Rayovac 2003 Annual Report Download - page 5

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To Our Shareholders Over the last several years, Rayovac Corporation has aggressively
pursued its goal to become a technology-focused, market-driven, global battery company.
In fiscal 2003, our efforts paid off abundantly. We not only achieved our long-held objective,
but we set our sights on a bold new mission: to become a leading global consumer products
enterprise. During the past year, we engaged in a number of strategic measures geared to
help us realize our ambitious new vision. We:
• Completed the integration of the consumer battery business of Varta AG, which
we acquired in October 2002, by restructuring our global business and creating new
organizational efficiencies.
• Developed and launched a successful new U.S. alkaline battery retail strategy to
differentiate Rayovac from our competitors, while underscoring our traditional
value position with retailers and consumers.
• Reinforced our reputation for innovation by introducing a revolutionary new
round-cell rechargeable battery system that secures our position as the industry’s
technology leader.
• Acquired Remington Products Company, a leading designer and distributor of
battery-powered electric shavers and accessories, grooming products, and personal
care appliances. This acquisition diversified our product line and enhanced our
status with our customers as a global supplier. We financed the transaction through
an attractive and successful high-yield bond offering, an indication that investors
recognize the strength of our growing enterprise and our ability to generate cash.
These collective efforts provided us with a broader product portfolio, solidified our position
with global retail customers, enhanced our worldwide supply capabilities, fortified our
reputation for innovation and provided us with an expanded portfolio of powerful global
brands. They also positioned us to assume an exciting new place among some of the leading
consumer products companies in the world.
Transforming to a Global Consumer Products Company Rayovac’s largest retail
customers are expanding around the world and are seeking to partner with suppliers who
can serve their global needs. To respond to these demands, Rayovac has moved strategically
to make acquisitions, including Varta’s consumer battery business. Our October 2002
acquisition of Varta immediately positioned us as one of the largest consumer battery
and lighting companies in the world and the number two battery company in Europe.