Pitney Bowes 2004 Annual Report Download - page 5

more than 10 billion mail pieces per year. In 2004,
we further expanded our Mail Services business by
acquiring capabilities to process mail for international
delivery. To support our customers’ needs, we will
continue to enhance our capabilities in these areas.
>International Mailstream Solutions had 8 percent
organic revenue growth and double-digit earnings
growth. We will continue to grow internationally by
extending the global penetration of our products and
services, gaining more control over our distribution
channels and increasing our base of small business
customers.
>Payment Solutions—through which we finance a
broad range of our customers’ mail and document
management needs—delivered revenue growth of
more than 8 percent and double-digit earnings
growth. More than half of our customers now use
Pitney Bowes financing solutions. In 2005, we intend
to increase our market penetration by leveraging the
direct sales channel to sell an even wider range of
financial solutions.
>Our acquisition of Group 1 Software provides us with
a growth platform in mailing software applications.
Group 1 complements our other product offerings and
allows us to increase our penetration of an expanded
customer base.
>Supplies revenue grew by 11 percent in 2004, a
result driven by the growth of our Small Business
Solutions business as well as customer migration to
our digital mailing systems with value-added services.
FORWARD MOMENTUM
In 2004 we took steps to strengthen our capabilities in
a number of areas that will help us to accelerate
growth in 2005 and beyond.
One area is mail creation, which involves the
preparation of essential business communications—
bills, statements, direct marketing material,
paychecks, and the like. In 2004, we launched a new
family of folder-inserter systems that combine
advanced software and leading-edge paper handling
technology for maximum efficiency and economy.
This line of products will be expanded in 2005 and
we expect double-digit growth in the mail creation
business over the next two years.
The Group 1 acquisition positions Pitney Bowes as a
leader in Customer Communication Management. We
help businesses link their customer communications
with other business processes—from billing and
collections to marketing—to strengthen customer
relationships and create opportunities for cross-
selling. The key here is accurate data, personalized
communication and multichannel delivery—all core
capabilities of Group 1.
Group 1 also helps us move into
adjacent market spaces. For exam-
ple, Group 1 has forged a technology
alliance with Microsoft to add global
data-cleansing capabilities to
3
WE ARE IN THE ENVIABLE POSITION
OF HAVING SIX DIVERSIFIED
AREAS OF GROWTH