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 — Deutsche Bank Global Consumer Conference 2022
38 slides from Coca-cola Femsa Sab De Cv Units Cons Of 5 Shs -l- + 3 Shs Series -b-'s conference presentation, Jun 16, 2022
Slide 1: June 16, 2022
JUNE 16, 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 PERFORMANCE BY COUNTRY 03 FINANCIAL HIGHLIGHTS 3
Slide 4: Our Renewed Strategy
AGENDA 01 OUR RENEWED STRATEGY 4
Slide 5: Coca-Cola FEMSA at a Glance
COCA-COLA FEMSA AT A GLANCE OPERATING FIGURES (FY21) +266 million 2 million 49 260 people served points of sale bottling plants distribution centers FINANCIAL HIGHLIGHTS (LTM 1Q22) OUR FOOTPRINT(3) +3.5 billion(1) +US$1.9 billion volume Operating Cash Flow(2) +US$9.9 billion 19.8% revenues Operating
Slide 6: Resilient Business Model
RESILIENT BUSINESS MODEL We have effectively navigated volatile environments maintaining a high profitability base. SOLID OPERATING CASH FLOW MARGIN(1) KEY STRENGTHS 21.00% 20.3% 19.8% 19.9% 19.4% 19.1% 18.25% S TRO NG MA RK E T P O S I TION 15.50% 12.75% E X TRE ME LY S O L ID E X E CUTIO N FI NA N
Slide 7: Vast Growth Opportunities in Our Industry
VAST GROWTH OPPORTUNITIES IN OUR INDUSTRY LATAM BEVERAGE CATEGORIES BY % LATAM INDUSTRY TOTAL VOLUME OF VOLUME MIX IN LITERS, 2021 ’22 - ’26 CAGR Carbonated Soft Drinks 50, 216 2.0% Cold Beverages 35% Bottled water 29, 289 3.4% Non-commercial 48% US$ 250+ bn Juices commercial beverages 9, 935 3.1% w
Slide 8: 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 8
Slide 9: Value Creation Journey
VALUE CREATION JOURNEY This revamped vision is the result of a continuous value creation journey within Coca-Cola FEMSA. O MNI CHA NNE L & FUL L DI G I TA LIZE D MUL TI -CA TE GORY CO MME RCI AL B O TTL E R P L A YE R E CO S YS TE M • Sales force automation • Digital platforms • Digital ecosystem •
Slide 10: Six Strategic Corridors
SIX STRATEGIC CORRIDORS Sustainability Winning Portfolio Value enhancing Omnichannel Platform acquisitions Agile, digital savvy, people Digitize our core centric culture 10
Slide 11: Building a Winning Portfolio
BUILDING A WINNING PORTFOLIO NCB s G RO W TH A ND A FFO RDA B ILITY MI X E NHA NCE ME NT MUL TI -CA TE GORY I NNO V A TION +US$500m 62% mix Currently pilot testing with of zero or reduced calories in invested in refillable capacity CSDs. Substantial progress in our leading brands to increase over th
Slide 12: Omnichannel Multi-Category Commercial Platform
OMNICHANNEL MULTI-CATEGORY COMMERCIAL PLATFORM B2B PLATFORM D2C PLATFORM Developing a D2C business model to market our Company’s products For an improved customer experience, anytime, anywhere directly to consumers’ homes +1 M Web clients Chatbot Contact ~600k digitalized households Conversational C
Slide 13: Pre Seller, Chatbot, App, Website
PRE SELLER CHATBOT APP WEBSITE 13
Slide 14: Evolution of Our Omnichannel Platform
EVOLUTION OF OUR OMNICHANNEL PLATFORM MONTHLY DIGITAL PURCHASERS (1) MONTHLY DIGITAL REVENUE (1) (K) (US$ MM) +400 ~US $300 +80 YTD April ‘22 +60 +265 ~US $360 FY 2021 +130 +13 Jan '21 Dec '21 Mar '22 Jan '21 Dec '21 Mar '22 (1) Omnichannel Digital Platforms (web, chatbot, app) 14
Slide 15: Performance by Country
PERFORMANCE BY COUNTRY % digital monthly purchasers total clients 0.625 +50% 0.5 0.375 +35% +30% +26% 0.25 +15% +8% 0.125 +1% +1% 0 Mar '21 Mar '22 Mar '21 Mar '22 Mar '21 Mar '22 Mar '21 Mar '22 15
Slide 16: Digitizing Our Core
DIGITIZING OUR CORE W E A RE E NA B L I NG O UR DI G I TA L TRANS FO RMATION 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 initiatives 1
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 FOOTPRINT CATEGORY- CAPABILITIES CONSOLIDATI ON EXPANDING INTEGRATION ACQUISITIONS • Exploring opportunities to shape our Company’s portfolio and footprint of the future. With a very disciplined approach to • Prioritizing adjacent categories and capabil
Slide 19: Sustainability targets and progress
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$114.6 million robust sustainable financing strategy invested in projects in circular economy, 2020 to 20% in 2021. water stewardship, and climate action.
Slide 20: First Green Bond and Sustainability-Linked Bond
1st Green Bond issuance within the Coca-Cola System 1st sustainability-linked bond in Mexico 20
Slide 21: Sustainability Goals
SUSTAINABILITY GOALS CL E A N E NE RG Y I N W A TE R E FFI CIE NCY % RE CYCL E D CO NTE NT MA NUFA CTURING 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
Slide 22: 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: ACCELERATING OUR MORE ALIGNED EXPLORING NEW VENTURES DIGITAL STRATEGY Aligned growth plans, business As the system continues to Develop a joint digital strategy economics and management evolv
Slide 23: Performance by Country
AGENDA 02 PERFORMANCE BY COUNTRY 23
Slide 24: Strong Performance in All of Our Markets
STRONG PERFORMANCE IN ALL OF OUR MARKETS VOLUME GROWTH OPERATING CASH FLOW GROWTH BY DIVISION(1) LTM 1Q22 VS 1Q21 LTM 1Q22 VS 1Q21(2) Mexico 3% +5% Mexico and vs pre- pandemic Central America Mexico 11% Brazil 9% South America Brazil 22% Colombia 21% 0 0.055 0.11 0.165 0.22 0.275 Guatemala 13% Conso
Slide 25: Mexico: Superior Execution Capabilities
MEXICO: SUPERIOR EXECUTION CAPABILITIES A F F O R D A B I L I T Y, NCBS GROWTH O MN I C H A N N E L VOLUME EVOLUTION R GM & C OOLERS & INNOVAT I ON ACCELERATION 427.5 (MM UC) +4% 424 +30% clients 422 -1% -3% are monthly active purchasers 420 419 85% coverage 412.5 408 ~600K 405 households in +45K Me
Slide 26: Brazil: Consistent Volume Growth
BRAZIL: CONSISTENT VOLUME GROWTH LTM VOLUME EVOLUTION (MM UC) (1) COCA-COLA B E E R A N D MU L T I - O MN I C H A N N E L ZERO SUGAR & CATEGORY EXPANSION 1000 5% 945 D U A L P A C KS 866 840 +50% clients 805 770 are monthly 750 active purchasers 500 250 0 2018 2019 2020 2021 2022 (1) Last twelve mon
Slide 27: Colombia: A Solid Turnaround
COLOMBIA: A SOLID TURNAROUND VOLUME EVOLUTION 100 FOCUS ON AFFORDABILITY SIGNIFICANTLY (MM UC) C LI EN T C R EAT IO N T HROU GH I MPR OVI N G +19% R E T U R N A B I LI T Y SERVICE LEVELS 80 80 +4% +8% Recognized as 68 +100K best supplier 65 clients created in over the past 60 60 2021 three years by
Slide 28: Guatemala: Capturing All Opportunities
GUATEMALA: CAPTURING ALL OPPORTUNITIES 175 LTM VOLUME EVOLUTION (MM UC)(1) DRIVING EXECUTION ACHIEVED +13 AFFORDABILITY E MB E D D E D I N MA R K E T I N MU L T I - S E R V E OUR CULTURE LEADERSHIP IN 140 % 134 AN D SI N GLE - N AR T D CAGR SERVE 119 107 105 + 10pp 93 SOS in NARTD category from 2017
Slide 29: Financial Highlights
AGENDA 03 FINANCIAL HIGHLIGHTS 29
Slide 30: Protect the Short Term with a Long-Term View
PROTECT THE SHORT TERM WITH A LONG-TERM VIEW A disciplined raw material and currency hedging … substantially mitigating margin pressures and ensuring solid strategy… financials LTM YEAR OVER YEAR Raw Material Hedge Position 2022 Operating Volume Revenue Cash Flow(1) 7.3% 7.5% 9.2% PET ~70% AS OF MAR
Slide 31: Key Takeaways
KEY TAKEAWAYS K O F TO DA Y K O F I N THE FUTURE Renewed strategy… to achieve long-term ambitions. while accelerating towards a very promising long-term. Right capabilities to protect the short term… Omnichannel strategy showing results and rapidly positioning us better than ever to capture exponent
Slide 32: Investor relations contacts
Jorge Collazo | jorge.collazo@kof.com.mx Lorena Martin | lorena.martinl@kof.com.mx 32
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Slide 34: Strong Financial Results
STRONG FINANCIAL RESULTS Figures in USD millions(2) TOTAL REVENUES (1) GROSS PROFIT (1) OPERATING INCOME (1) VOLUME % margin % margin 6000. 1. 3,330 3,366 3,539 1500. 1,394 1. 9,977 3,291 9,865 4,501 1,281 1,311 9,567 4,393 4,474 4500. 1,175 8,499 3,809 0.75 0.75 45.9% 45.1% 44.8% 45.4% 3000. 0.5 0.
Slide 35: Solid Balance Sheet
SOLID BALANCE SHEET Figures in USD millions(2) (1) (3) 8400. (1) (4) (1) CAPITAL EXPENDITURES TOTAL DEBT CASH AND CASH EQUIVALENTS 1600. % OF REVENUES 2600. 2,351 2,476 7.9% 5.9% 5.1% 4,162 4,187 1,677 5.6% 776 4200. 3,881 3,618 800. 567 511 1,219 472 0. 0. 0. LTM19 LTM20 LTM21 LTM22 LTM19 LTM20 LTM
Slide 36: Debt Profile 1Q22
DEBT PROFILE 1Q22 Others 4% BRL Floating 17% 20% DEBT MIX BY MXN DEBT MIX BY CURRENCY 53% RATE USD 27% Fixed 80% 36
Slide 37: Income Statement Summary
INCOME STATEMENT SUMMARY Figures in millions of USD 1Q22 1Q21 Δ% LTM 2022 LTM 2021 Δ% Total Revenues 2,495 2,199 13.4% 9,865 8,499 16.1% Gross Profit 1,101 980 12.3% 4,474 3,809 17.5% Gross Margin (%) 44.1% 44.6% -50 bps 45.4% 44.8% +60 bps Operating Income 334 290 14.9% 1,394 1,175 18.6% Operating
Slide 38: Balance Sheet Summary
BALANCE SHEET SUMMARY Figures in millions of USD Mar 2022 Dec 2021 Δ% Total Current Assets 4,201 3,905 8% Total Assets 14,200 13,196 8% Total Current Liabilities 3,035 2,246 35% Total Liabilities 8,027 6,997 15% Total Equity 6,173 6,199 0% Total Liabilities and Equity 14,200 13,196 8% 38
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