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 — Debt Investor Presentation (August 2020)
30 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s debt investor presentation, August 2020
Slide 1: Coca-Cola FEMSA Roadshow Presentation
Coca-Cola FEMSA Roa ds h ow P res en t a tio n UPDATED AS OF AUGUST 2020
Slide 2: Disclaimer
Disclaimer This presentation, prepared by or at the direction of Coca-Cola FEMSA, S.A.B. de C.V. (the “Company”), is solely for informational purposes and is strictly confidential. Neither the information contained in this presentation, nor any further information made available by the Company or an
Slide 3: Summary of the Offering
Summary of the Offering Issuer: Coca-Cola FEMSA, S.A.B. de C.V. (“KOF” or “the Company”) Ranking: Senior Unsecured Notes Format: SEC Registered Issuer Ratings(1): A2 (negative) / A- (stable); Moody’s / Fitch Amount: USD Benchmark Size An amount equal to the net proceeds from the sale of the green bo
Slide 4: Agenda
Agenda 1. Company Overview 2. KOF’s COVID-19 Strategy and 2Q’20 Update 3. KOF’s Sustainability Strategy Appendix
Slide 5: Company Overview
Company Overview
Slide 6: Coca-Cola FEMSA at a Glance
Coca-Cola FEMSA at a Glance Largest franchise bottler of Coca-Cola trademark beverages in the Attractive Regions Strategic Partner to The Cola-Cola world in terms of volume System Representing 11% of Global Volume(6) We are a multinational, multi-category beverage leader, serving (7) over 261 mi
Slide 7: Investment Highlights
Investment Highlights PRESENCE IN MARKETS WITH MARKET LEADERSHIP STRATEGIC PARTNER TO THE LONG TERM CONSUMPTION SUPPORTED BY STRONG COCA-COLA COMPANY - KOF IS TAILWINDS BRANDS AND CONTINUOUS THE LARGEST FRANCHISE INNOVATION ADDRESSING BOTTLER IN THE WORLD BY CONSUMER DEMANDS VOLUME CONSUMER-CENTRIC
Slide 8: Strategic Partner to Coca-Cola Company and Markets with Consumption Tailwinds
Strategic Partner to The Coca-Cola Company and the Largest 1 Franchise Bottler in the World by Volume 2 Presence in Markets with Long-term Consumption Tailwinds KOF Sells ~11% of The Argentina & Uruguay (Volume as of 2019 in mmUC(1)) Coca-Cola Company Colombia 3,369 5% (“KO”)’s global volume Central
Slide 9: Market Leadership, Brand Portfolio and Consumer-centric Business Model
3 Market Leadership Supported by a Portfolio of Brands and Continuous Innovation 4 Consumer-centric Business Model Strongly Committed to Sustainability Goals Coca-Cola Brands Powerful consumer-centric business model 5 World Best The Coca-Cola Logo is Brand Recognized by (1) Digital (Interbrand 2019)
Slide 10: Cash Flow from Operations, Leverage and Management Team
Track-Record of Delivering Strong Cash Flow 5 with a Disciplined Approach to Leverage 6 Experienced Management Team Years at KOF Green project approver (Figures in Ps.bn) +25 +2 +8 Cash Flow from Operations $32.5 $33.5 $31.3 $26.5 $27.6 $23.7 $24.4 $23.2 $22.1 John Constantino José Ramón $16.7 Santa
Slide 11: KOF's COVID-19 Strategy and 2Q'20 Update
KOF’s COVID-19 Strategy and 2Q’20 Update
Slide 12: COVID-19 Strategy – KOF's 5 C's Program Key Actions
COVID-19 Strategy – KOF’s 5 C’s Program Key Actions Guiding our business through short-term operating disruptions while ensuring execution of our long-term goals Collaborators Clients Consumers Communities Cash Flow Leverage our direct to Remain close to our clients and Help communities in need Impl
Slide 13: Strategy Yielding Successful Results as Demonstrated by 2020 Performance
KOF’s Strategy Yielding Successful Results as Demonstrated by 2020 Performance Resilient Volume Performance June 2020 YTD vs. June 2019 YTD Ability to Mitigate Resilient Margins June 2020 YTD vs. June 2019 YTD (3.4%)(1) (2.3%)(1) Headwinds GDP Growth GDP Growth (1.2%) / (17.3%)(2) +1.1% / (15.7%) (4
Slide 14: KOF's Sustainability Strategy
KOF’s Sustainability Strategy
Slide 15: Sustainability is Core to KOF's Business Model
Sustainability is Core to KOF’s Business Model Business Strategy Sustainability Framework Awards & Recognitions We are convinced that This enabler has specific Our performance has granted us Sustainability is a business priorities in HR, environment recognition amongst top enabler and community Sust
Slide 16: Building on Our Environmental Commitment
Building on Our Environmental Commitment Issuing Green bonds is the logical step forward to maximize the impact of our Green initiatives, to achieve our sustainability goals and to contribute to the achievement of the United Nations Sustainable Development Goals (UN SDGs). There are 3 main strategic
Slide 17: First Mexican Company to Have Science-Based Targets
First Mexican Company to Have Science-Based Targets, with Clear Action Plan emissions emissions 50% 20% 100% use by 2030 (1) (1) (1) renewable energy reduction reduction in own operations from suppliers 71% (2030 vs 2015) (2030 vs 2015) (2) renewable energy in Current 13% 16% Goals for 2030 Achieved
Slide 18: A Comprehensive Approach to Water Management
A Comprehensive Approach to Water Management Protect Produce Return Best-in-class water use efficiency Return to the environment 100% of Proactive Water Source water used in production of Stewardship Wastewater treatment with enough beverages quality to support aquatic life (1) Replenishment Current
Slide 19: Reforestation and Water Funds Impact & Results
National Reforestation and Water Harvesting Program Latin American Water Funds Partnership Reforestation project Tripartite collaboration 1 Government Focused on ecological restoration and social impact Water Funds finance green infrastructure projects to Reforestation is the most 2 NGOs ensure hydr
Slide 20: Leading The Way Towards Circular Economies Around Plastics
Leading The Way Towards Circular Economies Around Plastics As signatories of the Ellen McArthur Foundation’s New Plastics Economy Global Commitment, our approach towards circular economy is to design lightweight, recyclable packages with an increasing recycled content and collecting 100% of them aid
Slide 21: ECOCE and IMER PET Recycling
ECOCE: Placing Mexico as the Top PET recycler in America IMER: 1st Food-Grade PET Recycling Facility in LatAm A shared responsibility The first food-grade, mechanism created by bottle-to-bottle PET the Mexican CPG(1) recycling facility in companies to promote Latin America was collection and born in
Slide 22: Eligible Green Projects Aligned to Green Bond Principles and UN SDGs
Eligible Green Projects Are Aligned to The Green Bond Principles, 2018 (GBP) and Contribute to The Achievement of The UN SDGs 1 1 1 Our 0 Strategic Intent Climate Change Water Stewardship Circular Economy SDG Alignment Climate Change Adaptation Sustainable Water and Wastewater Pollution Preven
Slide 23: Appendix
Appendix Cala FEMSA
Slide 24: Consolidated Financial Summary
Consolidated Financial Summary Total Revenues Gross Profit Cash and Cash Equivalents Ps.mm Volume (million unit cases) Ps.mm Gross Margin Ps.mm -0.1% CAGR 2017 – 2Q’20 LTM 3,318 3,322 3,369 3,306 $41,473 $87,507 $83,508 $83,938 $84,160 $194,471 $183,256 $188,368 $182,342 45.6% 46.0% 45.0% 44.7% $23,
Slide 25: Consolidated Financial Summary (Cont'd)
Consolidated Financial Summary (Cont’d) Capital Expenditures(1) Total Debt(2) Ps.mm As % of Revenue(3) Ps.mm 7.0% 6.0% 5.9% 6.1% $12,802 $91,286 $11,415 $11,412 $83,360 $81,805 $10,891 $69,977 2017 2018 2019 2Q'20 LTM 2017 2018 2019 2Q'20 ____________________ Source: Coca-Cola FEMSA filings. 19 (1)
Slide 26: Consolidated Financial Summary
Consolidated Financial Summary (Figures in Ps.mm, unless otherwise stated) (1) 2017 2018 2019 6M'19 6M'20 2Q'20 LTM Income Statement Total revenues 183,256 182,342 194,471 94,444 88,341 188,368 YoY Growth 16.6% (0.5%) 6.7% (6.5%) Cost of goods sold (99,748) (98,404) (106,964) (51,349) (48,593) (104,
Slide 27: Green Bond Framework Summary
Green Bond Framework Summary 1 2 3 4 5 Project Evaluation Use of Proceeds Management of Proceeds Reporting External Review and Selection Climate Change Adaptation Our Sustainability Team will Our Sustainability and Finance Annually, until all the proceeds Second Party Opinion provided iden
Slide 28: Green Bond Framework Summary (Cont'd)
Green Bond Framework Summary (Cont’d) GBP Eligible Project Category Example Expected Impact Metrics % reduction in GHG emissions Climate Change Adaptation Renewable energy use Clean and Mass Transportation % reduction in GHG emissions % reduction in GHG emissions Energy Efficiency % reduction in ele
Slide 29: Use of Proceeds
Use of Proceeds Use of Proceeds Category SDG Target SDG Alignment Climate Change Adaptation Expenditures related to procurement and usage of climate change module software that will allow us to accurately measure our carbon footprint in a systematized manner and track progress against our science-
Slide 30: Use of Proceeds (Cont'd)
Use of Proceeds (Cont’d) GBP Eligible Project Category Eligibility Criteria and Example Projects SDG Alignment Environmentally Sustainable Expenditures related to preservation and reforestation initiatives in the countries where we Management of Living Natural have presence Resources and Land Use
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