China Industry Panel

Transcript

1. China Baking Industry Panel Sponsor

2. Mark Bendix President | Bimbo QSR JJ Wu CEO |

   Mankattan Hao Liang Chairman of the Board and General Manager Hanbao One Food Company

3. 12.7% CAGR % (2012-2017)  The Chinese market for baked

   goods has grown $12.8bn absolute gains in the last five years.  China has had the largest baked goods market growth in Asia Pacific historically. $53.5bn Market size 2022  The Chinese market will grow at a 13.3% CAGR from 2017- 2022.  This will lead to $24.7bn in absolute gains.  China is projected to be come the second largest market in the world for baked goods. © Euromonitor International 3 Pastries/Cakes  Pastries are set to grow the fastest in the next five years.  Sweet baked goods in cakes and pastries are worth almost three times more than bread products in China.  These sweet treats are popular for gifts and holidays, leading to higher priced, premium products. Healthy Eating  In the next five years, health conscious trends will continue to influence baked good categories.  More consumers will be looking for functional, better for you baked good products. Pro-US Business  China has made substantial improvements in recent years to encourage foreign investment.  Distribution and logistics remain the largest challenge for international companies looking to work in China. Key Takeaways for Baked Goods in China

4. COMPANY OVERVIEW M A R K B E N D

   I X P R E S I D E N T , B I M B O Q S R

5. OUR PURPOSE

6. Global Presence in 32 Countries Solid Leadership Position in Each

   Market

7. Our Beloved Brands Across the World 7

8. Hot Dog Buns Hamburger Buns Hard Rolls Buns & Rolls

   are Our Core Competencies Pretzel Buns Soft Rolls Hawaiian Buns & Sliders Brioche Buns Endless Flavors, Toppings, Inclusions and Scoring Capabilities

9. 195 Plants Efficiency and Scale +137,000 Associates Access to the

   highest technology Low cost per unit 9 Innovation & Nutrition Institutes

10. The Foodservice Opportunity in China • China is the largest

    market for foodservice restaurants globally, with over 7.8 Million Outlets. • Expected CAGR of 11.5% from 2018–2023. • Over 85% of Chinese consumers dine out at least once a week, particularly in large friend groups and family. • Increased time-pressed schedules is resulting in higher demand for meal convenience. • Currency is becoming obsolete given the popularity of Alipay and WeChat mobile payment options. • Consumers are rapidly adopting operator technology – particularly mobile ordering & payment processing, and home delivery services. • The Foodservice Industry in China is working to overcome increasing operating costs as well as the consequences of Food Safety concerns. • High labor costs, healthcare [the fastest growing cost], rising ingredient costs and inflation are affecting rapid market growth. • The Labor inflation rate for the past five years averaged 8 - 10%. Sources: Technomic, Euromonitor & Mordor Intelligence. Bimbo QSR has 10 High-Speed Bakeries located throughout the Region to meet the Carrier needs of China’s Foodservice Market