ANNUAL REPORT ANNUAL REPORT ANNUAL 9/17/20 6:24 PM Shareholder Information World Headquarters Campbell Soup Company NET 1 Campbell Place, Camden, NJ 08103-1799 SALES Chair’s(856) 342-4800 • Message (856) 342-3878 (Fax) Fiscal 2020 was a year unlike any other for Campbell Soup On behalf of Campbell’s Board, I would like to thank Company.Stock Exchange We delivered List extraordinary results amid the President and Chief Executive Officer Mark Clouse for his New York Stock Exchange T $8.69 challenges caused by the global COVID-19 pandemic. leadership in a time of crisis, and for the Campbell BILLION OnTransfer behalf Agent of andthe Registrarentire Board of Directors, I want Leadership Team’s agility and resourcefulness in toComputershar extend my gratitude for the enormous effort and simplifying the mission. The company’s performance this P.O. Box 505000 dedication demonstrated by all our employees, especially year represents a total team effort from all our employees Louisville, KY 40233-5000 the1-800-780-3203 front-line and supply chain teams who displayed an who worked tirelessly to provide our country with food unwavering commitment to the task at hand in an during a time of great need. I would also like to thank our NET SALES unprecedentedIndependent Accountants operating environment. The total shareholders for their continued support and belief in our PricewaterhouseCoopers LLP companyTwo Commer response to the pandemic only gives us more ability to return this iconic company to profitable, confidenceSuite 1700 in our current leadership and their teams’ sustainable growth. +7% ability2001 Marketto execute Str our focused strategic plan. GROWTH Philadelphia, P I am confident that we have the right strategy in place and the leadership team to execute it, particularly in a time of Dividends uncertainty. Campbell is well-positioned to continue to We have paid dividends since the company became public in I1954. am Dividends confident ar that we build on the success and momentum we established this “ January year and for years to come. OPERATING have the right strategy in CASH FLOW A dividend r placeinformation about and dividends the or the leadershipdividend r teamwrite to Dividend to Reinvestment execute Plan Agent, it.” Campbell Soup FISCAL 2020 RESULTS $1.4 Company Or call: (781) 575-2723 or 1-800-780-3203. BILLION Publicat NeverFor copies has of ourthe Annualpurpose—to Report or theprovide SEC For Real food that mattersfinancial for infor life’s moments—resonated as profoundly as it has in the last several months. As much of the country ADJUSTED For copies of Campbell’ EPS* stayedRoma McCaig,home, VCampbell was called upon to step up and produceSustainability and at distribute [email protected]. food in quantities not seen in years, driven by consumers who were seeking comfort, Informat +28% quality,Inquiries convenience r and value. This highly elevated and GROWTH sustainedConsumer Responsedemand Centerrequired at the ourW teams be agile and resourceful,call 1-800-257-8443. and to truly partner with our customers. AcrossInvestors the and board, financial weanalysts delivered may contact on Rebeccaour purpose. Gar The company’sPresident, Investor progress Relations, on atfocusing the W our business and improvingcall (856) 342-6081. our execution proved vital as we navigated the ADJUSTED Sincerely, EPS* pandemicMedia and publicwhile r accelerating our progress against our strategicHushen, Dirplan in the second half of the year. We enter fiscalHeadquarters 2021 with addr millions of new households to continue $2.95 our momentum and achieve sustainable, quality growth. Communications concer PER SHARE dividends and change of addr Keith R. McLoughlin Computershar Chair of the Board *From Continuing Operations. These non-GAAP measures aree adjusted for certain items not considered to be part of the ongoing business. For a reconciliation of non-GAAP financial measures,es, see page 13. 377512_Campbell_AnnualReport_2020_COVER_R1.indd 2 377512_Campbell_AnnualReport_2020_R2.pdf 3 9/21/20 7:23 PM /BEV 53 % N A C K S LS S 4 A 7 E % M $8.69B President and Chief Executive Officer Mark Clouse S MarkPresident Clouse and CEO T E FISCAL 2020 H A T D W Y A C O PE C E C G R Dear Campbell Shareholders, R F O R M A N NET SALES ELER ATE D Fiscal 2020 illustrated the importance of a focused strategic plan and a dynamic team as we delivered exceptional results amid the unprecedented challenges of the COVID-19 pandemic. By early March, life aroundound the world changed dramatically. No one could have planned for the complexity of challenges and level of The year can be viewed in two clear and separate halves. The first half uncertainty that COVID-19 presented.esented. This crisis has affected so of fiscal 2020 was a period of strong execution against our strategic many lives, and our hearts go out to all those impacted by this virus, roadmap. Our business was progressing on a steady, positive especially those in the Campbell family. Wee moved quickly to Exceptional Financial In fiscal 2020, we delivered growth in all key metrics and strong trajectory in the first half, with solid performance across both divisions. implement protocols to protect our front-lineont-line teams and ensure the performance across both divisions. Net sales from continuing We began the year focused on strengthening our brand powerhouse, resilienceesilience of our manufacturing network while mandating our Performance in Fiscal 2020 operations were $8.69 billion, an increase of 7% over last year. Our with two distinct divisions concentrated in North America, each home office-based teams work remotely.. I am humbled by the unwavering As the year prprogressed and we continued to experience Meals & Beverages and Snacks divisions delivered net sales growth of to strong portfolios of iconic and differentiated products. We kicked off commitment of Campbell’s front-lineont-line and supply chain teams. We unprecedented demand for our products, we invested significantly 9% and 5%, respectively. For the full year, adjusted EPS from our “Win in Soup” plans and we completed our planned swiftly shifted our priorities to focus on their well-being and safety, in our brands at a time when we werwere welcoming millions of new continuing operations of $2.95 represented a 28% increase over fiscal divestitures, using the proceeds to reduce our leverage while while meeting the needs of our customers, consumers and households to the Campbell portfolio. We made significant progress 2019.1 For the year, cash flow from operations totaled $1.4 billion. This implementing a new operating model to optimize growth and communities across North America. in advancing our Snacks integration plans and our cost savings performance was enabled by the extraordinary work of our teams who profitability. We were progressing right on track with our strategic plans. program, both of which rremain on track. remained agile and resilient in a challenging operating environment. There is no question that the groundworkoundwork we established in the first half of the year served as a springboardd for the business in the OUR STRATEGY second half, when progressess against our strategy accelerated as a resultesult of the pandemic. This translated into a year well above what LONG-TERM GROWTH ALGORITHM CREATE A PROFITABLE we had originally planned or could have expected. 1 GROWTH MODEL We experienced broad-based demand acrossoss our portfolio as ORGANIC SALES* ADJUSTED EBIT* ADJUSTED EPS* consumers sheltered in place and filled their pantries with brands FUEL INVESTMENTS WITH 2 TARGETED COST SAVINGS they know and trust. As weeks turnedned into months, we saw exceptional repeat purchasechase rates and welcomed new buyers to our % % % family of products, especially our soup business. As North America 1-2 4-6 7-9 BUILD A WINNING TEAM continues to navigate the pandemic, we believe the consumer 3 AND CULTURE behaviors built during this time to be lasting. 1. These non-GAAP measurmeasures are adjusted for certain items not considered to be part of the ongoing business. For a reconciliation of non-GAAP financial measures, see page 13. * A non-GAAP rreconciliation is not provided since certain items are not estimable, such as pension and postretirement mark-to-market adjustments, and these items DELIVER ON THE PROMISE are not considerconsidered to reflect the company’s ongoing business results. 4 OF OUR PURPOSE Forward-Looking Statements Statements in this letter that arare not historical facts are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. See “Cautionary Factors That May AfAffect Future Results” in Item 7 and “Risk Factors” in Item 1A of our Form 10-K. 3 377512_Campbell_AnnualReport_2020_R2.pdf 4 9/21/20 7:23 PM Consumer & Retail Trends Shaping the Landscape The pandemic has fundamentally changed the way consumers shop and eat. While some trtrends may be episodic, we expect others to be more structural. WWe believe four trends will shape the consumer and retail environment for the foreseeable future, each of which align extremely well with our business model, portfolio and capabilities: Quick Scratch Cooking Online Food Shopping We also recognized that community food banks and hunger programs Operating in the would struggle with the impact of COVID-19 and dedicated manufacturing and supply specifically for this need. Wee focused our COVID-19 Environment As people arear eating out less, they are cooking more and are Millions of Americans were introduced to this convenience during support on the 33 communities wheree we have operations. As of looking for low-cost meal solutions. Assembling simple ingredientsingr the pandemic and we believe the benefits provided by these At the outset of the pandemic, we simplified our mission and September 2020, I am proud to sharee that we have contributed $6 for a great tasting meal has increasedincr in popularity and is poised to services will result in continued usage.