Consolidated Annual Report

Bimbo Bakeries USA

2017Cindy Salcedo

This annual report is based on the Consolidated Statements of Financial Position of Bimbo Bakeries USA.

Bimbo Bakeries USA is a bakery company who’s values are to serve with passion, have devoted in everything they do, work as a team, deliver quality, and offer high quality products and services every day.

The three first spreads are inspired by the company itself. The first spread is based on the Community work bimbo has done and how much work an volunteer work they have given back to the community, the second spread is based on the environmental work and the movements they are doing to push toward a better environment and a eco-friendly work place, finally the third spread is based on the products bimbo produces and where they place in the world.

The forth spread which is the financial spread which consists of the Consolidated Statements of Financial Position financial portion.

ANNUAL REPORTFRONT PAGE

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RK Chile

Diversity and InclusionTogether with the Good Neighbor and Fundación Mi Parque, 30 volunteers from Bimbo Chile, worked on the recovery project of the four playgrounds of “Arturo Perez Canto” Kindergarden, located in the Quilicura district. This institution is located in one of the most vulnerable areas of the sector, where more than 130 boys and girls attends from elementary school, medium school and high school levels of more than 6 nationalities.

ParaguayWe improve the study conditions of young people Volunteering was carried out at the Dr. Fernando de la Mora Sch ool, where volunteers painted the classroom and planted several flowers, with the objective of improving the study conditionsof the young people who attend this school.

2017 Volunteers

Mexico

Latin America

USA & Canada

Asia

PeruWe planted 50 fig trees for the Sagrada Familia Residence A group of Bimbo Peru associates, got together to fulfill BrotherMiguel´s dream to have green areas and large trees where children could play, teaching them the importance of reforestation and environmental care, through the donation of 50 fig trees, which were planted by our volunteers together with the school children.

ArgentinaWe paint your school, This action was carried out within the framework of the Corporate Management Volunteer Program and the Diversity and Inclusion Program. More than 20 associates participated with their families, where six classrooms were painted, as well as the corridors of High School 14, in the town of Derqui of Pilar Partido, Argentina, which nearly 100 children attend.

Total

18,101

3,335

1,159

120

22,715

1STSPREED

We want our environmental performance to lead by 2020 as an agent of change

Carbon Footprint Reduction

Water Footprint Reduction

Waste ManagementReduction / RecyclingPost-Consumption

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Energy Efficiency Renewable Energy

Water consumption & reuseQuality of residual water discharges

Water scarcity and quality risk analysis

1,569,252 tons1% reduction vs. 2016 Social

303,050 tonstotal waste 92% recycling

4,886,204 m3water consumption

18% reduction vs. 2009

We want our environmental performance to lead by 2020 as an agent of change

2NDSPREED

We are the largest baking Company in the world with presence in 32 countries.

Sliced Bread

USA #1 Canada #2 Mexico #1 Latin America #1 EAA #1

Cakes

USA #2 Canada #1 Mexico #1 Latin America #1 EAA #2

Buns and Rolls

USA #1 Canada #1 Mexico #1 Latin America #1 EAA #1

Bagels

USA #1 Canada #1 EAA #1

English Muffins

USA #1 Canada #1

Cookies

Mexico #2

Pastries

USA #2 Mexico #1 Latin America #2 EAA #1

Tortillas

Canada #1 Mexico #1 Latin America #1

Salty Snack

Mexico #2

Confectionery

Mexico #1

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North AmericaSales: 51%

MexicoSales: 31%

Latin AmericaSales: 11%

Europe Sales: 7%

+3.0 m points of sale+58,000 routes196 plants

Asia & AfricaSales: 7%

3RDSPREED

Consolidated Statements of Financial Position

As of December 31, 2017, 2016 and 2015 (In millions of Mexican pesos)

NOTES 2017 2016 2015

NET SALES

INCOME BEFORE INCOME TAXES

COST OF SALES 19

19

17

20

INCOME TAX EXPENSES

CONSOLIDATED NET INCOME

NET INCOME ATTRIBUTABLE TO OWNERS OF THE ENTITY

NET INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST

BASIC AND DILUTED EARNINGS PER COMMON SHARE

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (000’S)

GROSS PROFIT

GENERAL EXPENSES

OPERATING INCOME

NET FINANCING COSTS

EQUITY INCOME OF ASSOCIATED COMPANIES

DISTRIBUTION AND SELLING

INTEREST EXPENSES

ADMINISTRATIVE

INTEREST INCOME

INTEGRATION COSTS

EXCHANGE GAIN NET

OTHER GENERAL EXPENSES

MONETARY POSITION (GAIN) LOSS

$ 267,515

124,763

147,752

102,80118,3882,9291,162

125,280

17,472

5,872(314)11879

5,755

234

11,9516,282

5,669

4,629

1,040

0.98

4,703,200

$

$

$

$

Consolidated Statements of Financial Position

NOTES 2017 2016 2015

252,141 219,186

115,998 102,421

136,143 116,765

96,395 84,24517,320 14,2982,108 1,9332,236 2,168

118,059 102,644

18,084 14,121

5,486 4,576(249) (212)

5 18(650) (192)4,592 4,190

121 47

13,613 9,9786,845 4,063

6,768 5,915

5,898 5,171

870 744

1.25 1.10

4,703,200 4,703,200

$ $

$ $

$ $

$ $

$ $

Due to the significant judgments used in the valuation models for the determination of the recoverable values, with the assistance of our valuation experts we questioned the premises and criteria used by management in such models by performing, among others, the following procedures:

We conducted an independent assessment of the discount rates, growth trends and methodology used in the preparation of the impairment test model.

We tested the integrity and accuracy of the impairment models.

We performed sensitivitytests of the impairment model for changes inthe assumptions.

We considered the adequacy ofthe Entity’s disclosures in relation to its impairment tests, sensitivity analyses and the variations in the key assumptions used.

The results of our audit procedures were satisfactory.FI

NANCIALSPREED

ANNUALREPORT

2017

ANNUALREPORT

2017

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