Pitney Bowes 2005 Annual Report Download

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Annual Report 05
mailstream?
Can you see the

Table of contents

  • Page 1
    Annual Report 05 Can you see the mailstream ?

  • Page 2
    ... it easier and faster than ever before to create, track and manage this communication flow? Contents 2 7 Chairman's Letter Customer Stories Can you see the mailstream? 24 Opportunities 31 CFO Letter 32 Financials 34 Directors and Corporate Officers 35 Stockholder Information 36 International...

  • Page 3
    ... complex flow of mail, documents and packages, Pitney Bowes is helping businesses of all sizes to increase customer acquisition, build customer loyalty and reduce costs. With our advanced technology and comprehensive suite of services, Pitney Bowes is turning the mailstream into a profit engine for...

  • Page 4
    ...: > Software revenue grew to 5 percent of total revenue, compared to 1 percent five years ago. > Our Mail Services businesses, including the PSI Group, IMEX and Imagitas, our newly acquired marketing services company, all delivered double-digit revenue growth. > Pitney Bowes Management Services...

  • Page 5
    ... developed new services tailored to industries with unique mail and document needs. A good example is the Legal Solutions group we launched in 2005 with our acquisition of Compulit, one of the premier providers of litigation support services to top U.S. law firms and many Fortune 100 companies. The...

  • Page 6
    ... buy postage and ship packages through the USPS without going to the post office. ® systematically with their customers and other stakeholders - and that the mailstream is an essential part of a multichannel marketing mix that drives world-class customer communication management. We acquired Group...

  • Page 7
    ... are transforming the meter into a networked information management system. For example, we added an innovation to our IntelliLink® technology in 2005 that allows users to obtain . Business electronic signatures on Certified Mail™ Manager, our most advanced accounting software, allows large...

  • Page 8
    ... executives in Fortune 500 companies, recognized us with its Corporate Award for our leadership in corporate diversity. I consider my own work in the National Urban League to be a personal privilege that helps give visibility to our diversity efforts. Comments on Our Strategy and the Stock Price We...

  • Page 9
    The mailstream is immense, diverse and rapidly changing. 7 On the following pages, see how Pitney Bowes is helping customers optimize the mailstream. The Canine Fence Company T-Mobile Thomas Cook Ohio Court System Kenko Kazoku State of Florida George Washington University La Poste

  • Page 10
    Can you see how the can bring out weather new customers? Can you see the mailstream? 8

  • Page 11
    ... Hill build The Canine Fence Company into a $23 million business and the largest retailer of Invisible Fence® pet containment systems in the world - from a modest start in their basement 23 years ago. The company's fastest growth has coincided with its increased use of direct mail. Pitney Bowes...

  • Page 12
    ... it right, T-Mobile relies on GeoTAX® software from Pitney Bowes' Group 1 Software. The GeoTAX database continually tracks and updates taxation boundaries across the U.S. and assigns tax jurisdictions and tax rates based on the latitude and longitude of individual addresses, achieving as high as 99...

  • Page 13
    Can you see how an address can tell you more than where to send the bill? Can you see the mailstream? 11

  • Page 14

  • Page 15
    ... a new back-end system. The DOC1® Suite, from our Group 1 Software business, processes customer data from multiple sources and makes it almost instantly available for printing or electronic access across multiple sales channels, including 600 offices, call centers and Web sites. DOC1 software also...

  • Page 16
    ... process starts to slow down and costs begin to rise. Somebody has to file all those little green cards. Or do they? With our new e-Return Receipt solution, Ohio courts now simply retrieve an electronic image of the signed paper receipt from "My Account" on the Pitney Bowes Web site. No more filing...

  • Page 17
    Can you see how an can bring order to the court? electronic signature mailstream? Can you see the 15

  • Page 18
    ... on the farms of southern Japan. Although Kenko Kazoku uses other forms of advertising, the company says only mail gives it the opportunity to allow the customer to use the products and begin to appreciate their value. A fleet of advanced inserters from Pitney Bowes has helped Kenko Kazoku extend...

  • Page 19

  • Page 20
    ...to more and more people. Mail is a critical but not a core government function. To allow state agencies to focus on the delivery of essential public services, the State of Florida engaged Pitney Bowes to develop a more efficient mailstream strategy. As a result, Pitney Bowes today manages day-to-day...

  • Page 21
    Can you see how making more services efficient can feel like a day at the beach? Can you see the mailstream? 19

  • Page 22
    Can you see how a barcode can help higher learning ? Can you see the mailstream? 20

  • Page 23
    ... 10,000 to 20,000 packages for students arrive on campus each month. The university turned to Pitney Bowes - its partner for the university's other mail operations - to develop a more efficient, reliable package service. Under the old system, drivers went directly to the students' residence halls...

  • Page 24
    ... used to meter business mail. The DM1000â„¢ mailing system was chosen for its inkjet technology, silence, speed and ease of use. PrestaPost software from Pitney Bowes allows La Poste to centrally monitor usage, postage costs and other data so it can redeploy mailing system resources based on...

  • Page 25
    Can you see how postal services can make small business look magnifique? Can you see the mailstream? T llo UR Ga rise se-Le ANCO p e tr on ILL En lph EB tre ai A OGN Vo u ,Q UL 000 0 BO 0 921 23

  • Page 26
    Can you see the opportunities for growth ? transactions 24 marketing The mailstream is driving changes in the world economy, allowing companies to connect better with their customers, making remote commerce possible, and driving the

  • Page 27
    remote commerce 25 operations improved business performance needed to compete in today's world. At Pitney Bowes, we are helping companies harness the full power of the mailstream. See how on the following pages.

  • Page 28
    ... in ways never before possible. We are helping customers create highimpact marketing communications and transform monthly bills and statements into cross-sell and up-sell opportunities. Enhance customer communications and increase response rates with our end-to-end direct mail services and...

  • Page 29
    ... lowest possible cost. Produce a wide range of mailings - from statements to customized direct mail pieces - with increased reliability and tracking and reporting capabilities. Maximize your production mail inserting system with high-speed digital metering and the ability to process mixed-weight...

  • Page 30
    ... they lie in a flood plain or special tax district. Gain control of internal express shipments by tracking them from arrival in your mail center to final delivery. Rely on our litigation support team to provide project management, duplicating, scanning, coding, electronic discovery and Web hosting.

  • Page 31
    ...frames. Bring the post office to your corporate facility or campus with self-service package and mail-processing kiosks. Manage all the postal needs of your small business right from your desktop - print postage labels, request package pickup, order electronic delivery confirmation, produce custom...

  • Page 32
    Can you see Pitney Bowes ? We are the global leader in mailstream solutions. Our capabilities span the entire mailstream. 30 Data Analytics Innovative Technology Operational Excellence We're helping our ...

  • Page 33
    ...and other stock programs, producing a 1.6 percent decline in shares outstanding from the prior year-end. Over the past five years, we have reduced shares outstanding by 8.9 percent. We paid $284 million of dividends to our stockholders in 2005, and in early 2006, our Board of Directors authorized an...

  • Page 34
    ... expenditures Cash dividends per share of common stock Average common shares outstanding Total assets Total debt Stockholders' equity Total employees As adjusted* EBIT Income from continuing operations Diluted earnings per share from continuing operations Free cash flow EBIT to interest 2005 2004...

  • Page 35
    ... adjusted GAAP net cash provided by operating activities, as reported Capital expenditures Free cash flow Pension plan investment Contributions to charitable foundations Payments related to restructuring charges IRS bond payment Free cash flow, as adjusted 2005 2004 2003 $867,124 10,000 - 53,650...

  • Page 36
    ... President, Mailstream, The Americas 34 Stockholders may visit the Pitney Bowes corporate governance Web site at www.pb.com/corporategovernance for information concerning the company's governance practices, including the Governance Principles of the Board of Directors, charters of the committees...

  • Page 37
    ... is listed 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 6315 Director, Marketing Communications Pitney Bowes Inc. 1 Elmcroft Road, Stamford, CT 06926...

  • Page 38
    ... East (EAME) Pitney Bowes EAME Elizabeth Way Harlow CM19 5BD UK T: 44 8705 252 525 F: 44 8705 449 450 Latin America and Caribbean Pitney Bowes Inc. 1 Elmcroft Road MSC 5425 Stamford, CT 06926, USA T: 203 922 7388 F: 203 922 7394 Offices by Country Australia Pitney Bowes Australia Pty. 95 St Hilliers...

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    Design: Hill Holliday NY Photography: John Midgley Portrait: Brian Smalle, Product Photography: Brian Urso ©2006 Pitney Bowes Inc. All rights reserved.

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