4 Earning Our Stripes • We have formally made  diversity and  employee safety priorities for 2004 and beyond. Our  K Values TM call for us to show respect for and value all individuals for their diverse backgrounds, experience, styles, ap- proaches, and ideas. The sustainability of our business is dependent upon our ability to generate new ideas and to respond to consumers with changing demographic profiles. Equally important is employee safety. High safety levels in the workplace are correlated with positive employee morale, strong pro- ductivity, and reduced costs.  • We continued to hold workshops to spread  the  K Values TM , a set of guiding principles that were updated in 2002. In fact, most of our management around the world has now participated in these sessions.  •  Putting the right people  in the right jobs has been critical to our renewed success. In 2003, we made several transitions and promotions of key executives, each intended to better leverage their strengths and to further develop their skills.  • We conducted a Company-wide  culture survey , which helped us better understand the strengths and opportunities of our culture and environment. Every business unit, department, or corporate function is using the results to improve our employee satisfaction and become a better place to work. We plan to repeat the survey every two years. • We launched an initiative called  Talent Management Worldwide aimed at building a more comprehensive and systematic approach to identifying, training, and developing future leaders.  Our founder, Mr. W. K. Kellogg, was fond of saying “I’ll invest my money in people.” In 2003 we launched or continued various initiatives designed to invest more in our people: Strengthening Our Organization David Mackay, whose leadership drove the impressive turnaround of our U.S. businesses, was promoted to president and chief operating officer of the Company. David and I have complementary strengths and create a strong partnership in leading this Company. Our chief financial officer, John Bryant, has added to his responsibilities the leadership of our U.S. Natural & Frozen Foods division, giving John the experience of having business unit accountability.  After very successfully leading the implementation of our  Volume to Value strategy in international markets and driving strong sales growth in those markets, Alan Harris was named executive vice president, chief marketing and customer officer. This is a new role de- signed to better implement the sharing of innovation and marketing programs across the Company.  Jeff Montie became an executive vice president of the Company, and Canada was added to his responsibilities. His leadership of our U.S. Morning Foods division has resulted in substantial growth and share gains, especially in cereal. Brad Davidson was promoted to senior vice president of the Company, and put in charge of our U.S. Snacks divi- sion after successfully leading our U.S. Morning Foods sales force. Several other executives were promoted in recognition of their strong contributions to the Company. Gary Pilnick was promoted to senior vice president, general counsel and secretary, and Celeste