Energizer 2012 Annual Report Download - page 7

5
Energizer Holdings, Inc. 2012 Annual Report
Strong sales by both Schick Hydro® men’s and Schick Hydro Silk® drove a
6 percent increase in overall Schick Hydro® system net sales during 2012,
adding one point to our share of the branded razor and blade market.
BRANDED WET SHAVE U.S. MARKET SHARE
21%
Our two sun care
brands, Banana Boat®
and Hawaiian Tropic®,
combined lead the
U.S. sun care market.
that maximize their growth by meeting the specic
needs of their consumers.
A history of investing in growth
We entered the Wet Shave business in 2003 with our
acquisition of Schick Wilkinson Sword, which formed the
basis of our Personal Care segment. Since this acquisition,
we have quadrupled segment sales from $625 million in
2002 to $2.5 billion in 2012. e result is a set of busi-
nesses that provide more than half of our revenues and
segment earnings and continued opportunities for growth.
at expansion has come through both innovation-
driven organic growth and strategic acquisitions:
• In 2003, we launched Schick Intuition for women and
the Schick Quattro® family of products.
• Our 2008 acquisition of Playtex brought us leading
domestic and international brands, including Playtex,
Hawaiian Tropic® and Banana Boat®.
• Our 2009 acquisition of Edge®
shaving gels for men and
Skintimate® shaving products
for women added leading brands
in the U.S. shave preparation
category.
• Our 2010 initial launch of
Schick Hydro® created a
powerful new platform for
growth, and the ASR acquisition
in 2011 broadened our presence
and product portfolio in the
private-label razors and blades
category.
Investments in eciency
Our 2011 initiatives to rationalize and improve the
eciency of our battery operations were completed
on schedule and on budget. Major projects included
closing two production facilities – in Switzerland and
the Philippines – and streamlining our battery plant
in Missouri.
e project delivered a total of $34 million in annual
savings, toward the high end of our expectations.
Our focus on eciency also drives the working
capital management improvement program we initiated
early in the scal year. During scal 2012, we lowered
working capital as a percent of net sales to 21.4 percent,
from 22.9 percent in scal 2011, reducing average
net working capital by nearly $88 million. Overall, we
expect to reduce average working capital by more than
$200 million, and we are on track to realize the full
benets of our initiatives by the end of scal 2014.
In November 2012, in response to continuing long-
term declines in the battery category and an aggressive
competitive environment, our Board of Directors
authorized an enterprise-wide restructuring plan that
represents a signicant, and necessary, change to our
overall cost structure and organization. We anticipate
annualized, pre-tax savings will be approximately
$200 million and will be fully achieved by Fiscal 2015.
We expect to re-invest about 25 percent of these
savings in our brands and our robust innovation pipeline,
with the rest – approximately $150 million – falling to
the bottom line.
We believe these initiatives, combined with our
on-going commitment to improve total shareholder
returns, will create substantial value for shareholders,