In 2012, we updated and developed a comprehensive long-term sustainability strategy for our organization. This strategy integrates sustainability into our company's and our business units' overall strategic planning and reinforces it in our day-to-day decision-making processes. Focused on three governing pillars—our people, our planet, and our community—this strategy enables us to concentrate and more efficiently allocate our resources on those areas that will generate the greatest positive impact on our company, the environment, and the communities we serve. Founded on our corporation's 122-year-old value-based work ethic, our vision is to ensure the sustainability of our business by positively transforming our communities through the simultaneous creation of economic, social, and environmental value.

To this end, FEMSA Foundation, together with the Nature Conservancy, the Inter-American Development Bank, and the Global Environment Facility, continued to make considerable progress on the Latin American Water Funds Partnership. Over five years, the Partnership plans to implement at least 32 Water Funds throughout Latin America with investments of over US$27 million. Revenue from these investments will preserve key watersheds upstream that filter and regulate the water supply of some of the most important cities in the region. Already, the Partnership has launched 12 Water Funds, benefiting 12 cities in five countries.

At FEMSA, we are dedicated to our talented team of employees, who are the foundation for our past, present, and future success. We are committed to the personal and professional development of quality people at all levels of our organization. We offer proprietary training programs and tools to advance the capabilities of all of our people. For example, in 2012, 79,438 employees were trained online through FEMSA University, our integrated professional development and personalized training platform. We also foster the cross-fertilization and growth of our company's shared pool of knowledge and skills through the exchange of our executives across our international operations network.

Recognizing that people are at the heart of every successful organization, I want to take a moment to mourn the passing of a dear friend and colleague, Shankar Dadoo, who, among other senior management positions, served as Chief Executive Officer of our non-alcoholic beverage business when we began those operations in 1979 in the Valley of Mexico. Shankar contributed his talent, leadership, and counsel to help build the company that we are today. The exemplary way he conducted himself will long endure among us.

Building on our strengths, we will continue focusing our time, efforts, and resources on the extraordinary opportunities for Coca-Cola FEMSA and FEMSA Comercio. We will continue to work closely with The Coca-Cola Company to pursue further avenues of growth for Coca-Cola FEMSA, building on our capability set and taking advantage of the business' proven track record. As a leading bottler in the global Coca-Cola bottling system, we also look to continue to expand our non-alcoholic beverage business, maintaining our disciplined, efficient efforts to grow both organically and through targeted transactions that generate value for our stakeholders. In addition, we will redouble our efforts to develop innovative products that emphasize health and nutrition. We will further continue to emphasize and concentrate on the considerable growth potential of FEMSA Comercio, strengthening our business platform and further developing the capabilities that we need to excel in our existing retail enterprises—capitalizing on the knowledge gained from our industry-leading OXXO store chain, as well as new small-box retail opportunities that leverage our skill set across formats and markets.

As we maintain our focus on driving growth at Coca-Cola FEMSA and FEMSA Comercio, we remain alert to capture strategic opportunities that may arise in the future, where we can leverage the capabilities that we have developed over time, as well as FEMSA's substantial and growing business platform.

We envision an immensely rewarding future for our company, driven by our passionate team of managers and employees. On behalf of these more than 182 thousand dedicated men and women across FEMSA, we thank you for your continued support. We reiterate our belief that the very reason for our existence is to create economic, social, and environmental value for our stakeholders—including our employees, our consumers, our shareholders, and the enterprises and institutions within our society—now and into the future.


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