Xerox 2012 Annual Report Download - page 8

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Second: Maintaining our leadership in Document Technology.
Print is changing, but it is far from dead. Where transactional
black-and-white documents are in decline, color printing in offices
and graphic communications settings is growing – and, not surprising,
is an area of strength for our business. We offer the industry’s
broadest range of color printing technology to serve small offices all
the way up to large production houses. You may no longer use inkjet
printers in your home. (That’s OK with me; it’s not the business we’re in.)
But, in offices and print shops, our color technology is in demand and
has resulted in pages on color devices growing 9 percent in 2012.
Through an expanded network of channel partners, we’re now able
to bring the Xerox brand to more establishments around the globe.
Third: Managing our business with a focus on operational
excellence. This is something we’re very proficient at today and
it’s an area where we never rest. It gives us the financial flexibility
to help offset certain pressures on the business – whether it’s
economic uncertainty or necessary investments that drive growth.
We continue to invest in what matters to our customers, including
high-value scalable products and unrivalled service and delivery that
earn customer loyalty.
Fourth: Delivering strong cash flow and returning value to you.
By executing with precision and excellence on the first three priorities,
we delivered on the fourth. We generated $2.6 billion in operating cash
flow in 2012 and allocated $1.05 billion of that cash to buy back
a significant number of Xerox shares during the year. In addition,
we paid out $255 million in dividends during the year. You expect
and deserve a strong return on your investment in Xerox and we owe
you nothing less.
So, that’s our story. Solid results in a challenging environment – a robust
strategy for an expanding market opportunity – and a clear set of
priorities aimed at creating value for all of our constituents. But that’s
only part of the story… here’s the rest.
Creating Customer Value
I spend a lot of my time meeting with customers, learning about their
business problems and trying to explain to them that we can help.
Just a few years ago, that was a tough sell. The Xerox brand is powerful,
but for many it stood for superior document technology. Period.
Talking to our customers about our Services offerings was often met
with “Is that what Xerox does?” That has changed – partly because
of our marketing efforts and partly because of the pervasiveness of
our footprint. Today I can tell customers that we handle $421 billion
in accounts payables annually… answer 1.6 million customer
interactions daily… manage benefits for more than 11 million
employees… process 900 million insurance claims every year…
collect 37 billion transit fares annually… reduce document-related
costs for enterprises large and small by up to 30 percent… and a
whole lot more.
Sustainable Strategy
I was speaking with students recently at NYU Polytechnic, my
undergraduate alma mater, when a student asked me what Xerox might
look like five years from now. The world is changing at such a dramatic
pace that I imagine a lot of CEOs might have a difficult time answering
Norwegian State Railways needed dual-mode ticketing,
we gave them paper and plastic.
Our Challenge: Launch interoperable e-ticketing and paper-
based ticketing systems.
Bottom-line Results: To expand passenger self-service ticketing
options and reduce operating costs, the Norwegian State
Railway wanted an interoperable e-ticketing system and revenue
collection and control system. We deployed national, paper-
based and contactless smart card solutions that met the client’s
high requirements for quality, availability and reliability.