Connecting people through food they love.

2021 Annual Report

FISCAL 2021 RESULTS

ADJUSTED PS1

$2.98

PER SHARE

+1%

NET SALES

$8.5

CONSUMPTION2

BILLION

+10%

-2%

VS.

FISCAL 2019

OPERATING CASH FLOW

$1

BILLION

Chair's Message

As I reflect on the challenges posed by the unprecedented health crisis that transpired around us in fiscal 2021, I am reminded of the remarkable passion and commitment demonstrated by our teams for the food we make, for the communities we serve and for each other. At the heart of Campbell is an unyielding emphasis on our purpose: Connecting people through food they love.As our world was transformed by the events of the past 18 months, nurturing those connections became more important than ever.

Once again, our priority in fiscal 2021 remained the health and safety of our employees. In addition, we took tangible steps toward building a high-performing, diverse and inclusive culture, underpinned by our company's values.

We made significant progress on our focused strategic plan and landed the year with all key metrics-net sales, adjusted earnings before interest and taxes (EBIT) and adjusted earnings per share (EPS)-well ahead of the more comparable pre-pandemic fiscal 2019 period1. We continued to drive relevance and connection across our powerful portfolio of brands with the vast majority holding or growing market share. We harnessed our creative and culinary energy to drive incremental occasions and attract and retain millions of new households. We also continued to focus our business and divested non-core assets.

We have learned so much throughout this tumultuous period about the resilience and determination of our team. Today, Campbell is stronger and better equipped to deliver sustainable results. As we move into the next phase of our strategic plan, our mission is to unlock Campbell's full growth potential while remaining nimble and cognizant of the challenges still posed by COVID-19.

"As we move into the next phase of our strategic plan, our mission is to unlock Campbell's full growth potential while remaining nimble and cognizant of the challenges still posed by COVID-19."

This year, we added new talent to our Board, welcoming Grant Hill as our newest director. Grant is a thought leader with a track record of building successful brands and businesses and leading inclusive, diverse and winning teams. We will benefit from his perspective.

On behalf of the Campbell Board of Directors, I would like to thank Mark Clouse, Campbell's President and Chief Executive Officer, for leading with clarity, integrity and authenticity, along with the Campbell Leadership Team, who continue to skillfully navigate a volatile and uncertain landscape. I also want to recognize the enormous commitment of all our employees, particularly our front-line teams. Finally, I would like to thank our shareholders for their continued confidence and support. I am confident Campbell is well-positioned to further build on the success and momentum we established this year and to fully unlock our growth potential.

Sincerely,

Keith R. McLoughlin

Chair of the Board

  1. From Continuing Operations. Thesenon-GAAP measures are adjusted for certain items not considered to be part of the ongoing business. A reconciliation of non-GAAP financial measures can be found at the end of this letter.
  2. Total IRI US MULO $ consumption latest 52 weeks ending 8/1/2021

Forward-Looking Statements: Statements in this letter that are not historical facts are forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements. See "Cautionary Factors That May Affect Future Results" in Item 7 and "Risk Factors" in Item 1A of our Form 10-K.

Mark Clouse

President & Chief Executive Officer

Dear Campbell Shareholders,

For more than 150 years, Campbell has connected people through food they love. While the global health crisis has been tragic and disruptive for so many, the need for connection has never been as foundationally important. Consumers turn to Campbell for delicious, affordable food and beverages. I'm proud of the lasting connections we continue to make for our consumers, our customers and our communities, and how this creates value for our shareholders. As we move beyond this tumultuous time, we are a stronger, more focused company.

Despite the unprecedented challenges of the operating environment, we made significant progress. We posted strong growth across all key operating metrics in the first half of the fiscal year while continuing to invest in our brands. We attracted and retained millions of new households with the most notable increase coming from younger consumers. Reflecting the sustained relevance of our brands, our in-market performance was strong, with high single-digit consumption growth for the total company, as well as for U.S. soup and our Snacks power brands3. Additionally, we increased household penetration4and consumption3across our Meals & Beverages division, including condensed soups, ready-to-serve soups and broth, as well as in Pregopasta sauces and V8beverages. We made thoughtful decisions on promotions, and we flexed our supply chain capabilities as retailers rebuilt inventory levels after the initial COVID-19 surge.

FISCAL YEAR 2021

Continuing Operations ($ in billions, except per share)

NET SALESADJUSTED EBIT1ADJUSTED EPS1

$8.5

$1.4

$2.98

BILLION

BILLION

PER SHARE

SALES1FLAT

(3)%

+1%

ORGANIC NET

YoY

YoY

YoY

OurMission

Unlock our full

growth potential

In the second half of the fiscal year, we began to cycle our historic results from the prior year, amid intense market volatility and sustained labor scarcity. At the same time, we navigated the pressures of a significant transformation agenda, especially in our Snacks division. While we anticipated the vast majority of these factors, the transitional costs associated with navigating the COVID-19 environment, coupled with inflation, required that we take additional actions through pricing and cost productivity initiatives. I am pleased with how we responded.

As difficult and complex as this time has been, it has also been an extraordinary period for Campbell, and we have made clear, meaningful progress advancing our strategic plan. For the full year, I am pleased to report that Campbell's organic net sales were comparable to fiscal 2020 and grew 3% on a two-year compounded annual growth rate (CAGR) basis driven by both divisions1, reflecting strong in-market performance. In fact, three-quarters of our portfolio grew or held market share for the year2, reflecting our continued momentum. Even more compelling is our performance relative to pre-pandemic levels, where most brands in our core categories grew at higher rates2. Adjusted EBIT lagged fiscal 2020 as we

In fiscal 2021, we continued to adapt and evolve in a dynamic environment while we advanced our strategic plan. In the first part of the fiscal year, as the pandemic posed many challenges across North America, our employees-particularly our front-line and supply chain teams-continued to rally to meet the elevated demand for our products and support the communities we call home. We prioritized safety with enhanced protocols across the company that were clearly communicated and regularly updated following the guidance of public health experts. Our people are Campbell's greatest strength and competitive advantage-they drive our success-and we are deeply grateful for their dedication.

OUR STRATEGY

Build a winning team

Accelerate

and culture

profitable growth

$8.1

$8.7

$8.5

$1.3

$1.4

$1.4

$2.95

$2.98

$2.30

FY19

FY20

FY21

FY19

FY20

FY21

FY19

FY20

FY21

15.6%

16.7%

16.6%

ADJUSTED EBIT MARGIN1

TWOYEAR CAGR

ORGANIC

ADJUSTED

ADJUSTED

NET SALES1

EBIT1

EPS1

+3% +5% +14%

lapped dramatic scale and efficiency from a year ago and navigated a much higher inflationary environment this year. However, on a two-year CAGR, adjusted EBIT grew 5%1and adjusted EPS from continuing operations grew 14%1, as we delevered and improved our balance sheet.

We held or expanded share growth across most key categories2, which was particularly strong given the unprecedented results in the prior year and the ongoing disruption stemming from the pandemic. Importantly, on a two-year basis, consumption grew 10% driven equally by strength in both our Meals & Beverages and Snacks divisions2. We finished the year with a strong balance sheet, a lower leverage ratio and cash flow from operations of $1 billion.

Fuel investments

Deliver on the promise

and margins with

of our purpose

targeted cost savings

3. Total IRI US MULO $ consumption latest 26 weeks ending 1/31/2021

3

4. IRI Total US All Outlets; NBD Volume latest 26 weeks ending 1/31/2021

Strong, Healthy Brands

Throughout the last year, we connected people through food they love-offering comfort, quality, convenience and value. In a volatile and unpredictable world, our brands continued to play a meaningful role in the way people eat.

Campbell's brands play an important part of the meals and snacks enjoyed every day across North America. Breakfasts often start with Pepperidge Farmbreads, and kids of all ages hope to find Goldfishcrackers in their lunches. Grilled cheese sandwiches and Campbell'sTomato Soup are the classic lunch combo. Campbell'scondensed cooking soups, Swansonand Pacific Foodsbroths are used to create memorable family dinners. Friends reach for Kettle Brandchips or Snyder's of Hanoverpretzels while watching their favorite games. Kids snack on Lancecrackers in the dugout during Little League, and of course moms enjoy a Milanomoment. Clearly, we have a unique and differentiated portfolio filled with iconic, fabric-of-the-nation brands that consumers love.

"We have a unique and

dierentiated portfolio filled with iconic, fabric-of-the-nation brands that consumers love."

While it is important to reflect on the toll the past 18 months has had on people around the world, we also need to recognize the many positive moments. Our collective sense of community is stronger than ever, with people going above and beyond in countless ways, and we have a renewed commitment to inclusion and diversity, ensuring we all are given the same opportunities to be safe, heard and valued.

75%

of Portfolio

Gained or Held

Share2

For our business, it created a once-in-a-generation moment, where millions of new households discovered our products and many others rediscovered familiar favorites. The extraordinary rate of trial served as an accelerant to our strategy to build relevance, attract and retain lapsed consumers and connect with younger households. We are confident that many of the new behaviors adopted by consumers during the last year will continue, and our focus has turned to building on this success with relevant, delicious food and experiences.

We remain confident in our strategy, mission and goals, and with strong underlying fundamentals, we are focused on execution while applying our learnings from this experience. Our confidence in our strategic plan is further strengthened by our continued in-market momentum and the structural health of our business. The progress we are making on our categories and brands, as well as the positive indicators that we are seeing from consumers and customers, increases our conviction in the long-term potential of our business.

OurPerformance-driven- Culture

DuringDuringthethecomplexcomplexandandvolatilatilefiscalfiscal20212021businessenvironment,weweaskedaskedgreatgreatdealdealfromfromourouremployees,andandtheythey

deliveredlivered.The.Thecarecareandandcharacterthathathashalwayslwaysbeenbeenpartpartof ourfourDNADNAwaswason ondisplaydisplayeveryeveryday,day,andandI witnessedI a a renewewedspiritspiritof collaboration,ofcompetitivenessandandcreativityfromfromourourpeople,people,backedbackedby byourourfocusedfocusedstrategystrategyandandhighighly engagedleadershipteamteam. .

DuringDuringthethelastlastyear,year,wewehavehaveb beenlayinglayingthethegroundworkfor forthethen nextchapterchapterof sustainedof growthgrowth.To. accelerateTothethepositivepositive changeschangesunderway,wewerfreshedfreshedourourpurpurposeandandmissionmissiona dandintroduceda newa newsetsetof values,ofvalues,"The"The5Cs5Csof Campbell,"ofto to guideguideourourbehaviors aswewebuildbuilda winna inningteamteamandandcultureculture.Our.Ournewnewmissionmissiondeclaresdeclaresourourintententto unlockto unlockourofullrfullgrowthgrowth potentialential. This.Thismissionmissionappliesapplies muchasmuchto ourtoourbusinessperformanceas itasdoesit doesto ourtoourpeoplepeopleandandsignalssignalsthathatdrivingdrivinggrowthgrowth is deeplyisdeeplyrootedrootedin howinhowwewemanagemanagethethecompany. .

WeWewillwillachieveachieveourourmissionmissionby bylivinglivingourourpurpurposeandandvaluesvalues-they-theyareareourournorthnorthstarstand,rand,togethetherwithwithourourst strategicplan,plan, theytheywillwillguideguideourofuturefuture.I look.I lookforwardforwardto seeingtoseeingthisthiscomecometo lifetolifeas aswewecreateaten newworkingworkingmodelsmodelsacrossacrossthethecompanyin in ourourfieldfieldoperationsandandourourofficesoffices.While.Whileourourteamsteamshavehavep rformedperformedxtremextremelywellwellduringduringthisthisunprecedententedperiod,period,wewe areareall alllookinglookingforwardforwardto thetothenextnextchapterchapter.I believe.I believethathatbeingbeingtogethetherin ourinouroffices,offices,easingeasingprotocolsin ourinourplantsplantsandand engagingingwithwithourourcolleagues,customersandandsuppliersin theinthesafestsafestpossiblepossiblewayswaysis importantantisfor fourourbusiness. Those.Those in-personin-personinteractionsarearecriticalcriticalto helptohelpshapeshapeourourculture,culture,buildbuildcamamaraderieandandcollaboration,andandultimatelyfuelfuelperforperfor- -

mancemancein ainconsistententa andandsustainainablemannermanner. .

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MarkMarkClouse

PresidentandandChiefChiefExecutiveOfficerOfficer

5 5

BUILD A WINNING TEAM AND CULTURE

Our success begins with our people.

This is why our strategic plan now starts with Build a Winning Team and Culture. This strategy has never been more relevant-our people have rallied around the critical role Campbell plays in society with heroic performance from our front-line teams, while our office-based employees adapted to new ways of working in a remote environment. Everyone showed resilience, determination and creativity in rising to the challenge.

An important part of the Campbell Employee Experience is our Inclusion & Diversity (I&D) strategy, which is centered on three areas: capabilities, advocacy and accountability.

We have made strong progress to ensure that all employees can be real and feel safe, valued and

INCLUSION & DIVERSITY FOCUS AREAS

1. Capabilities

Our first step focused on increasing I&D learning

opportunities and standardizing key processes throughout

the company. We continue to provide learning and

development opportunities to improve our capabilities to

become better leaders, employees and people, and

produce better results. In fiscal 2021, 96% of people

managers completed I&D development work, and every

salaried employee had performance objectives relating to

I&D and our values.

EMPLOYEE EXPERIENCE FRAMEWORK

MY CAREER

Development, Experiences, Making an Impact

supported to do their best work.

Additionally, we are building next generation work models across our manufacturing network and office locations

2. Advocacy

During the past year, Campbell's Employee Resource

Groups and the Campbell Soup Foundation created funds

to support organizations advancing social justice. In June

MY FIRST IMPRESSION

Candidate Experience, Onboarding

MY GIVING

Matching Gifts, Volunteering, Philanthropy

UR P

P

E

V

S

A

O

U

L

MY

E

S

MOMENTS

MY MANAGER/LEADER

Inclusive, Strategic, Supportive

MY WAY OF WORKING

Objective Key Results & Performance

Management, Accountability,

Operating E"ectiveness

based on the learnings of the past 18 months. For instance, we announced a hybrid work policy for salaried, office-based employees, a majority of whom have worked remotely since March 2020. This new policy will foster the collaboration, creativity and camaraderie of being together in our offices that will strengthen our culture and fuel our performance, with the ability to work remotely several

2021, the Foundation awarded an additional $500,000 in

grants as part of Campbell's three-year, $1.5 million

commitment to support nonprofit organizations that raise

awareness, advance education, and fight racism and

discrimination. Additionally, we committed to increase our

spending with diverse suppliers by 25% by the end of fiscal

2023 through our Supplier Diversity Program.

3. Accountability

MY WELL•BEING

Benefits, Life Events, Support

P

E

EOPL

MY REWARDS

Pay, Recognition, Perks

days per week. This is a big step toward building a winning team and culture, providing greater opportunities to live our values, and unlocking our full growth potential.

We are committed to transparent measurement and reporting to track our progress. Each member of the Campbell Leadership Team has responsibility for elements of this strategy, and we measure our progress by sharing quarterly scorecards with the organization.

MY WORKSPACE

MY CONNECTIONS

Environment & Amenities, Safety, Technology & Tools

Inclusive & Diverse Company, Teams, Employee Resource Groups

At the heart of this strategy is our Employee Experience framework, designed to enhance the nine key moments that shape an employee's career at Campbell. From recruiting and onboarding through career advancement, each focuses on ways of working and enhancing culture and inclusivity. The added focus on the Employee Experience resulted in a 16% increase in employee engagement survey scores over the prior year, which exceeded consumer packaged goods benchmarks.

Photos taken prior to COVID-19 pandemic.

Care

Character

Collaboration

Competitiveness

Creativity

We care about each

We act with integrity

We believe inclusive and

We are growth-minded,

We innovate and

other, our consumers

and transparency,

and customers, the

execute with excellence,

diverse teams build trust

take bold actions, move

communities we serve,

and are accountable for

and lead to better results.

fast, and play to win.

continuously improve.

and the planet we share.

our actions.

7

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Disclaimer

Campbell Soup Company published this content on 18 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2021 21:51:06 UTC.