To the woman who enjoys being connected. we are the means of expression that. inspireher. to share her. true self. with ease

Transcription

1 2007 Annual Report

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3 To the woman who enjoys being connected we are the means of expression that inspireher to share her true self with ease

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5 When a woman sends an American Greetings card, she s entrusting us to speak for her. She s using our cards to connect with someone she cares about and to express the way she thinks and feels. And she wants us to do it in a way that rings true, in a voice that sounds like hers. Sincere, direct, genuine. We know. Because we ve taken the time to learn who she is and how she lives her life. We ve gained insight into how she wants to communicate. And we re ready for her. With greeting cards and a whole variety of products that refl ect who she is, how she speaks and what s important to her. We know her language and even more important, we know what s in her heart.

6 The world moves faster than ever before and to stay relevant, we must keep in step. Our products refl ect what s important in her life today. To make sure our greeting card offering is timely and current, we give consumers more new cards, more often. So just as a woman s style is ever changing, so are the products we create for her to express herself whoever she is, on any given day. Exciting. Energizing. Inspirational. Like something delightfully unexpected that suddenly makes you smile. Our products have a fresh approach that s as unique as every woman. Thought-provoking. Surprising. That s what brings consumers back to American Greetings again and again and again.

7 As trends come and go, our products continue to refl ect the here and now. We re part of what s happening in society and culture. Colors, design, vocabulary are all affected by what s on-trend today. The cards a woman bought yesterday may not be the cards she looks for next month. Is she changing her mind? No, she s just staying in tune with the world around her a world that includes American Greetings.

8 Fellow Shareholders, Knowing our consumers is essential because at American Greetings we make products to help people express their emotions, reach out and connect with the important people in their lives. Last year, we focused on that challenge even more by taking a closer look at the common ways our consumers use our greeting cards. More recently, we ve explored how consumers use our products differently. We ve gained deeper knowledge about the lives and habits of our consumers. Today we know more about her and her voice, her language and her style than ever before yet we re not done learning. This emphasis on knowing our consumer is part of our strategic card initiative to enhance our greeting card assortments and the way we merchandise them in stores. Last year, the results of this initiative reached stores as we began shipping hundreds of new card designs and installed thousands of new departments. We also began applying our consumer insights to other product categories such as gift wrap, Christmas boxed cards and ornaments. These consumer insights have led to exciting new designs to differentiate our products in the marketplace. Our concentration on core social expression products also led to the decision to sell our GuildHouse candle product lines and Learning Horizons, our educational products subsidiary. In the next fi scal year, we ll continue to implement our strategic card initiative with a more refi ned understanding of our consumers and their social expression needs. We know that in an interconnected world where communication is a commodity, the need to connect is vital. We also know that our consumers want to make those connections in ways that are authentic to them. With a sharper focus and understanding, we are creating greeting cards with that kind of authenticity. Knowing our consumers has always been important. But as consumers become more sophisticated and have more demanding expectations, we believe our greeting cards will meet the challenge of refl ecting her voice in ways that demonstrate American Greetings is a leader in the industry. With best regards, Zev Weiss Chief Executive Offi cer Jeffrey Weiss President and Chief Operating Offi cer

9 Board of Directors and Executive Offi cers Board of Directors Morry Weiss 1 Chairman Zev Weiss 1 Chief Executive Offi cer Jeffrey Weiss 1 President Chief Operating Offi cer Scott S. Cowen President Tulane University 2, 3, 4 Joseph S. Hardin, Jr. 3, 4 Retired 1, 2, 4 Stephen R. Hardis Retired Chairman and Chief Executive Offi cer Eaton Corp. Michael J. Merriman Jr. Chief Executive Offi cer and President Lamson & Sessions Co. Harriet Mouchly-Weiss 2, 4 Founder and Managing Partner Strategy XXI Group Ltd. 1, 3, 4 Charles A. Ratner President and Chief Executive Offi cer Forest City Enterprises, Inc. 1, 2, 3 Jerry Sue Thornton President Cuyahoga Community College 1 Member of Executive Committee 2 Member of Audit Committee 3 Member of Nominating and Governance Committee 4 Member of Compensation and Management Development Committee Executive Offi cers Morry Weiss Chairman Zev Weiss Chief Executive Offi cer Jeffrey Weiss President and Chief Operating Offi cer John S.N. Charlton International Joseph B. Cipollone Vice President Corporate Controller Michael L. Goulder Executive Supply Chain Offi cer Thomas H. Johnston Creative and Merchandising President Carlton Cards Retail, Inc. Catherine M. Kilbane General Counsel and Secretary Josef Mandelbaum CEO - AG Intellectual Properties William R. Mason Wal-Mart Team Brian T. McGrath Human Resources Douglas W. Rommel Vice President Information Services Stephen J. Smith Chief Financial Offi cer Erwin Weiss Enterprise Resource Planning Steven S. Willensky Executive Sales and Marketing Offi cer

10 Company Information World Headquarters American Greetings Corporation One American Road Cleveland, Ohio Telephone: Fax: Annual Meeting The annual meeting of shareholders will be held at 2:30 p.m. on Friday, June 22, 2007, at our World Headquarters. Common Shares Our Class A common shares are traded on the New York Stock Exchange under the ticker symbol AM. In 2006, our Chief Executive Offi cer provided to the New York Stock Exchange the annual certifi cation regarding American Greetings compliance with the New York Stock Exchange s corporate governance listing standards. In addition, the certifi cations of our Chief Executive Offi cer and Chief Financial Offi cer regarding the quality of our public disclosures have been fi led as exhibits to our 2007 Annual Report on Form 10-K. Registrar and Transfer Agent Shareholders with questions about their accounts, statements, address changes, lost certifi cates, stock transfers, ownership changes, dividend payments or other administrative matters, please contact our transfer agent. National City Bank Shareholder Services, Dept P.O. Box Cleveland, Ohio Toll-Free: Fax: shareholder.inquiries@nationalcity.com Stock Purchase and Dividend Reinvestment Plan We provide shareholders with a convenient and cost-effective way to increase ownership in American Greetings through our Stock Purchase and Dividend Reinvestment Program. The program enables Class A shareholders to make voluntary cash payments for additional Class A common shares of American Greetings without paying brokerage fees and to reinvest their dividends. For a program brochure and enrollment form, please contact or call: National City Bank Reinvestment Services, Dept P.O. Box Cleveland, Ohio Toll-Free: Publications for Shareholders A copy of our 2007 Annual Report on Form 10-K as fi led with the Securities and Exchange Commission (SEC) is available without charge by addressing a request to the Corporate Secretary at our World Headquarters address; via to investor.relations@amgreetings.com; or via the Investors section of our Web site at Shareholder and Investor Relations Contact Gregory M. Steinberg Treasurer & Director of Investor Relations Telephone: investor.relations@amgreetings.com The following are trademarks of American Greetings Corporation and its subsidiaries: American Greetings, American Greetings with rose design, Carlton Cards, Strawberry Shortcake and others not depicted or referenced in this report AGC, Inc. All Rights Reserved

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12 One American Road, Cleveland, Ohio