Energizer 2013 Annual Report Download - page 9

PAGE 7
ENERGIZER HOLDINGS, INC. 2013 ANNUAL REPORT
The International Association of
Fire Chiefs honored Energizer with
its distinguished President’s Award
of Recognition at this year’s Fire-
Rescue International conference in
Chicago, in recognition of our 25-year
commitment to the national re safety
campaign, Change Your Clock Change
Your Battery®.
innovation and continued investment in our iconic brands, Energizer and Eveready.
We believe the focus on our core Household Products business will generate solid earnings
and improved working capital performance for the segment.
e Personal Care segment continues to be a source of growth. A pipeline of
innovation, brand-building investments and strategic acquisitions have provided the
foundation for long term growth. In scal 2013, sales of the Personal Care segment fell
short of our original expectations due primarily to a dicult competitive environment
and foreign currency headwinds. In addition, sun care performance was dampened by
unseasonably cool and wet weather in the U.S. Despite soft full-year volume performance,
Personal Care delivered fourth-quarter organic sales growth of nearly 3%. As noted
earlier, our Schick Hydro® franchise grew over 20% in scal 2013. In addition, our Schick
men’s systems share continued to exceed 10%, marking 28 consecutive months at or
above a 10% share. Of particular note, Schick Hydro Silk®, introduced to the women’s
market in the U.S. in February 2012, experienced a 34% rell rate, the highest rell rate
of all women’s systems launched in the last 10 years. We are continuing to roll out Schick
Hydro Silk to international markets. And, our most recent extension, Schick Hydro
Disposable, launched earlier this year, drove growth of nearly two share points for total
Schick® disposables. Despite the top-line challenges, Personal Care’s segment prot from
operations increased nearly 6%, as it also beneted from restructuring savings.
Looking Forward to Fiscal 2014
We are projecting adjusted net earnings per diluted share growth in the mid-single digits
to $7.25 to $7.50, with GAAP earnings per diluted share projected to be $6.30 to $6.70.
We believe this strong performance can be achieved in spite of the signicant headwinds
within our Household Products business and continued global economic challenges.
Our focus, objectives and priorities remain unchanged and are embedded within our
scal 2014 outlook:
• Investing in successful innovation across our portfolio, which will allow us to continue
to provide new products and solutions to our consumers and retail partners through
our global rollout of our innovation pipeline,
• Broadening our Personal Care product portfolio through the successful integration of
our recent acquisition,
• Optimizing our cost and operating structure by continuing to realize savings from our
2013 Restructuring Project, and
• Maximizing free cash ow through continued improvements in working capital.
e outstanding performance of Energizer Holdings in scal 2013 reects the
passion, dedication and eectiveness of our colleagues around the world. ey are clearly
the foundation upon which we will continue to grow and deliver shareholder value.
ENERGIZER NIGHT RACE FOR
A BRIGHTER WORLD
As participants race at night, with the
light of an Energizer® headlight to guide
them, they unite to raise awareness
for the global need for safe, affordable
solar light for more than 1 billion people
in the world living without electricity.
ENERGIZER®
Energizer® Ultimate Lithium AA and AAA
batteries are the world’s longest lasting
batteries in high tech devices – lasting
up to 9 times longer in high-drain digital
cameras versus Energizer® Max®, which
means 9 times less waste (use less
batteries, create less waste). Results
vary by camera.
Ward M. Klein
Chief Executive Ocer, Energizer Holdings, Inc.
November 21, 2013