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

SLIDE 1

4Q 2011

SLIDE 2

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Grupo Bimbo

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

Grupo Bimbo (“GB”) is one of the largest bakeries in the world and one of the largest packaged food players with presence in 19 countries

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Listed on the Mexican Stock Exchange since 1980



Market cap of US$10.6Bn2

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Investment grade credit ratings:

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Baa2/BBB/BBB (Moody‟s/Fitch/S&P)

Strong Brand & Broad Product Portfolio Leading Global Bakery Company



Over 8,000 products and more than 100 renowned brands of a wide variety of baked goods, salted snacks, confectionary, wheat tortillas and packaged food LTM Key Financial Figures as of 4Q11 (US$ mm) 1 Revenues US$10,750mm EBITDA US$1,219mm

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

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Broad Asset Base

1. Control Group: Shareholdings of founders, their families and management 2. Asia’s results are included in Mexico’s results 3. POS: Points of sale

Control Group1 Float

Central & South America

76% 24%

Europe

Company Structure

Mexico United States Asia

2

3

Plants Routes Countries POS3 Associates 156 +50,000 19 +2 million +127,000

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Leader in Core Product Categories in Key Markets

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 United States

Leader nationwide
#1 in premium brands
#1 in English muffins
#1 portfolio of Hispanic

brands1

Strong regional brands

Mexico

#1 in packaged baked

goods

#1 in pastry chain
#2 in cookies and

crackers

#2 in salty snacks
#2 in confectionary

Portugal & Spain

#1 in packaged

baked goods

Leading brands

in sweet baked goods and snack categories Central & South America1

#1 in packaged

baked goods in 14 countries China1

Pioneer in developing

packaged baked goods in Beijing and Tianjing

Mexico 64% U.S. 35% LatAm 1% Iberia

1%

EBITDA Mix(US$1.2Bn)

2

Mexico 46% U.S. 40% LatAm 14% Iberia 0%

Revenue Mix (US$10.7Bn)

2

Current Mix as of December 31st, 2011

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00s 90s 80s 1945 70s

1 plant 10 distribution trucks 2 product-portfolio

50s 60s 2011

Accelerated International Expansion

Successful Growth Case

Acquisitions Have Been a Key Component Driving Growth

…

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Reinvestment policy & strong balance sheet as a main growth driver

Successful growth story through a combination

f organic growth, strategic acquisitions

combined with a conservative financial policy

Acquisitions have been a strong driver of growth

across the packaged food industry

Strong track record of integration
Development of leadership position in high growth

markets

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Key Success Drivers

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

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+ +

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Leading Baked Goods Company in a Very Attractive and Non-Cyclical Industry

10,750 10,329 8,121 2,773 2,770 1,732 2,171 12,921

LTM Revenues in US$Bn

1 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

Resilience to economic downturns
Non-discretionary consumer

products

High consumption frequency

Attractive Industry Fundamentals

Highly fragmented industry (products &

players)

Major large scale players account for

<12% of global market share

Short shelf life of product makes

industry local

Key Success Drivers for Large Scale Players

Scale and diversification
Strong franchise and brand equity
Product quality
Innovation capabilities
Distribution

Industry Competitive Dynamics

75% 36% 22% 20% 14% 6% 5% 4% 2% 2% 1%

US Portugal Spain Mexico Colombia Venezuela Uruguay Brazil Argentina Chile Peru Packaged Bread Penetration

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Strong

track record

f

creating, nurturing and managing brands

Achieved leadership in core product

categories in key markets

Portfolio of brands allows to capitalize

market and population growth

Brands for every meal, every occasion

and every consumer group

Powerful

brands adapted to local environments Extraordinary Consumer Awareness of Brands

Innovation is a key determinant to achieve

strong local positions

Strategies attuned to consumer‟s taste and

needs based on deep consumer understanding

Ability to keep up with evolving consumer

trends

Six innovation and nutrition institutes for new

and better product development

Some products launched by Grupo Bimbo have

defined the industry‟s course

Grupo Bimbo has built an unrivaled international portfolio of brands fueled by first class innovation

Mexico City Lerma Fort Worth, TX Greenwich, CT Bay Shore, NY Sao Paulo Mexico United States Brazil

Strong Brand Equity along with Innovation & Deep Consumer Understanding

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Exceptional Distribution Network

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GB‟s DSD1 network is one of the largest fleets

in the Americas and represents a major competitive advantage with a significant leverage potential

50,000 distribution routes
Unique expertise in moving high volume of

products through a high rotation capillary distribution system

Reaches more than 2 million POS
Attuned distribution model to each channel
GB operates 156 production facilities
Unmatched network of facilities with latest

technological equipment

Relentless focus on low cost manufacturing

World Class Manufacturing Unparallel Distribution Network

Grupo Bimbo Distribution Model (Company owned) ≈80% Client Base Structure (Sales by channel)

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≈70% Modern

Manufacturing location and distribution reach are key for local execution

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

SLIDE 10

10 Board of Directors Corporate Practices Committee

(3 independent members)

Finance & Planning Committee

(7 memebers, 1 independent)

Compensation & Benefits Committee

(5 members, 1 independent)

Roberto Servitje President Daniel Servitje CEO Javier A. González President of Bimbo Gabino Gómez President of Barcel Gary Prince President of Bimbo Bakeries

Experienced Management Team and Strong Corporate Governance

Guillermo Quiroz CFO

Governance Identity, Corporate Culture & Citizenship Management

10 Pablo Elizondo Senior Executive VP Javier Millán Personnel Miguel Angel Espinosa

General Manager

f OLA

José Manuel González

General Manager

f Bimbo Iberia

Audit Committee

(5 independent members)

Positioned the Company as market leader in

the products and countries where present

Proven track record of stability and sustainable

growth

Developed innovative ideas and best practices

in manufacturing

Successfully completed and integrated 38

acquisitions over the last 10 years

Corporate Governance aligned with shareholders‟

interest

40% of board members are independent
4 corporate committees
GB ranks among the most respected

companies of the world1

Reputation built on a strong corporate identity

and brand equity

Key component of GB‟s corporate identity is

its company-wide Social Responsibility Program

Complies with WHO‟s Global Strategy on

Diet and Physical Activity & Health

1. According to the Reputation Institute (September 26, 2011)

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5,835 6,615 7,375 8,629 9,274 10,750

2006 2007 2008 2009 2010 2011

Iberia Latin America U.S.

712 791 880 1,173 1,224 1,220

2006 2007 2008 2009 2010 2011

Strong Financial Performance…

Revenue Growth (1) EBITDA Growth (1)

(US$ in millions) (US$ in millions) 12.2% EBITDA Margin

____________________ (1) Figures converted to US$ using: year end exchange rate for 05 - 07 and average year exchange rate for 08 - 11

Strong and stable cash flow generation

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15.4% 5.1% 3.7% 12.0% 15.0% 7.8% 3.4% 11.9% 15.5% 7.6% 3.0% 13.6% 16.5% 7.0% 11.5% 13.2% 16.6% 4.7% 10.9% 11.3% 15.2% 1.1% 9.8%

GB MX U.S. LatAm Mexico United States Latin America

4.8% 25.4% 25.0%

‟06- „11 CAGR:

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12 12 Mexican Peso crisis United States recession United States recession Asian crisis

Best-in-Class Execution + Resilient Industry = Financial Stability Over Time

Δ% 9.7 7.0 8.2 9.3

9.7 9.9 10.3 9.7 7.2 7.1 8.0 9.3 9.2 8.9 8.9 10.4 9.7 8.1 13.0 9.5 12.3 13.5 13.8 13.7 14.1 13.6 10.7 10.3 11.1 12.8 12.2 12.0 11.9 13.6 13.2 11.3 53.3 48.6 47.9 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 51.2

10 20 30 40 50 60 70 80 90 0.0 10.0 20.0 30.0 40.0 50.0 60.0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

EBIT Margin EBITDA Margin Gross Margin 4.0 5.1 2.8 3.6 3.4 3.9 5.1 9.1 5.4 8.5 28% 27% 14% 32% 79% 59% 4.0 3.4 3.1 2.8 3.3 3.8 6.3 7.2

22% -15% -6%
12% 19% -14%

7% -12%

31% -15%
15%

170%

Wheat prices

$US/bushel

Strong Financial Performance…

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1.2x 1.1x 0.7x 0.9x 2.4x 2.2x 3.1x 3.3x

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0.6x 0.4x 0.2x 0.4x 2.0x 1.9x 2.8x

2005 2006 2007 2008 2009 2010 2011

Total Debt/EBITDA #REF! Net Debt/ EBITDA

…and Responsible Financial Management

Highlights Flexible and healthy capital structure

 Secured US$ 1.3 billion syndicated loan (April 2011)- Refinanced

debt and partly funded Sara Lee‟s acquisition

 Term- out of US$800 million of 2012 banking facilities through senior

notes due 2020 Achieve rapid leveraging

 Target Debt/EBITDA < 2x

Strong commitment to Investment Grade ratings

 Baa2/BBB/BBB (Moody‟s/Fitch/S&P)

Strict management of working capital and disciplined Capex policy

 1x depreciation

Conservative dividend policy Responsible risk policy

 Mitigate exposure to raw material cost fluctuation  Conservative approach towards F/X and interest rate fluctuations  Use of derivatives only as risk management instruments

Dividends 2

0.9% 0.6% 0.7% 0.7% 1.0% Dividend Yield

(US$ in millions)

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Leverage 1

0.5% 0.7%

25 30 33 44 52 40 48 56

62 33 2004 2005 2006 2007 2008 2009 2010 2011

1.1% 2.2% 0.5%

____________________ 1) Debt/EBITDA ratio in MXN; If computed on USD as of December 2011 is 2.8x. 2) Figures converted to US$ using the FX of the day dividends were paid 3) Pro forma for Weston Foods, Inc, acquisition

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____________________ 1) As of February 28, 2012, FX: 12.8779 MXN/USD; Does not include debt at subsidiary level

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58 388 388 388 198 85 800 800 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Local Bonds Syndicated Loan Euros Loan International Bonds

Average Life: 6.6 years
Total Debt: US$3,106mm
Av. Financing Cost: 4.5%

…and Responsible Financial Management (pro forma February 2012)

Amortization Schedule

1

Debt Structure

1

1,222 1,222 1,222 283 1,600

3,105

Local Bonds Bank Facilities International Bonds Total 39% 52% 9%

Fix 95% Float 5%

Instrument Amount

(US$ millions)

Currency Average Life Bank Facilities 283 USD 3.1 years Bonds 2,823 MXN – USD 7.0 years Debt denominated in: USD 95% EUR 5%

By Type

Grupo Bimbo issued:

 January 2012: US$800 million of 4.50% notes due 2022 under the Reg-S Rule  February 2012: Ps 5,000 million Certificados Bursátiles (domestic bonds) at a fixed rate of 6.83% with a 6.5 year tenor  Current undrawn committed medium-term facilities for US$1,500 million until 2017.

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Grupo Bimbo ranks among the 20 most respected companies in the world (1)

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Its reputation is built on a strong corporate identity and brand equity

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Key component of Grupo Bimbo‟s corporate identity is its company-wide Social Responsibility Program

Strong Corporate Identity

Corporate Social Responsibility (CSR) Program & Sustainability

Commitment to

ur Associates

“Safety is our main priority” Commitment to the environment (e.g. introduction of biodegradable packaging and hybrid delivery vehicles) Commitment to our society (e.g. environmental & conservation projects and microfinance opportunities) Commitment to the consumers‟ health (e.g. elimination of trans fat acids, smaller serving sizes, addition of functional ingredients)

____________________ (1)In the 2009 survey of the Reputation Institute ranking of the world's largest companies in terms of reputation, Grupo Bimbo placed 17th – standing out as a company with an excellent reputation for the 4th consecutive year. For additional details: http://www.reputationinstitute.com

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Effective sustainability efforts are cross-functional & successfully executed across all brands

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CSR translates as a competitive advantage

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Grupo Bimbo understands that there is no conflict between doing well (financial impact) and doing good (social & environmental impact)

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Why Grupo Bimbo?

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Value

BIMBO

Stock Price 2006

13.5

2011

28.47

+ 111%

vs + 40% IPC

2% DJI
11% SPX

Consistency and focus on core business

Grupo Bimbo (“GB”) is one of the largest bakeries in the world and one of the largest packaged food players with presence in 19 countries

Stable cash flows Strongly positioned in Local & International Indexes

IPC (Prices & Quotations Index), Sustainability Index and others. MSCI Mexico International

“We Believe and We Create”

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Strict profit reinvestment policy Strong investment grade credit metrics

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BBB | Baa2 | BBB MxAA+ | Aa1.mx | AA+(mex)

S&P Moody’s Fitch

Why Grupo Bimbo?

Successful deleveraging history

0.9x 0.9x 1.1x 2.5x 1.8x 1.5x 1.2x 1.1x 0.7x 3.3x 2.4x 2.2x 2.8x

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Total Debt / EBITDA

(computed in US$)

Responsible financial management

Flexible and healthy capital structure
Achieve rapid leveraging: Target Debt/EBITDA < 2x
Strong commitment to Investment Grade ratings
Strict management of working capital and disciplined

Capex policy: 1x depreciation

Conservative dividend policy
Responsible risk policy

CAGR „06 – „11 Revenues: 13% EBITDA: 11.4% Top Notch of Asset Base

&

Successfully completed and integrated more than 38 acquisitions over the past ten years

&

SLIDE 18

Financials by Region & Recent Acquisitions

SLIDE 19

19 28,334 28,828 29,571 30,431 117,163

29,561 30,233 32,314 41,624 133,732

1Q 2Q 3Q 4Q 2010/2011

Sales '10 Sales '11

4.1%

GB - Quarterly Highlights

Revenue Growth (GB) EBITDA Growth (GB)

(MXN$ in millions) (MXN$ in millions)

3.5%

 Integration of Sara Lee in US and Spain  Effect of previous price increases  Good volume in Mexico and Latam, except

for the US (but with a lower decline than in previous quarters)

 FX effect

19 3,572 3,602 4,292 4,002 15,468 3,218 3,153 4,207 4,596 15,173 12.6% 12.5% 14.5% 13.2% 13.2% 10.9% 10.4% 13.0% 11.0% 11.3%

1Q 2Q 3Q 4Q 2010/2011

EBITDA '10 EBITDA '11 EBITDA margin '10 EBITDA margin '11

 Distribution efficiencies in Mexico

Commodity pressure in Mexico New routes & manufacturing facilities in US and Latam

9.0% 36.8% 14.1%

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20 14,300 14,062 14,443 15,075 57,870 15,328 15,323 16,461 17,256 64,368

1Q 2Q 3Q 4Q 2010/2011 Sales '10 Sales '11

9.0%

Mexico – Quarterly Highlights

Revenue Growth (Mexico) EBITDA Growth (Mexico)

(MXN$ in millions) (MXN$ in millions)

7.2% 20

 More efficient SG&A expenses

Commodity pressure

2,009 1,977 2,684 2,957 9,628 1,972 1,804 2,790 3,242 9,808 14.0% 14.1% 18.6% 19.6% 16.6% 12.9% 11.8% 17.0% 18.8% 15.2%

1Q 2Q 3Q 4Q 2010/2011 EBITDA '10 EBITDA '11 EBITDA margin '10 EBITDA margin '11

14.0%

 Effect of previous price increases  Healthy volume growth across the portfolio  All channels registered good growth

14.5% 11.2%

SLIDE 21

21 1,346 1,449 1,388 1,015

5,197 1,180 1,333 1,315 1,448 5,276

11.8% 11.9% 11.4% 8.4% 10.9% 10.7% 11.6% 10.9% 7.5% 9.8%

1Q 2Q 3Q 4Q 2010/2011 EBITDA '10 EBITDA '11 EBITDA margin '10 EBITDA margin '11

11,434 12,202 12,163 12,075 11,017 11,492 12,045 19,255 53,810

1Q 2Q 3Q 4Q 2010/2011 Sales '10 Sales '11

47,875

5.8%

59.5% 12.4%

USA - Quarterly Highlights

Revenue Growth (USA) EBITDA Growth (USA)

(MXN$ in millions) (MXN$ in millions)

3.6%

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 Integration on November of “NAFB” business of

Sara Lee

 Effect of previous pricing  Growth across most categories  FX effect

Volume decrease but with a lower decline than in previous quarters

 More efficient SG&A

Margin dilution and costs related to the integration of Sara Lee Ongoing investments in expanding the distribution network

1.0%
Sara Lee acquisition: 32.0%
Contribution from IO´s: 14.3%
Organic Growth: 13.2%

(9.9% FX effect)

SLIDE 22

22 3,240 3,297 3,672 3,999 14,207 3,943 4,202 4,639 5,784 18,568

1Q 2Q 3Q 4Q 2010/2011 Sales '10 Sales '11

20.3%

OLA - Quarterly Highlights

Revenue Growth (OLA) EBITDA Growth (OLA)

(MXN$ in millions) (MXN$ in millions)

13.9% 22

 Volume growth  Effect of previous price increases  Double digit organic growth

Higher commodity costs Sales and distribution expenses, new plant in Brasilia

207 177 231 45 657 62 32 120 201 6.4% 5.4% 6.3% 1.1% 4.6% 1.6% 0.8% 2.6%

0.2%

1.1%

1Q 2Q 3Q 4Q 2010/2011 EBITDA '10 EBITDA '11 EBITDA margin '10 EBITDA margin '11

24.1% 44.6% 30.7%

14

Organic growth:

28.5% 25.6%

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Recent Acquisitions - Each transaction is

driven by strong strategic rationale and business case, resulting in significant value creation

Acquired for an all-cash purchase price of US$709 million (Initial

value: US$959 million), which includes US$34 million in assumed liabilities

Attractive acquisition, which will add scale, diversify the brand

portfolio and complement the geographic footprint

Identified synergies of US$150 million to be achieved by 2014

Sara Lee North American Fresh Bakery - Earthgrains

Super Premium/ Variety Premium Sandwich/ White Regional/ Mass Specialty Ethnic Hispanic

1. Includes plants to be divested

Implied transaction multiples (c)

FV/LTM Revenues: 0.35x
FV/LTM EBITDA: 9.1x
FV/Synergized EBITDA: 3.1x (d)

Synergies(d) Pro Forma(b)

Net revenues (US$ mm)

3,701 2,036 5,737

EBITDA (US$ mm)

406 78 150 634

Margin

11.0% 3.8% 11.1%

Routes

8,480 4,700 13,180

Associates

14,000 13,000 27,000

Plants

34 41 75

(a) (a) ____________________ a)LTM as of June 30, 2011 b) Figures are pre consent decree divestitures c) Multiples based on US$709mm enterprise value and LTM figures as of June 30, 2011; assumes no tax benefits and proceeds or impact from divestitures associated with the Consent Decree agreed with the DOJ d) Assuming US$150 million synergies by 2014

Sara Lee: 411 BBU: 34

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Recent Acquisitions - Each transaction is

driven by strong strategic rationale and business case, resulting in significant value creation

Sara Lee Spain and Portugal Fargo Brands

Acquired for an all-cash purchase price of

€115 million

Entry to sizeable market through

established brand leader

Market leading brands in the bread, sweet

baked goods and snack categories

Implied transaction multiples:
FV/LTM Revenues: 0.4x
FV/pro forma LTM EBITDA(a): 6.7x
This acquisition will further strengthen

Grupo Bimbo‟s regional profile and growth strategy in Latin America

Achieved leadership in the market
5 production plants, 1,600 associates in

Argentina

____________________ a) Pro forma EBITDA of €17mm as of June 30,2011

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Grupo Bimbo Today

Pro Forma Pro Forma including synergies Net revenues (US$ mm) 9,901 2,036 395 12,332 EBITDA (US$ mm) 1,206 78 24 1,308 1,458 Margin 12.2% 3.8% 5.9% 10.6% 11.8% Routes +44,800 +4,700 +800 +50,300 Plants 107 41 7 155 Associates 111,300 +13,000 +1,900 126,200

____________________ a) Figures as of June 30, 2011 converted to US$ using an exchange rate of $12.2550; Includes LTM figures for Fargo as of July, 2011 b) Figures as of June 30, 2011, exclude synergies and consent decree dispositions c) Pro forma figures as of June 30, 2011, converted to US$ using an exchange rate of €1.4002. 2011 Sales: €292mm; pro forma Ebitda: €17mm (considering a full year of cost savings initiatives undertaken by seller d) Expected synergies of US$150mm by 2014

(a) (b) (c) (d)

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Thank you!

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During this presentation, we have made statements about the Company‟s future plans and prospects that constitute forward- looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of various factors and undue reliance should not be placed on these forward- looking statements. We cannot ensure that actual results will not be materially different from those expressed or implied by these forward-looking statements. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.