Lexmark 2014 Annual Report Download - page 4

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While we are focused on our capabilities and winning and retaining customers, Lexmark’s development of
world-class imaging solutions also continued to impress the industry’s most inuential and well-known market
analyst rms. In 2014, Lexmark was named an MPS leader for the fourth consecutive year by one rm, and for
the third consecutive year by two others.
Perceptive Software also was favorably positioned in key evaluations for the year, repeating a 2013 accolade for
leadership in enterprise content management. Perceptive Software’s enterprise search solution also received lead-
ership positioning in 2014, and its enterprise video content management capabilities received high marks as well.
Financial Results Reect Solid Execution, Focus on Delivering Shareholder Value
Lexmark’s nancial results were highlighted by strong higher value solutions revenue growth, non-GAAP EPS
of $4.04 and free cash ow representing more than 100 percent of our non-GAAP net income.
Approximately 70 percent of Lexmark’s revenue comes from the company’s more predictable imaging and
software annuity streams. These annuity streams and exceptional working capital performance enabled us
to deliver free cash ow of $282 million, which exceeded our expectation for the year. We remain condent
in Lexmark’s ability to generate positive free cash ow as we have in each of the past 13 years.
This free cash ow fuels our transformation and enables the ongoing return of capital to our shareholders.
Since 2011, Lexmark has generated $1.1 billion of free cash ow and has returned 78 percent of this to share-
holders through dividend payments and share repurchases.
Our People Make the Dierence
We remain focused and committed to our vision of Customers for Life. Our value proposition is steeped in this
vision and our ability to listen to our customers, anticipate their needs and develop unique solutions to support
their evolving business. Customers for Life is at the heart of everything we do. It drives all of us, and is what
makes Lexmark a better partner for our customers than any of our competitors.
To our shareholders, our customers, our business partners and our employees, thank you for your continued support.
Sincerely,
Paul Rooke
Chairman and CEO
Lexmark International, Inc