Attached files
file | filename |
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8-K - 8-K - HEINZ H J CO | d357776d8k.htm |
EX-99.3 - EX-99.3 - HEINZ H J CO | d357776dex993.htm |
EX-99.1 - EX-99.1 - HEINZ H J CO | d357776dex991.htm |
FY12
Analyst Day May 24, 2012
Exhibit 99.2 |
2
Q4 FY12
Financial Highlights |
3
P&L Scorecard
Q4 FY12
(1) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. (2) Excludes
currency translation versus FY11 average rates as well as current year currency translation hedges.
(U.S.$ MM)
Change B/(W)
Constant
Excluding
Special
Items
(1)
FY12
FY11
Change
Currency
(2)
Revenue
$3,050
$2,889
5.6%
6.9%
Gross Profit Margin
34.8%
36.3%
(1.5) pp
(1.4) pp
Marketing
$125
$117
(7.7%)
(9.9%)
Operating Income
$414
$387
6.9%
8.7%
Diluted EPS
$0.81
$0.69
17.4%
20.3%
Q4
A Strong Finish to the Year
A Strong Finish to the Year |
4
Currency Dynamics
Q4 FY12
(U.S. $ MM)
Q4 FY12
Constant
Q4
Q4
Forex
Currency
FY11
Excluding Special Items
(1)
FY12
Impact
Results
(2)
Results
Revenue
$3,050
$(39)
$3,089
$2,889
Gross Profit Margin
34.8%
(0.1)%
34.9%
36.3%
Marketing
$125
$(3)
$128
$117
Operating Income
$414
$(7)
$421
$387
NPBT
$343
$(10)
$353
$321
Diluted EPS
$0.81
$(0.02)
$0.83
$0.69
(1) Excludes charges for productivity initiatives related to severance, asset
write-offs and other implementation costs. (2) Excludes currency
translation versus FY11 average rates as well as FY12 currency translation hedges. |
5
Special Items
Q4 FY12
(U.S.$
MM)
Pre-Tax P&L Cost
COGS
SG&A OI
Severance costs
$18
$33
$51
Asset write-offs
19
0
19
Other implementation costs
22
21
43
Total Special Items
$59
$54
$113
Special Items Impact ($0.27) Per Share
Special Items Impact ($0.27) Per Share |
6
(U.S. $ MM)
Index
Constant
Excluding Special Items
(1)
FY12
FY11
Change
Currency
(2)
Net Sales
$3,050
$2,889
106
107
Gross Profit
1,062
1,050
101
103
% of Net Sales
34.8%
36.3%
Marketing
125
117
108
110
SG&A
522
546
96
97
Operating Income
414
387
107
109
Net Interest/Other Exp.
(71)
(66)
107
102
NPBT
343
321
107
110
Effective Tax Rate
23.2%
29.3%
HJH Income
$261
$224
117
120
Avg. Shares Outstanding
323
325
99
99
Diluted EPS
$0.81
117
120
P&L
Q4 FY12
(1) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. (2) Excludes
currency translation versus FY11 average rates as well as current year currency translation hedges.
Q4
0.69
$ |
7
Sales Drivers
Q4 FY12
(1)
Volume plus price.
FY12 results include the impact of two additional business days in Q4, which drove
an estimated 3% additional volume in the quarter. Volume/Mix
Price
Acquis./Divest.
Forex
Total
1.5%
3.0%
2.4%
(1.3%)
5.6% |
8
(U.S.$ MM)
(1) Volume plus price
(2) Excludes currency translation versus FY11 average rates.
B/(W) vs Prior Year:
Organic
(1)
5.3%
0.4%
3.1%
3.5%
39.5%
Constant Currency
(2)
5.3%
(1.8%)
3.1%
3.5%
115.0%
Reported
1.2%
(2.2%)
4.0%
3.5%
111.1%
Net Sales by Segment
Q4 FY12
17.0% Organic Growth
(1)
in Emerging Markets
17.0% Organic Growth
(1)
in Emerging Markets |
9
Gross Margin
Q4 FY12
(1) Excludes currency translation versus FY11 average rates.
(2) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. Favorable
+
Pricing
+
Productivity
Unfavorable
Commodities
Product Mix
FY11
Excluding Special Items
(2)
36.3%
FY12
FY12
Constant
Currency
(1)
34.9%
34.8% |
10
Commodity Costs
Q4 FY12
Market Inflation of ~4%
Sweeteners
Fruits/
Vegetables
Meat
Packaging |
11
Operating Income by Segment
Q4 FY12
B/(W) vs. Prior Year:
Constant Currency
(1)
(4.6%)
2.2%
38.4%
6.9%
34.0%
Reported
(5.0%)
(1.0%)
38.4%
5.3%
33.5%
(1)
Excludes currency translation versus FY11 average rates.
Note: All special items are reported in the Non-Operating segment.
(U.S.$ MM)
Constant Currency Operating Income Up 8.7%
Constant Currency Operating Income Up 8.7%
$192
$165
$52
$51
$22
N.A.
Consumer
Products
Europe
U.S.
Foodservice
Asia/Pacific
Rest of World |
12
Balance Sheet Scorecard
Q4 FY12
(1) Calculated using a two point balance sheet average.
(2) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. (3) Cash from
operations less capital expenditures net of proceeds from disposal of PP&E.
(4) Excludes cash paid for productivity initiatives related to severance and
other implementation costs and capital spending. (U.S.$ MM)
Q4
Change
FY12
FY11
B/(W)
Capex (% of Revenue)
4.7%
4.9%
20 bps
Cash Conversion Cycle (Days)
(1)(2)
40
40
-
Operating Free Cash Flow
(3)(4)
$667
$310
$357 |
13
(U.S.$ MM)
Q4
Total Company Reported
FY12
FY11
B/(W)
Net Income
$178
$227
($49)
Depreciation and Amortization
91
86
5
QOWC
423
75
349
Other Items
58
54
4
Cash Provided by Operating Activities
750
442
308
Capital Expenditures
(144)
(140)
(4)
Proceeds from Disposal of PP&E
3
8
(5)
Operating Free Cash Flow
$608
$310
$298
Acquisitions, net of divestitures
$3
($483)
$486
Dividends
($154)
($146)
($9)
Net Options Exercised
8
($44)
$52
Cash Flow
Q4 FY12
(1)
Cash from operations less capital expenditures net of proceeds from disposal of
PP&E. (2)
Excludes cash paid for productivity initiatives related to severance and other
implementation costs and capital spending. Operating Free Cash Flow
(1)
of $667 Excluding Special Items
(2)
Operating Free Cash Flow
(1)
of $667 Excluding Special Items
(2) |
14
Full Year 2012
Financial Highlights |
15
Full Year EPS Summary
FY12
(1) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. (2) Excludes
currency translation versus FY11 average rates as well as current year currency translation hedges.
Excluding Special
Items
(1)
Excluding Special
Items
(1)
Reported
Constant Currency
(2) |
16
Full Year P&L Scorecard
FY12
(1) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. (2) Excludes
currency translation versus FY11 average rates as well as current year currency translation hedges.
(U.S.$ MM)
Change B/(W)
Constant
Excluding Special Items
(1)
FY12
FY11
Change
Currency
(2)
Revenue
$11,649
$10,707
8.8%
7.0%
Gross Profit Margin
35.5%
36.9%
(1.4) pp
(1.3) pp
Marketing
$468
$427
(9.4%)
(8.0%)
Operating Income
$1,675
$1,648
1.7%
0.3%
Diluted EPS
$3.35
$3.06
9.5%
7.5%
YTD
Overcame Industry Gross Margin Pressure
While Investing in the Business
Overcame Industry Gross Margin Pressure
While Investing in the Business |
17
Currency Dynamics
FY12
(1) Excludes charges for productivity initiatives related to severance, asset
write-offs and other implementation costs. (2) Excludes currency
translation versus FY11 average rates as well as FY12 currency translation hedges.
(U.S. $ MM)
FY12
Constant
Forex
Currency
FY11
Excluding Special Items
(1)
FY12
Impact
Results
(2)
Results
Revenue
$11,649
$191
$11,459
$10,707
Gross Profit Margin
35.5%
(0.1)%
35.6%
36.9%
Marketing
$468
$6
$462
$427
Operating Income
$1,675
$22
$1,654
$1,648
NPBT
$1,408
$30
$1,378
$1,374
Diluted EPS
$3.35
$0.06
$3.29
$3.06 |
18
Full Year Special Items
FY12
(U.S.$
MM)
Pre-Tax P&L Cost
COGS
SG&A OI
Severance costs
$44
$46
$90
Asset write-offs
58
1
59
Other implementation costs
38
37
75
Total Special Items
$140
$84
$224
Special Items Impact ($0.50) Per Share
Special Items Impact ($0.50) Per Share |
19
Full Year P&L -
FY12
(1) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. (2) Excludes
currency translation versus FY11 average rates as well as current year currency translation hedges.
(U.S. $ MM)
Index
Constant
Excluding Special Items
(1)
FY12
FY11
Change
Currency
(2)
Net Sales
$11,649
$10,707
109
107
Gross Profit
4,139
3,953
105
103
% of Net Sales
35.5%
36.9%
Marketing
468
427
109
108
SG&A
1,996
1,877
106
105
Operating Income
1,675
1,648
102
100
Net Interest/Other Exp.
(268)
(274)
98
101
NPBT
1,408
1,374
102
100
Effective Tax Rate
21.7%
26.8%
HJH Income
$1,086
$990
110
108
Avg. Shares Outstanding
323
323
100
100
Diluted EPS
$3.35
$3.06
109
108
YTD |
20
Full Year Sales Drivers
FY12
(1)
Volume plus price.
FY12 results include the impact of two additional business days in Q4, which drove
an estimated 0.8% additional volume for the year. Volume/Mix
Price
Acquis./Divest.
Forex
Total |
21
(U.S.$ MM)
(1) Volume plus price.
(2) Excludes currency translation versus FY11 average rates.
B/(W) vs Prior Year:
Organic
(1)
4.3%
0.5%
2.2%
0.4%
33.4%
Constant Currency
(2)
4.3%
(1.0%)
5.3%
0.4%
110.0%
Reported
6.3%
(0.7%)
10.7%
0.4%
108.3%
Full Year Sales by Segment
FY12
16.4% Organic Growth
(1)
in Emerging Markets
16.4% Organic Growth
(1)
in Emerging Markets |
22
Full Year Gross Margin
FY12
(1) Excludes currency translation versus FY11 average rates.
(2) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. Favorable
+
Pricing
+
Productivity
Unfavorable
Commodities
Product Mix
Acquisitions
FY11
Excluding Special Items
(2)
36.9%
FY12
FY12
Constant
Currency
(1)
35.6%
35.5% |
23
Full Year Commodity Costs
FY12
Sweeteners
Resins
Meat
Dairy
Sweeteners
Resins
Meat
Dairy
Market Inflation of ~7% |
24
(U.S.$ MM)
Full Year Operating Income
FY12
(1)
Excludes currency translation versus FY11 average rates.
Note: All special items are reported in the Non-Operating segment.
B/(W) vs. Prior Year:
Constant Currency
(1)
(2.8%)
2.8%
(10.6%)
(5.5%)
97.5%
Reported
(2.5%)
4.8%
(6.9%)
(5.5%)
96.9%
Emerging Markets Are Driving Company Profit Growth
Emerging Markets Are Driving Company Profit Growth |
25
Full Year Balance Sheet Scorecard
FY12
(1) Calculated using a five point balance sheet average.
(2) Cash from operations less capital expenditures net of proceeds from
disposal of PP&E. (3) Total debt (long and short term) less cash
and cash equivalents, restricted cash, short-term investments and hedge accounting adjustments.
(4) EBITDA is H. J. Heinz Company Net Income before Interest, Taxes,
Depreciation and Amortization. (5) After-tax ROIC is based on
latest 12 month P&L and rolling 5-quarter average net invested capital.
(6) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. (7) Excludes
cash paid for productivity initiatives related to severance and other implementation costs and capital spending.
(U.S.$ MM)
YTD
Change
FY12
FY11
B/(W)
Capex (% of Revenue)
3.6%
3.1%
(50) bps
Cash Conversion Cycle (Days)
(1)(6)
42
42
0 days
Operating Free Cash Flow
(2)(7)
$1,206
$1,261
($55)
Net Debt
(3)
/ EBITDA
(4)(6)
1.8x
1.9x
0.1x
After-Tax ROIC
(5)(6)
19.2%
19.3%
(10) bps
FY12 ROIC Would Be 20.4%
Excluding Quero and Foodstar
FY12 ROIC Would Be 20.4%
Excluding Quero and Foodstar |
26
Full Year Working Capital and Debt
FY12
(1) Excludes hedge accounting adjustments
(2) FY12 includes $49 million of restricted cash. FY11 includes $10
million of restricted cash and $60 million of short-term investments.
(3) Excludes charges for productivity initiatives related to severance,
asset write-offs and other implementation costs. End of Period
Dollars 5 Point Average
(3)
Better /
Better /
(U.S.$ MM)
FY12
FY11
(Worse)
FY12
FY11
(Worse)
Trade Receivables
$816
$1,039
$223
28
28
-
Inventories
1,329
1,452
122
73
72
(1)
Trade Payables
1,202
1,338
(135)
59
58
1
QOWC/CCC
$943
$1,153
$210
42
42
-
Debt
Short-Term
$247
$1,535
$1,288
Long-Term
(1)
4,652
2,928
(1,724)
Less: Cash
(2)
1,379
794
585
Net Debt
$3,519
$3,668
$150 |
27
(U.S.$ MM)
Full Year
Total Company Reported
FY12
FY11
B/(W)
Net Income
$940
$1,006
($66)
Depreciation and Amortization
343
299
44
QOWC
160
61
99
Other Items
50
218
(168)
Cash Provided by Operating Activities
1,493
1,584
(91)
Capital Expenditures
(419)
(336)
(83)
Proceeds from Disposal of PP&E
10
13
(3)
Operating Free Cash Flow
$1,084
$1,261
($177)
Acquisitions, net of divestitures
$1
($616)
$617
Dividends
($619)
($580)
($39)
Net Purchase of Treasury Stock
($119)
$85
($204)
Full Year Cash Flow
FY12
(1)
Cash from operations less capital expenditures net of proceeds from disposal of
PP&E. (2)
Excludes cash paid for productivity initiatives related to severance and other
implementation costs and capital spending. Operating Free Cash Flow
(1)
of $1,206 Excluding Special Items
(2)
Operating Free Cash Flow
(1)
of $1,206 Excluding Special Items
(2) |
28
(1) Amounts
are
continuing
operations,
FY06
and
FY12
Net
Income
and
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) Volume
plus price. (4) Excludes cash paid for productivity initiatives
related to severance and other implementation costs and capital spending.
Sales
(1)
-
$MM
EPS
(1)
Operating Free Cash Flow
(2)
-
$MM
After-Tax ROIC
Historical Growth Summary
Reported Results ex Special Items |
|
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 Companys 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 | 2009 | 2010 | 2011 | 2012** | ||||||||||||||||||||||
Total Heinz (Continuing Operations): |
||||||||||||||||||||||||||||
Volume |
3.9 | % | 0.8 | % | 3.9 | % | (1.1 | %) | (1.3 | %) | 0.7 | % | (0.3 | %) | ||||||||||||||
Price |
(0.1 | %) | 2.2 | % | 3.5 | % | 7.1 | % | 3.4 | % | 1.2 | % | 3.8 | % | ||||||||||||||
Acquisition |
5.0 | % | 1.3 | % | 0.7 | % | 2.0 | % | 2.3 | % | 0.6 | % | 4.0 | % | ||||||||||||||
Divestiture |
(1.2 | %) | (3.1 | %) | (0.8 | %) | (0.1 | %) | (0.1 | %) | 0.0 | % | (0.5 | %) | ||||||||||||||
Exchange |
(1.4 | %) | 2.8 | % | 5.2 | % | (6.6 | %) | 0.5 | % | (0.5 | %) | 1.8 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Change in Net Sales |
6.1 | % | 3.9 | % | 12.3 | % | 1.3 | % | 4.8 | % | 2.0 | % | 8.8 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Organic Growth (a) |
3.8 | % | 3.0 | % | 7.4 | % | 6.0 | % | 2.1 | % | 1.9 | % | 3.5 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
Sales Variance Analysis
The following table illustrates the components of the change in net sales versus the prior year for each of the five reported business segments.
Fourth Quarter Ended April 29, 2012 | ||||||||||||||||||||||||||||||||||||||||
Volume | + | Price | = | Organic Sales Growth (a) |
+ | Acquisitions/ Divestitures |
= | Constant Currency (b) |
+ | Foreign Exchange |
= | Total Net Sales Change |
||||||||||||||||||||||||||||
Segment: |
||||||||||||||||||||||||||||||||||||||||
North American Consumer Products |
(1.7 | %) | 2.1 | % | 0.4 | % | (2.2 | %) | (1.8 | %) | (0.4 | %) | (2.2 | %) | ||||||||||||||||||||||||||
Europe |
1.6 | % | 3.7 | % | 5.3 | % | 0.0 | % | 5.3 | % | (4.1 | %) | 1.2 | % | ||||||||||||||||||||||||||
Asia/Pacific |
1.1 | % | 2.0 | % | 3.1 | % | 0.0 | % | 3.1 | % | 0.9 | % | 4.0 | % | ||||||||||||||||||||||||||
U.S. Foodservice |
1.2 | % | 2.3 | % | 3.5 | % | 0.0 | % | 3.5 | % | 0.0 | % | 3.5 | % | ||||||||||||||||||||||||||
Rest of World |
27.7 | % | 11.8 | % | 39.5 | % | 75.5 | % | 115.0 | % | (3.9 | %) | 111.1 | % | ||||||||||||||||||||||||||
Consolidated Totals |
1.5 | % | 3.0 | % | 4.5 | % | 2.4 | % | 6.9 | % | (1.3 | %) | 5.6 | % | ||||||||||||||||||||||||||
Fiscal Year Ended April 29, 2012 | ||||||||||||||||||||||||||||||||||||||||
Volume | + | Price | = | Organic Sales Growth (a) |
+ | Acquisitions/ Divestitures |
= | Constant Currency (b) |
+ | Foreign Exchange |
= | Total Net Sales Change |
||||||||||||||||||||||||||||
Segment: |
||||||||||||||||||||||||||||||||||||||||
North American Consumer Products |
(2.3 | %) | 2.8 | % | 0.5 | % | (1.6 | %) | (1.0 | %) | 0.3 | % | (0.7 | %) | ||||||||||||||||||||||||||
Europe |
0.6 | % | 3.7 | % | 4.3 | % | 0.0 | % | 4.3 | % | 1.9 | % | 6.3 | % | ||||||||||||||||||||||||||
Asia/Pacific |
(0.3 | %) | 2.5 | % | 2.2 | % | 3.1 | % | 5.3 | % | 5.4 | % | 10.7 | % | ||||||||||||||||||||||||||
U.S. Foodservice |
(2.2 | %) | 2.6 | % | 0.4 | % | 0.0 | % | 0.4 | % | 0.0 | % | 0.4 | % | ||||||||||||||||||||||||||
Rest of World |
11.9 | % | 21.5 | % | 33.4 | % | 76.6 | % | 110.0 | % | (1.7 | %) | 108.3 | % | ||||||||||||||||||||||||||
Consolidated Totals |
(0.3 | %) | 3.8 | % | 3.5 | % | 3.5 | % | 7.0 | % | 1.8 | % | 8.8 | % |
The following represents other organic sales growth and constant currency sales growth figures in this presentation:
Fourth Quarter Ended April 29, 2012 | ||||||||||||||||||||||
Organic Sales Growth (a) |
+ | Acquisitions/ Divestitures |
+ | Foreign Exchange |
= | Total Net Sales Change |
||||||||||||||||
Q4 FY12 Emerging Markets |
17.0 | % | 18.2 | % | (4.5 | %) | 30.7 | % | ||||||||||||||
Fiscal Year Ended April 29, 2012 | ||||||||||||||||||||||
Organic Sales Growth (a) |
+ | Acquisitions/ Divestitures |
+ | Foreign Exchange |
= | Total Net Sales Change |
||||||||||||||||
FY12 Emerging Markets |
16.4 | % | 24.9 | % | (0.4 | %) | 40.9 | % | ||||||||||||||
FY12 Top 15 Brands |
5.0 | % | 5.6 | % | 1.7 | % | 12.3 | % |
(a) | Organic sales growth is a non-GAAP measure that excludes the impact of foreign currency translation and acquisitions/divestitures. |
(b) | Constant currency sales growth is a non-GAAP measure that excludes the impact of foreign currency translation. |
(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 | ||
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|
(Totals may not add due to rounding)
H. J. Heinz Company
QTD Results Excluding Charges for Productivity Initiatives
The following tables reconcile the Companys reported results to results excluding charges for productivity initiatives in the current year in this presentation.
(amounts in thousands, except per share data) | Fourth Quarter Ended April 29, 2012 | |||||||||||
A Reported Results |
B Charges for Productivity Initiatives |
C=A-B Results Excluding Charges for Productivity Initiatives (1) |
||||||||||
Net Sales |
$ | 3,049,589 | | $ | 3,049,589 | |||||||
Gross Profit |
$ | 1,003,277 | ($ | 58,748 | ) | $ | 1,062,025 | |||||
Gross Profit Margin |
32.9 | % | (1.9 | %) | 34.8 | % | ||||||
Marketing |
$ | 125,476 | | $ | 125,476 | |||||||
SG&A |
$ | 576,387 | $ | 53,962 | $ | 522,425 | ||||||
Operating Income |
$ | 301,414 | ($ | 112,710 | ) | $ | 414,124 | |||||
Net Interest/Other Expenses |
($ | 70,810 | ) | | ($ | 70,810 | ) | |||||
NPBT |
$ | 230,604 | ($ | 112,710 | ) | $ | 343,314 | |||||
Effective tax rate |
23.0 | % | 23.6 | % | 23.2 | % | ||||||
H.J. Heinz Company Net Income |
$ | 175,342 | ($ | 86,123 | ) | $ | 261,465 | |||||
Diluted EPS |
$ | 0.54 | ($ | 0.27 | ) | $ | 0.81 | |||||
Cash Conversion Cycle |
39 | (1 | ) | 40 |
(amounts in thousands, except per share data) | Fourth Quarter Ended April 27, 2011 |
Change in
Results Excluding Charges for Productivity Initiatives (1) |
||||||
Reported Results |
||||||||
Net Sales |
$ | 2,888,790 | 5.6 | % | ||||
Gross Profit |
$ | 1,049,643 | 1.2 | % | ||||
Gross Profit Margin |
36.3 | % | (1.5 | )pp | ||||
Marketing |
$ | 116,511 | 7.7 | % | ||||
SG&A |
$ | 545,854 | (4.3 | %) | ||||
Operating Income |
$ | 387,278 | 6.9 | % | ||||
Net Interest/Other Expense |
($ | 66,445 | ) | 6.6 | % | |||
NPBT |
$ | 320,833 | 7.0 | % | ||||
H.J. Heinz Company Net Income |
$ | 223,863 | 16.8 | % | ||||
Diluted EPS |
$ | 0.69 | 17.4 | % |
(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
YTD Results Excluding Charges for Productivity Initiatives
The following tables reconcile the Companys reported results to results excluding charges for productivity initiatives in the current year in this presentation.
(amounts in thousands, except per share data) | Fiscal Year Ended April 29, 2012 | |||||||||||
A Reported Results |
B Charges for Productivity Initiatives |
C=A-B Results Excluding Charges for Productivity Initiatives (1) |
||||||||||
Net Sales |
$ | 11,649,079 | | $ | 11,649,079 | |||||||
Gross Profit |
$ | 3,999,530 | ($ | 139,830 | ) | $ | 4,139,360 | |||||
Gross Profit Margin |
34.3 | % | (1.2 | %) | 35.5 | % | ||||||
Marketing |
$ | 467,595 | | $ | 467,595 | |||||||
SG&A |
$ | 2,080,767 | $ | 84,487 | $ | 1,996,280 | ||||||
Operating Income |
$ | 1,451,168 | ($ | 224,317 | ) | $ | 1,675,485 | |||||
Net Interest/Other Expenses |
($ | 267,725 | ) | | ($ | 267,725 | ) | |||||
NPBT |
$ | 1,183,443 | ($ | 224,317 | ) | $ | 1,407,760 | |||||
Provision for income taxes |
$ | 243,535 | ($ | 61,444 | ) | $ | 304,979 | |||||
Effective tax rate |
20.6 | % | 27.4 | % | 21.7 | % | ||||||
H.J. Heinz Company Net Income |
$ | 923,159 | ($ | 162,874 | ) | $ | 1,086,033 | |||||
Diluted EPS |
$ | 2.85 | ($ | 0.50 | ) | $ | 3.35 | |||||
Trade Receivables (Days) |
28 | | 28 | |||||||||
Inventories (Days) |
71 | (2 | ) | 73 | ||||||||
Trade Payables (Days) |
58 | (1 | ) | 59 | ||||||||
Cash Conversion Cycle |
42 | | 42 | |||||||||
After-Tax ROIC |
16.8 | % | (2.4 | %) | 19.2 | % |
(amounts in thousands, except per share data) | Fiscal Year Ended April 27, 2011 |
Change in Results Excluding Charges for Productivity Initiatives (1) |
||||||
Reported Results | ||||||||
Net Sales |
$ | 10,706,588 | 8.8 | % | ||||
Gross Profit |
$ | 3,952,540 | 4.7 | % | ||||
Gross Profit Margin |
36.9 | % | (1.4 | ) pp | ||||
Marketing |
$ | 427,264 | 9.4 | % | ||||
SG&A |
$ | 1,877,086 | 6.3 | % | ||||
Operating Income |
$ | 1,648,190 | 1.7 | % | ||||
Net Interest/Other Expense |
($ | 274,021 | ) | (2.3 | %) | |||
NPBT |
$ | 1,374,169 | 2.4 | % | ||||
H.J. Heinz Company Net Income |
$ | 989,510 | 9.8 | % | ||||
Diluted EPS |
$ | 3.06 | 9.5 | % |
(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
QTD Constant Currency Results
The following tables reconcile the Companys results excluding charges for productivity initiatives to constant currency results for the current period in this presentation.
(amounts in thousands, except per share data) | Fourth Quarter Ended April 29, 2012 | |||||||||||||||
A Results Excluding Charges for Productivity Initiatives (1) |
B Currency Translation |
C Currency Translation Hedges |
D=A-B-C Constant Currency Results (2) |
|||||||||||||
Net Sales |
$ | 3,049,589 | ($ | 38,921 | ) | NA | $ | 3,088,510 | ||||||||
Gross Profit |
$ | 1,062,025 | ($ | 15,034 | ) | NA | $ | 1,077,059 | ||||||||
Gross Profit Margin |
34.8 | % | (0.1 | %) | NA | 34.9 | % | |||||||||
Marketing |
$ | 125,476 | ($ | 2,605 | ) | NA | $ | 128,081 | ||||||||
SG&A |
$ | 522,425 | ($ | 5,482 | ) | NA | $ | 527,907 | ||||||||
Operating Income |
$ | 414,124 | ($ | 6,947 | ) | NA | $ | 421,071 | ||||||||
Net Interest/Other Expenses |
($ | 70,810 | ) | ($ | 163 | ) | ($ | 2,592 | ) | ($ | 68,055 | ) | ||||
NPBT |
$ | 343,314 | ($ | 7,111 | ) | ($ | 2,592 | ) | $ | 353,017 | ||||||
H.J. Heinz Company Net Income |
$ | 261,465 | ($ | 5,788 | ) | ($ | 1,588 | ) | $ | 268,841 | ||||||
Diluted EPS |
$ | 0.81 | ($ | 0.02 | ) | $ | 0.00 | $ | 0.83 | |||||||
Segment Operating Income: |
||||||||||||||||
N.A. Consumer Products |
$ | 192,100 | ($ | 799 | ) | NA | $ | 192,899 | ||||||||
Europe |
$ | 165,223 | ($ | 5,282 | ) | NA | $ | 170,505 | ||||||||
Asia Pacific |
$ | 51,049 | ($ | 795 | ) | NA | $ | 51,844 | ||||||||
US Foodservice |
$ | 52,002 | | NA | $ | 52,002 | ||||||||||
Rest of World |
$ | 22,302 | ($ | 71 | ) | NA | $ | 22,373 |
(amounts in thousands, except per share data) | Fourth Quarter Ended April 27, 2011 |
|||||||
Reported Results | Constant Currency Change (3) |
|||||||
Net Sales |
$ | 2,888,790 | 6.9 | % | ||||
Gross Profit |
$ | 1,049,643 | 2.6 | % | ||||
Gross Profit Margin |
36.3 | % | (1.4 | ) pp | ||||
Marketing |
$ | 116,511 | 9.9 | % | ||||
SG&A |
$ | 545,854 | (3.3 | %) | ||||
Operating Income |
$ | 387,278 | 8.7 | % | ||||
Net Interest/Other Expense |
($ | 66,445 | ) | 2.4 | % | |||
NPBT |
$ | 320,833 | 10.0 | % | ||||
H.J. Heinz Company Net Income |
$ | 223,863 | 20.1 | % | ||||
Diluted EPS |
$ | 0.69 | 20.3 | % | ||||
Segment Operating Income: |
||||||||
N.A. Consumer Products |
$ | 202,233 | (4.6 | %) | ||||
Europe |
$ | 166,866 | 2.2 | % | ||||
Asia Pacific |
$ | 48,493 | 6.9 | % | ||||
US Foodservice |
$ | 37,584 | 38.4 | % | ||||
Rest of World |
$ | 16,702 | 34.0 | % |
(1) | See separate reconciliation and explanation of these figures compared to the reported amounts. |
(2) | Excludes currency translation versus FY11 average rates as well as current year currency translation hedges. |
(3) | Change is calculated by taking Q4 FY12 constant currency results versus the Q4 FY11 reported results. |
(Totals may not add due to rounding)
H. J. Heinz Company
YTD Constant Currency Results
The following tables reconcile the Companys results excluding charges for productivity initiatives to constant currency results for the current period in this presentation.
(amounts in thousands, except per share data) | Fiscal Year Ended April 29, 2012 | |||||||||||||||
A Results Excluding Charges for Productivity Initiatives (1) |
B Currency Translation |
C Currency Translation Hedges |
D=A-B-C Constant Currency Results (2) |
|||||||||||||
Net Sales |
$ | 11,649,079 | $ | 190,543 | NA | $ | 11,458,536 | |||||||||
Gross Profit |
$ | 4,139,360 | $ | 59,335 | NA | $ | 4,080,025 | |||||||||
Gross Profit Margin |
35.5 | % | (0.1 | %) | NA | 35.6 | % | |||||||||
Marketing |
$ | 467,595 | $ | 5,985 | NA | $ | 461,610 | |||||||||
SG&A |
$ | 1,996,280 | $ | 31,548 | NA | $ | 1,964,732 | |||||||||
Operating Income |
$ | 1,675,485 | $ | 21,802 | NA | $ | 1,653,683 | |||||||||
Net Interest/Other Expenses |
($ | 267,725 | ) | ($ | 776 | ) | $ | 8,815 | ($ | 275,764 | ) | |||||
NPBT |
$ | 1,407,760 | $ | 21,026 | $ | 8,815 | $ | 1,377,919 | ||||||||
H.J. Heinz Company Net Income |
$ | 1,086,033 | $ | 14,965 | $ | 5,399 | $ | 1,065,669 | ||||||||
Diluted EPS |
$ | 3.35 | $ | 0.05 | $ | 0.02 | $ | 3.29 | ||||||||
Segment Operating Income: |
||||||||||||||||
N.A. Consumer Products |
$ | 812,056 | $ | 2,569 | NA | $ | 809,487 | |||||||||
Europe |
$ | 608,829 | $ | 11,269 | NA | $ | 597,560 | |||||||||
Asia Pacific |
$ | 206,306 | $ | 8,315 | NA | $ | 197,991 | |||||||||
US Foodservice |
$ | 166,298 | | NA | $ | 166,298 | ||||||||||
Rest of World |
$ | 105,080 | ($ | 351 | ) | NA | $ | 105,431 |
(amounts in thousands, except per share data) | Fiscal Year Ended April 27, 2011 |
|||||||
Reported Results | Constant Currency Change (3) |
|||||||
Net Sales |
$ | 10,706,588 | 7.0 | % | ||||
Gross Profit |
$ | 3,952,540 | 3.2 | % | ||||
Gross Profit Margin |
36.9 | % | (1.3 | )pp | ||||
Marketing |
$ | 427,264 | 8.0 | % | ||||
SG&A |
$ | 1,877,086 | 4.7 | % | ||||
Operating Income |
$ | 1,648,190 | 0.3 | % | ||||
Net Interest/Other Expense |
($ | 274,021 | ) | 0.6 | % | |||
NPBT |
$ | 1,374,169 | 0.3 | % | ||||
H.J. Heinz Company Net Income |
$ | 989,510 | 7.7 | % | ||||
Diluted EPS |
$ | 3.06 | 7.5 | % | ||||
Segment Operating Income: |
||||||||
N.A. Consumer Products |
$ | 832,719 | (2.8 | %) | ||||
Europe |
$ | 581,148 | 2.8 | % | ||||
Asia Pacific |
$ | 221,580 | (10.6 | %) | ||||
US Foodservice |
$ | 175,977 | (5.5 | %) | ||||
Rest of World |
$ | 53,371 | 97.5 | % |
(1) | See separate reconciliation and explanation of these figures compared to the reported amounts. |
(2) | Excludes currency translation versus FY11 average rates as well as current year currency translation hedges. |
(3) | Change is calculated by taking FY12 constant currency results versus the FY11 reported results. |
(Totals may not add due to rounding)
H. J. Heinz Company
Operating Free Cash Flow
Total Company | Fourth Quarter Ended | Fiscal Year Ended | ||||||||||||||||||||||||||||||||||
(amounts in millions) | Fiscal Year Ended | April 29, 2012 FY 2012 |
April 27, 2011 FY 2011 |
April 29, 2012 FY 2012 |
April 27, 2011 FY 2011 |
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FY 2006 (2)(3) | FY 2007 (3) | FY 2008 (3) | FY 2009 (3) | FY 2010 (3) | ||||||||||||||||||||||||||||||||
Cash provided by operating activities |
$ | 1,075.0 | $ | 1,062.3 | $ | 1,188.3 | $ | 1,166.9 | $ | 1,262.2 | $ | 749.6 | $ | 442.1 | $ | 1,493.1 | $ | 1,583.6 | ||||||||||||||||||
Capital expenditures |
(230.6 | ) | (244.6 | ) | (301.6 | ) | (292.1 | ) | (277.6 | ) | (144.2 | ) | (140.4 | ) | (418.7 | ) | (335.6 | ) | ||||||||||||||||||
Proceeds from disposals of property, plant and equipment |
19.4 | 60.7 | 8.5 | 5.4 | 96.5 | 2.9 | 8.2 | 9.8 | 13.2 | |||||||||||||||||||||||||||
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Operating Free Cash Flow |
$ | 863.8 | $ | 878.4 | $ | 895.2 | $ | 880.2 | $ | 1,081.1 | $ | 608.3 | $ | 309.9 | $ | 1,084.2 | $ | 1,261.2 | ||||||||||||||||||
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Cash for productivity initiatives (1) |
$ | (59.3 | ) | $ | (121.9 | ) | ||||||||||||||||||||||||||||||
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Operating Free Cash Flow excluding special items |
$ | 667.6 | $ | 1,206.1 | ||||||||||||||||||||||||||||||||
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(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)
H.J. Heinz Company
Net Debt Calculation
(In Millions) |
April 29, 2012 FY 2012 |
April 27, 2011 FY 2011 |
||||||
Short-term debt |
$ | 46.5 | $ | 87.8 | ||||
Long-term debt, including current portion |
4,980.2 | 4,525.3 | ||||||
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Total debt |
5,026.7 | 4,613.1 | ||||||
Less: |
||||||||
Hedge accounting adjustments |
(128.4 | ) | (150.5 | ) | ||||
Cash and cash equivalents |
(1,330.4 | ) | (724.3 | ) | ||||
Short-term investments |
| (60.1 | ) | |||||
Restricted cash |
(49.0 | ) | (9.7 | ) | ||||
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|||||
Net Debt |
$ | 3,518.8 | $ | 3,668.3 | ||||
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(Totals may not add due to rounding)
H.J. Heinz Company
EBITDA and Net Debt/EBITDA
(In Millions) |
April 29, 2012 FY 2012 |
April 27, 2011 FY 2011 |
||||||
Net income attributable to H.J. Heinz Company excluding charges for productivity initiatives (1) |
$ | 1,086.0 | $ | 989.5 | ||||
Less: |
||||||||
Interest income |
(34.6 | ) | (22.6 | ) | ||||
Add: |
||||||||
Provision from income taxes excluding charges for productivity initiatives (1) |
305.0 | 368.2 | ||||||
Interest expense |
294.1 | 275.4 | ||||||
Depreciation |
295.7 | 255.2 | ||||||
Amortization |
47.1 | 43.4 | ||||||
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EBITDA |
$ | 1,993.3 | $ | 1,909.2 | ||||
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Annualized EBITDA |
1,993.3 | 1,909.2 | ||||||
Net Debt |
$ | 3,518.8 | $ | 3,668.3 | ||||
Net Debt/EBITDA |
1.8 | 1.9 | ||||||
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(1) | See separate reconciliation and explanation of these figures compared to the reported amounts. |
(Totals may not add due to rounding)