The information by segment is presented considering the Company’s business units (as defined in Note 1) based on its products and services, which is consistent with the internal reporting presented to the Chief Operating Decision Maker. A segment is a component of the Company that engages in business activities from which it earns revenues, and incurs the related costs and expenses, including revenues, costs and expenses that relate to transactions with any of the Company’s other components. All segments’ operating results are reviewed regularly by the Chief Operating Decision Maker, who makes decisions about the resources that would be allocated to the segment and to assess its performance, and for which financial information is available.

Starting 2021, FEMSA opted to report voluntarily a new reportable segment named “Logistics and Distribution”, which includes integral logistics services as well as product sales in the Jan-San, packaging and specialized distribution industry. Also, starting in 2021, the Company reallocated a not significant fuel business, which was previously included in “Other” to “FEMSA Comercio – Fuel Division.” The financial information by operating segment reported below for the years ended December 31, 2020 and 2019 has been restated in order to give effect to business units’ reorganization described above.

Inter-segment transfers or transactions are entered into and presented under accounting policies of each segment, which are the same as those applied by the Company. Intercompany operations are eliminated and presented within the consolidation adjustment column included in the tables below.

(1)	Includes other companies and corporate (see Note 1).

(2)	Includes bottle breakage.

(3)	Includes foreign exchange loss, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments.

(4)	Includes acquisitions and disposals of property, plant and equipment, intangible assets, and other long-lived assets.


			FEMSA		FEMSA		FEMSA
			Comercio –		Comercio –		Comercio –
	Coca-Cola		Proximity		Health		Fuel		Heineken		Logistics and				Consolidation
2020 (Revised)	FEMSA		Division		Division		Division		Investment		Distribution		Other ⁽¹⁾		Adjustments		Consolidated
Total revenues	Ps.	183,615	Ps.	181,277	Ps.	65,172	Ps.	34,322	Ps.	—	Ps.	31,568	Ps.	17,311	Ps.	(20,299)	Ps.	492,966
Intercompany revenue		5,016		451		—		9		—		5,508		9,315		(20,299)		—
Gross profit		82,811		74,296		19,575		4,829		—		5,191		8,103		(5,152)		189,653
Administrative expenses		—		—		—		—		—		—		—		—		22,988
Selling expenses		—		—		—		—		—		—		—		—		123,405
Other income		—		—		—		—		—		—		—		—		3,343
Other expenses		—		—		—		—		—		—		—		—		12,381
Interest expense		7,894		5,932		1,540		1,099		—		397		4,376		(3,722)		17,516
Interest income		1,048		388		162		155		61		56		3,952		(3,722)		2,100
Other net finance income ⁽³⁾		—		—		—		—		—		—		—		—		505
Income before income taxes and share of the profit of equity method accounted investees		16,077		6,409		753		330		48		776		(5,567)		485		19,311
Income taxes		5,428		(280)		243		126		12		446		8,844		—		14,819
Share of the profit of equity method accounted investees, net of tax		(281)		(18)		—		—		(434)		—		(3)		—		(736)
Consolidated net income		—		—		—		—		—		—		—		—		3,756
Depreciation and amortization ⁽²⁾		10,608		10,574		3,543		865		—		2,062		500		(103)		28,049
Non-cash items other than depreciation and amortization		1,494		739		28		21		—		(25)		164		—		2,421
Investments in equity method accounted investees		7,623		3,102		—		19		87,291		—		235		—		98,270
Total assets		263,066		121,200		60,107		19,572		92,444		52,057		135,456		(59,054)		684,848
Total liabilities		140,609		104,141		46,038		16,466		4,011		15,163		110,054		(58,821)		377,661
Investments in fixed assets ⁽⁴⁾		10,354		6,907		1,694		549		—		481		1,052		(144)		20,893

(1)	Includes other companies and corporate (see Note 1).

(2)	Includes bottle breakage.

(3)	Includes foreign exchange loss, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments.

(4)	Includes acquisitions and disposals of property, plant and equipment, intangible assets, and other long-lived assets.


			FEMSA		FEMSA		FEMSA
			Comercio –		Comercio –		Comercio –
	Coca-Cola		Proximity		Health		Fuel		Heineken		Logistics and				Consolidation
2019 (Revised)	FEMSA		Division		Division		Division		Investment		Distribution		Other ⁽¹⁾		Adjustments		Consolidated
Total revenues	Ps.	194,471	Ps.	184,810	Ps.	58,922	Ps.	48,790	Ps.	—	Ps.	19,834	Ps.	21,016	Ps.	(21,132)	Ps.	506,711
Intercompany revenue		5,688		325		—		11		—		5,953		9,155		(21,132)		—
Gross profit		87,507		75,099		17,645		5,713		—		1,013		9,600		(5,096)		191,481
Administrative expenses		—		—		—		—		—		—		—		—		19,930
Selling expenses		—		—		—		—		—		—		—		—		121,871
Other income		—		—		—		—		—		—		—		—		1,013
Other expenses		—		—		—		—		—		—		—		—		4,905
Interest expense		6,904		5,733		1,226		1,175		1		448		1,855		(3,209)		14,133
Interest income		1,230		338		10		267		23		17		4,393		(3,110)		3,168
Other net finance expenses ⁽³⁾		—		—		—		—		—		—		—		—		(2,527)
Income before income taxes and share of the profit of equity method accounted investees		18,409		11,458		1,487		1,134		10		8		(569)		359		32,296
Income taxes		5,648		923		556		348		(491)		(154)		3,646		—		10,476
Share of the profit of equity method accounted investees, net of tax		(131)		9		—		—		6,428		—		(78)		—		6,228
Consolidated net income		—		—		—		—		—		—		—		—		28,048
Depreciation and amortization ⁽²⁾		10,642		9,604		3,112		855		—		1,147		561		(112)		25,810
Non-cash items other than depreciation and amortization		1,083		529		23		105		—		321		434		—		2,495
Investments in equity method accounted investees		9,751		3,719		—		—		83,789		4		207		—		97,470
Total assets		257,841		117,229		54,366		22,470		86,639		26,900		127,077		(54,981)		637,541
Total liabilities		128,154		98,468		53,468		20,438		3,151		12,160		50,968		(55,017)		311,790
Investments in fixed assets ⁽⁴⁾		11,465		10,374		1,529		706		—		464		1,221		(180)		25,579

(1)	Includes other companies and corporate (see Note 1).

(2)	Includes bottle breakage.

(3)	Includes foreign exchange gain, net; gain on monetary position for subsidiaries in hyperinflationary economies; and market value loss on financial instruments.

(4)	Includes acquisitions and disposals of property, plant and equipment, intangible assets, and other long-lived assets.

b)	By Geographic Area:

The Company aggregates geographic areas into the following for the purposes of its consolidated financial statements: (i) Mexico and Central America division (comprising the following countries: Mexico, Guatemala, Nicaragua, Costa Rica and Panama), (ii) the United States, (iii) the South America division (comprising the following countries: Brazil, Argentina, Colombia, Chile, Ecuador, Peru and Uruguay) and (iv) Europe (comprised of the Company’s equity method investment in Heineken Group). For further information related to aggregates, geographic areas see Note 28.2 Disaggregation of revenue.

Geographic disclosure for the Company’s non-current assets is as follow:


	2021		2020
Mexico and Central America ⁽¹⁾	Ps.	234,719	Ps.	234,679
United States ⁽²⁾		53,447		37,105
South America ⁽³⁾		117,278		124,470
Europe		101,338		87,326
Consolidated	Ps.	506,782	Ps.	483,580

(1)	Domestic (Mexico only) non-current assets were Ps. 220,843 and Ps. 226,497, as of December 31, 2021, and December 31, 2020, respectively.

(2)

On May 15, 2020, the Company completed the acquisition of the specialized distribution business of cleaning products and consumables in the United States, through the controlling interest of NW Synergy, which includes WAXIE Sanitary Supply (“WAXIE”) and North American Corporation (“North American”). Additionally, on December 31, 2020, the Company completed the acquisition of Southeastern Paper Group (“SEPG”). In 2021 the Company acquired other companies increasing its specialized distribution footprint in the United States. See Note 4.1.

(3)

South America non-current assets includes Brazil, Argentina, Colombia, Chile, Uruguay and Ecuador. Brazilian non-current assets were Ps. 65,512 and Ps. 66,050, as of December 31, 2021 and December 31, 2020, respectively. Colombia’s non-current assets were Ps. 14,433 and Ps. 15,653, as of December 31, 2021 and December 31, 2020, respectively. Argentina’s non-current assets were Ps. 4,486 and Ps. 3,905, as of December 31, 2021 and December 31, 2020, respectively. Chile’s non-current assets were Ps. 29,621 and Ps. 30,953, as of December 31, 2021 and December 31, 2020, respectively. Uruguay’s non-current assets were Ps. 2,473 and Ps. 4,537, as of December 31, 2021 and December 31, 2020, respectively. Ecuador’s non-current assets were Ps. 3,590 and Ps. 3,372, as of December 31, 2021 and December 31, 2020, respectively.