Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- · BMV:KOF/UBL
Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b- — Coca-Cola FEMSA — Barclays Global Consumer Staples Conference 2022
27 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s conference presentation, September 2022
Slide 1: Barclays Global Consumer Staples Conference September 2022
John Santa Maria – CEO Constantino Spas - CFO Barclays Global Consumer Staples Conference September 2022
Slide 2: Disclaimer
DISCLAIMER FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements”. These forward-looking statements relate to Coca-Cola FEMSA, S.A.B. de C.V., its Subsidiaries (“KOF”), and their businesses and are based on KOF management’s good faith expectations regarding KOF and its bu
Slide 3: Agenda
AGENDA 01 OUR RENEWED STRATEGY 02 INDUSTRY LEADING CAPABILITIES 03 FINANCIAL HIGHLIGHTS 3
Slide 4: Agenda: Our Renewed Strategy
AGENDA 01 OUR RENEWED STRATEGY 02 INDUSTRY LEADING CAPABILITIES 03 FINANCIAL HIGHLIGHTS 4
Slide 5: Coca-Cola FEMSA at a Glance
COCA-COLA FEMSA AT A GLANCE THE LARGEST FRANCHISE BOTTLER OF COCA-COLA TRADEMARK BEVERAGES IN THE WORLD IN TERMS OF VOLUME +266 million 2 million 49 260 people served points of sale bottling plants distribution centers FINANCIAL HIGHLIGHTS (LTM 2Q22) OUR FOOTPRINT(3) +3.5 billion(1) +US$1.9 billion
Slide 6: Resilient Business Model
RESILIENT BUSINESS MODEL We have effectively navigated volatile environments maintaining a high profitability base. SOLID OPERATING CASH FLOW MARGIN(1) KEY STRENGTHS 21.00% 20.3% 19.8% 19.9% 19.4% 19.1% 18.25% S T R ONG M A R K E T POS IT ION 15.50% 12.75% E X T R E M E LY S OLID E X E CU T ION F IN
Slide 7: Vast Growth Opportunities in Our Industry
VAST GROWTH OPPORTUNITIES IN OUR INDUSTRY LATAM BEVERAGE CATEGORIES BY % LATAM INDUSTRY TOTAL VOLUME OF VOLUME MIX MILLION LITERS, 2021 ’22 - ’26 CAGR Carbonated Soft Drinks 50, 216 2.0% Cold Beverages 35% Bottled water 29, 289 3.4% Non-commercial Beverages US$ 250+ bn beverages whitespace Juices 9,
Slide 8: Better Aligned Than Ever with The Coca-Cola Company
BETTER ALIGNED THAN EVER WITH THE COCA-COLA COMPANY Driven by our enhanced cooperation framework we are now: MORE ALIGNED EXPLORING NEW VENTURES ACCELERATING OUR DIGITAL STRATEGY Aligned growth plans, business As the system continues to Develop a joint digital strategy economics and management evolv
Slide 9: Purpose and Vision
To accelerate our transformation into the growth model of the future, we refreshed our purpose and vision Purpose Vision Refresh the world anytime, Become the world’s preferred and anywhere most sustainable commercial ecosystem 9
Slide 10: Value Creation Journey
VALUE CREATION JOURNEY This revamped vision is the result of a continuous value creation journey within Coca-Cola FEMSA. OM N ICH ANNEL & F U LL D IG IT A LIZE D M U LT I - CA T EG ORY COM M E R CIA L B OT T LE R PLA Y E R E COS Y S T E M • Sales force automation • Digital platforms • Digital ecosys
Slide 11: Six Strategic Corridors
SIX STRATEGIC CORRIDORS 6 1 Sustainability Winning Portfolio 5 2 Value enhancing Omnichannel Platform acquisitions 4 3 Agile, digital savvy, people Digitize our core centric culture 11
Slide 12: Building a Winning Portfolio
BUILDING A WINNING PORTFOLIO A F F ORD ABILIT Y IN N OVAT ION M IX E N H A NCE ME NT M U LT I - CA T EG ORY pilot testing Currently +US$500m 62% mix Leveraging the popularity of with leading brands to increase our value proposition in the of zero or reduced calories in traditional channel invested i
Slide 13: Pre Seller, Chatbot, App, Website
PRE SELLER CHATBOT APP WEBSITE 13
Slide 14: Omnichannel Multi-Category Commercial Platform
OMNICHANNEL MULTI-CATEGORY COMMERCIAL PLATFORM B2B PLATFORM D2C PLATFORM For an improved customer experience, anytime, anywhere Developing a D2C business model to market our Company’s products directly to consumers’ homes Customers +1.1 M Web clients Chatbot Contact ~600k digitalized households Conv
Slide 15: Evolution of Our Omnichannel Platform
EVOLUTION OF OUR OMNICHANNEL PLATFORM MONTHLY DIGITAL PURCHASERS (1) MONTHLY DIGITAL REVENUE (1) (K) (US$ MM) +640 +90 +60 +265 +170 +28 ~USD ~USD $360 FY $550 Jan –Jun ‘22 2021 Jun '21 Dic '21 Jun '22 Jun '21 Dic '21 Jun '22 % DIGITAL MONTHLY PURCHASERS / TOTAL CLIENTS 0.6 25 +58% +58% +42% 0.5 0.3
Slide 16: Digitizing Our Core
DIGITIZING OUR CORE WE A R E E N A B LING OU R D IG IT A L T R A N SFORM AT ION Our digital and analytics hub is transforming our advanced analytics and data management • Implementing a robust capabilities. architecture from the core • Automating processes • Adapting enablers to scale our initiative
Slide 17: Digital-Savvy People Centric Culture
DIGITAL-SAVVY PEOPLE CENTRIC CULTURE We functionalized our organization, ensuring agility and nimbleness. TRANSFORMING KOF THROUGH TALENT Our talent is the competitive Enabling key organizational Developing key initiatives through advantage to reach our strategic capabilities to meet evolving Agile
Slide 18: Actively Pursuing Value-Enhancing Acquisitions
ACTIVELY PURSUING VALUE-ENHANCING ACQUISITIONS FOOTPRI NT CATEGORY - CAPABI LI TI ES CONSOLI DATI ON EXPANDI NG I NTEGRATI ON ACQUI SI TI ONS • Exploring opportunities to shape our Company’s portfolio and footprint of the future. With a very disciplined approach to • Prioritizing adjacent categories
Slide 19: Sustainability progress highlights
We are on track to meet our The percentage of women in leadership sustainability targets, on the back of a 14% in positions has increased from US$115 million robust sustainable financing strategy invested in projects in circular economy, 2020 to 20% in 2021. water stewardship, and climate action. +1
Slide 20: Sustainability Goals
SUSTAINABILITY GOALS CLEAN ENERGY IN WATER EFFICIENCY % RECYCLED CONTENT MANUFACTURING 2026 GOAL: 2030 GOAL: 2030 GOAL: 1.26 lt of water used per liter of 50% of recycled resin (rPET) in Reduce 50%* absolute GHG beverage produced our PET bottles emissions from our operation 1.77 1.72 31% 85% 1.65 29
Slide 21: Agenda: Industry Leading Capabilities
AGENDA 01 OUR RENEWED STRATEGY 02 INDUSTRY LEADING CAPABILITIES 03 FINANCIAL HIGHLIGHTS 21
Slide 22: Industry Leading Capabilities to Win in the Market
INDUSTRY LEADING CAPABILITIES TO WIN IN THE MARKET AFFORDABILITY AND REVENUE GROWTH CUSTOMER SEGMENTATION AND POINT OMNICHANNEL ACCELERATION MANAGEMENT OF SALE EXECUTION • Unmatched affordability and RGM • Relentless passion to serve our • Digitizing the traditional trade in customers with excellenc
Slide 23: Strong Performance Across Our Markets
STRONG PERFORMANCE ACROSS OUR MARKETS VOLUME GROWTH OPERATING CASH FLOW GROWTH BY DIVISION(1) LTM 2Q22 VS 2Q21 LTM 2Q22 VS 2Q21(2) 4% Mexico and Central America 10% 10% South America 6% 21% 13% Consolidated 9% 12% +9% vs pre- 8% pandemic 0 0.055 0.11 0.165 0.22 0.275 (1) Operating cash flow = operat
Slide 24: Agenda: Financial Highlights
AGENDA 01 OUR RENEWED STRATEGY 02 INDUSTRY LEADING CAPABILITIES 03 FINANCIAL HIGHLIGHTS 24
Slide 25: Protect the Short Term with a Long-Term View
PROTECT THE SHORT TERM WITH A LONG-TERM VIEW A disciplined raw material and currency … substantially mitigating margin pressures and ensuring hedging strategy… solid financials LTM GROWTH Free Cash Flow Hedge Hedge Raw Material Operating Cash Flow(1) Volume Revenue generation(2) 2022 2023 8.5% 8.3%
Slide 26: Key Takeaways
KEY TAKEAWAYS K OF T OD A Y K OF IN T H E F U T U R E Renewed strategy… to achieve long-term ambitions. while accelerating towards a very promising long- Right capabilities to protect the short term… term. Omnichannel strategy showing results and rapidly positioning us better than ever to capture ac
Slide 27: Investor Relations Contacts
Jorge Collazo | jorge.collazo@kof.com.mx Lorena Martin | lorena.martinl@kof.com.mx 27
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