Kodak 2000 Annual Report Download - page 29

2000 was, in re t rospect, a year that kept the investment analysts
and economic pundits working overtime.
Last year, the U.S. economy was red hot, and the so-called
“new economy” was even hotter. To d a y, as you scan the business
headlines, the key word is “slump”…consumer confidence is in a
blue funk…and the NASDAQ couldn’t get much flatter.
The question for investors now becomes, “Where do you
invest your money after the bubble bursts?”
Let me suggest three possible answers. First, it makes
sense, now more than ever, to invest in strong brands. Because
when times are tighter, consumers are less inclined to risk their
money on a new or unknown name.
Second, invest in products and services that offer high sat-
isfaction at a low price. In other words, value-for-the-money is king.
T h i rd, it might be wise to seek companies that are adept at
generating cash. Those are the firms that will continue to invest
in themselves and prepare for growth, regardless of the economy.
And that, as you might have already surmised, brings us
straight to Kodak. However, if a great brand and a great balance
sheet are not s ufficiently compelling, there is something else
investors should consider: this is a very smart time to be in the
p i c t u re business.
P i c t u re-taking is now at an all-time high worldwide. Amateur
photographers took more than 80 billion snapshots last year, a
new re c o rd. They ord e red more than 100 billion prints, another
milestone for the industry.
In the health imaging category (our second largest busi-
ness), more re c o rds were shattered. Healthcare pro f e s s i o n a l s
last year ord e red more than 1.5 billion Kodak radiological images.
For the past century, our business has been all about
making it simpler for people to capture better images, first with
film, and more re c e n t l y, with digital technology. And, as we
continue to make film and digital photography more accessible,
p i c t u re-taking will continue to gro w.
To d a y, though, image capture is only half the story. The re a l
g rowth in our business will accrue to those who give people new
and better ways to u s e their pictures.
Take, for example, the world of opportunity that has opened
on the Internet. Last year, more than $45 billion worth of pro d u c t s
and services were sold on the Web — with the help of more than
one billion online images. And 75% of those images are touched
by Kodak technology.
The explosion of technologies that drive picture usage is
fueling a whole new industry. Specifically, the fusion of inform a-
tion technology and image science has given rise to i n f o i m a g i n g .
The dozen new Kodak products and services arrayed
a c ross the preceding pages offer just a small glimpse into how
To Our Share h o l d e r s
Charles S . Brown and Patricia A. Bitnar (left and center)
received the 2000 Kodak “CEO Diversity Aw a rd” for exemplifying
s t rong leadership in fostering a work environment that re s p e c t s
and values all individuals.
In 2000, May Snowden (right) was appointed Kodak’s Chief
Diversity Off i c e r, a newly created position for the company. For the
complete 2000 Divers ity Report, see page 66.