79 TH Annual Shareholders Meeting

Transcription

1 79 TH Annual Shareholders Meeting

2 This presentation contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management s current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. In particular, our predictions about future net sales and earnings could be affected by a variety of factors, including: competitive dynamics in the consumer foods industry and the markets for our products, including new product introductions, advertising activities, pricing actions and promotional activities of our competitors; economic conditions, including changes in inflation rates, interest rates or tax rates; product development and innovation; consumer acceptance of new products and product improvements; consumer reaction to pricing actions and changes in promotion levels; acquisitions or dispositions of businesses or assets; changes in capital structure; changes in laws and regulations, including labeling and advertising regulations; impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets, or changes in the useful lives of other intangible assets; changes in accounting standards and the impact of significant accounting estimates; product quality and safety issues, including recalls and product liability; changes in customer demand for our products; effectiveness of advertising, marketing and promotional programs; changes in consumer behavior, trends and preferences, including weight loss trends; consumer perception of health-related issues, including obesity; consolidation in the retail environment; changes in purchasing and inventory levels of significant customers; fluctuations in the cost and availability of supply chain resources, including raw materials, packaging and energy; disruptions or inefficiencies in the supply chain; volatility in the market value of derivatives used to hedge price risk for certain commodities; benefit plan expenses due to changes in plan asset values and discount rates used to determine plan liabilities; failure of our information technology systems; resolution of uncertain income tax matters; foreign economic conditions, including currency rate fluctuations; and political unrest in foreign markets and economic uncertainty due to terrorism or war. The company undertakes no obligation to publicly revise any forward-looking statements to reflect any future events or circumstances

3 FISCAL 2007 RESULTS Net Sales Growth +6% Segment Operating Profit Growth* +7% Diluted Earnings per Share Growth +10% *Segment Operating Profit is a non-gaap measure defined in our Form 10-K

4 OFFSET COMMODITY & FUEL INFLATION Gross Margin +50 bps Segment Operating Margin* +20 bps 35.6% 36.1% 18.0% 18.2% F06 F07 F06 F07 *Segment Operating Profit Margin is a non-gaap measure defined in our Form 10-K

5 INCREASED CONSUMER MARKETING SPENDING +5% +8% F06 F

6 INVESTED TO SUPPORT FUTURE GROWTH & PRODUCTIVITY $460 Million in 2007 Yogurt Manufacturing Cereal Manufacturing Granola Bar Growth

7 INCREASED SHAREHOLDER DIVIDENDS Compound Annual Growth Rate = 9% $1.10 $1.24 $1.34 $1.44 $1.56 Current Yield = 2.7% F04 F05 F06 F07 F08 Annualized Rate

8 REPURCHASED SHARES (Average Diluted Shares Outstanding in Millions) F06 F

9 STOCK PRICE PERFORMANCE (Latest Fiscal Year) +16% $60.15 $51.79 May 26, 2006 May 25,

10 TOTAL RETURN TO SHAREHOLDERS (Share Price Appreciation Plus Dividends) Fiscal % Last 3 Years 12.3% (Compound Growth Rate)

11 LONG-TERM GROWTH MODEL Compound Growth Rate Net Sales Segment Operating Profit Diluted EPS Low Single-digit Mid Single-digit High Single-digit + Dividend Yield Total Shareholder Return Double-digit

12 LONG-TERM GOALS Deliver Superior Growth and Returns for Shareholders Rank as an Employer of Choice Provide High-quality Food Products for Consumers Make a Positive Impact on Our Communities and Our World

13 ATTRACTING AND RETAINING GREAT PEOPLE America s Most Admired Companies Fortune Magazine 100 Best Corporate Citizens Corporate Responsibility Officer Magazine Top 10 Companies for Supplier Diversity Hispanic Business Magazine Training Top 100 Training Magazine Best Companies for Multicultural Women Working Mother Magazine 40 Best Companies for Diversity Black Enterprise Magazine 50 Best Places to Launch a Career Business Week Global Top Company for Leaders Fortune Magazine

14 EARNED STRONG RETURN ON PENSION PLAN ASSETS F07 Return: 18% 10-yr Compound Annual Growth Rate = 11% Fiscal Year

15 INNOVATING TO MEET CONSUMER NEEDS Nutrition Convenience Taste

16 NUTRITIONAL IMPROVEMENTS ON U.S. RETAIL PRODUCTS % of Products Improved 40% 30% 16% 21% F05 F06 F Goal

17 NEW PRODUCTS WITH HEALTH BENEFITS Weight Management Targeted Health Concerns

18 MORE CONVENIENT PRODUCT OFFERINGS

19 COMMITMENT TO OUR COMMUNITIES Box Tops for Education Since 1998, Raised Over $200 Million for K-8 Schools Improving Youth Nutrition and Fitness Foundation Grants of $11 Million Since

20 COMMITMENT TO OUR COMMUNITIES Donated $50,000 to American Red Cross Twin Cities Chapter Donated $25,000 to Southern Minnesota Initiative Foundation Product Donations for Rescue Workers and Flood Victims

21 SUSTAINING OUR RESOURCES

22 GENERAL MILLS HAS HIGH STANDARDS FOR CORPORATE CITIZENSHIP Our Shareholders Our Employees Our Consumers Our World

23 FIRST QUARTER FISCAL 2008 FINANCIAL SUMMARY (As Reported, in Millions Except per Share Data) $ % Change Net Sales $3, % Segment Operating Profit* Diluted EPS *Segment Operating Profit is a non-gaap measure. See our 10-Q Report for Reconciliation

24 OPERATING REVIEW Ken Powell

25 GENERAL MILLS GROWTH DRIVERS Product Innovation Channel Expansion International Expansion Brand-building Investment Margin Expansion

26 U.S. RETAIL SEGMENT 2007 Net Sales = $8.5 Billion International Bakeries & Foodservice U.S. Retail 2007 Q Net Sales Growth +4% +6% Operating Profit Growth +5% +6%

27 BIG G 2007 PROGRESS F07 Net Sales +2% Maintained Market Share Cheerios Franchise Sales Grew

28 BIG G CEREAL RIGHT SIZE, RIGHT PRICE Low Single-digit Price Increase Better Align Box Size and Everyday Prices with Competing Products On-going Cost Savings Less Packaging Material More Efficient Truck Usage

29 BIG G CEREAL MOMENTUM Q1 F08 Net Sales +5% June July New Products Launching

30 YOPLAIT YOGURT MOMENTUM F07 Net Sales +6% Fiber and Probiotic Cultures DHA Omega 3 Less Sugar Carbonated Yogurt

31 GRAIN SNACKS MOMENTUM F07 Retail Sales = $470 Million Q1 F08 Retail Sales +39% Dollar Share in Measured Channels (Rolling 3 Months) 27.1% 24.8% Mar Apr May Jun Jul Aug AC Nielsen plus Wal-Mart; Share data is AC Nielsen Only

32 GRAIN SNACKS NEW PRODUCTS

33 PROGRESSO SOUP MOMENTUM F07 Retail Sales +10% Q1 F08 Retail Sales +16% New Progresso Light in Stores Now Source: AC Nielsen plus Wal-Mart

34 PILLSBURY USA GROWTH F07 Net Sales +3% Q1 F08 Retail Sales Growth Refrigerated Dough +4% Frozen Hot Snacks +6% Frozen Pizza +14% Toaster Strudel +21% Source: AC Nielsen plus Wal-Mart

35 BISQUICK GROWTH Retail Sales in Select Channels -5% +10% +10% F08 YTD F06 F07 Source: AC Nielsen plus Wal-Mart

36 U.S. RETAIL SEGMENT NET SALES BY DIVISION F07 % Change Q1 F08 Total U.S. Retail +4 % +6 % Snacks Baking Products Meals Pillsbury USA Big G Yoplait Small Planet Foods

37 GENERAL MILLS GROWTH DRIVERS Product Innovation Channel Expansion International Expansion Brand-building Investment Margin Expansion

38 CHANNEL EXPANSION Organic/Natural Stores Club Stores

39 BAKERIES & FOODSERVICE SEGMENT 2007 Net Sales = $1.8 Billion International U.S. Retail Bakeries & Foodservice 2007 Q Net Sales Growth +5% -1% Operating Profit Growth +28% +17%

40 BAKERIES AND FOODSERVICE GROWTH DRIVERS Breakfast Solutions Healthier Snacking Portfolio Back of House Branding Brand Innovation

41 BAKERIES & FOODSERVICE CONVENIENCE STORES Snacks and Cereal Pillsbury Sweet Minis

42 BAKERIES AND FOODSERVICE GROWTH DRIVERS Healthcare Lodging Fitness Centers Channel Expansion

43 INTERNATIONAL SEGMENT 2007 Net Sales = $2.1 Billion U.S. Retail International Bakeries & Foodservice 2007 Q Net Sales Growth +16% +19% Operating Profit Growth +11% +27%

44 INTERNATIONAL GROWTH PLATFORMS Super-premium Ice Cream World Cuisine Healthy Snacking

45 INTERNATIONAL CEREALS Canada Cereal Partners Worldwide Joint Venture

46 BRAND-BUILDING INVESTMENT (Growth in Consumer Marketing Expense) +5% +8% +7-9% F06 F07 F08 Target

47 TOTAL INPUT COST INFLATION 6% 5% 4% 5% F05 F06 F07 F08 Plan Assumption Includes Raw Materials, Energy, Labor Expense, Carrier Rates, Storage and Handling

48 RECENT PRICING ACTIONS (Calendar 2007 YTD) Low Single-digit Increase in Cereal Mid Single-digit Increase in Yogurt Mid Single-digit Increase in Bakeries & Foodservice Pricing on Selected SKUs in: Baking Products Green Giant Vegetables Progresso Soup Small Planet Foods

49 MARGIN EXPANSION LEVERS Sales Mix Opportunities SKU Rationalization Trade Spending Efficiency Product Simplification Technology Investment

50 2008 OPERATING PERFORMANCE KEY OBJECTIVES Drive Net Sales Growth with Volume Gains, Mix and Price Realization Fuel Continued Channel Expansion Sustain Sales and Profit Growth in International Businesses Maintain Focus on Holistic Margin Management Reinvest in Consumer-directed Marketing

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52 PRODUCT INNOVATION FIBER ONE BARS Champions Martin Abrams Thomas Andersen Janet Boyle Christian Fitchett

53 PRODUCT INNOVATION HÄAGEN-DAZS DOLCE DESSERTS Champion Takuya Nakanishi

54 PRODUCT INNOVATION PILLSBURY PLACE & BAKE MUFFINS Champions Vincent Comeau Jerri Jackson Yang Kou Cory Sparks Tim Trainor Abbie Willing

55 BRAND BUILDING BEST LIFE DIET PROMOTION Champions Debbie Garcia Andy Haversack Jennifer Kalinowski Lauren Mehler Mike Murray Dave Wagner

56 CHANNEL EXPANSION DOLLAR GENERAL Champions Matt Bennett Kelly LaBounty Mark Sisson Jim Sweeney

57 MARGIN EXPANSION PILLSBURY USA PRODUCTIVITY Champions Kurt Johnson Paul Luna Scott Marcoux Joana Montenegro Dan Wendt

58 PURCHASING OPTIMIZATION $300 MILLION IN MINORITY SUPPLIER SPENDING Champions Diego Osuna Jon Russett Bill Vollink Paula West

59 CHAMPIONSHIP COMMITMENT PROJECT MALAWI Champions Dorothea Higgins Karalyn Littlefield Bob Sutton Tamara Sitts Donna Svendsen

60 79 TH Annual Shareholders Meeting