Coca-Cola FEMSA Coca-Cola FEMSA September September 2006 2006 - PowerPoint PPT Presentation

Coca-Cola FEMSA Coca-Cola FEMSA September September 2006 2006

Cautionary Statement FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements relate to Coca-Cola FEMSA, S.A. de C.V. and subsidiaries (“KOF”) and their businesses, and are based on KOF management’s current expectations regarding KOF and its businesses. Recipients are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside KOF’s control, that could cause actual results of KOF and its businesses to differ materially from such statements. KOF is under no obligation, and expressly disclaims any intention or obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. ADDITIONAL INFORMATION AND WHERE TO FIND IT Documents filed by KOF are available at the Securities and Exchange Commission’s public reference room located at 450 Fifth Street, N.W., Washington, D.C. 20594. Investors and security holders may call the Commission at 1-800-SEC-0330 for further information on the public reference room. Free copies of all of KOF’s filings with the Commission may also be obtained by directing a request to: COCA-COLA FEMSA Guillermo González Camarena No. 600, Col. Centro de Ciudad Santa Fé 01210, México D.F., México Investor Relations Alfredo Fernandez / (52) 55 5081 51 20 / alfredo.fernandez@kof.com.mx Julieta Naranjo / (52) 55 5081 51 48 / julieta.naranjo@kof.com.mx 2

KOF – LTM June 2006 Volume (1,937 MM UC) Revenues (US$ 4,785 MM) EBITDA (US$ 1,058 MM) 6% 5% 8% 10% 13% 14% 3% 7% 10% 9% 54% 55% 6% 9% 68% 9% 7% 6% Mexico Central America Colombia Venezuela Brazil Argentina LTM 06 - Average Unit Price (USD/UC) 2.98 2.83 2.55 2.43 2.25 1.69 Mexico Central America Colombia Venezuela Brazil Argentina EBITDA Margin 27.3% 19.3% 17.1% 7.6% 17.6% 18.9% 3 (1) LTM information as of June 30, 2006.

KOF in the beverage world KOF is the third largest Coca-Cola bottler in the world in terms of revenues, and the second one in terms of EBITDA generation. 18,706 2005 Revenues (US MM) 17,253 2005 EBITDA (US MM) 16,174 13,753 11,885 9,564 6,567 5,657 5,531 4,657 4,577 1,368 3,939 4,098 988 2,596 909 3,107 2,043 2,522 1,487 1,653 734 1,014 964 318 194 201 CCE A-B SAB InBev PBG FEM SA AmBev TAP Hellenic M odelo KOF Arca Contal Andina 4 Source: Analysts Reports and Companies files

FEMSA’s Ownership Structure & Contribution by Business Public Float 39.6% 45.7% 100% 100% 14.7% LTM 2006 Revenues LTM 2006 EBITDA US$ 10,329 mm US$ 2,166 mm 9% 28% 46% 50% 41% 26% LTM as of June 30, 2006 5

Strong EBITDA and FCF growth A clear sign of our superior track record is our EBITDA growth and strong cash flow generation during the last 10 years….. EBITDA Free Cash Flow (US$ Million) (US$ Million) 118 118 (1) 058 1,058 1,029 029 394 394 383 383 899 899 1, 1, 323 323 742 742 307 307 293 293 537 537 223 223 518 518 206 206 438 438 330 330 128 37 243 243 244 244 31 (2) 1997 1998 1999 2000 2001 2002 2003 2004 2005 LTM06 1997 1998 1999 2000 2001 2002 2003 2004 2005 LTM06 CAGR 97- LTM06 18% CAGR 97- LTM06 30% Financial information in nominal terms translated into US Dollars using the end of period exchange rate of each year. 1997 1998 1999 2000 2001 2002 2003 2004 2005 3Q05 4Q05 1Q06 2Q06 FX Rate 8.05 9.88 9.50 9.61 9.18 10.46 11.24 11.15 10.71 10.81 10.71 10.95 11.40 (1) Tax Reimbursement (2) Last Twelve Months information as of June 30, 2006. Converted into U.S. dollars with ending exchange rate of each of 4 quarters. 6

Significant Debt Reduction …allowing us to reduce over US$ 900 million of net debt since the acquisition of Panamco… Cash Net Debt $2,828 $2,545 330 $2,399 $2,290 240 $2,221 194 503 307 $1,862 $1,835 $1,854 162 260 301 2,498 2,305 2,096 1,914 1,896 1,700 1,594 1,534 May 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec-05 Mar 06 Jun 06 FX Rate: 10.30 11.24 11.51 11.15 10.76 10.71 10.95 11.40 7

We have fostered our growth through...

…our multisegmentation strategy… Tailoring our multisegmentation strategy to our different markets… Mexico’s Portfolio Segments + + PREMIUM Profitability CORE SE Level 1.25 L RGB & 2.5L Ref Pet - Regional - Brands - + Competition 9

…our packaging innovation… … adapting our packaging portfolio to market needs. In Mexico alone we have over 13 packaging presentations for brand Coca-Cola… CC 2.5 lts N-Ret CC 2.5 lts. Ret $16.00 $11.00 - $13.00 BC 3.3 lts. $12.00 - 13.00 CC 2.0 lts. N-Ret $13.00 Red Cola CC 1.5 lts.N-Ret PC 2.0 lts. PC 3.0 lts CC 1.0 lts. N-Ret 3.3 lts. $11.00 $11.00 $12.00 $8.50 - $9. 00 $12.00 Price PC 1.0 lts. $8.50 BC 2.2 lts $8.50 CC 1.25 lts. Ret Jarrit os 2.0 lts. $7.50 – $8.00 $8.00 - $10.00 CC 600 ml. N-Ret CC can Mundet & Fanta $6.00 - $6.50 BC 1.28 lts. N-Ret $5.00 MF 2.0 lts PC 600ml. $6.50 $8.00 - $10.00 $5.50 PC can $4.50 BC 620ml. $3.50 KOF PC BC KOF Reg Multiflavor Brand Jarritos 0 0.5 1 1.5 2 2.5 3 3.5 Size (Lts) Single-serve Presentations Multi-serve Presentations 10

…our premium soft drinks… … strengthening our premium portfolio, which carries higher profitability… • In Mexico together with Coca-Cola Light , we launched a light version of every core flavored soft drink brand under a product umbrella called Spacio Leve . • In Brazil our premium brands grew over 100 basis points as a percentage of volumes in the 1Q06. 11

…non carbonated beverage segment… … exploring new beverage segments, capturing potential growth from new consumer trends… 12

KOF: An attractive investment

Attractive Growth Opportunities …we foresee several growth opportunities… • Improve per capita consumption • Opportunity to continue to capture value from our segmented product portfolio • Foster single serve consumption through directed strategies • Reinforce our portfolio of premium CSD’s brand alternatives • Opportunity to capture flavored carbonated soft drinks (“CSD’s”) growth with an ongoing pipeline of innovation • Special focus on the non-carb segment with new and existing brands of The Coca-Cola Company • Focus on bottled water profitability LTM Non-carbs (3) as % of CSD per Capita Consumption KOF Total Volume in KOF Territories during 2005 (1) 413 389 4.6 316 4.0 187 135 131 85 1.3 1.0 0.9 0.6 a o a l a ) a i c s 2 i c n l ) a o l a b a i e i i a ( 2 i r i l n c z x u a m b t e e r ( i i a n e B z c u a t x m r m o n M e i c e B e z r o g l i e A n o e M e r l r n g o e C e m A r h e m C V A A V t A r o l a l N a r t r t n n e e C C (1) Per capita consumption of soft drinks of Coca-Cola FEMSA products in the territories of Coca-Cola FEMSA, with the exception of North America which consists of KO products. (2) I ncludes Guatemala, Nicaragua, Costa Rica, and Panama. 14 (3) Last twelve months as of June 30, 2006. Excludes still and mineral water.

Attractive Profitability …we deliver attractive profitability compared to our peers… LTM EBITDA Margin June 2006 27.3% 24.7% 22.4% 22.1% 20.4% 17.5% 16.5% 13.5% 12.4% KOF Arca Andina KOF Contal Amatil Hellenic PBG CCE Mexico 15

Attractive Return to Investors …and an attractive return to investors based on our performance. Market Capitalization (US$ Million) 5,458 4,801 4,387 4,099 3,188 2,860 2,755 2,551 2,503 1,888 1,372 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 LTM06 Stock… $9.62 $19.33 $13.25 $17.56 $22.37 $20.07 $17.90 $22.21 $23.76 $26.00 $29.56 Price (1) CAGR 96- LTM06 15% (1): Prices as of December 31 of each year, except for 2003 when the price is as of May 6, 2003 and for 2006 the price is as of August 30, 2006. 16 Source: Bloomberg

KOF Mexico Profitability In spite of higher raw material costs, and a more competitive environment, our Mexican operation has delivered stable results in the last two years… 54.1% 54.7% 53.9% 53.4% 53.4% 53.7% 53.2% 53.0% 53.0% 53.0% 53.0% 53.0% 52.7% 51.7% 30.7% 29.6% 28.5% 28.4% 27.4% 27.5% 27.0% 27.0% 25.9% 25.2% 34.8 24.9% 24.9% 24.9% 34.6 22.9% 33.8 33.7 32.9 32.7 32.5 32.1 32.2 31.7 31.7 31.6 31.5 31.6 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 Avge price exc Jug Gross Margin EBITDA margin 17