Energizer 2007 Annual Report Download - page 10

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Energizer Holdings, Inc. 2007 Annual Report
Energizer Bunny®
Since it first debuted in 1989, the unstoppable Energizer Bunny®has
become a cultural icon representing the long-lasting dependability and
powerful performance consumers want in a battery. As one of advertis-
ing’s most recognizable symbols, the drum-beating Energizer Bunny®
is one of the Top 5 Advertising Icons of the 20th Century – and its
popularity and brand equity just keeps going and going.
Corporate Initiatives
Cost containment efforts. Throughout the year, we
continued our focus on continuous improvement
across our global manufacturing operations and reduc-
ing overhead throughout our business processes.
Our lean initiative, primarily in our battery busi-
ness, continues to deliver substantial cost savings
as we seek to eliminate non-added value activities.
In 2007, lean efforts resulted in improvements in
productivity and efficiency valued at over $25 million,
partly moderating the impact of raw material expenses
on product costs.
In our battery manufacturing facilities, for example,
lean has helped reduce the time needed to change over
a machine from making AAs to AAAs from nine hours
to just one hour. Applying lean savings to our U.S.
flashlight operations has allowed us to partially offset
higher material costs while at the same time reducing
product development time.
The reorganization and integration of our Euro-
pean operations has been completed and, as a result,
Energizer’s global organizational platform is stable and
poised for future growth. Since the acquisition of SWS
in 2003, we have consolidated back office and support
functions and integrated commercial management
organizations around the world, except in Japan and
North America.
Leadership changes. At the end of March 2007, Joe
Lynch retired as President of Schick-Wilkinson Sword,
having been instrumental in the successful integration
of the Schick business and in guiding recent product
launches, particularly within the Quattro®and Intu-
ition®franchises. David Hatfield, a nearly 20-year
company veteran and most recently Executive Vice
President and Chief Marketing Officer, was selected
to succeed him. David brings exceptional marketing
expertise and leadership continuity as he oversees
the integration of Playtex and formation of the new
Personal Care Division.
Also during the year, Bill Stiritz was appointed
Chairman Emeritus of the Board, having provided
effective leadership and oversight as Chairman of the
Board since the company’s spin-off in 2000. He contin-
ues to contribute and serve as a member of the Board
and chairperson of the Finance and Oversight Com-
mittee. Pat Mulcahy, the company’s Chief Executive
Officer from the spin-off until January 2005 and the
Vice Chairman of the Board since then, was appointed
Chairman of the Board. He brings a continuity of
leadership, intimate knowledge of the company and
vast experience in the battery industry.
What Do We See Going Forward?
We are excited about the future. We look forward
to collaborating with our new colleagues within our
team-oriented culture and broadening our portfolio
of world-class brands with an array of well-known
consumer products. We are passionate about building
on our global momentum with product innovation
and the delivery of solutions to consumers better than
anyone else.
Ward M. Klein
Chief Executive Officer
Energizer Holdings, Inc.
November 16, 2007