H-E-B

10/23/14

Our Story

• Our story is one of perseverance — of early failures and trying again

• We believe in the value of hard work, the importance of taking care of people, and dreaming big

Our Story – The Beginning

• 1905: Florence Butt invests $60 to open the first store in Kerrville, Texas

• 1926: After some unsuccessful attempts, H-E-B doubles in size by successfully opening a second store in Del Rio

• 1937: H-E-B begins operating the Harlingen Cannery Co. (the first product is grapefruit juice)

Our Story – The Next Generation

• 1952: The first food/drug store opens in Corpus Christi

• 1971: Charles Butt is named President of H-E-B Grocery Company, a $250 million business

• 1980: After 75 years in business, H-E-B reaches $1 billion in sales

Our Story – Growing & Growing

• 1994: First Central Market opens in Austin.

• 1997: First store in Mexico opens in Monterrey.

• 2001: H-E-B enters the Houston market in a Texas-sized way with large-format stores; the first one opens at Fountainview and Westheimer.

• 2004: First H-E-B Plus! store opens in San Juan and H-E-B opens a new Houston Bakery. This fully automated facility provides fresh breads to the region. The bakery produces an average 153 loaves of bread and 750 buns per minute.

• 2006: Mi Tienda, a fresh new shopping experience for Latino Customers, opens in Houston.

• 2010: The first Joe V’s Smart Shop opens in Houston.

H-E-B Today

H-E-B by the NumbersYears in Operation 108

Annual U.S. Sales $19.4 B

Annual Global Sales $20.9 B

Number of Stores 358

Number of Stores in Mexico 47

Number of Central Markets 9

Number of Plus! Locations 34

Largest Store 185,000 sq. ft.

Number of Own Brand Items 14,500+

H-E-B

Port of Houston Volume:

What Is Needed To Support Using The Port of Houston?• Shorter transit times (Panama Canal congestion). Increased transit

time = more safety stock = more investment for HEB.

• More steamship lines calling on the Port of Houston = more competitive Freight Rates.

YEAR Total CBM Total TEUs2012 104,005 3,714 2013 63,887 2,282

H-E-B

Port of Houston Improvements Needed to Support Additional Business:

• Heavy Weight Corridor

• Cold Storage Facilities

• Cross Dock Facilities