INVESTOR PRESENTATION F o u r t h Q u a r t e r 2 0 1 8
Grupo Bimbo Today Control Group: 75% Float: 25% Points of Market cap (1) Sales (2) Adj. EBITDA (2) Countries Plants Routes Associates Products sale US$9.4 Bn US$15.0 Bn US $1.6 Bn 32 199 ≈ 60,000 ≈ 3.3 mm ≈138 ,000 ≈13,000 North America Mexico Latin America EAA U.S. Canada ______________ (1) As of December 27 th , 2018. Expressed in US$ at the FX of $19.67 Ps./US. (2) Net sales and Adjusted EBITDA for the last twelve months ended December 31 st , 2018 were Ps. 288,266 million and Ps. 31,705 million, respectively. Converted to US dollars using an average FX rate of the period of Ps. 19.24/US$. Adj. EBITDA excludes the non-cash charges related to the VSP and organizational restructuring initiatives implemented in 2 the U.S. and Canada.
Globally Present, Locally Committed Latin America (2) North America (1) Emerging Sales: 10% • Sales: 50% • EAA (3) Markets 43% Sales: 9% • 32 81 Grupo Bimbo Sales Split 48 Developed Markets (4) Mexico 57% Sales: 31% • 38 ____________ Figures for the last twelve months ended as of December 31 st , 2018 (1) Includes operations in the U.S. and Canada. (2) Includes operations in Central and South America. (3) Includes operations in Europe, Asia and Africa. (4) Developed markets include U.S., Canada and Europe. 3
#1 Player in the Industry with High Growth Potential Grupo Bimbo Industry • Resilience to economic downturns 4.5% • Non-discretionary consumer products Fundamentals Artisanal • High consumption frequency 31% US $426 Bn • Highly fragmented industry Competitive • Short shelf life of products makes industry Dynamics Industry (1) local Others 54% Private • Scale and diversification Label Success • Strong franchise and brand equity 10% • Product quality Drivers • Innovation capabilities GB • Distribution efficiency represents • Higher disposable income in Emerging 4.5% Unlocked Markets • Taste shift in Asia and the Middle East Value of the global market share • Greater variety of premium and healthier ____________ products in developed markets (1) Source : Global Data as of 2017 4
Strong Leadership Position Across Markets Latin America (1) EAA (1) North America Mexico Sliced Modern Channel 1 Bread Supermarkets, convenience (2) Buns & stores, among others Rolls ∙ (4) Bagels C A T E G O R I E S Traditional C A T E G O R I E S C H A N N E L S 2 ∙ C H A N N E L S English “Mom & pops” Muffins ∙ ∙ Cookies (3) Foodservice Cakes 3 QSR, schools, hospitals, Pastries restaurants, among others ∙ ∙ ∙ Tortillas ∙ ∙ ∙ Salty Others 4 Snacks Vending machines, wholesale, ∙ ∙ among others Confectionery ∙ GB market share not within top 3 in ranking ____________ Source: Nielsen, IRi and Company Information (1) Market share position for the countries where GB participates in each category. (2)Excludes U.K and India. (3) Excludes China, Morocco and U.K. (4) UK market 5
Global Brands with Top of Mind Awareness + US $100 + US $500 10 2 Brands Brands M I L L I O N M I L L I O N + US $1 5 Brands + US $250 5 Brands B I L L I O N M I L L I O N 19* 11* 14* 20* ____________ *Brands in more than 10 countries Source: Internal information on estimated retail sales by brand considering the last twelve months as of December 31, 2018 6
World Class Production and Distribution Capabilities with Superior Execution at the Point of Sale Focused on 199 facilities Investing in robotic low cost process with access to state- automation of-the-art technology production Benefit from Scale and Efficient Production Capabilities Quality and More than One of the Our distribution largest team travels every 3.3 million freshness day the equivalent fleets in points of sale guaranteed of 108 laps served America around the World 7
Our Innovation Platform 2018 Success Stories Disruptive product innovation In-store bakery E-commerce Distribution capabilities Investment in promising start ups Leveraging disruptive techology Electric vehicles Big Data: increasing our information processing and storage capabilities TECHNOLOGY Artificial intelligence Packaging and zero waste Water treatment in plants Residual energy recovery in ovens 8
The Management Team has Positioned Grupo Bimbo as a Global Market Leader Top Management Track record of stability and sustainable growth • Successfully developed and consolidated market leadership • D A N I E L S E R V I T J E Focus on effective and rapid response to the constantly changing consumer • Chairman of the Board demands and competitive environment Audit Committee Results and Finance & Outstanding Corporate Governance and Corporate Evaluation Planning Practices Committee Committee (5 independent (5 members, (6 members, Corporate Governance aligned with shareholders’ interests • members) 1 independent) 1 independent) 35% of board members are independent • 3 corporate committees • Daniel Servitje was rewarded 1 st place as the leader with the best corporate • D A N I E L S E R V I T J E reputation by Merco for three years in a row and one of the world´s greatest leaders CEO by Fortune Focused on Social Responsibility JAVIER A. GONZÁLEZ RAFAEL PAMIAS GABINO GÓMEZ Executive VP Executive VP Executive VP Steering Committee For the second consecutive year, Grupo Bimbo was named “One of the most ethical • RAÚL OBREGÓN RAÚL ARGÜELLES DIEGO GAXIOLA companies in the world” in 2018 by the Ethisphere Institute Chief Global Chief HR and Corporate CFO Transformation Affairs Recognized as “The Company with the best corporate reputation in Mexico in 2018” • by Merco FRED PENNY MIGUEL ÁNGEL ESPINOZA ALEJANDRO PINTADO The most committed Company in Mexico to the use of renewable energies and • BBU President Bimbo President Barcel President sustainability – MIREC Complies with the global strategy of the World Health Organization on diet, physical • activity and health 9
Building a Sustainable, Highly Productive and Deeply Humane Company First Company in Mexico to Bimbo Global Energy Race produce Clean Energy 2018 setting in motion 110K participants in 23 countries Certificates for Distributed Generation Grupo Bimbo will match Joined RE100, with 100% of U.S. energy a commitment to consumption with wind be 100% renewable power from Invenergy’s by 2025 Santa Rita East Wind Farm. Grupo Bimbo opened its doors to 2,000 “Youth 175 Good Neighbor Building the Projects were completed Future” in 2019 276 institutions were supported with economic and product donations This is how we reach our Vision , fulfill our Mission and meet our Purpose 10 10
Sustained Growth with Potential to Increase Profitability Net Sales (1) Adj. EBITDA (1) 288.3 31.7 29.3 27.3 267.5 252.1 23.4 219.2 187.1 18.4 176.0 17.3 2013 2014 2015 2016 2017 2018 2013 2014 2015 2017 2018 2016 GB 9.8% 9.8% 10.7% 11.6% 10.2% 11.0% 15.8% 16.7% 17.6% 19.1% 17.7% 18.2% Mexico North America 7.3% 6.2% 8.3% 9.4% 9.2% 9.0% 0.7% 2.1% 2.6% Latin America 3.9% 1.0% 1.9% ____________ EAA -3.8% -0.9% -4.4% 1.4% -8.4% 0.4% (1) Figures in billions of Mexican pesos and using a 5 year period. 11
2018 Snapshot: I n v e s t i n g t o e n h a n c e G r o w i n g i n a s u s t a i n a b l e w a y p r o f i t a b i l i t y Closed the year with record levels in net Restructuring investments • • sales, gross profit, operating income and VSP in the U.S. o adjusted EBITDA, highlighting the strong sales Organizational restructuring in Canada o 4 plant closures performance in Mexico and North America o Integrations: Donuts Iberia and Mankattan Acquisitions: Mankattan in China and Nutra • • CAPEX totaled approx. US $750 M • Bien in Chile Zero base budgeting savings • Became #2 player in China • Expanded net margin by 30 basis points • I m p r o v i n g o u r f i n a n c i a l p r o f i l e C h a l l e n g e s Delays in the integration in Spain Deleveraged the balance sheet to 2.8x total • • Higher inflationary environment in the U.S. debt/Adj. EBITDA • Change in our debt currency mix Challenging macroeconomic situation in • • Repurchased: Brazil and Argentina • ~Ps. 1.2 billion in shares o ~Ps. 450 million in local bonds o Issued one hybrid bond • US $500 mm @5.95% o 12 12
L O O KING FO RWARD B y 2 0 2 0 , w e t r a n s f o r m t h e b a k i n g i n d u s t r y a n d e x p a n d o u r g l o b a l l e a d e r s h i p t o b e t t e r s e r v e m o r e c o n s u m e r s 13
Accelerating and Creating Venues of Growth New growth avenue for Grupo Bimbo • B i m b o Present in 73% of the global QSR • Q S R markets High growth industry • World’s most populated country • 2 nd largest economy • 6.6% average GDP growth • C H I N A Increased manufacturing footprint from 1 to • 10 plants (1) following the acquisition of Bimbo QSR & Mankattan 7.2% average GDP growth • 2 nd most populated country • #7 world economy • I N D I A Opportunity to expand nationwide • Fastest growing economy in 2018 • Bakery industry doubled in the last 5 years • ____________ (1) Excluding the Bimbo plant. 14
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