Xerox 2005 Annual Report Download - page 7

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Chairman’s Letter
Agrowing list of global companies are turning to Xerox
for help in managing their worldwide document needs.
The Dow Chemical Company is a good example.
They’ve signed a $66 million deal with us to consolidate
all of their document assets – printers, copiers, fax
machines and scanners – in 54 countries. Dow will get
more technology at less cost, seamless integration
around the world and the value of working with a global
partner. We believe arrangements such as this are
the wave of the future. You can read more about our
relationship with Dow on page 10 in this report.
Fifth, the customer-centric culture we have built and
continue to strengthen. Our people recognize that the
customer is our priority among priorities – the reason
we exist. Some 12,000 of our people – that’s one in
five – literally work every day on customer sites. We
work with our customers, offering not just our products,
but also providing solutions to the most pressing
problems of our customers.
The vast majority of our leadership team – including
people such as our Chief Accounting Officer and General
Counsel – have personal responsibility for the relationship
with one of our major customers. Whenever I call on a
customer – and that’s every chance I get – they tell me
that the most important reason they do business with
us is the caliber and commitment of our people. It’s a
priceless asset.
Sixth, the strength of our brand.We nurture it.
We invest in it. And we know that it opens doors, gives
us permission to compete for business and positions
us as an attractive and trusted partner.
One recent brand-building achievement is worthy of
special mention. J.D. Power and Associates named Xerox
the first document management company to receive
its certification for excellence in customer service
and support. J.D. Power evaluated the breadth of our
on-site, phone and online customer service. In addition,
auditors conducted several comprehensive visits to
our call centers and surveyed hundreds of our customers.
It’squite an honor and one that will motivate us to strive
for even higher levels of performance.
5
’01 ’02 ’03 ’04 ’05
38.6 42.6 41.6 41.2
’01 ’02 ’03 ’04 ’05
4,728 4,437 4,249 4,203 4,110
’01 ’02 ’03 ’04 ’05
4,403 3,970 4,250 4,480 4,519
Increased Net Income
Net Income (Loss)
($ millions)
Steady
Equipment Sales
($ millions)
Accelerated
Color Revenue
(Included in Total
Revenue – $millions)
Decreased Debt
as of December 31
($ billions)
Stabilized
Gross Margins
(Percent)
Reduced Selling,
Administrative and
General Expenses
($ millions)
’01 ’02 ’03 ’04 ’05
(94) 91
360
859
978
16.7
’01 ’02 ’03 ’04 ’05
14.2
11.2 10.1
7.3
’01 ’02 ’03 ’04 ’05
2,759 2,781
3,903
4,634
3,267
42.8