Energizer 2012 Annual Report Download - page 41

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ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of
any such forward-looking statements. The list of factors above is illustrative, but by no means exhaustive. The risk factors set
forth in our Annual Report on Form 10-K, in the section entitled "Risk Factors," could affect future results, causing our results
to differ materially from those expressed in our forward-looking statements.
All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Additional risks and
uncertainties include those detailed from time to time in Energizer’s publicly filed documents.
Non-GAAP Financial Measures
While Energizer Holdings, Inc. reports financial results in accordance with accounting principles generally accepted in the U.S.
("GAAP"), this discussion includes certain non-GAAP financial measures. These non-GAAP measures, such as, but not
limited to, historic and estimated future operating results, working capital as a percent of net sales, free cash flow, changes in
organic net sales, segment profit and operating results, as adjusted to exclude the impact of certain charges and recoveries, such
as the impact of changes in foreign currencies, the results of operations in Venezuela, the acquisition of American Safety Razor
(ASR) and the related integration and transaction costs, the costs associated with restructuring and other realignment activities
and refinancing costs. The Company believes these non-GAAP measures (which are accompanied by reconciliations to the
comparable GAAP measures) provide a meaningful comparison to the corresponding reported period and assist investors in
performing analysis. Investors should consider non-GAAP measures in addition to, not as a substitute for, or superior to, the
comparable GAAP measures. Further, these non-GAAP measures may differ from similarly titled measures presented by other
companies.
Company Overview
General
Energizer Holdings, Inc., incorporated in Missouri in 1999, is one of the world’s largest manufacturers and marketers of
primary batteries, portable lighting and personal care products in the wet shave, skin care, feminine care and infant care
categories. On April 1, 2000, all of the outstanding shares of common stock of Energizer were distributed in a tax-free spin-off
to shareholders of Ralston Purina Company. The Company employed approximately 14,600 colleagues globally at September
30, 2012 and had fiscal 2012 net sales of approximately $4.6 billion. The Company manufactures and/or packages product in
more than a dozen countries and sells products throughout the world.
Operations for the Company are managed via two segments - Personal Care (Wet Shave, Skin Care, Feminine Care and Infant
Care Products) and Household Products (Battery and Portable Lighting Products).
The Company's two divisions have distinct priorities to enhance the combined enterprise and deliver strategic objectives.
Personal Care is focused on maximizing sales and profit growth through innovation, product line extensions and share gains.
Household Products is focused on stabilizing profitability in a challenging and declining battery category to deliver strong cash
flows from our core battery and portable lights portfolio, while making select investments that provide near-term returns. Both
divisions are targeting improved working capital management as a key business objective.
Personal Care includes Wet Shave products sold under the Schick,Wilkinson Sword,Edge,Skintimate and Personna brand
names as well as value-priced private label razors, Skin Care products sold under the Banana Boat,Hawaiian Tropic,Wet Ones
and Playtex brand names, Feminine Care products sold under the Playtex brand name and Infant Care products sold under the
Playtex and Diaper Genie brand names.
We manufacture and distribute Schick and Wilkinson Sword razor systems (SWS), composed of razor handles and refillable
blades, and disposable shave products for men and women. SWS's primary markets are the U.S., Japan and the larger countries
of Western Europe. We believe SWS holds the #2 global market share position in wet shaving. We also believe that Edge and
Skintimate, which are part of our wet shave portfolio, are U.S. market leading brands in shave preparation products, including
shaving gels and creams.
In Skin Care, we market sun care products under the Banana Boat and Hawaiian Tropic brands. We believe these brands, on a
combined basis, hold a leading market share position in the U.S. sun care category, and we have experienced meaningful
growth in these product lines in markets outside the U.S. over the last several years. The sun care category varies by geographic
region, but generally is segmented by product type such as general protection, tanning and babies; as well as by method of
application such as lotions and sprays. We compete across this full spectrum of sun care products. Also in Skin Care, we offer
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