Rayovac 2002 Annual Report Download - page 9

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Indeed, we have already realized the worldwide component of our goal, as the transaction has given Rayovac an expanded footprint that includes sales
and distribution capabilities in 115 countries. We now have relationships with nine of the top 10 global retailers: Wal★Mart, Target, Home Depot, Kmart,
Sears, Kroger, Ahold, Carrefour, and Tesco. Fifty-four percent of our sales take place outside of North America. Sixty percent of our employees are based in
countries other than the U.S. In short, in an age when fast-growing global retailers are seeking partnerships with suppliers that can meet their demands world-
wide, Rayovac is positioned to be a partner of choice.
Moreover, the VARTA transaction has affected the entire global consumer battery industry. In one bold move, it has reshaped the competitive landscape
by making Rayovac one of the largest consumer battery and lighting products companies in the world. It has also equipped us with the resources we need
to capture a greater global market share, including a deeper management team, a strong new global brand, nearly $1 billion in annual sales, a rich product
portfolio, a solid customer service platform, and advanced new manufacturing and distribution capabilities to serve the needs of our global retail customers.
Our union with VARTA truly framed fiscal 2002 for Rayovac, making it a watershed year in our Company’s history. However, it was not, by any means,
our sole accomplishment. We also posted a number of technological and marketing achievements that furthered our industry standing and positioned Rayovac
to be an even more powerful enterprise in the years to come.
Introducing Cutting-Edge Technology
Over the last two years, we have introduced several innovative technologies that have positioned Rayovac as the undisputed leader in a number of
product categories. For example, in 2001, we launched the world’s first one-hour Nickel Metal Hydride (NiMH) charger, as well as long-lasting, high-capacity
NiMH batteries. These products enabled us to retain more than a 60 percent share of the U.S. rechargeables market and solidified our position as the nation’s
top-selling rechargeable brand.
In fiscal 2002, we built on these technological innovations by inventing the revolutionary new In-Cell Charge Control (I-C3娃) rechargeable NiMH
battery system, which is slated for commercial rollout in the fall of 2003. This new battery technology places charging control in the battery instead of in
the charger, allowing for dramatically reduced battery charge time and significant performance and convenience improvements over existing rechargeable
and single-use battery systems. The I-C3rechargeable battery can be charged in as little as 15 minutes or less, up to 1,000 times. These compelling product
attributes uniquely position the I-C3to win a sizable share of the consumer rechargeable battery market. The I-C3system is expected to hold particular
appeal for original equipment manufacturers (OEMs) and consumers of high-tech electronic devices, household appliances and products that employ
emerging technologies.
to our SHAREHOLDERS [continued]
2
3
“The VARTA acquisition provides Rayovac with
the resources we need to capture a greater global
market share.
”