Investor Presentation August 2016 Safe Harbor Statement During - PowerPoint PPT Presentation

Investor Presentation – August 2016

Safe Harbor Statement During this presentation management may discuss certain forward-looking statements concerning FEMSA’s future performance that should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact FEMSA’s actual performance. 2

Overview Ownership 48% (1) 100% 20% Coca- Cola’s largest Market leader and The world’s most franchise bottler in fastest growing retail international brewer the world by volume chain in Mexico 3 (1) Represents 63% of shares with voting rights

Leading Consumer Company in Latin America FEMSA Comercio Coca-Cola Logistics/ Retail Health Fuel FEMSA Refrigeration Division Division Division Mexico Brazil Colombia Argentina Venezuela Chile Panama Costa Rica Philippines Guatemala Nicaragua Peru 4 Internal company data, YTD.

Creating Economic Value in the Last Decade Financial Highlights FEMSA Market Cap Evolution (US$ MM) 2015 2005 (2) CAGR% Revenue (1 311,589 78,932 15% ) EBIT (1 33,735 9,942 13% ) 30,470 EBIT Margin 10.8% 12.6% EBITDA (1 46,626 13,073 14% ) EBITDA Margin 15.0% 16.6% CAPEX (1 18,885 3,477 18% ) 1 Amounts expressed in millions of Mexican Pesos 2 Figures for 2005 are the arithmetical sum of Coca Cola FEMSA and FEMSA Comercio, therefore figures exclude sold businesses. • Consistently strengthening our competitive position. 8,643 • Ability to operate in a rapidly changing economic environment. • Strong brand portfolio and exceptional operational capabilities. 2005 Aug-16 CAGR 05 – Aug 16: 13% Source: Bloomberg, as of August 01, 2016. 5

Increasing Cash to Shareholders Over Time …while retaining strategic and financial flexibility Ordinary Dividend (Ps. million) 47% CAGR 44% 8,355 26% 32% 42% 40% 7,350 6,684 6,684 6,200 34% 4,600 26% 19% 24% 22% 2,600 18% 11% 1,620 1,620 1,485 Payout 986 Ratio 660 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net Debt / 2.0 x 1.3 x 1.1 x 1.1 x 0.7 x -0.1 x 0.0 x 0.0 x 1.2 x 1.1 x 1.2 x EBITDA 6 Note: Dividend figures are in Mexican pesos. Payout ratio figures are the division of the dividend between previous year net majority income. 2010 net majority income does not include Heineken transaction effect. 2011 and thereafter figures are under International Financial Reporting Standards (“IFRS”).

An Increasingly Balanced Core Portfolio Revenue Contribution EBITDA Contribution 2005 2005 14% 36% 64% 86% 2015 2015 2% 8% 31% 49% 43% 67% Coca-Cola FEMSA Coca-Cola FEMSA FEMSA Comercio – Retail & Health Division FEMSA Comercio – Retail & Health Division FEMSA Comercio – Fuel Division and Others FEMSA Comercio – Fuel Division and Others 7 Note: Others include FEMSA’s Logistics and Refrigeration Units.

OXXO: A Format that Fits our Consumer’s Needs • Third largest retailer in terms of Revenues in Mexico. • Benchmark for SSS and sales density in Mexico. • Best-in-class margins and returns. • We open one new store every 8 hours on average. • Every day, more than 10 million people make a purchase at an OXXO Store. 9

Largest Store Chain in the Americas by Units OXXO Stores as a Percentage of Mom & Pops in Mexico (1) 14,015 1.6% 12,812 # OXXO stores in Mexico 11,683 1.4% 10,567 % mom & pops in Mexico 9,538 1.2% 8,409 7,329 1.0% 6,374 5,563 0.8% 4,847 4,141 0.6% 0.4% 0.2% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 0.0% Number of Stores The Americas Mexico (3) 14,461 (2) 14,416 10,687 9,072 4,849 3,332 3,805 3,766 3,365 Others Mexico Other C-Stores 1 2 1 2 3 4 5 6 7 in Mexico Note: For The Americas Section: Alimentation Couche-Tard includes US, Canada and Mexico (Extra) Operations as of April 2016. Source: Company Information 7-Eleven: US, Canada and Mexico Operations as of Dec 2015. Source: Company Information. Rest of the companies: Source: CS News "Top 100 US Convenience Store Companies”, Published July 2016. Mom & pops: Company information 10 (1) OXXO stores as of December 31, 2015 in Mexico (2) OXXO stores as of June 30, 2016 in Mexico (3) Total OXXO stores, (includes Mexico and Colombia) as of June 30, 2016

Horizontal Growth: Plenty of Runway Ahead 14,416 stores in Mexico and counting FEMSA Comercio has developed proprietary models to assist in identifying optimal store locations, store formats and product categories OXXO Penetration Level by Population Penetration Population / OXXO Medium <10,000 per store Moderate 10,000-30,000 per store Low >30,000 per store Nuevo Leon (1) Population: 5.1 mm OXXO Stores: 1,218 4,203 people/store 17 Distribution Centers Mexico Valley (1) Population: 25.1 mm OXXO Stores: 2,119 11,848 people/store 11 Note: INEGI 2015 Inter Population Consensus Survey . FEMSA information as of June 30, 2016 (1) OXXO stores as of June 30, 2016

Differentiated Approach to Fill Consumer Needs THIRST LUNCH Quench your thirst immediately Satisfy your hunger with an on-the-go meal CRAVING GATHERING Satisfy your sudden craving for a Stop by for your party needs snack, a meal or drink TIME OPTIMIZATION DAILY Acquire one-stop products and services Take home your everyday grocery needs in a simple and fast way BREAKFAST REPLENISHMENT Start your day with a practical breakfast Replenish your depleted grocery and non- food products 12

Fine-tuning Strategies to Drive Same-Store Sales and Profitability Category Development Category Development Segmentation -Services -Prepared Food +1,000 services offered in the store 13

Drugstores • FEMSA Comercio operates more than 1,000 drugstores in Mexico, or approximately 3% of the industry • Current expected organic growth rate of 15-20% in the Mexican operations • Socofar operates approximately 670 drugstores in Chile and 150 pharmacies in Colombia, and offers a platform for growth in South America • Aspirations to consolidate fragmented industry following OXXO game plan 14 Note: Numbers as of March 31 th 2016

Gas Stations (OXXO GAS) OXXO GAS stations now allow FEMSA to participate in the Energy Sector • New changes to Mexican regulatory framework now allow FEMSA to participate directly in the Energy sector, particularly petrol stations • High-growth, high-return business, unique position to pursue and capture this compelling opportunity • We concentrate mainly in the northern part of the country but with a presence in 14 different Mexican States • As of June 30, 2016 there were 335 OXXO GAS stations, which generated Ps. 18,510 million in revenues during 2015, representing less than 3% of a highly- fragmented industry 15 Note: Numbers as of June 30, 2016

FEMSA Comercio now operates a more diversified portfolio Contribution for the First Half of 2016 Revenue EBITDA 16 Note: Numbers as of June 30, 2016

Business Evolution FEMSA Comercio EBITDA ($Millions of Pesos) and Business Evolution $16,000 $14,000 $12,000 $10,000 Surpass 1,000 openings per year $8,000 4,000 10,000 OXXO store OXXO store 5,000 $6,000 mark mark OXXO store mark $4,000 $2,000 $- 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 CAGR (1 ) 23% CAGR (1 ) 16% 17 (1): Total Annual EBITDA CAGR

Largest Coca-Cola Franchise Bottler in the World by Volume, Operating in Attractive Regions • Strategic partner to the Coca-Cola system representing about 13% of Global Volume • 4 Billion Unit Cases (1) Colombia Mexico Venezuela • +US$ 10 Billion in Revenues (1) Guatemala Brazil Nicaragua • +358 Million consumers (1) Costa Rica Panama • Close to 2.8 Million points of sale (1) • ~ 83,000 employees Philippines Volume Mix Ownership: Argentina 47.9% (2) 28.1% 24.0% 19 (1) KOF Figures reflect FY 2015. Philippines in a proforma basis (2) Represents 63% of shares with voting rights

Creating Economic Value During the Last Decade KOF Market Cap Evolution Financial Highlights (US$ MM) 2015 2005 CAGR% Revenue (1 152,360 50,198 12% 15,808 ) EBIT (1 22,645 8,683 10% ) EBIT Margin 14.9% 17.3% EBITDA (1 31,233 11,210 11% ) EBITDA Margin 20.5% 22.3% CAPEX (1 11,484 2,062 19% ) 1 Amounts expressed in millions of Mexican Pesos • Consolidate as a Multi-category Leader. 5,066 • Reach Full Operating Potential. • Growth Through Innovation. • Growth Through Acquisitions. 2005 Aug-16 CAGR 05 – Aug 16: 11% • Proactive Environment Management. Source: Bloomberg, as of August 01, 2016. 20