Coca Cola FEMSA B de C : INTEGRATED REPORT 2024 (KOF IR 2024 ENG)

At Coca-Cola FEMSA, we are building a future-ready organization focused on implementing a long-term sustainable growth model, with a vision of being our customers' and partners' preferred commercial platform and ally for growth, fostering a sustainable future. This vision drives us to continuously innovate, adopt technology and sustainability practices that are not only revolutionizing our industry, but ensuring responsible and enduring growth. By integrating these perspectives into our business model, we not only aim to meet the expectations of our customers and partners but also aim to bring tomorrow closer.

CONTENTS

Letter to Our Stakeholders . . . . . . . . . . . . . . . . . . . 4

Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . 8

Sustainability Highlights . . . . . . . . . . . . . . . . . . . . 9 Our Strength Comes From Staying

True to What We Believe . . . . . . . . . . . . . . . . . . 10

A Strategic Footprint That Drives Growth . . . . 12 A Winning Portfolio That Leads

The Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

A Robust Value Chain . . . . . . . . . . . . . . . . . . . . . 14

A Strategy That Powers Our Future . . . . . . . . . 15

Core Foundations That Guide Our Path . . . . . . 16 Leaders Empowering Teams,

Delivering Results . . . . . . . . . . . . . . . . . . . . . . . . 17

Interview with Our CFO . . . . . . . . . . . . . . . . . . . 19

Grow the Core . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Be the Preferred Commercial Platform . . . . . . 29

De-Bottleneck Our Infrastructure and

Digitize the Enterprise . . . . . . . . . . . . . . . . . . . . 36 Strengthen our Customer-

Centric Culture . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Interview with The Vice Presidents of

Coca-Cola FEMSA's Sustainability Committee . . 45

Sustainability Governance . . . . . . . . . . . . . . . . . 50

Water Stewardship . . . . . . . . . . . . . . . . . . . . . . . 57

Packaging and Circular Economy . . . . . . . . . . . 67

Climate Action . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Product Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . 80

Sustainable Sourcing . . . . . . . . . . . . . . . . . . . . . 85

Integral Employee Well-being . . . . . . . . . . . . . 91

Community Development . . . . . . . . . . . . . . . . 104 Human Rights, Diversity, Equity

and Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Robust Corporate Governance Framework . . 114

Global Compliance and Integrity Program . . . 125

Comprehensive Ethical System . . . . . . . . . . . . 127

Strategic Public Policy Engagement . . . . . . . . 131

Environmental Management System . . . . . . . 132

Risk Management . . . . . . . . . . . . . . . . . . . . . . . 133

Fortifying Our Digital Resilience . . . . . . . . . . . 145

Financial Summary . . . . . . . . . . . . . . . . . . . . . . 148

Management Discussion and Analysis . . . . . . 150

Performance in Detail . . . . . . . . . . . . . . . . . . . . 154

Volume Breakdown . . . . . . . . . . . . . . . . . . . . . . 163

Our Sustainability Priorities . . . . . . . . . . . . . . . 165

Capital and Company Engagement . . . . . . . . . 170

TCFD Disclosure Report . . . . . . . . . . . . . . . . . . 172

SASB Content Index . . . . . . . . . . . . . . . . . . . . . 178

GRI Content Index . . . . . . . . . . . . . . . . . . . . . . 180

Independent Limited Assurance Report . . . . 188

Shareholder and Analyst Information . . . . . . 194

About Our Integrated Report . . . . . . . . . . . . . . 195

IAN CRAIG

Dear fellow STAKEHOLDERS

CHAIRMAN'S AND CEO'S LETTER TO STAKEHOLDERS

JOSÉ ANTONIO FERNÁNDEZ CARBAJAL

CHAIRMAN OF THE BOARD

The results we achieved in 2024 mark the second chapter of our transformation as we advanced in the implementation of our sustain-able long-term growth model and in shaping an adaptable, future-ready company.

CHIEF EXECUTIVE

OFFICER

Coca-Cola FEMSA continues to position itself as a driving force for growth within the Coca-Cola System. In 2024, Coca-Cola FEMSA accounted for more than 40% of the system's total volume growth. Our enhanced cooperation framework and strong relationship with The Coca-Cola Company have been instrumental in driving growth, and we are encouraged to see how our collaboration on powerful marketing campaigns and relentless commercial execution continues to strengthen our core business across markets.

At the same time, during the year we were faced with important external challenges. Severe flooding in Brazil disrupted operations in Rio Grande do Sul, impacting our plant in Porto Alegre. Similarly, in Mexico, Hurricane John struck the state of Guerrero while the region was still recovering from the aftermath of Hurricane Otis. Yet, our ability to adapt and respond to these challenges ensured business continuity while providing critical support to affected employees, their families, and sur-rounding communities. Our response reinforces our conviction that Coca-Cola FEMSA is not only built for growth, but also adaptable to navigate complex environments.

None of this would be possible without the ded-ication and passion of our employees. Their un-wavering commitment to excellence, adaptabil-ity in the face of challenges, and relentless drive to serve our customers, partners, consumers, and communities continue to be the foundation of our success. We want to personally thank each member of the Coca-Cola FEMSA team for their hard work and contributions.

During 2024 our six strategic pillars remained unchanged: (i) Grow the Core, (ii) Be the Pre-ferred Commercial Platform, (iii) Strategic M&A, (iv) De-bottleneck Our Infrastructure and Digi-tize the Enterprise, (v) Strengthen Our Custom-er-Centric Culture, and (vi) Foster a Sustainable

Future. We are pleased to share our progress across these key priorities.

Grow the Core

We are fortunate to participate in a vibrant beverage industry within a growing region. We design all of our market plans under our long-term sustainable growth strategy, which seeks to capture the full potential of our core business segments while increasing our relative scale within the industry.

Coca-Cola Zero Sugar continues to be one of our most exciting growth stories, achieving 31% volume growth in 2024, with Brazil leading at an outstanding 56% year-on-year growth, establishing itself as the Coca-Cola System's fastest-growing market for Coca-Cola Zero Sugar worldwide during 2024. In Mexico, we have found the right set of initiatives to accelerate this zero-calorie alternative, which showed encour-aging results with an 8% increase in 2024.

We have further strengthened our profitable non-carbonated beverages portfolio to meet evolving consumer preferences. In Mexico, an ambitious portfolio revamp in still beverages drove 8% growth during the year, led by a re-markable 67%, 39%, and 12% increase in teas, Powerade, and Monster, respectively. In Brazil, Monster and Powerade also delivered impres-sive performance, with volumes growing 21% and 12%, respectively.

To sustain this growth, we are fine-tuning our portfolio architecture across markets to capture emerging opportunities. In Mexico, our focus on adjusting our price-pack architecture supported a 12% year-on-year increase in multi-serve one-way presentations of brand Coca-Cola. In Brazil, our profitable single-serve mix has been a key growth driver, reaching 26% of our mix by the end of 2024. In Colombia, we adapted to provide greater affordability, driving a 2% year-on-year increase in multi-serve volumes. In Argentina, we are enhancing our affordability initiatives while expanding single-serve options to capital-ize on the expected market turnaround.

Expanding our customer base is also critical to unlocking new opportunities within our Grow the Core strategic pillar. In Guatemala, efforts to serve consumers seeking convenience and affordability have driven a 12% year-on-year increase in our total customer base. In Mexico, we are leveraging big data analytics to identify untapped market potential, adding more than 150 thousand clients over the past 18 months.

Be the Preferred Commercial Platform: Taking Juntos+ to the Next Level

The retail landscape continues evolving. Digital adoption accelerated in Latin America while our customers are pressured to allocate their limited time and attention to serving their clients and suppliers. These factors reinforced the need for a reliable delivery partner and a user-friendly order-taking solution. To address this shift, we leveraged our right-to-win to continue building our Juntos+ omnichannel platform that integrates our physical capabilities with digital connectivity, seamlessly linking customers, and partners- driving sustainable growth, and reinforcing Coca-Cola FEMSA's position as the preferred commercial platform.

In 2024, we continued to take Juntos+ to the next level with the deployment of advanced AI capabilities. We expanded to reach a total of seven markets, surpassing 1.3 million monthly active users, which now accounts for 60% of our customer base. The integration of AI-driven capabilities, predictive analytics, and loyalty solutions now empower customers and sales teams alike. The rapid expansion of Premia Jun-tos+, our loyalty program, reflects the growing engagement within our commercial ecosystem. Enrollment grew fourfold this year, exceed-ing 1.1 million customers, underscoring the strength of our value proposition.

Moreover, this year we launched Juntos+ Ad-visor, our AI-powered sales enablement tool, which is transforming the way our salesforce operates. In Brazil, where 40% of our sales representatives now use it, we have seen signif-icant gains in visit effectiveness and combined coverages, among other metrics, which we know have direct positive results in our market position, paving the way for a full rollout across Mexico and the rest of Brazil in 2025.

Coca-Cola En Tu Hogar, our D2C platform, is re- defining convenience by offering seamless home delivery and expanding our presence in key markets. With a focus on enhancing customer experience, digital transactions now represent 26% of total revenue on our D2C platform.

At the same time, our multi-category strategy is unlocking further growth by complement-ing a portfolio that includes spirits, snacks, and personal care products. This year, our multi-category sales-excluding beer-sur-passed US$228 million, accounting for over 1.5% of our total sales and marking a key mile-stone on our path toward our goal of reaching 5% in the coming years.

De-Bottlenecking Our Infrastructure and Digitizing the Enterprise

In 2024, we made significant strides in en-hancing our production capacity, logistics, and operational efficiency to support our expand-ing business. We installed seven bottling lines across strategic locations, increasing total capacity by 3.5% year-on-year. Three of these lines started up in Mexico, expanding capacity in the country by 4%. In Brazil, a new bottling line added 2% to local production capacity, while in Colombia, a returnable glass bottle line contributed 4%. Additionally, two new lines in Guatemala increased installed capacity in the country by 20%.

In warehousing, we inaugurated 4 new distribu-tion centers in 2024, representing a 5% expan-sion in distribution capacity compared to 2023. In parallel, we expanded capacity by optimizing warehouse operations, streamlining inventory management, and strengthening last-mile dis-tribution capabilities.

Strengthen Our Customer-Centric Culture In 2024, we took significant steps to embed our 10 Coca-Cola FEMSA Principles across the organization, ensuring they actively guide our culture and ways of working. From our frontline staff to our senior leadership team, we have continued to promote a growth mindset by en-couraging adaptability, continuous learning, and innovation throughout our operations.

Creating a workplace where employees feel valued and empowered remains a key priority. By fostering an environment of psychological safety, we ensure that all voices are heard, promoting respect, collaboration, and inclusion at every level. Our commitment to multiplier leadership has also expanded, with targeted initiatives designed to equip our leaders with the tools to not only lead effectively, but also empower and elevate those around them.

Foster a Sustainable Future

Our commitment to sustainability is deeply embedded in our growth strategy, shaping our actions to ensure a long-term positive impact across our value chain. In 2024, we complet-ed our double materiality assessment and updated our environmental and social goals, strengthening sustainability governance across our organization.

Throughout the year, we advanced key initia-tives that generate long-term impact across our operations and communities:

• • Water Stewardship: In August 2024 we achieved our intermediate target of a 1.36 water use ratio, a 14% improvement since 2018, setting a new benchmark for efficiency in the beverage industry.

• • Packaging & Circular Economy: 94% of our bottling plants have now reached zero-waste status. We started operations of PLANETA, our new food-grade PET recycling plant in Mexico, and expanded SUSTENTAPET to reach 43 PET collection centers across our geographies.

• • Climate Action: By starting the installation of state-of-the-art electric boilers powered entirely by solar panels, our Celaya and Vera- cruz sites in Mexico will become the first ze-ro-emissions sites in the Coca-Cola System. Across our operations, 84% of our electricity consumption came from renewable sources.

• • Sustainable Sourcing: 55% of our total annual procurement spend was assessed through the EcoVadis sustainability

In 2024, we made significant strides in enhancing our production capacity, logistics, and operational efficiency to support our expanding business.

As we look ahead, we are confident in the opportunities that our industry and region offer for continuous growth.

methodology, and 93% of our total procurement spend was directed toward local suppliers in 2024.

• • Community Development: Through the MARRCO framework, we have 19 active Community Engagement Plans, and 81% of our community development programs were focused on water, sanitation, and hygiene (WASH) initiatives.

• • Female Leadership: 31.8% of leadership positions are now held by women, reflecting our commitment to empowering female lead-ership within the organization.

Financial and Operating Highlights

We entered 2024 with a clear objective: to re-inforce our position as an industry leader while continuing to innovate, invest, and expand our capabilities. Through disciplined execution and operational excellence, we delivered another year of record results as part of our long-term sustainable growth plan.

Our 4.2 billion unit cases sold reflect a 4.4% volume increase, driven by growth across most markets, including robust performance in Mexico, Brazil, and Guatemala. Thanks to our portfolio initiatives, customer base expan-

• sion, digitalization, and point-of-sale execu-

• tion, we continued to strengthen our footprint in key territories.

For the year, total revenues increased by 14.2% to Ps. 279.8 billion. Our operating income post-ed a solid 17.4% year-on-year increase, reach-ing Ps. 40.1 billion. Adjusted EBITDA increased by 21.1% to Ps. 56.2 billion. Controlling net income increased 21.5% to reach Ps. 23.7 billion, achieving earnings per share of Ps. 1.41, Ps. 11.30 per unit and Ps. 112.95 per ADS.

To support these results, we invested a re- cord CAPEX of Ps. 25.3 billion, representing 9% of revenues, while our return on invested capital improved for the seventh consecutive year. These investments enable us to continue adding the necessary capacity to support our long-term growth ambitions. Finally, in our sav-ings initiatives, our technical and supply chain team surpassed cost-to-make, cost-to-serve, and primary freight savings targets for the year, delivering US$71.5 million in savings while identifying additional efficiency opportunities for 2025.

Looking Ahead

As we look ahead, we are confident in the opportunities that our industry and region offer for continuous growth. This is one of the most dynamic regions for consumer goods world-wide, with rising incomes, expanding house-holds, per-capita opportunities, and evolving consumer behaviors shaping a strong founda-tion for the future.

Coca-Cola FEMSA is well positioned to cap-ture this growth by continuing to invest in our markets, infrastructure, and digital capabilities, fully aligned with our long-term sustainable growth strategy. To this end, we will continue executing our multi-year program to expand capacity and capture the many opportunities ahead. In 2025, we plan to install nine new bottling lines: one in Mexico, two in Guatemala, one in Costa Rica, one in Colombia, and four in Brazil. In digital, we plan to continue leveraging our advanced AI capabilities by completing the rollout of Juntos+ version 4.0, and by rolling out Juntos+ Advisor, our salesforce tool, which has proven to be a game-changer in the way our salesforce operates.

At the same time, by strengthening the integra-tion of sustainability at the core of these efforts, we are ensuring that our long-term growth remains responsible, resilient, and beneficial to all stakeholders.

On behalf of our employees, we appreciate your continued trust in our ability to create economic value while fostering social and environmental well-being for all our stakeholders.

JOSÉ ANTONIO FERNÁNDEZ CARBAJAL

CHAIRMAN OF THE BOARD

IAN CRAIG

CHIEF EXECUTIVE OFFICER

Earnings Per Share

FINANCIAL HIGHLIGHTS

Controlling Interest

Capital Expenditures

Long-Term Bank Loans and Notes Payable

Total Assets

Controlling Interest Net Income

Income from Operations Total Revenues

	2024 USD1	2024 MXN	2023 MXN	% CHANGE
Sales Volume (million unit cases)	4,225	4,225	4,048	4.4%
Total Revenues	13,416	279,793	245,088	14.2%
Income from Operations	1,925	40,141	34,180	17.4%
Controlling Interest Net Income	1,138	23,729	19,536	21.5%
Total Assets	14,767	307,986	273,520	12.6%
Long-Term Bank Loans and Notes Payable	3,375	70,383	65,074	8.2%
Controlling Interest	6,877	143,428	127,025	12.9%
Capital Expenditures	1,410	29,416	21,396	37.5%
Earnings Per Share2	0.07	1.41	1.16	21.6%

Millions of Mexican pesos and U.S. dollars as of December 31, 2024 (except volume and per share data). Results under International Financial Reporting Standards.

• 1. U.S. dollar figures are converted from Mexican pesos using the exchange rate for Mexican pesos published by the U.S. Federal Reserve Board on December 31, 2024, which exchange rate was Ps. 20.8557 to U.S. $1.00.

• 2. Based on 16,806.7 million outstanding ordinary shares as of December 31, 2024 and 2023.

SUSTAINABILITY HIGHLIGHTS

OUR STRENGTH COMES FROM STAYING TRUE TO WHAT WE BELIEVE

Living Our Principles When It Matters Most

At Coca-Cola FEMSA, our Principles are more than words. They shape how we act-every day, in good times and in diffi-cult ones. Over the past year, we have been reminded that our strength comes from staying true to what we believe: to value our people, to act swiftly, and to always do the right thing. These Principles guided us through some of the most challenging mo-ments we have faced, helping us respond with resolve.

Between the end of 2023 and 2024, two of our territories were struck by natural disasters. In Mexico, Hurricane Otis made landfall in Acapulco, Guerrero, with historic intensity, followed months later by Hurri-cane John, which again impacted the area and surrounding regions still in recovery. Meanwhile, in Brazil, severe flooding in Porto Alegre disrupted lives and temporarily halted operations at our plant in Rio Grande do Sul.

These events tested our resilience-but they also showed the difference we can make when we act with purpose and unity.

Putting Our People First

When these crises hit, our first priority is to locate our employees, confirm their safety, and provide immediate support. In both Mexico and Brazil, we acted quickly-mo-bilizing local leaders, leveraging our crisis management systems, and personally reaching out to those we could not immedi-ately contact. In Porto Alegre, our Integral Protection team visited more than 60 em-ployees in their homes to assess their needs and offer assistance. In Mexico, through the John Emergency Fund, we supported 684 employees with resources to recover their homes and belongings. In both locations, we maintained income flows, released sal-ary advances, and provided food and health assistance. These actions reflect our belief that when we care for our people, we create the foundation for long-term recovery.

Standing with Our Communities Alongside our neighbors, we stepped up to help the communities that have always stood by us. After Hurricane Otis, we deployed two water treatment vehicles, delivered more than 120,000 liters of bottled water, and distributed food and hygiene kits to impacted families. When Hurricane John followed, we responded again-delivering 83,500 liters of drinking water, food supplies, and thousands of emergency kits in the states of Guerrero and neighboring Oaxaca.

In Brazil, we launched the Rio Grande do Sul Emergency Fund, donating more than 266,000 liters of clean water to support 133,000 people affected by the floods. We also collaborated with local organizations to support the recovery of more than 1,000 small businesses, helping communities get back on their feet.

Rebuilding with Resilience and Purpose We are investing to rebuild our facilities with stronger, climate-ready systems de-signed to better withstand environmental challenges. The lessons learned from these experiences are also helping us strength-en infrastructure and resilience across our operations in other geographies.

Beyond fully restoring our operations, our efforts are focused on protecting more than 4,500 jobs and contributing to the meaning-ful reactivation of the local economy.

Rooted in Community, Built for Resilience None of our actions would have been possible without the partnership of The Coca-Cola Company, The Coca-Cola Foundation, FEMSA, FEMSA Foundation, and the thousands of employees who donated and stood by their colleagues and communities in a time of need.

When communities hurt, we feel it too-be-cause we are part of them. The road to re-covery is never easy, but we face it togeth-er-guided by our Principles and committed to building a future that is more resilient than ever.

 Learn more about our response in Rio Grande do Sul and Acapulco.