FISCAL 2018 ANNUAL REPORT Fiscal 2018 Financial Highlights Change In millions, except per share and 52 weeks ended 52 weeks ended on a constant- profit margin data May 27, 2018 May 28, 2017 Change currency basis* Net Sales $ 15,740 $ 15,620 1% Organic Net Sales* Flat Operating Profit $ 2,509 $ 2,566 (2%) Total Segment Operating Profit* $ 2,792 $ 2,953 (5%) (6%) Operating Profit Margin 15.9% 16.4% -50 basis points Adjusted Operating Profit Margin* 17.2% 18.1% -90 basis points Net Earnings Attributable to General Mills $ 2,131 $ 1,658 29% Diluted Earnings per Share (EPS) $ 3.64 $ 2.77 31% Adjusted Diluted EPS, Excluding Certain $ 3.11 $ 3.08 1% Flat Items Affecting Comparability* Average Diluted Shares Outstanding 586 598 (2%) Dividends per Share $ 1.96 $ 1.92 2% Net Sales Total Segment Adjusted Diluted Free Cash Flow* Dollars in millions Operating Profit* Earnings per Share* Dollars in millions Dollars in millions Dollars $3.11 $3,154 $17,910 $2,218 $17,630 $3,035 $3,000 $3.08 $2,953 $16,563 $2,035 $2,792 $1,959 $15,740 $15,620 $1,936 $1,731 $2.92 $2.86 $2.82 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 *See page 45 of form 10-K herein for discussion of non-GAAP measures. Fiscal 2018 Net Sales $15.7 Billion Total Company Net Sales by Product Platform Total Company Net Sales by Reporting Segment Our portfolio is focused on five global growth In fiscal 2018, we reported net sales in four platforms. We have leading positions in our operating segments. The majority of our categories and compete with some of the most business is focused in North America through iconic brands in the world. In addition, our platforms our North America Retail and Convenience are aligned with consumer food trends, giving them Stores & Foodservice segments. We have great attractive global growth outlooks. opportunities outside of North America to grow our business as well, leveraging the scale and resources of our global organization. 3% 22% Snacks 64% North America Retail 11% 17% Cereal 11% 22% 17% Convenient Meals 13% Europe & Australia 15% Yogurt 12% 11% 12% Convenience 5% Super-premium Stores & 5% Ice Cream 64% Foodservice 17% 11% Dough 13% 11% Asia & Latin 11% Baking Mixes and America 15% Ingredients 17% 3% Other Fiscal 2018 In addition to $15.7 billion of consolidated net sales, Joint Venture $1.1 Billion our proportionate share of non-consolidated joint Net Sales venture net sales was $0.9 billion from Cereal Partners Worldwide and $0.2 billion from Häagen-Dazs Japan. In April 2018 we meaningfully reshaped our portfolio by acquiring Blue Buffalo, a high-growth, mission-driven natural pet food business that generated $1.3 billion in net sales in fiscal 2018. BLUE is one of the strongest and most recognizable pet food brands in the U.S., and is the undisputed leader in Wholesome Natural pet food, the fastest- growing segment of the market. The business has enjoyed consistent double-digit top- and bottom-line growth in recent years, and we see tremendous growth opportunities ahead as we leverage General Mills’ capabilities to help Blue Buffalo achieve its objective of reaching more pet parents and feeding more pets. 2018 ANNUAL REPORT 1 Dear Fellow Shareholders, This year we established three global growth priorities that are critical to restoring sustainable topline growth for General Mills: 1. Compete effectively across all our brands and geographies with compelling innovation and consumer news. 2. Accelerate our four differential growth platforms: Häagen-Dazs ice cream, snack bars, Old El Paso Mexican food, and our portfolio of natural and Jeffrey L. Harmening organic food brands. Chief Executive Officer 3. Reshape our portfolio for stronger growth through strategic acquisitions and divestitures. In fiscal 2018 we made important progress against the growth opportunities for Blue Buffalo and these priorities. We competed more effectively, with assessing opportunities to divest businesses that strong innovation, marketing, and in-store execution are growth dilutive. driving positive organic net sales growth in each of our last three fiscal quarters. As a result, our full-year We’ll also benefit from key capabilities that we’ve organic net sales growth rate finished ahead of our built recently, including E-commerce and Strategic target and improved by 400 basis points versus the Revenue Management. These capabilities will drive prior year. We developed new strategic growth plans growth for our brands in fiscal 2019, and they’re for the four platforms that comprise our Accelerate critical to our ability to generate consistent sales businesses and began to execute against them in the growth in the years to come. In addition, we’re keenly latter part of the fiscal year. And we moved to reshape focused on maintaining our efficiency in this more our portfolio with the acquisition of Blue Buffalo, a fast- inflationary cost environment, and we have initiatives growing, highly profitable business that is leading the underway to help protect our profitability. transformation of the U.S. pet food category. I want to close by thanking our talented team of We continued to drive efficiency in our operations 40,000 employees around the world, who remain in fiscal 2018, generating substantial savings from committed to our company and passionate about our Holistic Margin Management and other cost-reduction purpose of serving the world by making food people initiatives. However, these results were not enough to love. I also want to thank you, our shareholders, for offset a marked increase in input cost inflation and your investment in General Mills. We appreciate your other cost headwinds, leading to operating profit confidence in our business, and we look forward to results that finished below our plan. Our disciplined delivering on our goals and driving growth and returns focus on cash and success in reducing core working for you in the years to come. capital resulted in free cash flow of $2.2 billion, an Sincerely, increase of 28 percent over the prior year. As we turn to fiscal 2019, we’ll continue to follow our Consumer First strategy and execute against our global growth priorities to further improve our topline momentum. We’ll compete effectively across our portfolio, including on our large global platforms Jeff Harmening like cereal and yogurt. We’ll increase investments Chairman and Chief Executive Officer to accelerate our differential growth platforms. And we’ll continue to reshape our portfolio by maximizing August 1, 2018 2 GENERAL MILLS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K Í ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED May 27, 2018 ‘ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO Commission file number: 001-01185 GENERAL MILLS, INC. (Exact name of registrant as specified in its charter) Delaware 41-0274440 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Number One General Mills Boulevard Minneapolis, Minnesota 55426 (Address of principal executive offices) (Zip Code) (763) 764-7600 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered Common Stock, $.10 par value New York Stock Exchange Floating Rate Notes due 2020 New York Stock Exchange 2.100% Notes due 2020 New York Stock Exchange 1.000% Notes due 2023 New York Stock Exchange 1.500% Notes due 2027 New York Stock Exchange Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes Í No ‘ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ‘ No Í Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes Í No ‘ Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 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(Check one): Large accelerated filer Í Accelerated filer ‘ Non-accelerated filer ‘ Smaller reporting company ‘ (Do not check if a smaller reporting Emerging growth company ‘ company) If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.