BILL MCGOWAN

BAKERY SEGMENT

• Largest supplier of high value-add food ingredients for the North American bakery industry

• Limited share of the bakery market on other continents

• Main product lines: emulsifiers (lactic acid derivatives), enzyme based functional blends, bases & mixes (incl. frozen dough) and fortification

Bakery segment today

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Bakery segment growth driven by

• innovation and market insights…

• ……that let us create value propositions for our customers

• and build our business through key account management approach

Outperforming the market in tough US economy

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Enabling factors

• Deep bakery industry expertise

• Highly responsive and agile production capabilities

• Largest and highly knowledgeable sales force

Bakery segment core strengths

Competitive advantages in market place

• Customization and formulation skills to deliver unique products that meet individual customer needs

• Leading positions of core platforms in the North American markets

• Best in class innovation capabilities

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Product portfolio delivers key food integrity attributes of freshness, taste, mouth-feel and aroma

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The North American bakery market is concentrated and mature….

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…. But the bakery category is growing in many other countries

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Well positioned to meet consumer and customer needs

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Strengthen the core US franchise

• Close partnerships through key account management

• Continue to invest in marketing, accelerating our customers’ growth International expansion leveraging the company’s global footprint

• Roll out superior bakery knowledge into selected markets

• Use local experts to gain fast market access (distribution/ local supplier acquisition)

• Support our North America- based customers expanding into new countries Innovation and new product pipeline

• Commercialization: Ultra Fresh Sweet and Ultra Fresh Premium Advantage

• Feasibility: leverage Purac anti-mold and Calcium Propionate technologies

• Product line extension: other fermentation based Food Integrity products

Three focused strategies for Bakery

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• Ultra Fresh is a platform of complex enzyme blends that delivers supreme freshness

• It was developed through our application expertise

• First commercial sales in Q2 2013, growing rapidly

• Sustained freshness through product lifecycle

• Increased variety to meet multiple family members taste

• Enhanced flavor, taste and texture

• Increased sales through expanded sales window up to 30%

• Reduce stales and waste up to 50%

• Improve manufacturing/labor efficiencies

Using innovation to capture food integrity opportunity

Benefits for customers

Benefits for consumers

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Leveraging relationships to grow with our major North American customers

• Our customers require a regional supply, and a continuous flow of innovations to improve products or lower costs

- Helping Flowers expand from a regional to a national presence in our core US market

- Supporting Bimbo’s expansion from its US/Mexico base into targeted countries in Asia, LatAm and Europe

Targeted market entry strategy for global expansion with functional blends portfolio

Roll out superior knowledge into selected markets

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• Leader in quality value-add North American bakery ingredients market

• Extensive formulation capabilities will be enhanced with fermentation capabilities

• Superior market knowledge and expertise, leading to close customer partnerships

• Three pillar growth strategy - Strengthen the core US franchise - Strong pipeline of product innovations - International expansion into targeted geographical markets leveraging the

company’s global footprint

• In ongoing difficult market conditions, the Bakery segment will continue to outperform the market and deliver strong financial performance

Key takeaways

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