12 CONSOLIDATED  PROFIT  AND  LOSS  ACCOUNT At 31 January €m Notes 2004 2003 2002 Sales (14) 750.9 760.6 575.0 Operating expenses Cost of sales (211.1) (236.0) (162.3) R&D expenses (32.8) (33.4) (32.8) Sales and marketing expenses (191.4) (195.1) (162.4) Administrative expenses (93.4) (100.2) (78.7) Service and other operating expenses (64.6) (61.4) (54.0) Employee profit sharing (1.9) (1.6) (1.5) Including depreciation of (59.8) (66.4) (45.5) Operating income (15) 155.7 132.9 83.3 nnnnnnnn nnnnnnnn nnnnnnnn Financial income Interest income 1.2 3.6 5.1 Gains on foreign exchange 40.9 21.4 9.8 Financial expenses Interest expenses (29.7) (29.6) (24.6) Losses on foreign exchange (39.0) (20.4) (9.0) (Increase)/decrease in financial provisions (0.1) - - Net financial income/(expenses) (26.7) (25.0) (18.7) nnnnnnnn nnnnnnnn nnnnnnnn Profit on ordinary activities before tax 129.0 107.9 64.6 nnnnnnnn nnnnnnnn nnnnnnnn Net extraordinary income/(expenses) (16) 0.4 0.2 (1.6) Income tax (13) (40.5) (33.3) (20.9) Results of associated companies 0.6 0.7 0.5 Minority interests - (0.1) - Goodwill amortisation (6.0) (5.7) (4.5) Net income 83.5 69.7 38.1 nnnnnnnn nnnnnnnn nnnnnnnn Earnings per share (in euro) (17) 2.75 2.30 1.26 nnnnnnnn nnnnnnnn nnnnnnnn Fully diluted earnings per share (in euro) (17) 2.43 2.04 1.13 nnnnnnnn nnnnnnnn nnnnnnnn The following notes form an integral part of the consolidated financial statements.