Energizer 2002 Annual Report Download - page 5

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3. Reducing global overhead. As part of our restruc-
turing plans, we also reduced and realigned
certain selling, production, research and adminis-
trative functions. These activities helped improve
operating efficiencies, downsize and centralize
corporate functions and decrease costs. At mid
year, we adopted a plan to restructure our
European organization.
Throughout the year, management has focused on
removing costs from our operations and increasing
efficiency. These efforts continue to deliver results.
4. Reinvest part of the savings to strengthen the
Energizer consumer franchise through increased
advertising. Last year, we shifted from promotion
to advertising as a better medium to build franchise
strength, and we increased advertising in selected
markets where the return on investment was great-
est. While our total advertising spending was down
slightly year-over-year, we actually bought more
advertising with fewer dollars due to reduced ad
placement costs.
Going forward, the pressures and challenges in
our industry remain. We face intense competition
from world-class companies with vast resources,
such as Gillette and Panasonic. We partner with
retail customers that exert growing influence over
our relationship.
Despite today’s challenging business environment,
Energizer is well positioned to prosper. Our portfolio
of products is the most comprehensive in the world.
Our global sales, marketing and distribution resources
rival those of major soft drink and tobacco compa-
nies. We have strong cash flows and low debt,
giving us alternatives for continued growth.
Our senior management team has collective industry
experience that greatly exceeds that of our primary
competitors. As shareholders, they all share a com-
mon goal to improve the business, drive earnings
per share and create shareholder value.
In our continued pursuit of excellence, our mantra is
“do the right thing.”We pledge to do the right thing for
our shareholders, our employees and our community.
J. Patrick Mulcahy
Chief Executive Officer
Energizer Holdings, Inc.
November 20, 2002
J. Patrick Mulcahy, Chief Executive Officer
Page 3 ENR 2002 Annual Report