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Global Batteries & Appliances
Fiscal Year
2013 2012
Net sales to external customers ................................................. $2,204 $2,250
Segment profit .............................................................. $ 238 $ 244
Segment profit as a % of net sales .............................................. 10.8% 10.9%
Segment Adjusted EBITDA ................................................... $ 304 $ 307
Assets as of September 30 ..................................................... $2,361 $2,243
Segment net sales to external customers in Fiscal 2013 decreased $46 million to $2,204 million from
$2,250 million during Fiscal 2012, a 2% decrease, driven by a $27 million decrease in small appliance sales,
$14 million of negative foreign exchange impacts, a $9 million decrease in global consumer battery sales and a
$1 million decrease in electric shaving and grooming sales. These declines were partially offset by an increase of
$5 million in electric personal care sales. The decline in small appliance sales was predominately driven by North
American sales declines of $45 million, partially offset by European sales gains of $17 million. The decrease in
North American sales was driven by management initiatives to exit low margin products, driving an overall
increase in profitability as a percentage of net sales for the product category. Gains in European small appliance
sales were driven by increased market share in the United Kingdom, regional expansion in Eastern and Western
Europe and successful new product lines. The declines in global consumer battery sales of $9 million resulted
from the non-recurrence of promotions, inventory management at key vendors and the timing of holiday
shipments, tempered by new customer listings and expansion into new channels. The slight decrease in electric
shaving and grooming sales was due to an $11 million decrease in North American sales, tempered by a
$10 million increase in European sales. The decline in North American shaving and grooming product sales was
attributable to labor disruptions at U.S. ports of entry during the peak holiday period, coupled with decreased
retail space available for the product category at a major customer and retailer inventory management. Gains in
the electric shaving and grooming product category in Europe were driven by successful new product launches
and promotions, market growth, increased distributions and customer gains. Electric personal care product sales
increased $5 million in Fiscal 2013 compared to Fiscal 2012, due to an increase of $8 million in Europe driven
by innovative new product launches coupled with distribution and customer gains, partially offset by a sales
decline of $3 million in Latin America. Latin American sales declines were attributable to the non-recurrence of
Fiscal 2012 promotions and lower sales to customers who export to Venezuela, partially offset by distribution
gains in Brazil and Central America.
Segment profit in Fiscal 2013 decreased to $238 million from $244 million in Fiscal 2012, primarily
attributable to unfavorable product mix and pricing pressures in the U.S, coupled with the decrease in sales
discussed above. Segment profitability as a percentage of net sales decreased slightly to 10.8% in Fiscal 2013
versus 10.9% in Fiscal 2012, driven by unfavorable mix and pricing pressures in the U.S., which offset gains
from the exit of low margin products in the small appliances category.
Segment Adjusted EBITDA in Fiscal 2013 decreased to $304 million from $307 million in Fiscal 2012. The
decrease in segment Adjusted EBITDA was driven by the factors discussed above for the decline in segment
profit.
Segment assets at September 30, 2013 increased to $2,361 million from $2,243 million at September 30,
2012. The increase is primarily due to the acquisition of Shaser. Goodwill and intangible assets, which are a
direct result of the revaluation impacts of fresh-start reporting which occurred during the year ended
September 30, 2009 (“Fiscal 2009”) and acquisitions, increased to $1,322 million at September 30, 2013 from
$1,261 million at September 30, 2012, primarily due to the acquisition of Shaser.
48