Fomento Económico Mexicano, SAB de C.V. (NYSE:FMX) Q3 2020 Results Conference Call October 29, 2020 11:00 AM ET Company Participants Juan Fonseca - VP, IR Eugenio Garza - Director of Finance & Corporate Development Miguel Eduardo Silva - Chief Executive Officer & Director Conference Call Participants Alan Alanis - Santander Alvaro Garcia - BTG Antonio Hernandez - Barclays Carlos Laboy - HSBC Rodrigo Alcantara - UBS Luca Cipiccia - Goldman Sachs Rodrigo Echagaray - Scotiabank Operator Good morning, and welco ...

Fomento Economico Mexicano SAB de CV (NYSE:FMX) Q2 2020 Earnings Conference Call July 24, 2020 10:00 AM ET | --- | |---------------------------------------------------------------------------------| | | | Company Participants | | Eduardo Padilla - CEO & Director Juan Fonseca - VP, IR | | Conference Call Participants | | Benjamin Theurer - Barclays Bank Bob Ford - Bank of America Merrill Lynch | | Miguel Tortolero - GBM Marcella Recchia - Crédit Suisse | | Gustavo Oliveira - UBS Ulises Bolio - JPMorgan Chase ...

Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) Q1 2020 Results Conference Call April 30, 2020 9:30 AM ET Company Participants Eduardo Padilla - CEO Juan Fonseca - VP, IR Conference Call Participants Luca Cipiccia - Goldman Sachs Bob Ford - Bank of America Alan Alanis - Santander Marcelo Alvisio - Credit Suisse Alvaro Garcia - BTG Carlos Laboy - HSBC Joseph Giordano - JP Morgan Rodrigo Alcantara - UBS Antonio Hernández - Barclays Gustavo Oliveira - UBS Operator Good morning and welcome, everyone, to F ...

Table of Contents As filed with the Securities and Exchange Commission on April 28, 2020 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 Commission file number 001-35934 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 ...

Fomento Economico Mexicano SAB de CV (NYSE:FMX) Q4 2019 Earnings Conference Call February 27, 2020 10:00 AM ET Company Participants Eduardo Padilla - Director & CEO Juan Fonseca - VP, IR Conference Call Participants Luca Cipiccia - Goldman Sachs Group Antonio Gonzalez - Credit Suisse Benjamin Theurer - Barclays Álvaro García - BTG Operator Good morning and welcome everyone to FEMSA's Fourth Quarter and Full Year 2019 Financial Results Conference Call. [Operator Instructions] During this conference call mana ...

Fomento Economico Mexicano SAB de CV (NYSE:FMX) Q3 2019 Earnings Conference Call October 28, 2019 11:00 AM ET Company Participants Eduardo Padilla - CEO & Director Juan Fonseca - VP, IR Maria Dyla Castro - IR Conference Call Participants Antonio Gonzalez - Crédit Suisse Ãlvaro GarcÃa - BTG Leandro Fontanesi - Bradesco Carlos Laboy - HSBC Martha Shelton - Santander Luca Cipiccia - Goldman Sachs Group Alan Alanis - UBS Investment Bank Operator Good morning, and welcome to FEMSA's Third Quarter 2019 Financial ...

Financial Data and Key Metrics Changes - Total revenues increased by 9.4% in Q2 2019, with organic growth at 6.7% [8] - Income from operations rose by 8.3%, while net income decreased by 26% due to foreign exchange losses [8] - Consolidated net debt increased by approximately Ps.6 billion to reach Ps.46 billion at the end of June [9] Business Line Data and Key Metrics Changes - FEMSA Comercio Proximity Division opened 375 new OXXO stores, totaling 1,312 net store openings over the last 12 months [9] - Revenues for the Proximity Division grew by 11.3% on an organic basis, with same-store sales in Mexico up by 6.2% [10] - Health Division revenues increased by 13.9%, but same-store sales decreased by 2.6% due to currency effects [15] - Fuel Division added one gas station, reaching 541 units, with stable same-station sales [17] Market Data and Key Metrics Changes - The Mexican operation of the Health Division performed well, while results in Chile were soft due to unfavorable foreign exchange dynamics [7] - Coca-Cola FEMSA achieved strong topline growth across most markets, benefiting from operational efficiencies [19] Company Strategy and Development Direction - The company aims to focus on executing its strategy across all business units despite a gradually uncertain consumer environment in Mexico [20] - There is an emphasis on leveraging fintech solutions and enhancing the OXXO position in the market [66][70] Management Comments on Operating Environment and Future Outlook - Management noted a cautious consumer environment in Mexico, with potential adjustments in purchasing patterns [11][20] - The company is optimistic about future growth in the services category, despite current challenges [95] Other Important Information - The company is exploring opportunities in M&A across Mexico, Brazil, and the U.S. to enhance competitive positioning [99][100] - The integration of the GPF acquisition in Ecuador is expected to take time but is seen as a strategic move for future profitability [35][38] Q&A Session Summary Question: OXXO same-store sales breakdown and traffic dynamics - Management explained that pricing increases in key categories affected store traffic, leading to cautious consumer behavior [24][26] Question: Health Division profitability outlook - Management indicated that margin pressure is expected to persist due to pricing regulations and promotional activities, with integration costs from the Ecuador acquisition impacting profitability [39] Question: OXXO margins and beer category contribution - Management clarified that while beer sales are expected to increase revenue, they do not anticipate significant margin improvements from this category [42][45] Question: Energy costs and wind energy integration - Management confirmed that energy costs are a significant part of the cost structure, with expectations to cover over 80% of energy needs through wind sources by year-end [82][86] Question: Cash handling and financial transaction opportunities - Management is exploring ways to improve cash handling efficiency and increase transaction sizes while managing risks associated with cash availability [88][91] Question: M&A opportunities in the current environment - Management expressed a continuous effort to identify attractive M&A opportunities in Mexico and Brazil, while also considering the U.S. market [99][101]

Financial Data and Key Metrics Changes - Total revenues during the first quarter increased by 5.6%, while income from operations increased by 0.4% on an organic basis, excluding operations in Guatemala and Uruguay [9] - Net income increased significantly due to an easy comparison base from a foreign exchange rate loss in the first quarter of 2018 [10] - Consolidated net debt decreased by approximately Ps. 20 billion compared to the previous quarter, reaching a net debt of Ps. 40 billion at the end of March [11] Business Line Data and Key Metrics Changes - FEMSA Comercio Proximity Division opened 234 net new wholesale stores, reaching 1,416 net store openings over the last 12 months [12] - Revenues for the Proximity Division increased by 9.3% on an organic basis, with same-store sales up by 3.2% driven by a 2% increase in average customer ticket and nearly 1% growth in store traffic [13] - FEMSA Comercio Health Division added 23 drug stores, reaching 2,384 units, with revenues increasing by 2.4% and same-store sales up by 1.3% [16] - The Fuel Division added one gas station, reaching 540 units, but same-station sales decreased by 7.5% due to disruptions in the fuel distribution chain [19] Market Data and Key Metrics Changes - Coca-Cola FEMSA delivered top and bottom-line growth in Mexico and Central America, with strong volume growth in Brazil [7][20] - Positive consumption trends were noted across many operations despite adverse calendar effects and macro headwinds in some markets [21] Company Strategy and Development Direction - The company aims to leverage its consumer confidence in Mexico to navigate market uncertainties and allocate capital to high-return opportunities [21] - The adoption of IFRS 16 is expected to increase operating and EBITDA margins while reducing return on invested capital [8] - The company is focusing on digital transformation and fintech opportunities to enhance customer engagement and adapt to changing consumer behaviors [30][51] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the quarter, highlighting the resilience of the business and the ability to execute strategies amid market uncertainties [21] - The company remains committed to evolving its brand image and proposition to meet changing consumer needs, particularly in the digital space [88] Other Important Information - The company is experiencing a structural margin expansion in the Proximity Division, driven by growth in financial services and improved supplier interactions [25] - The average ticket size has contracted due to increased service transactions, which are smaller in value compared to traditional purchases [45][57] Q&A Session Summary Question: Can you expand on the OXXO gross margin performance? - Management noted that the Modelo arrangement is not yet reflected in numbers, but structural margin expansion is expected due to growth in financial services and improved supplier interactions [24][25] Question: What is the impact of regulatory changes in Colombia on growth plans? - Management indicated that while there are new regulations affecting certain SKUs, the overall growth outlook for Colombia remains positive [33][34] Question: How is the shift from commission-based to employee-based stores progressing? - Management stated that employee-based stores execute better, and the current ratio is approximately 55% employees to 45% commission-based [36][37] Question: Can you clarify the differences in revenues reported last year versus this year? - Management explained that the difference is due to operations being shifted from the Retail Division to the Proximity Division, affecting reported revenues [41] Question: What is the expected impact of renewable energy on energy costs? - Management confirmed that the transition to renewable energy is expected to provide cost predictability and savings starting from the second quarter [76] Question: How will the company evolve its brand image with new product offerings? - Management emphasized the importance of understanding consumer needs and leveraging partnerships with suppliers to enhance product offerings and drive traffic [84][88]

Table of Contents As filed with the Securities and Exchange Commission on April 24, 2019 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ANNUAL REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 Commission file number 001-35934 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 ...

Financial Data and Key Metrics Changes - Total revenues during Q4 2018 increased by 7.5% and income from operations increased by 2.3% [9] - On an organic basis, total revenues increased by 6% while income from operations decreased by 4.4% [9] - Net income increased significantly due to an easy comparison base from the previous quarter [9] - Net debt decreased by approximately MXN 16 billion to reach MXN 60 billion at the end of December [9] Business Line Data and Key Metrics Changes - **Proximity Division**: Achieved 11% revenue growth on an organic basis, with same-store sales up 4.5% driven by a 4% increase in average customer ticket [10][11] - **Health Division**: Revenues increased by 6.1% with same-store sales also up by 4.5% [13] - **Fuel Division**: Added 20 gas stations, with same-station sales growing by 6.7% and gross margin expanding by 180 basis points [15] Market Data and Key Metrics Changes - Coca-Cola FEMSA reported top-line and volume growth in several markets, particularly in Brazil [6][16] - The consumer environment in Mexico remains resilient, while Brazil shows signs of recovery [17] Company Strategy and Development Direction - The company plans to continue expanding OXXO stores, with expectations of over 1,300 new units in Mexico and approximately 120 new stores in Colombia, Chile, and Peru [18] - The new commercial agreement with global brewers aims to enhance OXXO's value proposition and expand its product offerings [7][20] - The company is optimistic about leveraging its scale and improving profitability through strategic investments and operational efficiencies [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the consumer environment in key markets, despite mixed signals in the microenvironment [17] - The company anticipates stable to slightly expanding operating margins in the Health Division and continued growth in the Fuel Division [22][23] - There is a focus on managing cash handling costs and improving operational efficiencies to enhance profitability [30][31] Other Important Information - The company will report financial information under IFRS 16 starting in Q1 2019, which will change the treatment of leases in financial statements [27] - A proposed ordinary dividend payment of MXN 9.7 million is expected, reflecting a conservative approach to balance sheet management [24] Q&A Session Summary Question: Insights on OXXO results and gross margin expansion - Management highlighted that cash handling has become a significant part of their business, with service revenues now contributing more than merchandising [30] - The gross margin expansion is attributed to supplier leverage and seasonal commercial income [31] Question: Investment appetite in Brazil and capital deployment timeframe - The company is considering investment opportunities in Brazil but noted that market conditions can be expensive [35] Question: Impact of new beer agreements on OXXO revenues - Management indicated that the beer agreements will likely increase sales per store, but specific financial impacts are not disclosed at this stage [36] Question: Operating margin guidance for the Proximity Division - Operating margins are expected to be under pressure, but the new beer agreements could provide some upside [53] Question: Growth in OXXO International and long-term margin expectations - The company closed the year with around 160 stores outside Mexico and aims for aggressive growth, though profitability will take time to align with OXXO Mexico [64][66]