Rayovac 2011 Annual Report Download - page 5

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David R. Lumley
Chief ExecuƟ ve Oĸ cer
December 15, 2011
“Spectrum Brands’
time is truly now.
Fiscal 2012 is expected to be
yet another year of measured
growth and additional
value creation.”
be
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e
d
a revoluƟ onary, light-based hair removal
system cleared by the U.S. Food and Drug
AdministraƟ on and dermatologist-recom-
mended for providing professional quality re-
sults at home. There are many other innovaƟ ve
products to point to across our other divisions.
We are making good progress on largely oī seƫ ng
signifi cant commodity and Asian-sourced product
cost increases. We focus on conƟ nuous improvement
programs, restructuring and integraƟ on cost synergies
programs, retail distribuƟ on gains, and select pricing
acƟ ons. In addiƟ on, stringent cost control programs
remain in place, along with addiƟ onal cost reducƟ on
iniƟ aƟ ves, to maintain an operaƟ ng structure aligned
with today’s market condiƟ ons.
Your Board of Directors and senior management
team are commiƩ ed to a high level of accountability
to our shareholders through management incenƟ ve
compensaƟ on programs based on performance and
aligned with investors’ prioriƟ es. A balance of long-
term and short-term compensaƟ on programs for our
top leadership team provides appropriate rewards for
performance against specifi c metrics, predominantly
adjusted EBITDA and free cash fl ow targets.
This leƩ er aī ords me the opportunity to once again
thank our dedicated Board of Directors for their
ongoing guidance and commitment. And, to our near-
ly 6,000 talented employees around the world, your
enthusiasm and producƟ vity is much appreciated.
Spectrum Brands’ Ɵ me is truly now. Fiscal 2012 is ex-
pected to be yet another year of measured growth
and addiƟ onal value creaƟ on. We see a conƟ nuance of
acceleraƟ ng sales, EBITDA and free cash fl ow in 2012
from a blend of organic growth and accreƟ ve, bolt-on
acquisiƟ ons, and a conƟ nued emphasis on debt re-
ducƟ on and balance sheet deleveraging. As the global
value proposiƟ on leader in our space, Spectrum Brands
will conƟ nue to move forward to invest in our business,
reduce our cost structure, launch new products and
enter new categories, grow EBITDA and provide strong
free cash fl ow generaƟ on.
We will stay the course, always looking to accelerate
the pace when and where we can. We are winning in
a diĸ cult global economic climate. We will follow our
plan, we will execute our vision, and we will achieve
our goals. Spectrum Brands now has the resources, the
business models, and the market and product opportu-
niƟ es to drive a rewarding and prosperous future and
greater value creaƟ on for our stakeholders.
These are exciƟ ng Ɵ mes for our Company. We are grate-
ful for your support and hope you will conƟ nue to share
our enthusiasm for the future of Spectrum Brands.
Sincerely,