FINANCIAL STATEMENTS

FRANCILYN A. GARCIA

FINANCIAL
STATEMENTS
Statement of financial position 2
INCOME STATEMENT 4
Comprehensive income 6
CHANGES IN EQUITY 7
CASH FLOW 9

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CONSOLIDATED
STATEMENTS OF
FINANCIAL POSITION
COCA-COLA FEMSA, S.A.B. DE C.V. AND SUBSIDIARIES
At December 31, 2020 and 2019
In millions of U.S. dollars ( $ ) and in millions of Mexican pesos ( Ps. )

DECEMBER DECEMBER DECEMBER

NOTE 2020 (1) 2020 2019 (2)

ASSETS
CURRENT ASSETS:
Cash and cash equivalents 6 $ 2,187 Ps. 43,497 Ps. 20,491
Trade receivables, net 7 579 11,523 15,476

Inventories 8 489 9,727 10,538

Recoverable taxes 25 275 5,471 7,567

Other current financial assets 9 24 478 1,076

Other current assets 9 88 1,744 1,648

Total current assets 3,642 72,440 56,796

Non-current assets:
Investments in other entities 10 383 7,623 9,751
Right-of-use assets 11 64 1,278 1,382

Property, plant and equipment, net 12 2,989 59,460 61,187

Intangible assets, net 13 5,227 103,971 112,050

Deferred tax assets 25 560 11,143 10,432

Other non-current financial assets 14 136 2,699 204

Other non-current assets 14 224 4,452 6,037

Total non-current assets 9,583 190,626 201,043

TOTAL ASSETS $ 13,225 Ps. 263,066 Ps. 257,839

(1) Convenience translation to U.S. dollars ($) – See Note 2.2.3

(2) The Company initially adopted IFRS 16 on January 1, 2019 using the modified retrospective approach under which the comparative information is not restated. – See Note 3.18

The accompanying notes are an integral part of these consolidated statements of financial position.
DECEMBER DECEMBER DECEMBER

NOTE 2020 (1) 2020 2019 (2)

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Bank loans and notes payable 19 $ 83 Ps. 1,645 Ps. 882
Current portion of non-current debt 19 170 3,372 10,603

GARCIA, FRANCILYN; BSMA 2A

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Current portion of lease liabilities 11 28 560 483

Interest payable 36 712 439

Suppliers 864 17,195 19,832

Accrued liabilities 503 10,013 10,331

Taxes payable 372 7,400 7,156

Other current financial liabilities 26 98 1,948 1,284

Total current liabilities 2,154 42,845 51,010

NON-CURRENT LIABILITIES
Bank loans and notes payable 19 4,145 82,461 58,492
Post-employment and other non-current employee benefits 17 193 3,838 3,293

Non-current portion of lease liabilities 11 38 746 900

Deferred tax liabilities 25 124 2,474 3,771

Other non-current financial liabilities 26 47 934 1,897

Provisions and other non-current liabilities 26 368 7,311 8,791

Total non-current liabilities 4,915 97,764 77,144

TOTAL LIABILITIES 7,069 140,609 128,154

EQUITY
Common stock 23 104 2,060 2,060
Additional paid-in capital 2,290 45,560 45,560

Retained earnings 3,815 75,917 75,820

Other equity instruments (87) (1,740) (1,740)

Accumulated other comprehensive income (247) (4,923) 1,234

Equity attributable to equity holders of the parent 5,875 116,874 122,934

Non-controlling interest in consolidated subsidiaries 22 281 5,583 6,751

TOTAL EQUITY 6,156 122,457 129,685

TOTAL LIABILITIES AND EQUITY $ 13,225 Ps. 263,066 Ps. 257,839

(1) Convenience translation to U.S. dollars ($) – See Note 2.2.3

(2) The Company initially adopted IFRS 16 on January 1, 2019 using the modified retrospective approach under which the comparative information is not restated. – See Note 3.18

The accompanying notes are an integral part of these consolidated statements of financial position.

GARCIA, FRANCILYN; BSMA 2A 3

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CONSOLIDATED
INCOME
STATEMENTS
For the years ended December 31, 2020, 2019 and 2018
In millions of U.S. dollars ( $ ) and in millions of Mexican pesos ( Ps.) except for earnings per share amounts

NOTE 2020 (1) 2020 2019 (2) 2018

Net sales $ 9,126 Ps. 181,520 Ps. 192,342 Ps. 181,823

Other operating revenues 105 2,095 2,129 519

Total revenues 9,231 183,615 194,471 182,342

Cost of goods sold 5,068 100,804 106,964 98,404

Gross profit 4,163 82,811 87,507 83,938

Administrative expenses 397 7,891 8,427 7,999

Selling expenses 2,441 48,553 52,110 49,925

Other income 20 75 1,494 1,890 569

Other expenses 20 256 5,105 4,380 2,450

Interest expense 19 397 7,894 6,904 7,568

Interest income 53 1,047 1,230 1,004

Foreign exchange gain (loss), net — 4 (330) (277)

Gain on monetary position for subsidiaries in hyperinflationary economies 19 376 221 212

Market value (loss) on financial instruments 21 (11) (212) (288) (314)

Income before income taxes and share of the profit of associates

and joint ventures accounted for using the equity method
808 16,077 18,409 17,190
Income taxes 25 273 5,428 5,648 5,260

Share in the (loss) of equity accounted investees, net of taxes 10 (14) (281) (131) (226)

Net income from continuing operations 521 10,368 12,630 11,704

Net income after tax from discontinued operations 5 — — — 3,366

CONSOLIDATED NET INCOME $ 521 Ps. 10,368 Ps. 12,630 Ps. 15,070

Attributable to:
Equity holders of the parent- continuing operations $ 518 Ps. 10,307 Ps. 12,101 Ps. 10,936
Equity holders of the parent- discontinued operations — — — 2,975

Non-controlling interest from continuing operations 3 61 529 768

Non-controlling interest from discontinued operations $ — Ps. — Ps. — Ps. 391

Consolidated comprehensive income of the year, net of tax $ 521 Ps. 10,368 Ps. 12,630 Ps. 15,070

GARCIA, FRANCILYN; BSMA 2A

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Earnings per share- Equity holders of the parent (U.S. dollars

and Mexican pesos) (3):
Basic controlling interest net income (loss) from continuing operations 24 0.03 0.61 0.72 0.65
Basic controlling interest net income from discontinued operations 24 — — — 0.18

Diluted controlling interest net income (loss) from continuing operations 24 0.03 0.61 0.72 0.65

Diluted controlling interest net income from discontinued operations 24 — — — 0.18

(1) Convenience translation to U.S. dollars ($) – See Note 2.2.3
(2) The Company initially adopted IFRS 16 on January 1, 2019 using the modified retrospective approach under which the comparative information is not restated – See note 3.18 (3)
2018 data have been revised for the effect of the March 22, 2019 eight to one stock split – See Note 23

The accompanying notes are an integral part of these consolidated income statements.

GARCIA, FRANCILYN; BSMA 2A 5

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CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
For the years ended December 31, 2020, 2019 and 2018
In millions of U.S. dollars ( $ ) and in millions of Mexican pesos ( Ps.)

NOTE 2020 (1) 2020 2019 (2) 2018

CONSOLIDATED NET INCOME $ 521 Ps. 10,368 Ps. 12,630 Ps. 15,070
Other comprehensive income, net of taxes:
Other comprehensive income to be reclassified to profit or loss in
subsequent periods:
Valuation of the effective portion of derivative financial
instruments, net of taxes
21 27 543 (835) (437)
Exchange differences on the translation of foreign operations
and associates
(379) (7,543) (5,579) (7,234)
Other comprehensive (loss) income to be reclassified to profit
or loss in subsequent periods
(352) (7,000) (6,414) (7,671)
Items that will not be reclassified to profit or loss in subsequent periods:
Loss from equity financial asset classified at FVOCI
— — (216) (1,039)
Re-measurements of the net defined benefit liability, net of taxes 17 (16) (318) (511) 259

Other comprehensive income (loss) not to be reclassified to profit

or loss in subsequent periods
(16) (318) (727) (780)
Total other comprehensive (loss) income, net of tax (368) (7,318) (7,141) (8,451)

Consolidated comprehensive income for the year, net of tax $ 153 3,050 Ps. 5,489 Ps. 6,619

Attributable to:
Equity holders of the parent from continuing operations $ 208 Ps. 4,150 Ps. 5,541 Ps. 3,984
Equity holders of the parent from discontinued operations — — — 2,817

Non-controlling interest from continuing operations (55) (1,100) (52) (421)

Non-controlling interest from discontinued operations — — — 239

Consolidated comprehensive income for the year, net of tax $ 153 Ps. 3,050 Ps. 5,489 Ps. 6,619
(1) Convenience translation to U.S. dollars ($) – See Note 2.2.3
(2) The Company initially adopted IFRS 16 at January 1, 2019 using the modified retrospective approach under which the comparative information is not restated. – See Note 3.18

The accompanying notes are an integral part of these consolidated statements of comprehensive income.

GARCIA, FRANCILYN; BSMA 2A

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CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY
For the years ended December 31, 2020, 2019 and 2018
In millions of U.S. dollars ( $ ) and in millions of Mexican pesos ( Ps.)

VALUATION OF EXCHANGE

THE EFFECTIVE DIFFERENCES REMEASUREMENTS EQUITY

PORTION OF ON TRANSLATION OF THE NET ATTRIBUTABLE

ADDITIONAL OTHER DERIVATIVE OF FOREIGN DEFINED TO EQUITY NON-

COMMON PAID-IN RETAINED EQUITY FINANCIAL OPERATIONS AND BENEFIT HOLDERS OF CONTROLLING TOTAL
STOCK CAPITAL EARNINGS INSTRUMENTS INSTRUMENTS ASSOCIATES LIABILITY THE PARENT INTEREST EQUITY

Balances as of January 1, 2018 2,060 45,560 64,397 (485) 247 13,968 (567) 125,180 18,129 143,309
Consolidated net income — — 13,911 — — — — 13,911 1,159 15,070

Other comprehensive (loss) income, net of tax — — — (1,039) (396) (5,897) 223 (7,109) (1,342) (8,451)

Total comprehensive income — — 13,911 (1,039) (396) (5,897) 223 6,802 (183) 6,619

Dividends declared — — (7,038) — — — — (7,038) — (7,038)

Sale of Philippines operations — — — — — — — — (11,140) (11,140)

Balances as of December 31, 2018 2,060 45,560 71,270 (1,524) (149) 8,071 (344) 124,944 6,806 131,750

Accounting standard adoption effects (see Note 2.4) — — (114) — — — — (114) — (114)
Balances as of January 1, 2019 2,060 45,560 71,156 (1,524) (149) 8,071 (344) 124,830 6,806 131,636

Consolidated net income — — 12,101 — — — — 12,101 529 12,630

Other comprehensive (loss) income, net of tax — — — (216) (819) (5,014) (511) (6,560) (581) (7,141)

Total comprehensive income (loss) — — 12,101 (216) (819) (5,014) (511) 5,541 (52) 5,489

GARCIA, FRANCILYN; BSMA 2A

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CONSOLIDATED STATEMENTS
Dividends declared — — (7,437) — — — — (7,437) (3) (7,440)

Balances as of December 31, 2019 2,060 45,560 75,820 (1,740) (968) 3,057 (855) 122,934 6,751 129,685

Consolidated net income — — 10,307 — — — — 10,307 61 10,368

Other comprehensive (loss) income, net of tax — — — — 443 (6,070) (318) (5,945) (1,161) (7,106)

Sale of Joint Venture — — — — — (212) — (212) — (212)

Total comprehensive income (loss) — — 10,307 — 443 (6,282) (318) 4,150 (1,100) 3,050

Dividends declared — — (10,210) — — — — (10,210) (68) (10,278)

Balances as of December 31, 2020 Ps. 2,060 Ps. 45,560 Ps. 75,917 Ps. (1,740) Ps. (525) Ps. (3,225) Ps. (1,173) Ps. 116,874 Ps. 5,583 Ps. 122,457

The accompanying notes are an integral part of these consolidated statements of changes in equity.

GARCIA, FRANCILYN; BSMA 2A 8

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OF CASH F LOW
For the years ended December 31, 2020, 2019 and 2018
In millions of U.S. dollars ($) and in millions of Mexican pesos (Ps.)

2020 (1) 2020 2019 (2) 2018

OPERATING ACTIVITIES:
Income before income taxes from continuing operations $ 794 Ps. 15,796 Ps. 18,278 Ps. 16,964
Adjustments for:
Non-cash operating (income) expenses (66) (1,319) (2,409) 1,296
Depreciation 423 8,415 8,387 8,404

Depreciation right-of-use 30 596 555 —

Amortization 51 1,020 1,062 998

Amortization prepaid expenses 29 577 638 626

(Income) on disposal of long-lived assets (5) (96) (42) (178)

Write-off of long-lived assets 15 291 318 103

Write-off of intangible assets 19 375 — —

Share of the loss of associates and joint ventures accounted for using
the equity method, net of taxes 14 281 131 226
Interest income (53) (1,047) (1,230) (1,004)

Interest expense 397 7,894 6,904 5,198

Foreign exchange (income) loss, net — (4) 330 277

Non-cash movements in post-employment and other non-current employee

benefits obligations 18 368 239 219
Impairment 126 2,501 948 432

Monetary position gain, net (19) (376) (221) (212)

Market value loss on financial instruments 11 212 288 2,370

Increase / decrease:
Accounts receivable and other current assets 153 3,040 (1,858) (2,097)
Other current financial assets (28) (552) (100) (396)

Inventories 10 190 (1,140) (1,386)

Suppliers and other accounts payable (52) (1,037) 5,726 1,666

Other liabilities 19 378 (231) 381

Employee benefits paid (27) (528) (478) (124)

Other Tax 159 3,162 404 6

Income taxes paid (251) (4,990) (5,210) (6,188)

Net cash flows generated from operating activities from continuing operations 1,767 35,147 31,289 27,581

Income before income taxes from discontinued operations — — — 1,308

Net cash flows generated from operation activities from discontinued operations — — — 654
(1) Convenience translation to U.S. dollars ($) – See Note 2.2.3
(2) The Company initially adopted IFRS 16 at January 1, 2019 using the modified retrospective approach under which the comparative information is not restated. – See Note 3.18

GARCIA, FRANCILYN; BSMA 2A

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The accompanying notes are an integral part of these consolidated statements of cash flows.

2020 (1) 2020 2019 (2) 2018

INVESTING ACTIVITIES:
Acquisition and mergers, net of cash acquired (see Note 4) — — — (5,692)
Proceed from sale of subsidiary, net of cash disposed — — — 7,649

Interest received 53 1,047 1,230 1,004

Acquisitions of long-lived assets (485) (9,655) (10,324) (9,917)

Proceeds from the sale of long-lived assets 14 274 330 399

Acquisitions of intangible assets (15) (289) (698) (674)

Other non-current assets (16) (325) (711) (681)

Dividends received from investments in associates and joint ventures (Note 10) 1 16 1 8

Investments in financial assets, net (79) (1,576) (572) (387)

Net cash flows (used in) investing activities from continuing operations $ (527) Ps. (10,508) Ps. (10,744) Ps. (8,291)

Net cash flows (used in) investing activities from discontinued operations $ — Ps. — Ps. — Ps. (962)

FINANCING ACTIVITIES:
Proceeds from borrowings 3,132 62,297 10,736 15,426
Repayments of borrowings (2,272) (45,187) (20,460) (15,957)

Interest paid (307) (6,102) (4,682) (4,984)

Dividends paid (517) (10,278) (7,440) (7,038)

Interest paid on lease liabilities (5) (105) (129) —

Payments of leases (29) (573) (492) —

Other financing activities 18 365 (327) (1,682)

Net cash flows (used in) financing activities from continuing operations 20 417 (22,794) (14,235)

Net cash flows (used in) financing activities from discontinued operations — — — (37)

Net increase (decrease) in cash and cash equivalents from continuing operations 1,260 25,056 (2,249) 5,055
Net increase (decrease) in cash and cash equivalents from discontinued operations — — — 963

Cash and cash equivalents at the beginning of the period 1,030 20,491 23,727 18,767

Effects of exchange rate changes and inflation effects on cash and cash equivalents
held in foreign currencies (103) (2,050) (987) (1,058)

Cash and cash equivalents at the end of the period $ 2,187 Ps. 43,497 Ps. 20,491 Ps. 23,727

GARCIA, FRANCILYN; BSMA 2A

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