PARENT COMPANY MANAGEMENT
DISCUSSION AND ANALYSIS
PARENT COMPANY PROFIT AND LOSS ACCOUNT
Neopost SA made an operating loss of €2.7m in 2003. Operating revenues consist of fees for assisting subsidiaries, brand
royalties and refunds of expenses paid on behalf of subsidiaries, and totalled €10.1m, partly covering operating expenses of
€12.8m.
The company made a net financial income of €36.9m, breaking down as follows:
€m
At January 2004
Interest on external borrowings
(14.1)
Net revenues from internal loans and borrowings
0.7
Dividends received
37.0
Cancellation of debt
(0.7)
Sales of investment securities
0.7
Net income from currency and swap transactions
0.1
Provisions for exchange rate losses
(10.4)
Exchange rate gain on the repayment of an $88m loan
23.8
Other
(0.2)
Total
36.9
Taking into account net tax income of €3.4m arising from the tax consolidation system, Neopost SA made a net income of
€38.1m.
PARENT COMPANY BALANCE SHEET
ASSETS
Unlike in 2002, Neopost SA did not make any major acquisitions in the 2003 fiscal year. Financial fixed assets totalled
€686.8m at the end of the year.
Other receivables mainly comprise a €1.8m facility granted to Satas (French distribution subsidiary), a €12.3m facility
granted to Mail Finance (French financing subsidiary), a €13.6m facility granted to Neopost Industrie (French production
subsidiary), a €25.1m facility granted to Neopost Inc (US distribution subsidiary), a €3.0m facility granted to Neopost Japan,
a €4.2m facility granted to Hasler Inc and facilities of €6.1m granted to other subsidiaries. They also include €18.1m of
prepaid income tax.
LIABILITIES
Neopost SA’s share capital and paid-in capital were adjusted following the exercise of 24,100 options, which increased the share
capital by €24,100 and paid-in capital by €692,140, making a total of €716,240. Retained earnings were increased by the
appropriation of the previous year’s net income.
Debts at 31 January 2004 breakdown as follows:
€m
At 31 January 2004
OCEANE convertible bonds
135.0
US Private Placement
174.4
Revolving credit facility
25.0
Borrowings from subsidiaries
42.0
Accrued interest not yet matured
15.4
Total
391.8
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