2 McCormick is a global leader in the manufacture, marketing and distribution of spices, herbs, seasonings and other flavors to the entire food industry. Customers range from retail outlets and food service providers to food processing businesses. Founded in 1889 and built on a culture of Multiple Management, McCormick has approximately 8,000 employees. McCormick will be the leading global supplier of high value- added flavor solutions.  Building on strong brands and innovative products, we will provide superior quality and service to customers and consumers around the world. vision statement business description for the year ended November 30 (millions except per share data) Net sales $2,526.2 $2,269.6 11.3% Gross profit 1,007.9 898.6 12.2% Gross profit margin 39.9% 39.6% Operating income 332.7  295.5 12.6% Operating income margin 13.2% 13.0% Net income from continuing operations 214.5 199.2 7.7% Percent to sales 8.5% 8.8% Earnings per share from continuing operations – diluted 1.52 1.40 8.6% Average shares outstanding – diluted 141.3 142.6 (.9%) Dividends paid $ 76.9 $ 64.1 20.0% Dividends paid per share .56 .46 21.7% Cash flow from operations 349.5  201.8 73.2% Debt-to-total-capital 40.9% 44.4% Closing stock price $ 36.45 $ 28.69 27.0% % change 2003 2004 financial highlights MCCORMICK & COMPANY 2004 ANNUAL REPORT table of contents 4  letter to shareholders 6 board of directors 8 consumer business 12 industrial business 16 Q&A with Bob Lawless 18 McCormick worldwide & executive officers 19 community service 20 financial information 57 investor information