9) (0.3)% (2.0) (0.3)% (1.6) (0.2)% (1.6) (0.2)% Operating income 155.7 20.7 % 156.8 21.5 % 132.9 17.5 % 138.6 17.2 % nnnnnnnnnnn nnnnnnnnnnn nnnnnnnnnnn nnnnnnnnnnn Net financial income (expense) (26.7) (3.5)% (26.7) (3.7)% (25.0) (3.3)% (27.0) (3.3)% Profit on ordinary activities before tax 129.0 17.2 % 130.1 17.8 % 107.9 14.2 % 111.6 13.9 % nnnnnnnnnnn nnnnnnnnnnn nnnnnnnnnnn nnnnnnnnnnn Net extraordinary income (expense) 0.4 - 0.4 - 0.2 - 0.2 - Income tax (40.5) (5.4)% (40.9) (5.6)% (33.3) (4.4)% (34.5) (4.3)% Results of associated companies 0.6 0.1  % 0.6 0.1  % 0.7 0.1 % 0.7 0.1  % Minority interests - - - - (0.1) - (0.1) - Goodwill amortisation (6.0) (0.8)% (6.0) (0.8)% (5.7) (0.8)% (6.0) (0.8)% Net income 83.5 11.1 % 84.2 11.5 % 69.7 9.2 % 71.9 8.9 % nnnnnnnnnnn nnnnnnnnnnn nnnnnnnnnnn nnnnnnnnnnn