3er Foro Europeo de Empresas Latinoamericanas 2001

1

• 3er Foro Europeo de Empresas Latinoamericanas
  2001
• Madrid November 14, 2001

During this presentation management may discuss
certain forward-looking statements concerning
FEMSAs future performance and 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 the Companys actual
performance.
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Company Profile
September 30, 2001
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Business Portfolio
Strategic Core
25
Retail 7.1
20
Soft Drinks 19.9
15
ROIC
Glass 4.6
10
Beverage Cans 5.7
5
Beer 51.6
0
Net Operating Assets (adjusted by FEMSA
ownership)
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Operating Results
Operating Income (million Ps)
()
Gross Margin
Operating Margin
CAGR 95-00 23
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Operating Results9 Months 2001
Billions of 9 Months 2001 Pesos Change
7.2
Net Sales 36.847 Operating Income 6.023 EBITDA
8.805 Operating Margin 16.3
10.3
7.4
0.4pp
Before Management Fees
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Return on Invested Capital
ROIC ()
OXXO
Coca-Cola FEMSA
FEMSA
FEMSA Cerveza
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Key Multiples and Ratios
Key Ratios Nov 01 P/E 10.3 P/BV 1.6 EV/EBITDA 4.6
Multiples Sep 30 Capitalization 0.26 Leverage 0.72
Interest Coverage 27.43 ROE 15.8 Inventory
Turnover (days) 60.5
Source Bloomberg
Key Operating Data Last 12 Months Total
Revenues US 5,171 MM EBITDA 1,231 MM EBIT 829
MM EPADR US 3.06
Market Capitalization Nov 1, 2001
US 3.335 bn
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Strategic Focus
CERVEZA
Achieve sustainable top-line growth to continue
increasing profitability

• Implement a consumer-focused, integrated business
  system based on processes and supported by IT and
  HR
• Increase per-capita consumption through
  continuous activation programs
• Integrated marketing campaigns
• Refrigeration program
• Design a distribution system that transforms our
  diversified brand portfolio into a competitive
  advantage

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Strategic Focus
CERVEZA
Leverage superior competencies in the marketplace
to continue achieving revenue growth and excess
returns on capital

• Expand product portfolio
• Mundet
• Flavor segment
• Implement commercial strategies
• Increase per-capita consumption
• Execute revenue management and channel
  marketing
• Leverage market segmentation
• Strengthen support for small retailers
• Territorial expansion and replicability

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Critical Strategic Issues

• Acquisition of Mundet Brands
• Turnaround of beer operation
• Evaluation of synergies between soft-drinks and
  beer businesses and potential alignment in
  distribution

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