FEMSA Announces Fourth Quarter and Full Year 2021 Results

Monterrey, Mexico, February 28, 2022 - Fomento Económico Mexicano, S.A.B. de C.V. ("FEMSA") (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the fourth quarter and full year of 2021.

HIGHLIGHTS

· Our results during 2020 were significantly impacted by the COVID-19 pandemic and the related changes in consumer mobility and behavior across markets. As we look at our 4Q21 results, the comparison base of 4Q20 is only a partial benchmark. Therefore, to facilitate the reader's assessment of our business units' performance in 4Q21, we provide the following table that includes variations versus 4Q19 as well.

FINANCIAL SUMMARY FOR THE FOURTH QUARTER AND FULL YEAR 2021

Information includes figures in millions of Ps. and variations as change vs. respective period

Revenues Gross Profit Income
from Operations
Same-Store Sales
4Q21 % var vs.
4Q20
% var vs.
4Q19
4Q21 % var vs.
4Q20
% var vs.
4Q19
4Q21 % var vs.
4Q20
% var vs.
4Q19
4Q21 % var vs.
4Q19
FEMSA CONSOLIDATED 151,542 16.3 % 14.6 % 59,912 15.18 % 15.2 % 15,509 18.0 % 13.9 %
FEMSA COMERCIO
Proximity Division 53,510 14.4 % 11.6 % 24,675 18.3 % 17.0 % 6,766 37.9 % 15.1 % 12.5 % 4.4 %
Health Division 18,581 7.3 % 23.8 % 5,738 7.2 % 20.4 % 928 10.1 % 41.0 % 5.7 % 14.7 %
Fuel Division (1) 11,065 30.2 % (9.6 %) 1,562 20.9 % 3.2 % 435 31.4 % (17.3 %) 23.3 % (14.7 %)
LOGISTICS & DISTRIBUTION 14,603 N/A N/A 3,187 N/A N/A 578 N/A N/A
COCA-COLA FEMSA 53,273 8.5 % 3.0 % 23,985 9.3 % 4.6 % 7,778 7.6 % 22.0 %

(1) variations vs. comparable results

Daniel Rodríguez Cofré, FEMSA's CEO, commented:

"We closed the year on a strong note, with most of our operations delivering double-digit revenue and operating income growth relative to the comparable period of last year, but also to pre-pandemic levels. I believe there are a couple of positive messages from this performance. First, as the health situation continues to improve across markets, our consumers are increasingly returning to their normal habits and patterns, and we are fine-tuning our strategy and value propositions accordingly to remain ahead of the curve. Second, the hard work our teams carried out during the pandemic to reduce costs and increase efficiency, combined with positive operating leverage driven by sales growth, creates a powerful combination. We are seeing this in the form of material gross and operating margin expansion at several of our operations.

We also made significant progress on our retail Digital platforms, building and strengthening a dedicated organization, attracting the right talent, and launching OXXO Premia and Spin by OXXO in Mexico with encouraging early results. On the strategic and capital deployment front, in 2021 we made significant progress building our national specialized distribution platform across the United States, increasing our revenues in this operation by 46% during the year and more than 100% since our entry into the industry in mid-2020. And on the corporate governance front, as you probably read a few days ago, we listened to the market and are implementing a series of changes to our practices regarding the accountability, composition and functioning of our Board of Directors, moving FEMSA forward and already being well received.

I want to recognize our more than 320,000 colleagues across the continent, the best team in the business, because they make our company better, day after day, and year after year. Looking ahead, we have great momentum as the positive business trends extend into the new year. Every one of our operations is well positioned to drive growth, and we are excited by the opportunities and optionality available to us."

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1

QUARTERLY RESULTS

Results are compared to the same period of previous year

femsa consolidateD

FEMSA CONSOLIDATED

4Q21 Financial Summary

(Millions of Ps.)

4Q21 4Q20 Var. Org.
Revenues 151,542 130,329 16.3 % 12.9 %
Income from Operations 15,509 13,145 18.0 % 17.0 %
Income from Operations Margin (%) 10.2 10.1 10 bps
Operative Cash Flow (EBITDA) 23,446 20,938 12.0 % 11.2 %
Operative Cash Flow (EBITDA) Margin (%) 15.5 16.1 -60 bps
Net Income 10,100 730 N.S.

CONSOLIDATED NET DEBT

(Millions of Ps.)

As of December 31, 2021 Ps. US$ 3
Cash 97,407 4,748
Short-term debt 4,640 226
Long-term debt 4 179,857 8,768
Net debt 4 87,090 4,245

Total revenues increased 16.3% in 4Q21 compared to 4Q20, reflecting growth across our business units coupled with an undemanding comparison base for the quarter. On an organic1 basis, total revenues increased 12.9%.

Gross profit increased 15.2%. Gross margin decreased 40 basis points, mainly driven by a contraction at FEMSA Comercio's Fuel Division, partially offset by an expansion at FEMSA Comercio's Proximity Division and Coca-Cola FEMSA.

Income from operations increased 18.0%. On an organic1 basis, income from operations increased 17.0%. Consolidated operating margin increased 10 basis points to 10.2% of total revenues, reflecting margin expansion at FEMSA Comercio's Proximity and Health Divisions, partially offset by a margin contraction at Coca-Cola FEMSA.

Our effective income tax rate was 32.2% in 4Q21 compared to 58.9% in 4Q20, which reflected unfavorable deferred tax adjustments in Coca-Cola FEMSA that were magnified by a decrease in our consolidated pre-tax income, during that quarter. Our income tax was Ps. 4,094 million in 4Q21.

Net consolidated income increased significantly to Ps. 10,100 million, driven by: i) higher income from operations; ii) a non-cash foreign exchange gain related to FEMSA's U.S. dollar-denominated cash position as impacted by the depreciation of the Mexican peso; iii) a decrease in net interest expenses; and iv) an increase in our participation in associates' results, which mainly reflects the improved results of our investment in Heineken relative to 4Q20. This was partially offset by a decrease in non-operating income which reflects a demanding comparison base that included dividends received from our investment in JRD.

Net majority income was Ps. 1.88 per FEMSA Unit2 and US$0.92 per FEMSA ADS.

Capital expenditures amounted to Ps. 8,827 million, reflecting the reactivation of ongoing investment activities at most of our business units.

1 Excludes the effects of significant mergers and acquisitions in the last twelve months.

2 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of December 31, 2021 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

3 The exchange rate published by the Federal Reserve Bank of New York for December 30, 2021 was 20.5140 MXN per USD.

4 Includes the effect of derivative financial instruments on long-term debt. Excludes long-term leases.

February 28, 2022 2

FEMSA COMERCIO - Proximity DIVISION

FEMSA COMERCIO - PROXIMITY DIVISION

4Q21 Financial Summary

(Millions of Ps. except same-stores sales)

4Q21 4Q20 Var.
Same-store sales (thousands of Ps.) 829 737 12.5 %
Revenues 53,510 46,769 14.4 %
Income from Operations 6,766 4,907 37.9 %
Income from Operations Margin (%) 12.6 10.5 210 bps
Operative Cash Flow (EBITDA) 9,647 7,688 25.5 %
Operative Cash Flow (EBITDA) Margin (%) 18.0 16.4 160 bps

Total revenues increased 14.4% in 4Q21 compared to 4Q20, reflecting a 12.5% average same-store sales increase, driven by a 10.4% growth in average customer ticket and an increase of 1.9% in store traffic. These figures reflect an undemanding comparison base, coupled with strong performance of the gathering category, including beer. During the quarter, OXXO's store base expanded by 434 units to reach 865 total net new store openings for the last twelve months. As of December 31, 2021, FEMSA Comercio's Proximity Division had a total of 20,431 OXXO stores.

Gross profit reached 46.1% of total revenues, reflecting more dynamic commercial income activity and promotional programs with our key supplier partners.

Income from operations amounted to 12.6% of total revenues, driven by higher operating leverage. Operating expenses increased 12.2% to Ps. 17,909 million, below revenues, reflecting enduring expense efficiencies and tight expense control, partially offset by our continuing initiative to gradually shift from commission-based store teams to employee-based teams and an demanding comparison base in 4Q20 that included extraordinary personnel expenses in connection with the COVID-19 pandemic.

February 28, 2022 3

FEMSA COMERCIO - HEALTH DIVISION

FEMSA COMERCIO - HEALTH DIVISION

4Q21 Financial Summary

(Millions of Ps. except same-stores sales)

4Q21 4Q20 Var.
Same-store sales (thousands of Ps.) 1,387 1,313 5.7 %
Revenues 18,581 17,319 7.3 %
Income from Operations 928 843 10.1 %
Income from Operations Margin (%) 5.0 4.9 10 bps
Operative Cash Flow (EBITDA) 1,810 1,773 2.1 %
Operative Cash Flow (EBITDA) Margin (%) 9.7 10.2 -50 bps

Total revenues increased 7.3% in 4Q21 compared to 4Q20, mainly reflecting higher consumption in Chile coupled with positive trends in our Mexican and Colombian operations, partially offset by a negative currency translation effect related to the depreciation of the Chilean and Colombian pesos relative to the Mexican peso. During the quarter, the Health Division's store base expanded by 112 units reaching a total of 3,652 points of sale across its territories as of December 31, 2021. This figure reflects the addition of 284 net new store openings for the last twelve months. Same-store sales for drugstores increased an average of 5.7%, reflecting the revenue drivers described above. On a currency-neutral1 basis, total revenues increased 14.3% while same-store sales increased by 10.3%.

Gross profit represented 30.9% of total revenues, reflecting: i) higher institutional sales in our operations in Chile and Colombia; and ii) increased promotional activities in our operations in South America. These were offset by improved efficiency and more effective collaboration and execution with key supplier partners in Mexico.

Income from operations amounted to 5.0% of total revenues. Operating expenses increased 6.7% to Ps. 4,810 million, below revenue growth, reflecting tight expense control and efficiency gains across our operations.

1 Calculated by translating comparable period figures at the foreign currency exchange rates used in the current period.

February 28, 2022 4

FEMSA COMERCIO - FUEL DIVISION

FEMSA COMERCIO - FUEL DIVISION

4Q21 Financial Summary

(Millions of Ps. except same-stations sales)

4Q21 Comparable
4Q20(1)
Var.* Reported
4Q20
Same-station sales (thousands of Ps.) 6,339 5,140 23.3 % 5,140
Revenues 11,065 8,497 30.2 % 8,485
Income from Operations 435 331 31.4 % 212
Income from Operations Margin (%) 3.9 3.9 0 bps 2.5
Operative Cash Flow (EBITDA) 702 546 28.6 % 428
Operative Cash Flow (EBITDA) Margin (%) 6.3 6.4 -10 bps 5.0
(1) Includes wholesale and distribution operations
*vs. Comparable Results

Total revenues increased 30.2% in 4Q21 compared to 4Q20, reflecting a 23.3% average same-station sales increase, driven by an 8.3% growth in the average volume and a 13.8% increase in the average price per liter. This reflects an undemanding comparison base which was affected by reduced vehicle mobility in connection with the COVID-19 pandemic. During the quarter, the Fuel Division added 1 station, reaching a total of 567 points of sale as of December 31, 2021. This figure reflects the addition of 9 total net new stations for the last twelve months.

Gross profit reached 14.1% of total revenues.

Income from operations amounted to 3.9% of total revenues. Operating expenses increased 17.3% to Ps. 1,127 million, below revenues, reflecting tight expense control and positive operating leverage.

February 28, 2022 5

Logistics and Distribution

LOGISTICS AND DISTRIBUTION

4Q21 Financial Summary

(Millions of Ps.)

4Q21
Revenues 14,603
Income from Operations 578
Income from Operations Margin (%) 4.0
Operative Cash Flow (EBITDA) 1,542
Operative Cash Flow (EBITDA) Margin (%) 10.6

Total revenues amounted to Ps. 14,603 million, reflecting stable demand dynamics in our operations in Latin America, coupled with a gradual recovery of some end-user segments in the United States.

Gross profit reached 21.8% of total revenues, reflecting favorable sales mix and efficiencies in our Latin American operations.

Income from operations represented 4.0% of total revenues. Operating expenses totaled Ps. 2,609 million, reflecting high operating leverage driven by tight expense control and efficiencies across markets.

February 28, 2022 6

results FOR THE FULL YEAR OF 2021

Results are compared to the same period of previous year

femsa consolidated

FEMSA CONSOLIDATED
Full Year Financial Summary
(Millions of Ps.)
2021 2020 Var. Org.
Revenues 556,261 492,966 12.8 % 9.4 %
Income from Operations 51,993 41,503 25.3 % 23.7 %
Income from Operations Margin (%) 9.3 8.4 90 bps
Operative Cash Flow (EBITDA) 82,422 71,973 14.5 % 13.0 %
Operative Cash Flow (EBITDA) Margin (%) 14.8 14.6 20 bps
Net Income 37,678 3,756 N.S.

(1) Includes wholesale and distribution operations

Total revenues increased 12.8%. On an organic basis,1 total revenues increased 9.4% reflecting growth across all operations.

Gross profit increased 12.7%. Gross margin decreased 10 basis points to 38.4% of total revenues, reflecting gross margin expansion at Coca-Cola FEMSA and FEMSA Comercio's Proximity Division, offset by a contraction at FEMSA Comercio's Health and Fuel Divisions.

Income from operations increased 25.3%. On an organic basis,1 income from operations increased 23.7%. Our consolidated operating margin increased 90 basis points to 9.3% of total revenues, reflecting margin expansion at Coca-Cola FEMSA and FEMSA Comercio's Proximity and Health Division, partially offset by a contraction at FEMSA Comercio's Fuel Division.

Net consolidated income increased to Ps. 37,678 million, reflecting: i) higher income from operations at all our business units; ii) higher non-operating income; and iii) an increase in our participation in associates' results, which mainly reflects the results of our investment in Heineken, including an exceptional gain recorded by Heineken during the 3Q21, reflecting a fair value adjustment from one of their investments.

Net majority income per FEMSA Unit2 was Ps.7.96 (US$3.88 per ADS).

Capital expenditures amounted to Ps. 24,055 million, reflecting the reactivation of ongoing investment activities at most of our business units.

1 Excludes the effects of significant mergers and acquisitions in the last twelve months.

2 FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of December 30, 2021 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

February 28, 2022 7

femsa comercio - PROXIMITY division

FEMSA COMERCIO - PROXIMITY DIVISION
Full Year Financial Summary
(Millions of Ps. except same-stores sales)
2021 2020 Var.
Same-store sales (thousands of Ps.) 778 722 7.7 %
Revenues 198,586 181,277 9.5 %
Income from Operations 18,387 12,020 53.0 %
Income from Operations Margin (%) 9.3 6.6 270 bps
Operative Cash Flow (EBITDA) 29,704 23,333 27.3 %
Operative Cash Flow (EBITDA) Margin (%) 15.0 12.9 210 bps

(1) Includes wholesale and distribution operations

Total revenues increased 9.5%. OXXO's same-store sales increased an average of 7.7%, driven by a 10.2% increase in average customer ticket, partially offset by a 2.2% decrease in store traffic.

Gross profit reached 42.4% of total revenues.

Income from operations amounted to 9.3% of total revenues, reflecting an undemanding comparison base in 2020, driven by the COVID-19 pandemic. Operating expenses increased 5.7% to Ps. 65,809 million.

femsa comercio - health division

FEMSA COMERCIO - HEALTH DIVISION
Full Year Financial Summary
(Millions of Ps. except same-stores sales)
2021 2020 Var.
Same-store sales (thousands of Ps.) 1,382 1,262 9.5 %
Revenues 73,027 65,172 12.1 %
Income from Operations 3,762 2,656 41.6 %
Income from Operations Margin (%) 5.2 4.1 110 bps
Operative Cash Flow (EBITDA) 7,228 6,227 16.1 %
Operative Cash Flow (EBITDA) Margin (%) 9.9 9.6 30 bps

(1) Includes wholesale and distribution operations

Total revenues increased by 12.1%. Same-store sales for drugstores increased by an average of 9.5%, reflecting positive trends in our Mexican, Chilean and Colombian operations, partially offset by a still challenging economic environment in Ecuador, in connection with the COVID-19 pandemic.

Gross profit reached 29.8% of total revenues.

Income from operations amounted to 5.2% of total revenues. Operating expenses increased 6.2% to Ps. 17,974 million.

February 28, 2022 8

FEMSA COMERCIO - FUEL DIVISION

FEMSA COMERCIO - FUEL DIVISION
Full Year Financial Summary
(Millions of Ps. except same-stations sales)
2021 Comparable
2020(1)
Var.* Reported
2020
Same-station sales (thousands of Ps.) 5,862 5,194 12.9 % 5,194
Revenues 39,922 34,322 16.3 % 34,292
Income from Operations 1,416 1,253 13.0 % 813
Income from Operations Margin (%) 3.5 3.7 -20 bps 2.4
Operative Cash Flow (EBITDA) 2,402 2,140 12.2 % 1,700
Operative Cash Flow (EBITDA) Margin (%) 6.0 6.2 -20 bps 5.0

(1) Includes wholesale and distribution operations

*vs. Comparable Results

Total revenues increased 16.3%. Same-station sales increased an average of 12.9%, reflecting a 12.0% increase in the average price per liter, partially offset by a 0.7% increase in average volume.

Gross profit reached 13.2% of total revenues.

Income from operations amounted to 3.5% of total revenues. Operating expenses increased 7.7% to Ps. 3,853 million.

Logistics and Distribution

LOGISTICS AND DISTRIBUTION
Full Year Financial Summary
(Millions of Ps.)
2021
Revenues 48,412
Income from Operations 2,132
Income from Operations Margin (%) 4.4
Operative Cash Flow (EBITDA) 4,961
Operative Cash Flow (EBITDA) Margin (%) 10.2

Total revenues amounted to Ps. 48,412 million, reflecting positive demand dynamics in our operations in Latin America, coupled with gradual recovery trends in the United States. These were partially offset by the negative currency translation effect from the depreciation of the Brazilian Real relative to the Mexican peso.

Gross profit reached 21.8% of total revenues, reflecting favorable sales mix and efficiencies in our Latin American operations.

Income from operations represented 4.4% of total revenues. Operating expenses totaled Ps. 8,438 million, reflecting high operating leverage driven by tight expense control and efficiencies across markets.

February 28, 2022 9

coca-cola femsa

Coca-Cola FEMSA's financial results and discussion thereof are incorporated by reference from Coca-Cola FEMSA's press release, which is attached to this press release or may be accessed by visiting http://www.coca-colafemsa.com.

RECENT DEVELOPMENTS

· Starting in January 2022, FEMSA evolved and simplified its corporate structure to bring its key business units closer to FEMSA's senior leadership. As a result, the following business units now report directly to FEMSA's CEO:
o FEMSA - Proximity Division, including OXXO Mexico, OXXO International, OXXO Gas, and other related retail operations.
o FEMSA - Health Division, including all our drugstore and health-related operations in Mexico and South America.
o FEMSA - Digital Division, including Spin by OXXO, OXXO Premia and other related initiatives.
o FEMSA Negocios Estratégicos, which includes our Logistics & Distribution business, will continue to report directly to FEMSA's CEO.

This corporate structure aligns with FEMSA's priorities and business environment and will not modify our current disclosure structure.

· Since October 2021, in addition to previously disclosed transactions, FEMSA through Envoy Solutions completed the following acquisitions in the United States, representing aggregated annual revenues of approximately US$90 million:
o Super Chemical Corporation North Woods Manufacturing, Inc.
o Valley Janitor Supply Co. Inc.
o Swish White River Ltd.
o General Chemical & Supply, Inc.
o Weiss Bros of Hagerstown, Inc.
o Bio-Shine, Inc.

CONFERENCE CALL INFORMATION:

Our Fourth Quarter and Full Year 2021 Conference Call will be held on: Monday, February 28, 2022, 9:30 AM Eastern Time (8:30 AM Mexico City Time). To participate in the conference call, please dial: Domestic US: (800) 289 0720; International: +1 (323) 701 0160; Conference Id: 6036296. The conference call will be webcast live through streaming audio. For details please visit https://femsa.gcs-web.com/.

If you are unable to participate live, the conference call audio will be available on Quarterly Results | FEMSA (gcs-web.com).

February 28, 2022 10

FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and OXXO Gas, a chain of retail service stations. FEMSA's Digital Division includes Spin by OXXO and OXXO Premia, among other loyalty and digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume; and in the beer industry, as the second largest shareholder of Heineken, one of the world's leading brewers with operations in over 70 countries. FEMSA also participates in the logistics and distribution industry through its Strategic Business Unit, which additionally provides point-of-sale refrigeration and plastic solutions to its business units and third-party clients. Across its business units, FEMSA has more than 320,000 employees in 13 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index, among other indexes that evaluate its sustainability performance.

The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon buying rate for Mexican pesos as published by the Federal Reserve Bank of New York on December 30, 2021, which was 20.5140 Mexican pesos per US dollar.

FORWARD-LOOKING STATEMENTS

This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

eight pages of tables and Coca-Cola FEMSA's press release to follow

February 28, 2022 11

FEMSA

Consolidated Income Statement

Millions of Pesos

For the fourth quarter of: For the twelve months of:
2021 % of rev. 2020 % of rev. % Var. % Org.(A) 2021 % of rev. 2020 % of rev. % Var. % Org.(A)
Total revenues 151,542 100.0 130,329 100.0 16.3 12.9 556,261 100.0 492,966 100.0 12.8 9.4
Cost of sales 91,630 60.5 78,312 60.1 17.0 342,548 61.6 303,313 61.5 12.9
Gross profit 59,912 39.5 52,017 39.9 15.2 213,713 38.4 189,653 38.5 12.7
Administrative expenses 7,876 5.2 6,836 5.2 15.2 27,219 4.9 22,988 4.7 18.4
Selling expenses 36,499 24.1 31,412 24.1 16.2 134,079 24.1 123,405 25.0 8.6
Other operating expenses (income), net (1) 28 - 624 0.5 (95.5 ) 422 0.1 1,757 0.4 (76.0 )
Income from operations(2) 15,509 10.2 13,145 10.1 18.0 17.0 51,993 9.3 41,503 8.4 25.3 23.7
Other non-operating expenses (income) 341 (1,997 ) (117.1 ) (2,667 ) 7,656 (134.8 )
Interest expense 4,186 5,005 (16.4 ) 16,938 17,516 (3.3 )
Interest income 583 261 123.4 1,464 2,100 (30.3 )
Interest expense, net 3,603 4,744 (24.1 ) 15,474 15,416 0.4
Foreign exchange loss (gain) (779 ) 4,934 (115.8 ) (1,314 ) (385 ) N.S.
Other financial expenses (income), net. (389 ) 113 N.S. (776 ) (120 ) N.S.
Financing expenses, net 2,435 9,791 (75.1 ) 13,384 14,911 (10.2 )
Income before income tax and participation in associates results 12,733 5,351 138.0 41,276 18,936 118.0
Income tax 4,094 3,154 29.8 14,278 14,819 (3.7 )
Participation in associates results(3) 1,461 (1,467 ) (199.6 ) 10,680 (361 ) N.S.
(Loss) Consolidated net income 10,100 730 N.S. 37,678 3,756 N.S.
Net majority income 6,717 (1,245 ) N.S. 28,495 (1,930 ) N.S.
Net minority income 3,383 1,975 71.3 9,183 5,686 61.5
Operative Cash Flow & CAPEX 2021 % Integral 2020 % Integral % Inc. % Org.(A) 2021 % Integral 2020 % Integral % Inc. % Org.(A)
Income from operations 15,509 10.2 13,145 10.1 18.0 17.0 51,993 9.3 41,503 8.4 25.3 23.7
Depreciation 6,542 4.3 6,279 4.8 4.2 25,294 4.5 25,006 5.1 1.2
Amortization & other non-cash charges 1,395 1.0 1,514 1.2 (7.9 ) 5,134 1.0 5,464 1.1 (6.0 )
Operative Cash Flow (EBITDA) 23,446 15.5 20,938 16.1 12.0 11.2 82,422 14.8 71,973 14.6 14.5 13.0
CAPEX 8,827 6,377 38.4 24,055 20,893 15.1

(A) Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

(1) Other operating expenses (income), net = other operating expenses (income) +(-) equity method from operated associates.

(2) Income from operations = gross profit - administrative and selling expenses - other operating expenses (income), net.

(3) Mainly represents the equity method participation in Heineken´s and Raizen convenience stores results, net.

(4) At the end of the year, the CAPEX effectively paid is equivalent to $19,062M.

February 28, 2022 12

FEMSA

Consolidated Balance Sheet

Millions of Pesos

ASSETS Dec-21 Dec-20 % Inc.
Cash and cash equivalents 97,407 107,624 (9.5 )
Investments 24,415 662 N.S.
Accounts receivable 33,898 28,249 20.0
Inventories 50,896 44,034 15.6
Other current assets 24,102 20,700 16.4
Total current assets 230,718 201,269 14.6
Investments in shares 107,299 98,270 9.2
Property, plant and equipment, net 115,147 113,106 1.8
Right of use 56,994 54,747 4.1
Intangible assets (1) 158,138 155,501 1.7
Other assets 69,204 61,955 11.7
TOTAL ASSETS 737,500 684,848 7.7
LIABILITIES & STOCKHOLDERS´ EQUITY
Bank loans 2,003 4,469 (55.2 )
Current maturities of long-term debt 2,637 4,332 (39.1 )
Interest payable 1,968 2,069 (4.9 )
Current maturities of long-term leases 7,306 6,772 7.9
Operating liabilities 122,809 100,771 21.9
Total current liabilities 136,723 118,413 15.5
Long-term debt (2) 179,857 174,706 2.9
Long-term leases 55,048 51,536 6.8
Laboral obligations 7,600 7,253 4.8
Other liabilities 23,455 25,753 (8.9 )
Total liabilities 402,683 377,661 6.6
Total stockholders' equity 334,817 307,187 9.0
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 737,500 684,848 7.7
December 31, 2021
DEBT MIX (2) % of Total Average Rate
Denominated in:
Mexican pesos 37.9 % 7.5 %
U.S. Dollars 29.5 % 3.1 %
Euros 23.1 % 1.1 %
Colombian pesos 1.0 % 5.3 %
Argentine pesos 0.3 % 41.0 %
Brazilian reais 6.7 % 8.7 %
Chilean pesos 0.8 % 3.9 %
Uruguayan Pesos 0.8 % 6.6 %
Guatemalan Quetzal 0.0 % 6.3 %
Total debt 100.0 % 4.8 %
Fixed rate (2) 90.1 %
Variable rate (2) 9.9 %
DEBT MATURITY PROFILE 2022 2023 2024 2025 2026 2027+
% of Total Debt 2.7 % 5.4 % 1.4 % 1.1 % 1.2 % 88.3 %

(1) Includes mainly the intangible assets generated by acquisitions.

(2) Includes the effect of derivative financial instruments on long-term debt.

February 28, 2022 13

FEMSA Comercio - Proximity Division

Results of Operations

Millions of Pesos

For the fourth quarter of: For the twelve months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 53,510 100.0 46,769 100.0 14.4 198,586 100.0 181,277 100.0 9.5
Cost of sales 28,835 53.9 25,905 55.4 11.3 114,390 57.6 106,981 59.0 6.9
Gross profit 24,675 46.1 20,864 44.6 18.3 84,196 42.4 74,296 41.0 13.3
Administrative expenses 1,875 3.5 1,708 3.7 9.8 6,145 3.1 5,696 3.1 7.9
Selling expenses 16,115 30.2 14,160 30.2 13.8 59,542 29.9 56,030 31.0 6.3
Other operating expenses (income), net (81 ) (0.2 ) 89 0.2 (191.0 ) 122 0.1 550 0.3 (77.8 )
Income from operations 6,766 12.6 4,907 10.5 37.9 18,387 9.3 12,020 6.6 53.0
Depreciation 2,693 5.0 2,560 5.5 5.2 10,454 5.3 10,265 5.7 1.8
Amortization & other non-cash charges 188 0.4 221 0.4 (14.9 ) 863 0.4 1,048 0.6 (17.7 )
Operative cash flow (EBITDA) 9,647 18.0 7,688 16.4 25.5 29,704 15.0 23,333 12.9 27.3
CAPEX 1,946 1,219 59.6 7,179 6,907 3.9
Information of OXXO Stores
Total stores 20,431 19,566 4.4
Stores Mexico 20,121 19,295 4.3
Stores South America 310 271 14.4
Net new conveniences stores:
vs. Last quarter 434 (67 ) N.S.
Year-to-date 865 236 N.S.
Last-twelve-months 865 236 266.5
Same-store data: (1)
Sales (thousands of pesos) 828.9 737.1 12.5 778.2 722.3 7.7
Traffic (thousands of transactions) 17.6 17.3 1.9 17.3 17.7 (2.2 )
Ticket (pesos) 47.0 42.6 10.4 44.9 40.7 10.2

(1) Monthly average information per store, considering same stores with more than twelve months of operations, income from services are included.

February 28, 2022 14

FEMSA Comercio - Health Division

Results of Operations

Millions of Pesos

For the fourth quarter of: For the twelve months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 18,581 100.0 17,319 100.0 7.3 73,027 100.0 65,172 100.0 12.1
Cost of sales 12,843 69.1 11,966 69.1 7.3 51,291 70.2 45,597 70.0 12.5
Gross profit 5,738 30.9 5,353 30.9 7.2 21,736 29.8 19,575 30.0 11.0
Administrative expenses 906 4.9 849 4.9 6.7 3,255 4.5 3,314 5.1 (1.8 )
Selling expenses 3,856 20.7 3,667 21.1 5.2 14,620 20.0 13,540 20.7 8.0
Other operating expenses (income), net 48 0.3 (6 ) - N.S. 99 0.1 65 0.1 52.3
Income from operations 928 5.0 843 4.9 10.1 3,762 5.2 2,656 4.1 41.6
Depreciation 721 3.9 781 4.5 (7.7 ) 2,864 3.9 2,968 4.6 -3.5
Amortization & other non-cash charges 161 0.8 149 0.8 8.1 602 0.8 603 0.9 (0.2 )
Operative cash flow (EBITDA) 1,810 9.7 1,773 10.2 2.1 7,228 9.9 6,227 9.6 16.1
CAPEX 1,041 632 64.7 2,049 1,694 21.0
Information of Stores
Total Stores 3,652 3,368 8.4
Stores Mexico 1,428 1,331 7.3
Stores South America 2,224 2,037 9.2
Net new stores:
vs. Last quarter 112 119 (5.9 )
Year-to-date 284 207 37.2
Last-twelve-months 284 207 37.2
Same-store data: (1)
Sales (thousands of pesos) 1,387.1 1,312.5 5.7 1,381.6 1,261.7 9.5

(1) Monthly average information per store, considering same stores with more than twelve months of all the operations of FEMSA Comercio - Health Division.

February 28, 2022 15

FEMSA Comercio - Fuel Division

Results of Operations

Millions of Pesos

For the fourth quarter of:
Comparable (A) As Reported
2021 % of rev. 2020 % of rev. % Var. 2020 % of rev. % Var.
Total revenues 11,065 100.0 8,497 100.0 30.2 8,485 100.0 30.4
Cost of sales 9,503 85.9 7,205 84.8 31.9 7,354 86.7 29.2
Gross profit 1,562 14.1 1,292 15.2 20.9 1,131 13.3 38.1
Administrative expenses 78 0.7 74 0.9 5.4 74 0.9 5.4
Selling expenses 1,051 9.5 884 10.4 18.9 842 9.9 24.8
Other operating expenses (income), net (2 ) - 3 - (166.7 ) 3 - (166.7 )
Income from operations 435 3.9 331 3.9 31.4 212 2.5 105.2
Depreciation 250 2.3 208 2.4 20.2 208 2.5 20.2
Amortization & other non-cash charges 17 0.1 7 0.1 142.9 8 - 112.5
Operative cash flow (EBITDA) 702 6.3 546 6.4 28.6 428 5.0 64.0
CAPEX 34 212 (83.8 ) 212 (83.8 )
Information of OXXO GAS Service Stations
Total service stations 567 558 1.6
Net new service stations
vs. Last quarter 1 7 (100.0 )
Year-to-date 9 13 (30.8 )
Last-twelve-months 9 13 (30.8 )
Volume (million of liters) total stations 564 516 9.3
Same-stations data: (1)
Sales (thousands of pesos) 6,338.8 5,139.8 23.3
Volume (thousands of liters) 338.4 312.3 8.3
Average price per liter 18.7 16.5 13.8

(A) Unaudited consolidated financial information

(1) Monthly average information per station, considering same stations with more than twelve months of operations.

FEMSA Comercio - Fuel Division

Results of Operations

Millions of Pesos

For the twelve months of:
Comparable (A) As Reported
2021 % of rev. 2020 % of rev. % Var. 2020 % of rev. % Var.
Total revenues 39,922 100.0 34,322 100.0 16.3 34,292 100.0 16.4
Cost of sales 34,653 86.8 29,493 85.9 17.5 29,992 87.5 15.5
Gross profit 5,269 13.2 4,829 14.1 9.1 4,300 12.5 22.5
Administrative expenses 290 0.7 252 0.7 15.1 252 0.7 15.1
Selling expenses 3,571 9.0 3,315 9.7 7.7 3,226 9.4 10.7
Other operating expenses (income), net (8 ) - 9 - (188.9 ) 9 - (188.9 )
Income from operations 1,416 3.5 1,253 3.7 13.0 813 2.4 74.2
Depreciation 966 2.4 856 2.5 12.9 856 2.5 12.9
Amortization & other non-cash charges 20 0.1 31 - (35.5 ) 31 0.1 (35.5 )
Operative cash flow (EBITDA) 2,402 6.0 2,140 6.2 12.2 1,700 5.0 41.3
CAPEX 243 549 (55.7 ) 549 (55.7 )
Information of OXXO GAS Service Stations
Total service stations 567 558 1.6
Net new service stations
vs. Last quarter 1 7 (100.0 )
Year-to-date 9 13 (30.8 )
Last-twelve-months 9 13 (30.8 )
Volume (million of liters) total stations 2,103 2,066 1.8
Same-stations data: (1)
Sales (thousands of pesos) 5,861.8 5,193.5 12.9
Volume (thousands of liters) 315.7 313.4 0.7
Average price per liter 18.6 16.6 12.0

(A) Unaudited consolidated financial information

(1) Monthly average information per station, considering same stations with more than twelve months of operations.

February 28, 2022 16
Logistics & Distribution
Results of Operations
Millions of Pesos
For the fourth quarter of: For the twelve months of:
2021 % of rev. 2021 % of rev.
Total revenues 14,603 100.0 48,412 100.0
Cost of sales 11,416 78.2 37,843 78.2
Gross profit 3,187 21.8 10,569 21.8
Administrative expenses 1,301 8.9 4,533 9.4
Selling expenses 1,465 10.0 4,060 8.3
Other operating expenses (income), net (157 ) (1.1 ) (155 ) (0.3 )
Income from operations 578 4.0 2,132 4.4
Depreciation 552 3.8 1,859 3.8
Amortization & other non-cash charges 412 2.8 970 2.0
Operative cash flow (EBITDA) 1,542 10.6 4,961 10.2
CAPEX 124 557
February 28, 2022 17
Coca-Cola FEMSA
Results of Operations
Millones of pesos
For the fourth quarter of: For the twelve months of:
2021 % of rev. 2020 % of rev. % Var. 2021 % of rev. 2020 % of rev. % Var.
Total revenues 53,273 100.0 49,116 100.0 8.5 194,804 100.0 183,615 100.0 6.1
Cost of sales 29,288 55.0 27,177 55.3 7.8 106,206 54.5 100,804 54.9 5.4
Gross profit 23,985 45.0 21,939 44.7 9.3 88,598 45.5 82,811 45.1 7.0
Administrative expenses 2,232 4.2 2,119 4.3 5.3 9,012 4.6 7,891 4.3 14.2
Selling expenses 13,672 25.6 12,256 25.0 11.6 51,709 26.6 48,554 26.5 6.5
Other operating expenses (income), net 303 0.6 335 0.7 (9.6 ) 475 0.2 1,123 0.6 (57.7 )
Income from operations 7,778 14.6 7,229 14.7 7.6 27,402 14.1 25,243 13.7 8.6
Depreciation 2,277 4.3 2,204 4.5 3.3 8,949 4.6 9,011 4.9 (0.7 )
Amortization & other non-cash charges 593 1.1 565 1.2 5.0 2,498 1.2 3,091 1.7 (19.2 )
Operative cash flow (EBITDA) 10,648 20.0 9,998 20.4 6.5 38,849 19.9 37,345 20.3 4.0
CAPEX 5,668 4,118 37.7 13,865 10,354 33.9
Sales volumes
(Millions of unit cases)
Mexico and Central America 531.8 55.9 495.0 54.9 7.4 2,057.9 59.5 1,991.7 60.6 3.3
South America 147.4 15.5 131.8 14.6 11.8 496.8 14.4 429.8 13.1 15.6
Brazil 272.1 28.6 275.4 30.5 (1.2 ) 903.2 26.1 862.9 26.3 4.7
Total 951.3 100.0 902.2 100.0 5.5 3,457.9 100.0 3,284.4 100.0 5.3
February 28, 2022 18
FEMSA
Macroeconomic Information
Inflation End-of-period Exchange Rates
Dec -21 Dec-20
4Q 2021 LTM (1) Dec-21 Per USD Per MXN Per USD Per MXN
Mexico 2.42 % 7.36 % 20.58 1.0000 19.95 1.0000
Colombia 1.54 % 5.62 % 3,981.16 0.0052 3,432.50 0.0058
Brazil 3.80 % 10.06 % 5.58 3.6885 5.20 3.8387
Argentina 11.07 % 50.94 % 102.72 0.2004 84.15 0.2371
Chile 3.69 % 7.17 % 850.25 0.0242 711.24 0.0280
Euro Zone 1.86 % 4.97 % 0.89 23.2463 0.81 24.5213
(1) LTM = Last twelve months.
February 28, 2022 19

Coca-Cola FEMSA Announces Fourth Quarter and Full Year 2021 Results

Mexico City, February 24, 2022, Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOF UBL, NYSE: KOF) ("Coca-Cola FEMSA," "KOF" or the "Company"), the largest Coca-Cola franchise bottler in the world by sales volume, announces its results for the fourth quarter and the full year of 2021.

FOURTH QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS

· Consolidated volumes increased 5.4%, driven mainly by volume growth in Mexico, Central America, Colombia, Argentina, and Uruguay, partially offset by a slight volume decline in Brazil. Total volumes increased 6.9% versus our 2019 baseline.
· Total revenues increased 8.5%, while comparable revenues increased 10.5%, driven by our pricing initiatives, volume growth, and favorable price-mix effects. This increase was partially offset by a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. Total revenues increased 3.0% versus the same period of 2019.
· Operating income increased 7.6%, while comparable operating income increased 8.0%, driven mainly by an increase in our top-line and favorable hedging initiatives, coupled with the resumption of the recognition of tax credits in Brazil related to the Manaus Free Trade Zone. These effects were partially offset by unfavorable raw material prices and the depreciation of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. Operating income increased 22.1% as compared to the same period of 2019.
· Majority net income increased 82.8%, driven mainly by solid operating results, coupled with the one-time recognition of a favorable deferred tax credit in Brazil and a decrease in comprehensive financial result during the quarter.

FULL YEAR OPERATIONAL AND FINANCIAL HIGHLIGHTS

· Total volumes increased 5.3%, driven by a recovery in all of our countries as a result of solid execution, coupled with economic reopening and increased mobility across our markets. Total volumes increased 2.6% versus our 2019 baseline.
· Total revenues increased 6.1%, while comparable revenues increased 11.1%, driven by volume growth, our pricing initiatives, and favorable price-mix effects, partially offset by a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. Total revenues remained flat versus 2019.
· Operating income increased 8.6%, while comparable operating income increased 11.8%. This increase was driven mainly by an increase in our gross profit and favorable hedging initiatives, coupled with the resumption of the recognition of tax credits in Brazil related to the Manaus Free Trade Zone. These effects were partially offset by an increase in raw material prices and the normalization of certain operating expenses. As compared to 2019, our operating income increased 7.8%.
· Earnings per share1 were Ps. 0.93 (Earnings per unit were Ps. 7.48, and per ADS were Ps. 74.77.).

FINANCIAL SUMMARY FOR THE FOURTH QUARTER AND FULL YEAR OF 2021

Change vs. same period of last year

Total Revenues Gross Profit Operating Income Majority Net Income
4Q 2021 FY 2021 4Q 2021 FY 2021 4Q 2021 FY 2021 4Q 2021 FY 2021
Consolidated 8.5 % 6.1 % 9.3 % 7.0 % 7.6 % 8.6 % 82.8 % 52.4 %
As Reported Mexico & Central America 13.7 % 8.4 % 9.1 % 8.4 % 2.6 % 8.1 %
South America 2.0 % 2.8 % 9.6 % 4.4 % 18.6 % 9.5 %
Consolidated 10.5 % 11.1 % 11.0 % 11.3 % 8.0 % 11.8 %
Comparable (2) Mexico & Central America 13.7 % 9.7 % 9.1 % 9.6 % 2.4 % 8.9 %
South America 6.4 % 13.1 % 14.2 % 14.7 % 20.6 % 18.7 %

John Santa Maria, Coca-Cola FEMSA's CEO, commented:

"Our full-year 2021 results reflect our business's resilience and our ability to deliver accelerated results. Driven by the unwavering commitment of our teams to execute the right strategies across our markets, our volumes increased in all of our territories, resulting in consolidated volume growth of 5.3% year on year and 2.6% versus 2019. Notably, our revenues and our operating income grew 6.1% and 8.6%, respectively, for an operating income margin expansion of 30 basis points-all in the face of a dynamic raw material and supply chain environment.

Moreover, we achieved significant strategic milestones during the year; we strengthened our partnership with The Coca-Cola Company, accelerated the rollout of our digital capabilities, and capitalized on value-enhancing acquisition opportunities. Looking ahead, we are confident that we have the right vision and strategy to continue transforming our company and delivering sustainable long-term value for many years to come."

(1) Quarterly earnings / outstanding shares. Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806.7 million shares outstanding. For the convenience of the reader, as a KOF UBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOF UBL Units.
(2) Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 20 of 35

RECENT DEVELOPMENTS

· On November 3, 2021, Coca-Cola FEMSA paid the second installment of the 2020 dividend approved for Ps. 0.63 per share (equivalent to Ps. 5.04 per unit).
· On December 17, 2021, Coca-Cola FEMSA, S.A.B. de C.V announced that its Brazilian subsidiary Spal Industria Brasileira de Bebidas S.A. ("Spal") reached an agreement to acquire 100% of Brazilian Coca-Cola bottler, CVI Refrigerantes Ltda. ("CVI"). The parties agreed to an all-cash transaction for an enterprise value of R$632.5 million. The transaction was successfully closed on January 24, 2022. With the acquisition of CVI, Coca-Cola FEMSA bolsters its leadership position in the region to reach 52% of the Coca-Cola System's volume in Brazil. The Company adds to its operation one bottling facility and three distribution centers that serve more than 13 thousand points of sale and more than 2.8 million consumers.
· On January 25, 2022, Coca-cola FEMSA announced the construction of a new recycling plant together with ALPLA México, S.A. de C.V. ("ALPLA"), known as "PLANETA" (Planta Nueva Ecologia de Tabasco), to bolster the circular economy in the south and southeast regions of Mexico. The plant will be built in the state of Tabasco and will have a joint investment between Coca-Cola FEMSA and ALPLA of more than US$60 million. The plant is expected to start operations during the first quarter of 2023.
· On February 8, 2022, Coca-Cola FEMSA announced that it became the only Mexico-based company in the beverage sector to be included in the S&P Global Sustainability Yearbook 2022 for the second consecutive year due to its high performance in the S&P Global Corporate Sustainability Assessment (CSA). The Company was ranked within the top 15% of leading companies in sustainability under S&P Global's proprietary annual evaluation of the environmental, social, economic, and corporate governance dimensions of more than 7,000 companies around the world.

CONFERENCE CALL INFORMATION

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 21 of 35

CONSOLIDATED FOURTH QUARTER RESULTS

CONSOLIDATED FOURTH QUARTER RESULTS

As Reported Comparable (1)
Expressed in millions of Mexican pesos 4Q 2021 4Q 2020 Δ% Δ%
Total revenues 53,273 49,116 8.5 % 10.5 %
Gross profit 23,985 21,939 9.3 % 11.0 %
Operating income 7,778 7,229 7.6 % 8.0 %
Operating cash flow (2) 10,648 9,998 6.5 % 7.5 %

Volume increased 5.4% to 951.3 million unit cases, driven mainly by volume growth in Mexico, Central America, Colombia, Argentina and Uruguay. This increase was partially offset by a slight volume decline in Brazil. Consolidated volume increased 6.9% versus our 2019 baseline.

Total revenues increased 8.5% to Ps. 53,273 million. This increase was driven mainly by our pricing initiatives, coupled with favorable price-mix effects and volume growth. These effects were partially offset by unfavorable currency translation effects from some of our operating currencies into Mexican Pesos and a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. On a comparable basis, total revenues would have increased 10.5%. Total revenues increased 3.0% versus the same period of 2019.

Gross profit increased 9.3% to Ps. 23,985 million, and gross margin expanded 30 basis points to 45.0%. This increase was driven mainly by our raw material hedging strategies, coupled with revenue management initiatives and the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone in Brazil. These effects were partially offset by the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs and higher concentrate costs in Mexico. On a comparable basis, gross profit would have increased 11.0%. Gross profit increased 4.6% versus the fourth quarter of 2019.

Operating income increased 7.6% to Ps. 7,778 million, and operating margin contracted 10 basis points to 14.6%. This operating income increase was driven mainly by favorable top-line performance, partially offset by the normalization of certain operating expenses such as labor, and maintenance related to the reopening and increased mobility across our operations. On a comparable basis, operating income would have increased 8.0%. Our operating income increased 22.1% versus our 2019 baseline.

(1) Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
(2) Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 22 of 35

Comprehensive financing result recorded an expense of Ps. 748 million, compared to an expense of Ps. 1,777 million in the same period of 2020.

This quarter, the Company had a reduction in interest expense, net, as compared to the same period of 2020, as we recognized an increase in our interest income related to an increase in interest rates in Brazil. This decrease was partially offset by an increase in interest expenses.

Moreover, we recorded a foreign exchange gain of Ps. 79 million as compared to a foreign exchange loss of Ps. 346 million recorded during the same period of 2020, as our cash exposure in U.S. dollars was positively impacted by the depreciation of the Mexican Peso and the Brazilian Real during the quarter.

In addition, the Company recorded a gain of Ps. 269 million in monetary position in inflationary subsidiaries as compared to a gain of Ps. 123 million during the same period of 2020. Finally, we recorded a gain in financial instruments of Ps. 131 million, driven mainly by a market value gain recognized during this quarter, as compared to a loss of Ps. 214 million recorded during the same period of 2020.

Income tax as a percentage of income before taxes was 14.1% as compared to 36.3% during the same period of the previous year. This decrease was driven mainly by the one-time effect of the recognition of a favorable deferred tax credit in Brazil and the unfavorable deferred tax adjustments in Mexico that impacted the same period of 2020.

Net income attributable to equity holders of the company reached Ps. 5,809 million as compared to Ps. 3,177 million during the same period of the previous year, driven mainly by a lower consolidated tax rate, coupled with a decrease in comprehensive financial results and solid operating results. Earnings per share1 were Ps. 0.35 (Earnings per unit were Ps. 2.77, and earnings per ADS were Ps. 27.65.).

(1) Quarterly earnings / outstanding shares. Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806.7 million shares outstanding. For the convenience of the reader, as a KOF UBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOF UBL Units.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 23 of 35

CONSOLIDATED FULL YEAR RESULTS

CONSOLIDATED FULL YEAR RESULTS

As Reported Comparable (1)
Expressed in millions of Mexican pesos FY 2021 FY 2020 Δ% Δ%
Total revenues 194,804 183,615 6.1 % 11.1 %
Gross profit 88,598 82,811 7.0 % 11.3 %
Operating income 27,402 25,243 8.6 % 11.8 %
Operating cash flow (2) 38,849 37,345 4.0 % 7.8 %

Volume increased 5.3% to 3,457.9 million unit cases in the full year of 2021 as compared to the same period of 2020, driven by volume growth across all of our operations resulting from our solid execution, coupled with gradual recoveries and increases in mobility. Consolidated volume increased 2.6% as compared to our 2019 baseline.

Total revenues increased 6.1% to Ps. 194,804 million in the full year of 2021 as compared to the same period of 2020, driven by volume growth, our pricing initiatives, and favorable price-mix effects. This increase was partially offset by unfavorable currency translation effects resulting from the depreciation of all of our operating currencies into Mexican Pesos, and a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. In addition, during the same period of 2020, we recorded non-recurring other operating revenues related to an entitlement to reclaim tax payments in Brazil. On a comparable basis, total revenues would have increased 11.1%. Total revenues increased 0.2% versus 2019.

Gross profit increased 7.0% to Ps. 88,598 million in the full year of 2021 as compared to the same period of 2020, and gross margin expanded 40 basis points to 45.5%. Favorable price-mix effects, our raw material hedging strategies, and the positive effect of the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone in Brazil were partially offset by: i) higher raw material prices; ii) higher concentrate costs in Mexico; iii) and the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 11.3%. Gross profit increased 1.2% versus 2019.

(1) Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
(2) Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 24 of 35

Operating income increased 8.6% to Ps. 27,402 million in the full year of 2021 as compared to the same period of 2020, and operating margin expanded 30 basis points to 14.1%. This increase was mainly driven by a solid gross profit performance partially offset by the normalization of certain operating expenses such as marketing, labor, and maintenance related to increases in mobility across our operations. On a comparable basis, operating income would have increased 11.8%. Our operating income increased 7.8% versus our 2019 baseline.

Comprehensive financing result recorded an expense of Ps. 4,219 million during the full year of 2021 compared to an expense of Ps. 6,678 million in the same period of 2020.

Interest expense, net, recorded a decrease during the year, driven mainly by a one-time interest expense related to our successful debt refinancing initiatives during the first quarter of 2020, coupled with the re-payment of short-term financings and the re-payment of a Mexican Peso-denominated bond. These short-term financings were a preventive measure to reinforce the Company's cash position in the face of the uncertainties driven by the COVID-19 pandemic.

Moreover, we recorded a foreign exchange gain of Ps. 227 million as compared to a foreign exchange gain of Ps. 4 million recorded during the same period of 2020, as our cash exposure to U.S. dollars was positively impacted by the depreciation of the Mexican Peso and the Brazilian Real.

In addition, we recognized a gain in monetary position in inflationary subsidiaries of Ps. 734 million as compared to a gain of Ps. 376 million recorded during the same period of 2020.

Finally, we recorded a gain in financial instruments of Ps. 80 million, driven mainly by a market value gain recognized during this year as compared to a loss of Ps. 212 million.

Income tax as a percentage of income before taxes was 28.9% as compared to 33.8% for the previous year. This decrease was driven by the one-time effect of a favorable deferred tax credit in Brazil recognized in 2021, and deferred tax adjustments in Mexico that were recognized during the fourth quarter of 2020.

Net income attributable to equity holders of the company reached Ps. 15,708 million in the full year of 2021 as compared to Ps. 10,307 million during the same period of the previous year. Earnings per share1 were Ps. 0.93 (Earnings per unit were Ps. 7.48, and earnings per ADS were Ps. 74.77.).

56

(1) Earnings / outstanding shares. Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806.7 million shares outstanding. For the convenience of the reader, as each KOF UBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOF UBL Units.

Coca-Cola FEMSA Reports 4Q2021 Results

February 24, 2022

Page 25 of 35

MEXICO & CENTRAL AMERICA DIVISION FOURTH QUARTER RESULTS

(Mexico, Guatemala, Costa Rica, Panama, and Nicaragua)

MEXICO & CENTRAL AMERICA DIVISION RESULTS

As Reported Comparable (1)
Expressed in millions of Mexican pesos 4Q 2021 4Q 2020 Δ% Δ%
Total revenues 30,792 27,073 13.7 % 13.7 %
Gross profit 14,918 13,670 9.1 % 9.1 %
Operating income 5,083 4,956 2.6 % 2.4 %
Operating cash flow (2) 6,835 6,612 3.4 % 3.3 %

Volume increased 7.4% to 531.8 million unit cases, driven mainly by strong volume growth in Mexico, 14.1% volume growth in Guatemala, and 19.8% volume growth in Central America South, as a result of economic reopening and mobility increases across our territories. Volume increased 4.9% versus our 2019 baseline.

Total revenues increased 13.7% to Ps. 30,792 million, driven mainly by volume growth and favorable price-mix effects, coupled with pricing and revenue management initiatives. On a comparable basis, total revenues would have also increased 13.7%. Total revenues grew 13.0% versus the same period of 2019.

Gross profit increased 9.1% to Ps. 14,918 million, and gross margin contracted 210 basis points to 48.4%. This margin decrease was driven mainly by an increase in raw material costs, higher concentrate costs in Mexico, and the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. These effects were partially offset by our raw material hedging strategies and favorable price-mix effects. On a comparable basis, gross profit would have also increased 9.1%. Gross profit increased 14.3% versus our 2019 baseline.

Operating income increased 2.6% to Ps. 5,083 million in the fourth quarter of 2021, and operating margin contracted 180 basis points to 16.5% during the period. This effect was driven mainly by the normalization of certain operating expenses such as labor and maintenance as compared to the same period of 2020, partially offset by certain operating expense efficiencies. On a comparable basis, operating income would have increased 2.4%. Our operating income increased 44.2% versus our 2019 baseline.

(1) Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
(2) Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Coca-Cola FEMSA Reports 4Q2021 Results

February 24, 2022

Page 26 of 35

SOUTH AMERICA DIVISION FOURTH QUARTER RESULTS

(Brazil, Argentina, Colombia, and Uruguay)

SOUTH AMERICA DIVISION RESULTS

As Reported Comparable (1)
Expressed in millions of Mexican pesos 4Q 2021 4Q 2020 Δ% Δ%
Total revenues 22,481 22,043 2.0 % 6.4 %
Gross profit 9,066 8,269 9.6 % 14.2 %
Operating income 2,695 2,273 18.6 % 20.6 %
Operating cash flow (2) 3,813 3,385 12.6 % 15.9 %

Volume increased 3.0% to 419.6 million unit cases, driven mainly by 16.2% volume growth in Colombia, 5.8% in Argentina, and 7.2% in Uruguay. This increase was partially offset by a slight volume decline of 1.2% in Brazil. Volume increased 9.6% versus our 2019 baseline.

Total revenues increased 2.0% to Ps. 22,481 million, driven by volume growth and pricing and revenue management initiatives, coupled with favorable price-mix effects. This increase was partially offset by a reduction in beer revenues as a result of the partial transition of our beer portfolio in Brazil, coupled with unfavorable currency translation effects resulting from the depreciation of most of our operating currencies in the division as compared to the Mexican Peso. On a comparable basis, total revenues would have increased 6.4%. Total revenues declined 8.2% versus the same period of 2019.

Gross profit increased 9.6% to Ps. 9,066 million, and gross margin expanded 280 basis points to 40.3%, driven mainly by favorable price-mix effects, our raw material hedging strategies, and lower concentrate costs in Brazil related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone. This increase was partially offset by the depreciation of the average exchange rate of all our operating currencies in the division as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 14.2%. Gross profit decreased 8.2% versus our 2019 baseline

Operating income increased 18.6% to Ps. 2,695 million in the fourth quarter of 2021, resulting in a margin expansion of 170 basis points to 12.0%. This increase was driven mainly by higher gross profit and an increase in operating leverage resulting from volume growth, partially offset by the transition of our beer portfolio in Brazil. On a comparable basis, operating income would have increased 20.6%. Operating income decreased 5.4% versus our 2019 baseline.

(1) Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
(2) Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Coca-Cola FEMSA Reports 4Q2021 Results

February 24, 2022

Page 27 of 35

DEFINITIONS

Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.

Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.

Operating income is a non-GAAP financial measure computed as "gross profit - operating expenses - other operating expenses, net + operative equity method (gain) loss in associates."

Operating cash flow is a non-GAAP financial measure computed as "operating income + depreciation + amortization & other operating non-cash charges."

Earnings per share are equal to "Earnings / outstanding shares." Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806,658,096 shares outstanding. For the convenience of the reader, as each KOF UBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOF UBL Units.

COMPARABILITY

In an effort to provide our readers with a more useful representation of our company's underlying financial and operating performance, as of the first quarter 2020, we adjusted our methodology to calculate our comparable figures, no longer excluding hyperinflationary operations. Due to this change, our "comparable" term means, with respect to a year-over-year comparison, the change of a given measure excluding the effects of: (i) mergers, acquisitions, and divestitures; and (ii) translation effects resulting from exchange rate movements. In preparing this measure, management has used its best judgment, estimates, and assumptions in order to maintain comparability.

Coca-Cola FEMSA Reports 4Q2021 Results

February 24, 2022

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ABOUT THE COMPANY

Stock listing information: Mexican Stock Exchange, Ticker: KOFUBL | NYSE (ADS), Ticker: KOF | Ratio of KOFUBL to KOF = 10:1

Coca-Cola FEMSA files reports, including annual reports and other information with the U.S. Securities and Exchange Commission, or the "SEC," and the Mexican Stock Exchange (Bolsa Mexicana de Valores, or the "BMV") pursuant to the rules and regulations of the SEC (that apply to foreign private issuers) and of the BMV. Filings we make electronically with the SEC and the BMV are available to the public on the Internet at the SEC's website at www.sec.gov, the BMV's website at www.bmv.com.mx, and our website at www.coca-colafemsa.com.

Coca-Cola FEMSA, S.A.B. de C.V. is the largest Coca-Cola franchise bottler in the world by sales volume. The Company produces and distributes trademark beverages of The Coca-Cola Company, offering a wide portfolio of 129 brands to a population of more than 265 million. With over 80 thousand employees, the Company markets and sells approximately 3.3 billion unit cases through close to 2 million points of sale a year. Operating 49 manufacturing plants and 268 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all of its stakeholders across the value chain. The Company is a member of the Dow Jones Sustainability Emerging Markets Index, Dow Jones Sustainability MILA Pacific Alliance Index, FTSE4Good Emerging Index, and the Mexican Stock Exchange's IPC and Social Responsibility and Sustainability Indices, among others. Its operations encompass franchise territories in Mexico, Brazil, Guatemala, Colombia, and Argentina, and, nationwide, in Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela through its investment in KOF Venezuela. For further information, please visit www.coca-colafemsa.com.

ADDITIONAL INFORMATION

All of the financial information presented in this report was prepared under International Financial Reporting Standards (IFRS).

This news release may contain forward-looking statements concerning Coca-Cola FEMSA's future performance, which should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA's control, which could materially impact the Company's actual performance. References herein to "US$" are to United States dollars. This news release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that Mexican peso amounts actually represent such U.S. dollars amounts or could be converted into U.S. dollars at the rate indicated.

(6 pages of tables to follow)

Coca-Cola FEMSA Reports 4Q2021 Results

February 24, 2022

Page 29 of 35
COCA-COLA FEMSA
CONSOLIDATED INCOME STATEMENT
Millions of Pesos (1)
For the Fourth Quarter of: For Full Year:
2021 % of Rev. 2020 % of Rev. Δ%
Reported
Δ% Comparable
(7)
2021 % of Rev. 2020 % of Rev. Δ%
Reported
Δ% Comparable
(7)
Transactions (million transactions) 5,564.3 4,924.5 13.0 % 13.0 % 19,490.9 17,397.7 12.0 % 12.0 %
Volume (million unit cases) 951.3 902.181 5.4 % 5.4 % 3,457.8 3,284.3 5.3 % 5.3 %
Average price per unit case 54.31 49.83 9.0 % 52.99 50.63 4.7 %
Net revenues 53,092 49,022 8.3 % 193,899 181,520 6.8 %
Other operating revenues 181 93 93.3 % 905 2,095 -56.8 %
Total revenues (2) 53,273 100.0 % 49,116 100.0 % 8.5 % 10.5 % 194,804 100.0 % 183,615 100.0 % 6.1 % 11.1 %
Cost of goods sold 29,288 55.0 % 27,177 55.3 % 7.8 % 106,206 54.5 % 100,804 54.9 % 5.4 %
Gross profit 23,985 45.0 % 21,939 44.7 % 9.3 % 11.0 % 88,598 45.5 % 82,811 45.1 % 7.0 % 11.3 %
Operating expenses 15,905 29.9 % 14,375 29.3 % 10.6 % 60,721 31.2 % 56,444 30.7 % 7.6 %
Other operative expenses, net 323 0.6 % 230 0.5 % 40.4 % 560 0.3 % 748 0.4 % -25.2 %
Operative equity method (gain) loss in associates(3) (20 ) 0.0 % 105 0.2 % NA (85 ) 0.0 % 375 0.2 % NA
Operating income (5) 7,778 14.6 % 7,229 14.7 % 7.6 % 8.0 % 27,402 14.1 % 25,243 13.7 % 8.6 % 11.8 %
Other non operative expenses, net 30 0.1 % 59 0.1 % NA 247 0.1 % 2,862 1.6 % NA
Non Operative equity method (gain) loss in associates (4) (54 ) -0.1 % 18 0.0 % NA (3 ) 0.0 % (94 ) -0.1 % NA
Interest expense 1,592 1,543 3.2 % 6,192 7,894 -21.6 %
Interest income 365 203 79.9 % 932 1,048 -11.1 %
Interest expense, net 1,227 1,340 -8.4 % 5,260 6,845 -23.2 %
Foreign exchange loss (gain) (79 ) 346 NA (227 ) (4 ) NA
Loss (gain) on monetary position in inflationary subsidiries (270 ) (123 ) 118.3 % (734 ) (376 ) 95.4 %
Market value (gain) loss on financial instruments (131 ) 214 -161.1 % (80 ) 212 NA
Comprehensive financing result 748 1,777 -57.9 % 4,219 6,678 -36.8 %
Income before taxes 7,053 5,375 31.2 % 22,940 15,796 45.2 %
Income taxes 978 1,997 -51.0 % 6,609 5,428 21.7 %
Result of discontinued operations - - NA - - NA
Consolidated net income 6,076 3,378 79.9 % 16,331 10,368 57.5 %
Net income attributable to equity holders of the company 5,809 10.9 % 3,177 6.5 % 82.8 % 15,708 8.1 % 10,307 5.6 % 52.4 %
Non-controlling interest 267 0.5 % 201 0.4 % NA 623 0.3 % 61 0.0 % NA
Operating Cash Flow & CAPEX 2021 % of Rev. 2020 % of Rev. Δ%
Reported
Δ% Comparable
(7)
2021 % of Rev. 2020 % of Rev. Δ%
Reported
Δ% Comparable
(7)
Operating income (5) 7,778 14.6 % 7,229 14.7 % 7.6 % 27,402 14.1 % 25,243 13.7 % 8.6 %
Depreciation 2,277 2,204 3.3 % 8,946 9,011 -0.7 %
Amortization and other operative non-cash charges 593 565 5.0 % 2,501 3,091 -19.1 %
Operating cash flow (5)(6) 10,648 20.0 % 9,998 20.4 % 6.5 % 7.5 % 38,849 19.9 % 37,345 20.3 % 4.0 % 7.8 %
CAPEX 5,681 4,118 38.0 % 13,865 10,354 33.9 %
(1) Except volume and average price per unit case figures.
(2) Please refer to page 14 and 15 for revenue breakdown.
(3) Includes equity method in Jugos del Valle, Leão Alimentos, and Estrella Azul, among others.
(4) Includes equity method in PIASA, IEQSA, Beta San Miguel, IMER, and KSP Participacoes, among others.
(5) The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
(6) Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
(7) Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
(8) For the full year total CAPEX effectively paid was Ps. 9,989 million pesos.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 30 of 35
MEXICO & CENTRAL AMERICA DIVISION
RESULTS OF OPERATIONS
Millions of Pesos (1)
For the Fourth Quarter of: For Full Year:
2021 % of Rev. 2020 % of Rev. Δ%
Reported
Δ%
Comparable (6)
2021 % of Rev. 2020 % of Rev. Δ%
Reported
Δ%
Comparable (6)
Transactions (million transactions) 2,816.4 2,486.6 13.3 % 13.3 % 10,610.0 9,838.4 7.8 % 7.8 %
Volume (million unit cases) 531.8 495.0 7.4 % 7.4 % 2,057.9 1,991.7 3.3 % 3.3 %
Average price per unit case 57.85 54.63 5.9 % 56.24 53.57 5.0 %
Net revenues 30,765 27,041 115,731 106,704
Other operating revenues 26 32 63 79
Total Revenues (2) 30,792 100.0 % 27,073 100.0 % 13.7 % 13.7 % 115,794 100.0 % 106,783 100.0 % 8.4 % 9.7 %
Cost of goods sold 15,873 51.6 % 13,403 49.5 % 58,428 50.5 % 53,877 50.5 %
Gross profit 14,918 48.4 % 13,670 50.5 % 9.1 % 9.1 % 57,366 49.5 % 52,906 49.5 % 8.4 % 9.6 %
Operating expenses 9,666 31.4 % 8,584 31.7 % 38,049 32.9 % 34,629 32.4 %
Other operative expenses, net 203 0.7 % 56 0.2 % 615 0.5 % 666 0.6 %
Operative equity method (gain) loss in associates (3) (34 ) -0.1 % 74 0.3 % (140 ) -0.1 % 188 0.2 %
Operating income (4) 5,083 16.5 % 4,956 18.3 % 2.6 % 2.4 % 18,841 16.3 % 17,423 16.3 % 8.1 % 8.9 %
Depreciation, amortization & other operating non-cash charges 1,753 5.7 % 1,656 6.1 % 7,040 6.1 % 7,451 7.0 %
Operating cash flow (4)(5) 6,835 22.2 % 6,612 24.4 % 3.4 % 3.3 % 25,881 22.4 % 24,873 23.3 % 4.1 % 5.1 %
(1) Except volume and average price per unit case figures.
(2) Please refer to page 14 and 15 for revenue breakdown.
(3) Includes equity method in Jugos del Valle and Estrella Azul, among others.
(4) The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
(5) Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
(6) Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
SOUTH AMERICA DIVISION
RESULTS OF OPERATIONS
Millions of Pesos (1)
For the Fourth Quarter of: For Full Year:
2021 % of Rev. 2020 % of Rev. Δ%
Reported
Δ%
Comparable (6)
2021 % of Rev. 2020 % of Rev. Δ%
Reported
Δ%
Comparable (6)
Transactions (million transactions) 2,747.9 2,438.0 12.7 % 12.7 % 8,880.9 7,559.2 17.5 % 17.5 %
Volume (million unit cases) 419.6 407.2 3.0 % 3.0 % 1,400.0 1,292.7 8.3 % 8.3 %
Average price per unit case 49.81 44.00 13.2 % 48.21 46.09 4.6 %
Net revenues 22,327 21,981 78,168 74,815
Other operating revenues 154 62 841 2,016
Total Revenues (2) 22,481 100.0 % 22,043 100.0 % 2.0 % 6.4 % 79,010 100.0 % 76,831 100.0 % 2.8 % 13.1 %
Cost of goods sold 13,415 59.7 % 13,774 62.5 % 47,778 60.5 % 46,927 61.1 %
Gross profit 9,066 40.3 % 8,269 37.5 % 9.6 % 14.2 % 31,232 39.5 % 29,905 38.9 % 4.4 % 14.7 %
Operating expenses 6,238 27.7 % 5,791 26.3 % 22,671 28.7 % 21,815 28.4 %
Other operative expenses, net 119 0.5 % 174 0.8 % (56 ) -0.1 % 82 0.1 %
Operative equity method (gain) loss in associates (3) 14 0.1 % 31 0.1 % 55 0.1 % 188 0.2 %
Operating income (4) 2,695 12.0 % 2,273 10.3 % 18.6 % 20.6 % 8,561 10.8 % 7,820 10.2 % 9.5 % 18.7 %
Depreciation, amortization & other operating non-cash charges 1,118 5.0 % 1,113 5.0 % 4,407 5.6 % 4,652 6.1 %
Operating cash flow (4)(5) 3,813 17.0 % 3,385 15.4 % 12.6 % 15.9 % 12,968 16.4 % 12,472 16.2 % 4.0 % 13.6 %
(1) Except volume and average price per unit case figures.
(2) Please refer to page 14 and 15 for revenue breakdown.
(3) Includes equity method in Leão Alimentos and Verde Campo, among others.
(4) The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.
(5) Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.
(6) Please refer to page 9 for our definition of "comparable" and a description of the factors affecting the comparability of our financial and operating performance.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 31 of 35
COCA-COLA FEMSA
CONSOLIDATED BALANCE SHEET
Millions of Pesos
Assets Dec-21 Dec-20 % Var.
Current Assets
Cash, cash equivalents and marketable securities 47,248 43,497 9 %
Total accounts receivable 13,014 11,523 13 %
Inventories 11,960 9,727 23 %
Other current assets 8,142 7,693 6 %
Total current assets 80,364 72,440 11 %
Non-Current Assets
Property, plant and equipment 113,827 109,551 4 %
Accumulated depreciation (51,644 ) (50,091 ) 3 %
Total property, plant and equipment, net 62,183 59,460 5 %
Right of use assets 1,472 1,278 15 %
Investment in shares 7,494 7,623 -2 %
Intangible assets and other assets 102,174 103,971 -2 %
Other non-current assets 17,880 18,294 -2 %
Total Assets 271,567 263,066 3 %
Liabilities & Equity Dec-21 Dec-20 % Var.
Current Liabilities
Short-term bank loans and notes payable 2,453 5,017 -51 %
Suppliers 22,745 17,195 32 %
Short-term leasing Liabilities 614 560
Other current liabilities 20,409 20,073 2 %
Total current liabilities 46,221 42,845 8 %
Non-Current Liabilities
Long-term bank loans and notes payable 83,329 82,461 1 %
Long Term Leasing Liabilities 891 746
Other long-term liabilities 13,554 14,557 -7 %
Total liabilities 143,995 140,609 2 %
Equity
Non-controlling interest 6,022 5,583 8 %
Total controlling interest 121,550 116,874 4 %
Total equity 127,572 122,457 4 %
Total Liabilities and Equity 271,567 263,066 3 %
December 31, 2021
Debt Mix % Total Debt (1) % Interest Rate Floating (1) (2) Average Rate
Currency
Mexican Pesos 53.5 % 9.5 % 7.5 %
U.S. Dollars 27.9 % 14.6 % 2.6 %
Colombian Pesos 1.7 % 0.0 % 5.9 %
Brazilian Reals 14.7 % 55.6 % 8.7 %
Uruguayan Pesos 1.7 % 0.0 % 6.6 %
Argentine Pesos 0.6 % 0.0 % 41.0 %
Total Debt 100 % 15.2 % 6.4 %
(1) After giving effect to cross- currency swaps and financial leases.
(2) Calculated by weighting each year´s outstanding debt balance mix.
Debt Maturity Profile
Financial Ratios FY 2021 FY 2020 Δ%
Net debt including effect of hedges (1)(3) 35,243 42,194 -16.5 %
Net debt including effect of hedges / Operating cash flow (1)(3) 0.91 1.13
Operating cash flow/ Interest expense, net (1) 7.39 5.46
Capitalization (2) 40.7 % 42.7 %
(1) Net debt = total debt - cash
(2) Total debt / (long-term debt + shareholders' equity)
(3) After giving effect to cross-currency swaps.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 32 of 35
COCA-COLA FEMSA
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES
Volume
4Q 2021 4Q 2020 YoY
Sparkling Water (1) Bulk (2) Stills Total Sparkling Water (1) Bulk (2) Stills Total Δ %
Mexico 337.6 21.3 67.7 31.6 458.1 322.1 17.0 65.0 27.9 432.0 6.0 %
Guatemala 32.5 0.9 - 2.0 35.3 28.8 0.9 - 1.3 31.0 14.1 %
CAM South 31.9 1.7 0.1 4.6 38.4 27.2 1.3 0.1 3.4 32.0 19.8 %
Mexico and Central America 401.9 23.9 67.8 38.2 531.8 378.1 19.3 65.1 32.6 495.0 7.4 %
Colombia 66.9 8.7 3.8 6.9 86.2 60.8 5.0 4.1 4.2 74.2 16.2 %
Brazil (3) 234.8 16.6 2.3 18.5 272.1 239.2 16.0 2.8 17.4 275.4 -1.2 %
Argentina 38.2 4.0 1.2 3.8 47.2 35.9 3.0 1.8 3.9 44.6 5.8 %
Uruguay 12.1 1.6 - 0.4 14.0 11.6 1.3 - 0.2 13.1 7.2 %
South America 352.0 30.8 7.3 29.5 419.6 347.6 25.2 8.8 25.7 407.2 3.0 %
TOTAL 753.9 54.7 75.1 67.7 951.3 725.6 44.5 73.8 58.2 902.2 5.4 %

(1) Excludes water presentations larger than 5.0 Lt ; includes flavored water.

(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water

Transactions
4Q 2021 4Q 2020 YoY
Sparkling Water Stills Total Sparkling Water Stills Total Δ %
Mexico 1,871.3 154.7 226.4 2,252.4 1,726.9 124.5 190.4 2,041.8 10.3 %
Guatemala 250.2 8.5 20.0 278.6 206.0 9.2 12.8 228.1 22.1 %
CAM South 225.2 11.3 48.8 285.4 177.4 8.9 30.4 216.7 31.7 %
Mexico and Central America 2,346.7 174.5 295.2 2,816.4 2,110.4 142.6 233.6 2,486.6 13.3 %
Colombia 455.2 93.8 66.9 615.9 375.9 56.5 36.0 468.5 31.5 %
Brazil (3) 1,470.8 147.2 205.3 1,823.2 1,402.9 135.8 175.8 1,714.4 6.3 %
Argentina 188.5 25.3 28.6 242.5 156.3 16.5 24.7 197.6 22.7 %
Uruguay 56.4 6.3 3.5 66.2 50.7 4.9 1.9 57.5 15.2 %
South America 2,170.9 272.7 304.3 2,747.9 1,985.7 213.8 238.5 2,438.0 12.7 %
TOTAL 4,517.6 447.2 599.5 5,564.3 4,096.1 356.3 472.1 4,924.5 13.0 %
Revenues
Expressed in million Mexican Pesos 4Q 2021 4Q 2020 Δ%
Mexico 24,857 22,160 12.2 %
Guatemala 2,927 2,425 20.7 %
CAM South 3,007 2,487 20.9 %
Mexico and Central America 30,792 27,073 13.7 %
Colombia 4,146 3,202 29.5 %
Brazil (4) 14,558 16,065 -9.4 %
Argentina 2,640 1,799 46.7 %
Uruguay 1,137 977 16.4 %
South America 22,481 22,043 2.0 %
TOTAL 53,273 49,116 8.5 %
(3) Volume and transactions in Brazil do not include beer.
(4) Brazil includes beer revenues of Ps.1,429.4 million for the fourth quarter of 2021 and Ps.4,065.2 million for the same period of the previous year.
(1) Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.
(1) Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 33 of 35
COCA-COLA FEMSA
FY - VOLUME, TRANSACTIONS & REVENUES
Volume
FY 2021 FY 2020 YoY
Sparkling Water (1) Bulk (2) Stills Total Sparkling Water (1) Bulk (2) Stills Total Δ %
Mexico 1,304.0 82.3 281.4 122.3 1,790.0 1,295.6 70.2 281.8 111.6 1,759.2 1.8 %
Guatemala 120.3 3.8 - 7.2 131.3 106.6 3.2 - 4.3 114.1 15.1 %
CAM South 113.5 6.4 0.5 16.2 136.6 99.9 5.2 0.5 12.7 118.3 15.4 %
Mexico and Central America 1,537.8 92.5 282.0 145.6 2,057.9 1,502.1 78.6 282.3 128.6 1,991.6 3.3 %
Colombia 234.6 26.7 15.1 21.6 297.9 208.4 16.7 16.5 13.2 254.8 16.9 %
Brazil (3) 786.3 48.4 7.9 60.6 903.2 755.5 46.8 9.6 51.0 862.9 4.7 %
Argentina 125.1 11.8 5.4 13.1 155.4 108.2 9.7 5.8 10.1 133.8 16.2 %
Uruguay 37.7 4.9 - 0.8 43.4 36.7 4.0 - 0.5 41.2 5.2 %
South America 1,183.7 91.8 28.3 96.2 1,399.9 1,108.8 77.2 32.0 74.8 1,292.7 8.3 %
TOTAL 2,721.4 184.3 310.3 241.8 3,457.8 2,610.9 155.8 314.3 203.4 3,284.3 5.3 %

(1) Excludes water presentations larger than 5.0 Lt ; includes flavored water.

(2) Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water

Transactions
FY 2021 FY 2020 YoY
Sparkling Water Stills Total Sparkling Water Stills Total Δ %
Mexico 7,105.8 604.8 859.0 8,569.5 6,915.6 521.6 765.4 8,202.6 4.5 %
Guatemala 922.5 39.1 73.5 1,035.2 748.7 33.1 37.8 819.6 26.3 %
CAM South 797.7 41.7 165.8 1,005.3 656.9 33.4 125.9 816.2 23.2 %
Mexico and Central America 8,826.0 685.6 1,098.4 10,610.0 8,321.2 588.2 929.1 9,838.4 7.8 %
Colombia 1,557.1 289.6 199.5 2,046.2 1,256.3 200.2 116.2 1,572.8 30.1 %
Brazil (3) 4,798.5 419.5 648.6 5,866.6 4,319.3 390.9 498.1 5,208.3 12.6 %
Argentina 599.3 71.7 94.8 765.8 474.8 53.7 64.6 593.1 29.1 %
Uruguay 175.0 18.6 8.5 202.1 162.9 16.6 5.6 185.1 9.2 %
South America 7,130.0 799.4 951.5 8,880.9 6,213.3 661.4 684.6 7,559.2 17.5 %
TOTAL 15,956.0 1,485.1 2,049.9 19,490.9 14,534.5 1,249.6 1,613.6 17,397.7 12.0 %
Revenues
Expressed in million Mexican Pesos FY 2021 FY 2020 Δ%
Mexico 94,762 87,833 7.9 %
Guatemala 10,535 9,328 12.9 %
CAM South 10,497 9,622 9.1 %
Mexico and Central America 115,794 106,783 8.4 %
Colombia 14,180 12,049 17.7 %
Brazil (4) 53,051 56,191 -5.6 %
Argentina 8,408 5,468 53.8 %
Uruguay 3,371 3,124 7.9 %
South America 79,010 76,831 2.8 %
TOTAL 194,804 183,615 6.1 %
(3) Volume and transactions in Brazil do not include beer.
(4) Brazil includes beer revenues of Ps. 10,677.2 million for the full year of 2021 and Ps. 15,228.1 million for the same period of the previous year.
(1) Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-once servings) and, when applied to soda fountains, refers to volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.
(2) Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.
Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 34 of 35
COCA-COLA FEMSA
MACROECONOMIC INFORMATION
Inflation (1)
4Q21 FY
Mexico 2.42 % 7.36 %
Colombia 1.54 % 5.62 %
Brazil 3.80 % 10.06 %
Argentina 11.07 % 50.94 %
Costa Rica 2.02 % 3.30 %
Panama 0.62 % 2.60 %
Guatemala 1.42 % 3.07 %
Nicaragua 3.45 % 7.21 %
Uruguay 1.28 % 7.96 %

(1) Source: inflation estimated by the company based on historic publications from the Central Bank of each country.

Average Exchange Rates for each period (2)
Quarterly Exchange Rate
(Local Currency per USD)
Year to Date Exchange Rate
(Local Currency per USD)
4Q21 4Q20 Δ% FY 21 FY 20 Δ%
Mexico 20.75 20.63 0.6 % 20.28 21.49 -5.6 %
Colombia 3,879.98 3,662.52 5.9 % 3,744.25 3,695.27 1.3 %
Brazil 5.58 5.40 3.5 % 5.40 5.16 4.6 %
Argentina 100.50 80.08 25.5 % 102.72 84.15 22.1 %
Costa Rica 638.48 609.08 4.8 % 624.10 588.29 6.1 %
Panama 1.00 1.00 0.0 % 1.00 1.00 0.0 %
Guatemala 7.73 7.79 -0.8 % 7.74 7.72 0.2 %
Nicaragua 35.43 34.72 2.1 % 35.17 34.34 2.4 %
Uruguay 43.98 42.60 3.2 % 43.55 42.01 3.7 %
End-of-period Exchange Rates
Closing Exchange Rate
(Local Currency per USD)
Closing Exchange Rate
(Local Currency per USD)
Dec-21 Dec-20 Δ% Sep-21 Sep-20 Δ%
Mexico 20.58 19.95 3.2 % 20.60 22.46 -8.3 %
Colombia 3,981.16 3,432.50 16.0 % 3,834.68 3,878.94 -1.1 %
Brazil 5.58 5.20 7.3 % 5.44 5.64 -3.6 %
Argentina 102.72 84.15 22.1 % 98.74 76.18 29.6 %
Costa Rica 645.25 617.30 4.5 % 629.71 606.68 3.8 %
Panama 1.00 1.00 0.0 % 1.00 1.00 0.0 %
Guatemala 7.72 7.79 -0.9 % 7.73 7.79 -0.7 %
Nicaragua 35.52 34.82 2.0 % 35.34 34.60 2.2 %
Uruguay 44.70 42.34 5.6 % 42.94 42.58 0.8 %

(2) Average exchange rate for each period computed with the average exchange rate of each month.

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022
Page 35 of 35

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FEMSA - Fomento Económico Mexicano SA de CV published this content on 28 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2022 13:24:04 UTC.