Grupo Bimbo B de C V : 2nd Quarter 2014 Results

Highlights from the quarter:

Grupo Bimbo completed the Canada Bread Company acquisition during the quarter and began to consolidate results as of

May 23

Consolidated net sales rose

5.2%, driven by the Canada

Bread acquisition

Gross margin expanded

90bp reflecting lower average raw material costs in Mexico and Europe

Profit before other income & expenses and operating income both rose by double digits

Net majority margin increased 140bp to 3.6%

Investor Relations Contacts

Azul Argüelles

Head of IR

Tel: (5255) 5268-6962 azul.arguelles@grupobimbo.com

Diego Mondragón Tel: (5255) 5268-6789 diego.mondragon@grupobimbo.com

The key developments in the second quarter included: i) on May 23, the closure of the Canada Bread acquisition, a leading manufacturer and marketer of bakery products in Canada, frozen bread in North America, and bakery goods in the United Kingdom; the North American operations of Canada Bread now form part of Grupo Bimbo's US & Canada region, while the UK business, along with the Iberia operations, now comprise the Europe region; and ii) on June 24, 2014 the Company issued US$800 million in bonds due 2024 and US$500 million due 2044 to refinance the Canada Bread acquisition.
Consolidated sales in the second quarter of the year rose 5.2% to Ps.
45.5 billion, reflecting the Canada Bread acquisition (4.2%), and good performance in Latin America and Europe.
Consolidated gross margin expanded 90 basis points from the year ago period to 53.7%, reflecting lower average raw material costs in Mexico and Europe.
Profit margin before other income and expenses increased 50 basis points to 8.8% as a result of performance at the gross margin level, the benefit of the Canada Bread integration, and ongoing synergies in the United States, which were somewhat offset by higher distribution costs across al regions.
Operating margin expanded 140 basis points to 7.2%, reflecting the aforementioned factors and a low basis of comparison from the second quarter of 2013 when one-time restructuring charges were taken in Brazil.
Net majority margin increased 140 basis points to 3.6%, reflecting performance at the operating level, lower financing costs and a lower effective tax rate.

Roberto Cejudo Corporate Treasury-IR roberto.cejudo@grupobimbo.com

*Figures included in this document are prepared in accordance with International Financial

Reporting Standards (IFRS).

Mexico

(Millions of pesos)

17,739

17,709

17,775

17,692

Note: Figures expressed in millions of pesos. Consolidated results exclude inter-company transactions.

1Q 2Q

US & Canada

(Millions of pesos)

19,986

21,548

Net sales in the second quarter declined 0.5% from the year ago period due to pricing initiatives taken since 4Q13 and challenging industry dynamics that impacted volumes. However, volumes have improved sequentially over the course of the year, reflecting marketing and

18,216

18,415

promotional efforts combined with point of sale initiatives. On a
cumulative basis, sales declined 0.3% from the first half of 2013.

1Q 2Q

Latin America

(Millions of pesos)

Sales in US & Canada rose 7.8% in the period, primarily reflecting the Canada Bread acquisition, which represents 7.6%, and favorable FX. In dollar terms, organic net sales decreased 4.1%, of which approximately two percentage points reflected the negative impact of the California divestiture completed in 2013 and a more competitive market environment. The muffins, bagels and rye bread categories continued to outperform. Net sales in the first six months of the year rose 4.6%.

5,208

5,629

5,348

5,758

Almost every operation generated positive sales growth in local currencies during the period, with notable performance in Colombia, Chile and Costa Rica. Net sales growth in pesos was 7.7%. For the first half of the year, net sales rose 7.9% over the same period of 2013.

1Q 2Q

Europe

(Millions of pesos)

Net sales in Europe rose 29.0% in peso terms, of which 11.3% correlates to the UK operation, as well as favorable FX and strong organic growth from new launches and notable performance in the breakfast, sliced bread and premium bread categories. On a cumulative basis, net sales

1,219

1,451

1,269

1,637

rose 24.1%.

1Q 2Q

Page 2

Second Quarter 2014

Gross Profit

(Millions of pesos)

53.7

52.9

52.8

51.1

21,176

22,273

22,848

24,441

Note: Figures expressed in millions of pesos. Consolidated results exclude inter-company transactions.

1Q 2Q

Note: Consolidated results exclude inter-company transactions.

Consolidated gross profit in the quarter increased 7.0% to Ps. 24.4 billion, while the margin increased 90 basis points to 53.7%. This reflected lower average costs for key raw materials in Mexico and Europe. In the first half of the year, gross profit rose 6.1% while the margin expanded 130 basis points to 53.3%.

Operating Expenses

(% of net sales)

47.5

45.7 44.5

1Q 2Q

44.9

Operating expenses as a percentage of sales increased 40 basis points to 44.9%, primarily because of higher distribution costs in all regions. In Mexico and US & Canada, this was due to low absorption of fixed costs as a result of weak volume performance, while in Latin America and Europe it reflected market penetration efforts. In US & Canada the aforementioned factor was fully offset by ongoing synergies and waste reduction initiatives in the United States (US$37 million), combined with the benefit of Canada Bread, which has a more efficient cost structure for selling, general and administrative expenses (SG&A). The latter also positively impacted Europe, along with ongoing improvements in Iberia that benefitted the region. There was also a high basis of comparison in the former due to a reclassification of extraordinary expenses in Brazil in
2Q2013 that were registered in 1Q2013, related to the restructuring
process, to the "Other income and expenses" line (US$9 million).

2013 2014

millions of pesos

% of net sales

Page 3

Second Quarter 2014

Profit before Other Income & Expenses (Millions of pesos)

5.4

5.3

3,599

8.8

8.3

2,244

2,251

Note: Figures expressed in millions of pesos. Consolidated results exclude inter-company transactions

1Q 2Q

Note: Consolidated results exclude inter-company transactions.

Profit before other income & expenses in both the second quarter and first half reflected performance at the gross profit level, partially offset by higher operating expenses.

Operating Income

(Millions of pesos)

7.2

4.8 5.8

3.7

1,987

1,545

2,492

3,295

Note: Figures expressed in millions of pesos. Regional results do not reflect inter-company royalties, while consolidated results exclude inter-company transactions.

1Q 2Q

millions of pesos

% of net sales

2013 2014

Note: Regional results do not reflect inter-company royalties, while consolidated results exclude inter-company transactions.

Operating income in the second quarter increased 32.2% to Ps. 3.2 billion, while the margin expanded 140 basis points to 7.2%. This reflects

Page 4

Second Quarter 2014

charges on the "other income and expenses" line, including a favorable effect of a low basis of comparison from 2Q13 during which US$50 million (US$42 million non-cash) of restructuring charges were taken in Brazil. This factor was partially offset by: i) US$47 million in integration costs in the United States, compared to US$37 million in 2Q13, related to the asset strategy and optimization of the distribution network; and ii) Ps. 16 million in integration costs in Europe. On a cumulative basis, operating income rose 8.1% from the year ago period.

Comprehensive Financing Result

(Millions of pesos)

(517)

Comprehensive financing resulted in a Ps. 517 million cost in the second quarter, compared to a Ps. 621 million cost in the same period of last year. This reflected an exchange gain of Ps. 128 million compared to a
Ps. 62 million gain in the previous year, due to cash holdings in Canadian

(798)

(603)

(621)

dollars to pay down the Canada Bread acquisition.

Net Majority Income

(Millions of pesos)

1.4

1.2

570

526

937

3.6

2.2

1,617

Net majority income rose 72.6% to Ps. 1.6 billion, with a 140 basis point increase in the margin to 3.6% reflecting operating performance and lower financing costs, as well as a lower effective tax rate of 37.3%, compared to 42.2% in the year ago period, due to a lower impact of not registering a deferred income tax benefit arising from losses in Brazil, in

1Q 2Q

line with the criteria applied as of 4Q2012. For the first six months of the year, net majority income rose 42.2% while the margin expanded 60 basis points.

millions of pesos

% of net sales

2013 2014

Note: Figures expressed in millions of pesos. Regional results do not reflect inter-company royalties, while consolidated results exclude inter-company transactions.

Page 5

Second Quarter 2014

EBITDA

(Millions of pesos)

10.3

7.8 9.9

4,684

7.1

3,225

2,977

4,281

Note: Regional results do not reflect inter-company royalties, while consolidated results exclude inter-company transactions.

1Q 2Q

EBITDA rose 9.4% to Ps. 4.6 billion in the quarter, while the margin expanded 40 basis points to 10.3%, reflecting performance at the operating level as well as non-cash items. On a cumulative basis, EBITDA rose 2.1% while the margin declined a slight 20 basis points.

The Company's cash position as of June 30, 2014 totaled Ps. 6.1 billion, compared to Ps. 2.5 billion on December 31, 2013. Total debt at June 30,
2014 was Ps. 61.1 billion, compared to Ps. 40.3 billion at December 31,
2013. The increase in debt was due to the financing of the Canada Bread acquisition coupled with a temporary increase in debt and cash of
approximately USD$240 million reflecting a portion of the incoming funds
from the bond issuance that were used to pay down debt immediately after the close of the quarter.
At June 30, 2014, the average maturity of debt was 9.2 years with an average cost of 4.3%. The total debt to EBITDA ratio was 3.4 times compared to 2.3 times at December 31, 2013. However, pro forma total debt to EBITDA ratio was 3.1 times taking into account 11 months of pro forma EBITDA of Canada Bread.
Long-term debt comprised 98% of the total; separately, 68% of the debt was denominated in US dollars, 30% in Canadian dollars and 2% in Mexican pesos maintaining a natural economic and accounting hedge on total debt, and in line with the Company's strong cash flow generation.
On June 24, 2014 the Company issued US$800 million of 3.875% notes due 2024 and US$500 million of 4.875% notes due 2044 to refinance the Canada Bread acquisition.

2013 2014

millions of pesos

% of net sales

Page 6

Second Quarter 2014

The 2Q2014 conference call will be held on Wednesday, July 23, 2014 at
9:30 am Eastern time (8:30 am Central time). To participate in the call, please dial: domestic US +1(877) 317-6776, international +1(412) 317-
6776; conference ID: GRUPO BIMBO. Webcast for this call can also be
accessed at Grupo Bimbo's website at http://www.grupobimbo.com/ir.
An instant replay of the conference call will be available through July 31,
2014. To access the replay, please dial domestic US +1(877) 344-7529, international +1(412) 317-0088; conference ID: 10049011.

Grupo Bimbo is one of the largest baking companies in the world in terms of production and sales volume. As the market leader in the Americas, Grupo Bimbo has

171 plants and almost 1,600 distribution centers strategically located in 22 countries throughout the Americas, Europe and Asia. Its main product lines include fresh and frozen sliced bread, buns, cookies, snack cakes, English muffins, bagels, pre-

packaged foods, tortillas, salted snacks and confectionery products, among others. Grupo Bimbo produces over 10,000 products and has an extensive direct distribution network, with more than 53,000 routes and more than 130,000 employees. Grupo Bimbo's shares have traded on the Mexican Stock Exchange since 1980 under the

ticker symbol BIMBO.

This announcement contains certain statements regarding the expected financial and operating performance of Grupo Bimbo, S.A.B. de C.V., which are based on current financial information, operating levels, and market conditions, as well as on estimations of the Board of Directors of the Company related to possible future events. The results of the Company may differ in regards with those expressed on these statements, due to different factors that are beyond the Company's control, such as: adjustments in price levels, variations in the costs of its raw materials, changes in laws and regulations, or economic or political conditions not foreseen in the countries where the Company operates. Therefore, the Company is not responsible for such differences in the information and suggests that readers review such statements prudently. Moreover, the Company will not undertake any obligation to publicly release any revisions to the statements due to variations of such factors after the date of this press release.

Page 7

Second Quarter 2014

NET SALES 41,454 100.0 43,275 100.0 44,835 100.0 46.476 100.0 176,041 100.0 4 2,115 100.0 45,540 100.0 87,654 100 .0

GROSS PROFIT 21.176 511 22.848 52 8 23.484 524 24.592 52 9 92.099 52 3 22.273 52 9 24.441 53 7 4 6.714 53 3

OPERATING EXPENSES

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EOUITY IN RESULTS OF ASSOCIATED COM PANIES

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Reg1onal results do not refieet royalt1es,whIle consolidated results exciude mter-company transact1ons.

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