MEXICAN ECONOMIC DEVELOPMENT Business Summary

Mexican Economic Development Inc. (FEMSA) operates a vertically integrated retail and beverage ecosystem, generating revenue through high-frequency consumer transactions, franchise bottling, and digital service fees. Under its "FEMSA Forward" strategic framework, the company has consolidated its operations into three core pillars: Proximity & Health, anchored by the OXXO convenience store network and a multi-national pharmacy portfolio; Coca-Cola FEMSA (KOF), the largest franchise bottler of Coca-Cola products globally by volume; and Digital@FEMSA, which leverages the Spin by OXXO fintech platform to provide financial services to its massive customer base. Recent strategic expansions include the acquisition of Delek US Holdings' retail assets in the United States and the integration of the Swiss-based Valora group in Europe. FEMSA competes directly with Walmart de México (Walmex) in the retail space, Arca Continental in beverage distribution, and 7-Eleven in the convenience market, holding a superior market position due to its ubiquitous physical density and integrated "Spin Premia" loyalty program. The company is led by Chief Executive Officer Jose Antonio Fernández Garza-Lagüera, a Stanford MBA graduate who assumed the role in November 2025 after successfully scaling the Proximity & Health and Digital divisions. He is supported by Executive Chairman Jose Antonio Fernández Carbajal, a veteran strategist who has guided the firm’s international expansion for decades. The senior leadership team includes CFO Martin Arias Yániz, who oversees capital recycling and balance sheet efficiency, and Ian Craig García, the CEO of Coca-Cola FEMSA. Juan Carlos Guillermety serves as CEO of Digital@FEMSA, spearheading the group’s transition into a tech-enabled consumer powerhouse. Tracing its origins to the 1890 founding of Cervecería Cuauhtémoc by the Garza and Sada families, the firm maintains strong family stewardship through the Garza Lagüera lineage while benefiting from significant institutional investment from firms like BlackRock and Vanguard.