4Q 2011 Grupo Bimbo Leading Global Bakery Company Strong Brand - PowerPoint PPT Presentation

4Q 2011

Grupo Bimbo Leading Global Bakery Company Strong Brand & Broad Product Portfolio Grupo Bimbo (“GB”) is one of the largest bakeries in the   Over 8,000 products and more than 100 renowned world and one of the largest packaged food players with brands of a wide variety of baked goods, salted snacks, presence in 19 countries confectionary, wheat tortillas and packaged food LTM Key Financial Figures as of 4Q11 (US$ mm) 1 Revenues US$10,750mm EBITDA US$1,219mm Listed on the Mexican Stock Exchange since 1980  Market cap of US$10.6Bn 2   Investment grade credit ratings: Baa2/BBB/BBB (Moody‟s/Fitch/S&P)  1. LTM figures as of December 31, 2011 (1Q11+2Q11+3Q11+4Q11) Converted to US$ using the LTM average rate of 12.4395 2. As of February 27, 2012. Converted to US$ using the FX rate of $12.89 2 2

Broad Asset Base Company Structure Control Group 1 Float 76% 24% Central & 2 United States Mexico Europe Asia South America POS 3 Plants Routes Countries Associates 156 +50,000 19 +2 million +127,000 1. Control Group: Shareholdings of founders, their families and management Asia’s results are included in Mexico’s results 2. 3. POS: Points of sale 3 3

Leader in Core Product Categories in Key Markets Revenue Mix 2 (US$10.7Bn) United States  Leader nationwide Iberia LatAm  #1 in premium brands 0% 14%  #1 in English muffins  #1 portfolio of Hispanic Mexico brands 1 46%  Strong regional brands U.S. 40% Current Mix Portugal & Spain as of  #1 in packaged December Mexico baked goods 31st, 2011  #1 in packaged baked  Leading brands goods in sweet baked  #1 in pastry chain goods and snack  #2 in cookies and categories 2 EBITDA Mix(US$1.2Bn) crackers  #2 in salty snacks  #2 in confectionary Iberia LatAm -1% 1% U.S. 35% Central & South China 1 Mexico America 1  Pioneer in developing 64%  #1 in packaged packaged baked goods baked goods in 14 in Beijing and Tianjing countries 1. Source: Company Research 2. LTM figures as of December 31, 2011 (1Q11+2Q11+3Q11+4Q11) Converted to US$ using the LTM average rate of 12.4396 4 4

Successful Growth Case Acquisitions Have Been a Key Component Driving Growth Successful growth story through a combination 2011 of organic growth, strategic acquisitions combined with a conservative financial policy Accelerated International Expansion  Acquisitions have been a strong driver of growth across the packaged food industry 00s  Strong track record of integration  Development of leadership position in high growth 90s … markets 80s 70s 60s Reinvestment policy & strong balance sheet as a main growth driver 50s 1 plant 1945 10 distribution trucks 2 product-portfolio 5 5 5

Key Success Drivers One of the Long Run Player Innovation Leading Baked in a & Goods Company Very Attractive and Brand Equity Deep Consumer in the World Non-Cyclical Understanding Industry Over the last decade GB shifted from a strong local player to a leader in the Americas Strong Financial Experienced Exceptional & Strong Corporate Performance & Unparalleled Management Team Identity Responsible Distribution and Strong Financial Network Corporate Management Governance 6 6

Leading Baked Goods Company in a Very Attractive and Non-Cyclical Industry 1 LTM Revenues in US$Bn  Resilience to economic downturns Attractive + 12,921  Non-discretionary consumer Industry 2,171 10,329 products + 10,750 8,121  High consumption frequency Fundamentals 2,773 2,770 1,732  Highly fragmented industry (products & players) Industry  Major large scale players account for Competitive <12% of global market share Dynamics 2 Packaged Bread Penetration  Short shelf life of product makes industry local 75%  Scale and diversification Key Success 36%  Strong franchise and brand equity Drivers for  Product quality 22% 20% Large Scale 14%  Innovation capabilities Players 6% 5% 4%  Distribution 2% 2% 1% Portugal Spain Colombia Venezuela Uruguay Brazil Argentina Peru US Mexico Chile 1. Bimbo LTM figures as of December 31, 2011; Kraft´s biscuit business represents approximately 19% of total revenues, LTM figures as of December 31, 2011; Yamazaki excludes revenues from retail and confectionary segments, LTM figures as of December 31, 2011; Flowers Foods LTM figures as of December 31, 2011; IBC LTM figures as of December 13, 2008 (not audited); Weston Foods segment refers to the fresh and frozen baking company located in Canada and frozen baking and biscuit manufacturing in the U.S., LTM figures as of December 31, 2011 2. Datamonitor, 2009; Packaged bread (volume) refers to the pre- packed bread usually produced at industrial facilities 7 7

Strong Brand Equity along with Innovation & Deep Consumer Understanding Extraordinary Consumer Awareness of Brands Grupo Bimbo has built an unrivaled international portfolio of brands fueled by first class innovation  Strong  Innovation is a key determinant to achieve track record of creating, nurturing and managing brands strong local positions  Achieved leadership in core product  Strategies attuned to consumer‟s taste and categories in key markets needs based on deep consumer understanding  Portfolio of brands allows to capitalize  Ability to keep up with evolving consumer market and population growth trends  Brands for every meal, every occasion  Six innovation and nutrition institutes for new and every consumer group and better product development  Powerful brands adapted to local Mexico United States Brazil environments Sao Paulo Mexico City Fort Worth, TX Lerma Greenwich, CT Bay Shore, NY  Some products launched by Grupo Bimbo have defined the industry‟s course 8 8

Exceptional Distribution Network World Class Manufacturing Unparallel Distribution Network  GB‟s DSD 1 network is one of the largest fleets  GB operates 156 production facilities in the Americas and represents a major  Unmatched network of facilities with latest competitive advantage with a significant technological equipment leverage potential  Relentless focus on low cost manufacturing  50,000 distribution routes  Unique expertise in moving high volume of Manufacturing location and distribution products through a high rotation capillary reach are key for local execution distribution system  Reaches more than 2 million POS Grupo Bimbo  Attuned distribution model to each channel Distribution Model ≈ 80% (Company owned) Client Base Structure ≈70% Modern 2 (Sales by channel) 1. DSD refers to Direct Store Distribution 2. Modern Channel includes, among others, Supermarkets, Warehouses, Clubs, C- Stores, etc. Traditional channel refers mainly to Mom & Pops 9 9

Experienced Management Team and Strong Corporate Governance Board of Management Directors  Positioned the Company as market leader in Audit Corporate Compensation Finance & Committee Practices & Benefits Planning the products and countries where present Committee Committee Committee (5 independent members) (3 independent (5 members, 1 (7 memebers, 1  Proven track record of stability and sustainable members) independent) independent) growth Roberto Servitje  Developed innovative ideas and best practices President in manufacturing Daniel Servitje CEO  Successfully completed and integrated 38 acquisitions over the last 10 years Pablo Elizondo Javier A. Guillermo Javier Millán Senior González Quiroz Personnel Executive VP President of CFO Bimbo Identity, Corporate Culture & Citizenship Gary Prince Gabino Gómez Miguel Angel José Manuel President of President of Espinosa González  GB ranks among the most respected General Manager General Manager Bimbo Bakeries Barcel companies of the world 1 of OLA of Bimbo Iberia  Reputation built on a strong corporate identity and brand equity Governance  Key component of GB‟s corporate identity is Corporate Governance aligned with shareholders‟  its company-wide Social Responsibility interest Program  40% of board members are independent  Complies with WHO‟s Global Strategy on Diet and Physical Activity & Health  4 corporate committees 1. According to the Reputation Institute (September 26, 2011) 10 10

Strong Financial Performance… Revenue Growth (1) EBITDA Growth (1) (US$ in millions) (US$ in millions) EBITDA Margin 10,750 1,224 1,220 9,274 1,173 8,629 7,375 880 6,615 791 5,835 712 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Iberia Latin America U.S. GB 12.2% 12.0% 11.9% 13.6% 13.2% 11.3% ‟06 - „11 CAGR: 15.4% 15.0% 15.5% 16.5% 16.6% 15.2% MX 3.7% 3.4% 3.0% 11.5% 10.9% 9.8% Mexico United States Latin America U.S. LatAm 5.1% 7.8% 7.6% 7.0% 4.7% 1.1% 4.8% 25.4% 25.0% Strong and stable cash flow generation ____________________ (1) Figures converted to US$ using: year end exchange rate for 05 - 07 and average year exchange rate for 08 - 11 11 11