Energizer 2012 Annual Report Download - page 16

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On November 23, 2010, Energizer acquired ASR, the leading global manufacturer of private label/value wet shaving razors
and blades, and industrial and specialty blades. In wet shave, ASR manufactures, distributes and sells a complete line of private
label / value wet shaving disposable razors, shaving systems and replacement blades. These wet shave products are sold
primarily under a retailer's store name or under value brand names such as Personna,Matrix,Magnum,Mystique,Solara and
GEM.
Household Products
Energizer's Household Products division manufactures and markets one of the most extensive product portfolios in
household batteries, specialty batteries and lighting products.
In household batteries, we offer batteries using carbon zinc, alkaline, rechargeable and lithium technologies. These products
are marketed and sold in the price, premium and performance segments. This allows us to penetrate a broad range of the market
and meet most consumer needs. In addition, Energizer has a portable lighting products business that has evolved with changes
in consumer tastes and demands. We distribute our portfolio of household and specialty batteries and portable lighting products
through a global distribution network, which also provides a platform for the distribution of our personal care products.
The battery category is highly competitive as brands compete for consumer acceptance and retail shelf space. Pricing actions
in response to rising material costs have raised retail prices over time. However, pricing actions are not always available to
fully offset material cost increases, especially in highly competitive markets.
We continually engage in ongoing reviews of all of our categories. Recent studies have indicated that an increasing number
of devices are using built-in rechargeable battery systems, particularly in developed markets. We believe this continues to
create a negative impact on the demand for primary batteries. This trend, coupled with aggressive competitive activity in the
U.S. and other markets, has and could continue to put additional pressure on segment results going forward.
2013 Restructuring Initiatives
On November 8, 2012, we announced that our Board of Directors approved a multi-year restructuring plan, which was
developed in connection with an assessment of our cost structure and operating model undertaken to improve cost
competitiveness and deliver enhanced financial returns. These actions are expected to reduce the global workforce by more
than 10%, or approximately 1,500 colleagues. We also expect to:
• rationalize and streamline operations facilities in the Household Products division,
• consolidate general and administrative functional support across the organization,
• streamline the Household Products division product portfolio to enable increased focus on the core battery business,
• streamline the marketing organization within the Household Products division,
• optimize the Company's go-to-market strategies and organization structures within our international markets,
• reduce overhead spending including changes to benefit programs and other targeted spending reductions, and
• create a center-led purchasing function to drive procurement savings.
Sources and Availability of Raw Materials
The principal raw materials used by Energizer - electrolytic manganese dioxide, zinc, silver, nickel, acetylene black,
graphite, steel cans, nylon, brass wire, separator paper, and potassium hydroxide, for batteries, and steel, zinc, various plastic
resins, synthetic rubber resins, soap based lubricants and various packaging materials, for wet shave products, and certain
naturally derived fibers, resin-based plastics and certain chemicals for the Playtex product lines, - are sourced on a regional or
global basis. Although the prices of zinc, nickel, electrolytic manganese dioxide, and resins, in particular, have fluctuated over
time, Energizer believes that adequate supplies of the raw materials required for its operations are available at the present time.
Energizer, of course, cannot predict the future availability or prices of such materials. These raw materials are generally
available from a number of different sources, and the prices of those raw materials are susceptible to currency fluctuations and
price fluctuations due to transportation, government regulations, price controls, economic climate, or other unforeseen
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