Integrating
Sustainability
ACTIONS CREATING VALUE
2016 in numbers
12
countries with
operations
$399,507
million MXN in earnings
(USD $19,377 million)
66
operating
plants
$194,315
million MXN in payment
to suppliers (USD $9,424 million)
15,225
OXXO stores
in Mexico and Colombia
282,656
direct jobs
generated
$1,555
million MXN
invested in Our People
(USD $75.4 million)
$963
million MXN
invested in Our Planet
(USD $46.7 million)
$357.3
million MXN
invested in Our Community
(USD $17.3 million)

About this
Report

G4-18, G4-20, G4-21, G4-28,
G4-30, G4-32, G4-33

In 2016, at FEMSA we reiterated our commitment to generate economic and social value, and to continue our work on integrating Sustainability into our Business Strategy. In this 2016 Sustainability Report, we share with you the primary actions and initiatives we took in this area, which strengthen our Strategic Sustainability Framework in all four of its pillars: Our Ethics and Values, Our People, Our Planet, and Our Community. We also report on recent projects and results by FEMSA Foundation.

The information in this Annual Sustainability Report covers the period from January 1st to December 31st, 2016, and corresponds to actions by FEMSA and its Business Units, not including Heineken, where FEMSA has an ownership stake but has not operated since 2010. Businesses acquired less than a year ago are not included in this report.

We followed the G4 Guidelines of the Global Reporting Initiative (GRI), with exhaustive in-accordance rating, with independent assurance by Deloitte Mexico of the material indicators presented for the company (the Independent Assurance Report is presented on page 46). The GRI-G4 indicators are referenced in each corresponding section of the report, and a GRI-G4 content index is included on page 34.

As signatories of the United Nations Global Compact, this report represents our Communication on Progress (COP) for 2016. The progress made in each principle can be identified in the document by the initials “GC”, accompanied by the roman numeral corresponding to each principle.

All amounts are expressed in Mexican pesos unless otherwise indicated, with conversion to U.S. dollars based on the exchange rate in effect at mid-day on December 30th, 2016, which was $20.617 Mexican pesos per U.S. dollar.

All these achievements were made possible thanks to your support and confidence. Let us continue creating value together.

Message

from the Executive Chairman of the
Board of Directors and from the Chief
Executive Officer of FEMSA G4-1

Dear friends,

FEMSA's mission is to create economic and social value through companies and institutions. In more than 125 years of continuous growth, the more than 282,000 people who collaborate in FEMSA act every day to fully integrate Sustainability into our Business Strategy.

In the FEMSA 2016 Sustainability Report, which we are pleased to share with you, we present the progress and activities that are part of the FEMSA Strategic Sustainability Framework. This project is based on Our Ethics and Values, and focuses on Our People, Our Community and Our Planet.

Identifying achievements, identifying best practices and, above all, discovering the challenges that we face, encourage us to multiply our efforts to achieve sustainable growth and find ways to contribute to the generation of value in all operations, always acting according to the philosophy and the values that distinguish us.

This is our 11th United Nations Global Compact Progress Report, which we adhered to in 2005. It also adheres to the G4 Global Reporting Initiative. We would like you to read more about how FEMSA contributes to the care of the environment and acts to create economic and social value. We also aim to promote greater awareness and collaboration among all to have a better quality of life together, more prosperous communities and a better planet.

José Antonio Fernández Carbajal
Executive Chairman of the
Board of Directors of FEMSA

Carlos Salazar Lomelín
Chief Executive Officer of FEMSA

Carlos Salazar Lomelín
Chief Executive Officer of FEMSA

José Antonio Fernández Carbajal
Executive Chairman of the Board of Directors of FEMSA

Discovering the challenges that we face, encourage us to multiply our efforts to achieve sustainable growth.

Profile

G4-4, G4-6, G4-7, G4-8,
G4-9, G4-17, G4-EC8

FEMSA is a Mexican company that was founded in 1890. We currently operate in 12 countries: Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, Mexico, Nicaragua, Panama, Peru, the Philippines, and Venezuela. Through our Business Units, Coca-Cola FEMSA, FEMSA Comercio, and FEMSA Strategic Businesses, we generated $399,507 million MXN (USD $19,377 million) in revenues and 282,656 direct jobs in 2016. We hold a 20% share in Heineken, making us their second-largest shareholder. We operate 66 bottling plants and 345 distribution centers. We offer more than 150 beverage brands and have 15,225 OXXO stores in Mexico and Colombia.

Is the largest public bottler and retailer in the world by sales volume of beverage brands of The Coca‑Cola Company. It has more than 100 thousand employees globally and a broad portfolio that includes 154 brands (Coca-Cola, Coca-Cola Light, Fanta, Del Valle, among others)offered daily to more than 375 million consumers. With 66 manufacturing plants and 328 distribution centers, it places more than four billion unit cases per year in 2.8 million points of sale. Coca-Cola FEMSA has the purpose of generating economic, social and environmental value for its communities and value chain. It operates in territories of Mexico, Brazil, Colombia, Argentina and Guatemala, and nation-wide in the Philippines, Venezuela, Nicaragua, Costa Rica and Panama, globaly generating 1,543,612 indirect jobs.

Operates different small-format retail store chains in Mexico, Chile and Colombia. Through its various formats, such as OXXO, OXXO GAS, Doña Tota, Yza and Cruz Verde Pharmacies, and Maicao beauty-product stores, FEMSA Comercio serves more than 10.9 million customers every day. The Retail Division includes 15,225 OXXO Stores in Mexico and Colombia, the Fuel Division 382 Gas Stations in Mexico, and the Health Division 2,120 Drugstores and related operations in Mexico, Chile and Colombia. In 2016, FEMSA Comercio generated 151,771 direct jobs and more than 750,000 indirect jobs.

Comprised by FEMSA Logística, Imbera and PTM, it offers its services to Coca-Cola FEMSA and FEMSA Comercio, as well as to external clients.

FEMSA Logística is a multinational company with presence in seven countries in Latin America: Brazil, Colombia, Costa Rica, Mexico, Nicaragua, Panama and Peru, that offers comprehensive value-generating logistics services, creating jobs for more than 20,000 people.

Is a world leader in the commercial refrigeration industry reaching throughout the American continent, selling commercial coolers and offering integral maintenance service. Since 1941, in its three operating plants in Mexico, Brazil and Colombia, it designs, develops and manufactures commercial refrigeration equipment, exporting to 56 countries.

For more than 40 years, it provides solutions and develops customized plastic transformation projects, mainly serving the food and beverage, automotive and retail industries. It is one of the largest plastic recycling companies in Mexico, recovering annually more than 16 thousand tons of plastic, in its two production plants located in San Juan del Rio, Querétaro and Monterrey, Nuevo León.

Corporate Structure
Equity Stake

Operational Overview

  Employees2,3   Plants Distribution Centers Millions of
customers
Mexico
200,365 FEMSA Comercio 17 10.9 4
Coca-Cola FEMSA 17 145 71.1
Colombia
9,203 FEMSA Comercio 10.9 4
Coca-Cola FEMSA 7 24 46.9
Central America1
6,715 Coca-Cola FEMSA 5 34 21.3
Venezuela
6,464 Coca-Cola FEMSA 4 26 31.7
Argentina
2,874 Coca-Cola FEMSA 2 4 12.2
Brazil
27,233 Coca-Cola FEMSA 12 43 87.7
Chile
11,906 FEMSA Comercio
Philippines
16,512 Coca-Cola FEMSA 19 52 10.4

Note: Only includes information on our core businesses.
1. Includes Guatemala, Nicaragua, Costa Rica and Panama.
2. Includes third-party and centralized services headcount.
3. Includes all personnel of businesses with operations in the country.
4. Millions of customers per day based on the number of daily transactions. Information for FEMSA Comercio in Mexico and Colombia.