Fomento Economico Mexicano Sab De Cv Units Cons. Of 5 Shsb · BMV:FEMSA/UB
Fomento Economico Mexicano Sab De Cv Units Cons. Of 5 Shsb — Mexican Economic Development — Investor Presentation (February 2023)
24 slides from Fomento Economico Mexicano Sab De Cv Units Cons. Of 5 Shsb's investor presentation, Feb 17, 2023
Slide 1: FEMSA Forward: Focused Leadership in Retail and Beverages
FEMSA Forward Focused Leadership in Retail and Beverages February 2023
Slide 2: Disclaimer
Disclaimer Confidentiality The following materials (the “Confidential Information”) have been prepared by Fomento Economico Mexicano, S . A . B . de C . V . (together with its subsidiaries, the “Company”) and are being furnished to you solely for your information on a confidential basis and may not
Slide 3: Agenda for today
• FEMSA Value Creation Model & Track Record • Background on Strategic Review • FEMSA Forward Strategy • The Roadmap 3 Agenda for today 3
Slide 4: Recent Developments – 4Q22 Results
12 % 21% 23 % Recent Developments – 4Q22 Results Based on preliminary unaudited figures for the fourth quarter of 2022 , FEMSA’s total consolidated revenues increased 23 % driven by growth across all of FEMSA’s business units . Over the same period, gross profit increased 21 % and income from operat
Slide 5: FEMSA's capabilities-driven value creation model
FEMSA’s capabilities - driven value creation model FEMSA leverages its core capabilities, understanding and solving the daily needs of its customers to generate long - term value… • Reaching and serving our clients and customers through frequent interactions and high levels of capillarity. • Providi
Slide 6: Consistent track record sets the stage for FEMSA Forward
169,702 201,540 238,309 258,097 263,449 311,589 399,507 439,932 469,744 506,711 492,966 555,516 638,345 Consistent track record sets the stage for FEMSA Forward 6 Full Year Revenues (in millions of MXN pesos) 11.7% MXN CAGR (7.2% USD CAGR 1 ) 2011 2010 2 2014 2013 2021 2012 2017 2015 2016 2018 2019
Slide 7: 2022 Strategic Review Background
2022 Strategic Review 7 Background During 2022, we conducted a thorough review of FEMSA’s strategy to ensure Board and management team alignment towards value maximization Defined a clear set of strategic priorities Detailed a comprehensive long - term strategy Defined the right structure to achieve
Slide 8: Defining a clear set of strategic priorities for FEMSA
Defining a clear set of strategic priorities for FEMSA 8 Continued Strong Growth Go Digital Balanced Risk/Return Profile Rooted in Sustainability Enhance our Talent and Culture Proactive Engagement with Audiences WHATs HOWs With our c ustomers and consumers at the center of everything we do Clear pr
Slide 9: Retail, Beverages and Digital present the most compelling value creation opportunities
Retail, Beverages and Digital together present the most compelling value creation opportunities for FEMSA, and will command our full focus going forward The Long - Range plan process generated an actionable set of conclusions Meaningful value creation potential across our businesses Retail , Beverag
Slide 10: Strategic Clarity: Retail and Beverages, enabled by Digital
Strategic Clarity: Retail and Beverages, enabled by Digital 10 A focused leader in Retail and Beverages , leveraged and connected by a Digital customer - centric ecosystem to maximize value creation Retail Excellent long - term growth opportunities, comprised of Proximity, Health, and Fuel . Coca -
Slide 11: Retail: More OXXO, more formats, more drugstores
69% 4% 17% 10% +DD% CAGR 5 Total Revenues 71% 11% 12% 6% More OXXO, more formats, more drugstores • Keep growing OXXO’s footprint in Mexico while developing other formats such as OXXO Smart, Bara, Pronto, and Andatti Drive . • Accelerate expansion in South America . • Explore the Proximity Retail sp
Slide 12: Coca-Cola FEMSA: global benchmark bottler with compelling opportunities
…with compelling opportunities Today A global benchmark bottler… Tomorrow Competitive strength, cash flow and optionality 12 Coca - Cola FEMSA • Maturing its omnichannel, multi - category platform and working to enable and evolve the traditional retail channel in Mexico, aiming to leverage unique an
Slide 13: Digital@FEMSA: Evolving the Spin ecosystem
…to become the everyday ally for 30 million active users Today Building the core and gaining relevant traction… Tomorrow Evolving the Spin ecosystem Digital@FEMSA 13 Loyalty Ecosystem Rewarding Spin and OXXO users for their loyalty Creating personalized benefits for merchants ..and more to come Reac
Slide 14: FEMSA Forward structure
Proportional Revenue Proportional Operating Income 58% 15% 13% 10% 3% 79% 21% 49% 23% 20% 5% 2% 68% 32% 14 FEMSA Forward structure Structural Simplicity: Retail will contribute more than two - thirds of revenue and profits FEMSA Retail Coca - Cola FEMSA FEMSA Retail Coca - Cola FEMSA 2022 Contributi
Slide 15: Strategic Priorities FEMSA Forward
Strategic Priorities FEMSA Forward 15 • Capabilities - driven value creation model: − Accelerated growth − Broad and deep d igitalization • Resilient, large - scale, consumer - centric businesses. • Strong long - term organic and inorganic growth potential across core verticals. • Operational excell
Slide 16: The Roadmap: Decisive actions to capture compelling returns
We will seek strategic alternatives for Envoy Solutions. FEMSA’s investment in Heineken will be divested, subject to market conditions. We will seek strategic alternatives for FEMSA’s other minority investment and other non - core, non - strategic business units. FEMSA will seek to reduce existing d
Slide 17: Strategic and Financial Framework: Long-Term Targets
Strategic and Financial Framework 17 Long - Term Targets Dynamic Revenue and EBITDA CAGR across operations Strong Growth ~ Low double - digit CAGR 1 Revenues & EBITDA Leverage technology at every level, building our digital ecosystem Digitalization + 30 million active users of our digital ecosystem
Slide 18: Thank You
FEMSA Thank You
Slide 19: Q&A
Q&A
Slide 20: 20
20
Slide 21: Appendix
FEMSA Appendix
Slide 22: Proportional Revenues & Operating Income Reconciliation of Non-IFRS Metrics
Proportional Revenues & Proportional Operating Income Reconciliation of Non - IFRS Metrics Reported Revenues Adjustments Proportional Revenues Adjustments FEMSA Forward Proportional Revenues Proforma 5 Reported Operating Income Adjustments Proportional Operating Income Adjustments FEMSA Forward Prop
Slide 23: EBITDA ex-KOF & Net Debt ex-KOF Reconciliation
EBITDA ex - KOF & Net Debt ex - KOF Reconciliation of Non - IFRS Metrics Reported EBITDA Adjustments EBITDA exKOF 4 Reported Adjustments exKOF Proximity Division 1,695 - 1,695 Cash & Equivalents 3,075 - 3,075 Fuel 156 - 156 Coca-Cola FEMSA Cash & Equivalents 1,949 (1,949) - Health Division 371 - 371
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Mexican Economic Development — Investor Presentation (February 2023) on 6ix