Pitney Bowes 2006 Annual Report Download

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Annual Report 06
WHAT WILL WE PUT OUR STAMP ON

Table of contents

  • Page 1
    Annual Report 06 W H AT W I L L W E P U T O U R S TA M P O N

  • Page 2
    Every day, Pitney Bowes puts its stamp on something new Our services and solutions are helping our customers leverage the mailstream to succeed in today's fast changing business environment.

  • Page 3
    ...customer relationships, streamlining operations and growing profits. 2 Letter to Shareholders 8 Customer Stories 26 Business Overview 30 CFO Letter 31 Financials 33 Stock Performance Graph 34 Directors and Officers 35 Stockholder Information 36 International Locations We invite you to take a look.

  • Page 4
    ...the financial stability of the U.S. Postal Service, establishes the predictability of postal rates, gives the Postal Service far more pricing flexibility, and codifies the USPS' core mission of providing universal delivery of physical mail. The law also supports the use of innovative technologies to...

  • Page 5
    ... what is called shape-based rating or pricing in proportion. This means that postage rates will now be based on both the weight and shape of a piece of mail. A brokerage statement, for example, that is folded and inserted into a smaller envelope will cost less to mail than if the same piece were...

  • Page 6
    ... of total revenue as new business areas continue to grow. To help investors and other stakeholders better understand and track our new business model, we created seven new reporting segments in 2006: U.S. mailing, international mailing, production mail, software, management services, mail services...

  • Page 7
    ... and pmh, two companies we acquired in 2006, with Imagitas, a leader in life-event marketing we acquired in 2005. We are also partnering with Digital Cement, a leading innovator in relationship marketing. Pitney Bowes can now offer clients a powerful suite of solutions to maximize the revenue value...

  • Page 8
    ...again reducing waste. In addition, Pitney Bowes solutions that support remote transactions - such as the online purchase of postage, shipping solutions for items bought on eBay and our Relia-Vote mail We are a world leader in creating a 'culture of health' among our employees and their families. 6

  • Page 9
    ... on track to achieve the goal of reducing our corporate office space in Fairfield County, Connecticut, from 2.5 million square feet in 2003 to 1.6 million square feet by 2008. Our achievements in corporate responsibility placed us, for the eighth consecutive year, on the list of 100 Best Corporate...

  • Page 10
    ... secure communications platform encompassing physical and digital technologies-and creating new opportunities for our customers in the process. CIGNA, a leading provider of health care and other benefits, depends on Pitney Bowes solutions to produce more than 160 million pieces of mail every year...

  • Page 11
    ... services for the item being sold. The successful buyer, located anywhere in the world, can then securely pay for postage through PayPal. Postage and an automatically completed shipping label are printed with the push of a button from the seller's computer. The package can then be directly deposited...

  • Page 12
    Now keep tabs on your most precious cargo From documents to packages to people, our software helps you track them all. The Avon Central School District in upstate New York uses our LobbyTracâ„¢ software as part of its overall security system. All visitors must register through LobbyTrac, which ...

  • Page 13
    ... control, our software provides peace of mind. LobbyTrac is built on Arrival® technology, our versatile tracking and inbound delivery management system. Arrival makes it easy to track packages and other accountable items internally, from the moment they are scanned in by the mail center until they...

  • Page 14
    .... In remote villages across Bangladesh, economic development is taking root, one phone call at a time. Hundreds of thousands of rural women have been able to go into business for themselves by using small, unsecured loans from the Grameen Bank to buy cell phones, which they in turn allow fellow...

  • Page 15
    ...2006 for his pioneering work in microfinance. Grameenphone, the service provider and a sister concern of Grameen Bank, turned to Pitney Bowes Group 1 Software... AS of Norway and 38 percent by Grameen Telecom Corporation) can now even add marketing messages to its invoices, including ideas for how the...

  • Page 16
    ..., high-speed production of sensitive communications. With the growing popularity of voting by mail, election officials can sometimes find their offices overwhelmed. There's the manual processing of requests, the preparation of ballots and envelopes for mailing, and the verification and sorting...

  • Page 17
    ... level of security. The Pitney Bowes Relia-Voteâ„¢ mail balloting system uses file-based processing and our high-speed, high-integrity inserters and sorters to ensure that each ballot packet has the correct contents. It then sorts envelopes sent back by voters, archiving a digital image of each for...

  • Page 18
    ..., wanted to give its Velocity2 solution providers around the globe the freedom to create advertising and direct mail campaigns geared to local markets, while at the same time ensuring the integrity of EMC's corporate brand and messaging. Leveraging Pitney Bowes' Web-based portal, EMC created 16

  • Page 19
    ...which allows Velocity2 partners to create their own marketing materials online, in real time, in their local language, using EMC corporate-approved assets. Pitney Bowes provides an integrated, end-to-end selfservice campaign management system that includes list management, addressing, mailing, local...

  • Page 20
    ... Our international mail services allow U.S.-based organizations to customize their mailings country by country. From the Arctic Circle to Africa's Serengeti Plain, no corner of the earth is too remote for the International Fund for Animal Welfare. For nearly 40 years, IFAW has worked tirelessly to...

  • Page 21
    ... and advocacy efforts. The U.S.-based organization uses international direct-entry mailing solutions from Pitney Bowes to help it communicate effectively with current and potential donors in Africa, Australia and Europe. We consolidate fund-raising mailings in the U.S. and transport them to various...

  • Page 22
    ...your best work can shine at a better price Our management services help companies improve the quality and productivity of their on-site and off-site print operations. When it comes to vehicles, the people at Visteon Corporation know all about superior engineering and great design. Visteon supplies...

  • Page 23
    .... Visteon chose Pitney Bowes to apply its expertise in printer-fleet management to its global operations. We helped Visteon conserve resources and still meet its document needs by replacing 1,875 stand-alone printers, copiers, scanners and fax machines with 348 networked multifunction devices...

  • Page 24
    ...-data solutions provide detailed information about any address. When it comes to mapping applications, accuracy is everything. So Microsoft turned to Pitney Bowes to provide more precise location information for the next generation of its Web-based Live Local application, powered by Virtual...

  • Page 25
    ...-data solutions have broad application for anyone who needs to know more about a location than its address, whether it's an insurance agent trying to determine a home's proximity to a flood plain or an epidemiologist tracking the spread of a communicable disease. GeoStanâ„¢ program combines...

  • Page 26
    ... Our direct mail solutions help international companies find customers in any country. Across Italy and beyond, the Fratelli Carli company is famous for its fine olive oil, other gourmet items and natural cosmetics. Its products are not available in stores, and this nearly century-old family...

  • Page 27
    ... its direct mail pieces in-house. The complex mailings include price lists, catalogues and promotions, among other inserts. While speed is always important, Pitney Bowes technology also gives Fratelli Carli the flexibility to seamlessly make last-minute changes to offers, prices and document design...

  • Page 28
    ... midsize mailers, including addressing software, document and envelope printers, tabletop folding and inserting systems, and digital metering systems. We also offer shipping solutions for every need, multi-vendor services for many brands of office equipment, and payment solutions to help manage all...

  • Page 29
    ... automatically inserting credit cards and nontraditional items into mail pieces. Manage your multi-carrier shipping strategy and track incoming documents and packages on a single platform. MANAGE DISTRIBUTE Tap in remotely to value-added services like instant rate updates and USPS® confirmation...

  • Page 30
    ... databases. Cleanse address databases to exceptional levels of accuracy to maximize postal discounts and increase the deliverability of mail. Manage output to printers on multiple platforms as well as to the Web with software that brings the precision of manufacturing processes to the document...

  • Page 31
    ... Postage, the NBA and Zazzle with postage you design yourself. Reach customers and prospects when they move and during other times of change, when they are establishing new buying patterns and are ready to try new brands. Marketing Services Pitney Bowes is helping customers grow revenue and build...

  • Page 32
    ... delivered a total return to shareholders of over 12 percent in 2006, including about 9 percent of share price appreciation and the assumed reinvestment of dividends in Pitney Bowes stock. Since the end of 2000-when we launched our mailstream strategies- we have delivered a compound annual return to...

  • Page 33
    ... Cash dividends per share of common stock Average common and potential 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 2006 2005...

  • Page 34
    ... activities, as reported Capital expenditures Free cash flow Reserve account deposits Payments related to restructuring charges Discontinued operations Pension plan contribution Contributions to charitable foundations IRS/Capital Services tax payment IRS bond payment Free cash flow, as adjusted...

  • Page 35
    ...December 31, 2006 180 160 140 120 100 80 60 40 20 0 01 Pitney Bowes 02 S&P 500 Peer Group 03 04 05 06 Peer Group Pitney Bowes Inc. Automatic Data Processing, Inc. Diebold, Inc. RR Donnelley DST Systems, Inc. FedEx Corporation The Hewlett-Packard Company Ikon Office Solutions, Inc. Lexmark...

  • Page 36
    ... Vice President and Chief Human Resources Officer Joseph E. Wall Senior Vice President and Chief Technology Officer Kevin Weiss Executive Vice President and President, Mailstream, The Americas Stockholders may visit the Pitney Bowes corporate governance Web site at www.pb.com/corporategovernance...

  • Page 37
    ... 40.34 Trademarks Arrival, the Corporate logo, the Eagle design, Engineering the flow of communication, FastPac, IntelliLink, LobbyTrac, Purchase Power, Relia-Vote and Pitney Bowes are all trademarks owned by Pitney Bowes Inc. GeoStan is a trademark of Group 1 Software. USPS is a trademark owned by...

  • Page 38
    ... 190 Europe, Africa, Middle East (EAME) Pitney Bowes EAME Elizabeth Way, Harlow CM19 5BD, UK T: 44 8705 252525 F: 44 8705 449450 Latin America and Caribbean Pitney Bowes Inc. 1 Elmcroft Road MSC 0045.04 Stamford, CT 06926, USA T: 203 922 7388 F: 203 922 7394 Offices by Country Australia Pitney Bowes...

  • Page 39
    Design: Hill Holliday NY Photography: John Midgley Portrait and Product Photography: Brian Urso ©2007 Pitney Bowes Inc. All rights reserved. AD 11837 0307 The materials used in this publication are recyclable. The paper is certified by the Forest Stewardship Council (FSC), ...

  • Page 40
    Pitney Bowes Inc. World Headquarters 1 Elmcroft Road Stamford, CT 06926-0700 (203) 356-5000 www.pb.com