6-K 1 tm1921020d1_6k.htm FORM 6-K

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 October 2019

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-_____________

FEMSA Announces Third Quarter 2019 Results

Monterrey, Mexico, October 28, 2019 — Fomento Económico Mexicano, S.A.B. de C.V. (“FEMSA”) (NYSE: FMX; BMV: FEMSAUBD) announced today its operational and financial results for the third quarter of 2019.

FINANCIAL HIGHLIGHTS:

| · | 18.1% income from operations growth (17.7% on an organic1 basis) at FEMSA Consolidated
| · | 120 basis points gross margin expansion at FEMSA Comercio’s Proximity Division
| · | 26.6% revenue growth (6.2% on an organic1 basis) at FEMSA Comercio’s Health Division
| · | 50 basis points operating margin expansion at FEMSA Comercio’s Fuel Division
| · | 21.1% income from operations growth at Coca-Cola FEMSA

FINANCIAL SUMMARY FOR THE THIRD QUARTER AND FIRST NINE MONTHS 2019

Change vs. Comparable Results2

|  | Revenues |  |  | Gross Profit |  |  | Income from Operations |  |  | Same-Store Sales |
|  |  | 3Q19 |  |  |  | YTD19 |  |  |  | 3Q19 |  |  |  | YTD19 |  |  |  | 3Q19 |  |  |  | YTD19 |  |  |  | 3Q19 |  |  |  | YTD19 |
FEMSA CONSOLIDATED |  |  | 10.2 | % |  |  | 9.1 | % |  |  | 12.8 | % |  |  | 11.0 | % |  |  | 18.1 | % |  |  | 10.9 | % |  |  |  |  |  |  |  |
FEMSA COMERCIO |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proximity Division |  |  | 10.1 | % |  |  | 10.3 | % |  |  | 13.7 | % |  |  | 15.9 | % |  |  | 9.4 | % |  |  | 12.4 | % |  |  | 5.0 | % |  |  | 4.9 | %
Health Division |  |  | 26.6 | % |  |  | 14.4 | % |  |  | 22.7 | % |  |  | 11.0 | % |  |  | 9.4 | % |  |  | 1.4 | % |  |  | (0.7 | )% |  |  | (0.7 | )%
Fuel Division |  |  | 1.2 | % |  |  | 3.8 | % |  |  | 16.8 | % |  |  | 24.4 | % |  |  | 23.7 | % |  |  | 23.9 | % |  |  | (3.9 | )% |  |  | (3.7 | )%
COCA-COLA FEMSA |  |  | 10.3 | % |  |  | 9.1 | % |  |  | 7.1 | % |  |  | 7.2 | % |  |  | 21.1 | % |  |  | 11.1 | % |  |  |  |  |  |  |  |

Eduardo Padilla, FEMSA’s CEO, commented:

“The third quarter was a positive one on both the operational and strategic fronts. Operationally, we saw solid performances across our business units. OXXO continued to grow at a steady pace in Mexico, and we again saw encouraging data from the international operations. The Health division continued to see a soft patch in Chile but we are quickly making progress in the integration of GPF in Ecuador, while the Fuel division did not add to its number of stations but still managed to deliver encouraging results during the quarter. For its part, Coca-Cola FEMSA saw a resilient consumer environment in Mexico and solid growth in South America, combining to deliver a positive operating performance.

Strategically, we made two important announcements, first on our new joint venture with Raízen in Brazil, and more recently on our investment and joint venture with Jetro Restaurant Depot. These are relevant steps in our quest to deploy capital in high-growth, high-return retail assets, and we are very excited about both opportunities.”

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

2 Comparable Results: Starting on the first quarter of 2019, we adopted the International Financial Reporting Standard 16 – "Leases" ("IFRS 16") across all our business units. The Comparable Results is a set of numbers which estimate the retroactive effect that the adoption of IFRS 16 would have had on FEMSA's 2018 financial results. The performance comparisons expressed in this document will be made relative to the Comparable Results unless stated otherwise.

| 1

Results are compared to the same period of previous year

femsa consolidateD

FEMSA CONSOLIDATED

3Q19 Financial Summary

(Millions of Ps.)

|  |  |  |  | Comparable |  |  |  |  |  |  |  |  | Reported |
|  |  | 3Q19 |  |  |  | 3Q18 |  |  |  | Var.* |  |  |  | Org.* |  |  |  | 3Q18 |
Revenues |  |  | 130,470 |  |  |  | 118,371 |  |  |  | 10.2 | % |  |  | 8.1 | % |  |  | 118,371 |
Income from Operations |  |  | 12,632 |  |  |  | 10,699 |  |  |  | 18.1 | % |  |  | 17.7 | % |  |  | 9,992 |
Income from Operations Margin (%) |  |  | 9.7 |  |  |  | 9.0 |  |  |  | 70 bps |  |  |  |  |  |  |  | 8.4 |
Operative Cash Flow (EBITDA) |  |  | 19,776 |  |  |  | 17,632 |  |  |  | 12.2 | % |  |  | 10.7 | % |  |  | 15,046 |
Operative Cash Flow (EBITDA) Margin (%) |  |  | 15.2 |  |  |  | 14.9 |  |  |  | 30 bps |  |  |  |  |  |  |  | 12.7 |
Net Income |  |  | 9,613 |  |  |  | 6,286 |  |  |  | 52.9 | % |  |  |  |  |  |  | 6,598 |

*vs. Comparable Results

CONSOLIDATED BALANCE SHEET

(Millions of Ps.)

As of September 30, 2019 |  | Ps. |  |  | US$ 3 |
Cash |  |  | 97,851 |  |  |  | 4,956 |
Short-term debt |  |  | 21,406 |  |  |  | 1,084 |
Long-term debt 4 |  |  | 96,310 |  |  |  | 4,878 |
Net debt 4 |  |  | 19,865 |  |  |  | 1,006 |

Total revenues increased 10.2% in 3Q19 compared to 3Q18, reflecting growth across all business units. On an organic basis,1 total revenues grew 8.1%.

Gross profit grew 12.8%. Gross margin expanded 90 basis points, mainly driven by strong expansion at FEMSA Comercio’s Proximity and Fuel Divisions, partially offset by a contraction at Coca-Cola FEMSA and FEMSA Comercio’s Health Division.

Income from operations increased 18.1%. On an organic basis,1 income from operations increased 17.7%. Consolidated operating margin increased 70 basis points to 9.7% of total revenues, reflecting margin expansion at Coca-Cola FEMSA and FEMSA Comercio’s Fuel Division. These were partially offset by margin contraction at FEMSA Comercio’s Proximity and Health Divisions.

Income tax was Ps. 3,391 million in 3Q19.

Net consolidated income increased 52.9% to Ps. 9,613 million, driven by the increase in our Income from operations described above, and 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.

Net majority income was Ps. 2.03 per FEMSA Unit 2 and US$1.03 per FEMSA ADS.

Capital expenditures amounted to Ps. 6,776 million, reflecting higher investments 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 September 30, 2019 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 September 30, 2019 was 19.7420 MXN per USD.

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

October 28, 2019 |  | 2

FEMSA COMERCIO – Proximity DIVISION

FEMSA COMERCIO – PROXIMITY DIVISION
3Q19 Financial Summary
(Millions of Ps. except same-stores sales)
|  |  | Comparable |  |  |  | Reported |
|  |  | 3Q19 |  |  |  | 3Q18 |  |  |  | Var.* |  |  |  | 3Q18 |
Same-store sales (thousands of Ps.) |  |  | 824 |  |  |  | 785 |  |  |  | 5.0 | % |  |  | 785 |
Revenues |  |  | 48,429 |  |  |  | 43,967 |  |  |  | 10.1 | % |  |  | 43,967 |
Income from Operations |  |  | 4,413 |  |  |  | 4,034 |  |  |  | 9.4 | % |  |  | 3,610 |
Income from Operations Margin (%) |  |  | 9.1 |  |  |  | 9.2 |  |  |  | -10 bps |  |  |  | 8.2 |
Operative Cash Flow (EBITDA) |  |  | 6,969 |  |  |  | 6,325 |  |  |  | 10.2 | % |  |  | 4,997 |
Operative Cash Flow (EBITDA) Margin (%) |  |  | 14.4 |  |  |  | 14.4 |  |  |  | 0 bps |  |  |  | 11.4 |

*vs. Comparable Results

Total revenues increased 10.1% in 3Q19 compared to 3Q18, reflecting the opening of 232 net new OXXO stores in the quarter to reach 1,362 total net new store openings for the last twelve months. As of September 30, 2019, FEMSA Comercio’s Proximity Division had a total of 18,840 OXXO stores. OXXO’s same-store sales increased an average of 5.0%, driven by 6.5% growth in average customer ticket, which was partially offset by a decrease of 1.4% in store traffic.

Gross profit reached 40.0% of total revenues, reflecting: i) sustained growth of the services category including income from financial services; ii) healthy trends in our commercial income activity; and iii) increased and more efficient promotional programs with our key supplier partners.

Income from operations amounted to 9.1% of total revenues. Operating expenses increased 15.0% to Ps. 14,970 million, above revenues, mainly reflecting: i) our continuing initiative to strengthen our compensation structure of key in-store personnel in a tight labor market, including the gradual shift from commission-based store teams to employee-based teams; and ii) higher secure cash handling costs driven by increased volume and higher operational costs. These were partially offset by lower electricity costs as more than half of our stores in Mexico are now being supplied from wind energy.

October 28, 2019 |  | 3

FEMSA COMERCIO – HEALTH DIVISION

FEMSA COMERCIO – HEALTH DIVISION
3Q19 Financial Summary
(Millions of Ps. except same-stores sales)
| Comparable |  |  | Reported |
|  | 3Q19 |  |  | 3Q18 |  |  | Var.* |  |  | Org.* |  |  | 3Q18 |
Same-store sales (thousands of Ps.) |  |  | 1,399 |  |  |  | 1,410 |  |  |  | (0.7 | )% |  |  |  |  |  |  | 1,410 |
Revenues |  |  | 15,909 |  |  |  | 12,562 |  |  |  | 26.6 | % |  |  | 6.2 | % |  |  | 12,562 |
Income from Operations |  |  | 647 |  |  |  | 592 |  |  |  | 9.4 | % |  |  | 3.7 | % |  |  | 540 |
Income from Operations Margin (%) |  |  | 4.1 |  |  |  | 4.7 |  |  |  | -60 bps |  |  |  |  |  |  |  | 4.3 |
Operative Cash Flow (EBITDA) |  |  | 1,539 |  |  |  | 1,277 |  |  |  | 20.5 | % |  |  | 0.9 | % |  |  | 789 |
Operative Cash Flow (EBITDA) Margin (%) |  |  | 9.7 |  |  |  | 10.2 |  |  |  | -50 bps |  |  |  |  |  |  |  | 6.3 |
*vs. Comparable Results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Total revenues increased 26.6% in 3Q19 compared to 3Q18. On an organic basis,1 total revenues grew 6.2% reflecting stable trends in Mexico and positive trends in Colombia, that were partially offset by soft trading in Chile and a negative currency translation effect related to the appreciation of the Mexican peso compared to the Chilean and Colombian pesos. As of September 30, 2019, FEMSA Comercio’s Health Division had a total of 3,130 points of sale across our territories. This figure reflects the addition of 69 net new stores in the quarter, to reach 827 total net new store additions for the last twelve months, including the integration of Corporación GPF during the 2Q19. Same-store sales for drugstores decreased an average of 0.7%, reflecting the effects described above.

Gross profit represented 29.4% of total revenues, reflecting; i) new pricing regulations in Colombia; ii) increased promotional activity in Chile; and iii) the consolidation of Corporación GPF. These were partially offset by improved efficiency and more effective collaboration and execution with our key supplier partners in Mexico.

Income from operations amounted to 4.1% of total revenues. Operating expenses increased 25.1% to Ps. 4,029 million, as cost efficiencies and tight expense control across our legacy territories were more than offset by the consolidation of Corporación GPF, which has a relatively higher operating expense structure.

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

October 28, 2019 |  | 4

FEMSA COMERCIO – FUEL DIVISION

FEMSA COMERCIO – FUEL DIVISION
3Q19 Financial Summary
(Millions of Ps. except same-stations sales)
|  | Comparable |  |  | Reported |
|  | 3Q19 |  |  | 3Q18 |  |  | Var.* |  |  | 3Q18 |
Same-station sales (thousands of Ps.) |  |  | 7,591 |  |  |  | 7,898 |  |  |  | (3.9 | )% |  |  | 7,898 |
Revenues |  |  | 12,348 |  |  |  | 12,196 |  |  |  | 1.2 | % |  |  | 12,196 |
Income from Operations |  |  | 331 |  |  |  | 268 |  |  |  | 23.7 | % |  |  | 133 |
Income from Operations Margin (%) |  |  | 2.7 |  |  |  | 2.2 |  |  |  | 50 bps |  |  |  | 1.1 |
Operative Cash Flow (EBITDA) |  |  | 551 |  |  |  | 466 |  |  |  | 18.2 | % |  |  | 175 |
Operative Cash Flow (EBITDA) Margin (%) |  |  | 4.5 |  |  |  | 3.8 |  |  |  | 70 bps |  |  |  | 1.4 |
*vs. Comparable Results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Total revenues increased 1.2% in 3Q19 compared to 3Q18, reflecting no additions of OXXO GAS stations in the quarter, reaching 22 total net new stations in the last twelve months, representing an increase of 4.2% in total service stations. As of September 30, 2019, FEMSA Comercio’s Fuel Division had a total of 541 OXXO GAS service stations. Same-station sales decreased 3.9%, reflecting a 3.5% growth in the average price per liter, which was offset by a decrease of 7.1% in the average volume.

Gross profit reached 10.0% of total revenues.

Income from operations amounted to 2.7% of total revenues. Operating expenses increased 14.5% to Ps. 907 million, above revenues, reflecting: i) higher wages and improved compensation structures for our in-station personnel aimed at reducing turnover in a tight labor market; and ii) expenses related to the transition into the new OXXO GAS brand image.

October 28, 2019 |  | 5

Results are compared to the same period of previous year

femsa consolidated

FEMSA CONSOLIDATED
Financial Summary for the First Nine Months
(Millions of Ps.)
|  | Comparable |  |  | Reported |
|  | 2019 |  |  | 2018 |  |  | Var.* |  |  | Org.* |  |  | 2018 |
Revenues |  |  | 374,190 |  |  |  | 343,038 |  |  |  | 9.1 | % |  |  | 6.8 | % |  |  | 343,038 |
Income from Operations |  |  | 33,525 |  |  |  | 30,223 |  |  |  | 10.9 | % |  |  | 9.5 | % |  |  | 28,306 |
Income from Operations Margin (%) |  |  | 9.0 |  |  |  | 8.8 |  |  |  | 20 bps |  |  |  |  |  |  |  | 8.3 |
Operative Cash Flow (EBITDA) |  |  | 54,296 |  |  |  | 49,527 |  |  |  | 9.6 | % |  |  | 7.5 | % |  |  | 42,001 |
Operative Cash Flow (EBITDA) Margin (%) |  |  | 14.5 |  |  |  | 14.4 |  |  |  | 10 bps |  |  |  |  |  |  |  | 12.2 |
Net Income |  |  | 21,962 |  |  |  | 17,678 |  |  |  | 24.2 | % |  |  |  |  |  |  | 18,593 |
*vs. Comparable Results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Total revenues increased 9.1%, reflecting solid growth across all business units. On an organic basis,1 total revenues increased 6.8%.

Gross profit increased 11.0%. Gross margin increased 60 basis points to 37.2% of total revenues, reflecting gross margin expansion across FEMSA Comercio’s Proximity and Fuel Divisions, partially offset by a contraction at Coca-Cola FEMSA and FEMSA Comercio’s Health Division.

Income from operations increased 10.9%. On an organic basis,1 it increased 9.5%. Our consolidated operating margin increased 20 basis points to 9.0% of total revenues, reflecting margin expansion at Coca-Cola FEMSA and FEMSA Comercio´s Proximity and Fuel Divisions, partially offset by a contraction at FEMSA Comercio´s Health Division.

Net consolidated income increased 24.2% to Ps. 21,962 million, reflecting the increase in our Income from Operations described above and a decrease of non-cash foreign exchange loss related to FEMSA’s U.S. dollar-denominated cash position as impacted by the appreciation of the Mexican peso.

Net majority income per FEMSA Unit 2 was Ps. 4.44 (US$2.25 per ADS).

Capital expenditures amounted to Ps. 16,944 million, reflecting higher investments in most 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 September 30, 2019 was 3,578,226,270, equivalent to the total number of FEMSA Shares outstanding as of the same date, divided by 5.

October 28, 2019 |  | 6

femsa comercio – PROXIMITY division

FEMSA COMERCIO – PROXIMITY DIVISION
Financial Summary for the First Nine Months
(Millions of Ps. except same-stores sales)
|  | Comparable |  |  | Reported |
|  | 2019 |  |  | 2018 |  |  | Var.* |  |  | Org.* |  |  | 2018 |
Same-store sales (thousands of Ps.) |  |  | 792 |  |  |  | 755 |  |  |  | 4.9 | % |  |  |  |  |  |  | 755 |
Revenues |  |  | 136,870 |  |  |  | 124,101 |  |  |  | 10.3 | % |  |  | 10.0 | % |  |  | 124,101 |
Income from Operations |  |  | 11,694 |  |  |  | 10,403 |  |  |  | 12.4 | % |  |  | 11.4 | % |  |  | 9,169 |
Income from Operations Margin (%) |  |  | 8.5 |  |  |  | 8.4 |  |  |  | 10 bps |  |  |  |  |  |  |  | 7.4 |
Operative Cash Flow (EBITDA) |  |  | 19,050 |  |  |  | 16,943 |  |  |  | 12.4 | % |  |  | 11.2 | % |  |  | 13,055 |
Operative Cash Flow (EBITDA) Margin (%) |  |  | 13.9 |  |  |  | 13.7 |  |  |  | 20 bps |  |  |  |  |  |  |  | 10.5 |
*vs. Comparable Results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Total revenues increased 10.3%. OXXO’s same-store sales increased an average of 4.9%, driven by a 5.5% increase in average customer ticket and a 0.6% decrease in store traffic. On an organic basis,1 total revenues increased 10.0%.

Gross profit reached 39.5% of total revenues.

Income from operations amounted to 8.5% of total revenues. Operating expenses increased 16.9% to Ps. 42,324 million.

femsa comercio – health division

FEMSA COMERCIO – HEALTH DIVISION
Financial Summary for the First Nine Months
(Millions of Ps. except same-stores sales)
|  |  |  |  | Comparable |  |  | Reported |
|  | 2019 |  |  | 2018 |  |  | Var.* |  |  | Org.* |  |  | 2018 |
Same-store sales (thousands of Ps.) |  |  | 1,461 |  |  |  | 1,472 |  |  |  | (0.7 | )% |  |  |  |  |  |  | 1,472 |
Revenues |  |  | 43,913 |  |  |  | 38,396 |  |  |  | 14.4 | % |  |  | 2.8 | % |  |  | 38,396 |
Income from Operations |  |  | 1,627 |  |  |  | 1,605 |  |  |  | 1.4 | % |  |  | (3.5 | )% |  |  | 1,454 |
Income from Operations Margin (%) |  |  | 3.7 |  |  |  | 4.2 |  |  |  | -50 bps |  |  |  |  |  |  |  | 3.8 |
Operative Cash Flow (EBITDA) |  |  | 3,912 |  |  |  | 3,648 |  |  |  | 7.2 | % |  |  | (2.0 | )% |  |  | 2,206 |
Operative Cash Flow (EBITDA) Margin (%) |  |  | 8.9 |  |  |  | 9.5 |  |  |  | -60 bps |  |  |  |  |  |  |  | 5.7 |
*vs. Comparable Results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Total revenues increased by 14.4%. Same-store sales for drugstores decreased by an average of 0.7%, reflecting positive trends in local currencies in Mexico and Colombia, offset by soft trading in Chile and a negative currency translation effect related to the appreciation of the Mexican peso compared to the Chilean and Colombian pesos in our operations in South America. On an organic basis,1 total revenues increased 2.8%.

Gross profit reached 29.3% of total revenues.

Income from operations amounted to 3.7% of total revenues. Operating expenses increased 12.6% to Ps. 11,251 million.

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

October 28, 2019 |  | 7

FEMSA COMERCIO – FUEL DIVISION

FEMSA COMERCIO – FUEL DIVISION
Financial Summary for the First Nine Months
(Millions of Ps. except same-stations sales)
|  | Comparable |  |  | Reported |
|  | 2019 |  |  | 2018 |  |  | Var.* |  |  | 2018 |
Same-station sales (thousands of Ps.) |  |  | 7,503 |  |  |  | 7,790 |  |  |  | (3.7 | )% |  |  | 7,790 |
Revenues |  |  | 35,616 |  |  |  | 34,300 |  |  |  | 3.8 | % |  |  | 34,300 |
Income from Operations |  |  | 922 |  |  |  | 744 |  |  |  | 23.9 | % |  |  | 352 |
Income from Operations Margin (%) |  |  | 2.6 |  |  |  | 2.2 |  |  |  | 40 bps |  |  |  | 1.0 |
Operative Cash Flow (EBITDA) |  |  | 1,634 |  |  |  | 1,321 |  |  |  | 23.7 | % |  |  | 470 |
Operative Cash Flow (EBITDA) Margin (%) |  |  | 4.6 |  |  |  | 3.9 |  |  |  | 70 bps |  |  |  | 1.4 |
*vs. Comparable Results |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Total revenues increased 3.8%. Same-station sales decreased at an average of 3.7%, reflecting an 8.0% increase in the average price per liter offset by a decrease of 10.8% in the average volume.

Gross profit reached 10.0% of total revenues.

Income from operations amounted to 2.6% of total revenues. Operating expenses increased 24.6% to Ps. 2,640 million.

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

October 28, 2019 |  | 8

| · | On August 6, 2019, FEMSA announced that it had reached an agreement to enter into a 50-50 Joint Venture with Raízen. Through this agreement, FEMSA Comercio will acquire a 50% interest in Raízen Conveniências. The full Enterprise Value of Raízen Conveniências for the purpose of this transaction is R$1,122 Million, free of any debt or cash, and FEMSA Comercio’s 50% interest is therefore valued at R$561 Million. Raízen itself is a 50-50 Joint Venture between Cosan and Shell. Raízen currently operates more than 6,200 Shell service stations in Brazil, and approximately one thousand of them have a Select brand convenience store today. The stores are franchised or licensed by Raízen to independent operators. The Joint Venture agreement is limited to the convenience store business and excludes the fuel service station operations. The transaction has been approved by the relevant authorities, and it is expected to close during the fourth quarter of 2019.

| · | On September 26, 2019, FEMSA announced that it had signed a non-binding Memorandum of Understanding (“MOU”) to acquire a minority stake in privately-held Jetro Restaurant Depot (“JRD”). The MOU also contemplates that FEMSA and JRD will enter into a Joint Venture to take JRD’s business model to Mexico and other Latin American markets. The amount of FEMSA’s investment as per the MOU is US$750 million. The transaction is subject to customary regulatory approvals and is expected to close during the fourth quarter of 2019.

CONFERENCE CALL INFORMATION:
Our Third Quarter 2019 Conference Call will be held on: Monday, October 28, 2019, 11:00 AM Eastern Time (9:00 AM Mexico City Time). To participate in the conference call, please dial: Domestic US: (800) 289 0438; International: +1 (323) 794 2423; Conference Id: 1233207. The conference call will be webcast live through streaming audio. For details please visit www.femsa.com/investor.
If you are unable to participate live, the conference call audio will be available on http://ir.FEMSA.com/results.cfm.

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 FEMSA Comercio, comprising a Proximity Division operating OXXO, a small-format store chain, a Health Division, which includes drugstores and related activities, and a Fuel Division, which operates the OXXO GAS chain of retail service stations. In the beverage industry, it participates through Coca-Cola FEMSA, a public bottler of Coca-Cola products; and in the beer industry, as a shareholder of HEINEKEN, a brewer with operations in over 70 countries. Additionally, through its Strategic Businesses unit, it provides logistics, point-of-sale refrigeration solutions and plastics solutions to FEMSA's business units and third-party clients. Through its business units, FEMSA has more than 295,000 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 is 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 September 30, 2019, which was 19.7420 Mexican pesos per US dollar.

October 28, 2019 |  | 9

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

October 28, 2019 |  | 10

FEMSA

Consolidated Income Statement

Millions of Pesos

|  | For the third quarter of: |
|  |  |  |  |  |  |  | Comparable(A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |
Total revenues |  |  | 130,470 |  |  |  | 100.0 |  |  |  | 118,371 |  |  |  | 100.0 |  |  |  | 10.2 |  |  |  | 8.1 |  |  |  | 118,371 |  |  |  | 100.0 |  |  |  | 10.2 |  |  |  | 8.1 |
Cost of sales |  |  | 81,587 |  |  |  | 62.5 |  |  |  | 75,020 |  |  |  | 63.4 |  |  |  | 8.8 |  |  |  |  |  |  |  | 75,066 |  |  |  | 63.4 |  |  |  | 8.7 |  |  |  |  |
Gross profit |  |  | 48,883 |  |  |  | 37.5 |  |  |  | 43,351 |  |  |  | 36.6 |  |  |  | 12.8 |  |  |  |  |  |  |  | 43,305 |  |  |  | 36.6 |  |  |  | 12.9 |  |  |  |  |
Administrative expenses |  |  | 5,392 |  |  |  | 4.1 |  |  |  | 4,411 |  |  |  | 3.7 |  |  |  | 22.2 |  |  |  |  |  |  |  | 4,458 |  |  |  | 3.8 |  |  |  | 21.0 |  |  |  |  |
Selling expenses |  |  | 30,757 |  |  |  | 23.6 |  |  |  | 27,949 |  |  |  | 23.7 |  |  |  | 10.0 |  |  |  |  |  |  |  | 28,563 |  |  |  | 24.2 |  |  |  | 7.7 |  |  |  |  |
Other operating expenses (income), net (1) |  |  | 102 |  |  |  | 0.1 |  |  |  | 292 |  |  |  | 0.2 |  |  |  | (65.1 | ) |  |  |  |  |  |  | 292 |  |  |  | 0.2 |  |  |  | (65.1 | ) |  |  |  |
Income from operations(2) |  |  | 12,632 |  |  |  | 9.7 |  |  |  | 10,699 |  |  |  | 9.0 |  |  |  | 18.1 |  |  |  | 17.7 |  |  |  | 9,992 |  |  |  | 8.4 |  |  |  | 26.4 |  |  |  | 26.1 |
Other non-operating expenses (income) |  |  | 402 |  |  |  |  |  |  |  | 391 |  |  |  |  |  |  |  | 2.8 |  |  |  |  |  |  |  | 391 |  |  |  |  |  |  |  | 2.8 |  |  |  |  |
Interest expense |  |  | 3,514 |  |  |  |  |  |  |  | 3,402 |  |  |  |  |  |  |  | 3.3 |  |  |  |  |  |  |  | 2,334 |  |  |  |  |  |  |  | 50.6 |  |  |  |  |
Interest income |  |  | 943 |  |  |  |  |  |  |  | 748 |  |  |  |  |  |  |  | 26.1 |  |  |  |  |  |  |  | 748 |  |  |  |  |  |  |  | 26.1 |  |  |  |  |
Interest expense, net |  |  | 2,571 |  |  |  |  |  |  |  | 2,654 |  |  |  |  |  |  |  | (3.1 | ) |  |  |  |  |  |  | 1,586 |  |  |  |  |  |  |  | 62.1 |  |  |  |  |
Foreign exchange loss (gain) |  |  | (1,613 | ) |  |  |  |  |  |  | 3,304 |  |  |  |  |  |  |  | (148.8 | ) |  |  |  |  |  |  | 3,310 |  |  |  |  |  |  |  | (148.7 | ) |  |  |  |
Other financial expenses (income), net. |  |  | 51 |  |  |  |  |  |  |  | (166 | ) |  |  |  |  |  |  | (130.7 | ) |  |  |  |  |  |  | (166 | ) |  |  |  |  |  |  | (130.7 | ) |  |  |  |
Financing expenses, net |  |  | 1,009 |  |  |  |  |  |  |  | 5,792 |  |  |  |  |  |  |  | (82.6 | ) |  |  |  |  |  |  | 4,730 |  |  |  |  |  |  |  | (78.7 | ) |  |  |  |
Income before income tax and participation in associates results |  |  | 11,221 |  |  |  |  |  |  |  | 4,516 |  |  |  |  |  |  |  | 148.4 |  |  |  |  |  |  |  | 4,871 |  |  |  |  |  |  |  | 130.4 |  |  |  |  |
Income tax |  |  | 3,391 |  |  |  |  |  |  |  | 1,741 |  |  |  |  |  |  |  | 94.8 |  |  |  |  |  |  |  | 1,784 |  |  |  |  |  |  |  | 90.1 |  |  |  |  |
Participation in associates results(3) |  |  | 1,783 |  |  |  |  |  |  |  | 3,101 |  |  |  |  |  |  |  | (42.5 | ) |  |  |  |  |  |  | 3,101 |  |  |  |  |  |  |  | (42.5 | ) |  |  |  |
Net income from continuing operations |  |  | 9,613 |  |  |  |  |  |  |  | 5,877 |  |  |  |  |  |  |  | 63.6 |  |  |  |  |  |  |  | 6,188 |  |  |  |  |  |  |  | 55.3 |  |  |  |  |
Net income from discontinued operations |  |  | - |  |  |  |  |  |  |  | 410 |  |  |  |  |  |  |  | (100.0 | ) |  |  |  |  |  |  | 410 |  |  |  |  |  |  |  | (100.0 | ) |  |  |  |
Net consolidated income |  |  | 9,613 |  |  |  |  |  |  |  | 6,286 |  |  |  |  |  |  |  | 52.9 |  |  |  |  |  |  |  | 6,598 |  |  |  |  |  |  |  | 45.7 |  |  |  |  |
Net majority income |  |  | 7,274 |  |  |  |  |  |  |  | 4,380 |  |  |  |  |  |  |  | 66.1 |  |  |  |  |  |  |  | 4,693 |  |  |  |  |  |  |  | 55.0 |  |  |  |  |
Net minority income |  |  | 2,339 |  |  |  |  |  |  |  | 1,906 |  |  |  |  |  |  |  | 22.7 |  |  |  |  |  |  |  | 1,906 |  |  |  |  |  |  |  | 22.7 |  |  |  |  |

Operative Cash Flow & CAPEX |  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |
Income from operations |  |  | 12,632 |  |  |  | 9.7 |  |  |  | 10,699 |  |  |  | 9.0 |  |  |  | 18.1 |  |  |  | 17.7 |  |  |  | 9,992 |  |  |  | 8.4 |  |  |  | 26.4 |  |  |  | 26.1 |
Depreciation |  |  | 6,045 |  |  |  | 4.6 |  |  |  | 5,682 |  |  |  | 4.8 |  |  |  | 6.4 |  |  |  |  |  |  |  | 3,803 |  |  |  | 3.2 |  |  |  | 59.0 |  |  |  |  |
Amortization & other non-cash charges |  |  | 1,099 |  |  |  | 0.9 |  |  |  | 1,251 |  |  |  | 1.1 |  |  |  | (12.2 | ) |  |  |  |  |  |  | 1,251 |  |  |  | 1.1 |  |  |  | (12.2 | ) |  |  |  |
Operative Cash Flow (EBITDA) |  |  | 19,776 |  |  |  | 15.2 |  |  |  | 17,632 |  |  |  | 14.9 |  |  |  | 12.2 |  |  |  | 10.7 |  |  |  | 15,046 |  |  |  | 12.7 |  |  |  | 31.4 |  |  |  | 29.8 |
CAPEX |  |  | 6,776 |  |  |  |  |  |  |  | 6,650 |  |  |  |  |  |  |  | 1.9 |  |  |  |  |  |  |  | 6,650 |  |  |  |  |  |  |  | 1.9 |  |  |  |  |

(A) Unaudited consolidated financial information. For more detail please refer to our Press Release published on april 5th, 2019.

(B) 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 results, net.

October 28, 2019 |  | 11

FEMSA

Consolidated Income Statement

Millions of Pesos

|  | For the nine months of: |
|  |  |  |  |  |  |  | Comparable(A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |
Total revenues |  |  | 374,190 |  |  |  | 100.0 |  |  |  | 343,038 |  |  |  | 100.0 |  |  |  | 9.1 |  |  |  | 6.8 |  |  |  | 343,038 |  |  |  | 100.0 |  |  |  | 9.1 |  |  |  | 6.8 |
Cost of sales |  |  | 234,806 |  |  |  | 62.8 |  |  |  | 217,491 |  |  |  | 63.4 |  |  |  | 8.0 |  |  |  |  |  |  |  | 217,603 |  |  |  | 63.4 |  |  |  | 7.9 |  |  |  |  |
Gross profit |  |  | 139,384 |  |  |  | 37.2 |  |  |  | 125,547 |  |  |  | 36.6 |  |  |  | 11.0 |  |  |  |  |  |  |  | 125,435 |  |  |  | 36.6 |  |  |  | 11.1 |  |  |  |  |
Administrative expenses |  |  | 14,871 |  |  |  | 4.0 |  |  |  | 12,823 |  |  |  | 3.7 |  |  |  | 16.0 |  |  |  |  |  |  |  | 12,892 |  |  |  | 3.8 |  |  |  | 15.4 |  |  |  |  |
Selling expenses |  |  | 89,549 |  |  |  | 23.8 |  |  |  | 81,432 |  |  |  | 23.8 |  |  |  | 10.0 |  |  |  |  |  |  |  | 83,168 |  |  |  | 24.2 |  |  |  | 7.7 |  |  |  |  |
Other operating expenses (income), net (1) |  |  | 1,439 |  |  |  | 0.4 |  |  |  | 1,069 |  |  |  | 0.3 |  |  |  | 34.6 |  |  |  |  |  |  |  | 1,069 |  |  |  | 0.3 |  |  |  | 34.6 |  |  |  |  |
Income from operations(2) |  |  | 33,525 |  |  |  | 9.0 |  |  |  | 30,223 |  |  |  | 8.8 |  |  |  | 10.9 |  |  |  | 9.5 |  |  |  | 28,306 |  |  |  | 8.3 |  |  |  | 18.4 |  |  |  | 16.9 |
Other non-operating expenses (income) |  |  | 667 |  |  |  |  |  |  |  | 995 |  |  |  |  |  |  |  | (33.0 | ) |  |  |  |  |  |  | 995 |  |  |  |  |  |  |  | (33.0 | ) |  |  |  |
Interest expense |  |  | 10,458 |  |  |  |  |  |  |  | 10,354 |  |  |  |  |  |  |  | 1.0 |  |  |  |  |  |  |  | 7,152 |  |  |  |  |  |  |  | 46.2 |  |  |  |  |
Interest income |  |  | 2,462 |  |  |  |  |  |  |  | 2,002 |  |  |  |  |  |  |  | 23.0 |  |  |  |  |  |  |  | 2,002 |  |  |  |  |  |  |  | 23.0 |  |  |  |  |
Interest expense, net |  |  | 7,996 |  |  |  |  |  |  |  | 8,352 |  |  |  |  |  |  |  | (4.3 | ) |  |  |  |  |  |  | 5,150 |  |  |  |  |  |  |  | 55.3 |  |  |  |  |
Foreign exchange loss (gain) |  |  | 270 |  |  |  |  |  |  |  | 2,636 |  |  |  |  |  |  |  | (89.8 | ) |  |  |  |  |  |  | 2,649 |  |  |  |  |  |  |  | (89.8 | ) |  |  |  |
Other financial expenses (income), net. |  |  | 66 |  |  |  |  |  |  |  | 160 |  |  |  |  |  |  |  | (58.8 | ) |  |  |  |  |  |  | 160 |  |  |  |  |  |  |  | (58.8 | ) |  |  |  |
Financing expenses, net |  |  | 8,332 |  |  |  |  |  |  |  | 11,148 |  |  |  |  |  |  |  | (25.3 | ) |  |  |  |  |  |  | 7,959 |  |  |  |  |  |  |  | 4.7 |  |  |  |  |
Income before income tax and participation in associates results |  |  | 24,526 |  |  |  |  |  |  |  | 18,079 |  |  |  |  |  |  |  | 35.7 |  |  |  |  |  |  |  | 19,352 |  |  |  |  |  |  |  | 26.7 |  |  |  |  |
Income tax |  |  | 7,494 |  |  |  |  |  |  |  | 6,141 |  |  |  |  |  |  |  | 22.0 |  |  |  |  |  |  |  | 6,498 |  |  |  |  |  |  |  | 15.3 |  |  |  |  |
Participation in associates results(3) |  |  | 4,930 |  |  |  |  |  |  |  | 5,163 |  |  |  |  |  |  |  | (4.5 | ) |  |  |  |  |  |  | 5,163 |  |  |  |  |  |  |  | (4.5 | ) |  |  |  |
Net income from continuing operations |  |  | 21,962 |  |  |  |  |  |  |  | 17,102 |  |  |  |  |  |  |  | 28.4 |  |  |  |  |  |  |  | 18,017 |  |  |  |  |  |  |  | 21.9 |  |  |  |  |
Net income from discontinued operations |  |  | - |  |  |  |  |  |  |  | 576 |  |  |  |  |  |  |  | (100.0 | ) |  |  |  |  |  |  | 576 |  |  |  |  |  |  |  | (100.0 | ) |  |  |  |
Net consolidated income |  |  | 21,962 |  |  |  |  |  |  |  | 17,678 |  |  |  |  |  |  |  | 24.2 |  |  |  |  |  |  |  | 18,593 |  |  |  |  |  |  |  | 18.1 |  |  |  |  |
Net majority income |  |  | 15,896 |  |  |  |  |  |  |  | 12,381 |  |  |  |  |  |  |  | 28.4 |  |  |  |  |  |  |  | 13,230 |  |  |  |  |  |  |  | 20.2 |  |  |  |  |
Net minority income |  |  | 6,066 |  |  |  |  |  |  |  | 5,297 |  |  |  |  |  |  |  | 14.5 |  |  |  |  |  |  |  | 5,363 |  |  |  |  |  |  |  | 13.1 |  |  |  |  |

Operative Cash Flow & CAPEX |  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |
Income from operations |  |  | 33,525 |  |  |  | 9.0 |  |  |  | 30,223 |  |  |  | 8.8 |  |  |  | 10.9 |  |  |  | 9.5 |  |  |  | 28,306 |  |  |  | 8.3 |  |  |  | 18.4 |  |  |  | 16.9 |
Depreciation |  |  | 17,387 |  |  |  | 4.6 |  |  |  | 16,348 |  |  |  | 4.8 |  |  |  | 6.4 |  |  |  |  |  |  |  | 10,738 |  |  |  | 3.1 |  |  |  | 61.9 |  |  |  |  |
Amortization & other non-cash charges |  |  | 3,383 |  |  |  | 0.9 |  |  |  | 2,957 |  |  |  | 0.8 |  |  |  | 14.4 |  |  |  |  |  |  |  | 2,957 |  |  |  | 0.8 |  |  |  | 14.4 |  |  |  |  |
Operative Cash Flow (EBITDA) |  |  | 54,296 |  |  |  | 14.5 |  |  |  | 49,527 |  |  |  | 14.4 |  |  |  | 9.6 |  |  |  | 7.5 |  |  |  | 42,001 |  |  |  | 12.2 |  |  |  | 29.3 |  |  |  | 26.8 |
CAPEX |  |  | 16,944 |  |  |  |  |  |  |  | 16,533 |  |  |  |  |  |  |  | 2.5 |  |  |  |  |  |  |  | 16,533 |  |  |  |  |  |  |  | 2.5 |  |  |  |  |

(A) Unaudited consolidated financial information. For more detail please refer to our Press Release published on april 5th, 2019.

(B) 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 results, net.

October 28, 2019 |  | 12

FEMSA

Consolidated Balance Sheet

Millions of Pesos

ASSETS |  | Sep-19 |  |  | Dic-18 |  |  | % Inc. |
Cash and cash equivalents |  |  | 97,851 |  |  |  | 62,047 |  |  |  | 57.7 |
Investments |  |  | 14,661 |  |  |  | 30,924 |  |  |  | (52.6 | )
Accounts receivable |  |  | 25,171 |  |  |  | 28,164 |  |  |  | (10.6 | )
Inventories |  |  | 36,140 |  |  |  | 35,686 |  |  |  | 1.3 |
Other current assets |  |  | 23,113 |  |  |  | 20,786 |  |  |  | 11.2 |
Total current assets |  |  | 196,936 |  |  |  | 177,607 |  |  |  | 10.9 |
Investments in shares |  |  | 94,181 |  |  |  | 94,315 |  |  |  | (0.1 | )
Property, plant and equipment, net |  |  | 111,155 |  |  |  | 108,602 |  |  |  | 2.4 |
Right of use |  |  | 51,068 |  |  |  | - |  |  |  | N.S. |
Intangible assets (1) |  |  | 144,106 |  |  |  | 145,610 |  |  |  | (1.0 | )
Other assets |  |  | 42,090 |  |  |  | 50,247 |  |  |  | (16.2 | )
TOTAL ASSETS |  |  | 639,536 |  |  |  | 576,381 |  |  |  | 11.0 |
LIABILITIES & STOCKHOLDERS´ EQUITY |  |  |  |  |  |  |  |  |  |  |  |
Bank loans |  |  | 3,690 |  |  |  | 2,436 |  |  |  | 51.5 |
Current maturities of long-term debt |  |  | 17,716 |  |  |  | 11,238 |  |  |  | 57.6 |
Interest payable |  |  | 1,543 |  |  |  | 964 |  |  |  | 60.1 |
Current maturities of long-term leases |  |  | 6,268 |  |  |  | - |  |  |  | N.S. |
Operating liabilities |  |  | 100,346 |  |  |  | 86,826 |  |  |  | 15.6 |
Total current liabilities |  |  | 129,563 |  |  |  | 101,464 |  |  |  | 27.7 |
Long-term debt (2) |  |  | 96,310 |  |  |  | 108,161 |  |  |  | (11.0 | )
Long-term leases |  |  | 46,432 |  |  |  | - |  |  |  | N.S. |
Laboral obligations |  |  | 4,876 |  |  |  | 4,699 |  |  |  | 3.8 |
Other liabilities |  |  | 25,409 |  |  |  | 26,515 |  |  |  | (4.2 | )
Total liabilities |  |  | 302,590 |  |  |  | 240,839 |  |  |  | 25.6 |
Total stockholders’ equity |  |  | 336,946 |  |  |  | 335,542 |  |  |  | 0.4 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  | 639,536 |  |  |  | 576,381 |  |  |  | 11.0 |

|  | September 30, 2019 |
DEBT MIX (2) |  | % of Total |  |  | Average Rate |
Denominated in: |  |  |  |  |  |  |  |
Mexican pesos |  |  | 52.8 | % |  |  | 8.1 | %
U.S. Dollars |  |  | 7.4 | % |  |  | 4.6 | %
Euros |  |  | 18.5 | % |  |  | 1.8 | %
Colombian pesos |  |  | 1.3 | % |  |  | 5.4 | %
Argentine pesos |  |  | 0.1 | % |  |  | 65.9 | %
Brazilian reais |  |  | 14.8 | % |  |  | 8.3 | %
Chilean pesos |  |  | 3.9 | % |  |  | 4.6 | %
Uruguayan Pesos |  |  | 1.1 | % |  |  | 9.7 | %
Total debt |  |  | 100.0 | % |  |  | 6.6 | %

Fixed rate (2) |  |  | 88.3 | % |  |  |  |
Variable rate (2) |  |  | 11.7 | % |  |  |  |

DEBT MATURITY PROFILE |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |  |  | 2024+ |
% of Total Debt |  |  | 3.8 | % |  |  | 10.1 | % |  |  | 4.4 | % |  |  | 2.2 | % |  |  | 22.1 | % |  |  | 57.5 | %

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

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

October 28, 2019 |  | 13

FEMSA Comercio - Proximity Division

Results of Operations

Millions of Pesos

|  | For the third quarter of: |
|  |  |  |  |  |  |  | Comparable (A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |
Total revenues |  |  | 48,429 |  |  |  | 100.0 |  |  |  | 43,967 |  |  |  | 100.0 |  |  |  | 10.1 |  |  |  | 43,967 |  |  |  | 100.0 |  |  |  | 10.1 |
Cost of sales |  |  | 29,046 |  |  |  | 60.0 |  |  |  | 26,917 |  |  |  | 61.2 |  |  |  | 7.9 |  |  |  | 26,917 |  |  |  | 61.2 |  |  |  | 7.9 |
Gross profit |  |  | 19,383 |  |  |  | 40.0 |  |  |  | 17,050 |  |  |  | 38.8 |  |  |  | 13.7 |  |  |  | 17,050 |  |  |  | 38.8 |  |  |  | 13.7 |
Administrative expenses |  |  | 1,189 |  |  |  | 2.5 |  |  |  | 1,044 |  |  |  | 2.4 |  |  |  | 13.9 |  |  |  | 1,046 |  |  |  | 2.4 |  |  |  | 13.7 |
Selling expenses |  |  | 13,710 |  |  |  | 28.3 |  |  |  | 11,903 |  |  |  | 27.0 |  |  |  | 15.2 |  |  |  | 12,325 |  |  |  | 28.0 |  |  |  | 11.2 |
Other operating expenses (income), net |  |  | 71 |  |  |  | 0.1 |  |  |  | 69 |  |  |  | 0.2 |  |  |  | 2.9 |  |  |  | 69 |  |  |  | 0.2 |  |  |  | 2.9 |
Income from operations |  |  | 4,413 |  |  |  | 9.1 |  |  |  | 4,034 |  |  |  | 9.2 |  |  |  | 9.4 |  |  |  | 3,610 |  |  |  | 8.2 |  |  |  | 22.2 |
Depreciation |  |  | 2,392 |  |  |  | 4.9 |  |  |  | 2,166 |  |  |  | 4.9 |  |  |  | 10.4 |  |  |  | 1,262 |  |  |  | 2.9 |  |  |  | 89.5 |
Amortization & other non-cash charges |  |  | 164 |  |  |  | 0.4 |  |  |  | 125 |  |  |  | 0.3 |  |  |  | 31.2 |  |  |  | 125 |  |  |  | 0.3 |  |  |  | 31.2 |
Operative cash flow |  |  | 6,969 |  |  |  | 14.4 |  |  |  | 6,325 |  |  |  | 14.4 |  |  |  | 10.2 |  |  |  | 4,997 |  |  |  | 11.4 |  |  |  | 39.5 |
CAPEX |  |  | 3,003 |  |  |  |  |  |  |  | 2,654 |  |  |  |  |  |  |  | 13.2 |  |  |  | 2,654 |  |  |  |  |  |  |  | 13.2 |

Information of OXXO Stores

Total stores |  |  | 18,840 |  |  |  |  |  |  |  | 17,478 |  |  |  |  |  |  |  | 7.8 |  |  |  |  |  |  |  |  |  |  |  |  |
Net new convenience stores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vs. Last quarter |  |  | 232 |  |  |  |  |  |  |  | 182 |  |  |  |  |  |  |  | 27.5 |  |  |  |  |  |  |  |  |  |  |  |  |
Year-to-date |  |  | 841 |  |  |  |  |  |  |  | 901 |  |  |  |  |  |  |  | (6.7 | ) |  |  |  |  |  |  |  |  |  |  |  |
Last-twelve-months |  |  | 1,362 |  |  |  |  |  |  |  | 1,430 |  |  |  |  |  |  |  | (4.8 | ) |  |  |  |  |  |  |  |  |  |  |  |
Same-store data: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (thousands of pesos) |  |  | 824.0 |  |  |  |  |  |  |  | 784.7 |  |  |  |  |  |  |  | 5.0 |  |  |  |  |  |  |  |  |  |  |  |  |
Traffic (thousands of transactions) |  |  | 22.6 |  |  |  |  |  |  |  | 23.0 |  |  |  |  |  |  |  | (1.4 | ) |  |  |  |  |  |  |  |  |  |  |  |
Ticket (pesos) |  |  | 36.4 |  |  |  |  |  |  |  | 34.2 |  |  |  |  |  |  |  | 6.5 |  |  |  |  |  |  |  |  |  |  |  |  |

FEMSA Comercio - Proximity Division

Results of Operations

Millions of Pesos

|  | For the nine months of: |
|  |  |  |  |  |  |  | Comparable (A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |
Total revenues |  |  | 136,870 |  |  |  | 100.0 |  |  |  | 124,101 |  |  |  | 100.0 |  |  |  | 10.3 |  |  |  | 10.0 |  |  |  | 124,101 |  |  |  | 100.0 |  |  |  | 10.3 |  |  |  | 10.0 |
Cost of sales |  |  | 82,852 |  |  |  | 60.5 |  |  |  | 77,482 |  |  |  | 62.4 |  |  |  | 6.9 |  |  |  |  |  |  |  | 77,482 |  |  |  | 62.4 |  |  |  | 6.9 |  |  |  |  |
Gross profit |  |  | 54,018 |  |  |  | 39.5 |  |  |  | 46,619 |  |  |  | 37.6 |  |  |  | 15.9 |  |  |  |  |  |  |  | 46,619 |  |  |  | 37.6 |  |  |  | 15.9 |  |  |  |  |
Administrative expenses |  |  | 3,272 |  |  |  | 2.4 |  |  |  | 2,772 |  |  |  | 2.2 |  |  |  | 18.0 |  |  |  |  |  |  |  | 2,777 |  |  |  | 2.2 |  |  |  | 17.8 |  |  |  |  |
Selling expenses |  |  | 38,858 |  |  |  | 28.5 |  |  |  | 33,231 |  |  |  | 26.8 |  |  |  | 16.9 |  |  |  |  |  |  |  | 34,460 |  |  |  | 27.8 |  |  |  | 12.8 |  |  |  |  |
Other operating expenses (income), net |  |  | 194 |  |  |  | 0.1 |  |  |  | 213 |  |  |  | 0.2 |  |  |  | (9.0 | ) |  |  |  |  |  |  | 213 |  |  |  | 0.2 |  |  |  | (8.9 | ) |  |  |  |
Income from operations |  |  | 11,694 |  |  |  | 8.5 |  |  |  | 10,403 |  |  |  | 8.4 |  |  |  | 12.4 |  |  |  | 11.4 |  |  |  | 9,169 |  |  |  | 7.4 |  |  |  | 27.5 |  |  |  | 26.4 |
Depreciation |  |  | 6,909 |  |  |  | 5.0 |  |  |  | 6,176 |  |  |  | 5.0 |  |  |  | 11.9 |  |  |  |  |  |  |  | 3,522 |  |  |  | 2.8 |  |  |  | 96.2 |  |  |  |  |
Amortization & other non-cash charges |  |  | 447 |  |  |  | 0.4 |  |  |  | 364 |  |  |  | 0.3 |  |  |  | 22.9 |  |  |  |  |  |  |  | 364 |  |  |  | 0.3 |  |  |  | 22.8 |  |  |  |  |
Operative cash flow |  |  | 19,050 |  |  |  | 13.9 |  |  |  | 16,943 |  |  |  | 13.7 |  |  |  | 12.4 |  |  |  | 11.2 |  |  |  | 13,055 |  |  |  | 10.5 |  |  |  | 45.9 |  |  |  | 44.3 |
CAPEX |  |  | 7,508 |  |  |  |  |  |  |  | 6,525 |  |  |  |  |  |  |  | 15.1 |  |  |  |  |  |  |  | 6,525 |  |  |  |  |  |  |  | 15.1 |  |  |  |  |

Information of OXXO Stores

Total stores |  |  | 18,840 |  |  |  |  |  |  |  | 17,478 |  |  |  |  |  |  |  | 7.8 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net new convenience stores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vs. Last quarter |  |  | 232 |  |  |  |  |  |  |  | 182 |  |  |  |  |  |  |  | 27.5 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year-to-date |  |  | 841 |  |  |  |  |  |  |  | 901 |  |  |  |  |  |  |  | (6.7 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Last-twelve-months |  |  | 1,362 |  |  |  |  |  |  |  | 1,430 |  |  |  |  |  |  |  | (4.8 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store data: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (thousands of pesos) |  |  | 792.0 |  |  |  |  |  |  |  | 755.1 |  |  |  |  |  |  |  | 4.9 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Traffic (thousands of transactions) |  |  | 22.3 |  |  |  |  |  |  |  | 22.4 |  |  |  |  |  |  |  | (0.6 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ticket (pesos) |  |  | 35.6 |  |  |  |  |  |  |  | 33.7 |  |  |  |  |  |  |  | 5.5 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

(A) Unaudited consolidated financial information. For more detail please refer to our Press Release published on april 5th, 2019.

(B) Organic basis (% Org.) Excludes the effects of significant mergers and acquisitions in the last twelve months.

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

October 28, 2019 |  | 14

FEMSA Comercio - Health Division

Results of Operations

Millions of Pesos

|  | For the third quarter of: |
|  |  |  |  |  |  |  | Comparable(A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |
Total revenues |  |  | 15,909 |  |  |  | 100.0 |  |  |  | 12,562 |  |  |  | 100.0 |  |  |  | 26.6 |  |  |  | 6.2 |  |  |  | 12,562 |  |  |  | 100.0 |  |  |  | 26.6 |  |  |  | 6.2 |
Cost of sales |  |  | 11,233 |  |  |  | 70.6 |  |  |  | 8,750 |  |  |  | 69.7 |  |  |  | 28.4 |  |  |  |  |  |  |  | 8,750 |  |  |  | 69.7 |  |  |  | 28.4 |  |  |  |  |
Gross profit |  |  | 4,676 |  |  |  | 29.4 |  |  |  | 3,812 |  |  |  | 30.3 |  |  |  | 22.7 |  |  |  |  |  |  |  | 3,812 |  |  |  | 30.3 |  |  |  | 22.7 |  |  |  |  |
Administrative expenses |  |  | 725 |  |  |  | 4.6 |  |  |  | 514 |  |  |  | 4.1 |  |  |  | 41.1 |  |  |  |  |  |  |  | 514 |  |  |  | 4.1 |  |  |  | 41.1 |  |  |  |  |
Selling expenses |  |  | 3,253 |  |  |  | 20.4 |  |  |  | 2,680 |  |  |  | 21.3 |  |  |  | 21.4 |  |  |  |  |  |  |  | 2,732 |  |  |  | 21.7 |  |  |  | 19.1 |  |  |  |  |
Other operating expenses (income), net |  |  | 51 |  |  |  | 0.3 |  |  |  | 26 |  |  |  | 0.2 |  |  |  | 96.2 |  |  |  |  |  |  |  | 26 |  |  |  | 0.2 |  |  |  | 96.2 |  |  |  |  |
Income from operations |  |  | 647 |  |  |  | 4.1 |  |  |  | 592 |  |  |  | 4.7 |  |  |  | 9.4 |  |  |  | 3.7 |  |  |  | 540 |  |  |  | 4.3 |  |  |  | 19.8 |  |  |  | 13.5 |
Depreciation |  |  | 817 |  |  |  | 5.1 |  |  |  | 605 |  |  |  | 4.8 |  |  |  | 34.9 |  |  |  |  |  |  |  | 169 |  |  |  | 1.3 |  |  |  | N.S. |  |  |  |  |
Amortization & other non-cash charges |  |  | 75 |  |  |  | 0.5 |  |  |  | 80 |  |  |  | 0.7 |  |  |  | (6.3 | ) |  |  |  |  |  |  | 80 |  |  |  | 0.7 |  |  |  | (6.3 | ) |  |  |  |
Operative cash flow |  |  | 1,539 |  |  |  | 9.7 |  |  |  | 1,277 |  |  |  | 10.2 |  |  |  | 20.5 |  |  |  | 0.9 |  |  |  | 789 |  |  |  | 6.3 |  |  |  | 95.1 |  |  |  | 63.3 |
CAPEX |  |  | 411 |  |  |  |  |  |  |  | 376 |  |  |  |  |  |  |  | 9.3 |  |  |  |  |  |  |  | 376 |  |  |  |  |  |  |  | 9.3 |  |  |  |  |

Information of Stores |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Stores(1) |  |  | 3,130 |  |  |  |  |  |  |  | 2,303 |  |  |  |  |  |  |  | 35.9 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net new stores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vs. Last quarter |  |  | 69 |  |  |  |  |  |  |  | 52 |  |  |  |  |  |  |  | 32.7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year-to-date |  |  | 769 |  |  |  |  |  |  |  | 78 |  |  |  |  |  |  |  | N.S. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Last-twelve-months |  |  | 827 |  |  |  |  |  |  |  | 125 |  |  |  |  |  |  |  | N.S. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store data: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (thousands of pesos) |  |  | 1,399.2 |  |  |  |  |  |  |  | 1,409.6 |  |  |  |  |  |  |  | (0.7 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

FEMSA Comercio - Health Division

Results of Operations

Millions of Pesos

|  | For the nine months of: |
|  |  |  |  |  |  |  | Comparable(A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |
Total revenues |  |  | 43,913 |  |  |  | 100.0 |  |  |  | 38,396 |  |  |  | 100.0 |  |  |  | 14.4 |  |  |  | 2.8 |  |  |  | 38,396 |  |  |  | 100.0 |  |  |  | 14.4 |  |  |  | 2.8 |
Cost of sales |  |  | 31,035 |  |  |  | 70.7 |  |  |  | 26,795 |  |  |  | 69.8 |  |  |  | 15.8 |  |  |  |  |  |  |  | 26,795 |  |  |  | 69.8 |  |  |  | 15.8 |  |  |  |  |
Gross profit |  |  | 12,878 |  |  |  | 29.3 |  |  |  | 11,601 |  |  |  | 30.2 |  |  |  | 11.0 |  |  |  |  |  |  |  | 11,601 |  |  |  | 30.2 |  |  |  | 11.0 |  |  |  |  |
Administrative expenses |  |  | 1,965 |  |  |  | 4.5 |  |  |  | 1,514 |  |  |  | 3.9 |  |  |  | 29.8 |  |  |  |  |  |  |  | 1,514 |  |  |  | 3.9 |  |  |  | 29.8 |  |  |  |  |
Selling expenses |  |  | 9,181 |  |  |  | 20.9 |  |  |  | 8,413 |  |  |  | 21.9 |  |  |  | 9.1 |  |  |  |  |  |  |  | 8,564 |  |  |  | 22.3 |  |  |  | 7.2 |  |  |  |  |
Other operating expenses (income), net |  |  | 105 |  |  |  | 0.2 |  |  |  | 69 |  |  |  | 0.2 |  |  |  | 52.2 |  |  |  |  |  |  |  | 69 |  |  |  | 0.2 |  |  |  | 52.2 |  |  |  |  |
Income from operations |  |  | 1,627 |  |  |  | 3.7 |  |  |  | 1,605 |  |  |  | 4.2 |  |  |  | 1.4 |  |  |  | (3.5 | ) |  |  | 1,454 |  |  |  | 3.8 |  |  |  | 11.9 |  |  |  | 6.6 |
Depreciation |  |  | 2,057 |  |  |  | 4.7 |  |  |  | 1,791 |  |  |  | 4.7 |  |  |  | 14.9 |  |  |  |  |  |  |  | 500 |  |  |  | 1.3 |  |  |  | N.S. |  |  |  |  |
Amortization & other non-cash charges |  |  | 228 |  |  |  | 0.5 |  |  |  | 252 |  |  |  | 0.6 |  |  |  | (9.5 | ) |  |  |  |  |  |  | 252 |  |  |  | 0.6 |  |  |  | (9.5 | ) |  |  |  |
Operative cash flow |  |  | 3,912 |  |  |  | 8.9 |  |  |  | 3,648 |  |  |  | 9.5 |  |  |  | 7.2 |  |  |  | (2.0 | ) |  |  | 2,206 |  |  |  | 5.7 |  |  |  | 77.3 |  |  |  | 62.0 |
CAPEX |  |  | 1,006 |  |  |  |  |  |  |  | 956 |  |  |  |  |  |  |  | 5.2 |  |  |  |  |  |  |  | 956 |  |  |  |  |  |  |  | 5.2 |  |  |  |  |

Information of Stores |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Stores(1) |  |  | 3,130 |  |  |  |  |  |  |  | 2,303 |  |  |  |  |  |  |  | 35.9 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net new stores: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vs. Last quarter |  |  | 69 |  |  |  |  |  |  |  | 52 |  |  |  |  |  |  |  | 32.7 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Year-to-date |  |  | 769 |  |  |  |  |  |  |  | 78 |  |  |  |  |  |  |  | N.S. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Last-twelve-months |  |  | 827 |  |  |  |  |  |  |  | 125 |  |  |  |  |  |  |  | N.S. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same-store data: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (thousands of pesos) |  |  | 1,461.4 |  |  |  |  |  |  |  | 1,472.2 |  |  |  |  |  |  |  | (0.7 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

(A) Unaudited consolidated financial information. For more detail please refer to our Press Release published on april 5th, 2019.

(B) Organic basis (% Org.) Excludes the effects of significant mergers and acquisitions in the last twelve months.

(1) Includes GPF Adquisition

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

October 28, 2019 |  | 15

FEMSA Comercio - Fuel Division

Results of Operations

Millions of Pesos

|  | For the third quarter of: |
|  |  |  |  |  |  |  | Comparable (A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |
Total revenues |  |  | 12,348 |  |  |  | 100.0 |  |  |  | 12,196 |  |  |  | 100.0 |  |  |  | 1.2 |  |  |  | 12,196 |  |  |  | 100.0 |  |  |  | 1.2 |
Cost of sales |  |  | 11,110 |  |  |  | 90.0 |  |  |  | 11,136 |  |  |  | 91.3 |  |  |  | (0.2 | ) |  |  | 11,136 |  |  |  | 91.3 |  |  |  | (0.2 | )
Gross profit |  |  | 1,238 |  |  |  | 10.0 |  |  |  | 1,060 |  |  |  | 8.7 |  |  |  | 16.8 |  |  |  | 1,060 |  |  |  | 8.7 |  |  |  | 16.8 |
Administrative expenses |  |  | 60 |  |  |  | 0.5 |  |  |  | 42 |  |  |  | 0.3 |  |  |  | 44.6 |  |  |  | 42 |  |  |  | 0.3 |  |  |  | 42.9 |
Selling expenses |  |  | 848 |  |  |  | 6.8 |  |  |  | 750 |  |  |  | 6.2 |  |  |  | 13.1 |  |  |  | 884 |  |  |  | 7.3 |  |  |  | (4.1 | )
Other operating expenses (income), net |  |  | (1 | ) |  |  | - |  |  |  | 1 |  |  |  | - |  |  |  | N.S. |  |  |  | 1 |  |  |  | - |  |  |  | N.S. |
Income from operations |  |  | 331 |  |  |  | 2.7 |  |  |  | 268 |  |  |  | 2.2 |  |  |  | 23.7 |  |  |  | 133 |  |  |  | 1.1 |  |  |  | 148.9 |
Depreciation |  |  | 215 |  |  |  | 1.7 |  |  |  | 193 |  |  |  | 1.6 |  |  |  | 11.7 |  |  |  | 36 |  |  |  | 0.3 |  |  |  | N.S. |
Amortization & other non-cash charges |  |  | 5 |  |  |  | 0.1 |  |  |  | 6 |  |  |  | - |  |  |  | (16.7 | ) |  |  | 6 |  |  |  | - |  |  |  | (16.7 | )
Operative cash flow |  |  | 551 |  |  |  | 4.5 |  |  |  | 466 |  |  |  | 3.8 |  |  |  | 18.2 |  |  |  | 175 |  |  |  | 1.4 |  |  |  | N.S. |
CAPEX |  |  | 184 |  |  |  |  |  |  |  | 123 |  |  |  |  |  |  |  | 49.3 |  |  |  | 123 |  |  |  |  |  |  |  | 49.3 |

Information of OXXO GAS Service Stations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total service stations |  |  | 541 |  |  |  |  |  |  |  | 519 |  |  |  |  |  |  |  | 4.2 |  |  |  |  |  |  |  |  |  |  |  |  |
Net new service stations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vs. Last quarter |  |  | 0 |  |  |  |  |  |  |  | 20 |  |  |  |  |  |  |  | (100.0 | ) |  |  |  |  |  |  |  |  |  |  |  |
Year-to-date |  |  | 2 |  |  |  |  |  |  |  | 67 |  |  |  |  |  |  |  | (97.0 | ) |  |  |  |  |  |  |  |  |  |  |  |
Last-twelve-months |  |  | 22 |  |  |  |  |  |  |  | 122 |  |  |  |  |  |  |  | (82.0 | ) |  |  |  |  |  |  |  |  |  |  |  |
Volume (million of liters) total stations |  |  | 693 |  |  |  |  |  |  |  | 711 |  |  |  |  |  |  |  | (2.6 | ) |  |  |  |  |  |  |  |  |  |  |  |
Same-stations data: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (thousands of pesos) |  |  | 7,591.3 |  |  |  |  |  |  |  | 7,898.2 |  |  |  |  |  |  |  | (3.9 | ) |  |  |  |  |  |  |  |  |  |  |  |
Volume (thousands of liters) |  |  | 428.0 |  |  |  |  |  |  |  | 460.6 |  |  |  |  |  |  |  | (7.1 | ) |  |  |  |  |  |  |  |  |  |  |  |
Average price per liter |  |  | 17.7 |  |  |  |  |  |  |  | 17.1 |  |  |  |  |  |  |  | 3.5 |  |  |  |  |  |  |  |  |  |  |  |  |

FEMSA Comercio - Fuel Division

Results of Operations

Millions of Pesos

|  | For the nine months of: |
|  |  |  |  |  |  |  | Comparable (A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |
Total revenues |  |  | 35,616 |  |  |  | 100.0 |  |  |  | 34,300 |  |  |  | 100.0 |  |  |  | 3.8 |  |  |  | 34,300 |  |  |  | 100.0 |  |  |  | 3.8 |
Cost of sales |  |  | 32,054 |  |  |  | 90.0 |  |  |  | 31,437 |  |  |  | 91.7 |  |  |  | 2.0 |  |  |  | 31,437 |  |  |  | 91.7 |  |  |  | 2.0 |
Gross profit |  |  | 3,562 |  |  |  | 10.0 |  |  |  | 2,863 |  |  |  | 8.3 |  |  |  | 24.4 |  |  |  | 2,863 |  |  |  | 8.3 |  |  |  | 24.4 |
Administrative expenses |  |  | 151 |  |  |  | 0.4 |  |  |  | 153 |  |  |  | 0.4 |  |  |  | (1.0 | ) |  |  | 154 |  |  |  | 0.4 |  |  |  | (1.9 | )
Selling expenses |  |  | 2,420 |  |  |  | 6.8 |  |  |  | 1,963 |  |  |  | 5.7 |  |  |  | 23.3 |  |  |  | 2,354 |  |  |  | 6.9 |  |  |  | 2.8 |
Other operating expenses (income), net |  |  | 69 |  |  |  | 0.2 |  |  |  | 3 |  |  |  | - |  |  |  | N.S. |  |  |  | 3 |  |  |  | - |  |  |  | N.S. |
Income from operations |  |  | 922 |  |  |  | 2.6 |  |  |  | 744 |  |  |  | 2.2 |  |  |  | 23.9 |  |  |  | 352 |  |  |  | 1.0 |  |  |  | 161.9 |
Depreciation |  |  | 626 |  |  |  | 1.8 |  |  |  | 558 |  |  |  | 1.6 |  |  |  | 12.3 |  |  |  | 99 |  |  |  | 0.3 |  |  |  | N.S. |
Amortization & other non-cash charges |  |  | 86 |  |  |  | 0.2 |  |  |  | 19 |  |  |  | 0.1 |  |  |  | N.S. |  |  |  | 19 |  |  |  | 0.1 |  |  |  | N.S. |
Operative cash flow |  |  | 1,634 |  |  |  | 4.6 |  |  |  | 1,321 |  |  |  | 3.9 |  |  |  | 23.7 |  |  |  | 470 |  |  |  | 1.4 |  |  |  | N.S. |
CAPEX |  |  | 428 |  |  |  |  |  |  |  | 316 |  |  |  |  |  |  |  | 35.4 |  |  |  | 316 |  |  |  |  |  |  |  | 35.4 |

Information of OXXO GAS Service Stations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total service stations |  |  | 541 |  |  |  |  |  |  |  | 519 |  |  |  |  |  |  |  | 4.2 |  |  |  |  |  |  |  |  |  |  |  |  |
Net new service stations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
vs. Last quarter |  |  | 0 |  |  |  |  |  |  |  | 20 |  |  |  |  |  |  |  | (100.0 | ) |  |  |  |  |  |  |  |  |  |  |  |
Year-to-date |  |  | 2 |  |  |  |  |  |  |  | 67 |  |  |  |  |  |  |  | (97.0 | ) |  |  |  |  |  |  |  |  |  |  |  |
Last-twelve-months |  |  | 22 |  |  |  |  |  |  |  | 122 |  |  |  |  |  |  |  | (82.0 | ) |  |  |  |  |  |  |  |  |  |  |  |
Volume (million of liters) total stations |  |  | 2,007 |  |  |  |  |  |  |  | 2,093 |  |  |  |  |  |  |  | (4.1 | ) |  |  |  |  |  |  |  |  |  |  |  |
Same-stations data: (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales (thousands of pesos) |  |  | 7,502.9 |  |  |  |  |  |  |  | 7,790.4 |  |  |  |  |  |  |  | (3.7 | ) |  |  |  |  |  |  |  |  |  |  |  |
Volume (thousands of liters) |  |  | 424.1 |  |  |  |  |  |  |  | 475.5 |  |  |  |  |  |  |  | (10.8 | ) |  |  |  |  |  |  |  |  |  |  |  |
Average price per liter |  |  | 17.7 |  |  |  |  |  |  |  | 16.4 |  |  |  |  |  |  |  | 8.0 |  |  |  |  |  |  |  |  |  |  |  |  |

(A) Unaudited consolidated financial information. For more detail please refer to our Press Release published on april 5th, 2019.

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

October 28, 2019 |  | 16

Coca-Cola FEMSA

Results of Operations

Millions of Pesos

|  | For the third quarter of: |
|  |  |  |  |  |  |  | Comparable (A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | 2018 |  |  | % Integral |  |  | % Var. |
Total revenues |  |  | 48,699 |  |  |  | 100.0 |  |  |  | 44,148 |  |  |  | 100.0 |  |  |  | 10.3 |  |  |  | 44,148 |  |  |  | 100.0 |  |  |  | 10.3 |
Cost of sales |  |  | 27,032 |  |  |  | 55.5 |  |  |  | 23,909 |  |  |  | 54.2 |  |  |  | 13.1 |  |  |  | 23,911 |  |  |  | 54.2 |  |  |  | 13.1 |
Gross profit |  |  | 21,667 |  |  |  | 44.5 |  |  |  | 20,239 |  |  |  | 45.8 |  |  |  | 7.1 |  |  |  | 20,237 |  |  |  | 45.8 |  |  |  | 7.1 |
Administrative expenses |  |  | 2,138 |  |  |  | 4.4 |  |  |  | 2,058 |  |  |  | 4.7 |  |  |  | 3.9 |  |  |  | 2,061 |  |  |  | 4.7 |  |  |  | 3.7 |
Selling expenses |  |  | 12,564 |  |  |  | 25.8 |  |  |  | 12,186 |  |  |  | 27.5 |  |  |  | 3.1 |  |  |  | 12,195 |  |  |  | 27.5 |  |  |  | 3.0 |
Other operating expenses (income), net |  |  | (48 | ) |  |  | (0.1 | ) |  |  | 203 |  |  |  | 0.5 |  |  |  | (123.6 | ) |  |  | 203 |  |  |  | 0.5 |  |  |  | (123.6 | )
Income from operations |  |  | 7,013 |  |  |  | 14.4 |  |  |  | 5,792 |  |  |  | 13.1 |  |  |  | 21.1 |  |  |  | 5,777 |  |  |  | 13.1 |  |  |  | 21.4 |
Depreciation |  |  | 2,251 |  |  |  | 4.6 |  |  |  | 2,334 |  |  |  | 5.3 |  |  |  | (3.5 | ) |  |  | 2,190 |  |  |  | 5.0 |  |  |  | 2.8 |
Amortization & other non-cash charges |  |  | 805 |  |  |  | 1.7 |  |  |  | 524 |  |  |  | 1.2 |  |  |  | 53.8 |  |  |  | 524 |  |  |  | 1.1 |  |  |  | 53.6 |
Operative cash flow |  |  | 10,069 |  |  |  | 20.7 |  |  |  | 8,648 |  |  |  | 19.6 |  |  |  | 16.4 |  |  |  | 8,492 |  |  |  | 19.2 |  |  |  | 18.6 |
CAPEX |  |  | 2,772 |  |  |  |  |  |  |  | 3,103 |  |  |  |  |  |  |  | (10.7 | ) |  |  | 3,103 |  |  |  |  |  |  |  | (10.7 | )

Sales volumes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Millions of unit cases) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mexico and Central America |  |  | 535.7 |  |  |  | 63.6 |  |  |  | 534.1 |  |  |  | 63.7 |  |  |  | 0.3 |  |  |  |  |  |  |  |  |  |  |  |  |
South America |  |  | 111.2 |  |  |  | 13.2 |  |  |  | 120.2 |  |  |  | 14.3 |  |  |  | (7.5 | ) |  |  |  |  |  |  |  |  |  |  |  |
Brazil |  |  | 195.2 |  |  |  | 23.2 |  |  |  | 184.9 |  |  |  | 22.0 |  |  |  | 5.7 |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  | 842.1 |  |  |  | 100.0 |  |  |  | 839.2 |  |  |  | 100.0 |  |  |  | 0.3 |  |  |  |  |  |  |  |  |  |  |  |  |

(A) Unaudited consolidated financial information. For more detail please refer to our Press Release published on april 5th, 2019.

Coca-Cola FEMSA

Results of Operations

Millions of Pesos

|  | For the nine months of: |
|  |  |  |  |  |  |  | Comparable (A) |  |  | As Reported |
|  | 2019 |  |  | % of rev. |  |  | 2018 |  |  | % of rev. |  |  | % Var. |  |  | % Org.(B) |  |  | 2018 |  |  | % Integral |  |  | % Var. |  |  | % Org.(B) |
Total revenues |  |  | 142,504 |  |  |  | 100.0 |  |  |  | 130,577 |  |  |  | 100.0 |  |  |  | 9.1 |  |  |  | 6.8 |  |  |  | 130,577 |  |  |  | 100.0 |  |  |  | 9.1 |  |  |  | 6.8 |
Cost of sales |  |  | 78,030 |  |  |  | 54.8 |  |  |  | 70,421 |  |  |  | 53.9 |  |  |  | 10.8 |  |  |  |  |  |  |  | 70,427 |  |  |  | 53.9 |  |  |  | 10.8 |  |  |  |  |
Gross profit |  |  | 64,473 |  |  |  | 45.2 |  |  |  | 60,156 |  |  |  | 46.1 |  |  |  | 7.2 |  |  |  |  |  |  |  | 60,150 |  |  |  | 46.1 |  |  |  | 7.2 |  |  |  |  |
Administrative expenses |  |  | 6,485 |  |  |  | 4.6 |  |  |  | 5,935 |  |  |  | 4.5 |  |  |  | 9.3 |  |  |  |  |  |  |  | 5,942 |  |  |  | 4.6 |  |  |  | 9.1 |  |  |  |  |
Selling expenses |  |  | 37,943 |  |  |  | 26.5 |  |  |  | 36,256 |  |  |  | 27.9 |  |  |  | 4.7 |  |  |  |  |  |  |  | 36,283 |  |  |  | 27.8 |  |  |  | 4.6 |  |  |  |  |
Other operating expenses (income), net |  |  | 1,004 |  |  |  | 0.7 |  |  |  | 822 |  |  |  | 0.6 |  |  |  | 22.1 |  |  |  |  |  |  |  | 822 |  |  |  | 0.6 |  |  |  | 22.1 |  |  |  |  |
Income from operations |  |  | 19,041 |  |  |  | 13.4 |  |  |  | 17,143 |  |  |  | 13.1 |  |  |  | 11.1 |  |  |  | 9.6 |  |  |  | 17,103 |  |  |  | 13.1 |  |  |  | 11.3 |  |  |  | 9.9 |
Depreciation |  |  | 6,699 |  |  |  | 4.7 |  |  |  | 6,629 |  |  |  | 5.1 |  |  |  | 1.1 |  |  |  |  |  |  |  | 6,178 |  |  |  | 4.7 |  |  |  | 8.4 |  |  |  |  |
Amortization & other non-cash charges |  |  | 1,986 |  |  |  | 1.4 |  |  |  | 1,627 |  |  |  | 1.3 |  |  |  | 22.1 |  |  |  |  |  |  |  | 1,627 |  |  |  | 1.3 |  |  |  | 22.1 |  |  |  |  |
Operative cash flow |  |  | 27,726 |  |  |  | 19.5 |  |  |  | 25,400 |  |  |  | 19.5 |  |  |  | 9.2 |  |  |  | 7.2 |  |  |  | 24,909 |  |  |  | 19.1 |  |  |  | 11.3 |  |  |  | 9.3 |
CAPEX |  |  | 6,681 |  |  |  |  |  |  |  | 7,120 |  |  |  |  |  |  |  | (6.2 | ) |  |  |  |  |  |  | 7,120 |  |  |  |  |  |  |  | (6.2 | ) |  |  |  |

Sales volumes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Millions of unit cases) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mexico and Central America |  |  | 1,568.4 |  |  |  | 63.3 |  |  |  | 1,561.2 |  |  |  | 63.7 |  |  |  | 0.5 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
South America |  |  | 320.0 |  |  |  | 12.9 |  |  |  | 338.4 |  |  |  | 13.8 |  |  |  | (5.4 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Brazil |  |  | 590.9 |  |  |  | 23.8 |  |  |  | 550.5 |  |  |  | 22.5 |  |  |  | 7.4 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  | 2,479.3 |  |  |  | 100.0 |  |  |  | 2,450.1 |  |  |  | 100.0 |  |  |  | 1.2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

(A) Unaudited consolidated financial information. For more detail please refer to our Press Release published on april 5th, 2019.

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

October 28, 2019 |  | 17

FEMSA

Macroeconomic Information

|  | Inflation |  |  | End-of-period Exchange Rates |
|  | 3Q 2019 |  |  | LTM(1) Sep-19 |  |  | Sep-19 |  |  | Dic-18 |
|  |  |  |  |  |  |  | Per USD |  |  | Per MXN |  |  | Per USD |  |  | Per MXN |
Mexico |  |  | 0.70 | % |  |  | 2.55 | % |  |  | 19.64 |  |  |  | 1.0000 |  |  |  | 19.68 |  |  |  | 1.0000 |
Colombia |  |  | 0.35 | % |  |  | 3.72 | % |  |  | 3,462.01 |  |  |  | 0.0057 |  |  |  | 3,249.75 |  |  |  | 0.0061 |
Brazil |  |  | 0.29 | % |  |  | 3.64 | % |  |  | 4.16 |  |  |  | 4.7153 |  |  |  | 3.87 |  |  |  | 5.0797 |
Argentina |  |  | 10.07 | % |  |  | 54.58 | % |  |  | 57.59 |  |  |  | 0.3410 |  |  |  | 37.70 |  |  |  | 0.5221 |
Chile |  |  | 0.05 | % |  |  | 2.60 | % |  |  | 725.68 |  |  |  | 0.0271 |  |  |  | 695.69 |  |  |  | 0.0283 |
Euro Zone |  |  | -0.16 | % |  |  | 1.21 | % |  |  | 0.91 |  |  |  | 21.5278 |  |  |  | 0.87 |  |  |  | 22.5383 |

(1) LTM = Last twelve months.

October 28, 2019 |  | 18

Coca-Cola FEMSA Announces Results for Third Quarter and First Nine Months of 2019

Mexico City, October 25, 2019, 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 results for the third quarter and the first nine months of 2019.

THIRD QUARTER OPERATIONAL AND FINANCIAL HIGHLIGHTS

· | Volumes increased in Brazil and Central America, while remaining stable in Mexico; transactions outperformed volumes in Argentina and Brazil.
· | Revenues increased 10.3%, while comparable revenues grew 11.6%. Solid pricing, revenue management initiatives across our operations, volume growth in Brazil and Central America, and extraordinary other operating revenues related to tax reclaims in Brazil were partially offset by unfavorable currency translation effects mainly from the Argentine and Colombian Peso.
· | Operating income increased 21.4%, while comparable operating income increased 22.8%. A favorable price mix, stable raw material prices, operating expense efficiencies, and extraordinary tax effects in Brazil were partially offset by higher concentrate costs and the depreciation of all of our operating currencies as applied to our U.S. dollar-denominated raw material costs.
· | Earnings per share1 were Ps. 0.24 (Earnings per unit were Ps. 1.92 and per ADS were Ps. 19.17).

FINANCIAL SUMMARY FOR THE THIRD QUARTER AND FIRST NINE MONTHS OF 2019

Change vs. same period of last year

|  |  |  |  | Total Revenues |  | Gross Profit |  | Operating Income |  | Majority Net Income
|  |  |  |  | 3Q 2019 |  | YTD 2019 |  | 3Q 2019 |  | YTD 2019 |  | 3Q 2019 |  | YTD 2019 |  | 3Q 2019 |  | YTD 2019
|  |  | Consolidated |  |  | 10.3% |  | 9.1% |  | 7.1% |  | 7.2% |  | 21.4% |  | 11.3% |  | 23.3% |  | 23.1%
As Reported (2) |  |  | Mexico & Central America |  |  | 8.0% |  | 9.7% |  | 6.5% |  | 9.5% |  | 9.2% |  | 14.5% |  |  |  |
|  |  | South America |  |  | 13.6% |  | 8.4% |  | 7.9% |  | 3.8% |  | 43.9% |  | 6.6% |  |  |  |
|  |  | Consolidated |  |  | 11.6% |  | 11.0% |  | 7.6% |  | 8.8% |  | 22.8% |  | 15.6% |  |  |  |
Comparable (3) |  |  | Mexico & Central America |  |  | 7.9% |  | 8.2% |  | 6.4% |  | 8.0% |  | 9.1% |  | 13.5% |  |  |  |
|  |  | South America |  |  | 17.4% |  | 15.7% |  | 9.9% |  | 10.4% |  | 49.5% |  | 19.4% |  |  |  |

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

“I am encouraged by our positive operating performance across our divisions. In Mexico and Central America, our solid top-line growth was underscored by our resilient Mexico operation—where our affordability, portfolio innovation, and commercial initiatives are enabling us to drive price mix improvements—coupled with solid volume growth in Central America, driven by our improved route to market. In South America, I am pleased by the turnaround of our Brazilian operation, which continues to post solid volume performance, as it builds on two years of continuous growth. This is driven by our relentless focus on our consumers, resulting in market share gains across key categories. In addition, our Colombia operation’s single-serve affordability strategy is gaining traction as we focus on the profitability of our portfolio.

Moreover, we were selected for the Dow Jones Sustainability Emerging Markets Index, reaffirming our commitment and challenging us to continue evolving our sustainability strategy.

As we approach the final stretch of the year, we are encouraged that our fundamental transformation has a long runway, which commits us to working extensively to continue delivering value for all of our stakeholders.”

(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) | According to IFRS 5, figures for 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(3) | 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.

| Page 19 of 34 |

RECENT DEVELOPMENTS

| · | Following a favorable decision from Brazilian tax authorities, Coca-Cola FEMSA has been entitled to reclaim tax payments made in prior years in Brazil, resulting in an extraordinary positive effect on its third-quarter results, affecting mainly other operating revenues and other operating expenses, net. The total net amount of extraordinary tax effects in Brazil in the operating income is Ps. 1,139 million for the period.
| · | On October 19, 2019, Coca-Cola FEMSA announced its inclusion in the Dow Jones Sustainability Emerging Markets Index for the seventh consecutive year and its inclusion in the Dow Jones Sustainability MILA Pacific Alliance Index for the third consecutive year, confirming its sustainability commitment and leadership.
| · | On November 1, 2019, Coca-Cola FEMSA will pay the second installment of the 2018 dividend approved for Ps. 0.4425 per share (equivalent to Ps. 3.54 per unit).
| · | As of November 2019, Maria Dyla Castro, who has served as Investor Relations Director at Coca-Cola FEMSA since October 2016, took on new responsibilities as Director of Global Business Services for the Finance area.
|  | Jorge Collazo, who has been Investor Relations Manager since October 2016 and has worked in the company since 2014, has been appointed the new Head of Investor Relations.

CONFERENCE CALL INFORMATION

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 20 of 34 |

CONSOLIDATED THIRD-QUARTER RESULTS

CONSOLIDATED THIRD QUARTER RESULTS

|  | As Reported (1) |  | Comparable (2)
Expressed in millions of Mexican pesos |  | 3Q 2019 |  | 3Q 2018 |  | Δ% |  | Δ%
Total revenues |  | 48,699 |  | 44,148 |  | 10.3% |  | 11.6%
Gross profit |  | 21,667 |  | 20,237 |  | 7.1% |  | 7.6%
Operating income |  | 7,013 |  | 5,777 |  | 21.4% |  | 22.8%
Operating cash flow (3) |  | 10,069 |  | 8,492 |  | 18.6% |  | 21.2%

Volume increased 0.3% to 842.1 million unit cases, driven mainly by 5.6% growth in Brazil, 2.8% growth in Central America, and stable performance in Mexico, partially offset by volume declines in Argentina, Colombia, and Uruguay. On a comparable basis, total volumes increased 1.4%.

Total revenues increased 10.3% to Ps. 48,699 million. This figure includes extraordinary other operating revenues related to an entitlement to reclaim tax payments in Brazil. Our revenues were driven mainly by healthy pricing in Mexico, Brazil, and Colombia, revenue management initiatives across our territories, volume growth in Brazil and Central America, and a favorable mix effect driven by transactions growing ahead of volumes mainly in Brazil. These factors were partially offset by the negative translation effect resulting from the depreciation of the Argentine Peso, the Colombian Peso, the Uruguayan Peso, and the Nicaraguan Cordoba as compared to the Mexican Peso, combined with volume declines in Argentina, Colombia, and Uruguay. On a comparable basis, total revenues would have increased 11.6%.

Gross profit increased 7.1% to Ps. 21,667 million, and gross margin contracted 130 basis points to 44.5%. Lower packaging prices, stable sweetener prices mainly in Brazil, and a favorable currency hedging position in most of our operations were offset by: i) higher concentrate costs in Mexico; ii) higher concentrate costs in Brazil, related to the reduction of tax credits on concentrate purchased from the Manaus Free Trade Zone; and iii) 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 increased 7.6%.

(1) | According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(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.
(3) | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 21 of 34 |

Operating income increased 21.4% to Ps. 7,013 million, and operating margin expanded 130 basis points to 14.4%. This increase was driven mainly by operating expense efficiencies and tax reclaims in Brazil, partially offset by restructuring severance payments of Ps. 367 million related to our efficiency program and other tax-related provisions. The total net amount of extraordinary tax effects in Brazil this quarter is Ps. 1,139 million. On a comparable basis, operating income increased 22.8%.

Comprehensive financing result recorded an expense of Ps. 1,430 million, compared to an expense of Ps. 1,322 million in the same period of 2018. This increase was driven mainly by a market value loss in financial instruments recognized during the quarter. This effect was partially offset by a reduction in our interest expense, net, as compared to the same period of 2018 and a foreign exchange gain—as our cash exposure in U.S. dollars was positively impacted by the depreciation of the Mexican Peso during the third quarter of 2019.

Income tax as a percentage of income before taxes was 25.9% as compared to 31.4% during the same period of the previous year. This decrease was driven mainly by the increase in the relative weight of our Mexico operation´s profits in our consolidated results, which have a lower tax rate, coupled with certain tax efficiencies across our operations.

Net income attributable to equity holders of the company reached Ps. 4,027 million as compared to Ps. 3,266 million during the same period of the previous year. Earnings per share1 were Ps. 0.24 (Earnings per unit were Ps. 1.92, and earnings per ADS were Ps. 19.17.).

(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.

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 22 of 34 |

CONSOLIDATED FIRST NINE MONTHS RESULTS

CONSOLIDATED FIRST NINE MONTHS RESULTS

|  | As Reported (1) |  |  | Comparable (2) |
Expressed in millions of Mexican pesos |  | YTD 2019 |  |  | YTD 2018 |  |  | Δ% |  |  | Δ% |
Total revenues |  |  | 142,504 |  |  |  | 130,577 |  |  |  | 9.1 | % |  |  | 11.0 | %
Gross profit |  |  | 64,473 |  |  |  | 60,150 |  |  |  | 7.2 | % |  |  | 8.8 | %
Operating income |  |  | 19,041 |  |  |  | 17,103 |  |  |  | 11.3 | % |  |  | 15.6 | %
Operating cash flow (3) |  |  | 27,726 |  |  |  | 24,909 |  |  |  | 11.3 | % |  |  | 14.0 | %

Volume increased 1.2% to 2,479.3 million unit cases in the first nine months of 2019 as compared to the same period of 2018, driven mainly by solid growth in Brazil and the consolidation of acquired territories in Guatemala and Uruguay, partially offset by volume declines in Argentina, Colombia, and Mexico. On a comparable basis, total volumes increased 0.9%.

Total revenues increased 9.1% to Ps. 142,504 million in the first nine months of 2019 as compared to the same period of 2018. This figure includes extraordinary other operating revenues related to an entitlement to reclaim tax payments in Brazil. Total revenues were driven mainly by healthy pricing, revenue management initiatives across our territories, volume growth in Brazil, the consolidation of recently acquired territories in Guatemala and Uruguay, and a favorable mix effect driven by transactions growing ahead of volumes in Argentina, Brazil, and Central America. These factors were partially offset by the negative translation effect resulting from the depreciation of all of our operating currencies as compared to the Mexican Peso, combined with volume declines in Argentina, Colombia, and Mexico. On a comparable basis, total revenues increased 11.0%.

Gross profit increased 7.2% to Ps. 64,473 million in the first nine months of 2019 as compared to the same period of 2018, and gross margin contracted 90 basis points to 45.2%. More stable sweetener and PET prices were offset by: i) higher concentrate costs in Mexico; ii) higher concentrate costs in Brazil, related to the reduction of tax credits on concentrate purchased from the Manaus Free Trade Zone; and iii) the depreciation in the average exchange rate of all of our operating currencies as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit increased 8.8%.

(1) | According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(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.
(3) | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 23 of 34 |

Operating income increased 11.3% to Ps. 19,041 million in the first nine months of 2019 as compared to the same period of 2018, and operating margin expanded 30 basis points to 13.4%. This increase was driven mainly by operating expense efficiencies and tax reclaims in Brazil, partially offset by restructuring severance payments of Ps. 1,068 million related to our efficiency program and other tax-related provisions. On a comparable basis, operating income increased 15.6%.

Comprehensive financing result recorded an expense of Ps. 4,566 million during the first nine months of 2019 compared to an expense of Ps. 4,837 million in the same period of 2018. For this period, we had a reduction in our interest expense, net, as compared to the same period of 2018, a foreign exchange loss—as our cash exposure in U.S. dollars was negatively impacted by the appreciation of the Mexican Peso during the first nine months of 2019—and a reduction in other financial expenses.

Income tax as a percentage of income before taxes was 27.4% as compared to 31.2 % during the first nine months of the previous year. This decrease was driven mainly by the increase in the relative weight of our Mexico operation´s profits in our consolidated results, which have a lower tax rate, coupled with certain tax efficiencies across our operations.

Net income attributable to equity holders of the company reached Ps. 10,095 million in the first nine months of 2019 as compared to Ps. 8,201 million during the same period of the previous year. Earnings per share1 were Ps. 0.60 (Earnings per unit were Ps. 4.81, and earnings per ADS were Ps. 48.05.).

(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 3Q2019 Results October 25, 2019 | Page 24 of 34 |

MEXICO & CENTRAL AMERICA DIVISION THIRD QUARTER RESULTS

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

MEXICO & CENTRAL AMERICA DIVISION RESULTS

|  | As Reported (1) |  |  | Comparable (2) |
Expressed in millions of Mexican pesos |  | 3Q 2019 |  |  | 3Q 2018 |  |  | Δ% |  |  | Δ% |
Total revenues |  |  | 28,166 |  |  |  | 26,069 |  |  |  | 8.0 | % |  |  | 7.9 | %
Gross profit |  |  | 13,388 |  |  |  | 12,566 |  |  |  | 6.5 | % |  |  | 6.4 | %
Operating income |  |  | 4,095 |  |  |  | 3,750 |  |  |  | 9.2 | % |  |  | 9.1 | %
Operating cash flow (3) |  |  | 5,922 |  |  |  | 5,402 |  |  |  | 9.6 | % |  |  | 9.5 | %

Volume increased 0.3% to 535.7 million unit cases, driven by solid volume growth in Guatemala and Costa Rica and stable performance in Mexico, partially offset by volume declines in Nicaragua and Panama.

Total revenues increased 8.0% to Ps. 28,166 million, driven by pricing ahead of inflation in Mexico, coupled with volume growth in Guatemala and Costa Rica and stable volumes in Mexico. These effects were partially offset by volume declines in Nicaragua and Panama and a slightly unfavorable mix driven by volumes outperforming transactions. On a comparable basis, total revenues increased 7.9%.

Gross profit increased 6.5% to Ps. 13,388 million, and gross profit margin contracted 70 basis points to 47.5% driven mainly by our pricing initiatives and lower PET costs. These factors were partially offset by higher concentrate costs in Mexico and an unfavorable currency hedging position. On a comparable basis, gross profit increased 6.4%.

Operating income increased 9.2% to Ps. 4,095 million in the third quarter of 2019, and operating income margin expanded 10 basis points to 14.5% during the period, driven mainly by operating expense efficiencies offset by restructuring severance payments of Ps. 207 million related to our efficiency program. On a comparable basis, operating income increased 9.1%.

(1) | According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(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.
(3) | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 25 of 34 |

SOUTH AMERICA DIVISION THIRD QUARTER RESULTS

(Brazil, Argentina, Colombia, and Uruguay) |

SOUTH AMERICA DIVISION RESULTS

|  | As Reported (1) |  |  | Comparable (2) |
Expressed in millions of Mexican pesos |  | 3Q 2019 |  |  | 3Q 2018 |  |  | Δ% |  |  | Δ% |
Total revenues |  |  | 20,533 |  |  |  | 18,079 |  |  |  | 13.6 | % |  |  | 17.4 | %
Gross profit |  |  | 8,279 |  |  |  | 7,671 |  |  |  | 7.9 | % |  |  | 9.9 | %
Operating income |  |  | 2,918 |  |  |  | 2,028 |  |  |  | 43.9 | % |  |  | 49.5 | %
Operating cash flow (3) |  |  | 4,147 |  |  |  | 3,090 |  |  |  | 34.2 | % |  |  | 44.4 | %

Volume increased 0.4% to 306.4 million unit cases, driven by strong volume growth of 5.6% in Brazil, partially offset by volume declines in Argentina, Colombia, and Uruguay. On a comparable basis, volume grew 3.7%.

Total revenues increased 13.6% to Ps. 20,533 million. This figure includes extraordinary other operating revenues related to an entitlement to reclaim tax payments in Brazil. Revenues were driven mainly by strong volume growth in Brazil, pricing ahead of inflation in Brazil, and a favorable mix effect driven by transactions outperforming volumes in Argentina and Brazil. These factors were partially offset by volume contractions in Argentina, Colombia, and Uruguay, coupled with an unfavorable currency translation effect resulting from the depreciation of the Argentine Peso, Colombian Peso, and Uruguayan Peso as compared to the Mexican Peso. On a comparable basis, total revenues increased 17.4%.

Gross profit increased 7.9% to Ps. 8,279 million, and gross profit margin contracted 210 basis points to 40.3%. This is a result of our revenue management initiatives, a favorable currency hedging position, combined with lower PET prices in the division, and lower sweetener prices mainly in Brazil. These factors were partially offset by higher concentrate costs in Brazil related to the reduction of tax credits on concentrate purchased from the Manaus free trade zone, and the depreciation of the average exchange rate of all our local currencies in the division as applied to our U.S. dollar-denominated raw material costs. On a comparable basis, gross profit increased 9.9%.

Operating income increased 43.9% to Ps. 2,918 million in the third quarter of 2019, resulting in a margin expansion of 300 basis points to 14.2%. This result includes operating expense efficiencies and tax reclaims in Brazil, partially offset by a decline in Argentina´s top line and restructuring severance payments of Ps. 160 million related to our efficiency program and other tax-related provisions. The total net amount of extraordinary tax effects in Brazil this quarter is Ps. 1,139 million. On a comparable basis, operating income increased 49.5%.

(1) | According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.
(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.
(3) | Operating cash flow = operating income + depreciation + amortization & other operating non-cash charges.

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 26 of 34 |

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, we are including the term “Comparable.” This means, with respect to a year-over-year comparison, the change of a given measure excluding the effects of: (i) mergers, acquisitions, and divestitures, including acquisitions made in Guatemala and Uruguay as of May and July 2018, respectively; (ii) translation effects resulting from exchange rate movements; and (iii) the results of hyperinflationary subsidiaries in both periods: Argentina’s results from 2019 and 2018. In preparing this measure, management has used its best judgment, estimates, and assumptions in order to maintain comparability. The relation between our reported and comparable figures is described in the following chart:

*Reported 2018 figures reflect the Philippines as a discontinued operation.

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 27 of 34 |

ABOUT THE COMPANY

Stock listing information: Mexican Stock Exchange, Ticker: KOF UBL | NYSE (ADS), Ticker: KOF | Ratio of KOF UBL 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 131 brands to a population of more than 257 million. With over 83 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 275 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)

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 28 of 34 |

COCA-COLA FEMSA

CONSOLIDATED INCOME STATEMENT

Millions of Pesos (1)

|  | For the Third Quarter of: |  |  | For the First Nine Months of: |
|  | 2019 |  |  | % of Rev. |  |  | 2018 (4) |  |  | % of Rev. |  |  | Δ% Reported |  |  | Δ% Comparable (8) |  |  | 2019 |  |  | % of Rev. |  |  | 2018 (4) |  |  | % of Rev. |  |  | Δ% Reported |  |  | Δ% Comparable (8) |
Transactions (million transactions) |  |  | 5,037.8 |  |  |  |  |  |  |  | 4,973.1 |  |  |  |  |  |  |  | 1.3 | % |  |  | 2.1 | % |  |  | 14,888.0 |  |  |  |  |  |  |  | 14,539.0 |  |  |  |  |  |  |  | 2.4 | % |  |  | 1.5 | %
Volume (million unit cases) |  |  | 842.1 |  |  |  |  |  |  |  | 839.2 |  |  |  |  |  |  |  | 0.3 | % |  |  | 1.4 | % |  |  | 2,479.3 |  |  |  |  |  |  |  | 2,450.1 |  |  |  |  |  |  |  | 1.2 | % |  |  | 0.9 | %
Average price per unit case |  |  | 52.09 |  |  |  |  |  |  |  | 48.95 |  |  |  |  |  |  |  | 6.4 | % |  |  |  |  |  |  | 52.32 |  |  |  |  |  |  |  | 49.34 |  |  |  |  |  |  |  | 6.0 | % |  |  |  |
Net revenues |  |  | 47,294 |  |  |  |  |  |  |  | 44,012 |  |  |  |  |  |  |  | 7.5 | % |  |  |  |  |  |  | 140,571 |  |  |  |  |  |  |  | 130,252 |  |  |  |  |  |  |  | 7.9 | % |  |  |  |
Other operating revenues |  |  | 1,404 |  |  |  |  |  |  |  | 136 |  |  |  |  |  |  |  | 929.6 | % |  |  |  |  |  |  | 1,933 |  |  |  |  |  |  |  | 325 |  |  |  |  |  |  |  | 494.5 | % |  |  |  |
Total revenues (2) |  |  | 48,699 |  |  |  | 100.0 | % |  |  | 44,148 |  |  |  | 100.0 | % |  |  | 10.3 | % |  |  | 11.6 | % |  |  | 142,504 |  |  |  | 100.0 | % |  |  | 130,577 |  |  |  | 100.0 | % |  |  | 9.1 | % |  |  | 11.0 | %
Cost of goods sold |  |  | 27,032 |  |  |  | 55.5 | % |  |  | 23,911 |  |  |  | 54.2 | % |  |  | 13.0 | % |  |  |  |  |  |  | 78,030 |  |  |  | 54.8 | % |  |  | 70,427 |  |  |  | 53.9 | % |  |  | 10.8 | % |  |  |  |
Gross profit |  |  | 21,667 |  |  |  | 44.5 | % |  |  | 20,237 |  |  |  | 45.8 | % |  |  | 7.1 | % |  |  | 7.6 | % |  |  | 64,473 |  |  |  | 45.2 | % |  |  | 60,150 |  |  |  | 46.1 | % |  |  | 7.2 | % |  |  | 8.8 | %
Operating expenses |  |  | 14,703 |  |  |  | 30.2 | % |  |  | 14,256 |  |  |  | 32.3 | % |  |  | 3.1 | % |  |  |  |  |  |  | 44,429 |  |  |  | 31.2 | % |  |  | 42,225 |  |  |  | 32.3 | % |  |  | 5.2 | % |  |  |  |
Other operative expenses, net |  |  | (63 | ) |  |  | -0.1 | % |  |  | 118 |  |  |  | 0.3 | % |  |  | NA |  |  |  |  |  |  |  | 895 |  |  |  | 0.6 | % |  |  | 621 |  |  |  | 0.5 | % |  |  | 44.1 | % |  |  |  |
Operative equity method (gain) loss in associates(3) |  |  | 15 |  |  |  | 0.0 | % |  |  | 85 |  |  |  | 0.2 | % |  |  | -82.6 | % |  |  |  |  |  |  | 109 |  |  |  | 0.1 | % |  |  | 201 |  |  |  | 0.2 | % |  |  | -45.6 | % |  |  |  |
Operating income (6) |  |  | 7,013 |  |  |  | 14.4 | % |  |  | 5,777 |  |  |  | 13.1 | % |  |  | 21.4 | % |  |  | 22.8 | % |  |  | 19,041 |  |  |  | 13.4 | % |  |  | 17,103 |  |  |  | 13.1 | % |  |  | 11.3 | % |  |  | 15.6 | %
Other non operative expenses, net |  |  | 2 |  |  |  | 0.0 | % |  |  | 95 |  |  |  | 0.2 | % |  |  | NA |  |  |  |  |  |  |  | 75 |  |  |  | 0.1 | % |  |  | 216 |  |  |  | 0.2 | % |  |  | -65.4 | % |  |  |  |
Non Operative equity method (gain) loss in associates (5) |  |  | 16 |  |  |  | 0.0 | % |  |  | (34 | ) |  |  | -0.1 | % |  |  | NA |  |  |  |  |  |  |  | (14 | ) |  |  | 0.0 | % |  |  | (40 | ) |  |  | 0.0 | % |  |  | NA |  |  |  |  |
Interest expense |  |  | 1,786 |  |  |  |  |  |  |  | 1,834 |  |  |  |  |  |  |  | -2.6 | % |  |  |  |  |  |  | 5,235 |  |  |  |  |  |  |  | 5,461 |  |  |  |  |  |  |  | -4.1 | % |  |  |  |
Interest income |  |  | 365 |  |  |  |  |  |  |  | 276 |  |  |  |  |  |  |  | 32.3 | % |  |  |  |  |  |  | 907 |  |  |  |  |  |  |  | 702 |  |  |  |  |  |  |  | 29.3 | % |  |  |  |
Interest expense, net |  |  | 1,421 |  |  |  |  |  |  |  | 1,558 |  |  |  |  |  |  |  | -8.8 | % |  |  |  |  |  |  | 4,328 |  |  |  |  |  |  |  | 4,759 |  |  |  |  |  |  |  | -9.1 | % |  |  |  |
Foreign exchange loss (gain) |  |  | (38 | ) |  |  |  |  |  |  | (60 | ) |  |  |  |  |  |  | NA |  |  |  |  |  |  |  | 166 |  |  |  |  |  |  |  | (51 | ) |  |  |  |  |  |  | NA |  |  |  |  |
Loss (gain) on monetary position in inflationary subsidiries |  |  | (103 | ) |  |  |  |  |  |  | (117 | ) |  |  |  |  |  |  | NA |  |  |  |  |  |  |  | (78 | ) |  |  |  |  |  |  | (117 | ) |  |  |  |  |  |  | NA |  |  |  |  |
Market value (gain) loss on financial instruments |  |  | 150 |  |  |  |  |  |  |  | (59 | ) |  |  |  |  |  |  | NA |  |  |  |  |  |  |  | 150 |  |  |  |  |  |  |  | 246 |  |  |  |  |  |  |  | NA |  |  |  |  |
Comprehensive financing result |  |  | 1,430 |  |  |  |  |  |  |  | 1,322 |  |  |  |  |  |  |  | 8.1 | % |  |  |  |  |  |  | 4,566 |  |  |  |  |  |  |  | 4,837 |  |  |  |  |  |  |  | -5.6 | % |  |  |  |
Income before taxes |  |  | 5,564 |  |  |  |  |  |  |  | 4,394 |  |  |  |  |  |  |  | 26.6 | % |  |  |  |  |  |  | 14,415 |  |  |  |  |  |  |  | 12,091 |  |  |  |  |  |  |  | 19.2 | % |  |  |  |
Income taxes |  |  | 1,439 |  |  |  |  |  |  |  | 1,382 |  |  |  |  |  |  |  | 4.2 | % |  |  |  |  |  |  | 3,953 |  |  |  |  |  |  |  | 3,773 |  |  |  |  |  |  |  | 4.8 | % |  |  |  |
Result of discontinued operations |  |  | - |  |  |  |  |  |  |  | 410 |  |  |  |  |  |  |  | NA |  |  |  |  |  |  |  | - |  |  |  |  |  |  |  | 576 |  |  |  |  |  |  |  | NA |  |  |  |  |
Consolidated net income |  |  | 4,125 |  |  |  |  |  |  |  | 3,422 |  |  |  |  |  |  |  | 20.5 | % |  |  |  |  |  |  | 10,462 |  |  |  |  |  |  |  | 8,894 |  |  |  |  |  |  |  | 17.6 | % |  |  |  |
Net income attributable to equity holders of the company |  |  | 4,027 |  |  |  | 8.3 | % |  |  | 3,266 |  |  |  | 7.4 | % |  |  | 23.3 | % |  |  |  |  |  |  | 10,095 |  |  |  | 7.1 | % |  |  | 8,201 |  |  |  | 6.3 | % |  |  | 23.1 | % |  |  |  |
Non-controlling interest |  |  | 98 |  |  |  | 0.2 | % |  |  | 156 |  |  |  | 0.4 | % |  |  | -37.0 | % |  |  |  |  |  |  | 367 |  |  |  | 0.3 | % |  |  | 693 |  |  |  | 0.5 | % |  |  | -47.0 | % |  |  |  |

Operating Cash Flow & CAPEX |  | 2019 |  |  | % of Rev. |  |  | 2018 (4) |  |  | % of Rev. |  |  | Δ% Reported |  |  | Δ% Comparable (8) |  |  | 2019 |  |  | % of Rev. |  |  | 2018 (4) |  |  | % of Rev. |  |  | Δ% Reported |  |  | Δ% Comparable (8) |
Operating income (6) |  |  | 7,013 |  |  |  | 14.4 | % |  |  | 5,777 |  |  |  | 13.1 | % |  |  | 21.4 | % |  |  |  |  |  |  | 19,041 |  |  |  | 13.4 | % |  |  | 17,103 |  |  |  | 13.1 | % |  |  | 11.3 | % |  |  |  |
Depreciation |  |  | 2,251 |  |  |  |  |  |  |  | 2,190 |  |  |  |  |  |  |  | 2.8 | % |  |  |  |  |  |  | 6,699 |  |  |  |  |  |  |  | 6,178 |  |  |  |  |  |  |  | 8.4 | % |  |  |  |
Amortization and other operative non-cash charges |  |  | 805 |  |  |  |  |  |  |  | 524 |  |  |  |  |  |  |  | 53.6 | % |  |  |  |  |  |  | 1,986 |  |  |  |  |  |  |  | 1,627 |  |  |  |  |  |  |  | 22.0 | % |  |  |  |
Operating cash flow (6)(7) |  |  | 10,069 |  |  |  | 20.7 | % |  |  | 8,492 |  |  |  | 19.2 | % |  |  | 18.6 | % |  |  | 21.2 | % |  |  | 27,726 |  |  |  | 19.5 | % |  |  | 24,909 |  |  |  | 19.1 | % |  |  | 11.3 | % |  |  | 14.0 | %
CAPEX |  |  | 2,772 |  |  |  |  |  |  |  | 3,103 |  |  |  |  |  |  |  | -10.7 |  |  |  |  |  |  |  | 6,681 |  |  |  |  |  |  |  | 7,120 |  |  |  |  |  |  |  | -6.2 |  |  |  |  |

(1) Except volume and average price per unit case figures.

(2) Please refer to pages 14 and 15 for revenue breakdown.

(3) Includes equity method in Jugos del Valle, Leao Alimentos, and Estrella Azul, among others.

(4) According to IFRS 5, figures from 2018 do not include the Philippines as it is presented as a discontinued operation as of January 1, 2018.

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

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

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

(8) 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 3Q2019 Results October 25, 2019 | Page 29 of 34 |

MEXICO & CENTRAL AMERICA DIVISION

RESULTS OF OPERATIONS

Millions of Pesos (1)

|  | For the Third Quarter of: |  |  | For the First Nine Months of: |
|  | 2019 |  |  | % of Rev. |  |  | 2018 |  |  | % of Rev. |  |  | Δ% Reported |  |  | Δ% Comparable (6) |  |  | 2019 |  |  | % of Rev. |  |  | 2018 |  |  | % of Rev. |  |  | Δ% Reported |  |  | Δ% Comparable (6) |
Transactions (million transactions) |  |  | 2,946.3 |  |  |  |  |  |  |  | 2,953.8 |  |  |  |  |  |  |  | -0.3 | % |  |  | -0.3 | % |  |  | 8,695.3 |  |  |  |  |  |  |  | 8,700.0 |  |  |  |  |  |  |  | -0.1 | % |  |  | -1.8 | %
Volume (million unit cases) |  |  | 535.7 |  |  |  |  |  |  |  | 534.1 |  |  |  |  |  |  |  | 0.3 | % |  |  | 0.3 | % |  |  | 1,568.4 |  |  |  |  |  |  |  | 1,561.2 |  |  |  |  |  |  |  | 0.5 | % |  |  | -0.8 | %
Average price per unit case |  |  | 52.53 |  |  |  |  |  |  |  | 48.78 |  |  |  |  |  |  |  | 7.7 | % |  |  |  |  |  |  | 52.24 |  |  |  |  |  |  |  | 47.85 |  |  |  |  |  |  |  | 9.2 | % |  |  |  |
Net revenues |  |  | 28,144 |  |  |  |  |  |  |  | 26,056 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 81,933 |  |  |  |  |  |  |  | 74,708 |  |  |  |  |  |  |  |  |  |  |  |  |
Other operating revenues |  |  | 22 |  |  |  |  |  |  |  | 13 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 64 |  |  |  |  |  |  |  | 30 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Revenues (2) |  |  | 28,166 |  |  |  | 100.0 | % |  |  | 26,069 |  |  |  | 100.0 | % |  |  | 8.0 | % |  |  | 7.9 | % |  |  | 81,996 |  |  |  | 100.0 | % |  |  | 74,738 |  |  |  | 100.0 | % |  |  | 9.7 | % |  |  | 8.2 | %
Cost of goods sold |  |  | 14,778 |  |  |  | 52.5 | % |  |  | 13,503 |  |  |  | 51.8 | % |  |  |  |  |  |  |  |  |  |  | 42,662 |  |  |  | 52.0 | % |  |  | 38,808 |  |  |  | 51.9 | % |  |  |  |  |  |  |  |
Gross profit |  |  | 13,388 |  |  |  | 47.5 | % |  |  | 12,566 |  |  |  | 48.2 | % |  |  | 6.5 | % |  |  | 6.4 | % |  |  | 39,334 |  |  |  | 48.0 | % |  |  | 35,930 |  |  |  | 48.1 | % |  |  | 9.5 | % |  |  | 8.0 | %
Operating expenses |  |  | 8,949 |  |  |  | 31.8 | % |  |  | 8,748 |  |  |  | 33.6 | % |  |  |  |  |  |  |  |  |  |  | 26,634 |  |  |  | 32.5 | % |  |  | 25,334 |  |  |  | 33.9 | % |  |  |  |  |  |  |  |
Other operative expenses, net |  |  | 300 |  |  |  | 1.1 | % |  |  | (31 | ) |  |  | -0.1 | % |  |  |  |  |  |  |  |  |  |  | 834 |  |  |  | 1.0 | % |  |  | 141 |  |  |  | 0.2 | % |  |  |  |  |  |  |  |
Operative equity method (gain) loss in associates (3) |  |  | 45 |  |  |  | 0.2 | % |  |  | 99 |  |  |  | 0.4 | % |  |  |  |  |  |  |  |  |  |  | 168 |  |  |  | 0.2 | % |  |  | 243 |  |  |  | 0.3 | % |  |  |  |  |  |  |  |
Operating income (4) |  |  | 4,095 |  |  |  | 14.5 | % |  |  | 3,750 |  |  |  | 14.4 | % |  |  | 9.2 | % |  |  | 9.1 | % |  |  | 11,698 |  |  |  | 14.3 | % |  |  | 10,212 |  |  |  | 13.7 | % |  |  | 14.5 | % |  |  | 13.5 | %
Depreciation, amortization & other operating non-cash charges |  |  | 1,827 |  |  |  | 6.5 | % |  |  | 1,653 |  |  |  | 6.3 | % |  |  |  |  |  |  |  |  |  |  | 5,281 |  |  |  | 6.4 | % |  |  | 4,900 |  |  |  | 6.6 | % |  |  |  |  |  |  |  |
Operating cash flow (4)(5) |  |  | 5,922 |  |  |  | 21.0 | % |  |  | 5,402 |  |  |  | 20.7 | % |  |  | 9.6 | % |  |  | 9.5 | % |  |  | 16,979 |  |  |  | 20.7 | % |  |  | 15,112 |  |  |  | 20.2 | % |  |  | 12.4 | % |  |  | 11.0 | %

(1) Except volume and average price per unit case figures.

(2) Please refer to pages 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 Third Quarter of: |  |  | For the First Nine Months of: |
|  | 2019 |  |  | % of Rev. |  |  | 2018 |  |  | % of Rev. |  |  | Δ% Reported |  |  | Δ% Comparable (6) |  |  | 2019 |  |  | % of Rev. |  |  | 2018 |  |  | % of Rev. |  |  | Δ% Reported |  |  | Δ% Comparable (6) |
Transactions (million transactions) |  |  | 2,091.4 |  |  |  |  |  |  |  | 2,019.3 |  |  |  |  |  |  |  | 3.6 | % |  |  | 5.9 | % |  |  | 6,192.6 |  |  |  |  |  |  |  | 5,838.9 |  |  |  |  |  |  |  | 6.1 | % |  |  | 7.1 | %
Volume (million unit cases) |  |  | 306.4 |  |  |  |  |  |  |  | 305.1 |  |  |  |  |  |  |  | 0.4 | % |  |  | 3.7 | % |  |  | 910.9 |  |  |  |  |  |  |  | 888.9 |  |  |  |  |  |  |  | 2.5 | % |  |  | 4.5 | %
Average price per unit case |  |  | 51.31 |  |  |  |  |  |  |  | 49.25 |  |  |  |  |  |  |  | 4.2 | % |  |  |  |  |  |  | 52.47 |  |  |  |  |  |  |  | 51.96 |  |  |  |  |  |  |  | 1.0 | % |  |  |  |
Net revenues |  |  | 19,151 |  |  |  |  |  |  |  | 17,955 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 58,638 |  |  |  |  |  |  |  | 55,544 |  |  |  |  |  |  |  |  |  |  |  |  |
Other operating revenues |  |  | 1,382 |  |  |  |  |  |  |  | 124 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,869 |  |  |  |  |  |  |  | 295 |  |  |  |  |  |  |  |  |  |  |  |  |
Total Revenues (2) |  |  | 20,533 |  |  |  | 100.0 | % |  |  | 18,079 |  |  |  | 100.0 | % |  |  | 13.6 | % |  |  | 17.4 | % |  |  | 60,507 |  |  |  | 100.0 | % |  |  | 55,839 |  |  |  | 100.0 | % |  |  | 8.4 | % |  |  | 15.7 | %
Cost of goods sold |  |  | 12,254 |  |  |  | 59.7 | % |  |  | 10,408 |  |  |  | 57.6 | % |  |  |  |  |  |  |  |  |  |  | 35,369 |  |  |  | 58.5 | % |  |  | 31,619 |  |  |  | 56.6 | % |  |  |  |  |  |  |  |
Gross profit |  |  | 8,279 |  |  |  | 40.3 | % |  |  | 7,671 |  |  |  | 42.4 | % |  |  | 7.9 | % |  |  | 9.9 | % |  |  | 25,139 |  |  |  | 41.5 | % |  |  | 24,220 |  |  |  | 43.4 | % |  |  | 3.8 | % |  |  | 10.4 | %
Operating expenses |  |  | 5,754 |  |  |  | 28.0 | % |  |  | 5,507 |  |  |  | 30.5 | % |  |  |  |  |  |  |  |  |  |  | 17,794 |  |  |  | 29.4 | % |  |  | 16,891 |  |  |  | 30.3 | % |  |  |  |  |  |  |  |
Other operative expenses, net |  |  | (363 | ) |  |  | -1.8 | % |  |  | 150 |  |  |  | 0.8 | % |  |  |  |  |  |  |  |  |  |  | 60 |  |  |  | 0.1 | % |  |  | 480 |  |  |  | 0.9 | % |  |  |  |  |  |  |  |
Operative equity method (gain) loss in associates (3) |  |  | (30 | ) |  |  | -0.1 | % |  |  | (14 | ) |  |  | -0.1 | % |  |  |  |  |  |  |  |  |  |  | (58 | ) |  |  | -0.1 | % |  |  | (42 | ) |  |  | -0.1 | % |  |  |  |  |  |  |  |
Operating income (4) |  |  | 2,918 |  |  |  | 14.2 | % |  |  | 2,028 |  |  |  | 11.2 | % |  |  | 43.9 | % |  |  | 49.5 | % |  |  | 7,343 |  |  |  | 12.1 | % |  |  | 6,891 |  |  |  | 12.3 | % |  |  | 6.6 | % |  |  | 19.4 | %
Depreciation, amortization & other operating non-cash charges |  |  | 1,229 |  |  |  | 6.0 | % |  |  | 1,062 |  |  |  | 5.9 | % |  |  |  |  |  |  |  |  |  |  | 3,404 |  |  |  | 5.6 | % |  |  | 2,906 |  |  |  | 5.2 | % |  |  |  |  |  |  |  |
Operating cash flow (4)(5) |  |  | 4,147 |  |  |  | 20.2 | % |  |  | 3,090 |  |  |  | 17.1 | % |  |  | 34.2 | % |  |  | 44.4 | % |  |  | 10,747 |  |  |  | 17.8 | % |  |  | 9,797 |  |  |  | 17.5 | % |  |  | 9.7 | % |  |  | 19.6 | %

(1) | Except volume and average price per unit case figures.
(2) | Please refer to pages 14 and 15 for revenue breakdown.
(3) | Includes equity method in Leao 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 3Q2019 Results October 25, 2019 | Page 30 of 34 |

COCA-COLA FEMSA

CONSOLIDATED BALANCE SHEET

Millions of Pesos

|  | Sep-19 |  |  | Dec-18 |  |  | % Var. |
Assets |  |  |  |  |  |  |  |  |
Current Assets |  |  |  |  |  |  |  |  |  |  |  |
Cash, cash equivalents and marketable securities |  |  | 30,230 |  |  |  | 23,727 |  |  |  | 27 | %
Total accounts receivable |  |  | 10,951 |  |  |  | 14,847 |  |  |  | -26 | %
Inventories |  |  | 9,658 |  |  |  | 10,051 |  |  |  | -4 | %
Other current assets |  |  | 11,170 |  |  |  | 8,865 |  |  |  | 26 | %
Total current assets |  |  | 62,008 |  |  |  | 57,490 |  |  |  | 8 | %
Non-Current Assets |  |  |  |  |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | 106,184 |  |  |  | 106,259 |  |  |  | 0 | %
Accumulated depreciation |  |  | (46,779 | ) |  |  | (44,316 | ) |  |  | 6 | %
Total property, plant and equipment, net |  |  | 59,406 |  |  |  | 61,942 |  |  |  | -4 | %
Right of use assets |  |  | 1,357 |  |  |  | - |  |  |  | NA |
Investment in shares |  |  | 10,587 |  |  |  | 10,518 |  |  |  | 1 | %
Intangible assets and other assets |  |  | 112,464 |  |  |  | 116,804 |  |  |  | -4 | %
Other non-current assets |  |  | 16,875 |  |  |  | 17,033 |  |  |  | -1 | %
Total Assets |  |  | 262,697 |  |  |  | 263,788 |  |  |  | -0.4 | %

|  | Sep-19 |  |  | Dec-18 |  |  | % Var. |
Liabilities & Equity |  |  |  |  |  |  |  |  |
Current Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Short-term bank loans and notes payable |  |  | 16,699 |  |  |  | 11,604 |  |  |  | 44 | %
Suppliers |  |  | 17,712 |  |  |  | 19,746 |  |  |  | -10 | %
Short-term leasing Liabilities |  |  | 471 |  |  |  | - |  |  |  |  |
Other current liabilities |  |  | 21,405 |  |  |  | 14,174 |  |  |  | 51 | %
Total current liabilities |  |  | 56,286 |  |  |  | 45,524 |  |  |  | 24 | %
Non-Current Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Long-term bank loans and notes payable |  |  | 59,834 |  |  |  | 70,201 |  |  |  | -15 | %
Long Term Leasing Liabilities |  |  | 913 |  |  |  | - |  |  |  |  |
Other long-term liabilities |  |  | 15,964 |  |  |  | 16,313 |  |  |  | -2 | %
Total liabilities |  |  | 132,997 |  |  |  | 132,037 |  |  |  | 1 | %
Equity |  |  |  |  |  |  |  |  |  |  |  |
Non-controlling interest |  |  | 6,659 |  |  |  | 6,807 |  |  |  | -2 | %
Total controlling interest |  |  | 123,041 |  |  |  | 124,943 |  |  |  | -2 | %
Total equity |  |  | 129,700 |  |  |  | 131,750 |  |  |  | -2 | %
Total Liabilities and Equity |  |  | 262,697 |  |  |  | 263,788 |  |  |  | -0.4 | %

|  | September 30, 2019 |
Debt Mix |  | % Total Debt (1) |  |  | % Interest Rate Floating (1) (2) |  |  | Average Rate |
Currency |  |  |  |  |  |  |  |  |
Mexican Pesos |  |  | 64.2 | % |  |  | 26.5 | % |  |  | 8.4 | %
U.S. Dollars |  |  | 9.2 | % |  |  | 0.0 | % |  |  | 3.9 | %
Colombian Pesos |  |  | 1.6 | % |  |  | 100.0 | % |  |  | 5.2 | %
Brazilian Reals |  |  | 23.0 | % |  |  | 1.9 | % |  |  | 8.3 | %
Uruguayan Pesos |  |  | 1.8 | % |  |  | 0.0 | % |  |  | 9.7 | %
Argentine Pesos |  |  | 0.2 | % |  |  | 20.0 | % |  |  | 65.9 | %
Total Debt |  |  | 100 | % |  |  | 12.2 | % |  |  | 8.1 | %

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

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

Financial Ratios |  | LTM 2019 |  |  | FY 2018 |  |  | Δ% |
Net debt including effect of hedges (1)(3) |  |  | 44,455 |  |  |  | 56,934 |  |  |  | -6.5 | %
Net debt including effect of hedges / Operating cash flow (1)(3) |  |  | 1.17 |  |  |  | 1.61 |  |  |  |  |
Operating cash flow/ Interest expense, net (1) |  |  | 6.41 |  |  |  | 5.40 |  |  |  |  |
Capitalization (2) |  |  | 40.4 | % |  |  | 40.5 | % |  |  |  |

(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 3Q2019 Results October 25, 2019 | Page 31 of 34 |

COCA-COLA FEMSA

QUARTERLY- VOLUME, TRANSACTIONS & REVENUES

Volume |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | 3Q 2019 |  |  |  | 3Q 2018 (3) |  |  |  | YoY |
|  |  | Sparkling |  |  |  | Water (1) |  |  |  | Bulk (2) |  |  |  | Stills |  |  |  | Total |  |  |  | Sparkling |  |  |  | Water (1) |  |  |  | Bulk (2) |  |  |  | Stills |  |  |  | Total |  |  |  | Δ % |
Mexico |  |  | 351.8 |  |  |  | 23.3 |  |  |  | 72.8 |  |  |  | 29.6 |  |  |  | 477.5 |  |  |  | 349.1 |  |  |  | 25.9 |  |  |  | 72.0 |  |  |  | 30.6 |  |  |  | 477.6 |  |  |  | 0.0 | %
Central America |  |  | 50.1 |  |  |  | 2.9 |  |  |  | 0.1 |  |  |  | 5.1 |  |  |  | 58.2 |  |  |  | 48.4 |  |  |  | 2.7 |  |  |  | 0.1 |  |  |  | 5.3 |  |  |  | 56.6 |  |  |  | 2.8 | %
Mexico and Central America |  |  | 401.9 |  |  |  | 26.2 |  |  |  | 73.0 |  |  |  | 34.6 |  |  |  | 535.7 |  |  |  | 397.5 |  |  |  | 28.6 |  |  |  | 72.1 |  |  |  | 35.9 |  |  |  | 534.1 |  |  |  | 0.3 | %
Colombia |  |  | 53.4 |  |  |  | 6.6 |  |  |  | 5.0 |  |  |  | 3.9 |  |  |  | 68.9 |  |  |  | 53.3 |  |  |  | 6.7 |  |  |  | 5.1 |  |  |  | 4.4 |  |  |  | 69.5 |  |  |  | -0.8 | %
Brazil |  |  | 170.3 |  |  |  | 11.2 |  |  |  | 1.8 |  |  |  | 11.9 |  |  |  | 195.2 |  |  |  | 162.3 |  |  |  | 10.0 |  |  |  | 1.6 |  |  |  | 11.0 |  |  |  | 184.9 |  |  |  | 5.6 | %
Argentina |  |  | 26.7 |  |  |  | 3.2 |  |  |  | 0.9 |  |  |  | 2.2 |  |  |  | 33.0 |  |  |  | 34.1 |  |  |  | 3.9 |  |  |  | 0.9 |  |  |  | 2.5 |  |  |  | 41.4 |  |  |  | -20.2 | %
Uruguay |  |  | 8.5 |  |  |  | 0.7 |  |  |  | - |  |  |  | 0.1 |  |  |  | 9.3 |  |  |  | 8.7 |  |  |  | 0.6 |  |  |  | - |  |  |  | 0.0 |  |  |  | 9.4 |  |  |  | -0.8 | %
South America |  |  | 258.9 |  |  |  | 21.7 |  |  |  | 7.8 |  |  |  | 18.0 |  |  |  | 306.4 |  |  |  | 258.4 |  |  |  | 21.1 |  |  |  | 7.6 |  |  |  | 18.0 |  |  |  | 305.1 |  |  |  | 0.4 | %
TOTAL |  |  | 660.8 |  |  |  | 47.9 |  |  |  | 80.7 |  |  |  | 52.7 |  |  |  | 842.1 |  |  |  | 656.0 |  |  |  | 49.7 |  |  |  | 79.7 |  |  |  | 53.8 |  |  |  | 839.2 |  |  |  | 0.3 | %

(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

|  |  | 3Q 2019 |  |  |  | 3Q 2018 (3) |  | YoY
|  |  | Sparkling |  |  |  | Water |  |  |  |  |  |  |  | Stills |  |  |  | Total |  |  |  | Sparkling |  |  |  | Water |  |  |  |  |  |  |  | Stills |  |  | Total |  | Δ %
Mexico |  |  | 2,061.0 |  |  |  | 150.6 |  |  |  |  |  |  |  | 249.2 |  |  |  | 2,460.9 |  |  |  | 2,042.4 |  |  |  | 192.6 |  |  |  |  |  |  |  | 242.2 |  |  | 2,477.2 |  | -0.7%
Central America |  |  | 404.1 |  |  |  | 22.7 |  |  |  |  |  |  |  | 58.7 |  |  |  | 485.4 |  |  |  | 393.0 |  |  |  | 20.9 |  |  |  |  |  |  |  | 62.7 |  |  | 476.6 |  | 1.8%
Mexico and Central America |  |  | 2,465.1 |  |  |  | 173.3 |  |  |  |  |  |  |  | 307.9 |  |  |  | 2,946.3 |  |  |  | 2,435.5 |  |  |  | 213.5 |  |  |  |  |  |  |  | 304.9 |  |  | 2,953.8 |  | -0.3%
Colombia |  |  | 385.7 |  |  |  | 87.2 |  |  |  |  |  |  |  | 43.4 |  |  |  | 516.3 |  |  |  | 384.9 |  |  |  | 95.3 |  |  |  |  |  |  |  | 46.8 |  |  | 526.9 |  | -2.0%
Brazil |  |  | 1,114.1 |  |  |  | 100.6 |  |  |  |  |  |  |  | 126.6 |  |  |  | 1,341.2 |  |  |  | 1,019.2 |  |  |  | 89.5 |  |  |  |  |  |  |  | 114.6 |  |  | 1,223.4 |  | 9.6%
Argentina |  |  | 150.2 |  |  |  | 20.3 |  |  |  |  |  |  |  | 16.2 |  |  |  | 186.7 |  |  |  | 180.6 |  |  |  | 21.9 |  |  |  |  |  |  |  | 18.8 |  |  | 221.4 |  | -15.7%
Uruguay |  |  | 43.2 |  |  |  | 3.0 |  |  |  |  |  |  |  | 0.9 |  |  |  | 47.2 |  |  |  | 44.3 |  |  |  | 2.7 |  |  |  |  |  |  |  | 0.6 |  |  | 47.6 |  | -0.8%
South America |  |  | 1,693.2 |  |  |  | 211.1 |  |  |  |  |  |  |  | 187.1 |  |  |  | 2,091.4 |  |  |  | 1,629.0 |  |  |  | 209.5 |  |  |  |  |  |  |  | 180.8 |  |  | 2,019.3 |  | 3.6%
TOTAL |  |  | 4,158.3 |  |  |  | 384.4 |  |  |  |  |  |  |  | 495.1 |  |  |  | 5,037.8 |  |  |  | 4,064.5 |  |  |  | 423.0 |  |  |  |  |  |  |  | 485.7 |  |  | 4,973.1 |  | 1.3%

Revenues

Expressed in million Mexican Pesos |  | 3Q 2019 |  |  | 3Q 2018 (3) |  |  | Δ % |
Mexico |  |  | 23,702 |  |  |  | 21,909 |  |  |  | 8.2 | %
Central America |  |  | 4,464 |  |  |  | 4,160 |  |  |  | 7.3 | %
Mexico and Central America |  |  | 28,166 |  |  |  | 26,069 |  |  |  | 8.0 | %
Colombia |  |  | 3,479 |  |  |  | 3,697 |  |  |  | -5.9 | %
Brazil (4) |  |  | 14,808 |  |  |  | 11,924 |  |  |  | 24.2 | %
Argentina |  |  | 1,484 |  |  |  | 1,671 |  |  |  | -11.2 | %
Uruguay |  |  | 762 |  |  |  | 788 |  |  |  | -3.3 | %
South America |  |  | 20,533 |  |  |  | 18,079 |  |  |  | 13.6 | %
TOTAL |  |  | 48,699 |  |  |  | 44,148 |  |  |  | 10.3 | %

(3) Volume, transactions and revenues for 3Q 2018 are re-presented excluding the Philippines.

(4) Brazil includes beer revenues of Ps.3,428.3 million for the third quarter of 2019 and Ps. 2,928.8 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.
(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 3Q2019 Results October 25, 2019 | Page 32 of 34 |

COCA-COLA FEMSA

YTD - VOLUME, TRANSACTIONS & REVENUES

Volume

|  |  | YTD 2019 |  |  |  | YTD 2018 (3) |  |  |  | YoY |
|  |  | Sparkling |  |  |  | Water (1) |  |  |  | Bulk (2) |  |  |  | Stills |  |  |  | Total |  |  |  | Sparkling |  |  |  | Water (1) |  |  |  | Bulk (2) |  |  |  | Stills |  |  |  | Total |  |  |  | Δ% |
Mexico |  |  | 1,013.4 |  |  |  | 73.5 |  |  |  | 216.5 |  |  |  | 90.2 |  |  |  | 1,393.6 |  |  |  | 1,020.1 |  |  |  | 80.1 |  |  |  | 214.8 |  |  |  | 91.2 |  |  |  | 1,406.2 |  |  |  | -0.9 | %
Central America |  |  | 149.7 |  |  |  | 9.1 |  |  |  | 0.5 |  |  |  | 15.6 |  |  |  | 174.8 |  |  |  | 130.8 |  |  |  | 8.3 |  |  |  | 0.5 |  |  |  | 15.5 |  |  |  | 155.0 |  |  |  | 12.8 | %
Mexico and Central America |  |  | 1,163.1 |  |  |  | 82.6 |  |  |  | 216.9 |  |  |  | 105.8 |  |  |  | 1,568.4 |  |  |  | 1,150.9 |  |  |  | 88.4 |  |  |  | 215.3 |  |  |  | 106.7 |  |  |  | 1,561.2 |  |  |  | 0.5 | %
Colombia |  |  | 147.7 |  |  |  | 18.7 |  |  |  | 14.4 |  |  |  | 10.7 |  |  |  | 191.4 |  |  |  | 151.0 |  |  |  | 19.4 |  |  |  | 14.9 |  |  |  | 12.7 |  |  |  | 197.9 |  |  |  | -3.3 | %
Brazil |  |  | 513.4 |  |  |  | 35.7 |  |  |  | 5.7 |  |  |  | 36.0 |  |  |  | 590.9 |  |  |  | 481.7 |  |  |  | 31.6 |  |  |  | 5.2 |  |  |  | 31.9 |  |  |  | 550.5 |  |  |  | 7.3 | %
Argentina |  |  | 79.6 |  |  |  | 10.1 |  |  |  | 2.8 |  |  |  | 6.7 |  |  |  | 99.3 |  |  |  | 105.9 |  |  |  | 12.8 |  |  |  | 3.4 |  |  |  | 9.0 |  |  |  | 131.1 |  |  |  | -24.2 | %
Uruguay |  |  | 26.7 |  |  |  | 2.3 |  |  |  | - |  |  |  | 0.2 |  |  |  | 29.3 |  |  |  | 8.7 |  |  |  | 0.6 |  |  |  | - |  |  |  | 0.0 |  |  |  | 9.4 |  |  |  | 212.0 | %
South America |  |  | 767.3 |  |  |  | 66.9 |  |  |  | 23.0 |  |  |  | 53.7 |  |  |  | 910.9 |  |  |  | 747.3 |  |  |  | 64.5 |  |  |  | 23.5 |  |  |  | 53.7 |  |  |  | 888.9 |  |  |  | 2.5 | %
TOTAL |  |  | 1,930.4 |  |  |  | 149.5 |  |  |  | 239.9 |  |  |  | 159.5 |  |  |  | 2,479.3 |  |  |  | 1,898.1 |  |  |  | 152.8 |  |  |  | 238.8 |  |  |  | 160.4 |  |  |  | 2,450.1 |  |  |  | 1.2 | %

(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

|  | YTD 2019 |  |  | YTD 2018 (3) |  |  | YoY |
|  | Sparkling |  |  | Water |  |  | Stills |  |  | Total |  |  | Sparkling |  |  | Water |  |  | Stills |  |  | Total |  |  | Δ % |
Mexico |  |  | 6,001.1 |  |  |  | 544.4 |  |  |  | 698.3 |  |  |  | 7,243.8 |  |  |  | 6,083.7 |  |  |  | 586.7 |  |  |  | 733.7 |  |  |  | 7,404.1 |  |  |  | -2.2 | %
Central America |  |  | 1,201.3 |  |  |  | 70.4 |  |  |  | 179.8 |  |  |  | 1,451.5 |  |  |  | 1,048.6 |  |  |  | 60.5 |  |  |  | 186.7 |  |  |  | 1,295.9 |  |  |  | 12.0 | %
Mexico and Central America |  |  | 7,202.4 |  |  |  | 614.8 |  |  |  | 878.1 |  |  |  | 8,695.3 |  |  |  | 7,132.3 |  |  |  | 647.3 |  |  |  | 920.5 |  |  |  | 8,700.0 |  |  |  | -0.1 | %
Colombia |  |  | 1,071.9 |  |  |  | 249.8 |  |  |  | 116.9 |  |  |  | 1,438.6 |  |  |  | 1,107.2 |  |  |  | 262.9 |  |  |  | 137.1 |  |  |  | 1,507.3 |  |  |  | -4.6 | %
Brazil |  |  | 3,342.8 |  |  |  | 317.0 |  |  |  | 374.1 |  |  |  | 4,033.8 |  |  |  | 2,979.5 |  |  |  | 280.1 |  |  |  | 338.0 |  |  |  | 3,597.6 |  |  |  | 12.1 | %
Argentina |  |  | 457.6 |  |  |  | 63.3 |  |  |  | 49.5 |  |  |  | 570.4 |  |  |  | 554.5 |  |  |  | 69.9 |  |  |  | 62.1 |  |  |  | 686.5 |  |  |  | -16.9 | %
Uruguay |  |  | 137.1 |  |  |  | 10.3 |  |  |  | 2.5 |  |  |  | 149.8 |  |  |  | 44.3 |  |  |  | 2.7 |  |  |  | 0.6 |  |  |  | 47.6 |  |  |  | 214.7 | %
South America |  |  | 5,009.4 |  |  |  | 640.3 |  |  |  | 542.9 |  |  |  | 6,192.6 |  |  |  | 4,685.6 |  |  |  | 615.7 |  |  |  | 537.7 |  |  |  | 5,838.9 |  |  |  | 6.1 | %
TOTAL |  |  | 12,211.8 |  |  |  | 1,255.2 |  |  |  | 1,421.0 |  |  |  | 14,888.0 |  |  |  | 11,817.9 |  |  |  | 1,262.9 |  |  |  | 1,458.2 |  |  |  | 14,539.0 |  |  |  | 2.4 | %

Revenues

Expressed in million Mexican Pesos |  | YTD 2019 |  |  | YTD 2018 (3) |  |  | Δ % |
Mexico |  |  | 68,750 |  |  |  | 63,430 |  |  |  | 8.4 | %
Central America |  |  | 13,246 |  |  |  | 11,308 |  |  |  | 17.1 | %
Mexico and Central America |  |  | 81,996 |  |  |  | 74,738 |  |  |  | 9.7 | %
Colombia |  |  | 9,888 |  |  |  | 10,790 |  |  |  | -8.4 | %
Brazil (4) |  |  | 43,586 |  |  |  | 39,090 |  |  |  | 11.5 | %
Argentina |  |  | 4,619 |  |  |  | 5,172 |  |  |  | -10.7 | %
Uruguay |  |  | 2,415 |  |  |  | 788 |  |  |  | 206.6 | %
South America |  |  | 60,507 |  |  |  | 55,839 |  |  |  | 8.4 | %
TOTAL |  |  | 142,504 |  |  |  | 130,577 |  |  |  | 9.1 | %

(3) Volume, transactions and revenues for Year to date are re-presented excluding the Philippines.

(4) Brazil includes beer revenues of Ps. 10,848.2 million for the first nine months of 2019 and Ps. 9,357.9 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.
| (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 3Q2019 Results October 25, 2019 | Page 33 of 34 |

COCA-COLA FEMSA

MACROECONOMIC INFORMATION

Inflation (1) |  |  |  |  |  |  |  |  |
|  |  | LTM |  |  |  | 3Q19 |  |  |  | YTD |
Mexico |  |  | 2.55 | % |  |  | 0.70 | % |  |  | 0.61 | %
Colombia |  |  | 3.72 | % |  |  | 0.35 | % |  |  | 3.12 | %
Brazil |  |  | 3.64 | % |  |  | 0.29 | % |  |  | 2.65 | %
Argentina |  |  | 54.58 | % |  |  | 10.07 | % |  |  | 35.18 | %
Costa Rica |  |  | 2.82 | % |  |  | 0.68 | % |  |  | 1.50 | %
Panama |  |  | -0.94 | % |  |  | -0.74 | % |  |  | -0.06 | %
Guatemala |  |  | 1.67 | % |  |  | -1.22 | % |  |  | 1.34 | %
Nicaragua |  |  | 6.52 | % |  |  | -0.39 | % |  |  | 4.00 | %
Uruguay |  |  | 7.99 | % |  |  | 2.80 | % |  |  | 7.95 | %

(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) |  |  | Quarterly Exchange Rate (Local Currency per USD) |
|  | 3Q19 |  |  | 3Q18 |  |  | Δ % |  |  | YTD 19 |  |  | YTD 18 |  |  | Δ % |
Mexico |  |  | 19.42 |  |  |  | 18.98 |  |  |  | 2.3 | % |  |  | 19.25 |  |  |  | 19.04 |  |  |  | 1.1 | %
Colombia |  |  | 3,339.68 |  |  |  | 2,960.28 |  |  |  | 12.8 | % |  |  | 3,237.95 |  |  |  | 2,886.98 |  |  |  | 12.2 | %
Brazil |  |  | 3.97 |  |  |  | 3.96 |  |  |  | 0.4 | % |  |  | 3.89 |  |  |  | 3.60 |  |  |  | 7.9 | %
Argentina |  |  | 50.53 |  |  |  | 32.09 |  |  |  | 57.5 | % |  |  | 44.53 |  |  |  | 25.11 |  |  |  | 77.4 | %
Costa Rica |  |  | 577.77 |  |  |  | 574.59 |  |  |  | 0.6 | % |  |  | 594.57 |  |  |  | 571.86 |  |  |  | 4.0 | %
Panama |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 0.0 | % |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 0.0 | %
Guatemala |  |  | 7.68 |  |  |  | 7.55 |  |  |  | 1.8 | % |  |  | 7.69 |  |  |  | 7.45 |  |  |  | 3.2 | %
Nicaragua |  |  | 33.33 |  |  |  | 31.74 |  |  |  | 5.0 | % |  |  | 32.93 |  |  |  | 31.36 |  |  |  | 5.0 | %
Uruguay |  |  | 35.82 |  |  |  | 31.78 |  |  |  | 12.7 | % |  |  | 34.50 |  |  |  | 30.10 |  |  |  | 14.6 | %

End-of-period Exchange Rates

|  |  | Closing Exchange Rate (Local Currency per USD) |  |  |  | Closing Exchange Rate (Local Currency per USD) |
|  |  | Sep-19 |  |  |  | Sep-18 |  |  |  | Δ % |  |  |  | Jun-19 |  |  |  | Jun-18 |  |  |  | Δ % |
Mexico |  |  | 19.64 |  |  |  | 18.81 |  |  |  | 4.4 | % |  |  | 19.17 |  |  |  | 19.86 |  |  |  | -3.5 | %
Colombia |  |  | 3,462.01 |  |  |  | 2,972.18 |  |  |  | 16.5 | % |  |  | 3,205.67 |  |  |  | 2,930.80 |  |  |  | 9.4 | %
Brazil |  |  | 4.16 |  |  |  | 4.00 |  |  |  | 4.0 | % |  |  | 3.83 |  |  |  | 3.86 |  |  |  | -0.6 | %
Argentina |  |  | 57.59 |  |  |  | 41.25 |  |  |  | 39.6 | % |  |  | 42.46 |  |  |  | 28.85 |  |  |  | 47.2 | %
Costa Rica |  |  | 583.88 |  |  |  | 585.80 |  |  |  | -0.3 | % |  |  | 583.64 |  |  |  | 570.08 |  |  |  | 2.4 | %
Panama |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 0.0 | % |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 0.0 | %
Guatemala |  |  | 7.74 |  |  |  | 7.70 |  |  |  | 0.4 | % |  |  | 7.71 |  |  |  | 7.49 |  |  |  | 2.9 | %
Nicaragua |  |  | 33.53 |  |  |  | 31.94 |  |  |  | 5.0 | % |  |  | 33.12 |  |  |  | 31.55 |  |  |  | 5.0 | %
Uruguay |  |  | 36.94 |  |  |  | 33.21 |  |  |  | 11.2 | % |  |  | 32.39 |  |  |  | 28.76 |  |  |  | 12.6 | %

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

Coca-Cola FEMSA Reports 3Q2019 Results October 25, 2019 | Page 34 of 34 |

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/ Gerardo Estrada Attolini
|  | Gerardo Estrada Attolini
|  | Director of Corporate Finance
Date: October 28, 2019 |  |