Slide 1: Setting the record straight: Correcting Hestia's numerous false claims
Setting the record straight: Correcting Hestia’s numerous false claims in its six “Value Creation Pillars” April 2023
Slide 2: Cautionary statement regarding forward-looking statements
Cautionary statement regarding forward-looking statements About Pitney Bowes Pitney Bowes (NYSE:PBI) is a global shipping and mailing company that provides technology, logistics, and financial services to more than 90 percent of the Fortune 500. Small business, retail, enterprise, and government cli
Slide 3: Hestia's "Value Creation Pillars": Critical false claims
Hestia’s “Value Creation Pillars” Critical false claims, among several others ✓ Hestia’s focus on “unallocated costs” is a misdirection that ignores the fact “Pillar” 1: Optimize Corporate that our SG&A expense ratio is in range with our peers Cost Structure ✓ PBI has reduced its SG&A as % of revenu
Slide 4: Hestia's focus on "unallocated costs" is a misdirection
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Hestia’s focus on “unallocated costs” is a misdirection that ignores that our SG&A % is in range with our peers â–ª Focus on unallocated costs ignores that they are only a
Slide 5: Since 2012, we have eliminated several hundred million dollars of expenses
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Since 2012, we have eliminated several hundred million dollars of expenses Our SG&A as % of revenue has declined from ~39% Unallocated corporate expenses are linked to pro
Slide 6: Hestia's proposal for GEC is based on unrealistic assumptions
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Hestia’s proposal for GEC is based on unrealistic assumptions, contains inconsistencies and would be value-destructive 1 â–ª Hestia proposes shrinking its assumed GEC dome
Slide 7: Pitney Bowes' strategy remains the right strategy for GEC
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Pitney Bowes’ strategy remains the right strategy for GEC Hestia’s “Shrink GEC” strategy is flawed, value Our GEC strategy has been validated on several fronts destructive
Slide 8: Hestia's SendTech strategy replicates Stamps.com's historical business model
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Hestia’s SendTech strategy is based on replicating Stamps.com’s historical business model – which has since changed significantly with worse economics â–ª Referencing Stam
Slide 9: Significant investments in shipping labels and cloud-based online stamps
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance We have already made significant investments in our shipping labels and cloud-based online stamps markets, which are displaying strong growth • We have invested ~$600MM in
Slide 10: Hestia's Presort plan provides no specifics
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Hestia’s Presort plan provides no specifics 1 Hestia’s “Targeted investment” plan has no details on key focus areas or planned investment priorities apart from mention of
Slide 11: Hestia seeks to create a false urgency about our debt profile
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Hestia seeks to create a false urgency about our debt profile; in fact, our refinancings have carefully managed our maturities Hestia pushes a highly misleading analogy on
Slide 12: Hestia's leverage reduction plans have several inadequacies
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Hestia’s leverage reduction plans have several inadequacies and unrealistic timelines 1 2 3 1 Hestia’s Path A “improve operations” inadequacies 3 Hestia’s Path C “unlock b
Slide 13: Our Board has always protected and prioritized stockholders
“Pillar” 1: Costs “Pillar” 2: GEC “Pillar” 3: SendTech “Pillar” 4: Presort “Pillar” 5: Capital allocation “Pillar” 6: Governance Our Board has always protected and prioritized stockholders, as evidenced by our leading governance practices Our governance practices are better than or in line with the
Slide 14: PBI is transforming the business for sustainable growth and long-term value
PBI is transforming the business and positioning it for sustainable growth and long-term shareholder value ✓ Our Board and management had to undertake a significant transformation in the last 10 years to address structural business challenges ✓ At the time Marc Lautenbach was appointed CEO in Decemb
Slide 15: We urge you to support your Board by voting the GOLD proxy card today
We urge you to support your Board by voting the GOLD proxy card today “FOR” all Pitney Bowes nominees as well as Hestia nominee Katie May
Slide 16: Glossary
Glossary API Application Programming Interface B2C Business to Consumer CAGR Compounded Annual Growth Rate Capex Capital Expenditures EBIT Earnings Before Interest & Tax EBITDA Earnings Before Interest Tax Depreciation & Amortization GEC Global Ecommerce HR Human Resources ISS Institutional Sharehol