Investor Presentation 2016
Control Group : 76% Market Cap: US$11.4 bn (1) Float : 24% POS 2016 Revenues (2) Countries Plants Routes Sales Centers Associates Brands Products US$13.5 Bn 22 171 ≈ 55,000 ≈ 1,700 ≈ 2.7 million ≈130 ,000 ≈100 ≈10,000 5 YR CAGR: 4.7% North America Mexico Latin America Europe Asia U.S. Canada _______________ 1. As of June 11, 2014 in US$ at the FX rate of 13.0Ps./US$ 2. 2013 Revenues in US$ at the average LTM FX rate ______________ 2 1. As of February 22, 2017. Expressed in US$ at the FX of $19.91 Ps./US 2 2. Converted to US$ with the average FX rate of that period
Where do we stand? A Global Consumer Products Company and the • leader in the baking industry space Remarkable growth story with financial stability • Investments on manufacturing and logistics capabilities • targeted to foster productivity Unyielding discipline on a conservative financial • policy Successful culture of business integration , recently in • North America, Latin America and Europe Relentless effort on innovation and sustainability to • increase brand equity 3 3
Successful growth story Frozen Argentina Long term view and a strict reinvestment policy 2016 Innovation and execution continue to drive organic growth 2015 Acquisitions have been a key component to gain global reach 2014 Leadership position in both, mature and high growth markets 2011 Accelerated international expansion during the last decade 2009 00s 90s 80s 70s 50s 60s 1945 4 4
OUR VISION 5 5
KEY CAPABILITIES 1 2 3 4 5 6 6
Seasoned management team and sound governance Management Daniel Servitje Positioned the Company as market leader in the products and • Chairman of the Board countries where present Proven track record of stability and sustainable growth • Audit Committee and Results and Evaluation Finance & Planning Corporate Practices Committee Committee Successfully completed and integrated 48 acquisitions over • (6 independent (5 members, (7 members, 1 the last 10 years members) 2 independent) independent) Governance Daniel Servitje CEO Corporate Governance aligned with shareholders’ interest • 39% of board members are independent • Javier A. González Pablo Elizondo Gabino Gómez 3 corporate committees • Executive VP of Executive VP of Executive VP of Grupo Bimbo Grupo Bimbo Grupo Bimbo Social Responsibility Alfred Penny GB ranks among the most respected companies of the world (1) Guillermo Quiroz • President of Bimbo CFO Bakeries USA (BBU) Reputation built on a strong corporate identity and brand • equity Raul Arguelles Key component of GB’s corporate identity is its company-wide Reynaldo Reyna • Chief HR and Chief Global Services Social Responsibility Program Corporate Affairs Complies with WHO’s Global Strategy on Diet and Physical • Activity & Health 7 7 1. According to the Reputation Institute
Strong Power Brands 3 >$500 million 4 Billion dollar brands dollar brands 8 Source: IRI & Nielsen; Retail Sales Price 8
9 9
We are developing products and categories that lead new megatrends 10 10
A Well Balanced Business… Revenue and Adj. EBITDA Breakdown (1) North America • Sales: 53% • EBITDA: 44% China ( 2 ) Europe Mexico • Sales: 4% • Sales: 32% • EBITDA: 1% • EBITDA: 54% Latin America • Sales: 11% • EBITDA: 1% _______________ 1. 2016 Revenues and Adj. EBITDA converted to US$ with the average FX rate of the period 2 . China’s results included in Mexico 11 11
…with a strong leadership position in each market North America U.S. Canada • • Leader nationwide #1 in buns & rolls • • #1 in premium brands #1 in breakfast China (1) • • #1 in English muffins #2 in bread • Pioneer in developing • Strong regional brands packaged baked goods in Beijing and Tianjing Europe Mexico • Portugal, Spain & U.K. #1 in packaged baked goods • #2 in cookies and crackers • #1 in bread & rolls in Spain • #2 in salty snacks • #2 in bread & rolls in Portugal • #2 in confectionary • #1 in bagels in the U.K. Latin America • #1 in packaged baked goods in 15 countries _______________ Source: Nielsen, Company filings 1. According to Company Research, included in Mexico´s results 12 12
Exceptional manufacturing capabilities 40+ Focus in low-cost State-of-the-art facilities million pieces are manufacturing and in all of our markets produced daily efficiency 13 13
World Class Distribution 79+ Guarantees quality Exceptionally serves all of Commitment to its distribution channels local execution and freshness Trips around the Earth daily 14 14
Strong Financial Performance Revenue Growth (1) Adj. EBITDA Growth (1) US$ millions US$ millions 13,164 13,786 14,064 13,818 13,514 1,570 1,467 1,370 1,351 10,732 1,183 1,070 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Stock Performance (2) GB 11.0% 8.1% 9.8% 9.8% 10.2% 11.6% YTD return, % Mexico 14.3% 13.8% 15.8% 16.7% 17.6% 18.7% + 2% North America 9.8% 6.4% 7.3% 6.2% 8.3% 9.4% Latin America 1.7% -1.1% 0.7% 3.9% 2.1% 1.0% (3) + 0% Europe -18.6% -3.8% 2.7% -8.7% -0.9% -4.4% ____________________ 1.Figures converted to USD using the 12M average FX rate for each year, Figures after 2011 in IFRS 15 2. As of February 22 nd , 2016 15 3. Grupo BMV: Mexican IPC Index (Índice de Precios y Cotizaciones)
Cash flow stability across time allows long term planning Margins Evolution, % EBIT Margin Adj. EBITDA Margin Gross Margin 51.2 53.1 54.8 56.2 56.7 53.7 53.3 53.0 54.0 53.4 52.8 51.1 52.8 52.8 51.0 50.7 52.3 53.0 53.3 54.0 53.3 48.6 47.9 Integration/transformation efforts & IFRS 12.3 13.5 13.8 13.7 14.1 13.6 10.7 10.3 11.1 12.8 12.0 12.0 11.9 13.6 13.2 11.0 13.0 10.7 11.6 9.8 9.8 9.5 8.1 8.9 10.4 9.7 9.9 10.3 9.7 9.7 9.7 9.3 9.3 9.2 8.9 8.2 8.0 7.2 7.1 7.1 7.2 7.0 5.5 6.4 5.9 4.3 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Best-in-Class execution combined with a relentless focus on low cost operation in a resilient industry results in financial stability over time ____________ * Figures after 2011 in IFRS 16 16
Responsible Financial Policies Dividend History Commitment to a strong Balance Sheet • MXN millions Ongoing financial flexibility through a • Ordinary Dividends US$2 billion multi-currency revolving Extraordinary Dividends credit facility , maturing on March 2019 1,646 (2) Reinvestment as the pillar of the • company’s long term view 1,129 Conservative Risk Management policy • aligned with the company’s strategy 706 647 776 Mitigate exposure to raw material 588 • 541 541 470 cost fluctuation Conservative approach towards FX • - and interest rate risks - 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ____________ 1. Dividend yield calculated with the stock price of the day the dividends were paid. 17 2. Paid in advance for 2014 and 2015 17 *FX rates: 2007: 10.84; 2008:10.52; 2009:13.36; 2010:12.22; 2011:11.55; 2012: 13.11; Apr 2013:12.28; Dec 2013: 13.00; Apr 2016: 17.31
Conservative Approach Towards Leverage Currency Mix Debt Amortization Profile (1) % US$ millions Total Debt: US$3,858 mm Avg. Tenor: 8.3 yrs. Avg. Cost: 4.5% 10% 4% 162 23% 63% 800 800 800 500 387 242 167 2017 2018 2019 2020 2021 2022 2023 2024 2026 ... 2044 Local Bonds Bank Loans Foreign Bonds CAD EUR MXN USD ____________ 1. Debt amortization profile as of September 30, 2016. Figures converted to US$ at the FX rate of 19.50 Ps./US$, Does not include subsidiaries debt of US $165 mm, includes only indebtness in Canada Bread 18 18
Conservative Approach Towards Leverage Track Record of Deleveraging Total Debt/ Adj. EBITDA BBB Rating 3.3x (1) 3.2x (2) 3.1x 3.0x 2.9x 2.9x 2.5x 2.3x 1.9x 2.3x 2.2x 1.5x 1.1x 1.2x 1.1x 0.9x 0.7x 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011* 2012 2013 2014 2015 2016 ____________ 1. Pro forma figures with Weston Foods acquisition 2. Pro forma figures with Canada Bread acquisition * Figures after 2011 in IFRS 19 19
Recent Acquisition Producer of sweet baked goods and buns & rolls in Spain and Portugal Revenue growth of ≈ 70% in • Strong the region Brand Equity Synergies of € (40 – 50) • million (1) Integration expenses: ≈€ 70 • million High single digit pro-forma • EBITDA margin (1) (1) Expected to be achieved in 30 months 20 20
Annex: Financial Results by Region 21
Grupo Bimbo Higher sales in all regions Revenue Growth (1) MXN millions Solid organic growth in Mexico 4Q16 4Q15 % Change Net Sales 2016 2015 % Change FX benefit 68,862 59,519 15.7 Grupo Bimbo 252,141 219,186 15.0 Donuts Iberia acquisition Adj. EBITDA Lower raw material costs in MXN millions North America, Latam and Europe 4Q16 4Q15 % Change Adj. EBITDA 2016 2015 % Change Lower restructuring expenses Grupo Bimbo 8,618 6,950 24.0 29,297 23,369 25.4 in the U.S. ZBB 4Q16 4Q15 Change pp Adj. EBITDA (%) 2016 2015 Change pp Higher generals expenses in 12.5 11.7 0.8 Grupo Bimbo 11.6 10.7 0.9 Latam Integration expenses in Canada 22 22
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