2021 Annual Report

ACCELERATING

GROWTH for a purpose- driven future

TABLE of CONTENTS

  1. LETTER TO SHAREHOLDERS
  1. FINANCIAL HIGHLIGHTS
  2. PURPOSE-LEDPERFORMANCE
  1. DIRECTORS AND OFFICERS
  1. FORM 10-K

Investor Information on Inside Back Cover

CORMICK'S FOUNDATION ROOTED IN PURPOSE

Purpose is integrated into everything we do. From driving top-tierresults to positively impacting the society in which we live, we are accelerating

growth for a purpose-driven future.

Cinnamon, one of McCormick's five iconic ingredients and one of the world's oldest spices, is best known for its versatility. It brings a deep, warm sweetness to many dishes and also has a savory side that can be used to add richness and heat. Our cinnamon is primarily sourced from the central Sumatra region of Indonesia where cinnamon trees such as these mature to yield 100% pure flavor. The irresistible woody aroma of cinnamon was used to scent this year's annual report.

2021 ANNUAL REPORT 1

13%
RECORD NET
SALES
GROWTH
in 2021

Fellow SHAREHOLDERS,

2021 has been another year of global challenge, change, and opportunity. Through it all, McCormick is stronger than ever. We delivered on our purpose to stand together for the future of flavor, remained forward-looking, and came together through our Power of People™ culture to strengthen our foundation and grow our business. We are relentlessly focused on growth, performance and people, actively responding to changing consumer behavior, and capitalizing on new opportunities from our relative strength. As we envision a world united by flavor where healthy, sustainable, and delicious go hand in hand, we are accelerating growth for a purpose-driven future.

We are DELIVERING TOP-TIER BUSINESS PERFORMANCE

We drove record sales growth in 2021, demonstrating again that the combination of our broad and advantaged portfolio, the effective execution of our strategies to capitalize on accelerating consumer trends, and the engagement of our employees have positioned us well to continue driving differentiated growth. Notably, on a two-year basis, we have grown sales by nearly a billion dollars, which reflects our robust and sustained growth momentum in both segments and strong contributions from our Cholula® and FONA® acquisitions.

• Net sales rose a record 13%, surpassing $6 billion in annual revenue in 2021. In constant currency, sales grew 11%. Incremental sales from our Cholula and FONA acquisitions contributed 4% to the increase. Our Consumer segment growth of 9%, or 7% in constant currency, was driven by consumers' sustained preference for cooking more at home,

fueled by our brand marketing, strong digital engagement, new products, and Cholula growth. Sales in our Flavor Solutions segment grew 19%, or 16% in constant currency, reflecting contributions from our FONA and Cholula acquisitions as well as growth driven equally from our packaged food and beverage customers and the robust demand recovery

5-YEAR RETURN VS. S&P 500 AND S&P PACKAGED FOODS INDEX

MKC 15%

S&P

18%

500

Packaged

4%

Foods Index

As of 11/30/2021

DIVIDENDS DECLARED

(Per Share Data)

2017 $0.97

2018 $1.07

2019 $1.17

2020 $1.27

2021 $1.39

McCormick has increased its dividends each of the past 36 years. We have paid a dividend for 97 consecutive years.

2 McCORMICK & COMPANY

  • With our overarching focus on growth and the successful execution of our strategies, we have consistently delivered industry- leading revenue growth. This performance resulted in McCormick's inclusion in the 2021 Fortune 500. We are proud of being included on this prestigious list. Our
    sustained performance positions us for continued success in 2022 and beyond. "
    • LAWRENCE E. KURZIUS Chairman, President and Chief Executive Officer

from our restaurant and other foodservice customers, which were impacted by COVID-19 restrictions and con- sumers' reluctance to dine out last year.

  • Operating income increased 2%, driven by higher sales, and our Comprehensive Continuous Improvement (CCI) led cost savings, partially offset by special charges, trans- action and integration expenses, cost inflation, and incre- mental strategic investments. Excluding special charges and transaction and integration expenses, adjusted operat- ing income increased 8%, or 6% in constant currency.
  • Our earnings per share increased to $2.80 in 2021 from $2.78 in 2020. Excluding special charges, transaction and integration expenses, and income from sale of unconsoli- dated operations, adjusted earnings per share grew to $3.05 in 2021 from $2.83 in 2020, driven primarily by higher adjusted operating income. This increase of 8% includes a favorable impact from foreign currency.
  • At the end of 2021, our Board of Directors authorized a 9% increase in the quarterly dividend, continuing our long history of returning cash to shareholders. We are proud to be a dividend aristocrat, having paid a dividend each year since 1925 with increases for the past 36 years.

Our 2021 operating performance amidst a dynamic environment proves the strength of our business model and the value of our products and capabilities as well as the successful execution of our strategies. We have delivered strong underlying performance while making strategic investments that provide a foundation for long-term sustainable growth. Our strong fundamentals and performance give us confidence in our continuing momentum. With our steadfast focus on growth, performance and people, we are confident we will continue to build long-term shareholder value.

2021 ANNUAL REPORT 3

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McCormick & Company Inc. published this content on 17 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 February 2022 19:27:02 UTC.