FEMSA Annual Report 2011

Financial Sumary

Management's Discussion
and Analysis

Audit Committee Annual Report

Financial Statements

Independent Auditor's Report

Consolidated Balance Sheets

Consolidated Income Statements

Consolidated Statements of Cash Flows

Consolidated Statements of Changes in Stockholders' Equity

Notes to the Consolidated Financial Statements

For the years ended December 31, 2011, 2010 and 2009. Amounts expressed in millions of U.S. dollars ($) and in millions of Mexican pesos (Ps.), except for data per share.	2011					2010		2009

Net sales	$	14,470	Ps.	201,867	Ps.	168,376	Ps.	158,503
Other operating revenues		84		1,177		1,326		1,748
Total revenues		14,554		203,044		169,702		160,251
Cost of sales		8,459		118,009		98,732		92,313
Gross profit		6,095		85,035		70,970		67,938
Operating expenses:
Administrative		591		8,249		7,766		7,835
Selling		3,576		49,882		40,675		38,973
		4,167		58,131		48,441		46,808
Income from operations		1,928		26,904		22,529		21,130
Other expenses, net (Note 18)		(209)		(2,917)		(282)		(1,877)
Comprehensive financing result:
Interest expense		(210)		(2,934)		(3,265)		(4,011)
Interest income		72		999		1,104		1,205
Foreign exchange gain loss, net		84		1,165		(614)		(431)
Gain on monetary position, net		9		146		410		486
Market value (loss) gain on ineffective portion
of derivative financial instruments		(11)		(159)		212		124
		(56)		(783)		(2,153)		(2,627)
Equity method of associates (Note 9)		370		5,167		3,538		132
Income before income taxes		2,033		28,371		23,632		16,758
Income taxes (Note 23 D)		550		7,687		5,671		4,959
Consolidated net income before discontinued operations		1,483		20,684		17,961		11,799
Income from the exchange of shares with Heineken, net of taxes (Note 5 B)		-		-		26,623		-
Net income from discontinued operations (Note 5 B)		-		-		706		3,283
Consolidated net income	$	1,483	Ps.	20,684	Ps.	45,290	Ps.	15,082
Net controlling interest income		1,085		15,133		40,251		9,908
Net noncontrolling interest income		398		5,551		5,039		5,174
Consolidated net income	$	1,483	Ps.	20,684	Ps.	45,290	Ps.	15,082
Net controlling interest income before discontinued operations^(1):
Per series "B" share	$	0.05	Ps.	0.75	Ps.	0.64	Ps.	0.33
Per series "D" share		0.07		0.94		0.81		0.42
Net income from discontinued operations ^(1):
Per series "B" share		-		-		1.37		0.16
Per series "D"share		-		-		1.70		0.20
Net controlling interest income ^(1):
Per series "B" share		0.05		0.75		2.01		0.49
Per series "D"share		0.07		0.94		2.51		0.62

The accompanying notes are an integral part of these consolidated income statements.
⁽¹⁾ U.S. dollars and Mexican pesos, see Note 22 for number of shares.