General Mills

A detailed review of our fiscal 2026 performance compared to fiscal 2025 appears below in the section titled “Fiscal 2026

Consolidated Results of Operations.” A detailed review of our fiscal 2025 performance compared to our fiscal 2024 performance is set

forth in Part II, Item 7 of our Form 10-K for the fiscal year ended May 25, 2025, under the caption “Management’s Discussion and

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Analysis of Financial Condition and Results of Operations – Fiscal 2025 Results of Consolidated Operations,” which is incorporated

herein by reference.

In an effort to help address input cost inflation, fund growth investments, and deliver accelerated profit and cash flow growth, we

expect to generate $3 billion in cumulative cost savings in the four years through fiscal 2030. Roughly $2 billion of this target is

expected to be generated through our ongoing HMM productivity program, equating to annual savings of approximately 4 percent of

cost of goods sold. The remaining $1 billion is expected to be generated by our global transformation initiative and other cost

efficiency efforts, including redesigning the supply chain network, further streamlining business processes, and driving improvement

across other elements of its cost base. These efforts will create a more agile and efficient structure that is better fit for future growth.

In fiscal 2027, we plan to continue advancing our Accelerate strategy and improving the remarkability of our brands. Our key

priorities are to strengthen our organic net sales growth, accelerate our enterprise transformation efforts, and drive disciplined capital

allocation and returns. Amid a continued challenging macroeconomic backdrop for consumers, we expect category growth to be

consistent with recent trends and below our long-term growth projections. With our price investments completed in fiscal 2026, our

plans in fiscal 2027 are focused on delivering product innovation and renovation news centered on the benefits that matter most to

today’s consumers, including better-for-you benefits like protein and fiber, bold flavors, and fun and indulgence, all of which should

help support stronger topline growth. We expect to generate at least $750 million in total savings toward the $3 billion target from

HMM, our global transformation initiative, and other cost savings actions, which will help offset our forecast for 4 to 5 percent input

cost inflation as well as our investments in brand remarkability. In addition to these factors, we expect headwinds of approximately 9

points on operating profit and 11 points on EPS in fiscal 2027 from lapping the 53rd week in fiscal 2026, normalizing corporate

incentive expense, and the impact of fiscal 2026 divestitures.

Based on these assumptions, our key full-year fiscal 2027 targets are summarized below:

•Organic net sales are expected to range between down 1.5 percent and up 0.5 percent.

•Adjusted operating profit is expected to be down 8 to 13 percent in constant-currency from the base of $2.8 billion reported in

fiscal 2026.

•Adjusted diluted EPS is expected to be between $3.00 and $3.20 per share, including an immaterial impact from foreign

currency exchange.

•Free cash flow conversion is expected to be approximately 95 percent of adjusted after-tax earnings.

See the “Non-GAAP Measures” section below for a description of our use of measures not defined by GAAP.

Certain terms used throughout this report are defined in a glossary in Item 8 of this report.

Adjusted measures exclude infrequently occurring items or items that, in management's judgment, significantly affect year-to-year assessment of operating results.

Adjusted operating profit margin is defined as operating profit adjusted for certain items affecting year-over-year comparability divided by net sales.

Adjusted operating profit margin. Operating profit adjusted for certain items affecting year-over-year comparability, divided by net

sales.

Constant currency. Financial results translated to United States dollars using constant foreign currency exchange rates based on the

rates in effect for the comparable prior-year period. To present this information, current period results for entities reporting in

currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the

corresponding period of the prior fiscal year, rather than the actual average exchange rates in effect during the current fiscal year.

Therefore, the foreign currency impact is equal to current year results in local currencies multiplied by the change in the average

foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

Amid a continued challenging macroeconomic backdrop for consumers, management expects category growth consistent with recent trends and below long-term growth projections.