ANYTIMEkANYPLACEkANYWHERE - Heinz

HIGHLIGHTS
H.J. Heinz Company and Subsidiaries
2000 1999 1998
(Dollars in thousands, except per share amounts) (53 Weeks) (52 Weeks) (52 Weeks)
Sales $9,407,949 $9,299,610 $9,209,284
Operating income 1,733,099 1,109,312 1,520,330
Net income 890,553 474,341 801,566
Per common share amounts:
Net income – diluted $ 2.47 $ 1.29 $ 2.15
Cash dividends 1.44 1 ⁄ 2 1.34 1 ⁄4 1.23 1 ⁄2
Book value 4.59 5.02 6.10
Capital expenditures $ 452,444 $ 316,723 $ 373,754
Depreciation and amortization expense 306,483 302,212 313,622
Property, plant and equipment, net 2,358,753 2,171,024 2,394,662
Cash, cash equivalents and short-term investments $ 154,129 $ 123,121 $ 99,398
Operating working capital 1,066,325 881,542 762,474
Total debt 4,112,401 3,376,413 3,107,903
Shareholders’ equity 1,595,856 1,803,004 2,216,516
Average common shares outstanding – diluted 360,095,455 367,830,419 372,952,851
Current ratio 1.49 1.04 1.24
Debt/invested capital 72.0% 65.2% 58.4%
Pretax return on average invested capital 31.4% 20.4% 26.4%
Return on average shareholders’ equity 52.4% 23.6% 34.4%
(Note: All earnings per share amounts are on an after-tax diluted basis.)
The 2000 results include net restructuring and implementation costs of $392.7 million pretax ($0.74 per share) for Operation Excel,
a pretax contribution of $30.0 million ($0.05 per share) to the H.J. Heinz Company Foundation, costs related to Ecuador of $20.0 million
pretax ($0.05 per share), a gain of $464.6 million pretax ($0.72 per share) on the sale of the Weight Watchers classroom business and
a gain of $18.2 million pretax ($0.03 per share) on the sale of an office building in the U.K.
The 1999 results include restructuring and implementation costs of $552.8 million pretax ($1.11 per share) for Operation Excel and costs of
$22.3 million pretax ($0.04 per share) related to the implementation of Project Millennia, offset by the reversal of unutilized Project Millennia
accruals for severance and exit costs of $25.7 million pretax ($0.04 per share) and a gain of $5.7 million pretax on the sale of the bakery
products unit.
The 1998 results include costs of $84.1 million pretax ($0.14 per share) related to the implementation of Project Millennia, offset by the gain
on the sale of the Ore-Ida frozen foodservice business, $96.6 million pretax ($0.14 per share).
HEINZ: A SUPERIOR PERFORMER
K Earnings per share have increased by a
compound annual growth rate of more than
10% for the past four years.
K Operating margins increased over the past four
years to 18.2% from 14.1%.
K Five of Heinz’s seven key global businesses
recorded compound annual growth rates of
5–12% per year for the past three years.
K Heinz owns a focused portfolio of number-one
and number-two brands. Approximately 80% of
global sales stem from 40 well-known brands,
ranging from the $3 billion Heinz mega-label to
the fast-growing Glucon-D beverage in India.