Pitney Bowes 2003 Annual Report Download

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Annual Report 03
ENGINEERING
THE FLOW OF
COMMUNICATIONTM
IT’S WHAT WE DO.

Table of contents

  • Page 1
    Annual Report 03 ENGINEERING THE FLOW OF COMMUNICATION TM IT'S WHAT WE DO.

  • Page 2
    CONTENTS 4 8 CHAIRMAN'S LETTER CUSTOMER STORIES 22 THE DETAILS 27 FINANCIAL HIGHLIGHTS FROM OUR CFO 28 SUMMARY OF SELECTED FINANCIAL DATA 30 DIRECTORS AND CORPORATE OFFICERS 31 STOCKHOLDER INFORMATION 32 MAJOR INTERNATIONAL LOCATIONS

  • Page 3
    I deliver Internet mail services so you can do more. I write software to integrate your customer records. ENGINEERING THE FLOW OF COMMUNICATION TM I improve your workflow to save you money. IT'S WHAT WE DO. I transform your statements into marketing tools. I optimize your shipping. I secure ...

  • Page 4
    ... > > 2 > > > > These are central to your business. Your revenues. >> paper or electronically, or both, they have a huge > > snag,.... Your payments. Your promotions. > > Your relationships. Whether they travel by >>>>> > >> >> impact on your business. But when...

  • Page 5
    >> > >> Pitney Bowes is changing all that. We apply intelligent technology and process improvements >> > >>> > > >> > powerful tools for advancing business. > > This is what we mean by our brand promise: Engineering the flow of communication. TM > >>> >> >> >> > > > > > >...

  • Page 6
    ... LETTER Pitney Bowes is a stronger, more focused company today than it was a year ago at this time. Thanks to an exciting portfolio of integrated mail and document solutions, our brand promise of "Engineering the flow of communicationâ„¢" is taking hold in the marketplace. More and more, businesses...

  • Page 7
    ... of 2003. Among our strong portfolio of integrated mail and document solutions, our APSâ„¢ Series Advanced Productivity System merits special mention. This high-speed intelligent inserter processes up to 22,000 mail pieces an hour and can be integrated with the DFWorksâ„¢ suite for online management...

  • Page 8
    ... company to be validated by Siebel Systems, Inc., a leading provider of business applications software and a strategic partner of Pitney Bowes, to link its Siebel 7 Call Center and Siebel 7 Marketing with mailing operations. We are using this technology in our own call centers and service management...

  • Page 9
    ... Annual Report. But I want to thank all Pitney Bowes employees for their good work. We are confident that the rewards of our work in 2003 will be sustainable, long-term growth and enhanced shareholder and customer value. Our priorities in 2004 are to continue our transformation programs and execute...

  • Page 10
    Turning business communication into dynamic conversation. This is what excites us most. In the next pages, we'll tell you about some of the benefits we're delivering to clients. Practical solutions born out of our spirit of innovation, which has generated more than 3,500 patented breakthroughs in ...

  • Page 11
    ONLINE MAIL CENTERS TO SPEED E-COMMERCE. PRESORT SERVICES TO REDUCE COSTS. MAIL TRACKING THAT IMPROVES CUSTOMER RELATIONSHIPS. NETWORKED SERVICES THAT INCREASE PRODUCTIVITY. SMART STATEMENTS THAT DRIVE ADDITIONAL REVENUE. 9 BUSINESS RECOVERY TO MEET CUSTOMER COMMITMENTS.

  • Page 12
    CLICK IT AND SHIP IT. NOW, THERE'S NOTHING VIRTUAL ABOUT THAT. SPEED E-COMMERCE WITH THE FIRST BROWSER-BASED INTERNET POSTAGE TECHNOLOGY.

  • Page 13
    ... for postage, print labels and track packages from their desktops. And, with free Carrier Pickup from the U.S. Postal Service, they can send packages on their way without stepping outside. 11 > The Pitney Bowes Team for eBay (from left to right) Rudy Chang, Erik Monsen, Kostas Vassilaskis, John...

  • Page 14
    A FEW PENNIES SAVED X HUGE MAILINGS = KA-CHING! SLASH COSTS AND SPEED DELIVERY WITH ADVANCED PRESORTING OF FIRST- AND STANDARD-CLASS MAIL.

  • Page 15
    ... Services Representative, PSI Group NOW, FIND OUT HOW Pitney Bowes' PSI Group has invested millions in Multi-Line Optical Character Recognition that reads thousands of addresses an hour. Our scanners check each address - embedded into an 11-digit delivery point barcode - against the U.S. Postal...

  • Page 16
    DON'T CALL. THE CHECK'S IN THE MAIL. REALLY. INTELLIGENT MAILING SYSTEMS LET YOU KNOW WHEN TO CALL - AND WHEN NOT TO.

  • Page 17
    ... StreamWeaver® software, which generates the tracking barcodes used by the U.S. Postal Service. The mail is then produced and monitored with our state-of-the-art APS™ Series Advanced Productivity System, which processes 22,000 pieces an hour. Our Web-based portal solution, DFWorks™, captures...

  • Page 18
    ON-DEMAND SERVICES THAT SAVE YOU TIME. BIG TIME. CONNECT YOUR MAIL SYSTEMS TO REAL-TIME INFORMATION. TRACK AND MANAGE COSTS, GET MAIL SERVICES AND RECEIVE AUTOMATIC SOFTWARE UPDATES.

  • Page 19
    ... of the process - updating postal accounts - took several hours to complete. Now with Pitney Bowes' help, the entire mailing can be done in a fraction of the time. 17 Elvis Fair > Senior Sales Consultant on the RIBA account NOW, FIND OUT HOW A Pitney Bowes DM Seriesâ„¢ Digital Mailing System with...

  • Page 20
    TURN YOUR BILL INTO A BEST SELLER. DRIVE ADDITIONAL REVENUE WITH A MESSAGE INDIVIDUALIZED FOR EACH CUSTOMER.

  • Page 21
    ... Post uses three high-volume inserters from Pitney Bowes - an 8 Series™, a 9 Series™ and a FlowMaster® FX10 Series. Simultaneously, StreamWeaver® software can send statement data to a D3® Digital Document Delivery server for electronic presentment to customers and the processing of payments.

  • Page 22
    THESE DAYS THERE IS NO SUCH THING AS TOO MANY REDUNDANCIES. THESE DAYS THERE IS NO SUCH THING AS TOO MANY REDUNDANCIES. PREPARE FOR DISASTERS OR PEAK PRODUCTION PERIODS WITH BACKUP PRINT AND DOCUMENT MANAGEMENT SERVICES.

  • Page 23
    ... largest financial services companies rely on Pitney Bowes to produce and mail account statements, trade confirmations, checks and other mission critical documents in the event they cannot do so. 21 > Business Recovery Services Team (clockwise from top) Francisco Cerro Natalia Loaiza Troy Robinson...

  • Page 24
    Now, let's sweat the details. You've seen a handful of our solutions. Now, find out more about what goes into them. In the next few pages, you'll see some of the software, services, systems and R&D that help us deliver cost savings and profit opportunities for our customers. 22

  • Page 25
    ... payments and other business processes. Obtain mail services online Update postal rates, confirm delivery of mail and access other services on the Internet with IntelliLinkâ„¢ technology for our DM Seriesâ„¢ Digital Mailing Systems. 23 Monitor mailing costs Track postage spending by department...

  • Page 26
    ... a wide range of value-added services to more than 1 million registered users of My Account on pb.com, including our Postage By Phone® service and the Purchase Power® and Postal Privilege® lines of credit. We also offer a variety of flexible financing options to acquire Pitney Bowes solutions.

  • Page 27
    ...made for small business, Pitney Bowes' low-volume mailing systems provide unmatched convenience and the opportunity to save money by applying just the right amount of postage every time. 25 Connect with your customers even before they open the envelope Our addressing systems can print personalized...

  • Page 28
    ... company. We go right to the source to identify customer needs Our Innovation Pipeline puts customers front and center when developing ideas for new products and 26 services. Our process often begins at a customer site, where our researchers acquire in-depth insight into real-world communications...

  • Page 29
    .... We remain steadfastly committed to delivering shareholder value and are confident that we have the business model, growth strategies and financial flexibility to make Pitney Bowes a compelling investment for the foreseeable future. Bruce Nolop Executive Vice President and Chief Financial Officer

  • Page 30
    ... As reported 2003 2002 2001 Revenue Income from continuing operations Diluted earnings per share from continuing operations Cash provided by operating activities Depreciation and amortization Capital expenditures Cash dividends per share of common stock Average common shares outstanding Total...

  • Page 31
    ... and cash used for restructuring charges. Each of these items use cash that is not otherwise available to the company and are important expenditures. Management compensates for these limitations by using a combination of GAAP cash flow and free cash flow in doing its planning. The adjusted financial...

  • Page 32
    ... Fred M. Purdue Vice President and General Manager, Business Processes Johnna G. Torsone Senior Vice President and Chief Human Resources Officer Joseph E. Wall Senior Vice President and Chief Technology Officer 30 Stockholders may visit the Pitney Bowes corporate governance website at www.pb.com...

  • Page 33
    ... it is listed on 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: MSC 6309 Director, Marketing Services Pitney Bowes Inc. 1 Elmcroft Road Stamford, CT 06926...

  • Page 34
    ... Street London, SE1 9RS, UK T: 44 20 7415 3000 F: 44 20 7415 3001 Latin America and Caribbean Pitney Bowes Latin America 2424 North Federal Highway Suite No. 360 Boca Raton, FL 33431, USA T: (561) 347 2040 F: (352) 347 2041 OFFICES BY COUNTRY Australia Pitney Bowes Australia Pty. 95 St Hilliers Road...

  • Page 35
    Design: Hill Holliday NY Major Photography: Ashton Worthington © 2004 Pitney Bowes Inc. All rights reserved.

  • Page 36
    Pitney Bowes Inc. World Headquarters 1 Elmcroft Road Stamford, CT 06926-0700 (203) 356-5000 www.pb.com