MANAGEMENT DISCUSSION AND ANALYSIS
DISCUSSION AND ANALYSIS OF NEOPOST GROUP’S FINANCIAL POSITION AND RESULTS
The financial statements for the year ended 31 January 2004 include Ascom Hasler and core businesses of Stielow 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 businesses outside North America for 8 months and Stielow for 5 months.
To make the analysis easier, pro forma financial statements have been drawn up in accordance with the Group’s accounting
principles. These pro forma financial statements include all Ascom Hasler and Stielow businesses for 12 months in 2002
and 2003, except for the Stielow businesses that have now been sold.
HISTORICAL BREAKDOWN OF OPERATING RESULTS
31 January 2004
31 January 2003
€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%
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R&D expenses
(32.8)
(4.4)%
(32.7)
(4.5)%
(33.4)
(4.4)%
(38.2)
(4.7)%
Sales and marketing
(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
(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%
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Net financial income (expenses)
(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%
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Extraordinary income (expenses)
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%
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