Energizer 2010 Annual Report Download - page 4

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To Our Shareholders
Fiscal 2010 was a year of notable accomplishments.
First, our commitment to financial and strategic
discipline enabled us to deliver solid gains in sales,
earnings and cash flow while strengthening our
balance sheet by growing cash and reducing net
debt. This performance was particularly gratifying in
the wake of the difficult year we faced in 2009 and the
continuing challenges of the economic environment.
Second, we demonstrated our ongoing
commitment to innovation with the
introduction of significant new products,
specifically the Schick Hydro® shaving
system, a product that is redefining the wet
shave market. Schick Hydro is an impor-
tant new growth platform for us, and we
are very pleased with its initial acceptance.
Finally, fiscal 2010 marked our tenth
year as a public company. Over that period,
our revenues have more than doubled,
from nearly $2 billion in 2000 to more than
$4.2 billion in 2010, a compound annual
growth rate of over 8%. And since our
spin-off in 2000, earnings per share
increased at a compound annual growth
rate of 12%.
And that performance has been
recognized by the market: $100 invested
in our stock when we started trading in
March of 2000 was worth more than $280
at the end of our 2010 fiscal year. Over
that same period, an investment in the
Dow Jones Industrial Average would have
had only a 2% annual return while an
investment in the S&P 500 Index would
have lost money.
The Power Behind the Brand
Insight, discipline and innovation have
resulted in a full and diversified portfolio
of powerful brands and have been central
to our profound transformation in our 10
years as a public company. Most recently,
the strength of our brands has enabled
us to not simply weather the recent
economic downturn but emerge as a
stronger company, with important new
and strengthened growth platforms and
a solid balance sheet.
As a battery company in 2000, we
participated in basically two categories;
batteries and flashlights, where we tended
to be the number two player. Today, we
have become a diversified consumer goods
company with a balanced portfolio and
first or second share positions in 12
market segments in the U.S.
With commercial and production
operations in 50 countries from which
we market and sell to more than 160
countries, our battery business has always
had a strong global presence. Our
combination of leading brands with strong
manufacturing and sales organizations
fuels our current performance and
provides important growth opportunities.
Energizer Holdings’ transformation
began in 2003 with our purchase of Schick
Wilkinson Sword, which became our
Personal Care segment. Schick Wilkinson
diversified us beyond batteries, solidly
positioning us in the attractive wet shave
market and opening up additional
opportunities for growth.
We moved quickly to seize those
opportunities with innovation and
Ward M. Klein, Chief Executive Officer
2010 Fiscal Year End
Sales
Household Products
Personal Care
52% 48%
Profit
Household Products
Personal Care
55% 45%
S E G M E N T B R E A K D O W N
2
EN ER GI ZE R HO LD IN GS , IN C. 2010 A NN UA L RE PO RT