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 Numbers Years 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 Number of Own Brand Items 185,000 sq. ft. 14,500+ H-E-B Port of Houston Volume: YEAR 2012 2013 Total CBM Total TEUs 104,005 3,714 63,887 2,282 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. H-E-B Port of Houston Improvements Needed to Support Additional Business: • Heavy Weight Corridor • Cold Storage Facilities • Cross Dock Facilities