MIRA INFORM REPORT

Report Date :

07.11.2013

IDENTIFICATION DETAILS

Name :	NEOPOST INDUSTRIE SA
Registered Office :	113 Rue Jean Marie Naudin, Bagneux, 92220
Country :	France
Financials (as on) :	31.01.2013
Date of Incorporation :	15.01.2002
Com. Reg. No.:	440736080
Legal Form :	Public Subsidiary
Line of Business :	Manufacture of electronic mailroom equipment including franking machines, postal scales, traceability systems and solutions for mailing systems, folders, inserters and addressing.
No. of Employees :	407

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Slow but correct
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
France	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

FRANCE - ECONOMIC OVERVIEW

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With at least 79 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. France's real GDP contracted 2.6% in 2009, but recovered somewhat in 2010 and 2011, before stagnating in 2012. The unemployment rate increased from 7.4% in 2008 to 10.3% in 2012. Youth unemployment shot up to 24.2% during the third quarter of 2012 in metropolitan France. Lower-than-expected growth and high unemployment costs have strained France's public finances. The budget deficit rose sharply from 3.4% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4.8% of GDP in 2012, while France's public debt rose from 68% of GDP to 90% over the same period. Under President SARKOZY, Paris implemented some austerity measures to bring the budget deficit under the 3% euro-zone ceiling by 2013 and to highlight France's commitment to fiscal discipline at a time of intense financial market scrutiny of euro-zone debt. Socialist Party candidate Francois HOLLANDE won the May 2012 presidential election, after advocating pro-growth economic policies, the separation of banks' traditional deposit taking and lending activities from more speculative businesses, increasing the top corporate and personal tax rates, and hiring an additional 60,000 teachers during his five-year term. The government's attempt to introduce a 75% wealth tax on income over one million euros for two years was struck down by the French Constitutional Council in December 2012 because it applied to individuals rather than households. France ratified the EU fiscal stability treaty in October 2012 and HOLLANDE's government has maintained France's commitment to meeting the budget deficit target of 3% of GDP during 2013 even amid signs that economic growth will be lower than the government's forecast of 0.8%. Despite stagnant growth and fiscal challenges, France's borrowing costs declined during the second half of 2012 to euro-era lows.

Source : CIA

Company Name and Address

Neopost Industrie SA

113 rue Jean Marie Naudin
Bagneux, 92220
France
Tel:	+33 01 45 36 30 00
Fax:	+33 01 45 36 30 30
www.neopost.com

Employees:	407
Company Type:	Public Subsidiary
Corporate Family:	86 Companies
Ultimate Parent:	Neopost SA
Incorporation Date:	15-Jan-2002

Financials in:	USD (Mil)
Fiscal Year End:	31-Jan-2013
Reporting Currency:	Euro
Annual Sales:	67.9
Total Assets:	62.1

Business Description

Manufacture of electronic mailroom equipment including franking machines, postal scales, traceability systems and solutions for mailing systems, folders, inserters and addressing

Industry

Industry	Machinery and Equipment Manufacturing
ANZSIC 2006:	2421 - Computer and Electronic Office Equipment Manufacturing
ISIC Rev 4:	2817 - Manufacture of office machinery and equipment (except computers and peripheral equipment)
NACE Rev 2:	2823 - Manufacture of office machinery and equipment (except computers and peripheral equipment)
NAICS 2012:	333318 - Other Commercial and Service Industry Machinery Manufacturing
UK SIC 2007:	2823 - Manufacture of office machinery and equipment (except computers and peripheral equipment)
US SIC 1987:	3579 - Office Machines, Not Elsewhere Classified

Key Executives

Name	Title
Thierry Le Jaoudour	Chairman of the Board
Henri Dura	Administrateur
Jean-François Labadie	Administrateur

News

Title	Date
Patent Issued for Production of Mail Pieces and Preparations Therefor Computer Weekly News (986 Words)	10-Jul-2013
US Patent granted to Neopost Industrie B.V. (NL) on July 02 titled as "Production of mail pieces and preparations therefor". US Official News (246 Words)	4-Jul-2013
US Patent Issued to Neopost Industrie on July 2 for "Production of mail pieces and preparations therefor" (Dutch Inventor) U.S. Fed News (250 Words)	2-Jul-2013
Patent Issued for Method of Preparing Mail Pieces Including Reply Items Journal of Engineering (1119 Words)	28-Nov-2012
US Patent Issued to Neopost Industrie on Nov. 20 for "Method of Preparing Mail Pieces Including Reply Items" (Dutch Inventor) U.S. Fed News (247 Words)	21-Nov-2012

Registered No.(FRA): 440736080

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7763489
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7371818

Corporate Overview

Location
113 rue Jean Marie Naudin
Bagneux, 92220
France

Tel:	+33 01 45 36 30 00
Fax:	+33 01 45 36 30 30

www.neopost.com

Sales EUR(mil):	52.7
Assets EUR(mil):	45.8
Employees:	407
Fiscal Year End:	31-Jan-2013

Industry:	Office Equipment

Incorporation Date:	15-Jan-2002
Company Type:	Public Subsidiary
Quoted Status:	Not Quoted
Registered No.(FRA):	440736080

Chairman of the Board:	Thierry Le Jaoudour

Industry Codes

ANZSIC 2006 Codes:
2421	-	Computer and Electronic Office Equipment Manufacturing

ISIC Rev 4 Codes:
2817	-	Manufacture of office machinery and equipment (except computers and peripheral equipment)

NACE Rev 2 Codes:
2823	-	Manufacture of office machinery and equipment (except computers and peripheral equipment)

NAICS 2012 Codes:
333318	-	Other Commercial and Service Industry Machinery Manufacturing

US SIC 1987:
3579	-	Office Machines, Not Elsewhere Classified

UK SIC 2007:
2823	-	Manufacture of office machinery and equipment (except computers and peripheral equipment)

Business Description

Manufacture of electronic mailroom equipment including franking machines, postal scales, traceability systems and solutions for mailing systems, folders, inserters and addressing.

More Business Descriptions

Neopost Industrie is primarily engaged in manufacture of manual or electric typewriters; manufacture of word-processing machines; manufacture of hectograph or stencil duplicating machines, addressing machines and sheet fed office type offset printing machines; manufacture of calculating machines, cash registers, postage franking machines, special terminals for issuing of tickets and reservations, etc.; and manufacture of diverse office machinery or equipment (machines that sort, wrap or count coins; automatic banknote dispensers; machines that stuff envelopes, sort mail; pencil sharpening machines; perforating or stapling machines, etc.).

Financial Data

Financials in:	EUR(mil)
Revenue:	52.7
Assets:	45.8
Current Assets:	36.4
Total Liabilities:	45.8
Issued Capital:	22.0
Net Worth:	25.5
Date of Financial Data:	31-Jan-2013

1 Year Growth

-8.6%

NA

Corporate Structure News

Total Corporate Family Members: 86

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Neopost SA	Parent	Bagneux	France	Machinery and Equipment Manufacturing	1,378.2	5,900
Neopost France SA	Subsidiary	Nanterre	France	Commercial and Industrial Rental	321.2	749
Neopost Technologies	Subsidiary	Bagneux	France	Machinery and Equipment Manufacturing	8.7	149
Valipost Sas	Subsidiary	Villeneuve D Ascq	France	Computer System Design Services	4.7	14
Neopost Ltd.	Subsidiary	Romford	United Kingdom	Machinery and Equipment Manufacturing	138.8	622
Neopost Inc.	Subsidiary	Hayward, CA	United States	Machinery and Equipment Manufacturing		1,307
Neopost Leasing Inc.	Subsidiary	Hayward, CA	United States	Commercial and Industrial Rental	4.3	250
Neopost Industrie AG	Subsidiary	Bern	Switzerland	Communications Equipment Manufacturing		193
Neopost Ltd.	UK Branch/Trading address	Birmingham	United Kingdom	Machinery and Equipment Manufacturing	138.8	600
Neopost Finance Ltd.	Subsidiary	Romford	United Kingdom	Banking		350
Neopost Pension Trustees Ltd.	Subsidiary	Romford	United Kingdom	Pensions and Funds
Satori Software Ltd.	Subsidiary	Romford	United Kingdom	Computer System Design Services
The Ink People Ltd.	Subsidiary	London	United Kingdom
Neopost Industrie SA	Subsidiary	Bagneux	France	Machinery and Equipment Manufacturing	67.9	407
Mail Services	Subsidiary	Nanterre	France	Electronic Equipment Repair and Maintenance	51.0	374
Neopost USA Inc	Subsidiary	Milford, CT	United States	Machinery and Equipment Manufacturing	200.0	300
Neopost	Branch	Austin, TX	United States	Machinery and Equipment Manufacturing	47.0	75
Neopost	Branch	Southington, CT	United States	Advertising Services	16.9	50
Neopost	Branch	Southfield, MI	United States	Advertising Services	12.8	50
Neopost	Branch	Salt Lake City, UT	United States	Computer, Office Equipment and Software Merchant Wholesalers	81.3	35
Neopost	Branch	Itasca, IL	United States	Machinery and Equipment Manufacturing	11.0	30
Neopost	Branch	Cherry Hill, NJ	United States	Machinery and Equipment Manufacturing	10.6	30
Neopost	Branch	Houston, TX	United States	Machinery and Equipment Manufacturing	18.2	29
Neopost	Branch	Hayward, CA	United States	Machinery and Equipment Manufacturing	8.0	25
Neopost	Branch	Carrollton, TX	United States	Machinery and Equipment Manufacturing	12.5	20
Neopost	Branch	Brecksville, OH	United States	Machinery and Equipment Manufacturing	7.4	20
Neopost	Branch	Denver, CO	United States	Machinery and Equipment Manufacturing	6.3	20
Neopost	Branch	New York, NY	United States	Machinery and Equipment Manufacturing	5.8	20
Neopost	Branch	Burlington, MA	United States	Machinery and Equipment Manufacturing	5.6	20
Neopost	Branch	Tampa, FL	United States	Machinery and Equipment Manufacturing	5.6	20
Neopost	Branch	Tampa, FL	United States	Machinery and Equipment Manufacturing	5.6	20
Neopost	Branch	Dublin, OH	United States	Miscellaneous Professional Services	2.3	20
Rena Systems Inc	Subsidiary	Norristown, PA	United States	Machinery and Equipment Manufacturing		20
Neopost	Branch	Monroeville, PA	United States	Machinery and Equipment Manufacturing	6.5	19
Neopost	Branch	Sacramento, CA	United States	Computer, Office Equipment and Software Merchant Wholesalers	36.7	15
Neopost	Branch	Chicago, IL	United States	Machinery and Equipment Manufacturing	5.5	15
Neopost	Branch	San Francisco, CA	United States	Computer, Office Equipment and Software Merchant Wholesalers	34.2	14
Neopost	Branch	Portland, OR	United States	Computer, Office Equipment and Software Merchant Wholesalers	31.1	14
Neopost	Branch	Rancho Cucamonga, CA	United States	Machinery and Equipment Manufacturing	3.2	10
Neopost	Branch	San Antonio, TX	United States	Machinery and Equipment Manufacturing	3.8	6
Neopost	Branch	Metairie, LA	United States	Computer, Office Equipment and Software Merchant Wholesalers	8.8	4
Neopost	Branch	Austin, TX	United States	Computer, Office Equipment and Software Merchant Wholesalers	2.5	1
Hasler, Inc.	Subsidiary	Milford, CT	United States	Computer, Office Equipment and Software Merchant Wholesalers		250
Neopost Hasler Inc	Branch	Grand Rapids, MI	United States	Computer, Office Equipment and Software Merchant Wholesalers	62.8	30
Neopost Hassler Inc	Branch	Birmingham, AL	United States	Machinery and Equipment Manufacturing	7.8	20
Neopost Hasler Inc	Branch	Shelton, CT	United States	Computer, Office Equipment and Software Merchant Wholesalers	33.7	14
Neopost Hasler Inc	Branch	Irondale, AL	United States	Machinery and Equipment Manufacturing	4.7	12
Neopost Hasler Inc	Branch	Cedar Knolls, NJ	United States	Advertising Services	1.7	5
Neopost GmbH & Co	Subsidiary	München, Bayern	Germany	Computer, Office Equipment and Software Merchant Wholesalers	92.2	150
Neopost Leasing GmbH	Subsidiary	München, Bayern	Germany	Banking		1
Neopost Sverige AB	Subsidiary	Solna	Sweden	Machinery and Equipment Manufacturing		100
Neopost BV	Subsidiary	Almere	Netherlands	Machinery Wholesale		90
Neopost BVBA	Subsidiary	Zaventem	Belgium	Computer, Office Equipment and Software Merchant Wholesalers		80
DMTI Spatial Inc	Subsidiary	Markham, ON	Canada	Miscellaneous Store Retailers	7.6	75
Neopost Italia S.R.L	Subsidiary	Rho, Milan	Italy	Computer, Office Equipment and Software Merchant Wholesalers	20.8	74
Human Inference GmbH	Subsidiary	Düsseldorf, Nordrhein-Westfalen	Germany	Research and Development Services		70
Neopost	Subsidiary	Almere, Rijndijk	Netherlands	Communications Equipment Manufacturing		63
Neopost Canada Limited	Subsidiary	Markham, ON	Canada	Miscellaneous Manufacturing	10.0	50
Neopost Canada	Branch	Mont-Royal, QC	Canada	Machinery and Equipment Manufacturing	11.3	22
Neopost Canada	Branch	Richmond Hill, ON	Canada	Computer, Office Equipment and Software Merchant Wholesalers	10.8	20
Neopost Canada	Branch	Calgary, AB	Canada	Computer, Office Equipment and Software Merchant Wholesalers	4.9	9
Neopost Canada	Branch	Ottawa, ON	Canada	Computer, Office Equipment and Software Merchant Wholesalers	3.8	7
Neopost AG	Subsidiary	Wallisellen	Switzerland	Machinery Wholesale		35
NEOPOST NORGE	Subsidiary	Oslo	Norway	Machinery and Equipment Manufacturing		35
Human Inference Enterprise B.V.	Subsidiary	Arnhem, Gelderland	Netherlands	Software	8.5	33
Satori Software Inc.	Subsidiary	Seattle, WA	United States	Electronics and Appliances Stores	17.0	20
Monticello Software, Inc.	Subsidiary	Mineral, VA	United States	Software		7
Ishi Software Ltd.	Subsidiary	London	United Kingdom	Computer System Design Services		5
Neopost Japan Inc.	Subsidiary	Tokyo	Japan	Machinery and Equipment Manufacturing		20
Human Inference B.V.	Subsidiary	Arnhem, Gelderland	Netherlands	Computer, Office Equipment and Software Merchant Wholesalers		8
GMC Software Technology AG	Subsidiary	Effretikon, Zurich	Switzerland	Software		5
Neopost GmbH & Co	Subsidiary	Vienna	Austria	Computer, Office Equipment and Software Merchant Wholesalers		5
Gmc Software Ag	Subsidiary	Appenzell, Appenzell Innerrhoden	Switzerland	Software	1,417.1
Gmc Software Technology S.R.O.	Subsidiary	Hradec Kralove	Czech Republic	Computer Programming	8.4	133
Gmc Software Technology Sp Z O O	Subsidiary	Warszawa	Poland	Computer, Office Equipment and Software Merchant Wholesalers	0.3	50
Gmc Software Technology Ltd.	Subsidiary	Loughborough	United Kingdom	Computer System Design Services	4.6	33
Gmc Software Technology (Singapore) Pte. Ltd.	Subsidiary	Singapore	Singapore	Computer Programming		10
Gmc Software Technology	Subsidiary	Boulogne Billancourt	France	Research and Development Services	4.7	7
Mail Finance Sas	Subsidiary	Bagneux	France	Commercial and Industrial Rental	76.1
Neopost Id	Subsidiary	Cavaillon	France	Grocery Stores	28.2
Neopost (Holdings) Ltd.	Subsidiary	Romford	United Kingdom	Miscellaneous Professional Services
Neopost International Supply Ltd.	Subsidiary	Romford	United Kingdom	Machinery and Equipment Manufacturing	374.9
Mailroom Holding B.V.	Subsidiary	Drachten, Friesland	Netherlands	Banking
Neopost Technologies B.V.	Subsidiary	Drachten, Friesland	Netherlands	Machinery and Equipment Manufacturing	39.9	237
RENA GmbH	Subsidiary	München, Bayern	Germany	Computer, Office Equipment and Software Merchant Wholesalers
Neopost Luxembourg	Subsidiary	Bertrange	Luxembourg	Professional and Commercial Equipment Wholesale

Executive Report

Board of Directors

Name	Title	Function
Thierry Le Jaoudour	Chairman of the Board	Chairman
Henri Dura	Administrateur	Director/Board Member
Jean-François Labadie	Administrateur	Director/Board Member

News

Patent Issued for Production of Mail Pieces and Preparations Therefor Computer Weekly News (986 Words)	10-Jul-2013
US Patent granted to Neopost Industrie B.V. (NL) on July 02 titled as "Production of mail pieces and preparations therefor". US Official News (246 Words)	04-Jul-2013
US Patent Issued to Neopost Industrie on July 2 for "Production of mail pieces and preparations therefor" (Dutch Inventor) U.S. Fed News (250 Words)	02-Jul-2013
Patent Issued for Method of Preparing Mail Pieces Including Reply Items Journal of Engineering (1119 Words)	28-Nov-2012
US Patent Issued to Neopost Industrie on Nov. 20 for "Method of Preparing Mail Pieces Including Reply Items" (Dutch Inventor) U.S. Fed News (247 Words)	21-Nov-2012

Annual Profit and Loss

	31-Jan-2013	31-Jan-2012	31-Jan-2011
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.776349	0.721468	0.759051
Consolidated	No	No	No
Total income	70.4	82.5	77.7
Net sales	67.9	80.0	77.0
Change in stock	2.1	2.8	-0.4
Unfinished work in progress	-1.0	-0.7	-1.9
Subsidies for operating costs	0.0	0.0	0.0
Supplementary operating income	3.5	3.3	2.5
Other operating income	0.0	0.0	0.0
Other external charges	13.4	16.2	17.7
Cost of goods sold	10.9	13.8	14.7
Taxes and social security costs	1.7	1.9	1.5
Social charges	10.2	10.6	9.6
Total payroll costs	21.1	22.8	21.1
Cost of stock depreciation and amortisation	0.4	0.9	1.2
Fixed asset depreciation and amortisation	4.7	3.6	3.2
Other operating costs	0.3	0.3	0.3
Total operating costs	64.9	72.9	68.9
Net operating income	5.5	9.6	8.8
Total financial income	0.1	0.3	0.2
Interest payable on loans	0.3	0.4	0.3
Other expenses	0.0	0.0	0.1
Total expenses	0.3	0.4	0.4
Profit before tax	5.3	9.5	8.6
Extraordinary income	0.0	0.0	0.1
Extraordinary expenses	0.0	0.0	0.0
Extraordinary result	0.0	0.0	0.1
Total taxation	1.5	2.7	2.4
Profit distributed to employees	1.6	2.1	1.7
Net profit	2.1	4.7	4.6

Annual Balance Sheet

Financials in: USD (mil)

	31-Jan-2013	31-Jan-2012	31-Jan-2011
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.737182	0.762416	0.729395
Consolidated	No	No	No
Issued capital	29.8	28.9	30.2
Total reserves	2.5	2.2	2.0
Profits for the year	2.2	4.5	4.8
Profit brought forward from previous year(s)	0.1	0.1	0.2
Total stockholders equity	34.6	35.6	37.2
Provisions and allowances	2.7	1.4	1.4
Trade creditors	7.6	9.0	8.9
Bank loans and overdrafts	0.0	0.0	0.0
Current bank debts	0.0	0.0	0.0
Other loans	5.8	6.3	6.2
Other liabilities	0.0	2.0	0.2
Debts on fixed assets	0.4	0.9	1.2
Taxation and social security	11.0	10.6	10.2
Total current liabilities	20.2	24.8	21.5
Total debts	24.7	28.9	26.8
Total liabilities (including net worth)	62.1	65.9	65.4
Patents	1.2	1.2	0.4
Goodwill	0.0	0.0	0.0
Other intangibles	3.9	3.7	1.9
Land	0.1	0.1	0.1
Buildings	4.2	4.5	5.1
Other fixed assets	3.3	4.0	6.2
Other financial assets	0.0	0.0	0.0
Total non-current assets	12.7	13.5	13.9
Prepayments	0.1	0.1	0.1
Net stocks and work in progress	6.1	8.0	11.9
Trade debtors	8.4	3.0	8.8
Other receivables	34.6	41.1	30.5
Prepaid expenses	0.2	0.2	0.3
Cash and liquid assets	0.0	0.0	0.0
Total current assets	49.4	52.3	51.6
Total assets	62.1	65.9	65.4

Annual Ratios

Financials in: USD (mil)

	31-Jan-2013	31-Jan-2012	31-Jan-2011
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.737182	0.762416	0.729395
Consolidated	No	No	No
Current ratio	2.40	2.10	2.40
Quick ratio	2.10	1.80	1.80
Total liabilities to net worth	0.84%	0.94%	0.77%
Net worth to total assets	0.48%	0.47%	0.53%
Collection period	35.50	12.00	33.20
Stock turnover rate	11.80	9.50	6.70
Asset turnover	1.15%	1.15%	1.23%
Profit margin	0.08%	0.12%	0.11%
Return on assets	0.09%	0.14%	0.14%
Shareholders' return	0.19%	0.29%	0.26%
Sales per employee	886.43	970.27	971.18
Profit per employee	69.00	115.72	108.45
Average wage per employee	276.17	276.45	265.47
Net worth	34.6	35.6	37.2
Number of employees	390	390	395

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.92
UK Pound	1	Rs.99.60
Euro	1	Rs.83.64

INFORMATION DETAILS

Report Prepared by :

NIT

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)