I N V E S T O R P R E S E N T A T I O N First Quarter 2018 - PowerPoint PPT Presentation

I N V E S T O R P R E S E N T A T I O N First Quarter 2018

Resilient Industry with High Growth Potential Grupo Bimbo • Resilience to economic downturns Industry 4.2% • Non-discretionary consumer products Fundamentals Artisanal • High consumption frequency 31% US $366 Bn • Highly fragmented industry Competitive • Short shelf life of products makes industry Dynamics Industry (1) local Others 55% Private • Scale and diversification Label • Strong franchise and brand equity Success Drivers 10% • Product quality • Innovation capabilities GB • Distribution efficiency represents • Higher disposable income in Emerging 4.2% Markets Unlocked • 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 2016 2

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$11.4 Bn US$14.4 Bn US $1.5 Bn 32 197 ≈ 58,000 ≈ 3.0 mm ≈139 ,000 ≈13,000 North America Mexico Latin America EAA U.S. Canada ______________ (1) As of April 18 th , 2018. Expressed in US$ at the FX of $18.08 Ps./US. (2) Net sales and Adjusted EBITDA for the year ended March 31, 2018 were Ps. 268,310 million and Ps. 27,860 million, respectively. Converted to US dollars using an average FX rate of the period of Ps. 17.75/US$. Adj. EBITDA: earnings before interests, taxes, depreciation, amortization and other non-cash items. 3

Globally Present, Locally Committed Grupo Bimbo Sales Split 1Q18 (4) Latin America (2) North America (1) Sales: 10% Sales: 51% • • EAA (3) Emerging Adj. EBITDA: 3% • Adj. EBITDA: 44% • Sales: 8% • Markets 42% Adj. EBITDA: -5% • 33 83 43 Mexico Developed Sales: 31% Markets • 58% Adj. EBITDA: 58% • 38 ____________ Figures as of March 31, 2018 4 (1) Includes operations in the U.S. and Canada. (2) Includes Operations in 14 countries. (3) Includes operations in Europe, Asia and Africa. (4) Developed markets include U.S., Canada and Europe.

Strong Category and Channel Diversification Strong leadership position across markets Latin America (1) EAA (1) North America Mexico Sliced Modern Channel 1  (2)    Bread Supermarkets, convenience  (3) Buns &    stores, among others Rolls ∙  (5)  Bagels Traditional C A T E G O R I E S 2 ∙ C H A N N E L S English “Mom & pops”  Muffins ∙   Cookies  (4) 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: Euromonitor, IRi and Company Information (1) Market share position for the countries where GB participates in each category. (2) Excludes China and India. (3) Excludes U.K and India. (4) Excludes China, Morocco and U.K. (5) Excludes Spain 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 2017 2016 2017 ____________ Source: Internal information on estimated retail sales by brand considering the last twelve months as of March 31, 2018 6

World Class Production and Distribution Capabilities with Superior Execution at the Point of Sale 46 million Investing in 197 facilities Focused on robotic packages low cost with access to process produced state-of-the-art automation everyday production technology Benefit from Scale and Efficient Production Capabilities One of the 95 More than 3.0 Quality and largest Trips around million points freshness fleets in the World of sale served guaranteed daily America 7

Our Innovation Platform 2017 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 • D A N I E L S E R V I T J E CEO Focused on Social Responsibility Named “One of the most ethical companies in the world” in 2018 by the Ethisphere • JAVIER A. GONZÁLEZ PABLO ELIZONDO GABINO GÓMEZ Institute Executive VP Executive VP Executive VP Steering Committee Ranked among the most respected companies in the world (1) • RAÚL OBREGÓN RAÚL ARGÜELLES Recognized as “The company with the best corporate reputation in Mexico in 2017” DIEGO GAXIOLA • Chief Global Chief HR and Corporate by Merco . “Its reputation has been built on a strong corporate identity and brand CFO Transformation Affairs image” Social Responsibility Program as a key component of corporate identity • ALFRED PENNY MIGUEL ÁNGEL ESPINOZA RICARDO PADILLA BBU President Bimbo President Barcel President Complies with the global strategy of the World Health Organization on diet, physical • activity and health RAFAEL PAMIAS Executive VP ____________ (1) According to Reputation Institute, RepTrak Pulse as of 2016. 9

Building a Sustainable, Highly Productive and Deeply Humane Company We work on We care for innovations that our environment prove a and act sustainable consequently mindset We value We work to the person create and promote and respect sustainable human rights communities 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) 268.3 267.5 252.1 29.3 27.8 27.3 219.2 23.4 187.1 176.0 18.4 17.3 2013 2014 2015 2016 2017 LTM 1Q18 2013 2014 2015 2017 LTM 1Q18 2016 GB 9.8% 9.9% 10.7% 11.6% 10.2% 10.4% 15.8% 16.7% 17.6% 18.7% 17.7% 17.8% Mexico North America 7.3% 6.2% 8.3% 9.4% 9.2% 9.1% 0.7% 2.1% 2.8% Latin America 3.9% 1.0% 1.9% ____________ EAA -3.8% -0.9% -4.4% 2.7% -8.4% -6.6% 11 (1) Figures in billions of Mexican pesos.

2017 Review: A Transformational Year Investing for future growth Investing to enhance profitability Entrance into 10 new countries through the Integrations: • • following acquisitions: Donuts Iberia: ≈US$ 70 million in integration expenses o Adghal Group – Morocco Bimbo Canada IT migration process o o Ready Roti – India Acquisitions in Morocco and India o o Restructuring: East Balt Bakeries (Bimbo QSR) – 11 countries, 8 • o Closed ten plants new for GB o Smaller but strategic acquisitions of Stonemill in • Closures: four in the U.S., three in Canada, one in Chile, o Canada and Bays English Muffins in the U.S. one in Morocco and one in Argentina Set a record of the number of clients reached, Frozen business • o achieving more than three million points of sale Route optimization efforts o Successfully integrated 32 plants into our • manufacturing footprint & opened two plants 12 12

2017 Review: A Transformational Year Improving our Challenges One time hits financial profile Record adj. EBITDA margin for FX pressure on raw China plant temporary • • • the North America region material costs in Mexico closure Zero base budgeting savings Complicated Mechanical failures in our • • • Global procurement initiative environment Rotherham plant in the • Issued two bonds and extended UK Natural disasters • o debt maturity profile to 11.4 Two strikes in Canada Political volatility in • o years Impairment charges some markets • Remeasurement of the MXN $10,000 mm 10-yr @8.18% • o tax balances due to the US $650 mm 30-yr @4.7% o new Tax Reform in the US 13

L O O K I N G F O R W A R D B y 2 0 2 0 , w e p l a n t o 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 14

Reinvesting for a Sustainable Future 1/3 was used for 2017 CAPEX: growth and US $681 mm (1) Manufacturing Distribution Systems productivity S OME P OTE N TIAL P R OJE CTS - New distribution center in Mexico - Synergy opportunities in China - Plant openings: India, Paris and Russia - Automation projects: robots, line revamps Mexico - Distribution Center EAA – India Bimbo QSR – Paris ____________ (1) Expressed in US$ at the FX of $19.74 Ps./US. 15