Build Financial Model Use Formulas and link the I.S. and B.S. and C.F. where appropriate. Assumptions: Net sales will increase by 1.5% (150 basis points) in FY2020. Cost of sales: 65.9% of forecasted sales. SG&A expenses: 17.4% of forecasted sales. No announced divestitures for FY2020. Restructuring is estimated to be 1.6% of sales Depreciation expense Additional calculations Unless noted in other assumptions, all assets and liabilities as a percentage of sales Goodwill remains unchanged. Form 10-K reports that amortization expense will be $40 million. Notes payable remain unchanged. 1,396.5 2,114.4 2020 debt maturities 67.4% of net income attributable to GM 580.1 546.1 1,170.8 2021 debt maturities There will be no stock repurchases in FY2020. Noncontrolling interest will increase by $33.5 million (P&L and BS impacted) CAPEX 3.19 % x Sales Dividends General Mills Income Statement 2019 Actual 2020 Forecasted General Mills Balance Sheet 2019 2020 Actual Forecasted Change Cash flow effect General Mills Statement of Cash Flow 2020 Forecasted Net sales 16,865.2 17,118.2 CURRENT ASSETS Net income Cost of sales 11,108.4 11,280.9 Cash and cash equivalents 450.0 Selling, general, and administrative expenses 2,935.8 2,978.6 Receivables 1,679.7 Divestitures (gain) Restructuring, impairment, and other exit costs 30.0 275.1 - Inventories 1,559.3 273.9 Prepaid expenses and other current assets 497.5 456.8 173.0 53.6 16.1 6.7 (1,506.7) (1,505.7) Depreciation 1,694.4 580.1 Amortization Change in receivables 1,506.7 (481.4) Change in inventories 1,505.7 Operating profit 2,515.9 2,584.8 Total current assets 4,186.5 699.5 (3,487.0) Change in prepaids 481.4 Benefit plan nonservice income (87.9) Land, buildings, and equipment 3,787.2 3,844.0 56.8 Change in other assets 14.6 Interest, net 521.8 521.8 Goodwill 13,995.8 13,995.8 Change in accounts payable 142.0 Eamings before taxes and after-tax earnings from JV 2,082.0 2,063.0 Other intangible assets 7,166.8 7,274.3 107.5 Change in other current liabilities 20.5 Income taxes 367.8 373.7 Other assets 974.9 989.5 After-tax earnings from joint ventures (72.0) (72.0) Total assets 30,111.2 26,803.1 14.6 (3,308.1) Change in deferred taxes 343.2 Change in other liabilities 21.7 Net earnings, including earnings attributable to NCI 1,786.20 1,761.4 Net earnings attributable to NCI 33.5 67.0 CURRENT LIABILITIES Net earnings attributable to General Mills 1,752.70 1,694.4 Accounts payable 2,854.1 2,712.1 (142.0) Current portion of long-term debt 1,396.5 1,396.5 Notes payable 1,468.7 1,468.7 Other current liabilities Total current liabilities Long-term debt 1,367.8 7,087.1 6,965.6 11,624.8 10,402.7 1,388.3 20.5 (121.5) (1,222.1) Deferred income taxes Other liabilities 2,031.0 1,448.9 1,687.8 1,470.6 (343.2) 21.7 Total liabilities 22,191.8 Redeemable interest value 551.7 20,526.7 560.0 (1,665.1) Cash from operating activities CAPEX Cash for investing activities Changes in current debt Changes in LT debt Dividends paid Cash for financing activities Cash flow for the year 8.3 Cash at start of year Stockholders' equity: Cash at end of year Common stock 75.5 75.6 1.1 Additional paid-in capital Retained earnings 1,386.7 1407.5 14,996.7 13,850.0 20.8 (1,146.7) Common stock in treasury, at cost Accumulated other comprehensive lass Total stockholders' equity Noncontrolling interests Total equity Total liabilities and equity (6,779.0) (6,779.0) (2,625.4) (2,625.4) 7,054.5 5,929.7 313.2 346.7 7,367.7 6,276.4 30,111.2 26,803.1 (1,124.8) 33.5 (1,091.3) (3,308.1)