Pitney Bowes (PBI)

Transformation Initiatives

The company has embarked upon a series of initiatives that are designed to transform and enhance the way it operates as a global company. On a pre-tax basis the company is targeting net benefits from its transformation program in the range of $150 to $200 million, after reinvesting a portion of the benefits, and expects to achieve the full benefit run rate by 2012.

The company expects the total related pre-tax costs associated with this program will be in the range of $250 million to $350 million and that most of these charges will be cash related charges. The program is expected to result in the elimination of up to 10 percent of the positions in the company.

These initiatives, which the company expects to complete over the next two years include:

• Implementation of enterprise-wide systems and common platforms to improve and streamline corporate-wide processes;
• Enhanced use of technology to enable the company’s customers to more easily interact with Pitney Bowes when and how they choose;
• Expansion of the company’s agile workforce strategy to be closer to its customers and rationalize its worldwide facilities requirements;
• Utilization of enhanced procurement processes; and,
• An increase in shared services across business units, including an increase in outsourcing relationships.

Mr. Martin added, “This strategic transformation program represents an important step in the evolution of Pitney Bowes in a rapidly changing environment. The initiatives we are implementing over the next two years will transform the way the company operates globally, in order to build sustainable long-term value for shareholders and customers.”