BACHOCO 20 Years trading in the Stock Market 1 Bachoco | Investor - - PowerPoint PPT Presentation

BACHOCO

20 Years trading in the Stock Market

Bachoco | Investor Day BMV 1

Forward-Looking Statements

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This presentation contains certain information that could be considered forward-looking statements regarding anticipated future events and performance. The statements reflect management’s current beliefs based on information currently available and are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Report or 20-F, which could cause our actual results to differ materially from the forward-looking statements contained in this presentation. Those risks and uncertainties include risks associated with the poultry industry and competition, shareholder liability, governmental regulations, and environmental matters and construction. As a result, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Industrias Bachoco, S.A.B. de C.V. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or

• therwise.

Bachoco | Investor Day BMV

Bachoco

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In 1997,  In September, Bachoco made an IPO in the Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV) and the New York Stock Exchange.  450,000,000 Stocks serie B  150,000,000 Stocks serie L  Free Float of 17.25%  45 years in the Mexican Poultry Industry  Capacity to produce weekly 4 million chickens and more than 1,200 tonnes of table egg . All our operations where

• nly in Mexico.

 Sales of approximatly 550 millions of dollars

Enrique Robinson Bours Chairman of the Board of Directors (1952 to 2001) Bachoco | Investor Day BMV

Relevant events

Bachoco

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Geography

Distribution Centers Headquarter More than 400 facilities

1997

Bachoco | Investor Day BMV

Bachoco

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In 2017,  Capacity to produce weekly more than 11 millon of chickens in

• Mexico. In means more than 100 millons chickens per cycle.

 Capacity to produce weekly more than 2,600 tons of table egg.  Since 2011, Bachoco has presence in US with a capacity to produce 3 million of chicken a week,.  Today, Bachoco is considered one of the six largest poultry companies worldwide.  Trading in the Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV) and in the New York Stock Exchange  600,000,000 Stocks serie B  Free Float of 26.75%  In 2012 Bachoco issued Certifcate Bonds in the mexican market, rated AAA (MEX) by Fitch and HR AAA by HR Rating. Relevant events

Javier Bours Castelo Chairman of the Board of Directors (Since 2002 to date) Bachoco | Investor Day BMV

Bachoco

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Geografy

2017

Headquarter Complex Distribution Center More than a 1000 facilities

Bachoco | Investor Day BMV

Bachoco

7 84% 11% 5% Sale ales mi mix 19 1997 Chicken Egg Others

1997 2016 CAGR Net Sales 4,405.0 52,020.3 13.9% Operating income 858.9 4,797.6 9.5% Net income 902.9 3,951.2 8.1%

Principal Indexs

84% 6% 5% 5% Sale ales mi mix 20 2017 Chicken Egg Balanced Feed Others

First 9 months

Bachoco | Investor Day BMV

16.33 31.60

• 5.00

10.00 15.00 20.00 25.00 30.00 35.00 1994 1995 1996 1997 2000 2003 2006 2009 2012 2015 2016

Bachoco and the Industry in Mexico

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Chicken

Source: Unión Nacional de Avicultores

Per Cap apit ita Con

• nsumptio

ion kgs gs

CAGR 3.4%

16.20 22.80

• 5.00

10.00 15.00 20.00 25.00 1994 1995 1996 1997 2000 2003 2006 2009 2012 2015 2016

Per Cap apit ita Con

• nsumptio

ion kgs gs

CAGR 1.7%

Egg

Bachoco | Investor Day BMV

Bachoco

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Our products

Bachoco | Investor Day BMV

Bachoco

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Our Brand

2007 2017

Bachoco | Investor Day BMV

Bachoco

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Financial Information  In 1997 the capital was 600 millions of Stocks Serie B and L. Currently, all of them are Serie B, with full rights.  82.75% of the stocks were in control of the Robinson Bours family, managed by two trust funds.  In December of 2013, we issued, a secondary offer, 9.5% of the total shares of the Company through the Mexican Stock Exchange.  The position of the trust fund was integrated as shown on the chart below:  In the beginning, the daily average in both markets were aprox. $370 mil USD, currently, the daily average is aprox. $3 million dollars.

Before sale After sale Stocks Position Stocks Position Family trust fund 496,500,000 82.75% 439,500,000 73.25% Control trust fund 312,000,000 52.00% 312,000,000 52.00% Colocation trust fund 184,500,000 30.75% 127,500,000 21.25% Free float position 103,500,000 17.25% 160,500,000 26.75% Bachoco trades in NYSE with ADRs, a ADR equials 12 stocks.

Bachoco | Investor Day BMV

Bachoco

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Financial Information

210 2,938 1997 9M17

CAPEX

• In millions of pesos

Assets

• In millions of pesos

4,774 45,091 1997 9M17

Capital

• In millions of pesos

4,090 31,716 1997 9M17

Net debt

• In millions of pesos
• 446
• 10,787

1997 9M17

4,405 43,017

1997 9M17

• Millions of pesos

Net Sales Earnings per share

• In pesos per share

3.1 5.6 1997 9M17

Bachoco | Investor Day BMV

Bachoco

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Financial Information

NYSE: IBA BMV: BachocoB

Bachoco | Investor Day BMV

Bachoco

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Corporate Governance

 Since 1993, none of the family members of the Robinson Bours family is employee of Bachoco.  There is a strict adherence to the code of best practices, as recommended by the Mexican stock and the National Banking and Stock Commission (CNBV).  The shareholders of Bachoco fulfills all the requests of BMV, CNBV, NYSE and SEC  Currently, the 25% of our shareholders are independent.  We have a group of committees that support the Board of directors; Executive Committee, Investor Committee, Risk Committee, Audit Committee, among

• thers.

 Bachoco has an Internal Guide of Ethics Code, that serves as a guide of behavior for our employees, among other tools that guarantees the integrity of the financial information.

1997 2017 Proprietary Shareholders Directors 8 Alternate Shareholders Directors 4 Independent Propietary Directors 4 Total 11 16 Bachoco | Investor Day BMV

Bachoco

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To the future  Innovation in the market.  Presence of our brand in USA.  Reinforce our participation in other proteins in Mexico.  Looking for growth in foreign countries by doing business arrangements.  Maintain financial discipline and a solid balance sheet.

Bachoco | Investor Day BMV

Bachoco

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Sustainability

TOGETHER FOR OUR COMMUNITY TOGETHER FOR OUR PLANET TOGETHER FOR OUR BACHOCO TEAM TOGETHER FOR OUR PRODUCTS TOGETHER FOR OUR BUSINESS Bachoco | Investor Day BMV

Investor relations: Maria Guadalupe Jáquez maria.jaquez@Bachoco.net | Andrea Guerrero Andrea.guerrero@bachoco.net