HEINZ

Fiscal 2003 was a generally positive and productive year for Heinz, it improved their global portfolio of
brands and better positioned their company against goals of sustainable growth and shareholder value. The year
experienced successful spin-off and merger of their North American pet food and tuna businesses and their U.S
retail soup and baby food businesses with Del Monte
Corporation. This transaction, which was outlined in last year’s Annual Report and completed just five months later
greatly reduced their debt, resulted in improved margins and generally repositioned Heinz to capitalize on its
stronger core global brands.

 The vision for HIENZ articulated by chairman and CEO William R.Johnson is sufficiently clear and well
defined. The key goals which were outlined in last years annual report was just completed 5 months later
after it was been stated, which proves his efficiency towards accomplishment of stated goals.

 Company’s objectives are well stated and appropriate

Strategy that Johnson outlined for the company was based on Four Imperatives:

DRIVE PROFITABLE GROWTH: through superior products and

Packaging, everyday price/value, accelerated innovation and creative marketing.

REMOVE THE CLUTTER through simplified business structure, Improved accountability and greater focus in our
portfolio through continued reduction of marginal SKUs and non-core businesses and assets.
SQUEEZE OUT COSTS
SQUEZZ OUT COST: through reduced fixed costs, a more productive supply chain, improved cash management and
greater efficiency in working capital and capital expenditures.

MEASURE AND RECOGNIZE PERFORMANCE through a balanced scorecard that aligns management
compensation to key financial and non-financial indicators based on the ultimate goal of building sustainable
earnings growth..

YES, I would be satisfied with what Johnson has told about the company’s direction performance targets and
strategy. Because of company ability to execute successfully against its strategy of strengthening its core brands and
businesses worldwide.
Going forward, Heinz’s growth strategy is based on dividend still offers an attractive yield above 3%—better than
the industry average and in the top 20% of the S&P 500. Company stated intent to pay out 45%–50% of earnings to
shareholders in the form of dividends.
Shareholder return has increased approximately 17%.Being a shareholder I I am truly snd completely satisfied with
company’s performance.

SUBMITTED BY:
RITU SISODIA (91153)