Héctor Treviño Gutiérrez

Chief Financial Officer

18%EBITDA growth

flexibility

Dear Shareholders:In 2011, our portfolio of franchise territories across Latin America de-livered double-digit top- and bottom-line growth in the face of a challeng-ing commodity cost environment and global market volatility. The main drivers of our performance for the year were our revenue management initiatives—implemented over the past several months throughout our franchise territories—and the solid performance of our sparkling and still beverage portfolio. In 2011, we produced the following results:

• Consolidated revenues grew 21% to Ps. 124.7 billion.

• Consolidated operating income increased 18% to Ps. 20.2 billion.

• Consolidated controlling interest net income rose 8% to Ps. 10.6 bil-lion, resulting in earnings per share of Ps. 5.69 or Ps. 56.91 per ADR.

• Total net debt at year-end was ap-proximately Ps. 10 billion.

Our strong balance sheet, along with our high investment-grade credit ratings, underscores the financial strength and flexibility of our com-pany. As of December 31, 2011, we had a cash balance of Ps. 12.7 billion, and our total debt was Ps. 22.6 bil-lion. Year over year, we increased our EBITDA by 19% to Ps. 25.0 billion. In 2011, our net-debt-to-EBITDA cover-age ratio was 0.4 times, and our EBIT-DA-to-net interest coverage ratio was 22 times. During the second quarter of 2011, we made a dividend payment in the amount of Ps. 4.4 billion, which represented a significant increase as compared with the dividend payment made in the previous year.

For our company, 2011 marked a historic year in which we leveraged our financial and operating flexibility to firmly advance on our strategy to grow through accretive mergers and acquisi-tions: from our incursion into the dairy segment through our joint acquisi-

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tion, with The Coca-Cola Company, of Grupo Industrias Lacteas in Panama to our merger agreements with the beverage divisions of Grupo Tampico, Grupo CIMSA, and Grupo Fomento Queretano in Mexico. Through these mergers, we are privileged to enrich our organization with the track re-cord, talented team of professionals, and entrepreneurial legacy of three of Mexico’s most respected family-owned Coca-Cola bottlers—with whom we share our principles and values.

Our shareholders’ equity is stronger than ever as a result of the stock issuances in connection with these transactions. Furthermore, as a result of these mergers, we will lever-age important production capacity that will provide us with the flex-ibility to balance our production runs among our Mexican bottling facili-ties and postpone additional capital investments.

Additionally, to meet the growth we envision in our industry, during 2011, we installed six new production lines across our territories: two in Mexico, two in Brazil, one in Venezuela, and one in Panama. With this additional capacity, in which we invested ap-proximately US$70 million, we will be able to produce an additional 165 mil-lion unit cases of beverages annually, using the latest technology available in the market.

For the year, our total sales volume grew 6% to more than 2.6 billion unit cases. Excluding the volume that the newly merged territories contributed in Mexico, sales volume grew 4%. The sparkling beverage category—driven mainly by the 4% growth of brand Coca-Cola primarily in Mexico, Argentina, and Colombia—grew 4%. The still beverage category grew 11%, driven mainly by the performance of the Jugos del Valle line of business, as well as the Cepita juice and Hi-C

orangeade brands in Argentina and the Nestea and PowerAde brands in Mexico. Our bottled water portfolio, including bulk water, grew 2%.

In 2011, our Mexico & Central America division delivered positive results, advancing on many fronts. The brand equity of Coca-Cola and its wide preference across our franchise territories allowed us to implement selective price increases—targeted to mitigate the increased cost of raw materials. Moreover, our initiatives to foster the availability of sparkling beverages in returnable presenta-tions, combined with our continued efforts to provide our consumers with new packaging alternatives—such as our affordable 200-milliliter and 12-ounce single-serve non-returnable presentations for brand Coca-Cola in Mexico and Costa Rica, respectively—proved successful. Furthermore, with regard to our still beverage portfolio, we incorporated

to deliver growth and generate value

+60%of incremental

volume in 2011 from brand Coca-Cola

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16%volume growth in still beverages in South America

new beverage alternatives for our consumers, as exemplified by the integration of the Estrella Azul brand portfolio in our Panamanian opera-tions through the joint venture with our partner, The Coca-Cola Company. Together, we re-launched this impor-tant brand and presented our con-sumers with a compelling new image.

Our Mexico & Central America divi-sion delivered more than 9% volume growth for the year, selling 1.5 billion unit cases of beverages, including the volumes from Grupo Tampico and Grupo CIMSA in Mexico, which merg-ers closed during the fourth quarter of 2011. Excluding these mergers, our volumes in the division grew 6%. Our Mexican operations’ volumes grew 6% organically, and during the year, we posted record volumes in 10 out of 12 months. This growth was driven by the sparkling beverage category, which grew 6% supported by a 7% increase of brand Coca-Cola and 4% growth in flavored sparkling bever-ages; by a 5% increase in our water portfolio, including bulk water; and by 8% growth in still beverages, thanks to the strong performance of the Jugos del Valle line, along with the PowerAde and Nestea brands.

Our Central American operations achieved 5% volume growth during the year. This increase was driven mainly by brand Coca-Cola, which grew 6%, combined with 15% growth in our bottled water portfolio, includ-ing bulk water, and high single-digit volume growth in the still beverage

category—supported by the perfor-mance of the Jugos del Valle line of business and the portfolio of Estrella Azul brand products, incorporated during the last few months of 2011.

Our Mexico & Central America divi-sion’s total revenues grew over 15% to more than Ps. 52 billion. This increase resulted from selective price increases implemented over the past 12 months, mainly in our Mexican operations, the strong volume growth recorded in our Mexican franchise territories, and revenues generated from Grupo Tampico and Grupo CIMSA’s franchise territories. Our operating income increased close to 16% to Ps. 8.9 billion. Operating leverage—achieved through higher revenues, combined with controlled operating expenses in Mexico—par-tially compensated for gross margin pressures across the division, mainly due to increases in resin and sweet-ener costs. As a result, our Mexico & Central America division’s operating margin remained stable at 17.1%.

In 2011, our South America division delivered strong results. Leveraging the continued preference for brand Coca-Cola, through our growing returnable base, and the increased scale of our still beverage category, we were able to provide our con-sumers with more alternatives to satisfy different consumption occa-sions. Our strategy of reinforcing our returnable base and introducing new beverages in the marketplace over the past several months in the

still beverage category—offering juices, tea, coffee, and dairy and juice drinks—proved successful. The multi-category portfolio we have developed is not only an attractive proposition for our consumers and customers, but also represents a competitive advantage for us.

Our South America division generated close to 2% volume growth for the year, reaching more than 1.1 billion unit cases of beverages. This increase was driven mainly by the volume growth that we achieved in Argentina, Brazil, and Colombia, which compensated for a volume decline in Venezuela.

In Colombia, our volume increased 3%, resulting mainly from the solid perfor-mance of our sparkling beverage cat-egory—supported by the 9% growth of brand Coca-Cola in combination with increases in flavored sparkling beverages—which more than compen-sated for a volume decline in our water portfolio, including bulk water.

Moving to Venezuela, operating disruptions we faced at the begin-ning of the year, in combination with a tough consumer environment, resulted in a 10% volume decline for 2011. Growth in our still beverage portfolio and stable volumes in our flavored sparkling beverage portfolio were outpaced by declines in the rest of our beverage categories.

In Brazil, our operations’ volume grew 2%, successfully building on the more than 12% volume growth

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2

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2

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achieved in 2010. Our sparkling beverage category grew 1%, driven mainly by the Schweppes and Fanta brands. Our still beverage category, supported by the Sucos del Valle line of business and the Matte Leao tea product line, grew 22%.

Our Argentine operations recorded strong volume growth, leveraging solid consumer momentum. For the year, we grew volumes more than 11%, mainly driven by brand Coca-Cola and the Crush brand, combined with 54% growth in still beverages, resulting from the performance of Cepita juice, the successful intro-duction of our Hi-C orangeade, and HUGO, our new juice-dairy brand. Our water portfolio, including bulk water, grew 8%, mainly driven by Aquarius flavored water.

Our South America division’s total revenues rose more than 24% to Ps. 72.5 billion, resulting from double-digit revenue growth in every terri-tory. Excluding beer, which accounted for Ps. 3.9 billion, our total revenues reached Ps. 68.6 billion. Selective price increases implemented over the past several months across the divi-sion and volume growth from Argen-tina, Brazil, and Colombia accounted for our incremental revenues.

Our South America division’s oper-ating income grew 20% to Ps. 11.2 billion. Operating leverage, achieved through higher revenues, was off-set by higher costs of raw materials and higher labor costs in Venezuela,

higher labor and freight costs in Ar-gentina, and increased marketing ex-penses in the division. Consequently, our operating margin declined 60 basis points to 15.5% in 2011.

Overall, our operations delivered strong results for the year. Our opera-tors’ effective execution of strategies designed to foster our portfolio’s volume growth—coupled with their implementation of refined revenue management strategies across our ter-ritories—enabled us to foster organic growth and gain important operat-ing leverage to compensate for the increased cost of raw materials and protect our profitability. As we begin another year, our business is more solid than ever, and our operators are eager to capitalize on the opportuni-ties that our industry presents to us.

Thank you for your continued trust and support. We are confident that the strong brand equity of our multi-category portfolio of beverages, our operators’ relentless pursuit of opti-mal execution at the point of sale, the innovation capabilities of our talented team of professionals, the incorpora-tion of new businesses into our com-pany, and the financial flexibility that we have achieved over the past sev-eral years will enable us to continue growing our business and delivering increased value for our shareholders now and into the future.

Héctor Treviño GutiérrezChief Financial Officer

4.4billion pesos

dividends paid in 2011

1 45% Mexico

& Central America

2 55% South America

EBITDA breakdown per division

1 42% Mexico

& Central America

2 58% South America

Revenue breakdown per division

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