NonGAAP FY13 Annual Meeting Aug28

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NonGAAP FY13 Annual Meeting Aug28 Powered By Docstoc
					                                                            H. J. Heinz Company and Subsidiaries
                                                                Non-GAAP Performance Ratios

The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP").
However, management believes that certain non-GAAP performance measures and ratios, used in managing the business, may provide users of this
financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP financial measures
should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The following
tables provide the calculations of the non-GAAP performance ratios in this presentation.
                                                                                                                           H. J. Heinz Company
                                                                                                                          Sales Variance Analysis

The following table illustrates the components of the change in net sales versus the prior year.

                                                     2006*                2007*                2008          Q109            Q209           Q309        Q409       2009       Q110       Q210       Q310       Q410       2010

Total Heinz (Continuing Operations):
   Volume                                                  3.9%                 0.8%                 3.9%         5.4%           (0.9%)        (6.2%)     (1.9%)     (1.1%)     (3.9%)     (3.8%)      1.2%       1.6%       (1.3%)
   Price                                                 (0.1%)                 2.2%                 3.5%         5.3%             7.2%          8.1%       7.6%       7.1%       6.0%       4.6%      1.8%       1.0%         3.4%
   Acquisition                                             5.0%                 1.3%                 0.7%         0.7%             1.2%          2.5%       3.4%       2.0%       3.1%       3.1%      2.9%       0.3%         2.3%
   Divestiture                                           (1.2%)               (3.1%)               (0.8%)         0.0%           (0.2%)        (0.1%)     (0.2%)     (0.1%)     (0.2%)       0.0%      0.0%       0.0%       (0.1%)
   Exchange                                              (1.4%)                 2.8%                 5.2%         4.1%           (3.2%)       (11.3%)    (13.9%)     (6.6%)     (9.0%)     (1.0%)      6.9%       5.5%         0.5%
       Total Change in Net Sales                           6.1%                 3.9%               12.3%         15.5%             4.0%        (7.1%)     (5.0%)       1.3%     (4.0%)       2.9%     12.7%       8.3%         4.8%
      Total Organic Growth (a)                            3.8%                 3.0%                 7.4%         10.7%            6.3%          1.9%       5.7%       6.0%       2.1%       0.8%       3.0%       2.6%        2.1%

                                                                                                             Q111            Q211           Q311        Q411       2011       Q112       Q212       Q312       Q412       2012**

Total Heinz (Continuing Operations):
   Volume                                                                                                          2.5%            0.3%          0.5%     (0.3%)       0.7%     (0.7%)     (2.9%)       0.4%       1.5%      (0.3%)
   Price                                                                                                           1.1%            0.6%          1.2%       1.9%       1.2%       3.8%       4.4%       4.2%       3.0%        3.8%
   Acquisition                                                                                                     0.1%            0.1%          1.2%       1.1%       0.6%       4.6%       5.0%       3.6%       3.1%        4.0%
   Divestiture                                                                                                     0.0%            0.0%          0.0%       0.0%       0.0%       0.0%     (0.6%)     (0.7%)     (0.7%)      (0.5%)
   Exchange                                                                                                      (2.1%)          (2.3%)        (1.4%)       3.3%     (0.5%)       7.2%       2.4%     (0.4%)     (1.3%)        1.8%
       Total Change in Net Sales                                                                                   1.6%          (1.2%)          1.5%       6.0%       2.0%     14.9%        8.3%       7.2%       5.6%        8.8%
       Total Organic Growth (a)                                                                                    3.6%            0.9%          1.7%       1.6%       1.9%       3.1%       1.5%       4.6%       4.5%        3.5%


Total Heinz (Continuing Operations):                                                                         Q113
   Volume                                                                                                      ~ 2.5%
   Price                                                                                                       ~ 2.5%
   Acquisition                                                                                                    0.0%
   Divestiture                                                                                                ~ (0.5)%
   Exchange                                                                                                   ~ (6.0)%
      Total Change in Net Sales                                                                               ~ (1.5)%
      Total Organic Growth (a)                                                                                 ~ 5.0%




(a) Organic sales growth is a non-GAAP measure that excludes the impact of foreign currency exchange rates and acquisitions/divestitures.

** Fiscal 2007 had one less week than Fiscal 2006
** Fiscal 2012 had 2 extra business days than Fiscal 2011
 (Totals may not add due to rounding)
                                      H. J. Heinz Company
                          Continuing Operations, Excluding Special Items


                                                                               2006

Earnings per share from continuing operations attributable to H.J. Heinz
Company- Reported                                                          $          1.25
  Separation, downsizing and integration                                              0.28
  Net loss on disposals & impairments                                                 0.14
  Asset impairment charges for cost and equity investments                            0.31
  American jobs creation act                                                          0.07
Earnings per share from continuing operations attributable to H.J. Heinz
Company excluding special items                                            $          2.06


(Totals may not add due to rounding)
                                                  H. J. Heinz Company
                            Fiscal 2012 Results Excluding Charges for Productivity Initiatives

The following tables reconcile the Company's reported results to results excluding charges for productivity
initiatives in Fiscal 2012 in this presentation.

(amounts in thousands, except per
share data)                                                   Fiscal Year Ended April 29, 2012
                                                  A                          B                     C=A-B
                                                                      Charges for            Results Excluding
                                             Reported                 Productivity             Charges for
                                              Results                  Initiatives        Productivity Initiatives (1)

H.J. Heinz Company Net Income                         $923,159                ($162,874)                      $1,086,033
Diluted EPS                                              $2.85                   ($0.50)                           $3.35



(1) Excludes charges associated with targeted workforce reductions, asset write-offs associated with factory
 closures and other implementation costs in order to increase manufacturing effectiveness and accelerate
 productivity on a global scale. Other implementation costs primarily include professional fees, contract termination
 and relocation costs for the establishment of a European supply chain hub in the Netherlands and to improve
global manufacturing efficiencies.

(Totals may not add due to rounding)
                                                               H. J. Heinz Company
                            Results from Continuing Operations Excluding Charges for Fiscal 2012 Productivity Initiatives

The following tables reconcile the Company's reported results for Q1 Fiscal 2012 to results excluding charges for productivity
initiatives in Fiscal 2012 in this presentation.

                                                                     First Quarter Ended
(amounts in thousands, except per share data)                            July 29, 2012                                         Change in Results
(Continuing Operations)                                                    Expected                                       Excluding FY 12 Charges for
                                                                            Results                                        Productivity Initiatives (1)

H.J. Heinz Company Net Income                                                      ~ $280,000                                         ~ 10%
Diluted EPS                                                                           ~ $0.87                                         ~ 10%


(amounts in thousands, except per share data)                                                  First Quarter Ended July 27, 2011
(Continuing Operations)                                                        A                             B                      C=A-B
                                                                                                      Charges for             Results Excluding
                                                                           Reported                   Productivity               Charges for
                                                                            Results                    Initiatives         Productivity Initiatives (1)

H.J. Heinz Company Net Income                                                       $226,729                  ($28,448)                         $255,177
Diluted EPS                                                                            $0.70                    ($0.09)                            $0.79


(1) Excludes charges associated with targeted workforce reductions, asset write-offs associated with factory
 closures and other implementation costs in order to increase manufacturing effectiveness and accelerate
 productivity on a global scale. Other implementation costs primarily include professional fees and relocation
 costs for the establishment of a European supply chain hub in the Netherlands.

(Totals may not add due to rounding)
                                                                                          H. J. Heinz Company
                                                                                  Estimated Constant Currency Results

The following tables reconcile the Company's estimated reported results to estimated constant currency results for the
first quarter of Fiscal 2013 in this presentation.

(amounts in thousands, except per share data)                                                              First Quarter Ended July 29, 2012
(Continuing Operations)                                                           A                         B                    C                 D=A-B-C
                                                                                                                             Currency
                                                                              Expected                  Currency            Translation        Constant Currency
                                                                              Results                  Translation            Hedges              Results (2)

H.J. Heinz Company Net Income                                                          ~ $280,000         ~ ($18,000)        ~ $4,000             ~ $294,000



                                                                       First Quarter Ended
(amounts in thousands, except per share data)                              July 27, 2011
(Continuing Operations)                                                 Results Excluding                                Constant Currency
                                                                           Charges for
                                                                     Productivity Initiatives (1)                           Change (3)

H.J. Heinz Company Net Income                                                            $255,177                             ~ 15%

(1) See separate reconciliation and explanation of these figures compared to the reported amounts.
(2) Excludes currency translation versus FY12 average rates as well as current year currency translation hedges.
(3) Change is calculated by taking Q1 FY13 constant currency results versus the Q1 FY12 reported results.

(Totals may not add due to rounding)
                                                                                    H. J. Heinz Company
                                                                                  Operating Free Cash Flow




Total Company
(amounts in millions)                                                                                          Fiscal Year Ended
                                                   FY 2006 (2)(3)        FY 2007 (3)          FY 2008 (3)         FY 2009 (3)            FY 2010 (3)          FY 2011             FY 2012
Cash provided by operating activities              $     1,075.0       $      1,062.3       $      1,188.3      $       1,166.9      $        1,262.2     $       1,583.6     $       1,493.1
Capital expenditures                                       (230.6)             (244.6)              (301.6)              (292.1)               (277.6)             (335.6)             (418.7)
Proceeds from disposals of property, plant and
equipment                                                      19.4                60.7                  8.5                  5.4                96.5                 13.2                9.8

   Operating Free Cash Flow                        $         863.8     $          878.4     $         895.2      $         880.2     $        1,081.1     $         1,261.2   $       1,084.2

                              (1)
Cash for productivity initiatives                                                                                                                                             $        (121.9)
   Operating Free Cash Flow excluding special
items                                                                                                                                                                         $       1,206.1


(1) Cash paid for productivity initiatives related to severance and other implementation costs and capital spending. Other implementation costs primarily include
 professional fees, contract termination and relocation costs for the establishment of a European supply chain hub in the Netherlands
and to improve global manufacturing efficiencies.
(2) Includes amounts from the European seafood and Tegel® poultry businesses that were discontinued in Fiscal 2006.
(3) Includes amounts from the Kabobs business that was discontinued in the second quarter of Fiscal 2010 and the U.K. private label
frozen desserts and Appetizers And businesses which were discontinued in the third quarter of Fiscal 2010.

(Totals may not add due to rounding)

				
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posted:9/17/2012
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