Kodak 2008 Annual Report Download - page 6

4
PART I
ITEM 1. BUSINESS
Eastman Kodak Company (the “Company” or “Kodak”) is the world’s foremost imaging innovator, providing imaging technology
products and services to the photographic and graphic communications markets. When used in this report, unless otherwise
indicated, “we,” “our,” “us,” the “Company” and “Kodak” refer to Eastman Kodak Company. The Company’s products span:
• Digital cameras and accessories
• Consumer inkjet printers and media
• Digital picture frames
• Retail printing kiosks, APEX drylab systems and related media
• KODAK Gallery online imaging services
• Prepress equipment and consumables
• Workflow software for commercial printing
• Electrophotographic equipment and consumables
• Commercial inkjet printing systems
• Document scanners
• Origination and print films for the entertainment industry
• Consumer and professional photographic film
• Photographic paper and processing chemicals
• Wholesale photofinishing services
Kodak was founded by George Eastman in 1880 and incorporated in 1901 in the State of New Jersey. The Company is
headquartered in Rochester, New York.
Through mid-2008, Kodak had created significant momentum in its digital portfolio, following the completion of its four-year corporate
restructuring program in 2007. Revenues from digital businesses grew by double-digits for four consecutive quarters from the third
quarter of 2007 through the second quarter of 2008. The revenue decline in the traditional businesses was in line with the
Company’s expectations. The Company had a successful showing of its stream technology at the drupa tradeshow in Düsseldorf,
Germany in May, and received positive customer responses for its newly introduced Adaptive Picture Exchange (APEX) dry labs and
next generation of consumer inkjet printers.
As the Company entered the second half of 2008, the global recession broadened dramatically and began to negatively impact all of
its businesses. As a result, the Company formulated the actions necessary to align the business with the external realities. The
Company has decided to focus its investments on businesses at the core of its strategy, which are Consumer Inkjet, Commercial
Inkjet (including stream technology) and Enterprise workflow. The Company has to make pragmatic decisions, rationalize its product
portfolio, and focus its resources on those core opportunities. The Company will continue to build upon the stable, cash generating
businesses, and reposition other digital businesses, including Kodak Gallery, OLED, Imaging Sensors and Electrophotographic
Printing to generate maximum value.
The Company’s key priorities for 2009 are:
• Align the Company’s cost structure with external economic realities
• Fund core investments
• Transform portions of its product portfolio
• Drive positive cash flow before dividends and restructuring
The Company expects the weak economic climate will continue well into the year, which will lead to reductions in revenue during
2009 as compared with 2008. However, the Company has maintained or improved its market position in key product categories.
These improved product market positions, its people, and the strength of the Company’s brand and financial position will allow the
Company to emerge from this challenging period as a leaner, stronger competitor.