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Objective

Access strengths and weaknesses.


Annual report 2012 and their affect on investment potentials.

About American Greetings Corp.


American Greetings Corp is worlds largest publicly owned creator, manufacturer and distributor of social expression products.
The company was founded in 1906 and is based on Cleveland, OH. AG sells their products in USA, Canada, UK, Australia, New Zealand and rest of the world through different channels.
Greetings Cards Party Products E-greetings

Digital service and products

AG Business Segments
North American Social Expression Products
International Social Expression Products AG Interactive Non-reportable Operating Segments

Greeting Cards
American Greetings creates, manufactures and distributes their cards on following brands:
American Greetings Carlton Today and always Recycled Paper Greetings

Gibson
Papyrus Just for you Neutral

La Rosa
Enter Nous Forget-Me-Not Pleasant Thoughts

Tender thoughts

Party Products
American Greeting Corp. manufacture and sell their party related products to domestic and international market.
Gift packaging Party goods

Stationery
Gift ware

E-greetings
AG Interactive Inc. is distributing electronic greetings and broad range of graphics and digital services and products through web sites, internet portals , instant messaging service and electronic mobile devices.

www.americangreetings.com www.bluemountain.com www.egreetings.com www.cardstore.com

Digital Service & Products


AG Interactive creates and license their intellectual properties and characters. They are providing them under their digital service and products.
Care Bears

Strawberry Shortcake

Net Sales of largest customer


Sales Customer Card & Gift shop Wal-Mart Target Others 2012 (% of net sales) 42% 14% 14% 30% 2011 (% of net sales) 39% 15% 13% 23%

Competitors
There are two major supplier offering a full range of greeting card products. 1. American Greetings Corp 2. Hallmark Cards Inc

Based on retail paper cards and electronic cards following are the competitors of AG:
Hallmark Cards Inc. More than 3000 greeting card publisher publishes their electronic cards.

Other Factors

Existence globally helps to improve sales of AG. Product leadership, compelling and superior product offering requires to invest in ongoing product offerings. Business can be affected by the fluctuation of US dollar. Economic fluctuations causes reduces in sales and advertisement revenue will decrease. Acquiring other companies may result in profit or loss. E.g. Schurman is acquired by AG and due to that they are responsible for all the debt. Schurman is not able to pay rent and other amounts due with respect to retail store leases and subleases. AG is responsible for it.

Financial Data

AG Financial Position

Financial Data

AG Assets

AG Liability & Equity

Geographical Revenue & Fixed Assets

Capital Structure of 2012-2011


2012
Net Income Earnings per share Equity Debt $57.2 million $1.42 $727.46 million $225.18 million

2011
$87 million $2.11 $763.75 million $232.68 million

Facts.
AG is expected to have some decline in 2013.
AG net sales were $1.66 billion, up from $1.57 billion in year 2012 compare to last

year.
AG Interactive sales has been decreased by $10 million. Watermark acquisition in International Social Expression Products business

segment has increased net sales of $93 million


AG Total Returns to an investor from price appreciation and dividends has

been increased to 15.39% compare to last year S&P 500.


Increase EPS through increasing net sales.

Strength
Diversified business portfolio.
Solid performance within industry. Exceptional culture and management regarding people, technology and

systems.
Exceptional creative work culture.

Factors That May Affect Future Results


Foreign currency translation and transaction risks that may materially and adversely affect AG operating results.
Bankruptcy of key customers could give rise to an inability to pay and increase AG exposure to losses from bad debts. Rely on foreign sources of production and face a variety of risks associated with

doing business in foreign markets. Pending litigation could have a material, adverse effect on our business, financial condition, liquidity, results of operations and cash flows.

Summary
American Greetings Corp needs to improve their plan and strategy to do business in rest of the world. They needs to analyze how to improve their sales.
American Greetings Corp needs to be careful until their financial situation is under control. Increase in net sales will increase the gross profit, which will eventually

Appendix
Web-site:
1. 2. 3.

http://investors.americangreetings.com/annual_reports http://www.americangreetings.com http://ycharts.com/companies/AM