Research Work: CASE OF THE COMPANY GRUPO BIMBO, SA DE C.V. SUBJECT: Economic Environment TEACHER: Francisco J.

Núñez de la Peña STUDENT: Carlos Ibarra Sanchez Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra CASE OF THE COMPANY GRUPO BIMBO SA DE C.V. Grupo Bimbo .- Source: Key quote: BIMBO Series: Capital and Debt Founded: 6/15/1 966 Date listed on the BMV: 02/19/1980 Investor Relations: CP Armando Giner Chav ez (Investor Relations Manager) Industry: Food Preparation Economic Activity: Ho lding Company devoted to the production and distribution of foodstuffs Major pro ducts and / or services packaged bread, homemade pastry, cookies, candy, chocola tes, sweets and salty snacks, packaged corn tortillas and flour of wheat, toast, caramel and processed food. Chairman of the Board of Directors: Roberto Servitj e Sendra Director General: Daniel Servitje Montull Finance and Administration Di rector: Guillermo Quiroz Abed "Bimbo Bakery," the first company in the group, wa s founded in 1945 in the City of Mexico, then 1952 to 1978, he opened 12 more pl ants, which allowed him to extend the distribution of its products throughout Me xico. during this same period, the company was "cakes and biscuits," which later became "Marinela products" and established the first floors of candy and chocol ates from "Ricolino" salty snacks and Barcelo. bimbo group began its internation al expansion in 1990 and today has become one of the largest baking companies wi th global presence, standing as a leader in Mexico and several Latin American co untries. has plants strategically located in Mexico, the USA, Argentina, Brazil, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Peru, Uruguay, Venezuela, Austria and Czech Republic. Also, your sales force is more than 40,000 people covering more than 20,000 routes and serve approximately 550. 000 points of sale. Often I wonder if one day the group's founders dreamed we wo uld be present in many parts of our country and abroad, the truth, I never imagi ned. In the inaugural Parchment Bimbo Bakery, the December 2, 1945, there are tw o words that I believe are the answer to the question: BELIEVE - CREATE. Subject : Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Ca rlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra For me, the foundations of this great company were faith in God and see the valu e of work as an extension of his creative work. Over the years, this faith and t his building became a reality, day after day, through the work of dozens, and no w tens of thousands of people who have formed and are our beloved group. The mai n founders, Lorenzo addition, Jaime Jorba were my brother, my sister married a b rother of my mother, Jaime Sendra and José Mata, a school friend of my brother L orenzo, who was his partner in a business called Servitje and Mata . The main br ands in Mexico's Grupo Bimbo are Bimbo, Marinela, Barcel, Ricolino, Tia Rosa, Wo nder, Suandy, Lara, Milpa Real, Coronado. Among its main products we find: Bread s, cakes, biscuits, tortillas, sweets, chocolates, salted snacks and caramel (bu rnt milk candy). .- Factors that drove our growth: • The value of the effort. • Confidence in Mexico. • Integration. • Eagerness to grow: territorial expansion. • Reinvestment. • Maintenance-Austerity Policy, Service Quality. • Diversificat

ion of lines. • Delegation. • export / internationalization. • Order, cleanlines s and quality. • Cutting edge technology-modernization. • Structure. • The secre ts of success. Under this provision will mention what are the secrets to success used by the company to be the group that now is the first secret is SERVICE, is reinvestment, after GROWTH, MARKETING continues after permanent interests of pe ople, then DEVELOPMENT OF NEW PRODUCTS. • Our contribution to the consumer. Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra .- Backbone. We see the company as a community of people permanently working on building a highly productive and fully human. The spirit of our company is forme d by all. By following our golden rule: respect, fairness, trust and affection. • Importance of business philosophy.€In philosophy we must include provisions th at include: care of the ecology, cleaning publicity, respect for the laws, the e xact fulfillment of fiscal responsibilities, guidelines that lead to civic respo nsibility and political and guidelines that promote savings and austerity. • • • The firm as an institution, its insertion in history. Economic systems. Towards a socially responsible company. .- Philosophy business. The base and the livelihoods of the company, the first s troke to be sketched out she is his business philosophy. • • • • • • • • • • • • • • • With high values and principles. Personality. Excellence. Be more. Ideals and objectives. Inner peace. The price of success. Union Social de Empresarios Mexicanos. Principles and core values. Integrity. Dignity. Solidarity vs shared. Compete. Subsidiarity. Value of work. Great thinkers and concepts of management . .- Towards a transformation of the company. That work is not just a job but a mi ssion, a passion and an adventure. To this end the goals of the workers have to be the same as those who direct. Only then will assume full responsibility and w ill do their best for themselves. Subject: Economic Environment Teacher: Francis co J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com. mx carlos.ibarra • • • The need for a transformation. Problems are opportunities. Through participation . .- As advance to participate. Participation is not objective, is a tool to give real content and realize the hope that workers are not implementers silent but t hey are soaked to the objectives and business needs, so that with interest, enth usiasm, creativity and ability to integrate the overall effort. • • • • • • Part icipation in the information. Participation in the consultation. Functional part icipation. Profit sharing. Participation in the property. Institutional particip ation. .- A mission and an ideal. The backbone of the company is its philosophy. In gro up Bimbo, our mission is to guide all our actions. Pursuing his achievement and advance every day every day in the achievement of our goals is our raison d'etre as a company. • • • • • • To serve, our reason for being. Our mission. Creating a culture. Our values. Our purposes. Our code of ethics, history and current. .- A company will be what the staff and what are their bosses. • We work in Bimb o chamba no. • Developing the confidence of our staff. • The policy. • Other est imuladotas. • Political leaders. • Leadership. • Nature of leadership. • Charact eristics of the leader. Subject: Economic Environment Teacher: Francisco J. Núñe z de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos. ibarra

.- Challenges. In this chapter I will discuss the challenges facing Bimbo. These are challenges we've had for many years and, while overcoming them we have won many battles, the end of the war represent a completely never won. Everyday is a growing need to operate more effectively. The quality, productivity and globali zation are stories that have not ended. Just when we think we are finished, star t a new chapter. Quality requires continuous development: develop new equipment, introducing new materials, raw materials are used more nutritious. • • • • • • • • Productivity. Productivity and austerity. Globalization. As globalization be gan. Points to consider for internationalization. What can we learn from globali zation. The main challenges of Grupo Bimbo. The main challenges for Mexico. .- Government and society. • The country we want. Mexico is neither more nor les s than what we are Mexicans. We are the architects of the good and the bad that happens in our country. We can not criticize without criticizing ourselves. We c an not blame anyone for our problems and failures. That certainly we want a bett er country ... but nobody will do it for us. We each of us and our ancestors, th ose who have been molded over time. We have done and we must continue to do so, with civil courage. Our customs, our government, our country will be what we wan t. • • • The vote. Join or separate. Where is stopped Mexico? A transcendental spectrum is corruption. When this pervades the many activities of daily life, everything is distorted and it is impossible to aspire to the ord er and legality. There is no mystery, the company that responds intelligently to the social challenge,€which serves well to everyone: men and women outside-the consumer-and the men and women in - workers - to society as a whole, producing m atter: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 5 27 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra wealth, protecting the environment, respecting the laws and contributing to the common good, has also ensured the success it deserves. A dear friend invited me some time to write this book. On that occasion, thanked him for his kind suggest ion but said it did not want to. I thought that there are many books on the mark et about the trajectory of business, and every day longer published. It seemed p retentious to believe that there might be interest in what I could express. Howe ver, some time later, with new emphases and new arguments, I agreed to do so. Th e reason? . I realized at last that can be a means to continue an effort that fo r decades have done with hope and optimism. In fact, I have devoted many hours o f my life to show my fellow entrepreneurs, and young people who aspire to enter this vocation, my deep conviction that the company plays a decisive role and beh avior of society and therefore must respond to what it hopes that society. The c ompany is undoubtedly the engine of socio-economic life of a country and makes u p the lifestyle of its inhabitants. .- Statistics: Quote Series: A Date: 05/12/2 004 Price latter fact Previous Price Change High Low Volume Traded Ult. Hi last year. Min previous year previous year 22.90 23.03 -0.56 41.500 23.00 22.90 21.09 Indicator Series: A Third quarter 21. 10 14.00 2003 Market Price / Earnings 22.43 Price / Book Value 1.44 Financial (1 2 months) Earnings p / share p 0.80 book value per share 12.45 1,175,799,808 Sha res in circulation Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra GRUPO BIMBO, SA DE C.V. Information for the first quarter of 2004 Amounts in tho usands of dollars Balance Sheet Assets Total: 30,660,680 Total Liabilities: 14,4 65,862 Equity: 15,840,720 Sales Results: 11,921,730 Operating income: Net 742.90 8: 523.497 Information for the first quarter of 2003 Amounts in thousands of dollars Balanc

e Sheet Assets Total: 33,824,024 Total Liabilities: 18,753,616 Equity: 14,695,24 4 Sales Results: 11,471,946 Operating income: Net 582.992: 92.610 The following table shows the net sales per geographical area for the periods in dicated: The following table shows the quoted prices high, low and closing in nominal pes os and the trading volume of the Series "A" BIMBO in the BMV, for the periods in dicated. Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra 21/06/2002 11:01 PM (2K) MEXICO v3 84 420 [1t5003!. DOC] Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra .- Product Line: The major brands under which its products are marketed Bimbo: Currently, Marinela is dedicated to the production, distribution and sale of var ious pastries, cookies, granola bars and fruit, mainly under the following brand s: The major brands under which its products are marketed BBU: OLA. Organization responsible for coordinating the Group's operations in Latin A merica. These operations began by building their own plants, joint ventures and acquisitions in certain countries. Its operations are located in Argentina, Braz il, Chile, Colombia, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Pe ru and Venezuela, representing a potential market of 325 million consumers. Duri ng the year 2001, conducted BIMBO acquisitions are reflected in this geographica l area, as were the acquisition of Plus Vita, Ltd. in Brazil in March 2001 and t he acquisition matter: Economic Environment Teacher: Francisco J . Núñez de la P eña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra production of certain assets belonging to Gruma, SA€of C.V., in the Republic of Costa Rica. The major brands under which markets its products are: The following table shows the market share of traditional bread and packaged in some countries of the region: .- Products: At December 31, 2002, BIMBO produced more than 3,600 products, which are the mai n generic lines in the table below: Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55

527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra Discussion Questions: 1 .- Grupo y bread and pastries? 2 .- Grupo our recipe? 3 .- I would like to ong will the boom in the market? y that the Grupo Bimbo? Bimbo really made his huge financial empire onl Bimbo produces products that have a secret in y work at a company like this and why? 4 .- How l 5 .- How many companies have formed the same wa

Sources of information: Annual Report 2002 of Grupo Bimbo SA of C.V. Internet Ad dress BMV. Book: BIMBO Business Success Strategy. Subject: Economic Environment Teacher: Francisco J. Núñez de la Peña Student: 55 527 Carlos Ibarra-Sánchez e-mail: @ tesa.com.mx carlos.ibarra