Dear ShareholDerS anD FrienDS, We are privileged to be a part of the vitally important food industry. Our family of nearly 5,000 employees recognizes we can have a positive and meaningful impact on society through our continued focus on Our Purpose of helping to bring families together to share memorable meals and moments. We are honored that consumers choose our iconic brands and portfolio of trusted products as part of their everyday meals, snacks shared with friends, and family celebrations. It is through these times that we connect with each other, nurture relationships, build meaningful traditions, and create lasting bonds with those most special to us. At Smucker, we have always believed that how we do things is as important as what we do, and by seeking to fulfill Our Purpose, sales and earnings will follow. Our shared Purpose, combined with the implementation of our clear Strategy, enables us to best serve our constituents and has ensured that we continue to deliver strong results, as we delivered record sales, earnings, and cash flow in fiscal 2013. Among the highlights of our record fiscal year: •    et sales were up 7 percent to $5.9 billion. N •    on-GAAP earnings per share rose 14 percent to $5.37. N •    ash generated from operations increased 17 percent  C to $856 million, with free cash flow increasing to almost  $650 million. •    e repurchased nearly 4 percent of our shares,  W utilizing nearly $360 million in cash. •    he annual dividend paid per share increased  T approximately 9 percent. These results were achieved while introducing a number  of innovative new products, successfully capitalizing on new businesses, and making significant investments toward our future growth. Traditional marketing vehicles, such as television  advertising, consumer promotions, and sponsorships, remain a strong focus as well. Twenty-five new television  commercials were developed in fiscal 2013. An exciting new marketing initiative is the sponsorship of the 2014  Winter and 2016 Summer U.S. Olympic and Paralympic  teams. We are honored to be associated with, and help support, the dreams of U.S. athletes. Related initiatives will span TV advertising, retailer and consumer promotions, product packaging, and digital support behind our participating brands – Folgers, Jif, Smucker’s, and Smucker’s ® Uncrustables ®. These innovative offerings include our Folgers Gourmet Selections ® and Millstone® K-Cup® pack product lines, which generated sales of nearly $290 million in fiscal  2013. In addition, Folgers® Fresh Breaks®, a premium, single-serve instant coffee with a more roast-and-ground  taste; Jif ® Hazelnut, our first specialty nut spread offering; new Pillsbury ® seasonal baking products; new Dunkin’ Donuts® seasonal coffee flavors; and a line of Smucker’s ® Natural fruit spreads were introduced. We also have a robust innovation lineup heading into fiscal 2014. We look forward to introducing the Dunkin’ Donuts ® Bakery Series™ of flavored coffees, the 100 percent UTZ Certified premium coffee line under the Life is good® brand, and expanding our presence in the peanut butter and specialty nut butter segment through Jif Whips and Jif Almond and Jif Cashew butters.  The success of our product innovations is the result of a  strong commitment to quality and innovative marketing programs. Our marketing initiatives strive to connect with consumers at the right time and where they are, which is increasingly online. Digital efforts make up approximately 15 percent of our total U.S. Retail marketing spending. Investing in Our Future Our record financial results were achieved while also making significant investments toward future growth at our manufacturing facilities and within our supply chain. Restructuring of coffee and fruit spreads operations was largely completed in fiscal 2013, with a goal of making us as efficient and agile as possible. This restructuring  is expected to yield $60 million in run-rate savings in  fiscal 2014 and is on track to achieve the full $70 million  in fiscal 2015. Innovating for Consumers Our commitment to innovation allows us to continue to meet the ever-changing needs of consumers. New  products introduced in the past three years delivered net sales of $530 million in fiscal 2013. This includes  more than 60 new products launched in fiscal 2012  and 70 new products in fiscal 2013.  4 The J. M. Smucker Company