Toro 2009 Annual Report Download - page 6

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R&D Spending
(as percent of total sales)
05 06 07 08 09
4%
3
2
1
3.5%
Revenue by Market
Residential 35%
Other 2%
International Revenue
(as percent of total sales)
05 06 07 08 09
35%
28
21
14
7
32.0%
Professional 63%
฀฀
& Grounds 31%
฀awn & Garden 30%
฀฀26%
฀rrigation 6%
฀ow 5%
Looking Ahead
As we look at our end markets, we remain encouraged
by several trends that we expect will fuel growth in the
years ahead. International markets hold great promise
as world economies begin to emerge from recession
into recovery. Another positive long-term infl uence is
the recent inclusion of golf and rugby in the 2016
Olympic Games, which should bode well for our industry
as countries prepare to compete in these turf-based
sports. Additionally, water management remains a
critical concern as customers around the world intensify
their focus on conserving water as they battle shortages
and higher usage costs.
As we pursue these and other opportunities, you can
rest assured that our commitment to innovation will
not waver. We’ve seen fi rsthand the benefi ts of these
investments in a challenging economy and expect even
stronger results as our markets improve. Adding to the
momentum generated from our 2009 product lineup,
we have even more innovative new offerings poised
to launch in fi scal 2010 that are expected to drive
demand and compete for our customers’ business.
In closing, we acknowledge there is still much uncertainty
as to the pace and degree of the economic recovery.
While it will not be an easy road, we remain confi dent
due to the actions we have taken and to the fact that
“we stuck to our values.” We proved we can manage
through extremely challenging times with solid execution
against a clear set of priorities. I can assure you that we
are more disciplined and focused than ever before and
motivated to pursue new growth opportunities — both
organically and through acquisition.
At the heart of our continued success is an engaged
and focused team of employees committed to caring
for customers and building long-term relationships
based on integrity and trust. I’m pleased with what our
people have accomplished under the most diffi cult
of circumstances and am inspired by their strength
and fortitude. Built on the solid foundation of unwavering
cultural values, The Toro Company looks to the future
with confi dence and eager to capitalize on the
opportunities that lie ahead.
Thank you for your continued interest in The Toro
Company. We value your support.
Sincerely,
Michael J. Hoffman
Chairman and CEO