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1Pitney Bowes Annual Report 2013
Fellow shareholders:
We made a good start in 2013. We outlined a strategy to unlock the inherent value of Pitney Bowes for our clients,
shareholders, and employees worldwide. That strategy entails focusing on execution in three areas: stabilizing our
mail business, driving operational excellence, and accelerating our growth.
We have made progress on all three fronts — progress that at this early stage exceeds expectations. Our people
have pulled together, across every corner of our business, in every region of the world, making tough decisions,
improving how we do business, and innovating based on our obvious strengths: from our best-in-class technologies,
to our global client base, to our market-leading position in the modern mailing industry we helped to invent.
While you can measure our progress in many ways, the most obvious is our fi nancial performance — including
a higher stock price and a stronger balance sheet, which are refl ections of what we’ve accomplished. In our effort
to stabilize the mailing business, we increased the rate of growth in our enterprise business while moderating the
decline in our SMB business. Through operational effi ciencies, as well as a new go-to-market strategy in our SMB
business, we reduced SG&A expenses by $71 million in 2013, while reducing our debt by $675 million. In addition,
we saw a signifi cant boost in the business that serves the fastest-growing markets, Digital Commerce, increasing
year-over-year revenue by 18 percent on a constant currency basis in the fourth quarter. A fi nancial analyst who
covers us recently wrote that our company’s “impressive execution on its stated goals … has begun to manifest
in results.” I know that we have much further to go, but I couldn’t agree more.
In my note to shareholders last year, just four months after
becoming CEO, I wrote that I came to Pitney Bowes because
I saw a company with enormous promise and unique strengths —
a company with immense opportunities ahead if we could make
the right strategic choices and execute with discipline.
Marc B. Lautenbach
President and Chief
Executive Offi cer
Michael Monahan
Executive Vice President
and Chief Financial Offi cer