Mexico City, December 2, 2015.

- Today, Grupo Bimbo celebrates its 70th

anniversary and reaffirms its leadership in the baking industry with deep roots
in Mexico.
From its very beginnings, its founders had the vision of taking to their
consumers products of the highest quality and available at all times.
Grupo Bimbos strategy and business model is a reflection of its values.
Currently, the company has a world-class distribution chain and cutting edge
production capabilities, as well as innovative leading brands and a highly
experienced, sound management team with a broad social sense.
Throughout the years, Grupo Bimbo has set itself to offer a wide range of
products and promote a healthy lifestyle among its consumers by innovating
and using ingredients that offer functional benefits and by promoting physical
activity.
It is an enterprise that takes pride in its Mexican origin, celebrating 70 years of
reaping benefits of its efforts; seven decades of work, devotion and
commitment in the noble world of bread making. What has made Bimbo a solid
international brand has been its authentic and committed people capable of
overcoming the great challenges that emerge every-day.

The dream of a group of entrepreneurs started with ten trucks and four
different products came true. Today, Grupo Bimbo has operations in 22
countries in 3 different continents; it produces 44 million products every day,
and is made up by more than 128,000 associates.

In this regard, Daniel Servitje, Chairman of Grupo Bimbo Board of Directors and
CEO, noted: We are very proud of celebrating our 70th anniversary and still be
present at the tables in Mexican households and of the world. We envision
tomorrow with great spirit and hope to reaffirm the consumers trust. Finally,
he added: This celebration is a clear example that with effort, dedication and
work, dreams can come true.

Grupo Bimbo will continue to work to create innovative products that satisfy
consumers needs, implementing initiatives that improve the value chain, and
building the dream of the next 70 years.

Grupo Bimbo is the largest baking company in the world. Founded on December 2nd 1945,
we have a portfolio of more than 10,000 products, distributed among more than 100 highly
prestigious umbrella brands. Our billion-dollar power brands, such as Bimbo, Marinela,
Arnold, Brownberry, Oroweat and Barcel, and highly recognized brands including Thomas,
Sara Lee, Entenmanns, Ricolino, Tia Rosa, Plus Vita and Dempsters, among others.
 In general terms, our products vary between breads, buns, cookies, snack cakes, English
muffins, bagels, tortillas, chips and sweets, and packaged foods among other products.

Our operations span throughout 3 continents: America, Europe and Asia.

Countries where we are present:

1. Argentina 12. Guatemala

2. Brasil 13. Honduras

3. Canad 14. Mxico

4. Chile 15. Nicaragua

5. China 16. Panam

6. Colombia 17. Paraguay

7. Costa Rica 18. Per

8. Ecuador 19. Portugal

9. El Salvador 20. Reino Unido

10. Espaa 21. Uruguay

11. Estados Unidos 22. Venezuela

KEY PERFORMANCE
VISION STRATEGIC OBJECTIVES
INDICATORS*

Develop superior quality products, categories

and brands that resonate with consumers,
We are a company with
meet their evolving tastes and preferences, Net sales; market share;
trustworthy, leading
support their active and healthy lifestyles and product portfolio health index;
brands for our
engender top of mind preference and loyalty; preference indicators
consumers
improve the nutritional profile of our products,
looking at both wellness and delight
 KEY PERFORMANCE
VISION STRATEGIC OBJECTIVES
INDICATORS*

Ensure product availability anytime/anywhere

Preferred supplier index;
Our customers preferred with outstanding point of sale execution;
innovation rate; saturation;
supplier support our customers and value chain with
Perfect Stores
supplemental business improvement services

Pursue breakthrough innovations in products

and processes by investing in R&D, forging
alliances with universities and Non-
CO2 emissions; fuel
A forward looking and governmental organizations, and identifying
efficiency; energy
innovative company opportunities across the value chain to
consumption; innovation rate
reduce our carbon and water footprint and
eliminate waste, and sharing and
implementing those best practices

Seek continuous improvement in our cost

and expense structure, with a commitment to Operating income; EBITDA;
A financially strong and
a lean and socially responsible value chain leverage ratio; cost per unit
sound company
providing maximum quality of service and returns
products to our customers and consumers

Foster the commitment of our people by

promoting personal and organizational
Injury index; surveys, training
development and ensuring a safe and healthy
An extraordinary place to satisfaction index, diversity
workplace with a firm commitment to Human
work and turnover indicators;
Rights, equity and diversity; build a strong
performance evaluation
process of talent and leadership
management throughout the Company

Risks
RISK FACTORS
The following are the factors that may significantly affect the performance,
financial position and/or operating results of Grupo Bimbo, as well as the price
of its securities.
Risks Relating to the Business and the Industry
Price increases and a shortage of certain production inputs, fuels and energy
sources, may increase costs for the Group
The main raw materials used by the Group, such as wheat flour, water,
comestibles oils and fats, sugar, and plastics used in product packaging, are or
may be subject to price and availability fluctuations. Raw material prices are
influenced by various factors, including weather, production levels,
transportation and production costs, legislation and government policies, and
global supply and demand. Any substantial increase in the prices of raw
materials that are not reflected in a corresponding increase in product prices
may adversely affect the financial position, liquidity and operating results of
the Group. Any reduction in revenues from the sales of Grupo Bimbo as a result
of competitive pressures may negatively affect profit margins and if sales
volume fails to grow sufficiently to offset that reduction in margins, operating
results may be adversely and significantly affected.
Furthermore, Grupo Bimbo depends on various fuels to operate. For example,
its bakeries and other plants use natural gas, liquid gas and electricity to
operate. Distribution operations require the use of gasoline and diesel fuel to
deliver products. For these reasons, significant increases in the prices of those
fuels, or a significant shortage thereof, may negatively affect the Group.

Notwithstanding the above, the Group takes out hedges on wheat, natural gas
and other inputs to mitigate the risk of price volatility. These contracts,
however, may result in higher prices on those raw materials that those
available on the open market, affecting the Group adversely and significantly.
The Group might not be able to reach its cost savings goals or achieve certain
operating efficiencies relating to its cost reduction initiatives
The Group's success depends in part on its capacity to become a low-cost
producer in a highly competitive industry. It is continually investing in
operations in order to improve its production plants and reduce operating
costs. In this regard, Grupo Bimbo may face operating problems in carrying out
significant changes in production, supply or logistics, and these changes, as
well as its inability to achieve cost reductions and efficiencies as planned, could
affect it adversely.
Competition may affect the Group's operating results
BIMBO 'UNLOCKED' CHINA DOORS
The bakery managed to enter the Asian country by innovating in the retail
distribution network; 187 trucks and 38 bikes is what the company requires to
reach all points of the country.
Friday, September 17, 2010 at 6:00 AM
BEIJING, CHINA -
At one of the gateways to the Forbidden City in the heart of Beijing, there is a
celestial bicycle parked selling sweet breads. It is the only street store in this
imposing space that was the residence of the Chinese emperors for five
centuries. Grupo Bimbo managed, with good contacts and service, to sell in the
explanation - and in another seven points - in one of the most visited places in
China (and where Starbucks had to leave due to activists' pressure three years
ago) .
The image is a symbol: on the one hand reflects the speed with which the
Mexican brand managed to squeeze into the Chinese culture in just four years
of operations, and on the other, the logistics that had to get the company to
operate is This country
In Mexico and in the rest of Latin America, Bimbo's distribution network has
been one of the pillars of its success. With a system of 'distribution agencies'
and hand-held vendors to raise orders, the production of the bakery is
practically done just in time. More than 85% of Bimbo's sales are in detail, with
this mechanism.
China represents a challenge that Mexicans have no reference to. "In our
category there are no national products precisely because it is difficult to
connect a large country," says Jorge Zrate, Asia Corporate of the Mexican
group.
Despite the growth in China's infrastructure, new roads are still insufficient for
the distribution of goods from the center to the north and south. "What in
Mexico demands 10 hours of road, in China there are 27", adds Zrate.

Bimbo offers its products from Beijing (to the northwest) to the northern border
with Russia. Since the freshness of the products was one of the most sensitive
sensations for the Chinese, Bimbo had to set up a network of 187 trucks of its
own and an outsourced network of distributors for the shortest distances.
In addition, he created a distribution plan three times a week. Bimbo not only
innovated in the bakery market, but in the retail distribution. "When we bought
the company in China (RicoPan), they did not sell to changarros," says Zrate.
The changarros in China are in hutones, old neighborhoods of very narrow and
intricate streets. There Bimbo innovated with a transport system: bicycles.
"Simply because there are no trucks coming in," says Zarate.
Bimbo has a portfolio of 30,000 small customers in hutones, attended by a fleet
of 38 bicycles. "We not only innovate with the transport, but with the style",
adds Zrate. A difference of competition, Bimbo sellers are the only ones who
are carriers of the company and their bicycles are painted with Mexican logos.
One of Bimbo's 2011 aircraft is one of the portable vending machines for
picking up instant orders and for information on changes.
The landing in China requires three times as much time as in other countries.
Although the company bought the first plant in Beijing in April 2006, the official
launch of the brand was not until mid-2007. "It was an action to diminish the
PanRico brand, keeping the colors and even the bear" , Says Zrate. They
opted for a name similar to a Bimbo (Bim-Bao), a Chinese character set
meaning 'castle guest'. And the best promotion of guests, no more nor less,
than the most important castle in Asia: The Forbidden City.
How to do business in China?
1. Do not translate literally, Mandarin is a language of nuances.
2. It takes more people and time to boot. Bimbo took a year.
3. Chinese people do not like extreme flavors or sweet-acid combinations.
Bread is eaten for dessert.
4. Little advertising on the public highway, a lot of brand presence with its
bicycles and placement of products in telenovelas co-produced by Televisa in
China.
5. Logistics is complicated. In the streets, bread is distributed on bicycles.

The bakery industry is highly competitive, and competitive pressures could

reduce the Group's market share or force it to lower its product prices or
increase promotional expenses, which may adversely affect its operating
results. Competitive pressures may also restrict its capacity to increase prices,
even in response to a rise in the cost of its raw materials and other costs.
Competition is based on product quality, price, customer service, brand
recognition and loyalty, effective promotional activities, access to points of sale
and sufficient shelf space, as well as the capacity to identify and meet
consumers' needs.
The Group competes with major domestic and international firms, traditional
bakeries, smaller sized regional operators, family bakeries, supermarket chains
that have their own bakeries and private brands, stores with their own bakery
areas, or private brand products, as well as diversified food companies. In
varying degrees, its competitors may have competitive advantages in certain
products or regions, as well as greater financial resources. The Group expects
to continue facing heavy competition in the markets in which it operates and
anticipates that current or future competitors could expand their product lines
and geographic presence.
Grupo Bimbo occasionally encounters price pressures in some of its markets as
a result of promotional practices and pricing by competitors, which could
increase due to excess capacity in the industry. As a result, it may have to
lower the prices of some of its products in response to competitive pressures in
order to maintain its market share. Those pressures could prevent it from
raising prices in response to an increase in raw material costs and other costs.
Furthermore, competitors may try to improve their competitive position by
introducing new products, or products that may substitute the Group's
products, improving their productive processes or increasing production
capacity. If Grupo Bimbo is unable to keep up with its competitors price
structure, product initiatives and productive processes, it may be adversely and
significantly affected.
The Groups brand reputation and other intellectual property rights are key for
its business
A substantial portion of the net sales of Grupo Bimbo come from the sale of
products offered under its own brands. Its brands and trade names are
fundamental assets for its business. Maintaining brand reputation is essential
for attracting and maintaining clients, consumers and employees, and is crucial
for its future success. If the Group is unable to maintain its brand reputation, its
business, operating results and financial situation may be adversely and
significantly affected. If Grupo Bimbo is unable to or gives the impression that
it is not able to handle situations that could pose a risk to its reputation, its
business prospects may be affected. These situations include the handling of
potential conflicts of interest, legal and regulatory requirements, operating
safety conditions, ethical aspects, money laundering, privacy, record-keeping,
sales and marketing practices and the appropriate identification of legal,
reputational, credit, liquidity and market risks inherent to its business.
Grupo Bimbo's main brands are registered in all the countries where it uses
them. Despite its efforts to enforce its industrial property rights against
violation by third parties, its actions may be ineffective in avoiding the
imitation of its products or in preventing other companies from blocking the
sales of its products arguing that the Group's products violate their own rights.
If a competitor violates the Group's brand rights, it may be costly to enforce
these rights and could divert resources from business operation and
development purposes. Although Grupo Bimbo intends to actively defend its
industrial property rights, it may not always be able to do so, which could
adversely and significantly affected.
See "The Company: Business Description: Patents, Licenses, Brands and Other
Contracts."
The ability to anticipate changes in consumer preferences may result in lower
demand for the Group's products
The Groups success depends in part on its capacity to anticipate consumers
tastes and dietary habits and offer them products that satisfy their preferences.
Changes in those preferences, along with the inability to anticipate, identify or
react to those changes, may reduce the demand for the Company's products,
which could affect it negatively. Specifically, demand for the Group's products
could be affected by the popularity of certain trends, such as low-carb diets
and concerns about the health effects of sugar content, refined flour and
gluten.p Furthermore, Grupo Bimbo's success depends partly on its capacity to
improve its product portfolio by adding new products in high-growth, high
profitability categories, and to increase its market share in existing product
lines.
The introduction of new products or extension of existing product lines requires
an extensive research and development process, as well as marketing
initiatives. If the Group's new products do not satisfy consumer preferences,
the return on that investment may be lower than expected and the Group's
strategy to increase its net sales and profits may not be successful, affecting it
adversely and significantly.
Public health and liability risks relating to the food industry in general could
affect the businesses, financial situation and operating results of the Group
The Group is exposed to risks affecting the food industry in general, including
the risks of contamination or decomposition, concerns about nutritional and
health matters, lawsuits relating to product defects, product tampering, the
cost and availability of insurance for liability and possible business interruption,
and the potential costs and impact from the recall of defective products. Grupo
Bimbo may be the subject of lawsuits and legal procedures if it is alleged that
consumption of any of its products causes harm, illness or death. A product
recall or ruling against the Group in any of these legal proceedings could
adversely affect it.
Any risk that exists or is believed to exist regarding Grupo Bimbo's products,
including negative advertising regarding those risks, could spread distrust
among consumers about the safety and quality of those products. Even if the
Group's products are not contaminated, the industry may be subject to
negative publicity if the products of other producers are contaminated, which
could result in a reduction in demand for its products in the category in
question.

Also, negative advertising regarding the safety and quality of certain food
products, as well as advertising regarding products that contain genetically
modified ingredients, whether or not these concerns are legitimate, could
cause consumers to refrain from buying the Group's products, or cause
problems in their production or distribution.
Grupo Bimbo has systems designed to monitor food safety risks in its products
during all phases of the production process. However, these systems, as well as
its policies, may not be effective in mitigating these risks. Any contamination of
the Group's products could affect it adversely and significantly.
The Group depends on retailers, and if they encounter difficulties or give
preference to its competitors' products, its financial position may be negatively
affected
A substantial portion of the Group's sales are to supermarkets and other retail
clients. The Group sells its products to supermarket chains and other retail
clients, such as supermarkets and hypermarkets, and to traditional retailers,
including what are known as mom-and-pop stores. These supermarket chains
and other retail clients in turn sell the Group's products to consumers. A
significant deterioration of the businesses of Grupo Bimbo's main clients could
negatively affect sales of its products. Supermarket chains and other retail
clients also sell products that compete with the Group's products, for store
space and consumer purchases. Clients may give greater priority to the
products of Grupo Bimbos competitors, or may form alliances with those
competitors, or with private brand products other than the products the Group
produces for those brands. If clients cease to buy the products of Grupo Bimbo,
or cease to support them with promotions, the Group may be adversely
affected.
Consolidation in the retail industry may affect the Group
The consolidation of supermarket chains has resulted in changes in the
supermarket industry as a whole. Supermarket chains began to grow by selling
a variety of merchandise under one roof, replacing smaller stores that sold only
certain specific products. Over time, and in order to become more efficient and
competitive, supermarket chains have been consolidating, resulting in a
domination of the supermarket industry by a few large chains. Grupo Bimbo,
along with other producers, depends to a certain extent on a small number of
supermarket chains to increase its sales volume. Accordingly, the major
supermarket chains are in a better negotiating position to request lower prices,
so the Group has had to increase expenses and promotional programs or
individualized products. Sales by its largest clients on less favorable terms may
affect Grupo Bimbo adversely.
Additionally, the consolidation of the Group's competitors in the bakery
industry and in the retail food industry, may cause its competitors to grow in
size and competitive strength, affecting its business.
Changes in health regulations could negatively affect the Group's business
Grupo Bimbo's operations in Mexico are subject to various laws, rules,
regulations, official health and quality standards, as well as oversight by
various authorities, such as the Ministry of Health, Ministry of Agriculture,
Livestock, Rural Development, Fishing and Food, the Federal Commission for
Protection against Health Risks, and the Ministry of the Economy, regarding the
production, packaging, labeling, storage, distribution and advertising of its
products.

In the United States, products and packaging materials are regulated by the
FDA. This agency issues standards and regulates production, distribution and
labeling of food products in that country. Various states of the US also regulate
the Groups operations by issuing licenses to its plants, enforcing both federal
and state regulations regarding certain food products, certification of certain
food products, inspection of plants and warehouses, regulation of trade
practices relating to the sale of food products and labeling requirements for
those products.

Grupo Bimbo is also subject to hygiene and quality laws and regulations
comparable to the above-mentioned in other countries where it operates.
Government policies and standards in Mexico, the United States and Canada,
as well as other countries in which it operates, may negatively affect the
supply, demand and prices of its products, limit its capacity to carry out its
operations in local and export markets and may negatively affect the results of
its operations and its financial position. Furthermore, if the Group is forced to
comply with substantial changes in health regulations, it may experience a
significant increase in its operating costs, and regulatory changes may take
effect on dates that the Group cannot meet without interruptions in its
operations. An increase in food industry regulations, such as proposed changes
to improve food safety, or to impose requirements relating to health or
regulation of imported ingredients, could increase costs and adversely affect
Grupo Bimbo.

Interruptions in the supply chain or distribution network may negatively affect

the Group's operations

Grupo Bimbo depends on the continuous operation of its supply chain and
distribution network. Damage or disruptions in the Group's production or
distribution capacity due to weather, natural disasters, fire, power outages,
terrorism, pandemics, strikes, as well as disputes with or financial or
operational instability on the part of its main suppliers, independent
distributors and storage or transportation service providers, among other
situations, may affect its capacity to produce or distribute its products.

To the extent that Grupo Bimbo is unable to or does not find it financially
feasible to mitigate supply chain disruptions or their potential consequences,
whether by means of contracts, insurance or any other solution, it may be
adversely affected and obliged to invest additional resources in restoring its
supply chain.

Commodity prices may be volatile and subject to considerable increases

The Group acquires large quantities of commodities such as wheat flour,
comestible oils and fats, sugar, eggs, and plastic used for packaging its
products. It is also exposed to changes in oil prices, which may affect its
packaging and transportation costs. The prices of inputs, other products and
energy are volatile and may vary as a result of unpredictable conditions, such
as global competition for resources, exchange rate fluctuations, climate
change, consumer, industry or commodity demand, changes in applicable
legislation, and trade, alternative energy, and agricultural programs. An
increase in commodity, energy or other costs may negatively affect the Group's
operating costs, including costs related to the production, transportation and
distribution of its products, which may negatively affect its financial position
and operating results.

The Group may be exposed to unknown or contingent liabilities relating to

recent and future acquisitions

Recent or future acquisitions of assets or entities by Grupo Bimbo, including,

among others, the acquisitions of Canada Bread and Supan, may be subject to
previously unknown or contingent liabilities or misrepresentations by the
sellers, with regard to which it may have no resource, or limited resource,
against the sellers. Even if in some of these acquisitions the sellers have
agreed to or may agree to indemnify Grupo Bimbo for certain issues, these
compensations may be subject to substantial limitations on the amount and
time of reimbursement. In the case of the acquisition of Canada Bread, the
Group has no recourse for contingent or unknown liabilities or
misrepresentation. Accordingly, Grupo Bimbo may not be able to recover losses
stemming from misrepresentation by the sellers. Additionally, the total amount
of expenses and costs that it could incur in relation to the liabilities relating
from the acquisition of assets or entities may exceed the expected amounts
and may entail other unanticipated adverse effects, all of which could
negatively affect the Group.

The Group's opportunities for growth through acquisitions, mergers or joint

ventures may be limited by anti-monopoly laws, access to capital resources
and other challenges relating to the integration of significant acquisitions

Grupo Bimbo may pursue other acquisitions in the future. The Group does not
know if it will be able to complete those acquisitions or successfully integrate
them to its operations, or to maintain key personnel, suppliers or independent
distributors. Furthermore, there is no guarantee that there will not be
subsequent claims in the area of economic competition in the future, regarding
its existing operations or any other acquisition it carries out in the future. If
there is any claim of this kind, the Group may be obligated to sell or divest of
its holdings of important assets or may be unable to complete some
acquisition. Its capacity to grow successfully through acquisitions depends on
its capacity to identify, negotiate, complete and integrate appropriate
acquisitions, as well as its capacity to obtain the necessary financing. These
efforts may be costly and time-consuming, affect its day-to-day operations and
divert administrative resources. If Grupo Bimbo is unable to effectively
integrate some business it has acquired, including Canada Bread, it could be
adversely affected.

The Group may not be able to successfully expand its operations to other
markets
If the opportunity arises, the Group may expand its operations to new markets.
Each of the risks applicable to its capacity to successfully operate in current
markets also applies to its capacity to operate in new markets. In addition to
those risks, the Group may not have the same level of knowledge of the
dynamics and conditions in those new markets, which could negatively affect
its capacity to grow or operate in those markets. Grupo Bimbo may not be able
to create a similar demand for its products and businesses, which could
negatively affect its profitability. If the Group is unable to successfully expand
its operations to new markets, it may be adversely and significantly affected.
Exchange-rate fluctuations may adversely affect the Group
Grupo Bimbo generates revenues and incurs operating expenses and debt in
the currencies of the countries in which it operates. The amount of its revenues
denominated in a particular currency that it generates in a given country
frequently varies from the amount of expenses or debt incurred in its
operations in that country, because it may assume certain costs in another
currency. This situation exposes it to potential losses stemming from exchange-
rate fluctuations, which may affect the Group adversely and significantly.
As of December 30 first, 2014, 99% of its consolidated debt and a substantial
portion of its operating costs and taxes were denominated in US and Canadian
dollars. However, a significant proportion of its operating costs, taxes and
revenues are denominated in Pesos and other currencies. As a result of this,
the appreciation or depreciation of the Peso or other currencies against the
Dollar may affect its operating results and financial position. Significant
fluctuations in the value of the Peso or other currencies against the Dollar have
occurred in the past, negatively affecting our results. According to the Board of
Governors of the Federal Reserve System, as certified by the Federal Reserve
Bank of New York, the Peso appreciated 7.1% in the year 2012, depreciated
1.0% in the year 2013 and appreciated 12.4% in 2014, in nominal terms.
Mexico's central bank (Banco de Mxico) may participate in the foreign
currency market to minimize exchange-rate volatility and assist in ordering the
market. Banco de Mxico and the Mexican government have promoted market-
based mechanisms in order to establish exchange rates and lend liquidity to
the foreign exchange market. However, the Peso is subject to substantial
fluctuations against the Dollar, and may continue to be so in the future.

Grupo Bimbo selectively manages its exposure to the Dollar in relation to the
Peso and other currencies, its Dollar-denominated obligations and the purchase
of certain commodities denominated in Dollars. A severe depreciation on
international foreign exchange markets of the Peso or any currency of the
countries in which the Group operates, could limit the Groups capacity to
transfer or convert Pesos into Dollars or other currencies in order to promptly
comply with its obligations to pay interest or principal on dollar-denominated
debt or obligations in other currencies. Although the Mexican government does
not currently restrict, and has not restricted since 1982, the right or capacity of
Mexican or foreign investors to convert Pesos to Dollars or to transfer other
currencies outside of Mexico, it may introduce such restrictive foreign-
exchange policies in the future. Foreign-exchange fluctuations may affect
Grupo Bimbo adversely in the future.

The Group may be subject to disruptions or failures in information systems

Grupo Bimbo depends on sophisticated technological information systems and

infrastructure to support its operations, including process control technologies.
These systems are exposed to failures stemming from natural disasters, fires,
floods, energy outages, telecommunications failures, and other factors. In some
cases, the Group's information technology systems and infrastructure are
managed by third parties over which it does not have complete control. The
failure of any of its information systems may cause disruptions in its
operations, which could negatively affect the Group.

An inability by the Group to maintain its relations with unions could have an
adverse effect on its financial position

Most of Grupo Bimbo's employees are unionized. If the Group is unable to

maintain good relations with its unions, it could face a higher risk of strikes and
other labor contingencies, resulting in possible increases in its operating costs,
which could in turn damage its relationships with clients and affect it adversely.

It may also be adversely and significantly affected in the event of a rise in labor
costs. The reduced availability of labor, higher inflation or changes in existing
laws could increase labor costs, in turn affecting the company adversely.
The Group's labor costs include the benefits it extends to its employees. Grupo
Bimbo provides various compensation plans for its employees and most of the
regions in which it operates, including pensions, health and Social Security
plans for retirement, severance pay and other benefits. It also participates in
multi-employer pension plans at some of its plants. The annual cost of those
plans may vary significantly from year to year and are heavily affected by
various factors, such as changes in the weighted average discount rate used to
calculate obligations, the inflation rate on health services, the results of
negotiation in collective bargaining agreements and benefit agreements, or
significant changes in those multi-employer pension plans. Accordingly, it may
be difficult to determine labor costs and contingencies of the Group and its
pension plans may no longer have the necessary funding at any given moment.
The Group has significant transactions with individuals and corporations that
are affiliates or related parties, which may generate potential conflicts of
interest and could result in less favorable terms for the Group
The Group engages in transactions with individuals and corporations that are
affiliates of or related to Grupo Bimbo. Although these transactions are
analyzed by the Audit and Corporate Practices Committee, they may create
potential conflicts of interest that could result in less favorable terms for Grupo
Bimbo than what it might obtain from an unrelated third party. See the section
entitled "Transactions with related parties and Conflicts of Interest."
It may be difficult for other parties to bring civil liability lawsuits against the
Group's board members, key executives and controlling shareholders
Grupo Bimbo is defined under Mexican law as a limited-liability corporation
whose stock is listed on public markets, domiciled in Mexico, and a majority of
its board members, key executives and controlling shareholders reside in
Mexico. Furthermore, most of its assets and all or most of the assets of those
parties, are located in Mexico.
As a result, foreign investors may find it difficult to file suit against those
parties or obtain the enforcement of rulings against them in any other
jurisdiction outside of Mexico, including any of the rulings passed in trials
relating to civil liability of those parties under the securities laws in those
countries. There is some doubt as to whether those parties may be declared
liable in Mexico based on the federal securities law in United States, whether
by lawsuits brought in Mexico or by the enforcement of sentences handed
down in the United States.
The Group depends on the experience and capacity of its management and its
employees, and its business may be affected if it loses their services
Grupo Bimbo's senior management has extensive operating experience and
knowledge of the industry. The Group depends on its senior management to
define its strategy and administer its business, and considers their involvement
to be crucial for its success. Similarly, the ongoing success of the Group
depends in part on its capacity to recruit and maintain experienced
professionals. The loss of the services of its executives, or its inability to hire,
train or maintain a sufficient number of experienced executives could
negatively affect it. The Group does not have key employee insurance on any
executive or employee. Its capacity to retain experienced executives and
employees depends in part on its ability to maintain appropriate compensation
packages. Current compensation and incentive schemes may not be sufficient
to retain employees in the future.
Compliance with environmental and other laws may result in additional
expenses or responsibilities
Grupo Bimbo's operations are subject to federal, state and municipal laws,
regulations and standards relating to the protection of the environment and
natural resources.
In Mexico, Grupo Bimbo is subject to various federal, state and municipal laws
that regulate discharges to the environment, and on the management and
disposal of regular and hazardous waste. Environmental laws impose
remediation responsibilities in relation to the discharge of hazardous waste.
The Group is subject to oversight by the Ministry of the Environment and
Natural Resources, the Ministry of Labor and Social Planning, the Federal
Environmental Protection Agency, and the National Water Commission. These
agencies have the authority to bring administrative proceedings for violations
of environmental and workplace safety regulations and may levy fines on those
who fail to comply with those standards.
In the United States, the Group is subject to federal, state and local regulations
regarding environmental protection. These include the Clean Air Act, Clean
Water Act, And Resource Conservation and Recovery Act and Superfund, which
impose individual and joint liability on the parties responsible. Grupo Bimbo has
specific programs and all of its business units designed to comply with the
applicable environmental requirements.
It is also subject to strict environmental laws in other countries where it
operates.
Changes in existing environmental laws and regulations, or the enactment of
new, stricter laws and regulations, could obligate Grupo Bimbo to make
investments currently not provided for in its budgets, and could adversely and
significantly affect it.
A reduction in the book value of goodwill or other intangible assets acquired by
the Group could affect its consolidated operating results and shareholders'
equity
The book value of goodwill represents the reasonable value of acquired
businesses above the value of the identifiable assets and liabilities as of the
acquisition date. The book value of other tangible assets represents the
reasonable value of brands, trade names and other assets as of the acquisition
date. Goodwill and other intangible assets acquired that are expected to
contribute indefinitely to cash flow generation are not amortized, but must be
evaluating by management at least once a year to determine a possible
impairment. If the book value exceeds the reasonable value, the intangible is
considered impaired and its reasonable value is reduced by a charge against
results. Certain events and conditions that changes in the industry in which the
Group operates, including competition and technological advances, significant
civil liability for product defects or industrial property rights claims or other
factors that result in a reduction in expected sales or profitability. If the value of
some intangible deteriorates, the profits and consolidated shareholders' equity
of the Group may be significantly affected.

Financing sources for covering the Group's future capital needs may be
unavailable, insufficient, or may available only on unfavorable terms

The Group may need additional financing to build new plants, expand existing
plants, carry out mergers or acquisitions, or for other purposes. Some of the
agreements documenting the financing for Grupo Bimbo or its subsidiaries
contain covenants and other clauses that are usual for transactions of this
type, which may affect its capacity to obtain additional financing.

The global market and economic conditions are and may continue to be
unpredictable. In the past, debt markets have been affected by significant
losses in the international financial service industry and by economic
circumstances in several countries, among other factors. In the future, funding
costs on debt markets may rise significantly. Similarly, the funds available in
those markets may be significantly reduced. To pursue its growth strategy, the
Group may require financing from public or commercial banks and loans from
other financial institutions. If there are no funds available from public or private
banks, or if those funds are available on less favorable terms, the Group may
be unable to pay its debt or meet its capital requirements, and possible
limitations on financing may also prevent it from taking advantage of certain
business opportunities, responding to competitive pressures, making the
necessary capital investments or covering margin calls or security deposits
relating to its hedge transactions, all of which may adversely affect Grupo
Bimbo.

The Group may take on additional debt in the future that could affect its
financial situation and its capacity to generate sufficient cash to cover its debt

In the future, Grupo Bimbo may take on additional debt which could have the
following effects:
Limit its capacity to pay its debts;
Limit its capacity to pay dividends;
Make it more vulnerable to economic conditions and conditions in the industry
in general;
Require that the Group divert a substantial portion of its cash flow to debt
repayment, placing it at a disadvantage against other competitors with less
debt;
Limit its flexibility to plan or react to changes its business and in the industry in
which it operates;
Limit, among other factors, its capacity to obtain additional financing by virtue
of covenants and other restrictions included in its existing debt agreements;
and
Increase the cost of additional financing.
Grupo Bimbo's capacity to generate enough cash to pay off its present and
future debts depends on its operating performance, which may be affected by
prevailing economic conditions and financial, business or other factors, many of
which the Group does not control. If Grupo Bimbo is unable to pay its debt, it
may be forced to adopt an alternative strategy that could include reducing or
delaying capital expenditures, asset sales, restructuring or refinancing debt, or
raising new capital. These actions, to the extent they are possible, may not be
taken on favorable terms.

Furthermore, some of the financial instruments to which the Group is party

impose operating and financial restrictions on its business. These provisions
may negatively affect the Group's capacity to react to changes in market
conditions, take advantage of business opportunities it deems desirable, obtain
additional financing to fund investment in the necessary capital assets, or deal
with negative aspects of its business.

In the future, Grupo Bimbo may take on a significant amount of additional debt.
If it takes on additional debt directly or through its subsidiaries, the risks it
faces in connection with its current debt could worsen.

Applicable legislation may adversely affect the Group

The Group is subject to the laws of each of the countries where it operates. The
main areas in which it is subject to such laws are water, the environment,
labor, taxes, health and economic competition. The adoption of new laws or a
stricter interpretation or application of the same laws in countries where it
operates could increase its operating costs or restrict its operations, which may
negatively affect the Groups financial position, businesses and results.
Specifically, environmental standards are becoming increasingly strict in some
of the countries where Grupo Bimbo operates, and although it is in the process
of complying with those standards, it cannot guarantee that it will be able to
comply on time with the laws issued by the competent authorities. Changes in
current legislation could result in higher compliance costs, which may have an
adverse effect on the Group's results or financial position.

Grupo Bimbo is subject to laws on health and nutritional standards. Its

compliance with those standards may require that it incur substantial costs for
research and development and/or use of more expensive ingredients in its
products. It may not be able to transfer those costs to its product prices, which
could affect it adversely.

A fiscal reform was passed by the Mexican Congress in 2014 for the purpose of
increasing federal tax revenues in Mexico. The effects of that reform or any
other change in tax legislation in the countries where Grupo Bimbo operates
cannot be predicted. For example, since those modifications took effect in
Mexico, most of Grupo Bimbo's products are subject to a special excise tax, up
to 8.0% on some of its products. Additional taxes in Mexico or other countries
could affect its operations and profits.

In the past, some of the countries where the Group operates have imposed
voluntary or mandatory price controls. The prices of some of its products are
controlled in some of the countries where it operates. The imposition of
restrictions, whether voluntary or mandatory, on prices in other countries could
have an adverse effect on the Group's results and financial position. Grupo
Bimbo cannot guarantee that the government authorities of any country in
which it operates will not impose mandatory price controls, or that it will not
need to introduce voluntary price restrictions in the future.

On some occasions, its operations have been subject to investigation and

procedures by antimonopoly authorities, and procedures relating to alleged
monopolistic practices. Grupo Bimbo has also been the subject of
investigations and procedures in environmental and labor matters. The Group
cannot guarantee that these investigations and procedures will not have an
adverse affect upon it in the future.
Information disclosure practices in Mexico may differ from common practice for
publicly traded companies in other countries

One of the primary objectives of securities law in Mexico and other countries is
to promote full and reasonable disclosure of all significant business information,
including the financial information, of issuing companies. It is possible,
however, that securities issuers in Mexico may disclose different information in
this country than what they would be obligated to disclose in other countries,
or may not disclose information they would be obligated to disclose in other
countries.

The Group is a holding company and depends on dividends and other resources
generated by its subsidiaries to finance its operations, and, to the extent it
determines, pay dividends

Grupo Bimbo is a holding company and carries out its operations through its
subsidiaries. Accordingly, its capacity to obtain resources to finance its
operations and pay dividends depends primarily on its subsidiaries' capacity to
generate profits and pay dividends. Its subsidiaries are independent entities,
distinct from Grupo Bimbo itself. Dividend payments or other distributions by
its subsidiaries is subject to the generation of profits, and may be limited by
legal or contractual restrictions, such as covenants that limit the subsidiary's
capacity to pay dividends. Dividend payments by subsidiaries also depend on
other business considerations. Furthermore, Grupo Bimbo's right as a
shareholder to receive any asset from any of its subsidiaries resulting from
their liquidation or bankruptcy is effectively subordinate to any claim by the
creditors of those subsidiaries, including commercial lenders. Any adverse
change in the financial position of its subsidiaries or in their profit and loss
statements could affect the Group's financial position.

An erosion of consumer confidence and changes in consumer habits may

adversely affect the Group's business, financial position or profit and loss
statement

The Group is exposed to certain political, economic and social factors in Mexico
and other countries where it operates, which are beyond its control and which
may adversely affect consumer confidence and habits. Unemployment rates,
wages, interest rates and other economic indicators all directly affect consumer
income and purchasing power, which has an indirect impact on their
confidence and habits, and this may translate into a negative impact on Grupo
Bimbos sales and its profit and loss statement.
Risks relating to Mexico and other countries where the Group operates

Adverse economic conditions in Mexico may negatively affect its financial

situation and the results of its operations

The Company is incorporated in Mexico, where it has a substantial portion of its

operations. For the twelve months ended December 31st, 2014, 39% and 65%
of its total sales and EBITDA, respectively, were generated in Mexico. As a
result, its business, financial position and operating results could be affected by
general conditions in the Mexican economy, including price instability, inflation,
interest rates, as well as legislation, taxes, crime rates and other political,
social or economic issues in or affecting Mexico, and with respect to which
Grupo Bimbo has no control. These periods of crisis have in the past been
characterized by exchange-rate instability, high inflation, economic slowdown,
reduction in foreign capital inflows, reduction in banking industry liquidity and
high unemployment rates. These situations could recur, and have a significant
and adverse effect on the Groups business, financial position and operating
results.

In the past, Mexico has experienced high interest rates. The annualized interest
rate on 28-day Federal Treasury Certificates, or CETES, averaged approximately
4.2%, 3.7%, and 3.0% in the years 2012, 2013 and 2014, respectively. As a
result, if the Group takes on Peso-denominated debt in the future, it may be at
higher interest rates.

A slowdown in the rate of growth in the Mexican economy, periods of negative

growth or increases in inflation or interest rates, could depress demand for the
Group's products, reduce real prices on the products and services of the Group,
or result in lower margins. Because most of its costs and expense are fixed,
Grupo Bimbo may not be able to cut costs and expenses if any of those
circumstances materialize, which could adversely affect it.

Political events in Mexico may adversely affect the Group's operations

Political events in Mexico may adversely affect the Group's operations. The
presidential election in July 2012 gave the country a new president, Enrique
Pea Nieto of the Institutional Revolutionary Party (PRI). The president of
Mexico has implemented, and may continue to implement, significant changes
in laws and public policies that could affect the political and economic situation
of Mexico. These changes may adversely affect the Group.

Furthermore, any political disagreement between the executive and legislative

branch may prevent the implementation of political and economic reforms.
Grupo Bimbo cannot calculate the impact that political, economic and social
conditions may have on the Mexican economy. In addition, the Group cannot
ensure that political, economic or social events in Mexico, over which it has no
control, will not have an adverse effect on its business, financial position or
operating results.

Political and economic conditions in other countries where the Group operates
may adversely affect it

Given the importance of the Group's operations outside of Mexico, including

the United States, Canada, Latin America and Europe, economic and political
conditions in those other countries where it operates have an impact on its
results. Consumer demand and preferences, as well as real prices and
commodity costs, are heavily influenced by macroeconomic and political
conditions in those countries. These conditions vary from country to country
and are not necessarily related to the conditions under which Grupo Bimbo
operates in Mexico. Its business may be affected by the general condition of
economies, inflation, interest rates and exchange rates in the countries where
it operates. Any slowdown in the rate of economic growth in those countries,
periods of negative growth and/or higher inflation or interest rates in those
countries, may result in lower demand for its products, lower real prices on its
products, or a reduced margin on its products. A deterioration of economic and
political conditions in any of these countries may adversely affect Grupo Bimbo.

The market value of the securities of Mexican companies is, to some extent,
affected by economic and market conditions in other developing countries.
Although economic conditions in those countries may be different from
economic conditions in Mexico, investors' reaction to events in any of those
countries could have an adverse effect on the market value of the securities of
Mexican companies, including those of the Group.

Also, the correlation between economic conditions in Mexico and United States
has grown in recent years as a result of NAFTA, increasing the pace of
economic interchange between these two countries. As a result of the
slowdown in the US economy and uncertainty over general economic
conditions in Mexico and the United States, the financial position and operating
results of the Group may be adversely affected. Furthermore, by virtue of the
recent development of international credit markets, the availability and cost of
capital may be affected, and Grupo Bimbo's capacity to obtain financing or
refinance existing debt under favorable terms may be limited, affecting it
significantly and adversely.

The Group cannot guarantee that the political and social environment of any of
the countries in which it operates, and over which it has no control whatsoever,
will not have an adverse effect on the global market or on its business.

Interruptions in global credit markets and their effects on global economies

may negatively affect the Group's business.

Substantial volatility, a lack of attractive opportunities for obtaining financing

and disruptions in global capital markets after the worldwide financial crisis of
2008, have negatively affected financial markets and national and global
economies. Although economic conditions have gradually improved since 2011,
and the availability of credit has grown, and despite stable interest rates, the
recent European economic crisis has caused, and may continue to cause,
repercussions in world financial markets. The recent economic crisis, ongoing
economic uncertainty and slow recovery in Mexico, the United States, Europe
and many other countries, has had a negative effect on global financial
markets. The impact of these circumstances and instability are global, and is
difficult to quantify or mitigate, and it is impossible to predict the extent to
which the global economy will recover. Both the future financial results and
growth of Grupo Bimbo may be affected if efforts to achieve a recovery from
this economic recession are delayed or fail altogether.

The enactment of exchange-rate controls and certain restrictions may affect

the Group's financial performance

The dividends that the Group may pay to its shareholders are denominated in
Pesos. Any change in the exchange rate between the Peso and the Dollar or
other currencies may affect the amounts those shareholders are entitled to
receive in Dollars or other currencies. Furthermore, the amounts it pays in
Pesos may not be convertible to Dollars or other currencies. Although the
Mexican government does not currently restrict, and has not restricted for
many years, the capacity to convert Pesos to Dollars or other currencies, it has
imposed restrictions in the past and may impose them in the future. Future
fluctuations in the exchange rate and the effects of any exchange rate controls
imposed by the Mexican government could have an impact on the domestic
economy that the Group is unable to predict.

The Group is subject to standards of disclosure and accounting different from

those of other companies

One of the main objectives of the laws regulating the Mexican securities market
and those of the United States and other countries is to promote full and
equitable disclosure of all material corporate information, including accounting
information. It is possible, however, that investors in a given country may have
less information, or different information, available to them than is normally
available in that country. Grupo Bimbo must comply with reporting obligations
to the CNBV and the BMV. The disclosure standards imposed by the CNBV and
the BMV may vary from those of other countries. Accordingly, the level of
information available may differ from what foreign investors are accustomed to
receive. In addition, accounting standards and reporting requirements in
Mexico are different from those of other countries. The financial statements of
Grupo Bimbo were prepared according to Mexican FRS, which may vary from
other financial reporting standards. Because of this, the information contained
in the Group's financial statements may be different from how it would appear
had it been prepared under different financial reporting standards.

The Mexican government has exercised and will continue to exercise a

significant influence over the Mexican economy

The Mexican government has exercised and continues to exercise a significant

influence over the Mexican economy. Because of this, actions and policies
established by the Mexican government with regard to the economy, state-
owned enterprises or development banks, may negatively affect the private
sector (and the Group) and may affect market conditions, prices and the return
on Mexican securities. The federal government of Mexico has at times
introduced changes to its policies and regulations and may continue to do so in
the future. Actions intended to control inflation and other regulations and
policies have involved interest rate increases, changes in tax policies, price
controls, monetary devaluations, capital controls and import caps. Specifically,
labor and tax regulation have suffered changes in the past. The Group cannot
guarantee that the Mexican government will maintain its current policies on
political, social, economic or other matters, or that the above-mentioned
changes will not result in an adverse material impact on the financial situation
of Grupo Bimbo.
The Groups business and financial performance may be negatively affected by
risks inherent to international operations.
Bimbo's strategies regarding ...

Subsidiarity - "It establishes that everything a person can accomplish by

himself or can carry out a minor society, does not make a larger or higher
organism, unless, of course, the common good requires it."

Human Resources - "We can not use people for our purposes, we need them to
grow, so we always think of moving ahead of everything else."

Investments - "In Bimbo there is a provision to reinvest eighty percent of the

profits, we do not like to invest the money in anything other than the same
company and our employees"

Consumers - "We want to" apapachar "the consumer, that's why our employees
are ready at times and also leave the trailers at dawn so that the product
arrives fresh. The product that is not sold, is sold as waste or food won" .

He also said that Bimbo advertising always seeks to inform consumers about
their products, as this is the number one motivator and try to please it
according to their tastes - "Our positions are in line with our convictions."

Many people think they are monopoly, however, among more than eight
hundred products only three or four have no competition. So in all the others
have a very strong competition and you have to work very hard. Monopolies
are bad because they make people not work creating a problem of
unproductivity.
CONCLUSION

We can see that the main thing of the success of a big company as it is the
Bimbo group is the administration and above all the values that the company
can have.

The way to manage your employees that more than employees are considered
collaborators having the same objectives both the most modest and top
management.
It also refers us to its total quality policy and which has led it to have better
standards of quality than the Americans themselves.

Another key function is the reinvestment that, rather than offering large
dividends within an annual profit, offers a better value for these shares by
acquiring new plants and becoming more modern.

Taking into account the regional differences, the parameters of the countries
and the dynamics that it imposes, overcoming cultural, social and economic
barriers is becoming more difficult.

But considering techniques that maybe for some may be obsolete or obtuse
can bring great benefits to strategies, it's all part of adhering to it correctly.

Also taking into account the demands of consumers, can save the situation or
place the company in a favorable view in the market you are trying to enter.