content_image/103504.jpg
<img src='content_image/103504.jpg'>

## TELEVISION ADS SOAR 

AN UNPRECEDENTED $100 MILLION GLOBAL MARKETING PROGRAM – INCLUDING NETWORK TELEVISION SPOTS – IS SUPPORTING THE LAUNCH AND ROLLOUT OF ENERGIZER ® e $^{2$_{TM}$}$. 

Flashlights The third product line – flashlights and other lighting products – accounts for 7 percent of net sales. Since inventing the first flashlight over a century ago, Energizer has extended its leadership to become the world’s largest producer of portable lighting products. Flashlight manufacturing allows us to bring our customers a complete product portfolio, while also contributing to profitability by creating devices powered by over 150 million primary battery cells annually. 

We are aggressively supporting these product launches and brands with increased levels of advertising and promotion including national television, major marketing events and consumer-driven promotions. The Energizer ® e 2 TM launch is being supported by an unprecedented $100 million global marketing campaign. In mid-September, we rolled out the latest round of parody advertising featuring the popular Energizer Bunny ® . Since it first debuted 11 years ago, the unstoppable Energizer Bunny has become a consumer favorite and was recently named one of the Top 10 Advertising Icons of the Century by Advertising Age ® magazine. 

## GLOBAL MARKETS 

Energizer markets batteries and lighting products in over 140 countries, with strong share positions in nearly every major market. 

The company’s operations are managed in four major geographic areas, with North America and Asia Pacific combining for 79 percent of sales and 97 percent of operating profit in 2000. 

North America The North American market, including the United States and Canada, accounted for 59 percent of the company’s global sales for fiscal 2000. Boosted by the Energizer e 2 launch, sales increased 8 percent and operating profit rose 7 percent. Higher sales volume resulted from Y2K-driven demand early in the year coupled with incremental Energizer e 2 sales during the last four months. In the United States, Energizer’s alkaline market share at retail increased 1.7 share points to 32.9 percent as measured by A.C. Nielsen for the 52-week period ending September 30, 2000. 

Asia Pacific The Asia Pacific market, accounting for 20 percent of global sales, achieved gains of 2 percent in sales and 25 percent in operating profit for fiscal 2000. Sales increases from higher alkaline volume were partially offset by currency devaluations. We successfully launched Energizer e 2 in Australia and New Zealand during the year and will roll out the product into more Asian markets as production capacity permits. 

Europe Accounting for 14 percent of global sales, the European market suffered a 14 percent decrease in sales, while operating profit improved to a slight loss. Decreased sales resulted primarily from the impact of currency devaluations and a decline in carbon zinc volume. Energizer ® is our core brand in this market, while other brands such as UCAR, Wonder, Tudor and Eveready ® support our portfolio strategy. 

South and Central America The South and Central American markets, including Mexico, accounted for 7 percent of global sales in fiscal 2000. Sales and operating profit declined 6 percent and 17 percent, respectively, resulting from lower carbon zinc volume and currency devaluations. 

## HIGH-DRAIN DEVICES 

## ALKALINE DOMINANCE 

ALKALINE BATTERIES, PARTICULARLY SUITED TO THE REQUIREMENTS OF HIGH-DRAIN PORTABLE ELECTRONIC DEVICES, ARE FUELING THE CONTINUING SHIFT IN CONSUMER PREFERENCES THAT HAS MADE THEM THE DOMINATE PRIMARY BATTERY THROUGHOUT THE WORLD, EXCEPT IN ASIA AND AFRICA. DEMAND IS EXPECTED TO GROW 7-8 PERCENT IN GLOBAL MARKETS ALREADY DOMINATED BY ALKALINE BATTERIES AND IN DOUBLE DIGITS IN THOSE MARKETS WHERE CARBON ZINC BATTERIES STILL PREDOMINATE. 

