Report Of The Month - Best Annual Reports - e.com ReportWatch

ReportWatch Best Annual Reports

Report of the month

August 2008

Download as PDF
Xerox Norwalk, CT, U.S.A. Report Facts Company name: Xerox Corporation Fiscal year end: December 31, 2007 Report title: Listening, connected, committed to… you Chairman and CEO: Anne M. Mulcahy Number of books: One Report length: 136 pages Auditors: PricewaterhouseCoopers LLP Design: Pappas MacDonnell Inc. E-mail: james.lesko@xerox.com or jennifer.horsley@xerox.com	Report Rating 3.5/5 (Rating scale below) Profile-Mission (Excerpts, as from the report) We are a $17.2 billion technology and services enterprise and a leader in the global document market. We develop, manufacture, market, service and finance a complete range of document equipment, software, solutions and services. We operate in more than 160 countries… 28% of revenue from equipment sales; 72% from post sale, maintenance, supplies and financing. (Annual Report p 30, p 46) (Italics are own company’s words) Key Figures Total revenue: $ 17,228 million Net income: $ 1,135 million Earnings per share: $ 1.19 (diluted) Dividend per share: $ 0.0425 (common stock) Equity: $ 8,588 million Gross margin: 40.3% Operating margin: 9.3% (Source: 2007 figures sourced from the annual report) Major Competitors Canon HP (Hewlett-Packard) Ricoh Océ Konica Minolta Lexmark

Triple A > Fellow shareholders receive a solid ten-page Letter from Chairman and CEO Anne M. Mulcahy, that reminds the past strategic bets, convincingly argues about progress made, substantiates the message with six well-picked five-year charts, and tells what excites her and how the company is playing offense. > Extremely clear Operations Review written in plain English, laid out in a two-column grid, paced with tables, and made reader-friendly through an intensive use of bullet points (see e.g. Costs, Expenses and Other Income in our selected page below, including a matter-o-fact gross margin analysis).

Double A > Though coming a bit late, the business profile, revenue streams and segments are clearly defined. > Four case studies describe What we heard and What we did and sustain the Listening, committed cover theme, with a few pictorial breathers. > Emphasis placed on research and development.

Simple A > Though coming a bit late, the business profile, revenue streams and segments are > Five years in review recap is finely structured and includes key ratios such as gross margin (broken down also for finance services), working capital and current ratio. But a number of major indicators are left out.

Some Bs > Is there a good reason for not highlighting dividends? An answer comes only on… p 135! > The page one Financial overview is lacking in details: 8 items only, over two years, no balance sheet one… > Liquidity analysis and indicators lag far behind the operating performance review. ROE and debt-to-equity are not in print and are left to readers with a calculator. > Governance matters are left out of the core annuals, like in mainstream U.S. annuals. > Stripes and lines do not make up the snazziest visual thread. Even the cover is quite dull.

How does the company report in key areas? What are the main report pluses and minuses? The Report Scan gives an overview of strengths and weaknesses, and scores each item. Contact e.com@reportwatch.net

Selected Page (p 63 of Xerox Annual Report 2007)	Rating Scale 5 First-Rate 4.5 Excellent 4 Very good 3.5 Sound 3 Average 2.5 Uneven 2 Common 1.5 Substandard 1 Poor 0.5 Uncompetitive The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.