To the Shareholders of Grupo Herdez:

Grupo Herdez celebrated its 100th anniversary in 2014. A century of tenacity, effort and determination serving our customers and consumers to the full extent of our capabilities; a hundred years that can be told in figures, images and memories of the greatest moments of the Company, but above all, through a fascinating chain of stories.

For 100 years, these stories have told us about people who relate to our brands and products, people who day after day affirm the slogans of Grupo Herdez that are deeply rooted in the minds of Mexican consumers: hechos con amor, con toda confianza and póngale lo sabroso.

‘Confianza’, which means Trust, is the foundation upon which we built Grupo Herdez, and although the market and our business have never stopped evolving, this value has represented our essence since 1914. This is why consumers continue to prefer our brands, and it is the reason why for over 68 years we have maintained strong relationships with our partners and customers, delivering renowned products of unparalleled quality. Aside from the privilege of being here in such a meaningful moment, it is an honor for all of us who work at Grupo Herdez to be able to participate in the construction of the next 100 years, sharing the optimistic vision of a challenging future, full of opportunities and abundant with achievements.

This Annual Report provides a brief account of the growth of our organization during its first century, taking us on a journey through the history of the Group – from the first years when we were distributors to the consolidation of our US operations and the expansion towards new growth paths.

2014 Results

Our first century came to a close with outstanding results, despite a weakened consumption environment. Our strategies, and especially our commercial execution, paid off and allowed us to meet our annual objectives while outperforming the industry average, with 8.6% growth in consolidated net sales – including 12 months of Nutrisa, compared to 7.5 months in 2013.

Also, lower raw material costs helped the operating margin grow by 1.5 percentage points, with a 20.2% increase, while EBITDA increased by 17.8% to Ps. 2,415 million.

As a result of the appreciation of the US dollar, we recorded an exchange gain of Ps. 120 million, which together with the expansion in the operating margin, boosted consolidated net income to Ps. 1,504 million – a 31.1% increase.

The categories with notable performance were mayonnaise, tuna, salsa, mole and legumes, supported by the successful launch of the Herdez®

Guacamole Salsa and the new ready-to-serve flavors of Doña María® mole. Moreover, our associate company MegaMex added about three million total households to its consumer portfolio and we are now present at the tables of onethird of all US families.

During 2014 we invested over Ps. 550 million, mainly allocated to the following projects at our associated companies:

• At McCormick, we opened a mayonnaise factory in the State of Mexico. This new plant has a production capacity of 120 thousand tons across six lines and, thanks to its state-of-theart technology, is today considered the best plant in Latin America according to the trade magazine Industria Alimenticia.

• At Herdez Del Fuerte, we consolidated our vegetable production capacity in Los Mochis, Sinaloa, and initiated the construction of a new tuna fishing vessel.

One of the greatest challenges for Grupo Herdez in 2014 was Nutrisa. In an environment of depressed consumption, we decided to revitalize the Company and in order to do so, made changes at the executive level, significantly streamlined the product portfolio, and closed 42 stores where profitability was lower than expected. We registered over Ps. 60 million in extraordinary charges during the year related to this process, and closed the year with 429 stores, including 53 that we opened throughout the year.

We are certain that the actions taken at Nutrisa are the basis to drive growth and meet our goals in the long term.

Financial Situation

Resources generated by the operation totaled Ps. 1,970 million, equivalent to 13.8% of the Company’s consolidated net sales. This important cash generation helped reduce the debt to equity ratio considerably, even with the issuance of domestic bonds at the end of the year. The ratio of net debt to EBITDA decreased from 2.0 to 1.4 times. Furthermore, total shareholders’ equity increased by 8.6%, while the return on majority equity increased by 1.5 percentage points.

Sustainability

In 2014 we made progress in the area of sustainability, particularly with regards to the environment.

During this period, we reduced our water consumption by 7%, our energy consumption by 6% and our CO2 emissions by 42%.

Our commitment to the well-being and prosperity of the communities where we operate was also apparent throughout the year. Through the

Saber Nutrir® program, we provided another million hours of nutrition education in 454 schools.

In 2015, we aim to provide one million more hours in order to reach a total of 4 million. We also carried out 164 projects throughout Mexico and installed the first Germplasm Bank in the Mazahua area, favorably impacting the quality of life of those benefited by helping them achieve food security for their families.

Additionally, through our Internal Healthy Diet Program, 295 employees adopted healthier lifestyles and managed to lose a total of 1,957 kilograms.

100-Year Vision

On February 28th, 2015, we finalized the acquisition of Nestlé’s ice cream business. This transaction implies important synergies with Nutrisa in terms of scale, portfolio diversification, territo rial scope and distribution channels. The frozen goods division – comprised by Nutrisa and Helados Nestlé – will represent over 15% of our sales, turning it into the second largest category for Grupo Herdez and making us the second largest player in this industry.

We are very enthusiastic about this incorporation, which opens new paths of growth for the Group, and we extend a warm welcome to the more than 500 employees of Helados Nestlé to the Herdez family. What better way to start our second century!

At Grupo Herdez we look at the future with optimism. We have always done so, as this is part of our culture as a company and certainly one of the reasons for the success that makes us young energetic centenarians.

Opportunities in our country outweigh the challenges. That is why we allocate resources to modernize our facilities and invest in new businesses, creating jobs and seeking sustainable growth. To advance and maintain leadership in times of change, such as the one we are living in is no easy task, but we are ready and are proudly preparing the Company for the next 100 years.

What we are, we owe to trust.

Trust in the effort, commitment and enthusiasm of 8,735 employees; trust from our partners; trust from you, our shareholders; trust from our customers, suppliers and stakeholders; trust from banking institutions and the financial community; and, especially, trust placed in us by our consumers.

Thank you for sharing one hundred years of creating stories.

Sincerely,

Héctor Hernández-Pons Torres

Chairman and Chief Executive Officer