Lexmark 2014 Annual Report Download - page 3

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Paul Rooke
Chairman and CEO
To My Fellow Shareholders,
As I reect back on 2014, I am pleased with Lexmark’s performance this year and with our momentum as we
enter 2015.
Our higher value solutions portfolio revenue comprised of Managed Print Services (MPS) and Perceptive Soft-
ware delivered strong growth again in 2014. MPS has grown in each of the past 15 years, delivering double-
digit growth in 13 of those years. Together with the ongoing growth of Perceptive Software, our higher value
solutions revenue exceeded our $1 billion target in 2014 and in the fourth quarter comprised approximately one
third of our total revenue.
Throughout the year we continued to invest in and expand Lexmark’s industry-leading imaging technology while
also continuing to add software capabilities that strengthen and dierentiate Lexmark’s solutions value proposition.
Our solutions are industry specic, and connect our customers’ unstructured information with the processes,
applications and people that need it most to drive their business forward. Our expanding capabilities in areas
such as healthcare and nancial process automation will enable us to further strengthen existing relationships
and win new customers in 2015 and beyond.
Expansion, Customer Success and Industry Recognition
Lexmark’s combination of technology ownership, deep industry expertise and customer intimacy, all focused
on the unstructured information challenge, is unique in the industry. Our approach permeates all areas of
Lexmark as we bring solutions to market that enhance customers’ productivity while concurrently delivering
cost savings.
Last year, we expanded our solutions portfolio with the acquisition of Sweden-based ReadSoft, a leading
provider of nancial process automation software. ReadSoft capabilities include deep integration expertise for
SAP and Oracle ERPs and the company brings to us a strong European presence for our growing international
software business.
We also acquired two other software companies, Claron Technology and GNAX, which further expand our health-
care expertise in this dynamic and growing market. These acquisitions will enable Perceptive Software to oer
unique solutions that will help healthcare enterprises meet the challenge of managing the rapidly growing amount
of unstructured medical content being created and digitized. The result of our expanded healthcare solutions of-
fering will be improved access to this content for physicians and providers and ultimately better patient care.
Our strategy is working. In our high value segments of MPS and Perceptive Software, we continue to advance
our solution capabilities and expand our customer base. For our MPS oering alone, within the past 24 months,
Lexmark competed for and won 23 new MPS contracts with companies listed on either the Global 500 or
Fortune 500, which represent incremental business to the company. In addition, as we continue to deliver
savings and value to our customers, our renewal rates in 2014 were 95 percent and 96 percent for MPS and
Perceptive Software customers, respectively.