Pitney Bowes 2002 Annual Report Download

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Annual Report 02
Engineering the flow of
communication™∏ ∏ ∏

Table of contents

  • Page 1
    Annual Report 02 Engineering the flow of communication™ ∏ ∏ ∏

  • Page 2
    ... Engineering the Flow of Communication 2 Letter to Shareholders 6 Case Studies 19 So What's It All Mean? 20 Questions and Answers 26 Financial Highlights From Our CFO 27 Summary of Selected Financial Data 30 Stockholder Information 31 Directors and Corporate Officers 32 Major International Locations

  • Page 3
    ... in cost savings and revenue enhancement that go right to the bottom line. Pitney Bowes is uniquely positioned to take such a complete look at managing business-critical communication. That's because of our decades of experience managing mail and documents for businesses and postal systems all over...

  • Page 4
    ... two inserting solutions that give mailers access to valuable new services and help them increase productivity and profitability within their business. The revolutionary DM Seriesâ„¢ digital mailing solutions, our flagship Advanced Productivity System (APS Seriesâ„¢) and our new FlowMasterâ„¢ system...

  • Page 5
    ... customer feedback. We acquired direct operations in Denmark, the Netherlands and South Korea, and expanded our presence in Italy, France, Sweden, Finland and China. We also entered into an outsourcing partnership with the Royal Mail in the U.K. We will focus on cross-selling additional solutions to...

  • Page 6
    ... from Pitney Bowes after 32 years. Through his years of service, John skillfully led many operations including our U.S. mailing business. Sara Moss, who left us in February, has served as our Senior Vice President and General Counsel for the last six years and has been a key architect in helping...

  • Page 7
    ...Bowes we will succeed. On the following pages are illustrations of how we are engineering the flow of communication for our customers and participating in the development of their success. shareholder return of 15% over the next four years." Michael J. Critelli Chairman and Chief Executive Officer...

  • Page 8
    ...T S The flow of bills and statements k ∏ ∏ ∏ Targeted communication makes for better customer relationships. It doesn't take a rocket scientist to figure that out. Instead of multiple bills from the same company stuffed with irrelevant promotions, customers get a single consolidated account...

  • Page 9
    ... - more than 80 million multi-page documents a year. The system measures performance and identifies areas where time is lost. This enables Merrill Lynch to save over $1 million annually thanks to new efficiencies, plus an additional $2 million not needed for added equipment and personnel. Statement...

  • Page 10
    ...on the web, we can provide processes and technologies to get all your systems working together with greatest efficiency. We bring billing, warehouse, and call center folks together on the same page for the fast, accurate response customers like. 8> k k DISPERSED ORDERS k The flow of shipping and...

  • Page 11
    .... In a new application of our StreamWeaverâ„¢ software, we enabled Be Music to intercept, manipulate and re-sequence orders with maximum automation and efficiency. Costs were cut by two-thirds and manual fulfillment to less than 2%, manual errors were eliminated, and all orders now ship the day they...

  • Page 12
    ...The flow of smarter mail We bring digital smarts to your company's mail. Now, isn't that intelligent? Our industry-leading IntelliLinkâ„¢ technology puts a virtual post office in your mailroom. Download rate changes, replenish postage, know exactly where each piece of outgoing and incoming mail is...

  • Page 13
    ... the answer. Networked to Pitney Bowes and the Post Office, IntelliLink technology replenishes postage instantly, replacing a tedious manual process. It calculates correct postage on every package. And it gives Quebecor the tools and tracking information it needs to manage its costs and boost...

  • Page 14
    ... find the business records you want when you want, on paper or on screen. We can bring together communication streams based on disparate legacy systems, effectively using print and digital technologies to lower costs, improve productivity, and give companies and their customers the support they need...

  • Page 15
    ... on its core business. Our UK operation now stores and processes over 96,000 boxes of BP's paper records and over 46 million digital images, as well as design, print and mail up to 600,000 BP statements a month. Ross Dorras of BP says, "The Pitney Bowes records management solution has dramatically...

  • Page 16
    ... neat, huh? The best investment in technology is often no investment at all. That's why our financing options include flexible payment programs. Customers can make an asset-free investment in their mail and document management systems. And when technology advances, they can upgrade without major...

  • Page 17
    ... costs for postage and equipment payments were $35-$72 per check. Pitney Bowes offered Cox a total solution - the right mix of mailing equipment and services, flexible leasing and pricing. "By leveraging the entire corporation, we immediately picked up discounts that most of our locations were...

  • Page 18
    ... mail? Yep. We offer national posts the digital technologies and networks that can help them speed up delivery, reduce costs, and stay competitive in their markets by offering unique capabilities. These include tracking mail every step of the way and digitally linking post offices to any business...

  • Page 19
    ... with 71,000 offices and over 500,000 employees. In 2002, business mail was up 30% and annual volume is now expected to be 13 to14 billion mail pieces. Pitney Bowes provides China Post with mail creation and finishing solutions, plus a new mail system with postage resetting via the Web to facilitate...

  • Page 20
    18 >

  • Page 21
    ...technologies, and financing that help business-critical communication flow more efficiently within the organization and work more effectively outside it. Linking paper to digital formats, mail and transactional documents to customer response and relationships, our solutions continue to impact higher...

  • Page 22
    ... Communication between a company and its customers, from prospecting to statements to call center enhancement. ∏ Strategic Outsourcing Critical support functions like mail, print, courier services, security and business recovery- all with the latest technology and processes run by Pitney Bowes...

  • Page 23
    ... - and improve cash flow? A: Use Pitney Bowes' digital document delivery billing and statement solution, tailored to today's computerenabled consumers. It leverages your existing applications by presenting messages via the channels your customers prefer - web site, email or fax. The system is...

  • Page 24
    ... of special Pitney Bowes and USPS services - at the touch of a button. Our unique IntelliLinkâ„¢ technology can automatically update USPS and carrier rates, download software updates and accounting tools, give you access to My Account on pb.com and provide you with electronic certified mail tracking...

  • Page 25
    ... document management services available. A: With the software intelligence and application flexibility of our high-speed inserter systems, you can react quickly and cost-effectively to the changing business needs centered around transactional mail. You can monitor production and productivity online...

  • Page 26
    ... of support functions. Document management experts repeatedly affirm the wisdom of concentrating on your company's core business activities while outsourcing as many support functions as possible. Through dedicated turnkey services, Pitney Bowes strategic outsourcing can help you achieve new levels...

  • Page 27
    ... it? A: Pitney Bowes offers many solutions for smaller offices, including entry-level meters, letter folders, envelope moisteners and address printers. All these help smaller businesses manage their mail right from their desks at any time of day, and send professional looking mail. In addition, our...

  • Page 28
    ... special items, free cash flow was about 1 19% of net income during 2002. This helped give us the wherewithal to pay $282 million of dividends, repurchase $300 million of stock, and make $127 million of accretive acquisitions. We also made year-end contributions of $339 million to our pension funds...

  • Page 29
    ... service requirements and capital expenditures and thus do not reflect funds available for reinvestment, dividends or other discretionary uses. In addition, free cash flow and EBIT as presented in this summary schedule may not be comparable to similarly titled measures reported by other companies...

  • Page 30
    ..., we have continued to add to our customer and revenue base. $5,000 7% 6% $4,122 $4,410 $4,000 $3,881 $3,000 $2,000 $1,000 Business & Support Services Sales Rentals & Financing '00 '01 '02 ∏ Earnings Per Share* (in dollars) We strive to deliver predictable and consistent growth in our...

  • Page 31
    ... in our business. $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 Deferred Taxes Discretionary Depreciation & Amortization $682 Dividends Net Income Working Capital Finance Receivables Rental Assets Other CAPEX Sources *Excludes special items Uses Free Cash Flow ∏ Dividend...

  • Page 32
    ...is the New York Stock Exchange. The stock is also traded on the Chicago, Philadelphia, Boston, Pacific and Cincinnati stock exchanges. Comments concerning the Annual Report should be sent to: High Low MSC 6309 Director, Integrated Marketing Pitney Bowes Inc. 1 Elmcroft Rd. Stamford, CT 06926-0700...

  • Page 33
    ... and Ethics. Stockholders who wish to obtain copies of these documents may do so by writing to the corporate secretary at our headquarters address. Fred M. Purdue Vice President and General Manager, Business Processes Johnna G. Torsone Senior Vice President and Chief Human Resources Officer Joseph...

  • Page 34
    ... 453 041 1 England Pitney Bowes Latin America 2424 North Federal Highway Suite No. 360 Boca Raton, FL 33431, USA T: (561) 347 2040 F: (561) 347 2041 Mexico Pitney Bowes Deutschland GmbH Tiergartenstraße 7 64646 Heppenheim, Germany T: (49) 6252 70800 F: (49) 6252 73354 Hong Kong Pitney Bowes DMT...

  • Page 35
    > Created by: Frankfurt Balkind NY Photography: Michael Prince Chairman's Portrait: Mark Jenkinson © 2003 Pitney Bowes Inc. All rights reserved.

  • Page 36
    Pitney Bowes Inc. 1 Elmcroft Road Stamford, CT 06926-0700 www.pb.com