Investor Presentation Third Quarter 2017
A Global Consumer Food Company, Leader in the Baking Industry and a Relevant Participant in Snacks 2 2 2
Control Group : 75% Market Cap: US$11.4 bn (1) Float : 25% LTM 3Q17 Revenues (2) Countries Plants Routes Sales Centers POS Associates Brands Products US$13.9 Bn 32 195 ≈ 57,000 ≈ 1,700 ≈ 3.0 million ≈137 ,000 ≈100 ≈13,000 North America Mexico EAA LATAM U.S. Canada (1) As of September 28 th , 2017. Expressed in US$ at the FX of $18.16 Ps./US. (2) Figures for the last 12 months ended on September 30, 2017, converted to US dollars using an average FX rate 3 3 of the period of Ps. 19.11/US$
Successful Growth Story 2017 40+ acquisitions Frozen Argentina 2016 2015 in the last 10 years 2014 2011 2009 00s 90s 80s 70s 50s 60s 1945 4 4
A Well Balanced Business Mix… Grupo Bimbo Sales & EBITDA Split North America EAA 11% Net Sales 52% US $13.9 Bn (2) 6% North America (1) 31% Mexico Mexico Latin America EAA (3) 45% 1% Adj. EBITDA -3% US $1.5 Bn (2) Latin America 57% Emerging Markets (1) Developed Markets (42% of sales) (58% of sales) Source: Nielsen, IRi and Company filings (1) Information for the last 12 months as of September 30, 2017, with the exception of East Balt Bakeries which includes figures for the last 12 months ended in June 30, 2017 of US $420 million. (2) Figures do not include East Balt Bakeries. (3) EAA region includes operations in Europe, Asia and Africa. 5 Note: Eliminations between the regions have been subtracted from the results of Mexico
…with Strong Leadership Position Across Markets Sliced Buns & English Salty Bagels Cookies Cakes Pastries Tortillas Confectionery Bread Rolls Muffins Snacks ∙ ∙ ∙ ∙ U.S. #1 #1 #1 #1 #2 #2 ∙ ∙ ∙ Canada #2 #1 #1 #2 #1 #1 ∙ ∙ Mexico #1 #1 #2 #1 #1 #1 #2 #3 ∙ ∙ #1 #1 #2 #1 #2 (2) #2 (1) Latin America (3) ∙ ∙ #1 (4) #1 (5) #1 (7) #2 #1 (6) EAA (3) ∙ GB market share not within top 3 in ranking ____________ Source: Euromonitor, IRi and Company Information (1) Excludes Ecuador and Peru, where GB is #2. (2) Excludes Peru, where GB is #1. (3) Market share position for the countries where GB participates in each category. (4) Excludes China and India. (5) Excludes U.K., Portugal (GB #2)and India. (6) Excludes China, Morocco and U.K. (7) Excludes Spain 6
OUR MISSION 7
Opportunity to Grow in a Fragmented Market… Global Baking Industry Defensive, fragmented • industry with low penetration and opportunity of scale Grupo Bimbo 3.2% US $415 Player 2 2.3% Products for different times of • billion Player 3 1.3% consumption Others 93.2% Migrating consumer • preferences to more convenient products GB represents 3.2% Rising per capita income in • emerging markets from global market 8 8
…by Penetrating Households Globally 40 11 th place in global Penetration (%) ranking among food Household brands 20 0 0 2 4 6 8 10 12 14 Frequency (times per year) Source: KantarWorld Panel Brand Footprint 2017 - Food Category 9 9 Note: Indomie is not included in the graph(4.7% household penetration and 35.5 times per year of frequency)
OUR VISION 10 10
1 KEY CAPABILITIES 2 3 4 5 11 11
The Management Team has Positioned Grupo Bimbo as a Global Market Leader Top Management Daniel Servitje Track record of stability and sustainable growth • Chairman of the Board Successfully completed and integrated over 40 acquisitions over the • last 10 years Audit Committee Results and Finance & Evaluation Planning and Corporate Outstanding Corporate Governance Committee Committee Practices (5 independent (5 members, (6 members, Corporate Governance aligned with shareholders’ interest • 1 independent) 1 independent) members) 35% of board members are independent • Daniel Servitje 3 corporate committees • CEO Focused on Social Responsibility Pablo Elizondo Gabino Gómez Javier A. González Executive VP of Executive VP of Executive VP of Named “One of the most ethical companies in the world” in 2017 by • Grupo Bimbo Grupo Bimbo Grupo Bimbo the Ethisphere Institute 39 years 35 years 39 years Ranked among the most respected companies in the world (1) Raúl Argüelles • Reynaldo Reyna Diego Gaxiola Chief HR and Chief Global Services CFO Corporate Affairs Recognized as “The company with the best corporate reputation in • 15 years <1 year 5 years Mexico in 2017 ” by Merco. “Its reputation has been built on a strong José Gabriel Calderón Raúl Obregón corporate identity and brand image” Alfred Penny Chief Global Chief Global BBU President Auditing Officer Transformation Social Responsibility Program as a key component of corporate 36 years • 7 years 15 years identity Complies with the global strategy of the World Health Organization • on diet, physical activity and health Note: Years of experience at Grupo Bimbo 12 12 (1) According to the Reputation Institute
Global Brands with Top of Mind Awarness 2 5 +US $500 million +US $1 billion 8 8 4 +US $100 +US $100 +US $250 million million million 13 13 Source: Internal information on estimated retail sales by brand considering the last twelve months as of September 30, 2017
Key Categories Solutions Packaged bread tortillas, pitas, wraps, pizza base, sliced bread, premium, buns & tostadas and totopos rolls, breakfast and frozen bread Sweet baked goods Prepackaged foods cakes and pastries Cookies Confectionery sweet cookies and crackers Salty snacks Others 14 14
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World Class Distribution with Superior Execution at the Point of Sale Global 90 More than 3.0 Quality and presence with Trips around million points freshness local the World of sale served guaranteed daily execution Benefit from Scale and Efficient Production Capabilities 49 million 195 facilities Focused on low cost packages with access to state- produced of-the-art production everyday technology 16 16
Continue to Invest in Innovation Donuts Bread Snacks We are developing products and Entenmann’s on the path Bread expertise to for market leadership in reinvent “ snackification ” categories that follow new megatrends the US Expansion Portion Control Opportunities Little Bites is the #1 brand Breakthrough Innovation in the US as an option for award for Takis in US, since kids’ lunch 2014 Tasty Benefits Our Core Business Successful cross- The unique baked corn market sharing product with chia and rice products 17 17 17
Snacks Category: Creating Memorable Experiences for Every Consumption Occasion US$ 429 bn industry globally , grew at an annual rate of 4.8% since 2012 and • forecasted to reach US$ 550 bn by 2022 Snacks With urbanization and longer working hours, consumers eat snacks for • convenience , increasingly replacing meals Snack sales in Latin America are forecasted to grow at nearly double the CAGR • than that of developed markets (1) over the next 5 years Global snacks industry is highly fragmented , suggesting room for consolidation • Core-Brand Portfolio Well Positioned for Future Growth Market Size & Growth Potential Savory Snacks Sweet Snacks Confectionery High Growth Categories % of Snacks 55% 29% 16% Retail Sales (2) Our Key #4 Global Tortilla Brands #2 Sweet Snacks #1 Sugar Chips brand & #4 nuts Brand in Latin Confectionery brand in Latin America Brand in Mexico America Source: Euromonitor, October 2017 (all values in nominal terms) 18 (1) Developed markets include North America and Europe. (2) 2017E Global Retail Value reflected in nominal terms by Euromonitor 18
Our Capabilities are Grounded on our Commitment with Sustainability Focusing on four pillars Not a department or integral to our strategy and function, but rather a overseen by the Sustainability way of doing business Central Committee This is how we reach our Vision, fulfill our Mission and meet our Purpose: To Build a Sustainable, Highly Productive and Deeply Humane Company 19 19 19
Sustained Growth with Focus on Profitability Adj. EBITDA (1) & margins by region Net sales (1) CAGR (2) : 9.2% CAGR (2) : 15.6% 11.6 10.7 10.7 265,446 252,141 9.8 9.8 219,186 29,298 28,398 187,053 8.1 176,041 173,139 23,369 18,420 17,326 14,076 2012 2013 2014 2015 2016 LTM 3Q17 2012 2013 2014 2015 2016 LTM 3Q17 Mexico International Mexico 13.8% 15.8% 16.7% 17.6% 18.7% 18.4% 2012 Sales Split (3) 60% 40% North America 6.4% 7.3% 6.2% 8.3% 9.4% 9.3% Mexico International Latin America -1.1% LTM3Q17 0.7% 3.9% 2.1% 1.0% 1.0% 31% 69% EAA -8.7% -3.8% -0.9% -4.4% 2.7% -5.6% (1) Figures in millions of Mexican pesos. (2)CAGR: Compound Annual Growth Rate in millions of Mexican pesos, using a 4.75 year period for the past figures. (3) Eliminations have been removed from 20 20 Mexico’s results.
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