Xerox 2004 Annual Report Download - page 6

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processes they work with, the objectives they
strive for. In other words, we help our customers
find better ways to do great work through the
use of Smarter Document Management. It’s an
area in which we are uniquely advantaged.
These three market areas – digital office,
digital production and value-added services –
total more than $100 billion of market opportunity
today. Advances in digital technology, many of
them driven by Xerox, are likely to significantly
expand the market size in the years ahead. We
do not want for opportunity.
The only thing that stands between Xerox
and significant growth is execution. And that,
fortunately, is entirely within our own control.
It’s a good place to be.
Shareholder Value Our Mantra
If I sound optimistic about our future, it’s
because I am. But don’t mistake optimism for
hubris. All of us at Xerox recognize that we are
in a race without a finish line. Our competitors
are formidable and they are not standing still.
Our customers are demanding that westay
on the leading edge of technology and services.
Our shareholders are expecting us to deliver
premium returns.
We don’t shrink from these expectations.
We embrace them. This generation of Xerox
people has been tested. We’velearned from our
mistakes. At a recent town meeting, a Xerox
employee asked me what our greatest strength
and weakness was as I looked to the future.
My answer: our greatest strength is our people –
a highly motivated group of individuals who
are committed to their customers, passionate
about the success of Xerox and on a mission to
drive shareholder value.
And our weakness? That we start believing
our own press, that we even subconsciously
start to behave as though “good enough” really
is good enough. That’s something we ferociously
guard against. We’re building a culture that
is problem curious, that abhors the status quo,
that looks at every challenge as an opportunity
to improve.
All of you have put your trust in us – many
of you at a time when others were writing our
obituary.It’ssomething wewill never forget. Ever.
By the way, just about every Xerox person
around the world is a shareowner. We are all
in this together. Weare all focused on creating
shareholder value and we’re making good
progress. Xerox’s share price increased 23
percent last year contributing to a three-year
cumulative annual growth rate of 18 percent.
We’re proud of that, but we also know that it’s
yesterday’s news.
We realize better than most how easy it is
to lose our way. Avoiding that pitfall is what
energizes us. We are all focused on a few simple
objectives – focusing on our customers with
precision and passion, growing revenue and
improving profitability. If we do that well, we
know we will create value for our shareholders
and give you a good return on the trust you
place in us.
You should expect no less; weaim to deliver
no less.
Anne M. Mulcahy
Chairman and CEO
4
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’02 ’03 ’04
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859
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Return to Profitability
Net Income (Loss)
($ in millions)