Energizer 2008 Annual Report Download - page 4

2 ENERGIZER HOLDINGS, INC. 2008 Annual Report
ENERGIZER TRANSFORMED
Energizer continues to evolve, growing from a $1.7 billion battery company to a $4.3 billion diversified
consumer products company with the acquisition of SWS in 2003 and Playtex in 2007. Our diluted earnings
per share has climbed from $1.88 in fiscal 2000 to $5.59 in fiscal 2008. Where we operated in a single
category, we now compete in five major product categories – and within those categories, we hold the
No. 1 or No. 2 U.S. market share position in 12 distinct sub-categories. Comprised of strong brands and
competitive market positions, our businesses share similar customers and distribution channels.
Energizer has been dramatically and materially transformed – since our 2000 spin-off, as well as from
just 12 months ago. Today, our two-division organizational structure gives us a new, more efficient platform
for growth and enables us to focus on exploring and executing innovations across more categories than
ever before.
INTEGRATION OF PLAYTEX
Playtex Products became part of Energizer on October 1, 2007, and throughout the fiscal year, we worked
diligently to forge the new Personal Care Division, effectively bringing together the SWS and Playtex
organizations. During the year, we integrated various Playtex corporate functions including information
technology, human resources, accounting and legal, eliminating duplicate activities and reducing overall
headcount. In addition, we consolidated sales and sales support under a Personal Care sales force
structure, moving the new group into a common office facility, and grafted Playtex’s order-to-cash, logistics
and distribution activities onto the Energizer Holdings platform. By fiscal 2008 year-end, the integration was
substantially complete, and we achieved synergies of approximately $14 million, net of integration costs,
for the year. We estimate that we will realize $57 million of synergies in fiscal 2009 and ultimately expect to
achieve approximately $70 million annually.
Much more than simply a cost-cutting exercise, the integrated organization gives us a greater footprint
in customers’ stores and consumers’ homes, plus opportunities to improve our go-to-market efficiencies
and effectiveness. The combined Personal Care business has achieved critical mass in North America,
going from just over $400 million in sales to more than $1.1 billion, while delivering significant economies of
scale. And with over 90 percent of Playtex sales generated in North America, we remain enthusiastic about
opportunities to strategically expand the Playtex product line internationally through our existing global
distribution and commercial structure.
OPERATIONAL PERFORMANCE
The Household Products Division, consisting of our battery and lighting products businesses, accounted for
57 percent of company sales and 60 percent of profits in fiscal 2008. The Personal Care Division, including
our wet shave, skin care, feminine care and infant care segments, contributed 43 percent of sales and
Stock Price Performance
Comparison of Cumulative Total Return on
$100 invested in Energizer Holdings, Inc. on
September 30, 2003, versus the S&P 400
and the S&P Household Products indices
through September 30, 2008, including
reinvestment of dividends.
Energizer Holdings, Inc.
S&P MidCap 400
S&P Household Products
$400
$300
$200
$100
$0
SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08