Annual Report to Shareholders that are not historical, particularly statements regarding anticipated category trends, Energizer market share and sales in future periods, the future adequacy of cash  flows, and the risk associated with financial instruments and the concentration of credit, may be considered forward-looking state- ments within the meaning of the Private Securities Litigation Reform Act of 1995. Energizer cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the  date made. Energizer does not enter into foreign currency contracts for trading purposes where the sole objective is to generate profits. Market risk of foreign currency derivatives is the potential loss in  fair value of net currency positions for outstanding foreign currency contracts at fiscal year end, resulting from a hypothetical 10% adverse change in all foreign currency exchange rates. Market risk does not include foreign currency derivatives that hedge existing balance sheet exposures, as any losses on these contracts would be fully offset by exchange gains on the underlying exposures for which the contracts are designated as hedges. Accordingly, the market risk of Energizer’s foreign currency derivatives at September 30, 2000 and 1999 amounts to $2.6 and $1.5, respectively.  ENERGIZER 2000 ANNUAL REPOR T 18 Energizer generally views as long-term its investments in foreign  subsidiaries with a functional currency other than the U.S. dollar. As a result, Energizer does not generally hedge these net investments. Capital structuring techniques are used to manage the net invest- ment in foreign currencies as considered necessary. Additionally, Energizer attempts to limit its U.S. dollar net monetary liabilities in currencies of hyperinflationary countries, primarily in Latin America. In terms of foreign currency translation risk, Energizer is exposed to the Swiss franc and other European currencies; the Mexican peso and other Latin American currencies; and the Singapore dollar, Chinese renminbi, Australian dollar, Indonesian rupiah and other Asian currencies. Energizer’s net foreign currency investment in  foreign subsidiaries and affiliates translated into U.S. dollars using year-end exchange rates was $515.1 and $545.1 at September 30, 2000 and 1999, respectively. The potential loss in value of Energizer’s net foreign currency investment in foreign subsidiaries resulting from a hypothetical 10% adverse change in quoted foreign currency exchange rates at September 30, 2000 and 1999 amounts to $51.5 and $54.5, respectively.  See discussion in Note 2 to the Consolidated Financial Statements. Statements in the Management’s Discussion and Analysis of Results of Operations and Financial Condition and other sections of this RECENTLY ISSUED ACCOUNTING STANDARDS FORWARD-LOOKING INFORMATION Energizer advises readers that various risks and uncertainties could affect its financial performance and could cause Energizer’s actual results for future periods to differ materially from those anticipated  or projected. Technological or design changes in portable electronic and other devices that utilize batteries as a power source may  significantly affect the demand for batteries. Continuing improvements in the service life of primary batteries, improvements in rechargeable battery performance and increasing consumer acceptance of  rechargeable batteries, and the development of new non-alkaline  battery technologies could all significantly affect continued category growth for primary alkaline batteries. General economic conditions and continuing growth in consumer demand for portable electronic devices could also affect category growth. Within the category, Energizer’s sales and market share may be negatively affected by  competitive activity, including new product introductions or advertis- ing campaigns, retail discounts and other promotional activities. Competition for key retail customers and growth of the lower-price private-label battery segment may also negatively affect sales or  market share for Energizer. Unforeseen fluctuations in levels of Energizer’s operating cash flows, or inability to maintain compliance with its debt covenants, could limit Energizer’s ability to meet  future operating expenses and liquidity requirements, fund capital expenditures or service its debt as it becomes due. Economic turmoil, currency fluctuations and unforeseen customer financial difficulties could increase Energizer’s risk from currency hedges and other  financial instruments or from the extension of credit to customers. Additional risks and uncertainties include those detailed from time to time in Energizer’s publicly filed documents, including its Registration Statement on Form 10, as amended, and its Current Report on  Form 8-K dated April 25, 2000.