Sara Lee 2011 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2011 Sara Lee annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 124

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124

2 Sara Lee Corporation
Unlocking shareholder value
March 2009 Announcement of strategic
review of Household and Body Care
February 2010 Announcement of $2.5 –
$3.0 billion share repurchase program
July 2010 Air Care sale closes
November 2010 Agreement to sell
North American Fresh Bakery; Acquisition
of Café Damasco in Brazil
December 2010 Body Care sale closes
January 2011 Announcement of
spin-off into two pure play companies
and intent to declare a $3.00 per share
special dividend
April 2011 Shoe Care sale closes
May 2011 Acquisition of Aidells
Sausage Company and announcement of
strategic review of International Bakery
and North American Refrigerated Dough
August 2011 Agreement to sell
North American Refrigerated Dough
THE PURE PLAY STRATEGY
Sara Lee has been on a journey, making
changes to the composition of our portfolio.
Each step is focused on creating and unlock-
ing shareholder value and streamlining our
operations. The spin-off of our International
Coffee & Tea business, creating two inde-
pendent entities, is the next logical step for
our shareholders, customers, consumers
and employees.
Benefits of pure play companies The term
“pure play” is frequently used to describe an
entity that focuses on one line of business
and whose products are closely related. This
single focus provides various benefits that
often translate into greater shareholder value.
Pure play companies offer the opportunity
to streamline operating structures and
reduce layers. This provides management
closer access to their end markets, which
improves decision making and can ultimately
lead to superior business performance.
Streamlined operations also provide cost
advantages. Pure plays can be unburdened
by the bureaucratic processes that weigh
down large entities and can bloat cost struc-
tures. Improved speed to market is another
advantage, as pure play companies are often
able to rapidly introduce new products and
more quickly react to changes in the market-
place. Due to their focus, pure plays often
find more opportunities for strategic partner-
ships or acquisitions that are not possible for
larger conglomerates. Additionally, pure play
companies are often preferable investment
vehicles because they more easily allow indi-
vidual investors to diversify their portfolio
according to their own preferences. The
combination of these benefits often drives
superior performance for pure play entities.
At Sara Lee, our most important
commitment is to maximize value for our
shareholders. The minimal overlap between
our two remaining businesses, coupled with
the benefits of the pure play structure, were
the key factors that drove the decision to
create two independent, pure play companies
for our shareholders.