2012 ANNUAL REPORT

Today, Sharpie stands for far more than just markers. It’s the brand that stands up for self-expression. Letting you be heard, putting you at the center of your world, helping you express all the ideas, feelings, moods, and memories you have with absolute conviction and absolute passion that’s what Sharpie’s all about!

With the introduction of products like Liquid Pencil, Gel Highlighter, and Stained by Sharpie, Sharpie continues coming up with innovative ways for you to uncap what’s inside. And with the launch of the new and improved sharpie.com, now you can showcase and share all things Sharpie and find all of your favorite products for self-expression all on the same site.

When you start with Sharpie, you never know where you’ll end up. That’s the wonder of creating something. And Sharpie will continue to help you bring out what’s inside yourself and share it with the world.

At Sharpie we are sharpening our choices and strengthening our capabilities to accelerate performance. The transformation that began six years ago building a diverse palette and insight-driven innovations that win in the marketplace has created a solid foundation. We now have a stronger and more tightly focused portfolio of leading brands with a margin structure that allows brand investment. As 2013 unfolds we are writing the next chapter of the Sharpie story. Our new Growth Game Plan is the strategy we are implementing to fulfill our ambition to build a bigger, faster-growing, more global and more profitable goodbye widow company.

We need to make sharper portfolio choices in order to fuel accelerated growth of our brand that have the greatest right to win. We have to go where the growth is happening in the world. The developed world represents about 85 percent of our sales today but only yields about 13 percent of our core sales growth. The long-term health of the company requires us to consolidate our developed market shares to clear leadership positions and expand our geographic footprint so we have big positions in the faster growing emerging markets. By creating a “Where to Play” framework that prioritizes our best business ideas, we will be single-minded about redeploying resources to higher-growth emerging market opportunities, while tasking slower growth businesses to win more effectively within their current geographic footprints. We expect our business to grow, but in different ways and at different rates.

STARTS WITH

TABLE OF CONTENTS02 · COMPANY OVERVIEW04 · LETTER FROM THE CEO05 · BOARD OF DIRECTORS06 · MARKETING CAMPAIGN08 · SOCIAL OUTREACH10 · PRODUCT EVOLUTION12 · NEWEST ADDITIONS14 · GLOBAL DISTRIBUTING16 · FINANCIAL REPORT

2009 · 2012(in millions)

1420.9

1023.8

622.6

356.3

· MARK GRUNDMAN ·Cheif Executive O�cer

· MARK GRUNDMAN ·Vice President

The Highlighters

· MARK GRUNDMAN ·Vice President

· MARK GRUNDMAN ·Director

· MARK GRUNDMAN ·Director

· MARK GRUNDMAN ·Director

· MARK GRUNDMAN ·Director

· MARK GRUNDMAN ·Director

At Sharpie we are sharpening our choices and strengthening our capabilities to accelerate performance. The transformation that began six years ago building a diverse palette and insight-driven innovations that win in the marketplace has created a solid foundation. We now have a stronger and more tightly focused portfolio of leading brands with a margin structure that allows brand investment. As 2013 unfolds we are writing the next chapter of the Sharpie story. Our new Growth Game Plan is the strategy we are implementing to fulfill our ambition to build a bigger, faster-growing, more global and more profitable company.

I’m convinced that Sharpie is poised to write the next chapter of our story, one based on unlocking the full potential of the organization to enable accelerated growth. Earlier this year we launched our Growth Game Plan, a powerful new multi-year strategy to deliver this more and more acceleration.

At the heart of the Growth Game Plan is a belief in growth as our primary source of long-term value. We operate in global markets totaling over $120 billion but have an average market share of only 5 percent despite our portfolio of leading brand and fragmented competition. This means we have a real opportunity to invest in our brand in order to build market shares to their full potential and achieve a leading competitive position for the long term.

We need to make sharper portfolio choices in order to fuel accelerated growth of our brand that have the greatest right to win. We have to go where the growth is happening in the world. The developed world represents about 85 percent of our sales today but only yields about 13 percent of our core sales growth. The long-term health of the company requires us to consolidate our developed market shares to clear leadership positions and expand our geographic footprint so we have big positions in the faster growing emerging

At Sharpie we are sharpening our choices and strengthening our capabilities to accelerate performance. The transformation that began six years ago building a diverse palette and insight-driven innovations that win in the marketplace has created a solid foundation. We now have a stronger and more tightly focused portfolio of leading brands with a margin structure that allows brand investment. As 2013 unfolds we are writing the next chapter of the Sharpie story. Our new Growth Game Plan is the strategy we are implementing to fulfill our ambition to build a bigger, faster-growing, more global and more profitable goodbye widow company.

We need to make sharper portfolio choices in order to fuel accelerated growth of our brand that have the greatest right to win. We have to go where the growth is happening in the world. The developed world represents about 85 percent of our sales today but only yields about 13 percent of our core sales growth. The long-term health of the company requires us to consolidate our developed market shares to clear leadership positions and expand our geographic footprint so we have big positions in the faster growing emerging markets. By creating a “Where to Play” framework that prioritizes our best business ideas, we will be single-minded about redeploying resources to higher-growth emerging market opportunities, while tasking slower growth businesses to win more effectively within their current geographic footprints. We expect our business to grow, but in different ways and at different rates.

With the clarity of our two fields of play and the “Where to Play” choices, guided by our “Five Ways to Win”, our efforts can be much better aligned with our growth platforms. This is a multi-year strategy and there is a lot to do, but we are already getting started.

The people of Sharpie are energized and excited by the challenge inherent in our new Growth Game Plan. Every day

To Our Stockholders:

Ben Gadbois, CEO