Lexmark 2008 Annual Report Download - page 4

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that will even better position us to meet the needs of the small and medium business customer. In January 2009,
our Consumer Printer Division was renamed the Imaging Solutions Division to better reflect this repositioning of our
focus to home office, small office and business users.
Advancing the Laser Business
Over the last several years we’ve been increasing our R&D investment in laser printer technology focused on advancing
our color laser and laser MFP product lines. In October 2008, in one of our largest product introductions in history, we
introduced 38 new laser models specifically designed to meet the needs of users in heavy page-generating areas of
large enterprises and small to medium businesses. This award winning line of products spans the segments of mono
laser printers, color laser printers and laser MFP devices. In 2008, our laser products received more awards in the U.S.
than any of our competitors. Also during the year we continued to grow our managed print services business, helping
our enterprise customers to greatly improve their visibility into their distributed print environment, to significantly reduce
their number of print devices and pages generated, and to dramatically reduce their costs and environmental footprint
due to printing.
Returning Capital to Shareholders
During 2008, Lexmark returned over $550 million to shareholders through share buyback programs. Over the last five
years, Lexmark has returned almost $3 billion to shareholders through share repurchases.
Our Financial Position is Strong
Although we expect to see on-going impacts through 2009 from the global economic issues and the on-going transition
of our inkjet business, Lexmark overall has a very strong financial position. We have a conservative capital structure. We
ended 2008 with nearly $1 billion in cash and current marketable securities. We have a business model that continued
to drive good cash generation, marking the seventh consecutive year that we have generated over $450 million in net
cash from operating activities. We are taking action to lower our cost and expense structure, and we are investing in core
technologies and sales coverage that will help to ensure our long term success.
Our People Make the Difference
We believe our greatest strength is our people. At Lexmark, our employees make the difference. It’s their commitment
to our vision of creating customers for life that enables us to continue to win and renew our business with some of the
largest enterprises in the world. Their continued dedication to our customers will enable us to work through our current
challenges to emerge as a stronger company.
In closing, I want to thank our customers, employees, business partners and investors for your continued support.
Sincerely,
Paul J. Curlander
Chairman and Chief Executive Officer
Lexmark International, Inc.