Ace Hardware 2010 Annual Report Download - page 3

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1
Ace Hardware Corporation, founded in 1924 in Chicago, has
successfully weathered many challenges over the years because
the company is built on a strong foundation that focuses on
service to our shareholders/retailers, quality products, and
dedicated team members. In 2010, Ace continued to build on
this strong foundation, working to ensure the success of our
company in the future.
In 2010, Ace focused on growth and improvement by
strengthening our supply chain and financial systems through
the phased implementation of SAP, a world-class business
management software. We are confident that the increased
operating efficiencies and improved controls will benefit the
company and our retailers for many years.
Another focus for us this year was the addition of several exciting
merchandising programs and partnerships with two of the best
brands in the United States, Craftsman®tools and Benjamin
Moore®Paints. These programs are described in the following
pages. The ability to create these relationships illustrates the
strength of the Ace brand, one of the oldest and most
recognized brands in the world.
FINANCIAL RESULTS MEET PLAN
Every year, Ace management sets a plan for the following year
based on economic conditions and company initiatives. The
result of this plan is our expected profit, upon which our retailers’
annual patronage rebates are based. We are happy to report that
we hit our numbers in 2010.
The Ace board of directors approved capping our shareholders’
maximum stock requirement at 18 percent. They also approved
increasing the cash portion of the patronage dividend payout
from 35 percent to 40 percent for the 2010 fiscal year, which is
paid in 2011, a year earlier than planned.
BUILDING FOR THE FUTURE
Ace has been a solid performer for many years. We continue
to pay patronage to our members, serve our retailers with an
efficient distribution system and low-cost products, provide
quality products to our consumers, and employ dedicated and
hard-working team members. We also continue to win national
and international awards and recognition.
We have the systems, processes, financial strength and people
in place to continue to do so well into the future.
David Ziegler Ray A. Griffith
Chairman of the Board President and CEO
BUILDING ON OUR STRONG FOUNDATION
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