Annual Report 2011
Polaroid
4
Mission Statement
6
Letter to Shareholders
8
Informational Financial Graphics
Financial Report
History of the Company
New Products
14
12
10
Mission Statement
4
" The company’s mantra since the first instant camera was conceived in 1948: to put the latest cutting edge technology in the peoples’ hands and give them the power to use it comfortably, affordably ...and in an instant. "
To our shareholders, customers and friends, In my year and a half as chief executive, I have made a point of listening to many Polaroid users, dealers, retailers, employees, investors, suppliers and even competitors on four continents. These candid exchanges have given me a firm fix on our strengths and opportunities. Last year was a turning point for Polaroid - a year of re-establishing a strong foundation for the future. To sum it up, we restructured, we reorganized, and - most important - we achieved our operating profit plan for the year. We focused on shareholder value and sharply improved
Letter To Shareholders
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our Economic Value Added (EVA). EVA, which takes into account the cost of capital when calculating returns, is increasingly being used by Polaroid, as well as other leading corporations, to align business metrics and management compensation more closely with the creation of shareholder value. We believe that by making Polaroid an EVA-focused company we are serving our shareholders and customers more effectively. So where is our new game plan taking Polaroid? Currently, our core photography business accounts for about
90 percent of total sales. As our results demonstrate, this business is solid and profitable. We expect to deliver growth, not only in developing markets, but also in North America, western Europe and Japan. In the years ahead, we expect our other businesses, such as digital products, sunglasses, holography, graphics and others that will surface, to grow rapidly and contribute a greater share of our total sales. The renewal of Polaroid is a work-in-progress. I am pleased with our 2011 progress, but we have yet to
achieve our true potential. Nineteen ninety-six established a solid foundation for growing Polaroid. In 2011 and beyond, we will make our vision of a growing, reinvigorated Polaroid a reality. Through your continuing support we can realize our vast potential in the rapidly changing field of imaging. I am enthusiastic about our future, and I appreciate your confidence in Polaroid. Steve Miller Chief Executive Officer
4.5%
51%
Informational Financial Graphics
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11%
Total Net Sales: $2,275.2 million
Total profit: $253.6 million Percentage of Net Sales: 11.1
Total loss: $99.3 million Percentage of Net Sales: 4.5
Percentage of Net Sales Information based off the financial report for 2010. All dollar amounts in millions.
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Financial Report
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(In millions)
2010
2009
2008
Net sales Profit from operations Restructuring and other expenses Special charges
$2,275.2 201.8* 110.0 33.0*
$2,236.9 89.2 247.0 -
$2,312.5 200.3 -
Profit/(loss) from operations Earnings/(loss) before income tax expense/(benefit)
51.8 31.2
(157.8) (201.4)
200.3 160.7
Earnings/(loss) before extraordinary item Extraordinary item Net earnings/(loss)
15.0 (56.1) (41.1)
(140.2) - (140.2)
117.2 117.2
Earnings/(loss) before extraordinary item Extraordinary item Net earnings/(loss)
.32 (1.21) (.89)
(3.09) - (3.09)
2.49 2.49
Earnings per common share Cash dividends per common share Advertising
2.27* .60 134.6
.45 .60 124.1
2.49 .60 121.2
* In 2010, the Company recorded one-time costs of $40 million, of which $7 million was recorded in cost of sales and $33 million was recorded as special charges of one-time cost.
Instant Cameras are introduced to the market.
1937
1948
1986
Polaroid is founded by Edwin H. Land. Polaroid defeats Kodak in a patent battle for the instant camera.
History of the Company
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The PDC-2000 Digital Camera is released.
1996
2001
Production stops on Polaroid Instant Film.
2007
2009
Polaroid Grey Label is released.
2010
2011
Polaroid discontinues the Polaroid Instant Camera. Polaroid’s assests become the Polaroid Corporation. Polaroid introduces Lady Gaga as the new face of Polaroid.
Available starting in June, the next generation of the Polaroid instant printing experience. The Polaroid Grey Label GL10 instant mobile printer frees digital images trapped on hard drives and cell phones. Marrying the convenience of today’s digital images and the original Polaroid instant experience, the 15-ounce printer works from most mobile phones wirelessly via Bluetooth and from most digital cameras, Windows PCs and
New Products
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Macs via a USB cable and provides the classic Polaroid instant experience using the ZINK® Technology. The first product in Polaroid and Lady Gaga’s new Polaroid Grey Label line, the GL10 features an intuitive design and easy-to-use feature set that produces full bleed and contemporary 3x4” photos in the Polaroid Classic Border logo in less than one minute - making it a portable photo booth that allows you to bring Polaroid magic anywhere.
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Merging fashion with photography: never before has the world seen fashion, photography and technology come together in one, singular product. They tells your story to the world: Users can instantly capture or upload photos with the built-in camera and then display the images on the glasses’ LCD screens for others to see. The glasses express true artistry and originality: only Lady Gaga could create a hybrid that’s part fashion statement, part revolutionary technology and part tool for self-expression. The GL20 Camera Glasses will be available later this year.
The GL30 Instant Digital Camera will be available later this year and brings the Polaroid Instant Experience to Life: Introducing a new generation to the joy of instant photography, the GL30 uses next generation ZINK Zero Ink Technology from ZINK Imaging. It pays Tribute to Polaroid’s Legacy: Reminiscent of Polaroid cameras of the past, the GL30 is clearly a significant departure from a typical camera. Designed for longevity, the GL30 is not only for the future, it’s an object of desire. Users can select from a number of filters and borders to create truly original images that instantly fit in the palm of your hand.