IMC-2020 Presentation 22:42 Minutes

by Francisco Iturriaga and Carlos Garza, Arca Continental

Arca Continental produces, distributes and sells non-alcoholic beverages under The Coca-Cola Company brand, as well as snacks under the brands of Bokados in Mexico, Inalecsa in Ecuador and Wise and Deep River in the U.S. With an outstanding history spanning more than 93 years, Arca Continental is the second-largest Coca-Cola bottler in Latin America and one of the largest in the world. Within its Coca-Cola franchise territory, the company serves over 120 million consumers in northern and western Mexico, Ecuador, Peru, northern Argentina and southwestern U.S.

Arca Continental is a company that focuses on success and results, and, at the same time, on sustainable development and ethics. Our actions are guided by a set of principles and values that form the essence of our organizational culture.

Since 2018, Arca Continental developed, piloted, and rolled out an asset management plan for our manufacturing facilities. This plan helped us realize value through guaranteeing the maximum availability of our manufacturing processes physical assets, with a higher level of reliability, and guaranteeing the production certainty and consequence of fulfilling the market demand with lower costs during the asset lifecycle. Arca Continental has 46 production centers, 263 production lines and manages over 25,000 manufacturing assets in five countries.

The "Total Asset Management Plan" has been able to standardize the reliability culture through our entire organization despite territorial extension, languages and native cultural behaviors, allowing us to have an outstanding fundament for continuous improvement. Our focus is to:

1. Develop and implement strategies that maximize the value creation of the company while we strengthen our organizational culture.

2. Grow the business profitability margin through applying strategic management principles as:

• Functionality - getting the assets to work as expected in terms of performance, speed, durability and on-time;
• Co-Responsibility - we are all responsible for the success and failures of our company;
• Excellence - well executed and on time only what we are meant to do, without any waste;
• Anticipation - build and analyze possible and probable futures.

3. Ensure our business permanence and growth through strengthening our competitive advantage, ready for facing future challenges.

4. Promote the development of our collaborators through the creation of new competences and opportunities.