K E Y   F I G U R E S Neopost   achieved   a   significant   increase   in profitability   in   2003,   showing   its   ability   to integrate   acquisitions,   realise   synergies   and boost productivity, sales growth and technological  innovation  all  at  the  same  time. Operating   margin   rose   from   17.5%   in   2002 to  20.7%  in  2003,  and  net  margin  from  9.2% to 11.1%. North America France UK Rest of the world Germany 41% 30% 13% 9% 7% SALES BY COUNTRY (% of total 2003 sales) Neopost benefits from a geographical split of sales that is in line with the market breakdown. In 2003, Neopost achieved positive organic growth in each of its three main markets, i.e. North America, France and the UK. OPERATING INCOME (in €m) The improvement in productivity is mainly the result of new digital products and synergies arising from the Ascom Hasler acquisition. As a result of a 17.2% jump in operating income in 2003, Neopost is one year ahead of its original schedule. 2001 83 2002 133 2003 156 CONSOLIDATED SALES (in €m) In 2003, sales decreased by 1.3% but rose by 7.4% excluding currency effects. On a pro forma basis and excluding currency effects, sales only decreased by 0.9%, which was a good performance given the various positive factors that boosted 2002 figures. 2001 575 2002 761 2003 751 Controlling currency risk Neopost successfully balanced its dollar sales and expenditures following decisions taken and implemented in previous years. As a result, Neopost can maintain its margins regardless of the dollar’s movements, which only have a translation effect on the financial statements. This control over currency risk is a major advantage for Neopost. Refinancing Neopost refinanced its debt on excellent terms, through a private placement in the US market ($185m and €25m) and a €350m syndicated revolving credit facility. Neopost’s debt structure is now ideally suited to the financing of its rental and leasing businesses, enabling it to optimise its cash management. In 2003…