#1290 ml Coca-Cola ERANTE DE COLA Coca-Cola FEMSA Investor Presentation Å Coca-Cola FEMSA#2Disclaimer 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 businesses. Forward looking statements involve known and unknown risks, uncertainties and other factors, many of which are beyond KOF's control and which may cause the actual results, performance or achievements of KOF and its businesses to be materially different from those expressed or implied by the forward-looking statements contained herein or in oral statements made by members of KOF's management. There can be no assurance that the results and events contemplated by the forward-looking statements in this presentation will in fact occur. These forward-looking statements are based on numerous assumptions regarding KOF's present and future business strategies and the environment in which KOF operates and are not a guarantee of future performance. Therefore, recipients should not place undue reliance on them. Forward-looking statements speak only as of the date they are made. KOF undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. CONFIDENTIALITY The nature of all the information in this presentation is privileged and confidential and belongs to KOF. By electing to view this information, you represent, warrant and agree that you will not copy, take away, record or otherwise attempt to re-transmit this information, in whole or in part, directly or indirectly to any other persons (whether within or outside your organization/firm). Distribution of this information to any persons other than the person to whom this information was originally delivered and such person's advisors is unauthorized and any reproduction of these materials, in whole or in part, or the divulgence of any of its contents is prohibited. By attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials. ADDITIONAL INFORMATION AND WHERE TO FIND IT Documents filed electronically by KOF with the Securities and Exchange Commission's ("SEC") are available to the public on the Internet at the SEC's website at www.sec.gov and at our website at www.coca-colafemsa.com. Free copies of all of KOF's filings with the SEC may also be obtained by directing a request to: COCA-COLA FEMSA Mario Pani # 100, Col. Santa Fé Cuajimalpa 05348, México City, México A Ades ciel INVESTOR RELATIONS [email protected]#3Agenda 1) Company Overview 2) Key Investment Highlights 3) COVID 19 & Sustainability Strategy 4) Financial Summary A) Appendix Cola Coca Coca-Cola FEMSA#42 Coca-Cola FEMSA at a Glance Largest Coca-Cola Franchise Bottler in the World by Volume, selling 1 out of every 9 Coca-Cola products in the world Attractive Regions Largest franchise bottler of Coca-Cola trademark beverages in the world in terms of volume ■ We are a multinational, multi-category beverage leader, serving over 265 million people and 1.9 million points of sale through 49 plants and 268 distribution centers across 9 countries. Figures in Ps. Mm 2017 Total Revenues 183,256 $ Gross Profit $ Gross Margin (1) Total Debt 83,508 $ 45.6% 83,360 $ 2018 182,342 83,938 $ 2019 194,471 $ 87,507 $ 2020 2020 US$mm (2) 183,615 $ 82,811 $ 9,231 4,163 46.0% 45.0% 45.1% 45.1% 81,805 69,977 $ 87,478 4,398 Cash & Cash Equivalents $ 18,767 $ 23,727 $ 20,491 $ 43,497 $ 2,187 Operating Cash Flow Դ 36,292 $ 35,456 $ 37,148 $ 37,345 1,878 Volume Mix (Figures as of 2020) 6.2% Still Water 14.3% FEMSA Voting: 56.0% Economic: 47.2% Shareholder Structure The Coca-Cola Company Voting: 32.9% Economic: 27.8% LISTED Bolsa Mexicana NYSE Voting: 11.1% Economic: 25.0% Coca-Cola FEMSA Sparkling 79.5% (8) Strategic Partner to The Cola-Cola System Representing 11.3% of Global Volume (4) +3.2bn Unit Cases (3) Carbonated Soft Drinks Coca-Cola Brands Market Position (6) 1st 1st 1st 1st 1st Central America (7) 1st +80,000 Employees (5) (1) ཆེཙེམིགིཊུཅིS Includes Bank loans and notes payable, current and non-current portion. Includes the effect of derivative financial instruments on the non-current portion. Converted at FX rate 19.89 MXN to US$ as of December 31, 2020 (3) Computed as of FY2020 (4) The Coca-Cola Company and KOF filings. (5) Coca-Cola FEMSA filings. Market position by volume. Euromonitor as of 20120 Comprised of Guatemala, Nicaragua, Costa Rica and Panama. (8) Operations in Venezuela through KOF's investment.#5Our footprint A geographically diversified bottler, ideally placed to capture its many opportunities Mexico & Central America ~108.5 million consumers ~1.1 million points of sale 9.8 bn transactions ~1.9 bn unit cases ~US$5.4 bn in Revenues 23.3% Operating Cash Flow Mexico represents 54% of our total volumes Accelerating performance in the division: Expand Universal Bottle and Refillables in new channels Recent launch of Topo Chico Hard Seltzer Become market leader in hydration, nutrition and energy Effective cost and expense controls opo HARO SELTZE TANGY LEMON poh HARD SELTZER TANSY LEMON LINE South America ~157.3 million consumers ~.9 million points of sale ~7.6 bn transactions ~1.3 bn unit cases ~US$3.9 bn in Revenues 16.2% Operating Cash Flow Brazil represents 26% of our total volumes Accelerating performance in the division: Affordability through Returnables and Magic Price points Acceleration of omnichannel digital strategy Focus in channel strategy and execution Profitable portfolio diversification Coca-Cola Coca-Cola#6Agenda 1) Company Overview 2) Key Investment Highlights 3) COVID 19 & Sustainability Strategy 4) Financial Summary A) Appendix Coca-Cola BIT FANT Coca-Cola FEMSA#7Our key investment highlights and strategy remain our long-term guide 1 STRATEGIC PARTNER TO COCA-COLA COMPANY. KOF IS THE LARGEST FRANCHISE BOTTLER IN THE WORLD Coca-Cola 2 PRESENCE IN MARKETS WITH LONG-TERM CONSUMPTION TAILWINDS 3 MARKET LEADERSHIP SUPPORTED BY STRONG BRANDS AND CONTINUOUS INNOVATION ADDRESSING CONSUMER DEMANDS 4 CONSUMER-CENTRIC BUSINESS MODEL ANCHORED BY A DIFFICULT TO REPLICATE COMMERCIAL CAPABILITIES AND DISTRIBUTION NETWORK 5 TRACK-RECORD OF DELIVERING STRONG FREE CASH FLOW GENERATION WITH A DISCIPLINED La Co APPROACH TO LEVERAGE 6 EXPERIENCED MANAGEMENT TEAM#8(1) (2) 5 (3) 1 Strategic Partner to The Coca-Cola Company and the Largest Franchise Bottler in the World by Volume 2 (Volume as of 2020 in mmUC(1)) EBITDA Margin: 20.3% 3,284 (2) 2,895 618 2,155 2,136 2,277 KOF Sells 11% of The Coca-Cola Company ("KO")'s global volume 837 458 Coca-Cola FEMSA CCA COCA-COLA AMATIL SWIRE Coca-Cola Coca-Cola ARCACONTINENTAL EUROPEAN PARTNERS Coca-Cola Hellenic Bottling Company BOTTLERS JAPAN INC Mutually beneficial relationship dating back for 25 years, providing KOF: Coca-Cola PREMIUM BRANDS COLLABORATION Ades DIVERSIFIED PORTFOLIO SUSTAINABILITY MMUC: Million Unit Cases. Each unit case is 24 eight-ounce servings of finished beverage equivalent to 5.678 liters. Volume pro-forma considering the proposed acquisition of Coca Cola Amatil by CCEP Comprised of Guatemala, Nicaragua, Costa Rica and Panama. Brazil Presence in Markets with Long-term Consumption Tailwinds Argentina & Uruguay Colombia (3) Central America 2020 Volume Breakdown 7.8% 7.1% 5.3% 53.6% Mexico 26.3% Brazil Soft Drinks Industry Growth vs GDP Soft Drinks YoY Growth (3) Real GDP Growth (4) Mexico 8.3% 7.1% 7.2% 6.6% 6.0% 4.4% 2.9% 2.6% 2.1% 2.2% 3.3% -0.3% 2014 2015 2016 2017 2018 2019 9.9% 8.9% 14.5% 7.6% 7.1% 7.3% 1.3% 0.5% 1.3% 1.1% -3.5% -3.3% 2014 2015 2016 2017 2018 2019 35 (4) (5) Source: Euromonitor. MSP sales value. Economist Intelligence Unit.#93 5 World Best Brand Market Leadership Supported by a Portfolio of Brands and Continuous Innovation (Interbrand 2019) Sprite Coca-Cola Brands Coca-Cola Fanta The Coca-Cola Logo is Recognized by 94% of the world(") OWE Coca-Cola del Sel Valle MONSTE Valle 4 Consumer-centric Business Model Strongly Committed to Sustainability Goals Powerful consumer-centric business model Digital tools improving service level & efficiencies in our commercial service and distribution model Owners mentality Commercial Know-How Leading Global Brands Consumer Focus Operational excellend Distribution a and Ma Manufacturing KO Strategic Create and fulfill Consumer demand anytime and everywhere Sustainability Partner Disciplined Capital Allocation People first Retail Focus Leading Regional Brands Big Data Analytics/IT Agile decisions Dow Jones Our performance has granted us recognition amongst top Sustainability Raters Sustainability Indices In collaboration with SAM 2020. Carbonated soft Drinks Non-Carbonated Soft Drinks Energy and Sports Bottled Water Leader Leader Highly Competitive Highly Competitive MEMBER OF EURONEXT ● vigeqeiris Portfolio +300 annual launches, including +100 in Brazil Driven by our strict focus on our consumers, we are consolidating a tailored total beverage portfolio to satisfy evolving tastes and lifestyles EMPRESA SUSTENTABLE MSCI A FTSE4Good ESG RATINGS CCC B BB BBB AA AAA SUSTAINALYTICS a Morningstar company First Mexican company to receive the approval of the Science Based Targets Initiative (SBTI) for its greenhouse gas (GHG) emissions reduction targets 6 (1) As per The Coca-Cola Company website.#105 Track-Record of Delivering Strong Cash Flow with a Disciplined Approach to Leverage (Figures in USD MM) Cash Flow from Operations (1) 1,689.8 1,658.2 1,767.1 1,570.2 1,660.3 1,348.4 1,344.6 1,401.3 2013 2014 2015 2016 2017 2018 2019 2020 (Figures in USD MM) Net Debt (2) 3,634.0 3,333.0 2,943.0 4,047.0 3,600.0 2,958.7 2,714.1 2,121.4 2013 2014 2015 2016 2017 2018 2019 2020 Exchange rate for 2013: 13.0765, 2014: 14.718, 2015: 17.2065, 2016: 20.664, 2017: 19.7354, 2018: 19.6829, 2019: 18.8452, 2020: 19.89 Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges. (1) 7 (2) Includes Bank loans and notes payable, current and non-current portion. Includes the effect of derivative financial instruments on the non-current portion, less cash and cash equivalents. 6 Years at KOF Experienced Management Team +26 +3 +8 John Santa Maria Constantino Spas CEO CFO José Ramón Martínez CAO +3 +34 +22 Karina Paola Awad HRO +23 Rafael Alberto Suarez ITTO +27 Rafael Ramos SCEO +6 Washington Fabricio Ponce COO - Mexico Resilience ■ Stable profitable performance Leadership position across LatAm Ongoing value chain optimization Π lan Marcel Craig COO - Brazil Discipline ■ Transformation driving efficiencies and growth B Eduardo Guillermo ■ Opportunistic consolidator ■ Disciplined and returns- oriented approach Hernández COO LatAm Commitment Strong track record of management and governance ■ Best in class approach to sustainability and societal needs#11Agenda 1) Company Overview 2) Key Investment Highlights 3) COVID 19 & Sustainability Strategy 4) Financial Summary A) Appendix Coca-Cola FEMSA#12COVID-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 Preserve their safety and well-being Reinforced health, sanitation and hygiene protocols and deployment of protective equipment Clients Remain close to our clients and help them stay open in a safe way Implementation of omni- channel strategies (B2B platforms, contact centers, and voice over IP services). Protective screens donation to support their safe reopening. Consumers Leverage our direct to consumer channels while offering unmatched affordability ■ Returnables and "magic" price ■ ■ Reinforcing our direct to home routes (+500k homes in Mexico) Digital channels growing +75.5% YoY B2C growing importantly Communities Help communities in need through different social initiatives Transporting medical supplies, contributing to the construction of alternative health centers, and acquiring medical equipment Donated +3.8 million liters of beverage Cash Flow Implement measures to strengthen our balance sheet and protect our cash flow ■ US$ ~500 MM short-term financing, current cash & cash equivalents balance of Ps. 2.5bn (1) Partially reduced and postponed CAPEX, focusing on immediate needs for business continuity 8 (1) As of 3Q'20. Coca-Cola JUN TOS ' amazon Rappi TIT Cornershop Uber Eats Wilk Coca-Cola#13KOF's Strategy Yielding Successful Results as Demonstrated by 2020 Performance Resilient Volume Performance Ability to Mitigate Headwinds Strong Margins December 2020 December 2020 (4.0%) (1) (4.3%) (1) GDP Growth 2020 (8..5%)(2) 1.9% (1) GDP Growth 2020 (4.1) (2) Coca-Cola FEMSA (2.5%) (1) GDP Growth2020 (6.8%) (2) (3.9%) (1) GDP Growth 2020 (2.0%)(2) Impact was mostly mitigated driven by our countermeasures +120bps Operating Cash Flow Margin C Boost to Affordability Strategy December 2020 Full Year Refillables growth +~7% vs PY in Mexico +~8% vs PY in Brazil Strong Liquidity Position with Ps. 43bn of cash on hand as of 2020 Resilient and Effective Cash Conversion +12% YoY Cash from operations despite the challenging environment Ps. 35.1bn 6 Source: Company filings. (1) (2) Coca-Cola FEMSA FY'20 filings. KOF Corporate Treasury based on external analyst estimates.#14Sustainability is a KOF's Business enabler We have delivered on our 2020 goals and on track to deliver our 2030 world without waste goals Climate Change We have accomplished 80% coverage of our global bottling operation's energy requirements. In 2019, we reduced our energy consumption by 12% resulting in US$8.15 million total energy savings. Water Stewardship We improved our water use ratio to 1.49 liters of water per liter of beverage produced. From 2010 through 2019 we decreased our absolute water consumption by 22.5%. Circular economy We used 29% of recycled materials in our PET packaging beating our 2020 goal of 25%. We collected more than 50% of the bottles that we put into the market, well positioned to achieve our 2030. Clean Energy % of energy from clean sources Water Efficiency Liters of Water per Liter of Beverage PET packaging materials % of recycled materials in our PET packaging 80 29.0 71 23.7 1.72 50 19.8 21.2 20.8 1.65 1.58 38 1.52 1.49 14.6 29 11.6 19 9 2014 2015 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2014 2015 2016 2017 2018 2019 2020 10 10 We aim to simultaneously create economic, social and environmental value#15Agenda 1) Company Overview 2) Key Investment Highlights 3) COVID 19 & Sustainability Strategy 4) Financial Summary A) Appendix Coca Coca- Coca-Cola FEMSA#162020 Debt Maturity Profile as of December 31st, 2020 Pro Forma Debt Profile (1) Debt mix by Currency Other:3% BRL:11% Debt mix by Rate Float: 8% KO COP:1% USD:27% MXN:57% A1 ✓ A2 Fix: 92% A3 Baa1 COVID loans payed in October (USD ~385 MM) Green Bond issuance 402 234 2021 Source: Coca-Cola FEMSA filings 17 (1) (2) Moody's ratings. Total debt excluding COVID loans payed in october, US$ 4,233 MM 82 335 Baa2 Pro Forma Debt Maturity Schedule Moody's Ratings Total Debt W/O hedges US$ (MM) 4,618(2) 345 136 378 Pepsi Coca-Cola FEMSA Coca-Cola FEMSA Credit Ratings (1) S&P Global Fitch Ratings MOODY'S BBB+ A- A2 Arca CCEP Swire Amatil ABInbev Hellenic Heineken Dr.Pepper ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 1,250 705 600 16 2022 2023 2024 2025 2026 2027 2028 2030 2032 2043 134 COKE#17Leverage Evolution Gross Debt/ LTM EBITDA Net Debt/ EBITDA Cash KOF's Net Debt 2.56 2.52 2.13 2.10 2.06 2.16 2.22 2.25 1.94 (USD MM) 2.37 1.07 1.79 1.75 1.61 1.60 1.41 1.52 1.31 1.13 4,663 0.22 4,253 4,380 4,446 4,098 4,308 1,330 619 3,767 333 846 3,729 3,836 824 1,140 1,015 2,187 1,594 2,308 4,047 3,333 3,634 3,600 1,833 2,943 2,959 2,714 2,121 2,242 475 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 E EBITDA (1) 2,159 2,193 2,030 1,828 1,708 2,062 1,847 1,924 1,877 1,707 MXN (EOP) 13.01 13.08 14.72 17.21 20.66 19.74 19.68 18.85 23.26 22.63 BRL (EOP) 2.04 2.34 2.66 3.90 3.26 3.31 3.87 4.03 5.35 5.25 (1) Excludes Venezuela since 2014#18Consolidated Financial Summary USD.mm (1) Total Revenues Gross Profit Operating Income Gross Mg EBIT Mg Volume 3,318 3,322 3,369 3,284 10,319 4,643 1,292 1,269 9,286 9,264 9,231 4,231 4,265 4,163 965 954 2017 2018 2019 Capital Expenditures (2) 45.6% 46.0% 45.0% 45.1% 13.9% 13.7% 10.3% 9.2% 2020 2017 2018 2019 2020 2017 2018 2019 2020 Total Debt (3) Cash and Cash Equivalents % of revenue(4) 7.0% 6.0% 5.9% 5.6% 655 608 4,224 4,141 4,398 562 520 3,713 2017 2018 2019 2020 2017 (1) (2) (3) Figures calculated in USD using an exchange rate of 19.7354 for 2017, 19.6829 for 2018, 18.8452 for 2019 and 19.89 for 2020 Includes acquisitions of long-lived assets minus proceeds from sale of long-lived assets plus acquisitions of intangible assets. Includes Bank loans and notes payable, current and non-current portion. (4) Computed as capital expenditures over total revenues. 2,187 1,205 1,087 951 2018 2019 2020 2017 2018 2019 2020#19Agenda 1) Company Overview 2) Key Investment Highlights 3) COVID 19 & Sustainability Strategy 4) Financial Summary A) Appendix Coca-Cola FEMSA#201 Coca-Cola FEMSA at a glance Our Disciplined Approach to Capital Allocation Has Enabled Us to Grow Leão PANAMCO Leao Alimentos in Brazil. PANAMCO Valle ciaflu SPAIPA FOQUE grupo Cimsa Santa Clara Fluminense & Spaipa in Brazil YOLI Verde Campo in Mexico GALPO TAMPICO Buenos Aires, Argentina Jugos del Valle in partnership with The Coca-Cola Company Estrella Azul in Panama GRUPO Tampico 1994 2003 2007 1.0x2 3.5x 1.3x Santa Clara Vonpar VONPAR in Brazil New categories New territories Volume (MM UC) 1994-306 2018-3,322 Total leverage(1) Ades ABASA and Los Volcanes in Guatemala and Uruguay. In Mexico through FOQUE CIMSA in Jugos del Valle Verde Campo in Brazil. Ades together with The Coca-Cola System Mexico 2010 2011 2012 2013 2014 2016 2017 2018 0.8x 1.0x 1.1x 2.1x 2.3x 2.5x 2.3x (1) Coca-Cola FEMSA's earnings releases. Computed as total debt over operating cash flow. As of 1999. (2) 2.3x Divested the Philippines operatio and deconsolidation of Venezue#21KOF was able to leverage on its environmental and sustainability commitments and achievements to successfully place its first Green Bond in the market On August 26th, 2020, we priced USD 705MM in the Yankee market with the Green Label recognition ✓ The transaction represents the lowest ever coupon printed by a Latam issuer in the 10 - 12 yrs range ✓ Largest corporate Green Bond in Latin America and First ever Mexican Corporate Green Bond KOF was able to achieve the Green Bond feature in record time (4 weeks) given its commitment towards Sustainability ever since the Company was created: ✓ First Mexican Company to have science-based targets, with clear action plans ✓ Pioneer in the use of recyclable packages, with one of the highest packaging collection rates (~50% of KOF's main markets) ✓ 7 year old member of some of the most relevant and recognized sustainable indexes such, as Dow Jones Sustainability and FTSE4Good For KOF, sustainability is an essential component of our business that allows us to maximize value for our stakeholders. Therefore, we encompass our sustainable efforts to communicate our strategy to "ESG-investors" in the following three categories: SCIENCE BASED TARGETS DRIVING AMBITIOUS CORPORATE CLIMATE ACTION Climate Change We align our efforts to the Paris Agreement goal of preventing global temperature from rising above 2°C LATIN AMERICAN WATER FUNDS PARTNERSHIP Water Stewardship We focus on our operational water use efficiency and we help our communities to access water Circular economy Waste management and recycling of polyethylene terephthalate (PET) bottles Coca-Cola Electric vehicles acquired for our fleet Water usage efficiencies (1.5lt per 1lt. produce) Recycled resin purchases for our PET packages#22Consolidated Financial Summary (Figures in Ps.mm, unless otherwise stated) Income Statement Total Revenues YoY Growth Costs of goods sold Gross profit Gross margin Operative expenses Other (expense) income Interest expenses Interest income Foreign exchange gain (loss), net Gain (loss) 2017 183,256 2018 2019 3Q'19 3Q'20 182,342 -0.5% (99,748.0) (98,404.0) 83,508.0 45.6% 83,938.0 46.0% (58,044) (57,924) 194,471 6.7% (106,964.0) 87,507.0 45.0% (60,537) 142,504 135,015 3Q'20 LTM(¹) 186,892 -5.3% (78,030.4) 64,473.3 45.2% (73,926.7) (102,807.9) 61,088.0 84,084.0 45.2% 45.0% (44,429) (42,320) (58,428) (31,357) (1,881) (2,490) (969) (3,329) (4,850) (8,777) (7,568) (6,904) (5,235) (6,388) (8,057) 791 1,004 1,230 907 853 1,176 788 (277) (330) (166) 357 193 1,590 212 221 78 288 431 Market value gain (loss) on financial instruments 246 (314) (288) (150) 2 (136) Income (loss) before Income taxes (11,255) 17,190 18,409 14,510 10,551 14,450 Income taxes (4,184) (5,260) (5,648) (3,953) (3,413) Share of the profit of associates and joint ventures accounted for using the equity method, net of taxes Net income (loss) for continuing operations 60 (226) (131) (95) 159 (5,108) 122 Net income (loss) for discontinued operations Consolidated net income (loss) (15,379) 3,725 (11,654) 11,704 12,630 10,462 6,980 9,148 3,366 15,070 12,630 10,462 6,980 9,148 Other Key Metrics 2017 2018 2019 3Q'19 3Q'20 3Q'20 LTM Capital expenditures 12,802 10,891 11,415 6,681 6,262 10,996 Balance Sheet 2017 2018 2019 3Q'19 3Q'20 3Q'20 LTM Cash and cash equivalents Total debt 18,767 23,727 20,491 30,230 58,057 48,318 83,360 81,805 69,977 76,533 103,122 96,566 Net debt 64,593 58,078 49,486 46,303 45,065 48,248 Total equity Book Capitalization 140,710 131,750 129,685 129,700 124,383 124,368 205,303 189,828 179,171 176,003 169,448 172,616 Source: Coca-Cola FEMSA filings. (1) Computed as 2019 less 3QM19 plus 3Q'20. 20 (2) (3) Includes acquisitions of long-lived assets minus proceeds from sale of long-lived assets plus acquisitions of intangible assets. Includes Bank loans and notes payable, current and non-current portion.