Arca Continental B de C : 2021 Integrated Annual Report

TABLE OF CONTENTS

3 HOW TO READ THIS REPORT

• 4 RELEVANT FINANCIAL DATA

• 5 MESSAGE FROM THE CHAIRMAN OF THE BOARD AND THE CHIEF EXECUTIVE OFFICER

• 13 WE ARE ARCA CONTINENTAL

  PRESENCE

  OPERATIONAL DIVISIONS

  OUR CULTURE

  VALUE CHAIN

• 19 STRATEGY AND RISK MANAGEMENT

  STRATEGY

  SUSTAINABILITY

  RISK MANAGEMENT

• 26 TO SERVE THE CONSUMER

  CONSUMER WELL-BEING

  CUSTOMERS

  SUPPLIERS

• 41 CARING FOR THE PLANET

  ENVIRONMENTAL MANAGEMENT

  WATER FOOTPRINT

  CARBON FOOTPRINT

  PACKAGING AND WASTE

• 55 TAKING CARE OF PEOPLE

  ASSOCIATES COMMUNITIES

• 74 CREATING SHARED VALUE

  ECONOMIC PERFORMANCE DISTRIBUTION OF ECONOMIC VALUE

• 82 WITH ETHICS AND TRANSPARENCY ETHICS AND COMPLIANCE CORPORATE GOVERNANCE

• 95 CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED

CONSOLIDATED
MESSAGE TO OUR	WE ARE	STRATEGY AND RISK	TO SERVE THE	CARING FOR	TAKING CARE	CREATING	WITH ETHICS AND	FINANCIAL
SHAREHOLDERS	ARCA CONTINENTAL	MANAGEMENT	CONSUMER	THE PLANET	OF PEOPLE	SHARED VALUE	TRANSPARENCY	STATEMENTS

How to read this report

(GRI 2-2, 2-3, 2-4, 2-5)

Arca Continental's Integrated Report is the primary tool to communicate our company's performance and achievements for the period from January 1st to December 31st, 20211. It is published annually, and includes the progress made in accordance with our strategy and the generation of social, environmental, and economic value, both in the medium and long term. It integrates events and consolidated data on all countries and operations of the company, except when a narrower scope is specified2.

We focus on communicating performance concerning the issues determined to be significant3 in our latest materiality study under the guidelines defined by the

Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB).

Additionally, we include our response to the recommendations of the Task Force on Climate-related Financial Disclosures

(TCFD), as well as reference information for responding to the S&P Global's Corporate Sustainability Assessment (CSA).

In line with our principle of transparency, this report was subject to external verification by an independent third party. The scope of this review is presented in the verification letter, which is communicated as an annex to the report.

1.1 Compliance with the Main International Reference Frameworks

This report is technical and responds to the company's different methodologies, indexes, and commitments:

• • Global Reporting Initiative (GRI)

  standards, the most widely used methodology to communicate extra-financial performance or ESG.4

• • Sustainability Accounting Standards Board (SASB)

  • • United Nations Global Compact, which proposes corporate compliance with its ten principles to ensure the operational sustainability.

  • • Incorporation of the information requested by S&P Global's

    Corporate Sustainability Assessment (CSA), an annual assessment of companies' sustainability practices that focuses on industry-specific criteria that may be financially significant.

  • • Preparation of financial information in accordance with

    International Financial Reporting Standards (IFRS).

  Beverages and Processed Foods sectors5 in response to investor requests for information on issues that could affect the company's financial stability.

  standards for the Non-Alcoholic 1.2 How to Identify the Contents

• • Task Force on Climate-related Financial Disclosures

  (TCFD), which proposes recommendations for informing the investing public about risk management and opportunities related to climate change.

• • Sustainable Development Goals

  (SDGs), a global roadmap proposed by the United Nations to address significant societal challenges.

• • Each chapter's cover page references the SDGs that we impact through our activities.

• • At the beginning of each section, some codes refer to the contents of the GRI standards, SASB metrics, and detailed TCFD recommendations.

• • As part of the annexes to this report, available on the web sitewww.arcacontal.com, we include a specific index for each ESG reporting framework to which we respond: GRI, SASB, TCFD, SDG, and Global Compact.

• 1 There has been no information restatement with respect to the prior period.

• 2 The scope for ESG management performance includes all operations unless otherwise stated. Details of the entities included in the report are shown in the Financial Statements.

• 3 We are in the process of updating our materiality analysis, the results of which will be reflected in our next Integrated Report.

• 4 ESG: Environmental, Social, and Governance.

• 5 The Meat, Poultry, and Dairy sector was referenced in response to Tonicorp's activities.

CONSOLIDATED

Relevant Financial Data

Figures in millions of pesos, except volume and per share data.

Relevant Figures

Total MUC Sales Volume (Millions of Unit Cases) Net Sales

Gross Margin Operating Income Operating Margin

Operating Cash Flow (EBITDA) Operating Cash Flow Margin (EBITDA) Net Income

Total Assets Cash

Total Debt Stockholders' Equity Capital Expenditures

DATA PER SHARE

2021

2,279.7

183,366

45.4%

25,361

13.8%

35,406

19.3%

12,282

258,027

32,117

51,074

120,377

7,176

2020

Variation %

2,154.8 5.8%

169,314 8.3%

45.3%

10 bp

21,472

18.1%

12.7%

110 bp

32,147

10.1%

19.0%

30 bp

10,276 19.5%

245,974 4.9%

27,336 17.5%

50,577 1.0%

116,854 3.0%

6,723 6.7%

MESSAGE TO OUR	WE ARE	STRATEGY AND RISK	TO SERVE THE	CARING FOR	TAKING CARE	CREATING	WITH ETHICS AND	FINANCIAL
SHAREHOLDERS	ARCA CONTINENTAL	MANAGEMENT	CONSUMER	THE PLANET	OF PEOPLE	SHARED VALUE	TRANSPARENCY	STATEMENTS

MESSAGE FROM THE CHAIRMAN OF THE BOARD AND THE CHIEF EXECUTIVE OFFICER

GRI (2-2, 2-3, 2-4, 2-22)

JORGE HUMBERTO

SANTOS REYNA

Chairman of the Board of Directors

ARTURO GUTIÉRREZ HERNÁNDEZ

Chief Executive Officer

To our shareholders:

In 2021, we prioritized associates, customers, and suppliers as we faced the pandemic that continues to affect the world. We accelerated the development of our capabilities to ensure a better future, with the support of a team that exceeded the performance of the year before the health emergency. Our company stood out in the markets it serves for its solidarity and commitment to community, as well as for the different actions taken to support the economic recovery in favor of those most in need.

CONSOLIDATED

Thanks to the professionalism of more than 62,000 associates in five countries, we implemented robust strategies aimed at guaranteeing operational continuity in the face of uncertainty and mobility restrictions, and the development of long-term initiatives that improved commercial execution, boosted operational excellence, and further integrated sustainability into the business strategy.