Worldreginfo - 9F42ff8c-249F-4E90-8402-0357A7632609 Financial Highlights*
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H.J. Heinz Company P.O. Box 57 Pittsburgh, PA 15230-0057 412-456-5700 www.heinz.com WorldReginfo - 9f42ff8c-249f-4e90-8402-0357a7632609 Financial Highlights* OPERATING FREE EPS(1) SALES(1) — $MM CASH FLOW(2) — $MM $5.9 Billion Average Organic(4) CAGR(3) of 8.2% Since FY06 Growth 4.0% $3.06 $1,261 $10,707 $8,470 $2.06 $864 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% (3) Debt/invested capital 59.7% 70.9% 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 Heinz will publish our 2011 Corporate Social Responsibility Report this fall. The report reviews the Company’s social, economic and environmental About the Cover impact and performance over the last two fiscal years. The report will be The cover of this year’s Annual Report features the new Heinz® Ketchup available online at www.heinz.com. 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. 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OVERALL, HEINZ HAS ............................................................................................. ............................................................................................. ............................................................................................. DELIVERED A TOTAL ............................................................................................. ............................................................................................. ............................................................................................. SHAREHOLDER RETURN ............................................................................................. ............................................................................................. OF MORE THAN 46% ............................................................................................. ............................................................................................. ............................................................................................. OVER THE LAST FIVE ............................................................................................. ............................................................................................. ............................................................................................. FISCAL YEARS, THREE ............................................................................................. ............................................................................................. TIMES THE RETURN OF ............................................................................................. William R. Johnson ............................................................................................. Chairman, President and ............................................................................................. THE S&P 500. Chief Executive Officer ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. ............................................................................................. Dear Fellow Shareholder: Growing the Dividend I am pleased to report that your Company delivered record sales, net income and operating free cash flow(1) $1.92 $1.80 in Fiscal 2011 while completing key acquisitions in Brazil CAGR of 7.5% $1.68 $1.66 and China to accelerate our dynamic growth in Emerging $1.52 Markets and expand our global reach. $1.40 $1.20 $1.14 Guided by a focus on driving sustainable growth that $1.08 benefits our shareholders, Heinz achieved: • Record sales of $10.7 billion, propelled by 12% sales FY 04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12E growth in Emerging Markets as well as growth in our Top 15 brands and global ketchup; • Complete global acquisitions that position Heinz for • Record net income of $990 million, an increase of more future growth; and than 14% from the previous year; and • Raise the annualized Heinz common stock dividend for • Record operating free cash flow of $1.26 billion. Fiscal 2012 by 12 cents to $1.92 per share, an increase of almost 7%. We have now increased the dividend by Earnings per share from continuing operations grew almost 80% since Fiscal 2004 and returned more than nearly 7% to $3.06 from $2.87 a year ago. Reflecting our $3.5 billion to shareholders through dividend payments focus on productivity and operating discipline, Heinz also in that time span. delivered continued improvement in our gross margin and a return on invested capital of 19.3%. Overall, Heinz has delivered a total shareholder return of more than 46% over the last five fiscal years, three Our success in delivering consistent top-line growth times the return of the S&P 500. Our common stock price and strong operating free cash flow totaling almost finished the fiscal year up 12%. $6 billion since Fiscal 2006 has enhanced the strategic flexibility of Heinz and provided the financial The excellent results in Fiscal 2011 reflected continued resources to: strong execution of our proven plan to: • Increase investments in marketing and innovation to • Accelerate Growth in Emerging Markets fuel the growth of our brands; • Expand the Core Portfolio (1) Cash from operations less capital expenditures net of proceeds from disposal of PP&E. 1 WorldReginfo - 9f42ff8c-249f-4e90-8402-0357a7632609 Emerging Markets % Marketing Investment — $MM Fiscal 2011 Results of Company Sales 20% Increase of Reported Sales $10.7 billion Almost 60% Constant Currency 16% +2.6% Sales Growth(1) ............................................................................................. $427 ............................................................................................. ............................................................................................. Op. Free Cash Flow(2) $1.26 billion ............................................................................................. $269 ............................................................................................. ............................................................................................. ............................................................................................. After-Tax ROIC 19.3% ............................................................................................