Download Annual Report PDF - Heinz

More documents

Recommendations

Info

Financial Highlights* EPS (1) CAGR (3) of 8.2% OPERATING FREE CASH FLOW (2) — $MM $5.9 Billion Since FY06 SALES (1) — $MM Average Organic (4) Growth 4.0% $3.06 $1,261 $10,707 $2.06 $864 $8,470 FY06 FY11 FY06 FY11 FY06 FY11 (1) Amounts are continuing operations, FY06 EPS excludes special items (2) Operating Free Cash Flow is cash from operations less capital expenditures net of proceeds from disposal of PP&E (3) CAGR = Compound Annual Growth Rate (4) Volume plus price H.J. Heinz Company and Subsidiaries 2011 2010 (Dollars in thousands, except per share amounts) (52 Weeks) (52 Weeks) Sales (1) $10,706,588 $10,494,983 Operating income (1) 1,648,190 1,559,228 Income from continuing operations, net of tax (1)(2) 989,510 914,489 Per common share amounts: Income from continuing operations (1)(2) - diluted $ 3.06 $ 2.87 Cash dividends $ 1.80 $ 1.68 Cash from operations $ 1,583,643 $ 1,262,197 Capital expenditures 335,646 277,642 Proceeds from disposals of property, plant and equipment 13,158 96,493 Depreciation and amortization (1) 298,660 299,050 Property, plant and equipment, net 2,505,083 2,091,796 Cash and cash equivalents $ 724,311 $ 483,253 Cash conversion cycle (days) 42 47 Total debt 4,613,060 4,618,172 H.J. Heinz Company Shareholders’ equity 3,108,962 1,891,345 Average common shares outstanding - diluted (in thousands) 323,042 318,113 Return on average invested capital (“ROIC”) 19.3% 18.7% Debt/invested capital 59.7% 70.9% (3) See Management’s Discussion and Analysis for details. (1) Continuing operations (2) Amounts are attributable to H.J. Heinz Company Shareholders (3) Excludes 90 basis point impact of losses from discontinued operations About the Cover The cover of this year’s Annual Report features the new Heinz ® Ketchup PlantBottle. Under a landmark agreement, Heinz is manufacturing more sustainable, fully recyclable ketchup bottles using The Coca-Cola Company’s innovative PlantBottle technology. Unlike traditional plastic bottles, up to 30% of the material in the PlantBottle comes from a renewable source — plants. Heinz Ketchup will convert to PlantBottle packaging starting in the summer of 2011. *Please refer to the non-GAAP Performance Ratios at the end of this Annual Report for reconciliations of non-GAAP amounts.
OVERALL, HEINZ HAS DELIVERED A TOTAL SHAREHOLDER RETURN OF MORE THAN 46% OVER THE LAST FIVE FISCAL YEARS, THREE TIMES THE RETURN OF THE S&P 500. William R. Johnson Chairman, President and Chief Executive Officer ............ Dear Fellow Shareholder: I am pleased to report that your Company delivered Growing the Dividend record sales, net income and operating free cash flow (1) in Fiscal 2011 while completing key acquisitions in Brazil and China to accelerate our dynamic growth in Emerging Markets and expand our global reach. CAGR of 7.5% $1.40 $1.52 $1.66 $1.68 $1.80 $1.92 Guided by a focus on driving sustainable growth that benefits our shareholders, Heinz achieved: • Record sales of $10.7 billion, propelled by 12% sales growth in Emerging Markets as well as growth in our Top 15 brands and global ketchup; • Record net income of $990 million, an increase of more than 14% from the previous year; and • Record operating free cash flow of $1.26 billion. Earnings per share from continuing operations grew nearly 7% to $3.06 from $2.87 a year ago. Reflecting our focus on productivity and operating discipline, Heinz also delivered continued improvement in our gross margin and a return on invested capital of 19.3%. Our success in delivering consistent top-line growth and strong operating free cash flow totaling almost $6 billion since Fiscal 2006 has enhanced the strategic flexibility of Heinz and provided the financial resources to: • Increase investments in marketing and innovation to fuel the growth of our brands; $1.14 $1.20 $1.08 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12E • Complete global acquisitions that position Heinz for future growth; and • Raise the annualized Heinz common stock dividend for Fiscal 2012 by 12 cents to $1.92 per share, an increase of almost 7%. We have now increased the dividend by almost 80% since Fiscal 2004 and returned more than $3.5 billion to shareholders through dividend payments in that time span. Overall, Heinz has delivered a total shareholder return of more than 46% over the last five fiscal years, three times the return of the S&P 500. Our common stock price finished the fiscal year up 12%. The excellent results in Fiscal 2011 reflected continued strong execution of our proven plan to: • Accelerate Growth in Emerging Markets • Expand the Core Portfolio (1) Cash from operations less capital expenditures net of proceeds from disposal of PP&E. 1
Page 4 and 5: Emerging Markets % of Company Sales
Page 6 and 7: technology. The PlantBottle packagi
Page 8 and 9: [THIS PAGE INTENTIONALLY LEFT BLANK
Page 10 and 11: The Company also owns or leases off
Page 12 and 13: Name Age (as of August 30, 2011) Po
Page 14 and 15: Disruption of our supply chain coul
Page 16 and 17: The Company could incur more debt,
Page 18 and 19: obligation to publicly update or re
Page 20 and 21: Item 6. Selected Financial Data. Th
Page 22 and 23: In order to continue to drive susta
Page 24 and 25: Selling, general and administrative
Page 26 and 27: The volume reflects ongoing weaknes
Page 28 and 29: educed S&D, partially offset by inc
Page 30 and 31: $85 million for the fiscal year end
Page 32 and 33: At April 27, 2011, the Company had
Page 34 and 35: As of April 27, 2011, the Company w
Page 36 and 37: interest rate contracts and cross-c
Page 38 and 39: In December 2010, the FASB issued a
Page 40 and 41: Most of these assumptions vary sign
Page 42 and 43: Sensitivity of Assumptions If we as
Page 44 and 45: Item 8. Financial Statements and Su
Page 46 and 47: Report of Independent Registered Pu
Page 48 and 49: H. J. Heinz Company and Subsidiarie
Page 50 and 51: H. J. Heinz Company and Subsidiarie
Page 52 and 53:
H. J. Heinz Company and Subsidiarie
Page 54 and 55:
Inventories: Inventories are stated
Page 56 and 57:
Page 58 and 59:
Page 60 and 61:
Page 62 and 63:
Page 64 and 65:
Page 66 and 67:
Page 68 and 69:
Page 70 and 71:
Page 72 and 73:
Page 74 and 75:
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
(e) H. J. Heinz Company and Subsidi
Page 94 and 95:
Page 96 and 97:
Item 9. Changes in and Disagreement
Page 98 and 99:
(1) The Executive Deferred Compensa
Page 100 and 101:
(c) Indenture among H. J. Heinz Com
Page 102 and 103:
(xxvii) Form of Fiscal Year 2009 Re
Page 104 and 105:
SIGNATURES Pursuant to the requirem
Page 106 and 107:
Exhibit 31(b) I, Arthur B. Winklebl
Page 108 and 109:
Exhibit 32(b) Certification by the
Page 110 and 111:
PERFORMANCE GRAPH The following gra
Page 112 and 113:
Page 114 and 115:
CORPORATE DATA Heinz: H. J. Heinz C
Page 116:
H.J. Heinz Company P.O. Box 57 Pitt
show all

Download Annual Report PDF - Heinz

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?