Heinz Chairman Tells Shareholders the Company Expects to Report Strong First-Quarter Results with EPS of $0.87

  Heinz Chairman Tells Shareholders the Company Expects to Report Strong
  First-Quarter Results with EPS of $0.87

Business Wire

PITTSBURGH -- August 28, 2012

At the H.J. Heinz Company (NYSE: HNZ) Annual Meeting of Shareholders today,
Chairman, President and CEO William R. Johnson said the Company expects to
report “strong first-quarter results,” including:

  *Organic sales growth (volume plus price) of almost 5%, marking the
    Company’s 29^th consecutive quarter of organic top-line growth;
  *Net income growth of 10% from continuing operations and 15% on a constant
    currency basis, excluding productivity charges a year ago;
  *Higher earnings per share of $0.87, an increase of more than 10% from
    continuing operations, excluding productivity charges a year ago.

Mr. Johnson said the expected first-quarter results would reflect “dynamic
growth in Emerging Markets as well as improved productivity, higher margins
and a favorable tax rate.”

He noted that Heinz achieved growth in earnings per share in the quarter
“despite the headwinds of a still weak economy and adverse foreign currency
trends that reduced EPS by around four cents.”

“Overall, our strong first-quarter results put Heinz on track to deliver our
previously announced outlook for Fiscal 2013,” Mr. Johnson told shareholders
at the meeting in Pittsburgh.

Heinz will report its first-quarter results on August 29.

Reconciliations of non-GAAP amounts are set forth in the attached financial
tables. Results excluding charges for productivity initiatives in FY12
represent the Company’s reported results adjusted to exclude charges for
workforce reductions, factory closures and other implementation costs taken in
Fiscal 2012 to accelerate growth. Organic sales are defined as volume plus
price or total sales growth excluding the impact of foreign exchange and
acquisitions and divestitures. Also, constant currency as used in this press
release is defined as the reported amount adjusted for translation(the effect
of changes in average foreign exchange rates between the current period and
the corresponding prior year) and theimpact of current-year foreign currency
translation hedges.


Mr. Johnson said Heinz delivered “excellent Fiscal 2012 results” and that the
Company is “off to a strong start” in Fiscal 2013 “despite the weak global

“In my opinion, few companies can match our track record of consistent growth
and performance,” he said. “Despite the lingering impact of the worst
recession in decades and a lethargic recovery in the U.S. and Western Europe,
Heinz has delivered a remarkable 28 consecutive quarters of organic sales
growth through the end of Fiscal 2012.”

Mr. Johnson said Heinz is “focused on driving the growth of Ketchup & Sauces,
our crown jewel, our founder’s legacy and our largest and fastest-growing core

He added: “Emerging Markets contributed almost one-quarter of our total
Ketchup & Sauces revenue in Fiscal 2012 and I expect that to grow dramatically
in the years to come.”


This press release and our other public pronouncements contain forward-looking
statements within the meaning of the “safe harbor” provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements are
generally identified by the words “will,” “expects,” “anticipates,”
“believes,” “estimates” or similar expressions and include our expectations as
to future revenue growth, earnings, capital expenditures and other spending,
dividend policy, and planned credit rating, as well as anticipated reductions
in spending. These forward-looking statements reflect management’s view of
future events and financial performance. These statements are subject to
risks, uncertainties, assumptions and other important factors, many of which
may be beyond Heinz’s control, and could cause actual results to differ
materially from those expressed or implied in these forward-looking
statements. Factors that could cause actual results to differ from such
statements include, but are not limited to:

  *sales, volume, earnings, or cash flow growth,
  *general economic, political, and industry conditions, including those that
    could impact consumer spending,
  *competitive conditions, which affect, among other things, customer
    preferences and the pricing of products, production, and energy costs,
  *competition from lower-priced private label brands,
  *increases in the cost and restrictions on the availability of raw
    materials, including agricultural commodities and packaging materials, the
    ability to increase product prices in response, and the impact on
  *the ability to identify and anticipate and respond through innovation to
    consumer trends,
  *the need for product recalls,
  *the ability to maintain favorable supplier and customer relationships, and
    the financial viability of those suppliers and customers,
  *currency valuations and devaluations and interest rate fluctuations,
  *changes in credit ratings, leverage, and economic conditions and the
    impact of these factors on our cost of borrowing and access to capital
  *our ability to effectuate our strategy, including our continued evaluation
    of potential opportunities, such as strategic acquisitions, joint
    ventures, divestitures, and other initiatives, our ability to identify,
    finance, and complete these transactions and other initiatives, and our
    ability to realize anticipated benefits from them,
  *the ability to successfully complete cost reduction programs and increase
  *the ability to effectively integrate acquired businesses,
  *new products, packaging innovations, and product mix,
  *the effectiveness of advertising, marketing, and promotional programs,
  *supply chain efficiency,
  *cash flow initiatives,
  *risks inherent in litigation, including tax litigation,
  *the ability to further penetrate and grow and the risk of doing business
    in international markets, particularly our emerging markets; economic or
    political instability in those markets, strikes, nationalization, and the
    performance of business in hyperinflationary environments, in each case
    such as Venezuela; and the uncertain global macroeconomic environment and
    sovereign debt issues, particularly in Europe,
  *changes in estimates in critical accounting judgments and changes in laws
    and regulations, including tax laws,
  *the success of tax planning strategies,
  *the possibility of increased pension expense and contributions and other
    people-related costs,
  *the potential adverse impact of natural disasters, such as flooding and
    crop failures, and the potential impact of climate change,
  *the ability to implement new information systems, potential disruptions
    due to failures in information technology systems, and risks associated
    with social media,
  *with regard to dividends, dividends must be declared by the Board of
    Directors and will be subject to certain legal requirements being met at
    the time of declaration, as well as our Board’s view of our anticipated
    cash needs, and
  *other factors described in “Risk Factors” and “Cautionary Statement
    Relevant to Forward-Looking Information” in the Company’s Annual Report on
    Form 10-K for the fiscal year ended April 29, 2012 and reports on Forms
    10-Q thereafter.

The forward-looking statements are and will be based on management’s then
current views and assumptions regarding future events and speak only as of
their dates. The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by the securities laws.

ABOUT HEINZ: H.J. Heinz Company, offering “Good Food Every Day”™ is one of the
world’s leading marketers and producers of healthy, convenient and affordable
foods specializing in ketchup, sauces, meals, soups, snacks and infant
nutrition. Heinz provides superior quality, taste and nutrition for all eating
occasions whether in the home, restaurants, the office or “on-the-go.” Heinz
is a global family of leading branded products, including Heinz® Ketchup,
sauces, soups, beans, pasta and infant foods (representing over one third of
Heinz’s total sales), Ore-Ida® potato products, Weight Watchers® Smart Ones®
entrees, T.G.I. Friday’s® snacks, and Plasmon infant nutrition. Heinz is
famous for its iconic brands on six continents, showcased by Heinz® Ketchup,
The World’s Favorite Ketchup®.

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 table provides the calculation
of the non-GAAP performance ratios discussed in this press release:
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.
(amounts in       First Quarter                    Change in
thousands, except Ended                            Results
per share data)   July 29, 2012
                                                   Excluding FY 12
(Continuing       Expected                         Charges for
Operations)       Results                          Productivity
                                                   Initiatives (1)
H.J. Heinz
Company Net       ~ $280,000                       ~ 10%
Diluted EPS       ~ $0.87                          ~ 10%
(amounts in
thousands, except First Quarter Ended July 27, 2011
per share data)
(Continuing       A                 B              C=A-B
                                   Charges for    Results
                  Reported          Productivity   Charges for
                  Results           Initiatives    Productivity
                                                   Initiatives (1)
H.J. Heinz
Company Net       $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 First Quarter Ended July 29, 2012
per share data)
(Continuing       A                 B              C               D=A-B-C
                  Expected          Currency       Translation     Constant
                  Results           Translation    Hedges          Results (2)
H.J. Heinz
Company Net       ~ $280,000        ~ ($18,000)    ~ $4,000        ~ $294,000
(amounts in       First Quarter
thousands, except Ended
per share data)
                  July 27, 2011
(Continuing       Results Excluding                Constant
Operations)                                        Currency
                  Charges for
                  Productivity                     Change (3)
                  Initiatives (1)
H.J. Heinz
Company Net       $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
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
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     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%
in Net Sales
Organic          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%
Growth (a)
                                              Q111    Q211    Q311     Q411     2011       Q112    Q212    Q312    Q412    2012**
Total Heinz
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                                  1.6%    (1.2%)  1.5%     6.0%     2.0%       14.9%   8.3%    7.2%    5.6%    8.8%
in Net Sales
Organic                                       3.6%    0.9%    1.7%     1.6%     1.9%       3.1%    1.5%    4.6%    4.5%    3.5%
Growth (a)
Total Heinz
(Continuing                                   Q113
Volume                                        ~ 2.5%
Price                                         ~ 2.5%
Acquisition                                   0.0%
Divestiture                                   ~
Exchange                                      ~
Total Change                                  ~
in Net Sales                                  (1.5)%
Organic                                       ~ 5.0%
Growth (a)

(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
Michael Mullen, 412-456-5751
Margaret Nollen, 412-456-1048
Mary Ann Bell, 412-237-9760
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