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## Dividends per Share 

(dollars) 

Dividends to General Mills shareholders grew at a 9 percent compound annual rate over the past four years. The new annualized dividend rate for fiscal 2011 represents a 17 percent increase. 

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activities and resources that drive ongoing net sales growth. This included additional advertising investment, robust new product launches, and new or enhanced sales capabilities. 

Even with this strong reinvestment in our business, we delivered double-digit earnings growth. Our good fi nancial performance was reflected in solid price appreciation for our stock in 2010, and we increased our dividend 12 percent. In total, stock price appreciation plus dividends resulted in a 43 percent total return to General Mills shareholders for the year. This exceeded our peer group’s performance, and was double the S&P 500 Index’s return of 21 percent. 

As we look ahead, we see excellent prospects for General Mills to build on our long-term record of generating superior returns to shareholders. We remain committed to our long-term growth model, which is shown in the table below. We believe it focuses our organization on delivering consistent, high-quality sales and earnings growth. 

## General Mills Long-term Growth Model 

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We expect fiscal 2011 to be another good year, contributing to these long-term performance goals. Our plans call for low single-digit net sales growth, led by volume increases. We 

## Total Returns to Shareholders 

 (change in stock price plus reinvested dividends) 

Dividends and stock price appreciation combined to generate a 43 percent return to General Mills shareholders in fiscal 2010. Over the most recent three years—a period of signifi cant equity market volatility—total return to GIS shareholders has averaged nearly 9 percent per year, well above the returns generated by the packaged foods group and the overall market. 

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expect segment operating profit to grow faster than sales, increasing at a mid single-digit pace. And we’re targeting high single-digit earnings per share growth before any mark-to- market eff ects. 

We have tremendous strengths to build on in fiscal 2011 and beyond. Our brands hold leading market positions in categories that are on-trend with growing consumer groups: the world’s baby-boom generation, many of whom are over age 55 today; the millennial generation, ages 16 to 33; and multicultural consumers of all ages. We have a sustainable business model, in which our gross margins generate funds to reinvest in product innova- tion and marketing efforts that drive sales growth. 

We remain focused on five key business drivers that fuel our overall success. They are: 

• Innovation 

• Brand building 

• Leading customer growth 

• International expansion 

• Margin expansion 

We’re innovating to improve our established brands and to create successful new products. Back in 2005, we challenged ourselves to improve the health credentials of our brands. As of fiscal 2010, U.S. Retail brands accounting for 60 percent of segment sales have been improved. We also had a strong lineup of successful new product introductions in 2010, including Chocolate Cheerios , Yoplait Delights  yogurt parfaits, Wanchai Ferry frozen entrees, and Betty Crocker  gluten free dessert mixes. 

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