FEMSA Annual Report 2016

Amounts expressed in millions of Mexican pesos (Ps.)
as of December 31, 2016


INCOME STATEMENT
Net sales	Ps.	398,622	Ps.	310,849	Ps.	262,779	Ps.	256,804	Ps.	236,922
Total revenues	399,507		311,589		263,449		258,097		238,309
Cost of goods sold	251,303		188,410		153,278		148,443		137,009
Gross profit	148,204		123,179		110,171		109,654		101,300
Operating expenses	110,777		89,444		80,188		79,797		72,073
Income from operations ⁽¹⁾	37,427		33,735		29,983		29,857		29,227
Other non-operating expenses (income), net	4,208		954		(508)		326		(345)
Financing expenses, net	4,619		7,618		6,988		4,249		1,904
Income before income taxes and share of the profit
of associates and joint ventures accounted for
using the equity method	28,600		25,163		23,503		25,282		27,668
Income taxes	7,888		7,932		6,253		7,756		7,949
Share of the profit of associates and joint ventures
accounted for using the equity method, net of taxes	6,463		6,045		5,380		4,629		8,332
Consolidated net income	27,175		23,276		22,630		22,155		28,051
Controlling Interest	21,140		17,683		16,701		15,922		20,707
Non-Controlling Interest	6,035		5,593		5,929		6,233		7,344
Ratios to total revenues (%)
Gross margin	37.1%		39.5%		41.8%		42.5%		42.5%
Operating margin	9.4%		10.8%		11.4%		11.6%		12.3%
Consolidated net income	6.8%		7.5%		8.6%		8.6%		11.8%
Other information
Depreciation	12,076		9,761		9,029		8,805		7,175
Amortization and other non cash charges
to income from operations	5,484		3,130		1,933		1,208		1,278
Operative Cash Flow (EBITDA)	54,987		46,626		40,945		39,870		37,680
Capital expenditures ⁽²⁾	22,155		18,885		18,163		17,882		15,560


BALANCE SHEET
Assets
Current assets	117,951	86,723	79,112	73,569	75,455
Investments in associates and joint ventures	128,601	111,731	102,159	98,330	83,840
Property, plant and equipment, net ⁽³⁾	102,223	80,296	75,629	73,955	61,649
Intangible assets,net	153,268	108,341	101,527	103,293	67,893
Other assets, net	43,580	22,241	17,746	10,045	7,105
Total assets	545,623	409,332	376,173	359,192	295,942

Liabilities
Short-term bank loans and current portion of long-term
bank loans and notes payable	7,281	5,895	1,553	3,827	8,702
Other current liabilities	79,008	59,451	47,766	45,042	39,814
Long-term bank loans and notes payable	131,967	85,969	82,935	72,921	28,640
Employee benefits	4,447	4,229	4,207	4,074	3,675
Deferred tax liabilities	11,037	6,230	3,643	2,993	700
Other long-term liabilities	25,713	5,702	5,947	7,785	4,250
Total liabilites	259,453	167,476	146,051	136,642	85,781
Total equity	286,170	241,856	230,122	222,550	210,161
Controlling interest	211,904	181,524	170,473	159,392	155,259
Non-controlling interest	74,266	60,332	59,649	63,158	54,902
Financial ratios (%)
Liquidity	1.367	1.327	1.604	1.505	1.555
Leverage	0.907	0.692	0.635	0.614	0.408
Capitalization	0.33	0.28	0.27	0.26	0.16

Data per share
Controlling interest book value ⁽⁴⁾	11.844	10.146	9.528	8.909	8.678
Net controlling interest income ⁽⁵⁾	1.182	0.988	0.933	0.890	1.157
Dividends paid ⁽⁶⁾
Series B shares	0.417	0.366	0.000	0.667	0.309
Series D shares	0.521	0.458	0.000	0.833	0.386
Number of employees ⁽⁷⁾	266,144	246,158	216,740	209,232	182,260
Number of outstanding shares ⁽⁸⁾	17,891.13	17,891.13	17,891.13	17,891.13	17,891.13

(1)

Company’s key performance indicator.

(2)

Includes investments in property, plant and equipment, as well as deferred charges and intangible assets.

(3)

Includes bottles and cases.

(4)

Controlling interest divided by the total number of shares outstanding at the end of each year.

(5)

Net controlling interest income divided by the total number of shares outstanding at the end of the each year.

(6)

Expressed in nominal pesos of each year.

(7)

Includes incremental employees resulting from mergers & acquisitions made during the year.

(8)

Total number of shares outstanding at the end of each year expressed in millions.