MCCORMICK & COMPANY 2004 ANNUAL REPORT of our consumer business. The Management Committee has responsibility for setting strategy, executing growth initiatives, allocating Company resources and for developing and advanc- ing our employees. I believe that our Board of Directors, Management Committee and leadership throughout McCormick are among the best in the food industry. of this fuel to invest in the business. We are accelerating the marketing support behind our powerful brands. We have more than doubled advertising expense since 1999. We invested in a promotional analysis process that in its first year significantly increased the effectiveness of our 2004 U.S. trade promotion dollars. Product development expense increased another 18% in 2004 and 84% since 1999. In addition to increasing our resources behind product development, we’ve increased productivity. New product sales as measured per each R&D professional have doubled in the past five years. A formula management system will be available in 2005 that will give our teams a running start on new products and further reduce the development cycle time for our customers. Toward the end of 2004, Jerry Wolfe was promoted to Vice President – Supply Chain and Chief Information Officer. Fran Contino was named Executive Vice President –Strategic Planning and CFO. Throughout the Company, we continue to challenge and develop our people while tapping into their experience, knowledge and enthusiasm. We like our business: flavor. Demand for great taste has few boundaries. Kid-friendly flavors, bold and zesty flavors, ethnic flavors and flavors for those on a reduced calorie, low-carb, low- fat, or low-salt diet. From molecule to menu, McCormick has the broadest range of flavor solutions in the industry.  Improved margins provide the fuel for business invest- ments...investments designed to increase sales and profits. Throughout the Company we are seeing signs of success in a great number of new products. One product line is grinders. A functional, consumer-oriented package that originated under the Ducros brand in France is being taken to other markets. Worldwide sales of grinders were up 36% in 2004, and new blends and an improved package are in the pipeline for 2005. For several years now, sales to restaurant chains have been strong. Most recently, we have significantly increased sales of coating systems. We have also increased sales and profits with strate- gic acquisitions. Since its addition to the McCormick family in June 2003, the performance of Zatarain’s has exceeded our expectations. At the end of 2004, we completed the acquisition of another excellent brand, Silvo. This leading brand extends our European reach into the Netherlands and will add nearly $50 million of sales in 2005. We continue to reaffirm the long-term goals that we set in 2002: to grow sales 5% annually with a range of 3-7% and to increase earnings per share 10-12%. In a tough environment, these are aggressive goals for McCormick and, for that matter, any packaged food company. But we like a challenge at McCormick and have established a strong track record in meeting our goals. In the coming years, we intend to continue our record of superior financial results and increased shareholder value. Early in 2004, a Management Committee was formed that expanded the former Executive Committee to include leaders I believe we have a great team at McCormick and a winning strategy that continues to deliver record financial performance year after year. Our core values define the way we work with one another, how we value and serve our customers, and our ultimate responsibility to McCormick shareholders. These values are fundamental to our success. Thank you to our employees for making our goals a reality. All of us at McCormick are committed to building shareholder value. I am confident of our future success.  leadership at McCormick  our core values We believe… Robert J. Lawless, Chairman, President and CEO > our people are the most important ingredient of our success. > our top priority is to continuously add value for our shareholders. > customers are the reason we exist. > our business must be conducted honestly and ethically. > the best way to achieve our goals is through teamwork. 5