Rayovac 2002 Annual Report Download - page 21

VARTA offers a full range of consumer batteries including, advanced alkaline,
rechargeable, zinc carbon and photo.
to our SHAREHOLDERS [continued]
Forging a Perfect Union
As we look to 2003, we are sharply focused on maximizing the value
of the VARTA acquisition. At the same time, we are keenly aware that the
success of our union is predicated on the need for our two companies to
become one. Based on the many similarities between the two organizations—
including our corporate styles, the way we go to market, the value we offer to retailers and the
complementary capabilities of our management teams—we are confident that we share a common platform
for growth. More importantly, we have similar attitudes toward our customers, service, cost control, product quality and
innovation. And we share a profound commitment to excellence, a culture of innovation and a performance-driven, entrepreneurial
spirit. For these reasons, we believe that our new alliance poses tremendous advantages as we look to the future.
As we integrate the two organizations, we will employ the best qualities of each in terms of people and business processes, and we will seek ways to
operate every aspect of our business more efficiently, from manufacturing to marketing, from finance to distribution. As a global company, we will be able to
leverage new opportunities to gain operating efficiencies. To ensure that we capture these efficiencies, we will undertake the largest restructuring in our history.
Though we anticipate that this effort will result in a charge to earnings, we expect that it will also yield $35–$40 million in savings by the end of fiscal 2005.
We will also consolidate Rayovac’s and VARTA’s existing European and Latin American businesses, thereby creating a strong market platform that was
nearly unimaginable a few years ago. In 1998, Rayovac was primarily a U.S. battery company; as we begin 2003, we are a global company with the majority of
our sales outside of the U.S. We are also the leading battery company in Germany, Europe’s largest battery market, as well as the number-two battery brand in
Europe. We are exceptionally well positioned to take advantage of the multiple opportunities we see in Europe to drive revenues, grow profit margins and
increase shareholder value. And with an even stronger position in Latin America, we are also poised to outperform the category in that region once local
economies improve.
True to Rayovac’s culture, we are very excited about these prospects—and highly confident that we will make the most of them. Capitalizing on new
opportunities has long been part of Rayovac’s business strategy and culture. Our corporate style is informal, team oriented and entrepreneurial. Our organiza-
tion is flat and unfettered by corporate bureaucracy. And our decision makers work seamlessly, with a sharp focus on results. These factors, combined with the
strength of our balance sheet, strongly position us to leverage the opportunities that will arise as we maximize the power of our synergistic union with VARTA.
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