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1)/2,03'4 My Fellow Shareowners, Our brand momentum accelerated last year, as we continued to collaborate closely with many partners to reinvigorate growth, increase profitability and deliver greater long-term, sustainable value to our customers and shareowners like you. In short, we accomplished what we set out to do last year. And I give tremendous credit to my colleagues who made our success a reality. This Annual Report shares our brand story, as well as the stories behind the strong partnerships that bring our business to life every day: •Partnerships with our associates, who turn to us every day. •And partnerships with other vital stakeholders, from shareowners like you to all those we work with across the “golden triangle” of business, government, and civil society. Last year, we reshaped our business for greater value by !
establishing clear portfolio roles for our various markets around the world to drive revenue and profit growth. We accomplished this by working with our customer partners, gaining global value share and increased organic revenue. Kodak is facing liquidity challenges due to operating losses and negative cash flow. Based on forecasted cash flows, there are uncertainties regarding Kodak’s ability to meet commitments in the U.S. as they come due. Kodak’s plans to improve cash flow include reducing interest expense by decreasing the debt balance using proceeds from asset sales, including the sale of the Flexographic Packaging segment; further restructuring Kodak’s cost structure; and paring investment in new technology by eliminating, slowing, and partnering with investors in product development programs. Effective in January 2020
Kodak changed its organizational structure. Kodak Technology Solutions was merged with the Software and Solutions and Unified Workflow Solutions business to create the Business Industry segment. The Consumer and Film segment consists of the Print, Motion, and Film segments. During the first quarter of 2020 the segment measure was changed to exclude the costs, net of any rental income received, of underutilized portions of certain properties. Additionally, the allocation of costs from Eastman Business Park (“EBP”) to the Consumer and Film segment and Business Industry segment as tenants of EBP and to each of the segments as users of shared corporate space at the global headquarters is changing. Our Board has adopted
new written policies and procedures relating to approval or ratification of “interested transactions” with “related parties.” Under these policies and procedures, our Governance Committee reviews the material facts of all interested transactions that require the committee’s approval. The Governance Committee will approve or disapprove the interested transactions, subject to certain exceptions, by taking into account, among other factors it deems appropriate, whether the interested transaction is on terms no less favorable than terms generally available to an unaffiliated thirdparty under the same or similar circumstances and the extent of the related person’s interest in the transaction. If an interested transaction will be ongoing, the Governance Committee
may establish guidelines for our management to follow in its ongoing dealings with the related party and then, at least annually, must review and assess ongoing relationships with the related party. In the upcoming year, we will focus on emerging markets and build a foundation for long-term success. In developing markets, we used a balanced strategy of volume and pricing. In smaller markets, we emphasized price/ mix and smaller packages. And we added a revenue metric to our incentive pay plans. We made disciplined investments in our brands and other growth opportunities. Together with our global marketing and advertising partners, we invested in more and better marketing, including a double-digit increase in spending on media advertising, and we developed a new global marketing campaign. We became more efficient and productive reducing costs
and reinvesting the savings. We implemented “zero-based work” to help our people look carefully at every resource decision. We reduced non-media marketing spending. And we realized new supply chain efficiencies. We streamlined and simplified our company by standardizing fundamental processes. We are especially excited that our marketing teams and agency partners created a new logo. Look for the launch scheduled for the next month. The logo will create new value for customers through packaging, advertising, and through the web and social media platforms. Thank you for your interest and your investment in our brand. These are exciting days, and we’re honored to have you with us as we continue to improve our brand!
637%8.'03','9)
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5
!"#$%;3')'<3)*%=34>*34>0? While we have historically paid dividends to holders of our common stock on a quarterly basis, the declaration and payment of future dividends will depend on many factors, including, but not limited to, our earnings, financial condition, business development needs and regulatory considerations, and are at the discretion of our Board of Directors. As of February 22, 2019, there were 224,780 shareowner accounts of record. This figure does not include a substantially greater number of “street name” holders or beneficial holders of our common stock, whose shares are held of record by banks, brokers and other financial institutions. The information under the heading “EQUITY
:
COMPENSATION PLAN INFORMATION” in the Company’s definitive Proxy Statement for the Annual Meeting of Shareowners to be held on April 27, 2019, to be filed with the Securities and Exchange Commission. The following tables set forth, for the quarterly reporting periods indicated, the high and low market prices per share for the Company’s common stock, as reported on the New York Stock Exchange composite tape, and dividend per share information. Sales and net earnings are also depicted.
Sales by Product Category: Total Segment Sales Consumer & Film Software & Solutions
6 Enterprise 10 Systems
14
2
Advanced Technology
68 Print Systems
Net Earnings in Millions 3500
3000
2500
2013 2014 2015 2016 2017
2019
8.77.'%A0.<2%1)/2,0%B/3<,?
2018
2000
Fourth quarter Third quarter Second quarter First quarter Fourth quarter Third quarter Second quarter First quarter
High $43.91 $42.25 $41.69 $43.83 $45.00 $42.57 $42.29 $41.23
Low $40.43 $36.56 $39.12 $39.61 $39.80 $39.06 $38.04 $36.89
Dividends Declared $0.330 $0.330 $0.330 $0.330 $0.305 $0.305 $0.305 $0.305 @
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1)/2,03'4 My Fellow Shareowners, Our brand momentum accelerated last year, as we continued to collaborate closely with many partners to reinvigorate growth, increase profitability and deliver greater long-term, sustainable value to our customers and shareowners like you. In short, we accomplished what we set out to do last year. And I give tremendous
!
credit to my colleagues who made our success a reality. This Annual Report shares our brand story, as well as the stories behind the strong partnerships that bring our business to life every day: •Partnerships with our associates, who turn to us every day. •And partnerships with other vital stakeholders, from shareowners like you to all those we work with across the “golden triangle” of business, government, and civil society.
Last year, we reshaped our business for greater value by establishing clear portfolio roles for our various markets around the world to drive revenue and profit growth. We accomplished this by working with our customer partners, gaining global value share and increased organic revenue. Kodak is facing liquidity challenges due to operating losses and negative cash flow. Based on forecasted cash flows, there are uncertainties regarding Kodak’s ability to meet commitments in the U.S. as they come due. Kodak’s plans to improve cash flow include reducing interest expense by decreasing the debt balance using proceeds
from asset sales, including the sale of the Flexographic Packaging segment; further restructuring Kodak’s cost structure; and paring investment in new technology by eliminating, slowing, and partnering with investors in product development programs. Effective in January 2020 Kodak changed its organizational structure. Kodak Technology Solutions was merged with the Software and Solutions and Unified Workflow Solutions business to create the Business Industry segment. The Consumer and Film segment consists of the Print, Motion, and Film segments. During the first quarter of 2020 the segment measure was changed to exclude the costs, net of any rental income received, of underutilized portions of certain properties. Additionally, the allocation of costs
from Eastman Business Park (“EBP”) to the Consumer and Film segment and Business Industry segment as tenants of EBP and to each of the segments as users of shared corporate space at the global headquarters is changing. Our Board has adopted new written policies and procedures relating to approval or ratification of “interested transactions” with “related parties.” Under these policies and procedures, our Governance Committee reviews the material facts of all interested transactions that require the committee’s approval. If an interested transaction will be ongoing, the Governance Committee may establish guidelines for our management to follow in its ongoing dealings with the related party and then, at least annually, must review and assess
ongoing relationships with the related party. In the upcoming year, we will focus on emerging markets and build a foundation for long-term success. In developing markets, we used a balanced strategy of volume and pricing. In smaller markets, we emphasized price/mix and smaller packages. And we added a revenue metric to our incentive pay plans. We made disciplined investments in our brands and other growth opportunities. Together with our global marketing and advertising partners, we invested in more and better marketing, including a doubledigit increase in spending on media advertising, and we developed a new global
marketing campaign. We became more efficient and productive reducing costs and reinvesting the savings. We implemented “zerobased work” to help our people look carefully at every resource decision. We reduced non-media marketing spending. And we realized new supply chain efficiencies. We streamlined and simplified our company by standardizing fundamental processes. We are especially excited that our marketing teams and agency partners created a new logo. Look for the launch scheduled for the next month. The
logo will create new value for customers through packaging, advertising, and through the web and social media platforms. Thank you for your interest and your investment in our brand. These are exciting days, and we’re honored to have you with us as we continue to improve our brand!
637%8.'03','9)
!"#$%&'(#)*+,'-.,/0)*!1
5
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:
Sales by Product Category: Total Segment Sales Consumer & Film Software & Solutions
6 Enterprise 10
in the Systems Company’s definitive Proxy Statement for the Annual Meeting of Shareowners to be held on April 27, 2019, to be filed with the Securities and Exchange Commission. The following tables set forth, for the quarterly reporting periods indicated, the high and low market prices per share for the Company’s common stock, as reported on the New York Stock Exchange composite tape, and dividend per share information. Sales and net earnings are also depicted.
2
68 Print Systems
Net Earnings in Millions 3500
3000
2500
2000
2013 2014 2015 2016 2017
2019
Common Stock Market Prices
2018
While we have historically paid dividends to holders of our common stock on a quarterly basis, the declaration and payment of future dividends will depend on many factors, including, but not limited to, our earnings, financial condition, business development needs and regulatory considerations, and are at the discretion of our Board of Directors. As of February 22, 2019, there were 224,780 shareowner accounts of record. This figure does not include a substantially greater number of “street name” holders or beneficial holders of our common stock, whose shares are held of record by banks, brokers and other financial institutions. The information under the heading “EQUITY COMPENSATION PLAN INFORMATION”
14
Advanced Technology
Fourth quarter Third quarter Second quarter First quarter Fourth quarter Third quarter Second quarter First quarter
High $43.91 $42.25 $41.69 $43.83 $45.00 $42.57 $42.29 $41.23
Low $40.43 $36.56 $39.12 $39.61 $39.80 $39.06 $38.04 $36.89
Dividends Declared $0.330 $0.330 $0.330 $0.330 $0.305 $0.305 $0.305 $0.305
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â&#x20AC;&#x153;At Kodak, we believe that by doing well by shareholders also means doing right by customers, employees, neighbors, and suppliers. With that in mind, Kodak operates its facilities, and designs and markets its products and services, not only to increase shareholder value, but also to promote development of the individual, the well being of the community, and respect for the environment.â&#x20AC;?
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4<'=0..#>'?@%20#>,02AB Our brand momentum accelerated last year, as we continued to collaborate closely with many partners to reinvigorate growth, increase profitability and deliver greater long-term, sustainable value to our customers and shareowners like you. In short, we accomplished what we set out to do last year. And I give tremendous credit to my colleagues who made our success a reality. This Annual Report shares our brand story, as well as the stories behind the strong partnerships that bring our business to life every day: •Partnerships with our associates, who turn to us every day. •And partnerships with other vital stakeholders, from shareowners like you to all those we work with across the “golden triangle” of business, government, and civil society. Last year, we reshaped our business for greater value by establishing clear portfolio roles for our various markets around the world to drive revenue and profit growth. We accomplished this by working with our customer partners, gaining global value share and increased organic revenue. Kodak is facing liquidity challenges due to operating losses and negative cash flow. Based on forecasted cash
flows, there are uncertainties regarding Kodak’s ability to meet commitments in the U.S. as they come due. Kodak’s plans to improve cash flow include reducing interest expense by decreasing the debt balance using proceeds from asset sales, including the sale of the Flexographic Packaging segment; further restructuring Kodak’s cost structure; and paring investment in new technology by eliminating, slowing, and partnering with investors in product development programs. Effective in January 2020 Kodak changed its organizational structure. Kodak Technology Solutions was merged with the Software and Solutions and Unified Workflow Solutions business to create the Business Industry segment. The Consumer and Film segment consists of the Print, Motion, and Film segments. During the first quarter of 2020 the segment measure was changed to exclude the costs, net of any rental income received, of underutilized portions of certain properties. In the upcoming year, we will focus on emerging markets and build a foundation for long-term success. In developing markets, we used a balanced strategy of volume and pricing. In smaller markets, we emphasized price/ mix and smaller packages. And we added a revenue metric to our incentive pay plans.
We made disciplined investments in our brands and other growth opportunities. Together with our global marketing and advertising partners, we invested in more and better marketing, including a double-digit increase in spending on media advertising, and we developed a new global marketing campaign. We became more efficient and productive reducing costs and reinvesting the savings. We implemented “zero-based work” to help our people look carefully at every resource decision. We reduced non-media marketing spending. And we realized new supply chain efficiencies. We streamlined and simplified our company by standardizing fundamental processes. We are especially excited that our marketing teams and agency partners created a new logo. Look for the launch scheduled for the next month. The logo will create new value for customers through packaging, advertising, and through the web and social media platforms. Thank you for your interest and your investment in our brand. These are exciting days, and we’re honored to have you with us as we continue to improve our brand!
859':#,35,0,;%
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7
()!*'=5,%,D5%.'E56@.56@3A Sales by Product Category: Total Segment Sales Consumer & Film Software & Solutions
6 Enterprise 10
C
14
2
Advanced Technology
68
Systems
Print Systems
2019
Common Stock Market Prices
2018
While we have historically paid dividends to holders of our common stock on a quarterly basis, the declaration and payment of future dividends will depend on many factors, including, but not limited to, our earnings, financial condition, business development needs and regulatory considerations, and are at the discretion of our Board of Directors. As of February 22, 2019, there were 224,780 shareowner accounts of record. This figure does not include a substantially greater number of “street name” holders or beneficial holders of our common stock, whose shares are held of record by banks, brokers and other financial institutions. The information under the heading “EQUITY COMPENSATION PLAN INFORMATION” in the Company’s definitive Proxy Statement for the Annual Meeting of Shareowners to be held on April 27, 2019, to be filed with the Securities and Exchange Commission. The following tables set forth, for the quarterly reporting periods indicated, the high and low market prices per share for the Company’s common stock, as reported on the New York Stock Exchange composite tape, and dividend per share information. Sales and net earnings are also depicted.
Fourth quarter Third quarter Second quarter First quarter Fourth quarter Third quarter Second quarter First quarter
High $43.91 $42.25 $41.69 $43.83 $45.00 $42.57 $42.29 $41.23
Low $40.43 $36.56 $39.12 $39.61 $39.80 $39.06 $38.04 $36.89
Dividends Declared $0.330 $0.330 $0.330 $0.330 $0.305 $0.305 $0.305 $0.305
Net Earnings in Millions 3500
3000
Sales in Millions
2500
80000 2000
70000
2013 2014 2015 2016 2017
60000 50000 40000 30000
EBIT in Millions
20000 10000 0
2013 2014 2015 2016 2017
2013 2014 2015 2016 2017 0
10000 20000 30000 40000 50000 60000 70000 80000