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Lexmark AR04

  1. 1. Life can be complicated. 2004 Annual Report
  2. 2. Contents 1 Financial Highlights 3 Letter to Shareholders 5 Lexmark’s Strategy 7 Enterprise 11 Small & Medium Business 17 Consumer 21 Corporate Citizenship 25 Sales Offices 27 Corporate Information LEXMARK 2004 ANNUAL REPORT
  3. 3. uncomplicate At Lexmark, our mission is to make it easier for businesses and consumers to move information between the paper and digital worlds. We understand what our customers really want. Solutions. Simplicity. It’s how we u n c o m p l i c a t e printing, business, life. LEXMARK 2004 ANNUAL REPORT
  4. 4. Financial Highlights (Dollars in millions, except per share data) Statement of Earnings Data: 2001 2000 2004 2003 2002 Revenue $ 4,104.3 $ 3,767.3 $ 5,313.8 $ 4,754.7 $ 4,356.4 Cost of revenue (1) 2,865.3 2,550.9 3,522.4 3,209.6 2,985.8 Gross profit 1,239.0 1,216.4 1,791.4 1,545.1 1,370.6 Research and development 246.2 216.5 312.7 265.7 247.9 Selling, general and administrative 593.4 542.9 746.6 685.5 617.8 Restructuring and related (reversal) charges (1) (2) (3) 58.4 41.3 – – (5.9) (5.9) Operating expense 898.0 800.7 1,059.3 951.2 859.8 Operating income 341.0 415.7 732.1 593.9 510.8 Interest (income) expense, net 14.8 12.8 (14.5) (14.5) (0.4) 9.0 (0.4) Other expense 8.4 6.5 0.1 0.8 6.2 Earnings before income taxes 317.8 396.4 746.5 593.5 495.6 Provision for income taxes (4) (5) 44.2 111.0 177.8 154.3 128.9 Net earnings $ 273.6 $ 285.4 $ 568.7 $ 439.2 $ 366.7 Diluted net earnings per common share $ 2.05 $ 2.13 $ 4.28 $ 3.34 $ 2.79 Shares used in per share calculation 133.8 134.3 132.9 131.4 131.6 Statement of Financial Position Data: Working capital $ 562.0 $ 264.7 $ 1,533.2 $ 1,260.5 $ 699.8 Total assets 2,449.9 2,073.2 4,124.3 3,450.4 2,808.1 Total debt 160.1 148.9 151.0 150.4 161.5 Stockholders’ equity 1,075.9 777.0 2,082.9 1,643.0 1,081.6 Other Key Data: Net cash from operations (6) $ 195.7 $ 476.3 $ 775.4 $ 747.6 $ 815.6 Capital expenditures $ 214.4 $ 296.8 $ 198.3 $ 93.8 $ 111.7 Debt to total capital ratio (7) 13% 16% 7% 8% 13% Number of employees (8) 12,700 13,000 13,400 11,800 12,100 (1) Amounts include the impact of restructuring and other charges in 2001 of $87.7 million ($64.5 million, net of tax), which resulted in a $0.48 reduction in diluted net earnings per share. Inventory write-offs of $29.3 million associated with the restructuring actions were included in cost of revenue. (2) Amounts include the benefit of a $5.9 million ($4.4 million, net of tax) reversal of restructuring and other charges in 2002, which resulted in a $0.03 increase in diluted net earnings per share. (3) Amounts include the impact of restructuring and related charges in 2000 of $41.3 million ($29.7 million, net of tax), which resulted in a $0.22 reduction in diluted net earnings per share. (4) Provision for income taxes in 2004 includes a $20.0 million benefit from the resolution of income tax matters, which resulted in a $0.15 increase in diluted net earnings per share. (5) Provision for income taxes in 2001 includes a $40.0 million benefit from the resolution of income tax matters, which resulted in a $0.30 increase in diluted net earnings per share. (6) Cash flows from investing and financing activities, which are not presented, are integral components of total cash flow activity. (7) The debt to total capital ratio is computed by dividing total debt (which includes both short-term and long-term debt) by the sum of total debt and stockholders’ equity. (8) Represents the approximate number of full-time equivalent employees at December 31 of each year. 1 LEXMARK 2004 ANNUAL REPORT
  5. 5. $6.0 Lexmark’s revenue rose 12 percent WORLDWIDE REVENUE ($ in billions) in 2004 to $5.3 billion. $5.3 $5.0 $4.8 $4.4 $4.0 $4.1 $3.8 $3.0 $2.0 $1.0 $0.0 2000 2001 2002 2003 2004 $3.5 Lexmark has generated approximately CUMULATIVE NET CASH PROVIDED BY OPERATING ACTIVITIES SINCE 2000 $3.0 billion cumulative net cash from ($ in billions) $3.0 $3.0 operating activities over the past five years. $2.5 $2.2 $2.0 $1.5 $1.5 $1.0 $0.7 $0.5 $0.5 $0.0 2000 2001 2002 2003 2004 $5.00 Earnings per share were $4.28 in DILUTED NET EARNINGS PER SHARE 2004, compared to $3.34 in 2003. $ 4.28 $4.00 $3.34 $3.00 $2.79 $2.00 $ 2.13 $2.05 $1.00 $0.00 2000 2001 2002 2003 2004 2000 EPS was reduced by 22 cents as a result of restructuring and related charges. 2001 EPS was reduced by 48 cents as a result of restructuring and related charges and was increased by 30 cents as a result of an income tax reversal due to the resolution of tax matters. 2002 EPS was increased by 3 cents as a result of reversal of restructuring and related charges. 2004 EPS was increased by 15 cents as a result of an income tax reversal due to the resolution of tax matters. 2 LEXMARK 2004 ANNUAL REPORT
  6. 6. To my fellow shareholders: our future sales of supplies, which is Despite mixed economic and market the profit engine for Lexmark. In 2004, conditions around the world last we had double-digit hardware revenue year, Lexmark continued to grow growth in every quarter. For the year, based on the strength of our products hardware revenue grew 14 percent, and services and on our unending a significant improvement over our 8 commitment to meeting the needs of percent growth in 2003, and marks our our customers. strongest hardware revenue growth since 1998. For the year, revenue was $5.3 billion, up 12 percent from 2003. Operating 2004 was not only a strong year in income was $732 million, up 23 terms of revenue and profit growth, it percent, and diluted net earnings per was an important year of investment share were $4.28, a year-over-year in Lexmark’s future. Strategically, increase of 28 percent. For the year, we we’re expanding our product line to continued to see strong cash generation, enter and increase our presence in with net cash provided by operating future growth segments such as photo activities of $775 million. Most inkjets, business inkjets, low-end encouraging was the double-digit unit mono lasers, color lasers and laser growth for the year in both our laser multifunction devices. We’re also printer and inkjet printer shipments. focused on differentiating ourselves through “easy-to-use” products and One of the most important metrics through our corporate solutions and for Lexmark is our hardware revenue services business. We see significant growth because sales of hardware drive 3 LEXMARK 2004 ANNUAL REPORT
  7. 7. growth opportunities ahead, but these distributed printing and imaging, will be helpful in conveying some of the opportunities require investment. which continues to be a growth impact this commitment has with our market with attractive opportunities. customers. In closing, I would like to As a result, we’ve embarked on several - Our supplies-based business model, thank our employees and our business key strategic initiatives to pursue these with the majority of our revenue partners for their contributions to our opportunities and to drive the long- coming from our recurring core term growth of the company. The first supplies, provides consistency and key initiative is to increase our level funds future investments. At Lexmark, we spend less time of research and development spending - And we believe we are unique in the talking about our technology to pursue these additional segments. market with our vertical integration in and more time listening to our The second key initiative is to increase technology and our close interaction customers. awareness of Lexmark and to develop with our customers. our brand position. We started these investments in 2004 and will continue At Lexmark, we have a strong sense of them in 2005. Although these values, including strong commitments to success, and I would like to express my investments will result in a higher level of the environment, to the diversity of our gratitude to our shareholders for putting operating expense, they are prudent and workforce, and to the communities in your continued trust in Lexmark. necessary to sustain profitable growth. which we live and work. Sincerely, As we look to the future, we feel very As a company, we have a single vision: optimistic about Lexmark – our position Customers For Life. Within Lexmark Paul J. Curlander in the market, our technology, and our there is a strong commitment to meeting opportunities to grow. this high standard. Hopefully the Chairman and Chief Executive Officer - We’re exclusively focused in customer stories contained in this report March 2005 4 LEXMARK 2004 ANNUAL REPORT
  8. 8. LEXMARK’S STRATEGY U n d er s tanding the business Lexmark executives from left to right: David Goodnight, vice president, Asia Pacific and Latin America; Vincent Cole, vice president, general counsel and secretary; Gary Morin, executive vice president and CFO; Jeri Stromquist, vice president, human resources; Paul Curlander, chairman and CEO; Paul Rooke, executive vice president and president of the Printing Solutions and Services Division; Najib Bahous, vice president and president of the Consumer Printer Division. 5 LEXMARK 2004 ANNUAL REPORT
  9. 9. LEXMARK’S STRATEGY We invest in technologies, products and we develop all three core print Our exclusive focus on printing makes us paths to market that enable us to bring technologies — monochrome laser, relatively simple to understand. But there innovative printing solutions to the color laser and inkjet. is more to the Lexmark story that merits distributed printing and imaging market. - We sell that technology to our discussion as we plan for our continued Our industry-leading features spur customers through our retail-centric success. hardware sales and add to our installed consumer teams, and our large Our strategy base. The installed base of printers, in account industry teams, driving turn, drives recurring sales of supplies. Under our well-defined strategy, we want to: Supplies are the profit engine of the - Expand our product line to enter and business model, representing significantly increase our presence in the future We are the only major company more than half of our gross profit. Our growth segments – segments such as that is 100 percent focused on supplies profits then fund new research color lasers and home photo printers, customers’ printing needs. and development investments, further where Lexmark is currently under- fueling technological advances. represented. - Build our market position with And the cycle begins again. consumers and business customers by differentiating ourselves through customer responsiveness and flexibility Our competitive advantages easy-to-use products, and through that is unmatched in the industry. Lexmark has a number of strengths that our corporate solutions and services Since we develop our own technology, truly distinguish us from the rest of the business. we have the capability to respond crowd. - Develop our brand image and directly to our customers’ needs with - We are the only major company in the awareness as the printing and imaging tailored business solutions. industry that is 100 percent focused company that makes it easy to get on distributed output. We are not things done. These core strengths give us confidence distracted by non-printing businesses, that we can capitalize on the key trends Our business model nor are we subsidizing other in the market to grow and expand our businesses out of our profit stream. Our business model is very straight- installed base of products. - Unlike most of our competitors, forward. 6 LEXMARK 2004 ANNUAL REPORT
  10. 10. ENTERPRISE W h y w o uld a printer compan y w a n t you to print less? 7 LEXMARK 2004 ANNUAL REPORT
  11. 11. ENTERPRISE The answer is simple. Our goal is to earn proposition and enable us to provide Lexmark C762 Color Laser Printer Customers For Life. By helping customers managed services for large customers with improve their business processes, we earn distributed printing environments, where their trust. In order to develop long- devices reside closer to the end users. By hardware is MarkVisionTM Professional, term relationships, we show our large our industry-leading platform for device enterprise customers that Lexmark’s management. unique expertise can help customers be It’s not just about printing. It’s more productive, more efficient and more Helping customers move information from helping our customers to work responsive – with lower costs. the paper to the digital world – and back more productively and less – is part of our move proposition. We expensively. Another distinguishing characteristic of have devices featuring intuitive, touch- Lexmark is our large account sales force, screen displays that allow anyone – bank which is aligned by industry. This structure tellers, dock workers, nurses, teachers, allows us to be the leader in a wide variety store clerks – to scan, print, copy, fax or definition, these distributed devices are of market-specific solutions. The result e-mail with virtually no training. Many of impractical to track with on-site labor, of our customer knowledge is a tiered the largest companies in the world have which is why our expertise and unique proposition we call “print, move, manage.” experienced the customizable functions software help customers proactively that we design. In many cases, these optimize their systems by better knowing Our print proposition continues to grow customizable functions reduce the time of how their assets are being utilized. stronger each year. As developers of our paper-based processes from days down to own laser technology, we have a broad the time it takes to push a button. range of monochrome laser printers, color laser printers and powerful multifunction Our distributed fleet management services form the backbone of Lexmark’s manage devices. Layered onto this easy-to-use 8 LEXMARK 2004 ANNUAL REPORT
  12. 12. ENTERPRISE L ex m a rk a n d Newsweek: Delivering good n e w s t o a lead er in d elivering news Lexmark worked with Newsweek to Writing, editing and publishing a people have uncovered information tailor a solution that accomplished all chronicle of global events for 21 million they never would have been able to three. Applying Lexmark’s “Print, Move, people in 190 countries every seven days discover before,” said Leonard Carella, Manage” philosophy, we conducted an in- requires the kind of content-management Newsweek’s vice president and chief depth output assessment of Newsweek’s expertise that makes Newsweek one technical officer. “This has led to better printing infrastructure. Our findings of the most decorated and trusted and faster decision making.” helped us design a customized print- periodicals in the world. on-demand solution that consolidated But the CTO is not the only one cheering printing hardware throughout the Newsweek’s New York headquarters, the the good news; the CFO also has magazine’s offices. hub of news-gathering operations as far reason to applaud the change thanks to flung as Moscow and Mexico City, used significant cost savings for Newsweek. The new approach integrates our ongoing to rely on a mainframe-based printing Newer equipment and better processes consulting services with our robust system to publish financial reports at an for less money – now that’s the kind document-management software and offsite location. Business managers on of business solution that can make Lexmark monochrome and color MFPs. five floors of the Manhattan offices relied headlines. Consequently, productivity has increased on a printing system that management as Newsweek employees now have on- viewed as both costly and inefficient. demand access to financial reports. Newsweek sought a new solution to “Because data is freely available and save money, reduce waste and improve accessible in ways never before possible, the speed of content delivery – and 9 LEXMARK 2004 ANNUAL REPORT
  13. 13. Leonard Carella Vice President and Chief Technical Officer Newsweek 10 LEXMARK 2004 ANNUAL REPORT
  14. 14. SMALL & MEDIUM BUSINESS U n i q u e b usin esses, unique n eeds. 11 LEXMARK 2004 ANNUAL REPORT
  15. 15. SMALL & MEDIUM BUSINESS Lexmark X7170 can manage and We pay close attention to our customers. Lexmark X7170 Office Productivity All-In-One distribute documents, convert scanned We interview them. We observe activity information to text with industry-leading in their work settings. And we tailor character-recognition software, create our technology to meet their needs. One large companies, but with duty cycles, common concern we used to hear from acquisition prices and maintenance costs small and medium businesses (SMBs) is better suited for a smaller organization. that they have special and unique needs, Lexmark’s exclusive Productivity so they didn’t want to have to choose One of our breakthrough products for Suite is loaded with tools to help from the same devices being offered to this demand was 2004’s introduction of small businesses capture, produce, large enterprises. the Lexmark X7170. We call it the Office manage and distribute documents Productivity All-In-One because it does with ease. We listened. We heard. And we more than print, scan, copy and fax. It responded. actually helps SMBs manage information in their businesses. It comes with our Just as smaller businesses must do exclusive Productivity Suite software that and search PDFs, scan to e-mail, and more with less, the same is expected serves as an interface between the printer manage and edit photos. of workplace printers. Our customers and the PC. want to not only print, but also fax, copy In other words, thanks to Lexmark, and scan images to be e-mailed around In addition to the easy execution of you don’t have to be a big company to their organization – the same as at common office printing tasks, the perform like one. 12 LEXMARK 2004 ANNUAL REPORT
  16. 16. SMALL & MEDIUM BUSINESS L ex m a rk a nd YGM: Helping a small c o m p a n y become a big business manufacturer with factories in Asia Not every small and medium business printers (monochrome, color and and Africa. imagines itself as a global titan, multifunction) that offer the network but virtually all SMBs would like scanning and printing that meets At its Hong Kong headquarters, YGM to experience growth without the YGM’s needs. has 300 employees who used to share headaches associated with being 10 printers, two copiers, two faxes and a large enterprise. Lexmark helps “We save manpower because the two scanners – none of which were them make their business processes machines don’t break down, we save networked. simpler so they can stay focused on money because the acquisition and development, marketing, production or maintenance costs were lower than Lloyd Hui is the system administrator fulfillment. other options, and we save time who decided the company could because people are no longer walking be more competitive if it improved Take YGM Co., LTD, for example. long distances to stand in line at a efficiency and reduced costs for these From its humble beginnings as a slow printer,” said Mr. Hui. “We chose workflow functions. His search for a small garment factory with 20 Lexmark because their products have solution led him to Lexmark, where sewing machines, YGM has grown the flexibility to expand – which we we set him up with an array of laser into a respected original equipment expect them to do while we grow.” 13 LEXMARK 2004 ANNUAL REPORT
  17. 17. Lloyd Hui System Administrator YGM Co., LTD 14 LEXMARK 2004 ANNUAL REPORT
  18. 18. SMALL & MEDIUM BUSINESS L ex m a rk and UDLA: Changing t h e rules for class paper s From its beginnings as a two-year college send their print jobs to the school’s print curriculum; it also has a pioneering in Mexico City more than 60 years ago, server, where the document is stored until IT solution to improve the coursework the Universidad de las Americas Puebla the student is ready to visit one of the experience for more than 8,000 students. (UDLA) has evolved into one of the most touch-screen kiosks around campus.” prestigious higher learning institutions With the help of Lexmark’s hardware in Mexico. Fully certified by accrediting They access their queue and print on and software, UDLA installed 30 printing organizations in both Mexico and the demand. The charge for the printing is stations (25 in monochrome and five in United States, its nearly 600 professors automatically debited from the student’s color) in labs, libraries and residential teach 36 degree programs, including account, so the solution is as user-friendly areas around campus. 27 masters degrees and two doctorate for UDLA as it is for the students. programs. “Today, our students no longer need to be in a computer lab to print their term But the evolution of the school has not papers,” said Juan Carlos Jenkins, the been limited to the scope of the academic school’s CIO. “Instead, they wirelessly 15 LEXMARK 2004 ANNUAL REPORT
  19. 19. Juan Carlos Jenkins Chief Information Officer UDLA 16 LEXMARK 2004 ANNUAL REPORT
  20. 20. CONSUMER O u r i n k jets are, quite simply, better printers. 17 LEXMARK 2004 ANNUAL REPORT
  21. 21. CONSUMER Lexmark P6250 Home Photo Center All-In-One Want to print the perfect photo to If your time is at a premium… if sound obvious, but it’s not always the share with your family without all simplicity is important to you… if you case with all technology companies. At of the “techy” hassle? Lexmark’s want high-quality output without having Lexmark, we are vigorous in our research new photo printers make all of the to work hard to get it… then Lexmark’s of customers’ preferences and needs adjustments for you, eliminating the inkjets are the choice for you. – and their demand for simplicity has hassle and producing brilliant prints. led us to break the “chain of pain” that The uncomplicated nature of the used to accompany such popular tasks as Lexmark printing experience and the printing photos at home. stunning output that results are no improvement drives us to pursue superior accident; they are the product of our print quality, longer-lasting inks, higher- These ease-of-use features are combined mindset. We are focused on delivering value cartridges and faster output. with a new level of technological customer-driven products. That may innovation. Our constant quest for 18 LEXMARK 2004 ANNUAL REPORT
  22. 22. L ex m a rk a n d YOU: Making printing at h o m e e a sier than making toas t your images right on the control panel From busy moms to shutterbugs, a high-quality copy. But don’t take our thanks to the color LCD screen, which everyone enjoys the convenience of word for it… will also give you a video preview so you printing documents or photos at home, know exactly how your print will turn but thanks to Lexmark no one needs “The Lexmark P6250 is a good all-a- out. An ingenious light bar makes sure to be a rocket scientist to know how to round home printing solution. I have the original is oriented correctly for produce great output. We make it easy recommended it to many of my students. perfect prints the first time. It’s so easy for you to print what you want so you I love the archival photo quality, the to use that a five-year-old could operate can get on with your life. We’ve made great document prints, and it has by far this printer. But they wouldn’t be able to everything about our home-printing the best and quickest scanning features shove a toy in the card reader because of products easier to use because we want I have ever used. It has become an the protective cover we built in. the customer’s purchase decision to be invaluable tool in my scrapbook business. just as easy to make. The memory card readers mean that I From one-button operations to a light bar can manipulate and print my pictures that ensures correct paper orientation, to Take, for example, the Lexmark P6250 immediately and have sample products LCD screens with tutorials, our products that we unveiled in 2004. Without any for my students and customers in are engineered to make the user’s PC connection, you’re just seconds away minutes.” experience simple and uncomplicated. So from printing high-resolution digital – Paula F. Jones, Canada even if you’re distracted or in a hurry, photos. Enlargements or reductions are you’re only one click away from making just a single button away. You can crop 19 LEXMARK 2004 ANNUAL REPORT
  23. 23. Paula Jones Scrapbooker Canada 20 LEXMARK 2004 ANNUAL REPORT
  24. 24. CORPORATE CITIZENSHIP I t ’s m o r e than just being a good c o rporate citizen… 21 LEXMARK 2004 ANNUAL REPORT
  25. 25. CORPORATE CITIZENSHIP We also measure success by the difference for conference room wall hangings or Partnering with schools all across the we make in the communities where we employee manuals. At Lexmark, we live United States, Lexmark donates inkjet conduct business. them. We make them count. printers, CD-ROMs with high-resolution art masterpieces from a consortium “We are responsible to the communities in We donate millions of dollars each of Europe’s leading museums, and which we live and work, the environment, year through traditional charitable corresponding lesson plans that apply the and to the world community” are words cash contributions, in-kind support and artwork to aid in the teaching of math, that appear in the employee-drafted equipment donations. Another program history, social studies and humanities. Vision and Values Statement that guides of which we are very proud is the Lexmark. These are not merely words Lexmark Print Art Educational Program. 22 LEXMARK 2004 ANNUAL REPORT
  26. 26. CORPORATE CITIZENSHIP … i t ’ s a p ar tner ship in education. Among the 22,000 schools across the was, ‘Wow, I can’t believe they did this!’ house the technology for the rest of the United States that are part of the Print I think the principals were almost more year. Art Educational Program are the six excited than the teachers because they’re schools of the Ozark R-VI school district not used to things walking in for free.” “Our staff implemented the technology in southwest Missouri. the way it was intended, which made us Ozark R-VI is proof that the program very successful in reaching the maximum “In a growing district, it sometimes succeeds beyond the boundaries of the art number of kids,” Snelling concluded. seems like new equipment is the most room. While some of the schools deployed difficult thing to get – especially at the the technology in the art classes, others elementary level,” said Karen Snelling, put the printers and CDs in their libraries. the district’s technology coordinator. In fact, Dr. Kim Fitzpatrick, the principal at Ozark’s South Elementary, held a “So when the Lexmark printers showed contest among all the teachers in her up,” Snelling continued, “the reaction school to determine which class would 23 LEXMARK 2004 ANNUAL REPORT
  27. 27. Karen Snelling Technology Coordinator Ozark R-VI Schools 24 LEXMARK 2004 ANNUAL REPORT
  28. 28. Sales Offices Asia Pacific Tokyo, Japan Quebec City, Quebec (813) 5649 0222 (418) 650-4484 Brisbane, Australia (617) 3229 1890 Seoul, Korea Toronto, Ontario (822) 2189-6800 (905) 763-0560 Canberra, Australia (612) 6285 1177 Petaling Jaya, Malaysia Vancouver, British Columbia (603) 7492 0862 (604) 732-9755 Melbourne, Australia (613) 9473 3100 Auckland, New Zealand (649) 359 7474 Europe, Middle East Sydney, Australia and Africa (612) 9930 3500 Manila, Philippines (632) 375 1750 Perth, Australia Wien, Austria (618) 9480 8666 Singapore 43 1 797 32 0 (65) 6467 9898 Beijing, China Zaventem, Belgium (8610) 6517 2888 Kaohsiung, Taiwan 32 2 716 74 11 886-7-235-0660 Chengdu, China Birkeroed, Denmark (8628) 8620 3977 Taipei, Taiwan 45 45 99 88 88 886-2-2531-2335 Guangzhou, China Marlow, England (8620) 3877 2810 Bangkok, Thailand 44 8704 440044 (662) 343 1729 Hong Kong, China Espoo, Finland (852) 2866 8900 358 9 525 340 Shanghai, China Paris, France Canada (8621) 6335 1600 33 146 67 40 00 Chennai, India Calgary, Alberta Dietzenbach, Germany (9144) 2822 4949 (403) 228-2833 49 6074 488 0 Mumbai, India Edmonton, Alberta Milan, Italy (9122) 2605 7744 (780) 448-2373 39 02 70395 1 New Delhi, India Montreal, Quebec Naarden, The Netherlands (9111) 2620 7302 (450) 676-5396 31 35 69 94 600 Jakarta, Indonesia Ottawa, Ontario Oslo, Norway (6221) 5299 4418 (613) 747-4264 47 2276 3500 25 LEXMARK 2004 ANNUAL REPORT
  29. 29. Krakow, Poland Quito, Ecuador Houston, Texas 48 12 290 14 00 5932-255-8488 (713) 260-8012 Lisbon, Portugal Mexico City, Mexico Irvine, California 351 21 415 3450 52-55-1105-7000 (714) 371-2044 Johannesburg, South Africa Lima, Perú Lexington, Kentucky 27 11 329 0999 511-243-1090 (859) 232-2000 Barcelona, Spain San Juan, Puerto Rico Lexington, Massachusetts 34 934 30 63 07 787-620-8757 (781) 402-3852 Madrid, Spain Coral Gables, Florida, USA Montvale, New Jersey 34 91 436 00 48 305-447-2200 (201) 307-4601 Solna, Sweden Caracas, Venezuela New York, New York 46 8 52 25 79 00 58-212-232-1376 (212) 880-2825 Thalwil, Switzerland Plymouth Meeting, Pennsylvania 41 44 722 88 11 (610) 832-5359 United States For Central and Eastern Europe; CIS/Baltics; Rockville, Maryland Greece; Turkey; Israel; the Middle East; (301) 212-5905 North, West and East Africa, and the Indian Atlanta, Georgia Ocean region, contact the Lexmark Export (770) 510-1778 San Francisco, California Division in Geneva at 41 22 710 72 42. (925) 658-9609 Bloomington, Minnesota (952) 896-2100 Seattle, Washington (425) 453-9082 Chicago, Illinois Latin America (847) 318-5702 Southfield, Michigan (248) 263-3262 Buenos Aires, Argentina Dallas, Texas 5411-4319-8900 (214) 257-0049 St. Louis, Missouri (636) 681-1210 São Paulo, Brazil El Segundo, California 5511-3046-6200 (310) 341-6851 Santiago, Chile Fort Lauderdale, Florida 562-280-9500 (954) 938-3804 Bogotá, Colombia Highlands Ranch, Colorado 571-416-5618 (720) 239-0258 26 LEXMARK 2004 ANNUAL REPORT
  30. 30. C o rporate Information Independent Registered Public Accounting Firm Executive Officers Board of Directors PricewaterhouseCoopers LLP Paul J. Curlander, chairman and chief executive officer Paul J. Curlander, chairman and chief executive officer of 201 East Main Street Lexmark Najib Bahous, vice president and president of the Consumer Suite 1400 Printer Division B. Charles Ames, principal of Clayton, Dubilier & Rice, Inc. Lexington, Kentucky 40507 (859) 255-3366 Daniel P. Bork, vice president, tax Teresa Beck, former president of American Stores Co. Vincent J. Cole, Esq., vice president, general counsel and Frank T. Cary, former chairman and chief executive officer of Transfer Agent secretary IBM The Bank of New York David L. Goodnight, vice president, Asia Pacific and Latin William R. Fields, chairman and chief executive officer of APEC (800) 524-4458 America (China) Asset Management Ltd. Stock transfer site: www.stockbny.com Gary E. Morin, executive vice president and chief financial Ralph E. Gomory, president of the Alfred P. Sloan Foundation E-mail: shareowners@bankofny.com officer Send shareholder inquiries to: Stephen R. Hardis, former chairman and chief executive Shareholder Relations Department Richard A. Pelini, vice president and treasurer officer of Eaton Corp. Box 11258 Paul A. Rooke, executive vice president and president of the James F. Hardymon, former chairman and chief executive Church Street Station Printing Solutions and Services Division officer of Textron, Inc. New York, NY 10286-1258 Send certificates for transfer and address changes to: Gary D. Stromquist, vice president and corporate controller Robert Holland Jr., general partner of Williams Capital Partners Receive and Deliver Department Jeri I. Stromquist, vice president, human resources Marvin L. Mann, chairman emeritus and former chairman and Box 11002 chief executive officer of Lexmark Church Street Station Investor Relations New York, NY 10286-1002 Michael J. Maples, former executive vice president and member of the Office of the President of Microsoft Corp. John Morgan Annual Meeting Lexmark International, Inc. Martin D. Walker, former chairman and chief executive officer One Lexmark Centre Drive of the M.A. Hanna Co. Lexmark International, Inc., will hold its annual meeting of Lexington, Kentucky 40550 shareholders at 8 a.m. EDT, Thursday, April 28, 2005, (859) 232-5568 at the Embassy Suites Hotel, 1801 Newtown Pike, irinfo@lexmark.com Lexington, Kentucky. http://investor.lexmark.com “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This document may contain forward-looking statements that are based on current expectations, estimates and projections and management’s beliefs and assumptions. All statements which are not statements of historical fact are forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict and could affect the company’s actual results. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Such risks and uncertainties include, but are not limited to, the impact of competitors’ products, aggressive pricing from competitors and resellers, market acceptance of new products and pricing programs, management of the company’s and resellers’ inventory levels, increased investment to support product development and marketing, the ability and/or incremental expense to produce and deliver products to satisfy customer demand, conflicts among sales channels, changes in a country’s or region’s political or economic conditions, currency fluctuations, financial failure or loss of business with a key customer, reseller or supplier, production and supply difficulties including disruptions at important points of exit and entry and distribution centers, competition in aftermarket supplies, unforeseen cost impacts, the outcome of pending and future litigation or governmental proceedings, intellectual property and other legal claims and expenses, difficulties or delays in software and information systems implementations, and other risks described in the company’s Securities and Exchange Commission filings. © 2005 Lexmark International, Inc. All rights reserved. Printed in the United States of America, March 2005. Lexmark, Lexmark with diamond design and MarkVision are trademarks of Lexmark International, Inc., registered in the United States and/or other countries. Other trademarks are the property of their respective owners. This is recycled paper. 71K-6600-09 27 LEXMARK 2004 ANNUAL REPORT
  31. 31. www.lexm ark.com One Lexmark Centre Drive, Lexington, Kentucky 40550 USA 71K-6600-09 (859) 232-2000