Kodak Inc.

1
Annual Report

• Kodak Inc.
• Yang Wang
• ACG2021.002

2
Executive Summary

• Eastman Kodak Company ranks as a premier
  multinational corporation, with a brand
  recognized in virtually every country around the
  world.
• http//www.kodak.com/US/en/corp/annualReport04/cov
  er.shtml

3
Introduction

• CEO Daniel A. Carp
• Home Office343 State Street Rochester, NY
• Ending date of latest fiscal year Dec. 31
• Products and Services Kodak is known not only
  for photography, but also for images used in a
  variety of leisure, medical, business,
  entertainment and scientific applications.
• Areas of Business Kodak markets imaging
  products, systems and services in nearly every
  country around the world. Manufacturing
  operations are in the U.S., Canada, Mexico,
  Brazil, U.K., France, Germany, China, Japan,
  India, and Russia.

4
Audit Report

• Name of the companys independent auditors
• PricewaterhouseCoopers LLP
• The independent auditors stated that all
  financial statement of Eastman Kodak Company has
  completed with the standards of the Public
  Company Accounting Oversight Board. They have to
  examine all the statements, and they have pointed
  out that all material weakness of Kodak company
  are control deficiency.

5
Stock Market Information

• Most recent price of stock 27.80
• 12 month trading range20.77-34.97
• Dividend per share.25
• Date of the information Dec 14,2004
• In my opinion, it would be best for stockholders
  to hold their stocks because the current price of
  stock is lying in the median of 52 weeks trading
  range.

6
Industry Situation and Company plans

• The combined performance of Kodak businesses will
  make 2005 an historic crossover point in the
  companys 125-year history. The digital sales
  should exceed Kodak Companys traditional sales
  for the first time, and the growth in digital
  profits will exceed the profit decline in Kodak
  Companys traditions businesses.
• For the coming year, Kodak Company focuses on
• Drive digital revenue growth.
• Astutely manage their traditional businesses to
  stay ahead of market realities, and meet earning
  goals.
• Effectively control costs associated with every
  aspect of their business.
• Relentlessly control costs associated with every
  aspect of our business.
• Maintain excellence in delivering
  customer-centric innovations and imaging
  solutions with the industrys highest quality and
  focused, as always, on ease of use.

7
Income Statement

• Eastman Kodak Company uses a Multi-step Income
  Statement. (In millions)
• 2004
  2003
• Gross Margin 3,969 4,175
• Operating Income 81 189
• Net Income 556 253
• Gross Margin decreased and Operating Income, and
  Net Income increased from 2003 to 2004.

8
Balance Sheet(In millions)

• Assets Liabilities Stockholders Equity
• 2004 14,737 10.926 3,811
• 2003 14,846 11,601 3,245

9
Statement of Cash Flows

• Cash flows from operations are more than net
  income for the past two years.
• The company is growing through investing
  activities, such as buying property, plant and
  equipment .
• The companys primary source of financing is
  long-term debt.
• Overall, cash has increased over the past two
  years.

10
Accounting Policies The significant accounting
policies

• revenue recognition The Kodak Company recognizes
  revenue when persuasive evidence of an
  arrangement exists, delivery has occurred, the
  sales price fixed or determinable, and
  collectibles is reasonably assured.
• Cash Equivalents All highly liquid investments
  with remaining maturity of three months or less
  at date of purchase are considered to be cash
  equivalents.
• Inventories The Kodak Company provides inventory
  reserves for excess, obsolete or slow-moving
  inventory based on changes in customer demand,
  technology developments or other economic
  factors.
• property properties are recorded at cost, net
  of accumulated depreciation. The Kodak Company
  principally calculates depreciation expense using
  the straight-line method over the assets
  estimated useful lives.

11
Accounting PoliciesThe topics of the notes to
the financial statements

• Significant Accounting polices and Restatement
• Receivables, Net
• Inventories, Net
• Property, Plant and Equipment, Net
• Goodwill and Other Intangible Assets
• Other Long-Term Assets
• Investments
• Accounts Payable and Other Current liabilities
• Short-Term Borrowings and Long-Term Debt
• Other Long-Term Liabilities
• Commitments and Contingencies
• Guarantees
• Financial Instruments

• Other Income Charges), net
• Income Taxes
• Restructuring Costs and Other
• Retirement Plan
• Other Postretirement Benefits
• Accumulated Other Comprehensive Loss) Income
• Stock Option and Compensation Plans
• Acquisitions
• Discontinued Operations
• Segment Information
• Quarterly sales and Earning Data- Un-audited
• Subsequent events

12
Financial AnalysisLiquidity Ratios (In millions)

• 2004
  2003
• Working Capital 658 197
• Current Ratio
  1.13times 1.03times
• Receivable turnover
  5.33times 5.09times
• Average days sales uncollected 68 days
  72 days
• Inventory turnover
  1.03times 0.96times
• Average days inventory on hand 354days
  380days

13
Financial AnalysisProfitability Ratios

• 
  2004 2003
• Profit Margin 4.11 1.95
• Asset Turnover 0.91times
  0.87times
• Return on Asset 0.037times
  0.017times
• Return on Equity 0.15times
  0.07times

14
Financial AnalysisSolvency Ratio

• Debt to Equity
• 2003 2.86times
• 2004 3.57times

15
Financial AnalysisMarket Strength Ratios

• 2004 2003
• Price/earnings per share 14.32times
  31.59times
• Dividend yield 1.79
  4.13