Company Analysis of H.J. Heinz

Presented by Group C:Arby Artoonian, Jessica Thomas, Richard Orozco, Alex Fajardo &

Sam Hacopian

February 13, 2012

Heinz is a leading producer of ketchups world wide with over “57 varieties” of ketchup.◦ Other products: Frozen foods, soups, pastas, infant

formula & other foods◦ Their product reaches over 200 countries through

manufacturing plants in 6 continents Heinz’s product is sold & distributed through

its own sale organizations, independent brokers, agents & distributors to a variety of stores ranging from large wholesale stores to small convenience stores around the world.

H.J. Heinz the Company

Heinz products are top quality products due to extensive: sterilization, blending, fermentation, pasteurization, homogenization, chilling and many other factors. ◦ The company’s products are manufactured &

packaged to provide safe, wholesome foods for all consumers.

The company is supported by 35,000 employees who work hard on perfecting the product and developing new & nutritious foods for today’s families.

H.J. Heinz the Company-Continued

H.J. Heinz the Company-Continued

William Johnson Age Salary

Chairman,President,Chief Executive Officer 61 1,245,211

Theodore Bobby Age

Executive Vice President,General Counsel 59

David Moran Age Salary

Executive Vice President,Region Officer 52 662,345

C. O'Hara Age Salary

Executive Vice President,Region Officer 49 647,287

Arthur Winkleblack Age Salary

Executive Vice President,Chief Financial Officer 53 647,318

Key Executives

Supplier diversity is the self-proclaimed key to success for this company. This policy is extremely vital to the advantage of this company both internally and externally.◦ Five consumer segments: North America, Europe,

Asia-Pacific, Latin America, & Africa. Emerging Markets are driving the growth of

Heinz, which has solid growth platforms in Brazil, Russia, India, China and Indonesia.

External Factors

Revenues Operating Income

Report Date

04/27/2011 04/28/2010 04/29/2009 04/27/2011 04/28/2010 04/29/2009

Currency USD USD USD USD USD USD

Scale Thousands Thousands Thousands Thousands Thousands Thousands

North American Consumer Products

3,265,857 3,192,219 3,135,994 832,719 771,497 724,763

Europe 3,236,800 3,332,619 3,410,735 581,148 554,300 561,260

Asia/Pacific 2,320,789 2,007,252 1,627,443 221,580 195,261 182,472

U.S. Foodservice

1,413,456 1,429,511 1,505,953 175,977 150,628 129,209

Rest of World

469,686 533,382 467,957 53,371 69,219 52,348

Total 10,706,588 10,494,983 10,148,082 1,864,795 1,740,905 1,650,052

Heinz’s Performance

•Heinz have succeeded in the past 3 years due to its:

• High operating income

• High revenues

The company’s performance may be impacted by the changes in laws and regulations of food and drug laws in the U.S. and abroad.

Increased costs and availability of raw materials also can affect the financial status. Failure to put growth plans in affect can also add to the inability to increase net income and to generate cash.

Other major challenges facing Heinz in the past five years include the dependence on Wal-Mart for revenue, product recalls, presence in emerging markets, intense competition, stringent relations, and increased labor costs.

Major Challenges in the past 5 years

Kraft and Nestle are Heinz biggest competitors. Kraft is one of the biggest producers of food products in the U.S.

Strict regulations Increasing labor

costs

Major Challenges in the past 5 years

FY2006FY2007FY2008FY2009FY2010FY20110

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Cash of Operating Activities

Cash of Operating Activi-ties

Intense Competition Increase in Labor

Costs High reliance on

Wal-mart Product recalls Regulations

Major Challenges Heinz is currently facing

New products Keep strong and

dominant brand image

Grow in emerging markets

Managements Strategy to deal with current challenges

Heinz set out strategic plans

Heinz analyzed external environment

Set objective of acquiring international companies

Great financial growth over the years

Planning Process of HJ Heinz

Planning Process of HJ Heinz

If facing low sales and challenging competition expand your portfolio

Create a established brand name

Invest in marketing and R&D

Act fast to acquire opportunities in different markets.

Learning about planning from HJ Heinz