BEL

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GLANCE
Glance
GLANCE
hiGhliGhts FroM the 2014 Bel Business report
Full coverage of 2014 can be found in
150 portions to share and enjoy
at businessreport.groupe-bel.com
 PROFILe

sharing smiles through

unique experiences
of dairy goodness

With the single-serving portion, Bel invented a new way to eat cheese
150 years ago. Today, more than ever, this unique technological feat is
a modern response to consumer expectations. Thanks to its insatiable
appetite for innovation and a heavy dose of daring, Bel successfully created
The Laughing Cow, Kiri, Mini Babybel, Leerdammer, and Boursinall dis-
tinguished, global brands that attract new consumers every day and drive
the company's growth.

An international family business led by family members for five genera-

tions, Bel is also an actively engaged company. Aware that its corporate
responsibility goes beyond the doorstep of its plants, and that its business
activity also impacts the environment and local community development,
Bel and its employees are committed to conducting their business in a
respectful and caring way.

This commitment, this optimistic mindset and willingness to share with as

many people as possible, is encapsulated in the Bel's signature:

Sharing smiles.
 PROFILe

A responsible company
with strong ambitions
Founded by Jules Bel in 1865, the Group is now led by Antoine Fivet, who
represents the fifth generation of family leaders. Bel has always known how to
anticipate market trends and consumer expectations. And it continues to build
on its expertise, its five core brands and over 25 local and international brands
well suited to consumer habits, as well as the commitment of its employees. In
this way, the Bel Group is able to execute a strategy for sustainable and lasting
growth guided by its three core values: dare, care and commit.

5 core brands

more than 25 international and local brands

2 B EL at a glan ce 2 014
 33 countries over
with a Group 400,000 metric tons
presence of cheese produced

1.7 billion 2.8 billion

liters in sales,
of milk collected 58% of which is generated
by cheese portion sales

Nearly 11,000 28 production

employees sites
and 3 R&I centers

Over 17 billion
cheese portions
sold in nearly 130 countries

BEL at a gl a n c e 2014 3
 I nt e rvi e w

Seizing opportunities
for strong and
enduring growth

Antoine Fivet
B e l G ro u p C h air m an an d C E O

What is your reading on Bel's 2014

performance?

A N T O I N E F I V E T : The Group maintained its

positions in 2014, and we continued to grow in
a tough environment. Our sales and volumes
advanced, despite higher raw material
prices, geopolitical unrest in some territories
and anemic consumer spending in Europe.
Certain regions performed very well, in fact.
In particular, Western Europe reported sales
growth of 4%, while sales increased by more
than 11% in the Near and Middle East. Group-
wide, we reported organic sales growth of
3.3%. I applaud our teams around the world
for this performance.

Beyond the financial performance, the Group

also showed its daring. This is a value that has
been at the core of Bel's growth strategy for
150 years.

We opened our 28th production site, the

Mini Babybel plant in Brookings, South
Dakota, USA. That investment represents
the largest industrial capital expenditure

4 B EL at a glan ce 2 014
in our company's history, and it is aimed at
supporting the brand's growth potential in
the Americas. We continue to accelerate our
innovation strategy. Innovation, which lies at
the heart of our success, thrives on our in-
depth understanding of the consumers in our
various territories.
In the same spirit, we are experimenting with
alternative distribution models to reach new
consumers, particularly those with lower
purchasing power. I want our reach to go
through inclusive models that are economi-
cally sustainable and socially impactful. With
the "Sharing Cities" program, we have joined
forces with street vendors in Ho Chi Minh City,
Vietnam and Kinshasa, DG Congo, to build a
new distribution channel for The Laughing
Cow. Our products must be accessible. That's
something very dear to my heart.
And, of course, we have integrated the digital
revolution into our strategic thinking.
How do you explain this
performance?
A . F. Bel has always known how to make choices
early, to anticipate market trends and consu-
mer expectations. We are celebrating our
150th anniversary this year. That is extraordi-
nary longevity. Fewer than 3% of family enter-
prises survive the fourth generation, and we
are now in our fifth generation. Bel has major
strengths, and I have strong ambitions for the
Group. Our manufacturing and portions know-
how are unique.
Our products respond to consumer expec-
tations and meet changing lifestyle trends.
They are reliable, practical and fun, and we
pay close attention to their nutritional quality.
And our core brands, the most international
brands in the cheese sector, still have signi-
ficant growth potential, both in the countries
Our core brands
are the most
international
brands in the cheese
sector.
where they are already sold and in new terri-
tories as well. We must continue to develop
these brands and ensure that beyond their
intrinsic qualities they also meet the chal-
lenges of today's society.
Our corporate culture and mindset, encap-
sulated in our "Sharing smiles" signature, are
strong drivers of commitment for Bel's 11,000
employees and all our stakeholders around
the globe.
What's your outlook for the future?
A . F. In 2015, we expect to take advantage of a
less adverse environment for foreign exchange
and raw material prices. But we can't base our
sustainability on cyclical trends.
I'm confident about our capacity for growth.
We can be ambitious.
We are growing in a world that offers new
opportunities. In the next 10 years, 1.5 billion
people will gain access to consumer markets.
This demographic growth forms the basis
of our development. Our choices are further
strengthened by new consumer demand for
responsible products. We are building our
success on our ability to adapt, to seize these
opportunities. But we won't be doing it alone.
We cannot imagine our future without wor-
king more closely with all our stakeholders, to
create and share value with our ecosystem.
BEL at a gl a n c e 2014 5
 C orporat e G ov e rnanc e

Organization
& Corporate Governance
Fromageries Bel is a French corporation (socit anonyme) with a Board of
Directors. It is listed on the Euronext Paris stock exchange. Unibel, owned by
members of the Bel-Fivet family group, is the Bel Group's main shareholder
and lead holding company. In that role, Unibel actively participates
in setting and supervising the Bel Group's strategy. The Bel Group includes
Fromageries Bel and its subsidiaries.

T HE B OA R D GENER AL G R O U P M A N AG EME N T
O F D I R EC TO R S M A N AG EME N T CO MM I T T EE

Fromageries Bel is managed by a
board of directors. Under the stra-
tegy adopted by Unibel, the Board
of Directors approves all decisions
concerning the Company's major
strategic, economic, corporate,
societal, environmental, financial,
and industrial directions and ensures
that General Management imple-
ments them. It deals with all matters
concerning the proper operation of
the Bel Group and, to that end, is sup-
ported by the Audit Committee and
the Appointments and Compensation
Committee. Following the May 12,
2015 Combined General Meeting of
Shareholders, the Board of Directors
will have seven members, subject to
the approval of said meeting.
General Management is vested in
Antoine Fivet, Board of Directors
Chairman and Chief Executive Officer,
and Bruno Schoch, Deputy General
Manager, Group Finance, Legal Affairs
and Information Technology Systems.
They represent Fromageries Bel in its
relations with third parties, and are
invested with the broadest powers to
act in all circumstances on behalf of
Fromageries Bel, within the limit of the
law, the company's legally stated
purpose and the provisions spelled out
in the Board of Director's internal regu-
lations. These members, along with
Hubert Mayet, General Manager of
Manufacturing and Technical Division,
and Francis Le Cam, General Manager
of Group Operations, meet weekly for
Executive Committee meetings. They
approve and ratify decisions, drawing
notably on the recommendations of the
Group Management Committee, and
steer the Group's business performance
and risk exposure.
The Group Management Committee
coordinates operations. It is res-
ponsible for the proper execution
of strategic decisions and functio-
nal policies, as well as meeting the
Group's annual and multi-year
targets. It prepares decisions for
General Management by making
recommendations concerning ope-
rating performance optimization and
functional policies. Once General
Management has made a decision,
or as the case may be, the Board of
Directors has issued a decision, the
Group Management Committee is res-
ponsible for ensuring its proper imple-
mentation at the operating level and
keeping track of its results and impact.
Group Management Committee mem-
bers meet in the presence of the
Chairman and Chief Executive Officer,
the Deputy General Manager and all
Executive Committee members.

6 B EL at a glan ce 2 014
 Group Management Committee

Antoine Bruno Francis Hubert

Fivet Schoch Le Cam Mayet
Chairman and Chief Deputy General Manager, General Manager of Group General Manager of
Executive Officer, Group Finance, Legal Operations, Executive Manufacturing and
Executive Committee Affairs and Information Committee member Technical Division,
member Technology Systems, Executive Committee
Executive Committee member
member

Chantal Philippe Guillaume tienne Jennifer

Cayuela Champlong Jout Lecomte Marquet
Vice President, Research Vice President, Vice President, Human Vice President, Western Vice President,
and Innovation Asia-Pacific Resources, Communications Europe Marketing
and Corporate Social
Responsibility

Frdric ric Robert Chakib Joe

Nalis de Poncins Schlingensiepen Seddiki Tayard
Vice President, Americas Executive Vice President Vice President, Vice President, Vice President,
Group Strategy, North East Europe Greater Africa Near and Middle East
Development and
Transformation

BEL at a gl a n c e 2014 7
 strat e g y

Brands with strong

growth potential
In markets where Bel already has a presence, as well as in new countries
and new segments, Bel brands form the core of the Group's growth model.
Their success stems from strong competitive advantages, such as a capacity
for meeting new usage demands, while adapting to local tastes,
as well as the trust and bonds the brands build with consumers.

Three strategic segments

for Bel brands

The three favored uses for Bel brands are snacks, slices and spreads.
These fast-growing segments meet consumer expectations and new demand
for practical, correctly portioned products that can be eaten on the go.

P e n e trating n e w m ar k e ts
Bel began following an international growth strategy early on. Today, its products are distributed in nearly
130 countries worldwide. While Bel's growth is underpinned primarily by efforts to strengthen and develop
its market positions, the company is also seeking to conquer new territories. Bel holds leadership positions in
many of its markets, but regions such as the Americas and Asia remain major growth vectors for the Group.

Winning over new consumers also means enhancing the accessibility of Bel products, be it in terms of price
or availability. Through its idea incubator, Bel Access, the Group is working on new business models, notably
to reach consumers with lower purchasing power.

8 B EL at a glan ce 2 014
Maintaining cons u m e r pr e f e r e nc e
Bel applies the same demanding quality and food safety standards at all 28 of its production sites worldwide. Control
processes have been implemented across the entire production chain. The Group uses unique manufacturing
technology, particularly in the field of miniaturization, to ensure product performance, quality, differentiation, and
pleasure for the consumer.

Nutrition is also a core concern at Bel. Milk, the major ingredient in Bel cheeses, is a source of proteins, minerals and
vitamins, as well as calcium vital to health and growth. Bel strives to offer recipes adapted to the basic nutritional
needs of the product's target populations, while tightly controlling the amount of fat and salt content.

more than 90 innovations

were introduced in 2014

Roasted chicken flavored Boursin Cranberry & Pepper Kiri Labneh in tubs
The Laughing Cow A new flavor for the European A new face at the breakfast
Launched in Vietnam at the markets of France, the UK, table in Turkey.
same time as crab flavored. Switzerland, and Belgium.

I nnovation , a d riv e r of grow t h an d e ngag e m e nt

Innovation underpins the growth of Bel brands. The Group harnesses the innovation in its DNA by cultivating
a mindset that encourages empowerment, creativity and risk-taking among its teams. This commitment fuels
the growth and development of Bel's employees.

Whether it results in new products, renewed recipes or product range extensions, innovation enables Bel
brands to adapt to the diverse array of consumption habits around the world and to renew the eating pleasure
they offer consumers.

BEL at a gl a n c e 2014 9
 S oci e tal co m m it m e nt

Bel's responsible
business model favors
sustainable growth
The Bel Group's development stems from the convictions that have made it
third worldwide in branded cheese. Building on its 150-year history,
Bel relies on four specific characteristics that make its business model
strong and competitive, four strengths to meet the challenges prioritized
in its Corporate Social Responsibility policy.

CO MM I T ME N T in dustrial e xpertise

Act on behalf of Group employees Reduce our water consumption

Support the communities where Reduce our energy footprint
Bel is located Limit our carbon footprint

Ethical business practices

in d ivi d u al P O R T I O N S TRUSTed BR ANDS

Ensure a proper nutritional balance and Ensure unassailable food quality, safety
focus on natural qualities and traceability
Reduce food waste Provide clear and relevant information

In 2014, the Group conducted a materiality analysis with its main stakeholders to identify corporate social responsibility
priorities. Bel's responsible model provides a strong base for meeting the company's challenges.
The Group's 2014 CSR report, available at the Bel Group website, describes the Bel's CSR approach and achievements.

10 B EL at a g lan ce 2014
 Sharing the economic value created in 2014

5,800
retailers

Bel sal e s
2,783million
100%

6,500 P u rch as es P urc h as e s 3,400

other suppliers 30% 42% dairy raw
material suppliers
-842 million -1,170 million

Nearly
divi den ds Pay roll
1,600 1.7% 17% 11,000
shareholders -48 million -472 million employees

B an k ing
30 f ees
0.5%
Ta x e s
3.1%
25
financial Governments
institutions -15 million -85 million

se lf- 151 million external 32 million

financing 5.4% funding sources
after dividends

operating Financial Change in

Balance
investments investments cash position

-147 million -18 million +18 million

5.4%

For Bel, a business model is sustainable only if it creates financial value for the company and ensures
that its stakeholders are positively impacted as well. In this way, the Group lays the groundwork for its
future in a responsible and lasting way. The Group's performance thus has a direct or indirect impact on
all stakeholders, internal and external alike. The Group estimates that its performance has an impact on
nearly 50,000 jobs.

BEL at a gl a n c e 2014 11
 P e rfor m anc e

Key figures
Sa l e s

2.8 billion
Up 2.3% versus 2013

OPER ATIN G IN CO M E Co n s o l i dat e d n e t p r o f i t - G r o u p s h a r e

234 million 126 million

199 million 123 million

2013 2014 2013 2014

-15% -2.3%

In 2014, the Group reported further sales and volume growth despite a continuation of lackluster economic conditions
in Europe and despite unrest in some markets of the Near and Middle East. After taking into account a negative 1.0%
foreign exchange impact, consolidated sales advanced 3.3% organically to 2,783 million.

The growth once again reflected the strength of the Group's core brands and the effectiveness of its targeted sales
and marketing strategies in all geographical regions. Operating income totaled 199 million, down 15% versus the
previous year.

In 2014, the Group was penalized by rising average raw material prices, despite the easing observed in the last four
months of the year, and unfavorable foreign exchange fluctuations. Retail sales price adjustments and the various
measures undertaken to improve operating efficiency were not enough to fully offset the negative impact of those
events.

12 B EL at a g lan ce 2014
2 014 Sa l e s b r e a k d o w n

North East Europe

20% -7.5%
40%
1,122 M
+4.5%
552 M

Western Europe
15% +11.6% In 2014
15% +0.4% 402 M
419 M
10% Near and
288 M Middle East
Americas, Asia-Pacific

+5.8%
Greater Africa

i n 2 014
Over Nearly

3.3%
organic growth
70%
of sales were generated
80%
of sales were realized
by Bel's five core brands outside France

O u t lo o k f o r 2 015

The economic and geopolitical uncertainty ushering in the 2015 financial year does not augur well for
consumer spending. The monetary environment and raw material supplies are on a more favorable trend
but nevertheless remain highly volatile.

In this climate, the Group confirms its goal of advancing its positions sustainably in the world cheese
market.

Bel's full 2014 financial results are available

under the Finance tab at bel-group.com

BEL at a gl a n c e 2014 13
 P e rfor m anc e

Western Europe

Core brand growth

momentum confirmed

In 2014, sales in Western Europe grew 4.5%, versus 2013.

That performance reflected the momentum of Bel's core
2
brands, which advanced and grew market share in all
8
countries of the region for the fourth year in a row. Bel's
2
positions in the strategic slices, spreads and snacks categories
were strengthened by heavy investment in advertising and
major in-store promotional campaigns.

Plants Subsidiaries R&I centers

Head office
Mini Babybel reported record sales Boursin sales were flat compared with
growth, particularly in France, as well as 2013, although certain prioritized pro-

1,1
122
22 m in Italy, Spain, and Portugal. Leerdammer
also posted sales growth in 2014, notably
2014 Sales in the slices segment thanks to a strong
product innovation program. The brand
made particularly significant headway in
France, the UK and Switzerland.
ducts such as Boursin cheese rolls had
strong sales increases. Western Europe's
growth momentum was driven by sales
in France, the Group's home market,
which accounted for around half the
region's sales.

Kiri continued to develop its usage range

through a cooking program and one-of-
a-kind family recipes that are easy to
make. The Laughing Cow generated
Innovation buoyant growth thanks to the reactiva-
Leerdammer tion of the Dip & Crunch brand. The brand
continued its beefed-up
met with success, posting remarkable
innovation program
volume growth in Spain, Portugal and
France.

Growth
Mini Babybel reported
record growth in France,
Italy, Spain, and Portugal.

14 B EL at a g lan ce 2014
 North East Europe

Region's markets reported

mixed results

With sales falling 7.5%, North East Europe reported mixed

results for its markets. Germany, the region's largest market,
3 was negatively impacted by higher raw material prices,
leading to a cut in promotional volumes. In Ukraine, the
region's leading market for The Laughing Cow, sales were
unfavorably impacted the country's geopolitical environment.

Plants Subsidiaries R&I centers

Representation office Central European markets, faced with The snacking market expanded across
strong competitive pressures in the pro- the region, confirming the growth
cessed cheese segment, reported potential and performances of the

552 m
552 M steady sales, with momentum driven
notably by Slovakia's Karicka brand.
Mini Babybel and Leerdammer brands in
this strategic segment for Bel.
2014 Sales
North European markets continued to The 2014 financial year was marked by
generate remarkable sales growth tougher sales relations and highly vola-
versus 2013. tile raw-material prices due to the
Russian embargo on dairy products
Core brand performance was also from the European Union.
mixed. Mini Babybel posted higher
sales volumes and generated promi-
snacking
sing performances across the region,
The snacking segment is
expanding, confirming the particularly in the Nordic countries and
growth potential of the Netherlands, where the brand
Mini Babybel and Leerdammer. posted double-digit growth.

Leerdammer reported lower volumes

Momentum
Slovakia's Karicka brand
maintained its momentum in a
highly competitive processed
cheese market.
largely as a result of decreased promo-
tional spending in Germany. Conversely,
the brand benefited from heavy promo-
tional investment for its successful
launch in Sweden and Denmark, while
winning over German consumers with its
new Leerdammer Snack product.

BEL at a gl a n c e 2014 15
 P e rfor m anc e

Americas, Asia-Pacific

Growth recovered
in 2014

Driven primarily by North American markets, with sales

advancing in Canada and the United States, the Americas,
3 Asia-Pacific region reported a 0.4% sales increase over 2013.
The performance was more mixed in Asia-Pacific countries,
with an overall decline in consumer spending in Japan and
Vietnam, the region's two buoyant markets.

Growth recovered in the United States, Within the Asia-Pacific region, China,
Plants Subsidiaries fuelled mainly by Mini Babybel, which Australia and South Korea posted positive
reported higher sales volumes primarily as volume trends. Vietnam reported a decline
a result of a new advertising campaign in sales volumes in an environment of lower

419 m
M based on the lunchbox. At the same time,
sales of The Laughing Cow recovered
overall consumer spending. Lastly, sales
volumes in Japan were down. Bel Japan
2014 Sales thanks to a repositioning of the brand in the changed its supply chain and distribution
"mindful snack" segment and a daring re- process and established a local production
launch plan. partnership to manufacture its products
closer to market and guarantee optimal
The Canadian market continued to grow product quality.
for the seventh year in a row. The growth
was driven by the double-digit sales
advance of Boursin, confirming the rele-
vance of the sales and marketing plans
brookings rolled out for the convivial "party" cheese.
The Mini Babybel plant In Latin America, sales declined versus
in Brookings opened to support 2013, with a transitional year reported in
the brand's growth.
Mexico and importation difficulties
encountered in Brazil, Argentina and
Venezuela.

Growth
Canada reported its seventh
consecutive year of growth, buoyed
by Boursin's double-digit sales
increase.

16 B EL at a g lan ce 2014
 Greater Africa

Growth momentum
continued apace

With sales in Greater Africa up 5.8%, the Group consolidated

its leading positions in the region's main markets, despite
a decline in consumer spending momentum in North Africa
and the impact of the Ebola epidemic in West Africa.

Algeria and Morocco remained the
regions flagship markets, with strengthe-
Plants Subsidiaries ned leadership for Bel in Morocco in 2014,
and a remarkable performance in Algeria,
which posted double-digit sales growth
In 2014, Greater Africa achieved further
sales momentum and consolidated its
profitability, despite the negative raw
material and foreign exchange impacts,
which were notably offset by retail sales

m
288 M versus 2013. price increases and productivity gains
achieved in manufacturing and the
2014 Sales The overall performance was fueled by supply chain.
The Laughing Cow and Kiri, as well as
local brands. These results confirm the
relevance of actions taken to activate the
brands within the region, as well as the
growth momentum of the cheese block
format with The Laughing Cow Chef in
Algeria, for example, and the relevance of
Innovation the product innovation strategy, notably
The Laughing Cow with the launch of The Laughing Cow
Cheese Blocks were introduced Cheese Blocks in Morocco.
in Morocco.

Growth of
The Laughing Cow Chef was
consolidated in Algeria.

BEL at a gl a n c e 2014 17
 P e rfor m anc e

Near and Middle East

All markets in the region

reported uptrends

The profitable growth fundamentals of the Near and Middle

East region were confirmed in 2014. Despite political instability
in some countries and security risks in others, sales advanced
significantly, climbing 11.6% over 2013.

All the region's markets reported
Plants Subsidiaries
favorable sales trends, with sales up
Representation office
sharply in the Levant, where strong
performances were achieved in all
Products that met consumer needs
drove the Group's growth in the Near
and Middle East, notably with The
Laughing Cow and Kiri in portion and

402 m
M countries. In the Gulf states and in
2014 Sales
Portions deployed
Kiri Labneh was introduced in
the portions format to Egypt,
Libya and Middle Eastern
markets.
Saudi Arabia in particular, the Group
tub formats. Local brands also contri-
buted to growth.
stabilized its market share.
In a highly volatile and uncertain envi-
The improved performance was dri- ronment, the agility and res-
ven by heavy marketing expenditure, ponsiveness of the teams, as well as a
along with a dynamic innovation stra- streamlined organization and opti-
tegy based on the rollout of such mized logistical costs, helped bolster
offers as Kiri Labneh and Kiri Spread profitable growth in the region.
in Egypt, Libya and Middle East, and
the launch of Picon mega-portions in
Lebanon.
The significant increase in production
capacity in Turkey and programs to
optimize operating productivity
excellence within the region also spur-
red growth.

Growth
The Laughing Cow and Kiri
brands boosted the region's
sales growth.

18 B EL at
EN aB REF
g lan
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2 014
 Follow Bel Group news at bel-group.com
and on Twitter @Belcorporate

2014 Bel Group reports are available online

Business Report
businessreport.groupe-bel.com

The Corporate Social Responsibility Report

brief.fr/bel/csr-2014

Registration document
bel-group.com/en/finance/regulatory-information

Bel Group contact information: Corporate Communications communication@groupe-bel.com

fromageries Bel Head Office: 16, bd Malesherbes, 75008 Paris
Tel.: 33 (0)1 40 07 72 50 French corporation (socit anonyme)
with a share capital of 10,308,502.50 - SIREN 542 088 067 RCS Paris
design and production:
Photo credits: Grgoire Korganow, Bel Group stock photos
This business report was printed by an ImprimVert printer using paper that meets FSC (Forest Stewardship Council)
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BEL at a gl a n c e 2014 19
20 B EL at a glan ce 2014