GRUMA, S.A.B. DE C.V. Management Targeting 14% EBITDA margin, up from 12.1% in February 27, 2014

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1 GRUMA, S.A.B. DE C.V. Management Targeting 14% EBITDA margin, up from 12.1% in 2013 In 2014 EBITDA expected to gain basis points. The Gruma conference call reinforced the view that the company still has substantial headway to make in terms of improving operating margins. Management is working on reaching a consolidated EBITDA margin of 14%, up from 12.1% in 2013, and 8%-9% levels in the two previous years. For 2014 they are targeting a basis point improvement. Gruma has 100% of grain needs hedged for More than half of the margin improvement is to come from operational efficiencies and the rest from a favorable raw material environment. Gruma Corp has 100% of its grain needs hedged for 2014 at lower prices than in 2013 and they are currently evaluating their hedging strategy for Working on multiple fronts to find more efficiency. In terms of efficiencies, they are working on multiple fronts across all businesses to squeeze out additional gains, including reducing the number of SKU s, focusing on high-margin, high volume lines, improving client service, lowering corporate overhead, rationalizing advertising and more. Relative performance February 27, 2014 BUY Ticker GRUMAB Target Price Last Price Div.Yield 0% Total Expected Return 22.8% Float 26.0% Market Cap. (million) 43,790 LTM Price Range $42.60 / $ More positive tax reduction news ahead. One additional subject widely covered in the call is the company s strategy to continue to reduce the consolidated tax rate. Gruma appears to be in the final stages of implementing a royalty fee strategy with Gruma Corp and Gruma Central America, similar to the one implemented with GIMSA last December. Management informed the new strategy should result in a very good effective tax rate in We reduced our tax rate in 2014 to 39% (from 42%) and to 38% in Mar-13 Apr-13 May-13 Jun-13 Source: Bloomberg Jul-13 Aug-13 Sep-13 GRUMA Oct-13 Nov-13 IPC Dec-13 Jan-14 Feb-14 (Continued) MULTIPLES E 2015E EV / EBITDA 11.4x 13.8x 9.2x 7.4x 6.6x P/E 8.3x 40.3x 13.8x 16.9x 14.9x Dividend Yield 0.0% 0.2% 1.4% 2.9% 0.0% P/BV 3.3x 3.9x 3.4x 3.1x 2.5x OPERATING INDICATORS E 2015E Sales 56,985 59,387 54,106 57,574 60,600 Operating Profit 3,307 2,949 4,831 6,061 6,637 EBITDA 5,253 4,739 6,539 7,680 8,335 Net Profit 5,271 1,087 3,163 2,584 2,947 EPS $ 9.35 $ 1.97 $ 7.16 $ 5.97 $ 6.81 Net Debt 11,926 18,584 15,034 9,992 7,852 Sales Growth 22% 4% (9%) 6% 5% EBITDA Growth 24% (10%) 38% 17% 9% EBITDA Margin 9.2% 8.0% 12.1% 13.3% 13.8% Net Debt / EBITDA 2.3x 3.9x 2.3x 1.3x 0.9x ROE 36% 6% 22% 16% 15% ROA 13% 2% 7% 6% 6% Gustavo Teran, CFA Retail, Food, Beverages, Discretionary Consumption gteran@actinver.com.mx +52 (55) x 1193 Actinver Corporate Headquarters Guillermo González Camarena 1200, 5th Floor, Centro de Ciudad Santa Fe México, D.F

2 Lowered revenue projection with new guidance. Management informed that though volume is projected to rise 2% on a consolidated basis, total revenues will not increase as one would expect with inflation as they plan to pass along benefits to clients. We lowered our consolidated 2014 revenue projection to 2% from 6%, while maintaining our 5% increase revenue projection for Maintain BUY rating with MP price target. We left our EBITDA margin basically unchanged, reflecting a 110 basis point gain to 13.2%. This resulted in a reduction in our projected EBITDA of 5% (vs. our previous estimate) in 2014 and a 3% lower EBITDA in This resulted in marginal cuts to our 2014 and 2015 EPS of 2%/1%. The reduced EBITDA is compensated by lower tax rates both years. We maintain our BUY rating and MP price target supported by DCF valuation (see attached). At our price target, the stock is valued at 19x our 2015 EPS (compered to a 20x forward multiple of international peers) and at 8.7 EV/ 2015 EBITDA (10x forward multiple). 2

3 GRUMA, S.A.B. DE C.V. Discounted Cash Flow Model ( E) Millions of Pesos 2015E 2016E 2017E 2018E 2019E Perp. EBIT 6,637 7,098 7,472 7,866 8,281 8,447 Effective Tax rate 42.0% 42.0% 42.0% 42.0% 42.0% 42.0% Tax Effect On EBIT (2,788) (2,981) (3,138) (3,304) (3,478) (3,548) NOPLAT 3,850 4,117 4,334 4,562 4,803 4,899 Depreciation 1,698 1,777 1,861 1,949 2,041 2,082 Working Capital Changes (478) (473) (508) (544) (583) (601) CAPEX (1,783) (2,311) (2,419) (2,533) (2,653) (2,733) FCFE 3,287 3,111 3,268 3,433 3,608 3,647 Perpetuity Growth Rate 3.0% Present Value of Explicit Period ( E) 13,701 Perpetuity Value 94,510 Present Value of Perpetuity Value 63,475 Theoretical Firm Value 77,175 Net Debt 18,584 Minority Interest 3,032 Theoretical Market Value 55,559 Number of Shares (Mn) 457 Theoretical Price / Share $ Current Market Price $ Potential Return 18.0% Average Cost of Debt 6.0% Long Term Tax Rate 30.0% After-Tax Cost of Debt 4.2% Cost of Capital 8.6% Market Risk Premium 5.5% Risk Free Rate + Country Risk Premium 5.0% Beta - Adjusted MexBol 0.66 % Total Debt 40% % Capital 60% WACC 6.9% Source: Actinver Food Peers Ticker Price Shares Mkt. Cap EV/EBITDA P/BV P/E (Local) Outsdng (Local) actual 2014E 2015E actual actual 2014E 2015E National Herdez HERDEZ , x 10.6x 9.6x 3.6x 25.7x 18.2x 17.8x Bimbo BIMBOA , , x 10.4x 9.2x 3.6x 37.7x 23.8x 19.1x Gruma GRUMAB , x 7.4x 6.6x 3.4x 13.8x 16.9x 14.9x Bachoco BACHOCO , x 6.2x 6.2x 1.4x 14.6x 12.9x 11.9x Median 11.8x 8.9x 7.9x 3.5x 20.2x 17.6x 16.3x Average 10.8x 8.7x 7.9x 3.0x 23.0x 18.0x 15.9x International Crown Confectionery , , x n.a. 4.2x 1.8x 30.8x n.a. n.a. Barry Callebaut BARN 1, ,944 n.a. n.a. 12.5x 3.4x 24.6x n.a. 18.5x Campbell CPB , x 11.0x 10.9x 9.7x 17.7x 16.5x 16.3x Den Foods DF , x 6.5x 5.8x 1.9x 2.6x 18.3x 12.9x Flowers Foods FLO , x 10.6x 9.6x 3.9x 20.3x 19.5x 17.1x Kellogg K , x 10.4x 10.0x 6.1x 9.5x 15.0x 14.1x Lindt & Spruengli LISN 51, , x n.a. 18.4x 5.1x 41.2x n.a. 34.2x Grupo Nutresa NUTRESA 24, ,190,202 n.a. n.a. 13.7x 1.5x 29.1x n.a. 27.4x Premium Brands Holdings PBH x 10.0x 10.0x 25.4x 23.4x 18.3x 17.4x Post Holdings POST , x 8.5x 8.1x 1.0x 77.9x 37.4x 30.5x Tiger Brands TBS 24, , x 11.8x 10.5x 3.5x 15.1x 13.8x 12.0x Median 13.3x 10.4x 10.0x 3.5x 23.4x 18.3x 17.2x Average 18.1x 9.8x 10.3x 5.8x 26.6x 19.8x 20.0x 3 National & International Median 13.3x 10.4x 9.6x 3.5x 23.4x 18.2x 17.2x Average 15.9x 9.4x 9.7x 5.0x 25.6x 19.2x 18.9x Source: Bloomberg Consensus, Actinver Estimates

4 GRUMA, S.A.B. DE C.V. (Figures in Millions of Pesos) INCOME STATEMENT E 2015E E 2015E Sales 59,387 54,106 57,574 60,600 22% 4% (9%) 6% 5% Cost of Sales (41,751) (36,511) (39,137) (41,303) 27% 5% (13%) 7% 6% Gross Profit 17,636 17,596 18,437 19,297 12% 2% (0%) 5% 5% Gross Margin 29.7% 32.5% 32.0% 31.8% General Expenses (14,581) (12,572) (12,695) (13,016) 9% 5% (14%) 1% 3% Profit Before Other Income and Expenses 3,055 5,023 6,057 6,633 25% (13%) 64% 21% 10% Margin 5.1% 9.3% 10.5% 10.9% Other Income and Expenses (104) (192) 4 4 (72%) (49%) 85% (102%) 0% Operating Profit 2,949 4,831 6,061 6,637 59% (11%) 64% 25% 9% Operating Margin 5.0% 8.9% 10.5% 11.0% Depreciation and Amortization (1,751) (1,682) (1,619) (1,698) 21% 0% (4%) (4%) 5% EBITDA 4,739 6,539 7,680 8,335 24% (10%) 38% 17% 9% EBITDA Margin 8.0% 12.1% 13.3% 13.8% Financial Gain % (20%) (19%) (40%) 0% Financial Cost (1,341) (1,452) (953) (851) (13%) 13% 8% (34%) (11%) Pre-Tax Profit 2,910 3,865 5,397 6, % (62%) 33% 40% 13% Taxes and Profit Sharing (1,008) (198) (2,267) (2,552) 113% (44%) (80%) 1,042% 13% Tax and Profit Sharing Rate 45.0% 5.1% 42.0% 42.0% Profit from Continuing Operations 1,678 3,666 3,130 3, % (71%) 118% (15%) 13% Discontinued Operations 476 (356) 0 0 n.a. n.a. (175%) (100%) (100%) Net Profit Before Minorities 1,678 3,310 3,130 3, % (71%) 97% (5%) 13% Minority Interest (592) (147) (546) (577) 128% 14% (75%) 272% 6% Net Profit 1,087 3,163 2,584 2, % (79%) 191% (18%) 14% N of Shares % (19%) (5%) 0% 0% EPS MP 1.97 MP 7.16 MP 5.97 MP % (79%) 262% (17%) 14% BALANCE SHEET E 2015E E 2015E TOTAL ASSETS 49,460 42,609 44,571 46,136 13% 11% (14%) 5% 4% Current Assets 23,615 18,336 19,788 20,823 48% 18% (22%) 8% 5% Cash and Temporary Investments 1,287 1,339 1,742 1,834 5,434% 9% 4% 30% 5% Long Term Assets 25,845 24,272 24,783 25,312 (5%) 5% (6%) 2% 2% Property, Plant & Equipment 20,918 17,905 18,406 18,926 15% 2% (14%) 3% 3% Investment Properties n.a. n.a. n.a. n.a. n.a. LT Biological Assets n.a. n.a. n.a. n.a. n.a. Intangible Assets 2,506 2,631 2,631 2,631 (10%) (4%) 5% 0% 0% Other Long Term Assets 299 3,139 3,139 3, % (21%) 950% 0% 0% TOTAL LIABILITIES 35,127 28,182 26,948 25,275 (6%) 31% (20%) (4%) (6%) Current Liabilities 17,525 11,350 11,127 11,545 20% 60% (35%) (2%) 4% Long Term Liabilities 17,602 16,831 15,821 13,730 (2%) 11% (4%) (6%) (13%) TOTAL DEBT 19,871 16,372 11,734 9,687 (29%) 52% (18%) (28%) (17%) NET DEBT 18,584 15,034 9,992 7,852 (35%) 56% (19%) (34%) (21%) TOTAL CAPITAL 14,334 14,427 17,623 20,861 67% (19%) 1% 22% 18% Shareholder's Equity 11,302 12,973 14,297 17,244 95% (16%) 15% 10% 21% Minority Interest 3,032 1,454 3,326 3,617 15% (29%) (52%) 129% 9% CASH FLOW STATEMENT E 2015E E 2015E PRE-TAX PROFIT 2,787 3,865 5,397 6, % (63%) 39% 40% 13% Investment Activity Related Items 2,056 1,848 2,165 2,248 (287%) (168%) (10%) 17% 4% Financing Activities % (8%) 38% (2%) 0% Pre-Tax Cash Flow 5,643 6,649 8,430 4,996 (11%) 5% 18% 27% (41%) Working Capital Changes (3,837) (478) 340% 6% (101%) 782% (277%) Cash Flow from Operations 1,806 6,679 8,700 4,518 (315%) 3% 270% 30% (48%) Cash Flow from Investment (3,456) (1,525) (1,565) (1,648) (931%) (151%) (56%) 3% 5% Cash Flow from Financing 1,818 (5,112) (6,753) (2,800) 89% (124%) (381%) 32% (59%) Net Incr. (Decr.) in Cash and T.I (163%) (85%) (75%) 807% (82%) Net Cash and T.I. Beginning of Period 1,180 1,287 1,339 1,742 (99%) 5,434% 9% 4% 30% Net Cash and T.I. End of Period 1,287 1,339 1,742 1,834 5,434% 9% 4% 30% 5% Source: Actinver 4

5 Disclaimer Investment Strategy & Research Ernesto O Farrill Director (52) eofarril@actinver.com.mx Research Ismael Capistran Head of Equity Research x1487 icapistran@actinver.com.mx Martín Lara Telecoms, Media & Financials x1840 mlara@actinver.com.mx Ramón Ortiz Cement, Concessions & Construction x1835 rortiz@actinver.com.mx Pablo Duarte Real Estate, Hotels x4334 pduarte@actinver.com.mx Federico Robinson Conglomerates, Industrial & Mining x4127 frobinson@actinver.com.mx Gustavo Terán, CFA Beverages & Retail x1193 gteran@actinver.com.mx Michel Gálvez Fixed Income (52) mgalvez@actinver.com.mx Jaime Ascencio Economic & Markets x5032 jascencio@actinver.com.mx Roberto Galván Technical Analysis (52) x5039 rgalvan@actinver.com.mx Sales & Trading Gerardo Román Head of Trading (52) groman@actinver.com.mx Julie Roberts US Institutional Sales (210) jroberts@actinversecurities.com María Antonia Gutiérrez US Institutional Sales (52) agutierrez@actinver.com.mx Salomón Saba US Institutional Sales (52) ssaba@actinver.com.mx Tulio Chávez Institutional Sales (52) mchavez@actinver.com.mx Luis Javier Basurto Institutional Sales (52) lbasurto@actinver.com.mx 5

6 Analyst Certification for the following Analysts: Ismael Capistran Martín Lara Ramón Ortiz Federico Robinson Gustavo Terán, CFA Michel Gálvez Jaime Ascencio Roberto Galván The analyst(s) responsible for this report, certifies(y) that the opinion(s) on any of the securities or issuers mentioned in this document, as well as any views or forecasts expressed herein accurately reflect their personal view(s). No part of their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this document. Any of the business units of Grupo Actinver or its affiliates may seek to do business with any company discussed in this research document. Any past or potential future compensation received by Grupo Actinver or any of its affiliates from any issuer mentioned in this report has not had and will not have any effect our analysts compensation. However, as for any other employee of Grupo Actinver and its affiliates, our analysts compensation is affected by the overall profitability of Grupo Actinver and its affiliates. Guide to our Rating Methodology Total Expected Return on any security under coverage includes dividends and/or other forms of wealth distribution expected to be implemented by the issuers, in addition to the expected stock price appreciation or depreciation over the next twelve months based on our analysts price targets. Analysts uses a wide variety of methods to calculate price targets that, among others, include Discounted Cash Flow models, models based on expected risk-adjusted multiples, Sum-of-Parts valuation techniques, break-up scenarios and relative valuation models. Changes in our price targets and/or our recommendations. Companies under coverage are under constant surveillance and as a result of such surveillance our analysts update their models resulting in potential changes to their price targets. Changes in general business conditions potentially affecting either the cost of capital and/or growth prospects of all companies under coverage, or a given industry, or a group of industries are typical triggers for revisions to our price targets and/or recommendations. Other micro- and macroeconomic events could materially affect the overall prospects of an individual company under coverage and, as a result, such event-driven factors could lead to changes in our price targets and/or recommendation of the company affected. Even if our overall expectations for a given company under coverage have not materially changed, our recommendations are subject to revision if the stock price has changed significantly, as it will affect total expected return. Terms such as "price targets, our price targets, total expected return, analyst's price targets or any other similar phrase are used in this document as complementary to our recommendation or as a condition that could change in our point of view and, according to article 188 of Securities Market Act, do not imply in any way that Actinver, its agents, or its related companies are in any form providing assurance or guarantee, nor assuming any responsibility for the risks associated with any investment in the discussed securities. Recommendations for companies, both in the Índice de Precios y Cotizaciones (IPyC) Index and also not belonging to the index. We have three possible recommendations: a) BUY, b) HOLD or c) SELL. A stock classified as BUY is expected to yield at least 15% within the next 12 months. A stock rated as HOLD are expected to yield between 5% and 14% within the next 12 months. A stock rated as SELL is expected to yield less than 5% within the next 12 months. Rating Distribution as of June 26, 2013 BUY: 42% HOLD: 24% SELL: 34% 6