65 YEARS ADDING VALUE

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1 65 YEARS ADDING VALUE

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

3 BACHOCO Founded in 1952 in Cd. Obregón in the state of Sonora, México More than 65 years of experience in the poultry industry. #1 in México and among the 10 largest poultry producers worldwide. Operations in México and in the U.S. Trading on the BMV and the NYSE (through ADRs, level III) since billion USD sales in More than 27 thousand employees.

4 Others Chicken 85% 5% 5% 5% The core business of the Company is chicken. The company produces and markets all different categories of chicken products such as: live chicken, whole chicken, cut-up, partially or fully cooked, marinated or breaded among others. The Company produces and markets white and brown eggs, as well as other egg products like egg produced in cage free conditions. 70% of the Company s sales of egg are in package with brand identification, and the remaining 30% is sold in bulk. Feed sales are made under the CAMPI brand, a subsidiary of the Company. The feed is sold mainly in the South and Central Mexico and some exports to the Caribbean. Feed sales include a wide range of categories: cattle, birds, swine, fish, etc. We include here our Pet Food Business Line. BACHOCO sells live swine, mainly to meat packers in Mexico. The Company participates in the turkey and beef value-added products. It does not raise either turkey or cattle; it only processes these products: burgers, nuggets, whole turkey, among many other products. 4

5 In U.S. In México Chicken Table Egg Balance Feed BACHOCO 35% Others 65% BACHOCO 6% 94% Otros BACHOCO 3% 97% Others We are the largest producer We are the second largest producer We are the third largest marketer Chicken BACHOCO 3% 97% Others We are in the top 15 of the largest producers of chicken. Of our total sales, the 71% is generated in México and the 29% in United States 5

6 Headquarters Complexes Distribution centers Complexes Distribution centers Farms Hatcheries Processing plants Further process plants Feed mills 6

7 Net Sales -milions of pesos 27,735 39,367 39,711 41,779 46,229 52,020 58,050 45,631 EBITDA margin 12.7% 8.8% 10.3% 6.2% 14.7% 12.7% 11.1% 11.1% 9.1% M M18 Income per share -In pesos per share Sales in Mexico Sales in the U.S. 95% 5% 79% 79% 80% 76% 74% 21% 21% 20% 24% 26% 68% 71% 32% 29% M M18 12

8 CAPEX -In million of pesos 3,479 2,460 1, ,241 1,825 1, M18 Net Cash - In million of pesos M18-1,199-2,418-5,653-9,518-11,163-11,612-11,911-12,383 13

9 Fuente: Yahoo Finanzas Bolsa Mexicana de Valores The New York Stock Exchange Ticker symbol: Bachoco Ticker Symbol: IBA In pesos per Share In dollars per ADR High Low Close Variation High Low Close Variation 9M (10.3)% (5.38)% % % % % % % % % % % % % % % A total of 600 million shares. One single class with full rights. Free float of 26.75%. ADR level III. ADR is equal to 12 shares. Market Cap of $ 55,854 million pesos. Bond Issuance Bachoco issued bonds in the local capital debt markets for a term of 5 years, maturing in These bonds are currently rated AAA (MEX) by Fitch, and HR AAA by HR Ratings. 14

10 A growing company in all our business lines. National distribution coverage in Mexico. Low cost producer. Presence in the US. Well-recognized brand Strong balance sheet. CCXXX 15

11 A normalized growth in poultry industry in Mexico and in the US, consequently a balanced supply and demand. Volatility in the Mexican peso, depending mainly on NAFTA negotiations and the political environment in Mexico. We will continue: Working to complete the integration of our two recent acquisitions. Focusing on our growth plans and efficiency initiatives. CAPEX above maintenance levels Looking for M&A opportunities that fit in our growth strategies. Implementing ways to be closer to our customers and attend their needs. Reinforcing our participation in other proteins in Mexico. Focusing on those things we can control, and managing the other ones as best as we can, depending on the market conditions in our industries. 16

12 CONTACTO Maria Guadalupe Jaquez, IRO Andrea Guerrero T. +52(461)