 (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.  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.  Total Returns to Shareholders Dividends per Share (dollars) 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.  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.  3 Annual Report 2010 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  We remain focused on five key business drivers that fuel our  overall success. They are: 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.  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.  • Innovation • Brand  building •  Leading customer growth • International  expansion • Margin  expansion General Mills Long-term Growth Model Growth Factor  Compound Annual Growth Target Net Sales  Low single-digit Segment Operating Profi t  Mid single-digit Earnings per Share  High single-digit Dividend Yield  2 to 3 percent Total Return to Shareholders  Double-digit 11 1.12 10 09 08 07 06 0.96 0.86 0.78 0.72 0.67 Current Annualized Rate GIS S&P 500 Index S&P Packaged Foods Index 43.3 21.0 27.0 8.8 –8.4 1.5 Last 3 Years  (compound annual return) Fiscal 2010