Fomento Economico Mexicano S.A.B. de C.V.

Hello and welcome to FEMSA four-quarter 2022 results conference call. Please note this call is being recorded and for the duration of the call, your lines will be on listen only. However, you will have the opportunity to ask questions at the end of the call. This can be done by pressing star 1 on your telephone keypad to register your question. I will now hand you over to your host, Mr. Juan Fonseca, to begin today's conference. Thank you.

Thank you, Ben. Good morning, everyone. Welcome to FEMSA's Fourth Quarter 2022 Results Conference Call. Today, we are joined by Daniel Rodriguez, our CEO, Paco Camacho, our Chief Corporate Officer, and Eugenio Garza, our CFO. As always, we also have Jorge Collazo on the line, who leads Coke FEMSA's Investor Relations Team. Today, we will discuss our fourth quarter results and our general expectations for 2023, followed by a Q&A session. The intention is to focus on these topics in the Q&A, but certainly if there are additional questions about sensor forward left over from last week and the announcements that we made, we can talk about that too. So let me turn it over to Daniel. Please go ahead.

Thank you, Juan, and hello to everyone on the call. We appreciate your participation today. As we mentioned briefly in our communication last week, we closed the year on a high note with a strong core quarter that boldly continues the positive momentum we have seen since the end of 2020. Last year presented significant challenges and headwinds, yet our teams were able to successfully navigate a volatile microenvironment affected by supply chain disruptions and rising inflation across markets. Nevertheless, the distortion caused by the pandemic The behavioral responses and the comparability issues resulting from it seem to finally be in the rearview mirror. This has allowed us to focus on fundamentals of the business and on executing our strategic priorities, which in turn resulted in another set of outstanding results across our businesses, headlined by strong top-line goals of 23% and operating income goals of 12%. and underscoring the resilience of our platform and the operating excellence that our teams bring to work each and every day. In terms of the four quarters, we note the continuous trends of operating trends at OPSO Mexico, where traffic again grew by several percentage points and contributed to our double-digit same-store sales increase. That also reflected good growth from important categories linked to the gathering consumer locations. especially relevant during the holiday season. Beyond Mexico, proximity continued to grow at a good pace in most markets, and we are reporting Baloba's results for the first time reflecting its consolidation in early October. Pemsa Health again delivered stable results, again a demanding comparison base and foreign exchange headwind, while OxoGas had another strong quarter on the back of increased volume recovery and strong operating leverage. On the digital front, we continue to add OXO-Premia and Spin by OXO customer at a solid pace, even as we focus on generating engagement and measuring those users that are interacting with our platform on a recurring basis. We're also making progress launching our loyalty coalition platform, where we recently announced an exciting partnership with Volaris, and we are working on much more to come. Coca-Cola Fremsa had a strong close to a year that saw them achieve a record set of results, driven by their excellent execution and leveraging their enhanced cooperation framework with the Coca-Cola company to invest and grow the business. Finally, logistics and distribution had a strong quarter that was partially overshadowed by one-time charges at Envoy Solutions. close to 2020 position as well to drive more growth in 2023 as we begin to execute the focus strategy laid out in our FEMSA Forward vision presented last week. We look forward to an exciting year and beyond. Now, I will let Eugenio elaborate on the numbers reported today. Eugenio, please go ahead.