SEC Filing | FEMSA

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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of February 2022

FOMENTO ECONÓMICO MEXICANO, S.A.B. DE C.V.

(Exact name of Registrant as specified in its charter)

Mexican Economic Development, Inc.

(Translation of Registrant’s name into English)

United Mexican States

(Jurisdiction of incorporation or organization)

General Anaya No. 601 Pte.
Colonia Bella Vista
Monterrey, Nuevo León 64410
México

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports

under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as

permitted by Regulation S-T Rule 101(b)(7): ¨

Indicate by check mark whether by furnishing the information contained in this

Form, the registrant is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If "Yes" is marked, indicate below the file number assigned to the registrant in

connection with Rule 12g3-2(b): 82-_____________

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the

registrant has duly caused this report to be signed on its behalf of the

undersigned, thereunto duly authorized.

	FOMENTO ECONÓMICO MEXICANO, S.A. DE C.V.

	By:	/s/ Eugenio Garza y Garza
Eugenio Garza y Garza
Director of Finance and Corporate Development

Date: February, 28, 2022

Exhibit 99.1

FEMSA Announces Fourth Quarter and Full Year 2021 Results

Monterrey, Mexico, February 28, 2022 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the fourth quarter and full year of 2021.

HIGHLIGHTS

Our results during 2020 were significantly impacted by the COVID-19 pandemic and the related changes in consumer mobility and behavior across markets. As we look at our 4Q21 results, the comparison base of 4Q20 is only a partial benchmark. Therefore, to facilitate the reader’s assessment of our business units’ performance in 4Q21, we provide the following table that includes variations versus 4Q19 as well.

FINANCIAL SUMMARY FOR THE FOURTH QUARTER AND FULL YEAR 2021

Information includes figures in millions of Ps. and variations as change vs. respective period

	Revenues								Gross Profit								Income from Operations								Same-Store Sales
	4Q21		% var vs. 4Q20			% var vs. 4Q19			4Q21		% var vs. 4Q20			% var vs. 4Q19			4Q21		% var vs. 4Q20			% var vs. 4Q19			4Q21			% var vs. 4Q19
FEMSA CONSOLIDATED		151,542		16.3	%		14.6	%		59,912		15.18	%		15.2	%		15,509		18.0	%		13.9	%
FEMSA COMERCIO
Proximity Division		53,510		14.4	%		11.6	%		24,675		18.3	%		17.0	%		6,766		37.9	%		15.1	%		12.5	%		4.4	%
Health Division		18,581		7.3	%		23.8	%		5,738		7.2	%		20.4	%		928		10.1	%		41.0	%		5.7	%		14.7	%
Fuel Division ⁽¹⁾		11,065		30.2	%		(9.6	%)		1,562		20.9	%		3.2	%		435		31.4	%		(17.3	%)		23.3	%		(14.7	%)
LOGISTICS & DISTRIBUTION		14,603		N/A			N/A			3,187		N/A			N/A			578		N/A			N/A
COCA-COLA FEMSA		53,273		8.5	%		3.0	%		23,985		9.3	%		4.6	%		7,778		7.6	%		22.0	%

⁽¹⁾variations vs. comparable results

Daniel Rodríguez Cofré, FEMSA’s CEO, commented:

“We closed the year on a strong note, with most of our operations delivering double-digit revenue and operating income growth relative to the comparable period of last year, but also to pre-pandemic levels. I believe there are a couple of positive messages from this performance. First, as the health situation continues to improve across markets, our consumers are increasingly returning to their normal habits and patterns, and we are fine-tuning our strategy and value propositions accordingly to remain ahead of the curve. Second, the hard work our teams carried out during the pandemic to reduce costs and increase efficiency, combined with positive operating leverage driven by sales growth, creates a powerful combination. We are seeing this in the form of material gross and operating margin expansion at several of our operations.

We also made significant progress on our retail Digital platforms, building and strengthening a dedicated organization, attracting the right talent, and launching OXXO Premia and Spin by OXXO in Mexico with encouraging early results. On the strategic and capital deployment front, in 2021 we made significant progress building our national specialized distribution platform across the United States, increasing our revenues in this operation by 46% during the year and more than 100% since our entry into the industry in mid-2020. And on the corporate governance front, as you probably read a few days ago, we listened to the market and are implementing a series of changes to our practices regarding the accountability, composition and functioning of our Board of Directors, moving FEMSA forward and already being well received.

I want to recognize our more than 320,000 colleagues across the continent, the best team in the business, because they make our company better, day after day, and year after year. Looking ahead, we have great momentum as the positive business trends extend into the new year. Every one of our operations is well positioned to drive growth, and we are excited by the opportunities and optionality available to us.”

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QUARTERLY RESULTS

Results are compared to the same period of previous year

femsa consolidateD

FEMSA CONSOLIDATED

4Q21 Financial Summary

(Millions of Ps.)

	4Q21		4Q20		Var.			Org.
Revenues		151,542		130,329		16.3	%		12.9	%
Income from Operations		15,509		13,145		18.0	%		17.0	%
Income from Operations Margin (%)		10.2		10.1		10	bps
Operative Cash Flow (EBITDA)		23,446		20,938		12.0	%		11.2	%
Operative Cash Flow (EBITDA) Margin (%)		15.5		16.1		-60	bps
Net Income		10,100		730		N.S.

CONSOLIDATED NET DEBT

(Millions of Ps.)

As of December 31, 2021	Ps.		US$ ³
Cash		97,407		4,748
Short-term debt		4,640		226
Long-term debt ⁴		179,857		8,768
Net debt ⁴		87,090		4,245

Total revenues increased 16.3% in 4Q21 compared to 4Q20, reflecting growth across our business units coupled with an undemanding comparison base for the quarter. On an organic¹basis, total revenues increased 12.9%.

Gross profit increased 15.2%. Gross margin decreased 40 basis points, mainly driven by a contraction at FEMSA Comercio’s Fuel Division, partially offset by an expansion at FEMSA Comercio’s Proximity Division and Coca-Cola FEMSA.

Income from operations increased 18.0%. On an organic¹basis, income from operations increased 17.0%. Consolidated operating margin increased 10 basis points to 10.2% of total revenues, reflecting margin expansion at FEMSA Comercio’s Proximity and Health Divisions, partially offset by a margin contraction at Coca-Cola FEMSA.

Our effective income tax rate was 32.2% in 4Q21 compared to 58.9% in 4Q20, which reflected unfavorable deferred tax adjustments in Coca-Cola FEMSA that were magnified by a decrease in our consolidated pre-tax income, during that quarter. Our income tax was Ps. 4,094 million in 4Q21.

Net consolidated income increased significantly to Ps. 10,100 million, driven by: i) higher income from operations; ii) a non-cash foreign exchange gain related to FEMSA’s U.S. dollar-denominated cash position as impacted by the depreciation of the Mexican peso; iii) a decrease in net interest expenses; and iv) an increase in our participation in associates’ results, which mainly reflects the improved results of our investment in Heineken relative to 4Q20. This was partially offset by a decrease in non-operating income which reflects a demanding comparison base that included dividends received from our investment in JRD.

Net majority income was Ps. 1.88 per FEMSA Unit²and US$0.92 per FEMSA ADS.

Capital expenditures amounted to Ps. 8,827 million, reflecting the reactivation of ongoing investment activities at most of our business units.

¹ Excludes the effects of significant mergers and acquisitions in the last twelve months.

² FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of December 31, 2021 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

³ The exchange rate published by the Federal Reserve Bank of New York for December 30, 2021 was 20.5140 MXN per USD.

⁴ Includes the effect of derivative financial instruments on long-term debt. Excludes long-term leases.

February 28, 2022

FEMSA COMERCIO – Proximity DIVISION

FEMSA COMERCIO – PROXIMITY DIVISION

4Q21 Financial Summary

(Millions of Ps. except same-stores sales)

	4Q21		4Q20		Var.
Same-store sales (thousands of Ps.)		829		737		12.5	%
Revenues		53,510		46,769		14.4	%
Income from Operations		6,766		4,907		37.9	%
Income from Operations Margin (%)		12.6		10.5		210	bps
Operative Cash Flow (EBITDA)		9,647		7,688		25.5	%
Operative Cash Flow (EBITDA) Margin (%)		18.0		16.4		160	bps

Total revenues increased 14.4% in 4Q21 compared to 4Q20, reflecting a 12.5% average same-store sales increase, driven by a 10.4% growth in average customer ticket and an increase of 1.9% in store traffic. These figures reflect an undemanding comparison base, coupled with strong performance of the gathering category, including beer. During the quarter, OXXO’s store base expanded by 434 units to reach 865 total net new store openings for the last twelve months. As of December 31, 2021, FEMSA Comercio’s Proximity Division had a total of 20,431 OXXO stores.

Gross profit reached 46.1% of total revenues, reflecting more dynamic commercial income activity and promotional programs with our key supplier partners.

Income from operations amounted to 12.6% of total revenues, driven by higher operating leverage. Operating expenses increased 12.2% to Ps. 17,909 million, below revenues, reflecting enduring expense efficiencies and tight expense control, partially offset by our continuing initiative to gradually shift from commission-based store teams to employee-based teams and an demanding comparison base in 4Q20 that included extraordinary personnel expenses in connection with the COVID-19 pandemic.

February 28, 2022

FEMSA COMERCIO – HEALTH DIVISION

FEMSA COMERCIO – HEALTH DIVISION

4Q21 Financial Summary

(Millions of Ps. except same-stores sales)

	4Q21		4Q20		Var.
Same-store sales (thousands of Ps.)		1,387		1,313		5.7	%
Revenues		18,581		17,319		7.3	%
Income from Operations		928		843		10.1	%
Income from Operations Margin (%)		5.0		4.9		10	bps
Operative Cash Flow (EBITDA)		1,810		1,773		2.1	%
Operative Cash Flow (EBITDA) Margin (%)		9.7		10.2		-50	bps

Total revenues increased 7.3% in 4Q21 compared to 4Q20, mainly reflecting higher consumption in Chile coupled with positive trends in our Mexican and Colombian operations, partially offset by a negative currency translation effect related to the depreciation of the Chilean and Colombian pesos relative to the Mexican peso. During the quarter, the Health Division’s store base expanded by 112 units reaching a total of 3,652 points of sale across its territories as of December 31, 2021. This figure reflects the addition of 284 net new store openings for the last twelve months. Same-store sales for drugstores increased an average of 5.7%, reflecting the revenue drivers described above. On a currency-neutral¹basis, total revenues increased 14.3% while same-store sales increased by 10.3%.

Gross profit represented 30.9% of total revenues, reflecting: i) higher institutional sales in our operations in Chile and Colombia; and ii) increased promotional activities in our operations in South America. These were offset by improved efficiency and more effective collaboration and execution with key supplier partners in Mexico.

Income from operations amounted to 5.0% of total revenues. Operating expenses increased 6.7% to Ps. 4,810 million, below revenue growth, reflecting tight expense control and efficiency gains across our operations.

¹ Calculated by translating comparable period figures at the foreign currency exchange rates used in the current period.

February 28, 2022

FEMSA COMERCIO – FUEL DIVISION

FEMSA COMERCIO – FUEL DIVISION

4Q21 Financial Summary

(Millions of Ps. except same-stations sales)

	4Q21		Comparable 4Q20⁽¹⁾		Var.*			Reported 4Q20
Same-station sales (thousands of Ps.)		6,339		5,140		23.3	%		5,140
Revenues		11,065		8,497		30.2	%		8,485
Income from Operations		435		331		31.4	%		212
Income from Operations Margin (%)		3.9		3.9		0	bps		2.5
Operative Cash Flow (EBITDA)		702		546		28.6	%		428
Operative Cash Flow (EBITDA) Margin (%)		6.3		6.4		-10	bps		5.0

⁽¹⁾Includes wholesale and distribution operations

*vs. Comparable Results

Total revenues increased 30.2% in 4Q21 compared to 4Q20, reflecting a 23.3% average same-station sales increase, driven by an 8.3% growth in the average volume and a 13.8% increase in the average price per liter. This reflects an undemanding comparison base which was affected by reduced vehicle mobility in connection with the COVID-19 pandemic. During the quarter, the Fuel Division added 1 station, reaching a total of 567 points of sale as of December 31, 2021. This figure reflects the addition of 9 total net new stations for the last twelve months.

Gross profit reached 14.1% of total revenues.

Income from operations amounted to 3.9% of total revenues. Operating expenses increased 17.3% to Ps. 1,127 million, below revenues, reflecting tight expense control and positive operating leverage.

February 28, 2022

Logistics and Distribution

LOGISTICS AND DISTRIBUTION

4Q21 Financial Summary

(Millions of Ps.)

	4Q21
Revenues		14,603
Income from Operations		578
Income from Operations Margin (%)		4.0
Operative Cash Flow (EBITDA)		1,542
Operative Cash Flow (EBITDA) Margin (%)		10.6

Total revenues amounted to Ps. 14,603 million, reflecting stable demand dynamics in our operations in Latin America, coupled with a gradual recovery of some end-user segments in the United States.

Gross profit reached 21.8% of total revenues, reflecting favorable sales mix and efficiencies in our Latin American operations.

Income from operations represented 4.0% of total revenues. Operating expenses totaled Ps. 2,609 million, reflecting high operating leverage driven by tight expense control and efficiencies across markets.

February 28, 2022

results FOR THE FULL YEAR OF 2021

Results are compared to the same period of previous year

femsa consolidated

FEMSA CONSOLIDATED
Full Year Financial Summary
(Millions of Ps.)

	2021	2020	Var.		Org.
Revenues	556,261	492,966	12.8	%	9.4	%
Income from Operations	51,993	41,503	25.3	%	23.7	%
Income from Operations Margin (%)	9.3	8.4	90	bps
Operative Cash Flow (EBITDA)	82,422	71,973	14.5	%	13.0	%
Operative Cash Flow (EBITDA) Margin (%)	14.8	14.6	20	bps
Net Income	37,678	3,756	N.S.

(1) Includes wholesale and distribution operations

Total revenues increased 12.8%. On an organic basis,¹ total revenues increased 9.4% reflecting growth across all operations.

Gross profit increased 12.7%. Gross margin decreased 10 basis points to 38.4% of total revenues, reflecting gross margin expansion at Coca-Cola FEMSA and FEMSA Comercio’s Proximity Division, offset by a contraction at FEMSA Comercio’s Health and Fuel Divisions.

Income from operations increased 25.3%. On an organic basis,¹ income from operations increased 23.7%. Our consolidated operating margin increased 90 basis points to 9.3% of total revenues, reflecting margin expansion at Coca-Cola FEMSA and FEMSA Comercio’s Proximity and Health Division, partially offset by a contraction at FEMSA Comercio’s Fuel Division.

Net consolidated income increased to Ps. 37,678 million, reflecting: i) higher income from operations at all our business units; ii) higher non-operating income; and iii) an increase in our participation in associates’ results, which mainly reflects the results of our investment in Heineken, including an exceptional gain recorded by Heineken during the 3Q21, reflecting a fair value adjustment from one of their investments.

Net majority income per FEMSA Unit²was Ps.7.96 (US$3.88 per ADS).

Capital expenditures amounted to Ps. 24,055 million, reflecting the reactivation of ongoing investment activities at most of our business units.

¹ Excludes the effects of significant mergers and acquisitions in the last twelve months.

² FEMSA Units consist of FEMSA BD Units and FEMSA B Units. Each FEMSA BD Unit is comprised of one Series B Share, two Series D-B Shares and two Series D-L Shares. Each FEMSA B Unit is comprised of five Series B Shares. The number of FEMSA Units outstanding as of December 30, 2021 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

February 28, 2022

femsa comercio – PROXIMITY division

FEMSA COMERCIO – PROXIMITY DIVISION
Full Year Financial Summary
(Millions of Ps. except same-stores sales)

	2021	2020	Var.
Same-store sales (thousands of Ps.)	778	722	7.7	%
Revenues	198,586	181,277	9.5	%
Income from Operations	18,387	12,020	53.0	%
Income from Operations Margin (%)	9.3	6.6	270	bps
Operative Cash Flow (EBITDA)	29,704	23,333	27.3	%
Operative Cash Flow (EBITDA) Margin (%)	15.0	12.9	210	bps

(1) Includes wholesale and distribution operations

Total revenues increased 9.5%. OXXO’s same-store sales increased an average of 7.7%, driven by a 10.2% increase in average customer ticket, partially offset by a 2.2% decrease in store traffic.

Gross profit reached 42.4% of total revenues.

Income from operations amounted to 9.3% of total revenues, reflecting an undemanding comparison base in 2020, driven by the COVID-19 pandemic. Operating expenses increased 5.7% to Ps. 65,809 million.

femsa comercio – health division

FEMSA COMERCIO – HEALTH DIVISION
Full Year Financial Summary
(Millions of Ps. except same-stores sales)

	2021	2020	Var.
Same-store sales (thousands of Ps.)	1,382	1,262	9.5	%
Revenues	73,027	65,172	12.1	%
Income from Operations	3,762	2,656	41.6	%
Income from Operations Margin (%)	5.2	4.1	110	bps
Operative Cash Flow (EBITDA)	7,228	6,227	16.1	%
Operative Cash Flow (EBITDA) Margin (%)	9.9	9.6	30	bps

(1) Includes wholesale and distribution operations

Total revenues increased by 12.1%. Same-store sales for drugstores increased by an average of 9.5%, reflecting positive trends in our Mexican, Chilean and Colombian operations, partially offset by a still challenging economic environment in Ecuador, in connection with the COVID-19 pandemic.

Gross profit reached 29.8% of total revenues.

Income from operations amounted to 5.2% of total revenues. Operating expenses increased 6.2% to Ps. 17,974 million.

February 28, 2022

FEMSA COMERCIO – FUEL DIVISION

FEMSA COMERCIO – FUEL DIVISION
Full Year Financial Summary
(Millions of Ps. except same-stations sales)

	2021	Comparable 2020⁽¹⁾	Var.*		Reported 2020
Same-station sales (thousands of Ps.)	5,862	5,194	12.9	%	5,194
Revenues	39,922	34,322	16.3	%	34,292
Income from Operations	1,416	1,253	13.0	%	813
Income from Operations Margin (%)	3.5	3.7	-20	bps	2.4
Operative Cash Flow (EBITDA)	2,402	2,140	12.2	%	1,700
Operative Cash Flow (EBITDA) Margin (%)	6.0	6.2	-20	bps	5.0

⁽¹⁾Includes wholesale and distribution operations

*vs. Comparable Results

Total revenues increased 16.3%. Same-station sales increased an average of 12.9%, reflecting a 12.0% increase in the average price per liter, partially offset by a 0.7% increase in average volume.

Gross profit reached 13.2% of total revenues.

Income from operations amounted to 3.5% of total revenues. Operating expenses increased 7.7% to Ps. 3,853 million.

Logistics and Distribution

LOGISTICS AND DISTRIBUTION
Full Year Financial Summary
(Millions of Ps.)

			2021
Revenues			48,412
Income from Operations			2,132
Income from Operations Margin (%)			4.4
Operative Cash Flow (EBITDA)			4,961
Operative Cash Flow (EBITDA) Margin (%)			10.2

Total revenues amounted to Ps. 48,412 million, reflecting positive demand dynamics in our operations in Latin America, coupled with gradual recovery trends in the United States. These were partially offset by the negative currency translation effect from the depreciation of the Brazilian Real relative to the Mexican peso.

Gross profit reached 21.8% of total revenues, reflecting favorable sales mix and efficiencies in our Latin American operations.

Income from operations represented 4.4% of total revenues. Operating expenses totaled Ps. 8,438 million, reflecting high operating leverage driven by tight expense control and efficiencies across markets.

February 28, 2022

coca-cola femsa

Coca-Cola FEMSA’s financial results and discussion thereof are incorporated by reference from Coca-Cola FEMSA’s press release, which is attached to this press release or may be accessed by visiting http://www.coca-colafemsa.com.

RECENT DEVELOPMENTS

Starting in January 2022, FEMSA evolved and simplified its corporate structure to bring its key business units closer to FEMSA’s senior leadership. As a result, the following business units now report directly to FEMSA’s CEO:

FEMSA – Proximity Division, including OXXO Mexico, OXXO International, OXXO Gas, and other related retail operations.

FEMSA – Health Division, including all our drugstore and health-related operations in Mexico and South America.

FEMSA – Digital Division, including Spin by OXXO, OXXO Premia and other related initiatives.

FEMSA Negocios Estratégicos, which includes our Logistics & Distribution business, will continue to report directly to FEMSA’s CEO.

This corporate structure aligns with FEMSA’s priorities and business environment and will not modify our current disclosure structure.

Since October 2021, in addition to previously disclosed transactions, FEMSA through Envoy Solutions completed the following acquisitions in the United States, representing aggregated annual revenues of approximately US$90 million:

Super Chemical Corporation North Woods Manufacturing, Inc.

Valley Janitor Supply Co. Inc.

Swish White River Ltd.

General Chemical & Supply, Inc.

Weiss Bros of Hagerstown, Inc.

Bio-Shine, Inc.

CONFERENCE CALL INFORMATION:

Our Fourth Quarter and Full Year 2021 Conference Call will be held on: Monday, February 28, 2022, 9:30 AM Eastern Time (8:30 AM Mexico City Time). To participate in the conference call, please dial: Domestic US: (800) 289 0720; International: +1 (323) 701 0160; Conference Id: 6036296. The conference call will be webcast live through streaming audio. For details please visit https://femsa.gcs-web.com/.

If you are unable to participate live, the conference call audio will be available on Quarterly Results | FEMSA (gcs-web.com).

February 28, 2022

FEMSA is a company that creates economic and social value through companies and institutions and strives to be the best employer and neighbor to the communities in which it operates. It participates in the retail industry through a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and OXXO Gas, a chain of retail service stations. FEMSA’s Digital Division includes Spin by OXXO and OXXO Premia, among other loyalty and digital financial services initiatives. In the beverage industry, it participates through Coca-Cola FEMSA, the largest franchise bottler of Coca-Cola products in the world by volume; and in the beer industry, as the second largest shareholder of Heineken, one of the world’s leading brewers with operations in over 70 countries. FEMSA also participates in the logistics and distribution industry through its Strategic Business Unit, which additionally provides point-of-sale refrigeration and plastic solutions to its business units and third-party clients. Across its business units, FEMSA has more than 320,000 employees in 13 countries. FEMSA is a member of the Dow Jones Sustainability MILA Pacific Alliance, the FTSE4Good Emerging Index and the Mexican Stock Exchange Sustainability Index, among other indexes that evaluate its sustainability performance.

The translations of Mexican pesos into US dollars are included solely for the convenience of the reader, using the noon buying rate for Mexican pesos as published by the Federal Reserve Bank of New York on December 30, 2021, which was 20.5140 Mexican pesos per US dollar.

FORWARD-LOOKING STATEMENTS

This report may contain certain forward-looking statements concerning our future performance that should be considered as good faith estimates made by us. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact our actual performance.

eight pages of tables and Coca-Cola FEMSA’s press release to follow

February 28, 2022

FEMSA

Consolidated Income Statement

Millions of Pesos

	For the fourth quarter of:															For the twelve months of:
	2021			% of rev.		2020			% of rev.		% Var.			% Org.^(A)		2021			% of rev.		2020			% of rev.		% Var.			% Org.^(A)
Total revenues		151,542			100.0		130,329			100.0		16.3			12.9		556,261			100.0		492,966			100.0		12.8			9.4
Cost of sales		91,630			60.5		78,312			60.1		17.0					342,548			61.6		303,313			61.5		12.9
Gross profit		59,912			39.5		52,017			39.9		15.2					213,713			38.4		189,653			38.5		12.7
Administrative expenses		7,876			5.2		6,836			5.2		15.2					27,219			4.9		22,988			4.7		18.4
Selling expenses		36,499			24.1		31,412			24.1		16.2					134,079			24.1		123,405			25.0		8.6
Other operating expenses (income), net ⁽¹⁾		28			-		624			0.5		(95.5	)				422			0.1		1,757			0.4		(76.0	)
Income from operations⁽²⁾		15,509			10.2		13,145			10.1		18.0			17.0		51,993			9.3		41,503			8.4		25.3			23.7
Other non-operating expenses (income)		341					(1,997	)				(117.1	)				(2,667	)				7,656					(134.8	)
Interest expense		4,186					5,005					(16.4	)				16,938					17,516					(3.3	)
Interest income		583					261					123.4					1,464					2,100					(30.3	)
Interest expense, net		3,603					4,744					(24.1	)				15,474					15,416					0.4
Foreign exchange loss (gain)		(779	)				4,934					(115.8	)				(1,314	)				(385	)				N.S.
Other financial expenses (income), net.		(389	)				113					N.S.					(776	)				(120	)				N.S.
Financing expenses, net		2,435					9,791					(75.1	)				13,384					14,911					(10.2	)
Income before income tax and participation in associates results		12,733					5,351					138.0					41,276					18,936					118.0
Income tax		4,094					3,154					29.8					14,278					14,819					(3.7	)
Participation in associates results⁽³⁾		1,461					(1,467	)				(199.6	)				10,680					(361	)				N.S.
(Loss) Consolidated net income		10,100					730					N.S.					37,678					3,756					N.S.
Net majority income		6,717					(1,245	)				N.S.					28,495					(1,930	)				N.S.
Net minority income		3,383					1,975					71.3					9,183					5,686					61.5

Operative Cash Flow & CAPEX		2021			% Integral		2020			% Integral		% Inc.			% Org.^(A)		2021			% Integral		2020			% Integral		% Inc.			% Org.^(A)
Income from operations		15,509			10.2		13,145			10.1		18.0			17.0		51,993			9.3		41,503			8.4		25.3			23.7
Depreciation		6,542			4.3		6,279			4.8		4.2					25,294			4.5		25,006			5.1		1.2
Amortization & other non-cash charges		1,395			1.0		1,514			1.2		(7.9	)				5,134			1.0		5,464			1.1		(6.0	)
Operative Cash Flow (EBITDA)		23,446			15.5		20,938			16.1		12.0			11.2		82,422			14.8		71,973			14.6		14.5			13.0
CAPEX		8,827					6,377					38.4					24,055					20,893					15.1

^(A)Organic basis (% Org.) excludes the effects of significant mergers and acquisitions in the last twelve months.

⁽¹⁾ Other operating expenses (income), net = other operating expenses (income) +(-) equity method from operated associates.

⁽²⁾ Income from operations = gross profit - administrative and selling expenses - other operating expenses (income), net.

⁽³⁾Mainly represents the equity method participation in Heineken´s and Raizen convenience stores results, net.

⁽⁴⁾At the end of the year, the CAPEX effectively paid is equivalent to $19,062M.

February 28, 2022

FEMSA

Consolidated Balance Sheet

Millions of Pesos

ASSETS	Dec-21		Dec-20		% Inc.
Cash and cash equivalents		97,407		107,624		(9.5	)
Investments		24,415		662		N.S.
Accounts receivable		33,898		28,249		20.0
Inventories		50,896		44,034		15.6
Other current assets		24,102		20,700		16.4
Total current assets		230,718		201,269		14.6
Investments in shares		107,299		98,270		9.2
Property, plant and equipment, net		115,147		113,106		1.8
Right of use		56,994		54,747		4.1
Intangible assets ⁽¹⁾		158,138		155,501		1.7
Other assets		69,204		61,955		11.7
TOTAL ASSETS		737,500		684,848		7.7
LIABILITIES & STOCKHOLDERS´ EQUITY
Bank loans		2,003		4,469		(55.2	)
Current maturities of long-term debt		2,637		4,332		(39.1	)
Interest payable		1,968		2,069		(4.9	)
Current maturities of long-term leases		7,306		6,772		7.9
Operating liabilities		122,809		100,771		21.9
Total current liabilities		136,723		118,413		15.5
Long-term debt ⁽²⁾		179,857		174,706		2.9
Long-term leases		55,048		51,536		6.8
Laboral obligations		7,600		7,253		4.8
Other liabilities		23,455		25,753		(8.9	)
Total liabilities		402,683		377,661		6.6
Total stockholders’ equity		334,817		307,187		9.0
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		737,500		684,848		7.7

	December 31, 2021
DEBT MIX ⁽²⁾	% of Total			Average Rate
Denominated in:
Mexican pesos		37.9	%		7.5	%
U.S. Dollars		29.5	%		3.1	%
Euros		23.1	%		1.1	%
Colombian pesos		1.0	%		5.3	%
Argentine pesos		0.3	%		41.0	%
Brazilian reais		6.7	%		8.7	%
Chilean pesos		0.8	%		3.9	%
Uruguayan Pesos		0.8	%		6.6	%
Guatemalan Quetzal		0.0	%		6.3	%
Total debt		100.0	%		4.8	%

Fixed rate ⁽²⁾		90.1	%
Variable rate ⁽²⁾		9.9	%

DEBT MATURITY PROFILE		2022				2023				2024				2025				2026				2027+
% of Total Debt			2.7	%			5.4	%			1.4	%			1.1	%			1.2	%			88.3	%

⁽¹⁾ Includes mainly the intangible assets generated by acquisitions.

⁽²⁾ Includes the effect of derivative financial instruments on long-term debt.

February 28, 2022

FEMSA Comercio - Proximity Division

Results of Operations

Millions of Pesos

	For the fourth quarter of:														For the twelve months of:
	2021			% of rev.			2020			% of rev.		% Var.			2021		% of rev.		2020		% of rev.		% Var.
Total revenues		53,510			100.0			46,769			100.0		14.4			198,586		100.0		181,277		100.0		9.5
Cost of sales		28,835			53.9			25,905			55.4		11.3			114,390		57.6		106,981		59.0		6.9
Gross profit		24,675			46.1			20,864			44.6		18.3			84,196		42.4		74,296		41.0		13.3
Administrative expenses		1,875			3.5			1,708			3.7		9.8			6,145		3.1		5,696		3.1		7.9
Selling expenses		16,115			30.2			14,160			30.2		13.8			59,542		29.9		56,030		31.0		6.3
Other operating expenses (income), net		(81	)		(0.2	)		89			0.2		(191.0	)		122		0.1		550		0.3		(77.8	)
Income from operations		6,766			12.6			4,907			10.5		37.9			18,387		9.3		12,020		6.6		53.0
Depreciation		2,693			5.0			2,560			5.5		5.2			10,454		5.3		10,265		5.7		1.8
Amortization & other non-cash charges		188			0.4			221			0.4		(14.9	)		863		0.4		1,048		0.6		(17.7	)
Operative cash flow (EBITDA)		9,647			18.0			7,688			16.4		25.5			29,704		15.0		23,333		12.9		27.3
CAPEX		1,946						1,219					59.6			7,179				6,907				3.9

Information of OXXO Stores
Total stores																20,431				19,566				4.4
Stores Mexico																20,121				19,295				4.3
Stores South America																310				271				14.4

Net new conveniences stores:
vs. Last quarter		434						(67	)				N.S.
Year-to-date		865						236					N.S.
Last-twelve-months		865						236					266.5

Same-store data: ⁽¹⁾
Sales (thousands of pesos)		828.9						737.1					12.5			778.2				722.3				7.7
Traffic (thousands of transactions)		17.6						17.3					1.9			17.3				17.7				(2.2	)
Ticket (pesos)		47.0						42.6					10.4			44.9				40.7				10.2

⁽¹⁾Monthly average information per store, considering same stores with more than twelve months of operations, income from services are included.

February 28, 2022

FEMSA Comercio - Health Division

Results of Operations

Millions of Pesos

	For the fourth quarter of:							For the twelve months of:
	2021	% of rev.	2020		% of rev.	% Var.		2021	% of rev.	2020	% of rev.	% Var.
Total revenues	18,581	100.0	17,319		100.0	7.3		73,027	100.0	65,172	100.0	12.1
Cost of sales	12,843	69.1	11,966		69.1	7.3		51,291	70.2	45,597	70.0	12.5
Gross profit	5,738	30.9	5,353		30.9	7.2		21,736	29.8	19,575	30.0	11.0
Administrative expenses	906	4.9	849		4.9	6.7		3,255	4.5	3,314	5.1	(1.8	)
Selling expenses	3,856	20.7	3,667		21.1	5.2		14,620	20.0	13,540	20.7	8.0
Other operating expenses (income), net	48	0.3	(6	)	-	N.S.		99	0.1	65	0.1	52.3
Income from operations	928	5.0	843		4.9	10.1		3,762	5.2	2,656	4.1	41.6
Depreciation	721	3.9	781		4.5	(7.7	)	2,864	3.9	2,968	4.6	-3.5
Amortization & other non-cash charges	161	0.8	149		0.8	8.1		602	0.8	603	0.9	(0.2	)
Operative cash flow (EBITDA)	1,810	9.7	1,773		10.2	2.1		7,228	9.9	6,227	9.6	16.1
CAPEX	1,041		632			64.7		2,049		1,694		21.0

Information of Stores
Total Stores								3,652		3,368		8.4
Stores Mexico								1,428		1,331		7.3
Stores South America								2,224		2,037		9.2

Net new stores:
vs. Last quarter	112		119			(5.9	)
Year-to-date	284		207			37.2
Last-twelve-months	284		207			37.2

Same-store data: ⁽¹⁾
Sales (thousands of pesos)	1,387.1		1,312.5			5.7		1,381.6		1,261.7		9.5

⁽¹⁾ Monthly average information per store, considering same stores with more than twelve months of all the operations of FEMSA Comercio - Health Division.

February 28, 2022

FEMSA Comercio - Fuel Division

Results of Operations

Millions of Pesos

	For the fourth quarter of:
				Comparable ^(A)				As Reported
	2021		% of rev.	2020	% of rev.	% Var.		2020	% of rev.	% Var.
Total revenues	11,065		100.0	8,497	100.0	30.2		8,485	100.0	30.4
Cost of sales	9,503		85.9	7,205	84.8	31.9		7,354	86.7	29.2
Gross profit	1,562		14.1	1,292	15.2	20.9		1,131	13.3	38.1
Administrative expenses	78		0.7	74	0.9	5.4		74	0.9	5.4
Selling expenses	1,051		9.5	884	10.4	18.9		842	9.9	24.8
Other operating expenses (income), net	(2	)	-	3	-	(166.7	)	3	-	(166.7	)
Income from operations	435		3.9	331	3.9	31.4		212	2.5	105.2
Depreciation	250		2.3	208	2.4	20.2		208	2.5	20.2
Amortization & other non-cash charges	17		0.1	7	0.1	142.9		8	-	112.5
Operative cash flow (EBITDA)	702		6.3	546	6.4	28.6		428	5.0	64.0
CAPEX	34			212		(83.8	)	212		(83.8	)

Information of OXXO GAS Service Stations
Total service stations	567			558		1.6
Net new service stations
vs. Last quarter	1			7		(100.0	)
Year-to-date	9			13		(30.8	)
Last-twelve-months	9			13		(30.8	)

Volume (million of liters) total stations	564			516		9.3

Same-stations data: ⁽¹⁾
Sales (thousands of pesos)	6,338.8			5,139.8		23.3
Volume (thousands of liters)	338.4			312.3		8.3
Average price per liter	18.7			16.5		13.8

^(A) Unaudited consolidated financial information

⁽¹⁾ Monthly average information per station, considering same stations with more than twelve months of operations.

FEMSA Comercio - Fuel Division

Results of Operations

Millions of Pesos

	For the twelve months of:
				Comparable ^(A)				As Reported
	2021		% of rev.	2020	% of rev.	% Var.		2020	% of rev.	% Var.
Total revenues	39,922		100.0	34,322	100.0	16.3		34,292	100.0	16.4
Cost of sales	34,653		86.8	29,493	85.9	17.5		29,992	87.5	15.5
Gross profit	5,269		13.2	4,829	14.1	9.1		4,300	12.5	22.5
Administrative expenses	290		0.7	252	0.7	15.1		252	0.7	15.1
Selling expenses	3,571		9.0	3,315	9.7	7.7		3,226	9.4	10.7
Other operating expenses (income), net	(8	)	-	9	-	(188.9	)	9	-	(188.9	)
Income from operations	1,416		3.5	1,253	3.7	13.0		813	2.4	74.2
Depreciation	966		2.4	856	2.5	12.9		856	2.5	12.9
Amortization & other non-cash charges	20		0.1	31	-	(35.5	)	31	0.1	(35.5	)
Operative cash flow (EBITDA)	2,402		6.0	2,140	6.2	12.2		1,700	5.0	41.3
CAPEX	243			549		(55.7	)	549		(55.7	)

Information of OXXO GAS Service Stations
Total service stations	567			558		1.6
Net new service stations
vs. Last quarter	1			7		(100.0	)
Year-to-date	9			13		(30.8	)
Last-twelve-months	9			13		(30.8	)

Volume (million of liters) total stations	2,103			2,066		1.8

Same-stations data: ⁽¹⁾
Sales (thousands of pesos)	5,861.8			5,193.5		12.9
Volume (thousands of liters)	315.7			313.4		0.7
Average price per liter	18.6			16.6		12.0

^(A) Unaudited consolidated financial information

⁽¹⁾ Monthly average information per station, considering same stations with more than twelve months of operations.

February 28, 2022

Logistics & Distribution
Results of Operations
Millions of Pesos

	For the fourth quarter of:						For the twelve months of:
	2021			% of rev.			2021			% of rev.
Total revenues		14,603			100.0			48,412			100.0
Cost of sales		11,416			78.2			37,843			78.2
Gross profit		3,187			21.8			10,569			21.8
Administrative expenses		1,301			8.9			4,533			9.4
Selling expenses		1,465			10.0			4,060			8.3
Other operating expenses (income), net		(157	)		(1.1	)		(155	)		(0.3	)
Income from operations		578			4.0			2,132			4.4
Depreciation		552			3.8			1,859			3.8
Amortization & other non-cash charges		412			2.8			970			2.0
Operative cash flow (EBITDA)		1,542			10.6			4,961			10.2
CAPEX		124						557

February 28, 2022

Coca-Cola FEMSA

Results of Operations

Millones of pesos

	For the fourth quarter of:											For the twelve months of:
	2021		% of rev.		2020		% of rev.		% Var.			2021		% of rev.		2020		% of rev.		% Var.
Total revenues		53,273		100.0		49,116		100.0		8.5			194,804		100.0		183,615		100.0		6.1
Cost of sales		29,288		55.0		27,177		55.3		7.8			106,206		54.5		100,804		54.9		5.4
Gross profit		23,985		45.0		21,939		44.7		9.3			88,598		45.5		82,811		45.1		7.0
Administrative expenses		2,232		4.2		2,119		4.3		5.3			9,012		4.6		7,891		4.3		14.2
Selling expenses		13,672		25.6		12,256		25.0		11.6			51,709		26.6		48,554		26.5		6.5
Other operating expenses (income), net		303		0.6		335		0.7		(9.6	)		475		0.2		1,123		0.6		(57.7	)
Income from operations		7,778		14.6		7,229		14.7		7.6			27,402		14.1		25,243		13.7		8.6
Depreciation		2,277		4.3		2,204		4.5		3.3			8,949		4.6		9,011		4.9		(0.7	)
Amortization & other non-cash charges		593		1.1		565		1.2		5.0			2,498		1.2		3,091		1.7		(19.2	)
Operative cash flow (EBITDA)		10,648		20.0		9,998		20.4		6.5			38,849		19.9		37,345		20.3		4.0
CAPEX		5,668				4,118				37.7			13,865				10,354				33.9

Sales volumes
(Millions of unit cases)
Mexico and Central America		531.8		55.9		495.0		54.9		7.4			2,057.9		59.5		1,991.7		60.6		3.3
South America		147.4		15.5		131.8		14.6		11.8			496.8		14.4		429.8		13.1		15.6
Brazil		272.1		28.6		275.4		30.5		(1.2	)		903.2		26.1		862.9		26.3		4.7
Total		951.3		100.0		902.2		100.0		5.5			3,457.9		100.0		3,284.4		100.0		5.3

February 28, 2022

FEMSA

Macroeconomic Information

	Inflation						End-of-period Exchange Rates
							Dec -21				Dec-20
	4Q 2021			LTM ⁽¹⁾ Dec-21			Per USD		Per MXN		Per USD		Per MXN
Mexico		2.42	%		7.36	%		20.58		1.0000		19.95		1.0000
Colombia		1.54	%		5.62	%		3,981.16		0.0052		3,432.50		0.0058
Brazil		3.80	%		10.06	%		5.58		3.6885		5.20		3.8387
Argentina		11.07	%		50.94	%		102.72		0.2004		84.15		0.2371
Chile		3.69	%		7.17	%		850.25		0.0242		711.24		0.0280
Euro Zone		1.86	%		4.97	%		0.89		23.2463		0.81		24.5213

⁽¹⁾ LTM = Last twelve months.

February 28, 2022

Coca-Cola FEMSA Announces Fourth Quarter and Full Year 2021 Results

Mexico City, February 24, 2022, Coca-Cola FEMSA, S.A.B. de C.V. (BMV: KOF UBL, NYSE: KOF) (“Coca-Cola FEMSA,” “KOF” or the “Company”), the largest Coca-Cola franchise bottler in the world by sales volume, announces its results for the fourth quarter and the full year of 2021.

FOURTH QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS

Consolidated volumes increased 5.4%, driven mainly by volume growth in Mexico, Central America, Colombia, Argentina, and Uruguay, partially offset by a slight volume decline in Brazil. Total volumes increased 6.9% versus our 2019 baseline.

Total revenues increased 8.5%, while comparable revenues increased 10.5%, driven by our pricing initiatives, volume growth, and favorable price-mix effects. This increase was partially offset by a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. Total revenues increased 3.0% versus the same period of 2019.

Operating income increased 7.6%, while comparable operating income increased 8.0%, driven mainly by an increase in our top-line and favorable hedging initiatives, coupled with the resumption of the recognition of tax credits in Brazil related to the Manaus Free Trade Zone. These effects were partially offset by unfavorable raw material prices and the depreciation of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. Operating income increased 22.1% as compared to the same period of 2019.

Majority net income increased 82.8%, driven mainly by solid operating results, coupled with the one-time recognition of a favorable deferred tax credit in Brazil and a decrease in comprehensive financial result during the quarter.

FULL YEAR OPERATIONAL AND FINANCIAL HIGHLIGHTS

Total volumes increased 5.3%, driven by a recovery in all of our countries as a result of solid execution, coupled with economic reopening and increased mobility across our markets. Total volumes increased 2.6% versus our 2019 baseline.

Total revenues increased 6.1%, while comparable revenues increased 11.1%, driven by volume growth, our pricing initiatives, and favorable price-mix effects, partially offset by a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. Total revenues remained flat versus 2019.

Operating income increased 8.6%, while comparable operating income increased 11.8%. This increase was driven mainly by an increase in our gross profit and favorable hedging initiatives, coupled with the resumption of the recognition of tax credits in Brazil related to the Manaus Free Trade Zone. These effects were partially offset by an increase in raw material prices and the normalization of certain operating expenses. As compared to 2019, our operating income increased 7.8%.

^·

Earnings per share¹ were Ps. 0.93 (Earnings per unit were Ps. 7.48, and per ADS were Ps. 74.77.).

FINANCIAL SUMMARY FOR THE FOURTH QUARTER AND FULL YEAR OF 2021

Change vs. same period of last year

		Total Revenues						Gross Profit						Operating Income						Majority Net Income
		4Q 2021			FY 2021			4Q 2021			FY 2021			4Q 2021			FY 2021			4Q 2021			FY 2021
	Consolidated		8.5	%		6.1	%		9.3	%		7.0	%		7.6	%		8.6	%		82.8	%		52.4	%
As Reported	Mexico & Central America		13.7	%		8.4	%		9.1	%		8.4	%		2.6	%		8.1	%
	South America		2.0	%		2.8	%		9.6	%		4.4	%		18.6	%		9.5	%

	Consolidated		10.5	%		11.1	%		11.0	%		11.3	%		8.0	%		11.8	%
Comparable ⁽²⁾	Mexico & Central America		13.7	%		9.7	%		9.1	%		9.6	%		2.4	%		8.9	%
	South America		6.4	%		13.1	%		14.2	%		14.7	%		20.6	%		18.7	%

John Santa Maria, Coca-Cola FEMSA’s CEO, commented:

“Our full-year 2021 results reflect our business’s resilience and our ability to deliver accelerated results. Driven by the unwavering commitment of our teams to execute the right strategies across our markets, our volumes increased in all of our territories, resulting in consolidated volume growth of 5.3% year on year and 2.6% versus 2019. Notably, our revenues and our operating income grew 6.1% and 8.6%, respectively, for an operating income margin expansion of 30 basis points—all in the face of a dynamic raw material and supply chain environment.

Moreover, we achieved significant strategic milestones during the year; we strengthened our partnership with The Coca-Cola Company, accelerated the rollout of our digital capabilities, and capitalized on value-enhancing acquisition opportunities. Looking ahead, we are confident that we have the right vision and strategy to continue transforming our company and delivering sustainable long-term value for many years to come.”

(1)

Quarterly earnings / outstanding shares. Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806.7 million shares outstanding. For the convenience of the reader, as a KOF UBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOF UBL Units.

(2)

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 20 of 35

RECENT DEVELOPMENTS

On November 3, 2021, Coca-Cola FEMSA paid the second installment of the 2020 dividend approved for Ps. 0.63 per share (equivalent to Ps. 5.04 per unit).

On December 17, 2021, Coca-Cola FEMSA, S.A.B. de C.V announced that its Brazilian subsidiary Spal Industria Brasileira de Bebidas S.A. (“Spal”) reached an agreement to acquire 100% of Brazilian Coca-Cola bottler, CVI Refrigerantes Ltda. (“CVI”). The parties agreed to an all-cash transaction for an enterprise value of R$632.5 million. The transaction was successfully closed on January 24, 2022. With the acquisition of CVI, Coca-Cola FEMSA bolsters its leadership position in the region to reach 52% of the Coca-Cola System’s volume in Brazil. The Company adds to its operation one bottling facility and three distribution centers that serve more than 13 thousand points of sale and more than 2.8 million consumers.

On January 25, 2022, Coca-cola FEMSA announced the construction of a new recycling plant together with ALPLA México, S.A. de C.V. (“ALPLA”), known as “PLANETA” (Planta Nueva Ecologia de Tabasco), to bolster the circular economy in the south and southeast regions of Mexico. The plant will be built in the state of Tabasco and will have a joint investment between Coca-Cola FEMSA and ALPLA of more than US$60 million. The plant is expected to start operations during the first quarter of 2023.

On February 8, 2022, Coca-Cola FEMSA announced that it became the only Mexico-based company in the beverage sector to be included in the S&P Global Sustainability Yearbook 2022 for the second consecutive year due to its high performance in the S&P Global Corporate Sustainability Assessment (CSA). The Company was ranked within the top 15% of leading companies in sustainability under S&P Global’s proprietary annual evaluation of the environmental, social, economic, and corporate governance dimensions of more than 7,000 companies around the world.

CONFERENCE CALL INFORMATION

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 21 of 35

CONSOLIDATED FOURTH QUARTER RESULTS

	As Reported							Comparable ⁽¹⁾
Expressed in millions of Mexican pesos	4Q 2021		4Q 2020		Δ%			Δ%
Total revenues		53,273		49,116		8.5	%		10.5	%
Gross profit		23,985		21,939		9.3	%		11.0	%
Operating income		7,778		7,229		7.6	%		8.0	%
Operating cash flow ⁽²⁾		10,648		9,998		6.5	%		7.5	%

Volume increased 5.4% to 951.3 million unit cases, driven mainly by volume growth in Mexico, Central America, Colombia, Argentina and Uruguay. This increase was partially offset by a slight volume decline in Brazil. Consolidated volume increased 6.9% versus our 2019 baseline.

Total revenues increased 8.5% to Ps. 53,273 million. This increase was driven mainly by our pricing initiatives, coupled with favorable price-mix effects and volume growth. These effects were partially offset by unfavorable currency translation effects from some of our operating currencies into Mexican Pesos and a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. On a comparable basis, total revenues would have increased 10.5%. Total revenues increased 3.0% versus the same period of 2019.

Gross profit increased 9.3% to Ps. 23,985 million, and gross margin expanded 30 basis points to 45.0%. This increase was driven mainly by our raw material hedging strategies, coupled with revenue management initiatives and the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone in Brazil. These effects were partially offset by the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs and higher concentrate costs in Mexico. On a comparable basis, gross profit would have increased 11.0%. Gross profit increased 4.6% versus the fourth quarter of 2019.

Operating income increased 7.6% to Ps. 7,778 million, and operating margin contracted 10 basis points to 14.6%. This operating income increase was driven mainly by favorable top-line performance, partially offset by the normalization of certain operating expenses such as labor, and maintenance related to the reopening and increased mobility across our operations. On a comparable basis, operating income would have increased 8.0%. Our operating income increased 22.1% versus our 2019 baseline.

⁽¹⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽²⁾

Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 22 of 35

Comprehensive financing result recorded an expense of Ps. 748 million, compared to an expense of Ps. 1,777 million in the same period of 2020.

This quarter, the Company had a reduction in interest expense, net, as compared to the same period of 2020, as we recognized an increase in our interest income related to an increase in interest rates in Brazil. This decrease was partially offset by an increase in interest expenses.

Moreover, we recorded a foreign exchange gain of Ps. 79 million as compared to a foreign exchange loss of Ps. 346 million recorded during the same period of 2020, as our cash exposure in U.S. dollars was positively impacted by the depreciation of the Mexican Peso and the Brazilian Real during the quarter.

In addition, the Company recorded a gain of Ps. 269 million in monetary position in inflationary subsidiaries as compared to a gain of Ps. 123 million during the same period of 2020. Finally, we recorded a gain in financial instruments of Ps. 131 million, driven mainly by a market value gain recognized during this quarter, as compared to a loss of Ps. 214 million recorded during the same period of 2020.

Income tax as a percentage of income before taxes was 14.1% as compared to 36.3% during the same period of the previous year. This decrease was driven mainly by the one-time effect of the recognition of a favorable deferred tax credit in Brazil and the unfavorable deferred tax adjustments in Mexico that impacted the same period of 2020.

Net income attributable to equity holders of the company reached Ps. 5,809 million as compared to Ps. 3,177 million during the same period of the previous year, driven mainly by a lower consolidated tax rate, coupled with a decrease in comprehensive financial results and solid operating results. Earnings per share¹ were Ps. 0.35 (Earnings per unit were Ps. 2.77, and earnings per ADS were Ps. 27.65.).

⁽¹⁾

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 23 of 35

CONSOLIDATED FULL YEAR RESULTS

CONSOLIDATED FULL YEAR RESULTS

	As Reported							Comparable ⁽¹⁾
Expressed in millions of Mexican pesos	FY 2021		FY 2020		Δ%			Δ%
Total revenues		194,804		183,615		6.1	%		11.1	%
Gross profit		88,598		82,811		7.0	%		11.3	%
Operating income		27,402		25,243		8.6	%		11.8	%
Operating cash flow ⁽²⁾		38,849		37,345		4.0	%		7.8	%

Volume increased 5.3% to 3,457.9 million unit cases in the full year of 2021 as compared to the same period of 2020, driven by volume growth across all of our operations resulting from our solid execution, coupled with gradual recoveries and increases in mobility. Consolidated volume increased 2.6% as compared to our 2019 baseline.

Total revenues increased 6.1% to Ps. 194,804 million in the full year of 2021 as compared to the same period of 2020, driven by volume growth, our pricing initiatives, and favorable price-mix effects. This increase was partially offset by unfavorable currency translation effects resulting from the depreciation of all of our operating currencies into Mexican Pesos, and a decline in beer revenues related to the partial transition of the beer portfolio in Brazil. In addition, during the same period of 2020, we recorded non-recurring other operating revenues related to an entitlement to reclaim tax payments in Brazil. On a comparable basis, total revenues would have increased 11.1%. Total revenues increased 0.2% versus 2019.

Gross profit increased 7.0% to Ps. 88,598 million in the full year of 2021 as compared to the same period of 2020, and gross margin expanded 40 basis points to 45.5%. Favorable price-mix effects, our raw material hedging strategies, and the positive effect of the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone in Brazil were partially offset by: i) higher raw material prices; ii) higher concentrate costs in Mexico; iii) and the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 11.3%. Gross profit increased 1.2% versus 2019.

⁽¹⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽²⁾

Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

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February 24, 2022

Page 24 of 35

Operating income increased 8.6% to Ps. 27,402 million in the full year of 2021 as compared to the same period of 2020, and operating margin expanded 30 basis points to 14.1%. This increase was mainly driven by a solid gross profit performance partially offset by the normalization of certain operating expenses such as marketing, labor, and maintenance related to increases in mobility across our operations. On a comparable basis, operating income would have increased 11.8%. Our operating income increased 7.8% versus our 2019 baseline.

Comprehensive financing result recorded an expense of Ps. 4,219 million during the full year of 2021 compared to an expense of Ps. 6,678 million in the same period of 2020.

Interest expense, net, recorded a decrease during the year, driven mainly by a one-time interest expense related to our successful debt refinancing initiatives during the first quarter of 2020, coupled with the re-payment of short-term financings and the re-payment of a Mexican Peso-denominated bond. These short-term financings were a preventive measure to reinforce the Company’s cash position in the face of the uncertainties driven by the COVID-19 pandemic.

Moreover, we recorded a foreign exchange gain of Ps. 227 million as compared to a foreign exchange gain of Ps. 4 million recorded during the same period of 2020, as our cash exposure to U.S. dollars was positively impacted by the depreciation of the Mexican Peso and the Brazilian Real.

In addition, we recognized a gain in monetary position in inflationary subsidiaries of Ps. 734 million as compared to a gain of Ps. 376 million recorded during the same period of 2020.

Finally, we recorded a gain in financial instruments of Ps. 80 million, driven mainly by a market value gain recognized during this year as compared to a loss of Ps. 212 million.

Income tax as a percentage of income before taxes was 28.9% as compared to 33.8% for the previous year. This decrease was driven by the one-time effect of a favorable deferred tax credit in Brazil recognized in 2021, and deferred tax adjustments in Mexico that were recognized during the fourth quarter of 2020.

Net income attributable to equity holders of the company reached Ps. 15,708 million in the full year of 2021 as compared to Ps. 10,307 million during the same period of the previous year. Earnings per share¹ were Ps. 0.93 (Earnings per unit were Ps. 7.48, and earnings per ADS were Ps. 74.77.).

⁽¹⁾

Earnings / outstanding shares. Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806.7 million shares outstanding. For the convenience of the reader, as each KOF UBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOF UBL Units.

Coca-Cola FEMSA Reports 4Q2021 Results

February 24, 2022

Page 25 of 35

MEXICO & CENTRAL AMERICA DIVISION FOURTH QUARTER RESULTS

(Mexico, Guatemala, Costa Rica, Panama, and Nicaragua)

MEXICO & CENTRAL AMERICA DIVISION RESULTS

	As Reported							Comparable ⁽¹⁾
Expressed in millions of Mexican pesos	4Q 2021		4Q 2020		Δ%			Δ%
Total revenues		30,792		27,073		13.7	%		13.7	%
Gross profit		14,918		13,670		9.1	%		9.1	%
Operating income		5,083		4,956		2.6	%		2.4	%
Operating cash flow ⁽²⁾		6,835		6,612		3.4	%		3.3	%

Volume increased 7.4% to 531.8 million unit cases, driven mainly by strong volume growth in Mexico, 14.1% volume growth in Guatemala, and 19.8% volume growth in Central America South, as a result of economic reopening and mobility increases across our territories. Volume increased 4.9% versus our 2019 baseline.

Total revenues increased 13.7% to Ps. 30,792 million, driven mainly by volume growth and favorable price-mix effects, coupled with pricing and revenue management initiatives. On a comparable basis, total revenues would have also increased 13.7%. Total revenues grew 13.0% versus the same period of 2019.

Gross profit increased 9.1% to Ps. 14,918 million, and gross margin contracted 210 basis points to 48.4%. This margin decrease was driven mainly by an increase in raw material costs, higher concentrate costs in Mexico, and the depreciation in the average exchange rate of most of our operating currencies as applied to our U.S. dollar-denominated raw material costs. These effects were partially offset by our raw material hedging strategies and favorable price-mix effects. On a comparable basis, gross profit would have also increased 9.1%. Gross profit increased 14.3% versus our 2019 baseline.

Operating income increased 2.6% to Ps. 5,083 million in the fourth quarter of 2021, and operating margin contracted 180 basis points to 16.5% during the period. This effect was driven mainly by the normalization of certain operating expenses such as labor and maintenance as compared to the same period of 2020, partially offset by certain operating expense efficiencies. On a comparable basis, operating income would have increased 2.4%. Our operating income increased 44.2% versus our 2019 baseline.

⁽¹⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽²⁾

Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

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February 24, 2022

Page 26 of 35

SOUTH AMERICA DIVISION FOURTH QUARTER RESULTS

(Brazil, Argentina, Colombia, and Uruguay)

SOUTH AMERICA DIVISION RESULTS

	As Reported							Comparable ⁽¹⁾
Expressed in millions of Mexican pesos	4Q 2021		4Q 2020		Δ%			Δ%
Total revenues		22,481		22,043		2.0	%		6.4	%
Gross profit		9,066		8,269		9.6	%		14.2	%
Operating income		2,695		2,273		18.6	%		20.6	%
Operating cash flow ⁽²⁾		3,813		3,385		12.6	%		15.9	%

Volume increased 3.0% to 419.6 million unit cases, driven mainly by 16.2% volume growth in Colombia, 5.8% in Argentina, and 7.2% in Uruguay. This increase was partially offset by a slight volume decline of 1.2% in Brazil. Volume increased 9.6% versus our 2019 baseline.

Total revenues increased 2.0% to Ps. 22,481 million, driven by volume growth and pricing and revenue management initiatives, coupled with favorable price-mix effects. This increase was partially offset by a reduction in beer revenues as a result of the partial transition of our beer portfolio in Brazil, coupled with unfavorable currency translation effects resulting from the depreciation of most of our operating currencies in the division as compared to the Mexican Peso. On a comparable basis, total revenues would have increased 6.4%. Total revenues declined 8.2% versus the same period of 2019.

Gross profit increased 9.6% to Ps. 9,066 million, and gross margin expanded 280 basis points to 40.3%, driven mainly by favorable price-mix effects, our raw material hedging strategies, and lower concentrate costs in Brazil related to the resumption of tax credits on concentrate purchased from the Manaus Free Trade Zone. This increase was partially offset by the depreciation of the average exchange rate of all our operating currencies in the division as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit would have increased 14.2%. Gross profit decreased 8.2% versus our 2019 baseline

Operating income increased 18.6% to Ps. 2,695 million in the fourth quarter of 2021, resulting in a margin expansion of 170 basis points to 12.0%. This increase was driven mainly by higher gross profit and an increase in operating leverage resulting from volume growth, partially offset by the transition of our beer portfolio in Brazil. On a comparable basis, operating income would have increased 20.6%. Operating income decreased 5.4% versus our 2019 baseline.

⁽¹⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽²⁾

Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

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February 24, 2022

Page 27 of 35

DEFINITIONS

Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.

Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.

Operating income is a non-GAAP financial measure computed as “gross profit – operating expenses – other operating expenses, net + operative equity method (gain) loss in associates.”

Operating cash flow is a non-GAAP financial measure computed as “operating income + depreciation + amortization & other operating non-cash charges.”

Earnings per share are equal to “Earnings / outstanding shares.” Earnings per share (EPS) for all periods are adjusted to give effect to the stock split resulting in 16,806,658,096 shares outstanding. For the convenience of the reader, as each KOF UBL Unit is comprised of 8 shares (3 Series B shares and 5 Series L shares), earnings per unit are equal to EPS multiplied by 8. Each ADS represents 10 KOF UBL Units.

COMPARABILITY

In an effort to provide our readers with a more useful representation of our company's underlying financial and operating performance, as of the first quarter 2020, we adjusted our methodology to calculate our comparable figures, no longer excluding hyperinflationary operations. Due to this change, our “comparable” term means, with respect to a year-over-year comparison, the change of a given measure excluding the effects of: (i) mergers, acquisitions, and divestitures; and (ii) translation effects resulting from exchange rate movements. In preparing this measure, management has used its best judgment, estimates, and assumptions in order to maintain comparability.

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February 24, 2022

Page 28 of 35

ABOUT THE COMPANY

Stock listing information: Mexican Stock Exchange, Ticker: KOFUBL | NYSE (ADS), Ticker: KOF | Ratio of KOFUBL to KOF = 10:1

Coca-Cola FEMSA files reports, including annual reports and other information with the U.S. Securities and Exchange Commission, or the “SEC,” and the Mexican Stock Exchange (Bolsa Mexicana de Valores, or the “BMV”) pursuant to the rules and regulations of the SEC (that apply to foreign private issuers) and of the BMV. Filings we make electronically with the SEC and the BMV are available to the public on the Internet at the SEC’s website at www.sec.gov, the BMV’s website at www.bmv.com.mx, and our website at www.coca-colafemsa.com.

Coca-Cola FEMSA, S.A.B. de C.V. is the largest Coca-Cola franchise bottler in the world by sales volume. The Company produces and distributes trademark beverages of The Coca-Cola Company, offering a wide portfolio of 129 brands to a population of more than 265 million. With over 80 thousand employees, the Company markets and sells approximately 3.3 billion unit cases through close to 2 million points of sale a year. Operating 49 manufacturing plants and 268 distribution centers, Coca-Cola FEMSA is committed to generating economic, social, and environmental value for all of its stakeholders across the value chain. The Company is a member of the Dow Jones Sustainability Emerging Markets Index, Dow Jones Sustainability MILA Pacific Alliance Index, FTSE4Good Emerging Index, and the Mexican Stock Exchange’s IPC and Social Responsibility and Sustainability Indices, among others. Its operations encompass franchise territories in Mexico, Brazil, Guatemala, Colombia, and Argentina, and, nationwide, in Costa Rica, Nicaragua, Panama, Uruguay, and Venezuela through its investment in KOF Venezuela. For further information, please visit www.coca-colafemsa.com.

ADDITIONAL INFORMATION

All of the financial information presented in this report was prepared under International Financial Reporting Standards (IFRS).

This news release may contain forward-looking statements concerning Coca-Cola FEMSA’s future performance, which should be considered as good faith estimates by Coca-Cola FEMSA. These forward-looking statements reflect management’s expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, many of which are outside Coca-Cola FEMSA’s control, which could materially impact the Company’s actual performance. References herein to “US$” are to United States dollars. This news release contains translations of certain Mexican peso amounts into U.S. dollars for the convenience of the reader. These translations should not be construed as representations that Mexican peso amounts actually represent such U.S. dollars amounts or could be converted into U.S. dollars at the rate indicated.

(6 pages of tables to follow)

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February 24, 2022

Page 29 of 35

COCA-COLA FEMSA

CONSOLIDATED INCOME STATEMENT

Millions of Pesos ⁽¹⁾

	For the Fourth Quarter of:																		For Full Year:
	2021			% of Rev.			2020			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁷⁾			2021			% of Rev.			2020			% of Rev.			Δ% Reported			Δ% Comparable ⁽⁷⁾
Transactions (million transactions)		5,564.3						4,924.5						13.0	%		13.0	%		19,490.9						17,397.7						12.0	%		12.0	%
Volume (million unit cases)		951.3						902.181						5.4	%		5.4	%		3,457.8						3,284.3						5.3	%		5.3	%
Average price per unit case		54.31						49.83						9.0	%					52.99						50.63						4.7	%
Net revenues		53,092						49,022						8.3	%					193,899						181,520						6.8	%
Other operating revenues		181						93						93.3	%					905						2,095						-56.8	%
Total revenues ⁽²⁾		53,273			100.0	%		49,116			100.0	%		8.5	%		10.5	%		194,804			100.0	%		183,615			100.0	%		6.1	%		11.1	%
Cost of goods sold		29,288			55.0	%		27,177			55.3	%		7.8	%					106,206			54.5	%		100,804			54.9	%		5.4	%
Gross profit		23,985			45.0	%		21,939			44.7	%		9.3	%		11.0	%		88,598			45.5	%		82,811			45.1	%		7.0	%		11.3	%
Operating expenses		15,905			29.9	%		14,375			29.3	%		10.6	%					60,721			31.2	%		56,444			30.7	%		7.6	%
Other operative expenses, net		323			0.6	%		230			0.5	%		40.4	%					560			0.3	%		748			0.4	%		-25.2	%
Operative equity method (gain) loss in associates⁽³⁾		(20	)		0.0	%		105			0.2	%		NA						(85	)		0.0	%		375			0.2	%		NA
Operating income ⁽⁵⁾		7,778			14.6	%		7,229			14.7	%		7.6	%		8.0	%		27,402			14.1	%		25,243			13.7	%		8.6	%		11.8	%
Other non operative expenses, net		30			0.1	%		59			0.1	%		NA						247			0.1	%		2,862			1.6	%		NA
Non Operative equity method (gain) loss in associates ⁽⁴⁾		(54	)		-0.1	%		18			0.0	%		NA						(3	)		0.0	%		(94	)		-0.1	%		NA
Interest expense		1,592						1,543						3.2	%					6,192						7,894						-21.6	%
Interest income		365						203						79.9	%					932						1,048						-11.1	%
Interest expense, net		1,227						1,340						-8.4	%					5,260						6,845						-23.2	%
Foreign exchange loss (gain)		(79	)					346						NA						(227	)					(4	)					NA
Loss (gain) on monetary position in inflationary subsidiries		(270	)					(123	)					118.3	%					(734	)					(376	)					95.4	%
Market value (gain) loss on financial instruments		(131	)					214						-161.1	%					(80	)					212						NA
Comprehensive financing result		748						1,777						-57.9	%					4,219						6,678						-36.8	%
Income before taxes		7,053						5,375						31.2	%					22,940						15,796						45.2	%
Income taxes		978						1,997						-51.0	%					6,609						5,428						21.7	%
Result of discontinued operations		-						-						NA						-						-						NA
Consolidated net income		6,076						3,378						79.9	%					16,331						10,368						57.5	%
Net income attributable to equity holders of the company		5,809			10.9	%		3,177			6.5	%		82.8	%					15,708			8.1	%		10,307			5.6	%		52.4	%
Non-controlling interest		267			0.5	%		201			0.4	%		NA						623			0.3	%		61			0.0	%		NA

Operating Cash Flow & CAPEX	2021	% of Rev.		2020	% of Rev.		Δ% Reported		Δ% Comparable ⁽⁷⁾		2021	% of Rev.		2020	% of Rev.		Δ% Reported		Δ% Comparable ⁽⁷⁾
Operating income ⁽⁵⁾	7,778	14.6	%	7,229	14.7	%	7.6	%			27,402	14.1	%	25,243	13.7	%	8.6	%
Depreciation	2,277			2,204			3.3	%			8,946			9,011			-0.7	%
Amortization and other operative non-cash charges	593			565			5.0	%			2,501			3,091			-19.1	%
Operating cash flow ⁽⁵⁾⁽⁶⁾	10,648	20.0	%	9,998	20.4	%	6.5	%	7.5	%	38,849	19.9	%	37,345	20.3	%	4.0	%	7.8	%
CAPEX	5,681			4,118			38.0	%			13,865			10,354			33.9	%

⁽¹⁾

Except volume and average price per unit case figures.

⁽²⁾

Please refer to page 14 and 15 for revenue breakdown.

⁽³⁾

Includes equity method in Jugos del Valle, Leão Alimentos, and Estrella Azul, among others.

⁽⁴⁾

Includes equity method in PIASA, IEQSA, Beta San Miguel, IMER, and KSP Participacoes, among others.

⁽⁵⁾

The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.

⁽⁶⁾

Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.

⁽⁷⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

⁽⁸⁾

For the full year total CAPEX effectively paid was Ps. 9,989 million pesos.

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February 24, 2022

Page 30 of 35

MEXICO & CENTRAL AMERICA DIVISION

RESULTS OF OPERATIONS

Millions of Pesos ⁽¹⁾

	For the Fourth Quarter of:																	For Full Year:
	2021			% of Rev.			2020		% of Rev.			Δ% Reported			Δ% Comparable ⁽⁶⁾			2021			% of Rev.			2020		% of Rev.			Δ% Reported			Δ% Comparable ⁽⁶⁾
Transactions (million transactions)		2,816.4						2,486.6					13.3	%		13.3	%		10,610.0						9,838.4					7.8	%		7.8	%
Volume (million unit cases)		531.8						495.0					7.4	%		7.4	%		2,057.9						1,991.7					3.3	%		3.3	%
Average price per unit case		57.85						54.63					5.9	%					56.24						53.57					5.0	%
Net revenues		30,765						27,041											115,731						106,704
Other operating revenues		26						32											63						79
Total Revenues ⁽²⁾		30,792			100.0	%		27,073		100.0	%		13.7	%		13.7	%		115,794			100.0	%		106,783		100.0	%		8.4	%		9.7	%
Cost of goods sold		15,873			51.6	%		13,403		49.5	%								58,428			50.5	%		53,877		50.5	%
Gross profit		14,918			48.4	%		13,670		50.5	%		9.1	%		9.1	%		57,366			49.5	%		52,906		49.5	%		8.4	%		9.6	%
Operating expenses		9,666			31.4	%		8,584		31.7	%								38,049			32.9	%		34,629		32.4	%
Other operative expenses, net		203			0.7	%		56		0.2	%								615			0.5	%		666		0.6	%
Operative equity method (gain) loss in associates ⁽³⁾		(34	)		-0.1	%		74		0.3	%								(140	)		-0.1	%		188		0.2	%
Operating income ⁽⁴⁾		5,083			16.5	%		4,956		18.3	%		2.6	%		2.4	%		18,841			16.3	%		17,423		16.3	%		8.1	%		8.9	%
Depreciation, amortization & other operating non-cash charges		1,753			5.7	%		1,656		6.1	%								7,040			6.1	%		7,451		7.0	%
Operating cash flow ⁽⁴⁾⁽⁵⁾		6,835			22.2	%		6,612		24.4	%		3.4	%		3.3	%		25,881			22.4	%		24,873		23.3	%		4.1	%		5.1	%

⁽¹⁾

Except volume and average price per unit case figures.

⁽²⁾

Please refer to page 14 and 15 for revenue breakdown.

⁽³⁾

Includes equity method in Jugos del Valle and Estrella Azul, among others.

⁽⁴⁾

The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.

⁽⁵⁾

Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.

⁽⁶⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

SOUTH AMERICA DIVISION

RESULTS OF OPERATIONS

Millions of Pesos ⁽¹⁾

	For the Fourth Quarter of:																For Full Year:
	2021		% of Rev.			2020		% of Rev.			Δ% Reported			Δ% Comparable ⁽⁶⁾			2021			% of Rev.			2020		% of Rev.			Δ% Reported			Δ% Comparable ⁽⁶⁾
Transactions (million transactions)		2,747.9					2,438.0					12.7	%		12.7	%		8,880.9						7,559.2					17.5	%		17.5	%
Volume (million unit cases)		419.6					407.2					3.0	%		3.0	%		1,400.0						1,292.7					8.3	%		8.3	%
Average price per unit case		49.81					44.00					13.2	%					48.21						46.09					4.6	%
Net revenues		22,327					21,981											78,168						74,815
Other operating revenues		154					62											841						2,016
Total Revenues ⁽²⁾		22,481		100.0	%		22,043		100.0	%		2.0	%		6.4	%		79,010			100.0	%		76,831		100.0	%		2.8	%		13.1	%
Cost of goods sold		13,415		59.7	%		13,774		62.5	%								47,778			60.5	%		46,927		61.1	%
Gross profit		9,066		40.3	%		8,269		37.5	%		9.6	%		14.2	%		31,232			39.5	%		29,905		38.9	%		4.4	%		14.7	%
Operating expenses		6,238		27.7	%		5,791		26.3	%								22,671			28.7	%		21,815		28.4	%
Other operative expenses, net		119		0.5	%		174		0.8	%								(56	)		-0.1	%		82		0.1	%
Operative equity method (gain) loss in associates ⁽³⁾		14		0.1	%		31		0.1	%								55			0.1	%		188		0.2	%
Operating income ⁽⁴⁾		2,695		12.0	%		2,273		10.3	%		18.6	%		20.6	%		8,561			10.8	%		7,820		10.2	%		9.5	%		18.7	%
Depreciation, amortization & other operating non-cash charges		1,118		5.0	%		1,113		5.0	%								4,407			5.6	%		4,652		6.1	%
Operating cash flow ⁽⁴⁾⁽⁵⁾		3,813		17.0	%		3,385		15.4	%		12.6	%		15.9	%		12,968			16.4	%		12,472		16.2	%		4.0	%		13.6	%

⁽¹⁾

Except volume and average price per unit case figures.

⁽²⁾

Please refer to page 14 and 15 for revenue breakdown.

⁽³⁾

Includes equity method in Leão Alimentos and Verde Campo, among others.

⁽⁴⁾

The operating income and operating cash flow lines are presented as non-GAAP measures for the convenience of the reader.

⁽⁵⁾

Operating cash flow = operating income + depreciation, amortization & other operating non-cash charges.

⁽⁶⁾

Please refer to page 9 for our definition of “comparable” and a description of the factors affecting the comparability of our financial and operating performance.

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 31 of 35

COCA-COLA FEMSA

CONSOLIDATED BALANCE SHEET

Millions of Pesos

Assets	Dec-21			Dec-20			% Var.
Current Assets
Cash, cash equivalents and marketable securities		47,248			43,497			9	%
Total accounts receivable		13,014			11,523			13	%
Inventories		11,960			9,727			23	%
Other current assets		8,142			7,693			6	%
Total current assets		80,364			72,440			11	%
Non-Current Assets
Property, plant and equipment		113,827			109,551			4	%
Accumulated depreciation		(51,644	)		(50,091	)		3	%
Total property, plant and equipment, net		62,183			59,460			5	%
Right of use assets		1,472			1,278			15	%
Investment in shares		7,494			7,623			-2	%
Intangible assets and other assets		102,174			103,971			-2	%
Other non-current assets		17,880			18,294			-2	%
Total Assets		271,567			263,066			3	%

Liabilities & Equity	Dec-21		Dec-20		% Var.
Current Liabilities
Short-term bank loans and notes payable		2,453		5,017		-51	%
Suppliers		22,745		17,195		32	%
Short-term leasing Liabilities		614		560
Other current liabilities		20,409		20,073		2	%
Total current liabilities		46,221		42,845		8	%
Non-Current Liabilities
Long-term bank loans and notes payable		83,329		82,461		1	%
Long Term Leasing Liabilities		891		746
Other long-term liabilities		13,554		14,557		-7	%
Total liabilities		143,995		140,609		2	%
Equity
Non-controlling interest		6,022		5,583		8	%
Total controlling interest		121,550		116,874		4	%
Total equity		127,572		122,457		4	%
Total Liabilities and Equity		271,567		263,066		3	%

	December 31, 2021
Debt Mix	% Total Debt ⁽¹⁾			% Interest Rate Floating ^{(1) (2)}			Average Rate
Currency
Mexican Pesos		53.5	%		9.5	%		7.5	%
U.S. Dollars		27.9	%		14.6	%		2.6	%
Colombian Pesos		1.7	%		0.0	%		5.9	%
Brazilian Reals		14.7	%		55.6	%		8.7	%
Uruguayan Pesos		1.7	%		0.0	%		6.6	%
Argentine Pesos		0.6	%		0.0	%		41.0	%
Total Debt		100	%		15.2	%		6.4	%

⁽¹⁾ After giving effect to cross- currency swaps and financial leases.

⁽²⁾ Calculated by weighting each year´s outstanding debt balance mix.

Debt Maturity Profile

Financial Ratios	FY 2021		FY 2020		Δ%

Net debt including effect of hedges ⁽¹⁾⁽³⁾	35,243		42,194		-16.5	%
Net debt including effect of hedges / Operating cash flow ⁽¹⁾⁽³⁾	0.91		1.13
Operating cash flow/ Interest expense, net ⁽¹⁾	7.39		5.46
Capitalization ⁽²⁾	40.7	%	42.7	%

⁽¹⁾ Net debt = total debt - cash

⁽²⁾ Total debt / (long-term debt + shareholders' equity)

⁽³⁾ After giving effect to cross-currency swaps.

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 32 of 35

COCA-COLA FEMSA
QUARTERLY- VOLUME, TRANSACTIONS & REVENUES

Volume
	4Q 2021										4Q 2020										YoY
	Sparkling		Water ⁽¹⁾		Bulk ⁽²⁾		Stills		Total		Sparkling		Water ⁽¹⁾		Bulk ⁽²⁾		Stills		Total		Δ %
Mexico		337.6		21.3		67.7		31.6		458.1		322.1		17.0		65.0		27.9		432.0		6.0	%
Guatemala		32.5		0.9		-		2.0		35.3		28.8		0.9		-		1.3		31.0		14.1	%
CAM South		31.9		1.7		0.1		4.6		38.4		27.2		1.3		0.1		3.4		32.0		19.8	%
Mexico and Central America		401.9		23.9		67.8		38.2		531.8		378.1		19.3		65.1		32.6		495.0		7.4	%
Colombia		66.9		8.7		3.8		6.9		86.2		60.8		5.0		4.1		4.2		74.2		16.2	%
Brazil ⁽³⁾		234.8		16.6		2.3		18.5		272.1		239.2		16.0		2.8		17.4		275.4		-1.2	%
Argentina		38.2		4.0		1.2		3.8		47.2		35.9		3.0		1.8		3.9		44.6		5.8	%
Uruguay		12.1		1.6		-		0.4		14.0		11.6		1.3		-		0.2		13.1		7.2	%
South America		352.0		30.8		7.3		29.5		419.6		347.6		25.2		8.8		25.7		407.2		3.0	%
TOTAL		753.9		54.7		75.1		67.7		951.3		725.6		44.5		73.8		58.2		902.2		5.4	%

⁽¹⁾ Excludes water presentations larger than 5.0 Lt ; includes flavored water.

⁽²⁾ Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water

Transactions
	4Q 2021								4Q 2020								YoY
	Sparkling		Water		Stills		Total		Sparkling		Water		Stills		Total		Δ %
Mexico		1,871.3		154.7		226.4		2,252.4		1,726.9		124.5		190.4		2,041.8		10.3	%
Guatemala		250.2		8.5		20.0		278.6		206.0		9.2		12.8		228.1		22.1	%
CAM South		225.2		11.3		48.8		285.4		177.4		8.9		30.4		216.7		31.7	%
Mexico and Central America		2,346.7		174.5		295.2		2,816.4		2,110.4		142.6		233.6		2,486.6		13.3	%
Colombia		455.2		93.8		66.9		615.9		375.9		56.5		36.0		468.5		31.5	%
Brazil ⁽³⁾		1,470.8		147.2		205.3		1,823.2		1,402.9		135.8		175.8		1,714.4		6.3	%
Argentina		188.5		25.3		28.6		242.5		156.3		16.5		24.7		197.6		22.7	%
Uruguay		56.4		6.3		3.5		66.2		50.7		4.9		1.9		57.5		15.2	%
South America		2,170.9		272.7		304.3		2,747.9		1,985.7		213.8		238.5		2,438.0		12.7	%
TOTAL		4,517.6		447.2		599.5		5,564.3		4,096.1		356.3		472.1		4,924.5		13.0	%

Revenues
Expressed in million Mexican Pesos	4Q 2021	4Q 2020	Δ%
Mexico	24,857	22,160	12.2	%
Guatemala	2,927	2,425	20.7	%
CAM South	3,007	2,487	20.9	%
Mexico and Central America	30,792	27,073	13.7	%
Colombia	4,146	3,202	29.5	%
Brazil ⁽⁴⁾	14,558	16,065	-9.4	%
Argentina	2,640	1,799	46.7	%
Uruguay	1,137	977	16.4	%
South America	22,481	22,043	2.0	%
TOTAL	53,273	49,116	8.5	%

⁽³⁾

Volume and transactions in Brazil do not include beer.

⁽⁴⁾

Brazil includes beer revenues of Ps.1,429.4 million for the fourth quarter of 2021 and Ps.4,065.2 million for the same period of the previous year.

⁽¹⁾	Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-ounce servings) and, when applied to soda fountains, refers to the volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.
⁽¹⁾	Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 33 of 35

COCA-COLA FEMSA
FY - VOLUME, TRANSACTIONS & REVENUES

Volume
	FY 2021										FY 2020										YoY
	Sparkling		Water ⁽¹⁾		Bulk ⁽²⁾		Stills		Total		Sparkling		Water ⁽¹⁾		Bulk ⁽²⁾		Stills		Total		Δ %
Mexico		1,304.0		82.3		281.4		122.3		1,790.0		1,295.6		70.2		281.8		111.6		1,759.2		1.8	%
Guatemala		120.3		3.8		-		7.2		131.3		106.6		3.2		-		4.3		114.1		15.1	%
CAM South		113.5		6.4		0.5		16.2		136.6		99.9		5.2		0.5		12.7		118.3		15.4	%
Mexico and Central America		1,537.8		92.5		282.0		145.6		2,057.9		1,502.1		78.6		282.3		128.6		1,991.6		3.3	%
Colombia		234.6		26.7		15.1		21.6		297.9		208.4		16.7		16.5		13.2		254.8		16.9	%
Brazil ⁽³⁾		786.3		48.4		7.9		60.6		903.2		755.5		46.8		9.6		51.0		862.9		4.7	%
Argentina		125.1		11.8		5.4		13.1		155.4		108.2		9.7		5.8		10.1		133.8		16.2	%
Uruguay		37.7		4.9		-		0.8		43.4		36.7		4.0		-		0.5		41.2		5.2	%
South America		1,183.7		91.8		28.3		96.2		1,399.9		1,108.8		77.2		32.0		74.8		1,292.7		8.3	%
TOTAL		2,721.4		184.3		310.3		241.8		3,457.8		2,610.9		155.8		314.3		203.4		3,284.3		5.3	%

⁽¹⁾ Excludes water presentations larger than 5.0 Lt ; includes flavored water.

⁽²⁾ Bulk Water = Still bottled water in 5.0, 19.0 and 20.0 - liter packaging presentations; includes flavored water

Transactions
	FY 2021								FY 2020								YoY
	Sparkling		Water		Stills		Total		Sparkling		Water		Stills		Total		Δ %
Mexico		7,105.8		604.8		859.0		8,569.5		6,915.6		521.6		765.4		8,202.6		4.5	%
Guatemala		922.5		39.1		73.5		1,035.2		748.7		33.1		37.8		819.6		26.3	%
CAM South		797.7		41.7		165.8		1,005.3		656.9		33.4		125.9		816.2		23.2	%
Mexico and Central America		8,826.0		685.6		1,098.4		10,610.0		8,321.2		588.2		929.1		9,838.4		7.8	%
Colombia		1,557.1		289.6		199.5		2,046.2		1,256.3		200.2		116.2		1,572.8		30.1	%
Brazil ⁽³⁾		4,798.5		419.5		648.6		5,866.6		4,319.3		390.9		498.1		5,208.3		12.6	%
Argentina		599.3		71.7		94.8		765.8		474.8		53.7		64.6		593.1		29.1	%
Uruguay		175.0		18.6		8.5		202.1		162.9		16.6		5.6		185.1		9.2	%
South America		7,130.0		799.4		951.5		8,880.9		6,213.3		661.4		684.6		7,559.2		17.5	%
TOTAL		15,956.0		1,485.1		2,049.9		19,490.9		14,534.5		1,249.6		1,613.6		17,397.7		12.0	%

Revenues
Expressed in million Mexican Pesos	FY 2021	FY 2020	Δ%
Mexico	94,762	87,833	7.9	%
Guatemala	10,535	9,328	12.9	%
CAM South	10,497	9,622	9.1	%
Mexico and Central America	115,794	106,783	8.4	%
Colombia	14,180	12,049	17.7	%
Brazil ⁽⁴⁾	53,051	56,191	-5.6	%
Argentina	8,408	5,468	53.8	%
Uruguay	3,371	3,124	7.9	%
South America	79,010	76,831	2.8	%
TOTAL	194,804	183,615	6.1	%

(3)

Volume and transactions in Brazil do not include beer.

(4)

Brazil includes beer revenues of Ps. 10,677.2 million for the full year of 2021 and Ps. 15,228.1 million for the same period of the previous year.

(1)

Volume is expressed in unit cases. Unit case refers to 192 ounces of finished beverage product (24 eight-once servings) and, when applied to soda fountains, refers to volume of syrup, powders, and concentrate that is required to produce 192 ounces of finished beverage product.

(2)

Transactions refers to the number of single units (e.g., a can or a bottle) sold, regardless of their size or volume or whether they are sold individually or in multipacks, except for soda fountains, which represent multiple transactions based on a standard 12 oz. serving.

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 34 of 35

COCA-COLA FEMSA
MACROECONOMIC INFORMATION
Inflation ⁽¹⁾
	4Q21		FY
Mexico	2.42	%	7.36	%
Colombia	1.54	%	5.62	%
Brazil	3.80	%	10.06	%
Argentina	11.07	%	50.94	%
Costa Rica	2.02	%	3.30	%
Panama	0.62	%	2.60	%
Guatemala	1.42	%	3.07	%
Nicaragua	3.45	%	7.21	%
Uruguay	1.28	%	7.96	%

⁽¹⁾Source: inflation estimated by the company based on historic publications from the Central Bank of each country.

Average Exchange Rates for each period ⁽²⁾
	Quarterly Exchange Rate (Local Currency per USD)				Year to Date Exchange Rate (Local Currency per USD)
	4Q21	4Q20	Δ%		FY 21	FY 20	Δ%
Mexico	20.75	20.63	0.6	%	20.28	21.49	-5.6	%
Colombia	3,879.98	3,662.52	5.9	%	3,744.25	3,695.27	1.3	%
Brazil	5.58	5.40	3.5	%	5.40	5.16	4.6	%
Argentina	100.50	80.08	25.5	%	102.72	84.15	22.1	%
Costa Rica	638.48	609.08	4.8	%	624.10	588.29	6.1	%
Panama	1.00	1.00	0.0	%	1.00	1.00	0.0	%
Guatemala	7.73	7.79	-0.8	%	7.74	7.72	0.2	%
Nicaragua	35.43	34.72	2.1	%	35.17	34.34	2.4	%
Uruguay	43.98	42.60	3.2	%	43.55	42.01	3.7	%

End-of-period Exchange Rates
	Closing Exchange Rate (Local Currency per USD)				Closing Exchange Rate (Local Currency per USD)
	Dec-21	Dec-20	Δ%		Sep-21	Sep-20	Δ%
Mexico	20.58	19.95	3.2	%	20.60	22.46	-8.3	%
Colombia	3,981.16	3,432.50	16.0	%	3,834.68	3,878.94	-1.1	%
Brazil	5.58	5.20	7.3	%	5.44	5.64	-3.6	%
Argentina	102.72	84.15	22.1	%	98.74	76.18	29.6	%
Costa Rica	645.25	617.30	4.5	%	629.71	606.68	3.8	%
Panama	1.00	1.00	0.0	%	1.00	1.00	0.0	%
Guatemala	7.72	7.79	-0.9	%	7.73	7.79	-0.7	%
Nicaragua	35.52	34.82	2.0	%	35.34	34.60	2.2	%
Uruguay	44.70	42.34	5.6	%	42.94	42.58	0.8	%

⁽²⁾ Average exchange rate for each period computed with the average exchange rate of each month.

Coca-Cola FEMSA Reports 4Q2021 Results
February 24, 2022

Page 35 of 35