Table of Contents Our Strategic Building Blocks 2004 Financial Highlights Operating Company Overviews Letter to Shareholders Leadership Defined    Inspiration    Motivation    Trust    Passion    Vision    Innovation Corporate Responsibility Financial Review 2004 Shareholder Information Board of Directors Corporate Officers
Becki Giese Director of Operations Olive Garden "Hiring the right people in the restaurant business can be tricky, because it's perceived as an easy industry to get into. The fact is, however, that you have to enjoy working with the public and that's not for everyone. As someone who makes hiring decisions, I have had to sharpen my intuition skills. One of the most helpful tools has been Darden's Diversity Learning Experience. The course goes beyond gender and ethnic diversity to really teach you to appreciate many different types of personalities and to broaden your thinking about the role they can play in your restaurant operation." Inspiration These days, few people are fortunate enough to find a company where they can envision spending their entire career. Becki Giese says she's one of the lucky ones. In 1988, she started with the Olive Garden as a server, quickly advancing to certified trainer, a position that helped her pay her way through college. Upon graduation, Becki accepted a position with Olive Garden as a restaurant manager, and over the past 16 years she has steadily risen through the ranks. Today, Becki is a Houston-based director of operations, responsible for eight restaurants, and readily says, "I hope to retire with Olive Garden – I can't imagine finding a better place to work." Longevity is a hallmark of Olive Garden. For two decades it has been America's favorite family of Italian casual dining restaurants, and for 39 consecutive quarters it has posted same-restaurant sales growth on a year-over-year basis, a remarkable feat in the competitive casual dining segment. In fact, Olive Garden's annual sales increased by 11.1 percent in fiscal 2004, with record total sales topping $2.2 billion, and record annual operating profit. Olive Garden's enduring popularity reflects its ability to delight guests with a genuine Italian dining experience. How do you inspire thousands of employees around the country to do that consistently? One of Becki's favorite ways is to have new hires experience Olive Garden's legendary Hospitaliano!® firsthand. "Often, we will treat a recent hire to a dinner as our guest, " she explains. "The general manager will visit the table to find out how things are going and to let the team member know he or she is surrounded and supported by a real family. We want them to experience the same magic as our guests." Fresh, simple, delicious Italian food, complemented by a great glass of wine in a comfortable home-like Italian setting, where you're welcomed by people who treat you like family is central to Olive Garden's brand promise, a promise that continues to keep this 21-year casual dining veteran on top. In recent surveys, Olive Garden ranks highest in overall guest satisfaction among the largest operators in casual dining. Olive Garden also continues to outpace the industry benchmark in same-restaurant guest count growth, and leads the industry in top-of-mind brand awareness among consumers. With 19 net new restaurants opened during fiscal 2004 and plans to continue opening new restaurants, identifying new leadership will continue to be a priority for Olive Garden. Leadership Assessment and Development at Darden Restaurants (LADDR) is a process that helps Olive Garden and all other Darden concepts identify new leaders and create effective career development programs for them. LADDR is a two-day assessment of a restaurant manager's capabilities to become a general manager. If he or she isn't ready yet, LADDR determines what needs to be done to prepare the person for promotion. This intense evaluation process has led to much higher success rates for those who are promoted, and has proven to be an excellent leadership development tool for the Company. As for Becki Giese, she has developed her own way of identifying up-and-coming talent. She is constantly looking for people who are working "up a level." "I try to spot people who are already acting the role they aspire to," Becki says. "These are the people who will be leading Olive Garden through its next decade of success."