Cultiba | 2014 Annual Report

	2014	2013	% Change
OPERATING INFORMATION
Total volume (millon 8 oz cases)	1,614.0	1,607.4	0.4%
Bottled beverages¹	810.0	806.9	0.4%
Jug Water	804.0	800.6	0.4%
CONSOLIDATED FINANCIAL DATA
Total revenue²	34,333	33,453	2.6%
Operating income³	248	409	-39.4%
Operating margin	0.7%	1.2%	-56 bp
EBITDA^4,5	2,573	2,917	-11.8%
EBITDA margin	7.5%	8.7%	-118 bp
Net income⁶	(1,845)	204	NM
BEVERAGES DIVISION
Revenue²	31,449	31,184	0.8%
Operating income	301	467	-35.5%
Operating margin	0.9%	1.5%	-54 bp
EBITDA⁷	2,461	2,589	-5.1%
EBITDA margin	7.8%	8.3%	-48 bp
Non-reccurring expenses	397	101
Net income	97	352	-72.4%

¹ Includes carbonated and non-carbonated beverages, as well as bottled water in presentations of less than 10 liters; one 8 oz case is equivalent to 5.678 liters.

² Net sales do not include revenues from excise tax (IEPS); 1 peso per liter of sugary beverages. Including revenues from excise tax CULTIBA total revenues were Ps. 37,908 million and GEPP revenues were Ps. 35,024 million in 2014.

³ Operating income does not include non-cash impact from reduction to goodwill related to the sugar division. Including such non-cash impact, Cultiba’s operating loss was of Ps. 1,352 million in 2014.

⁴ EBITDA = Net income plus: (1) Depreciation and amortization (2) Net financing cost, (3) Provision for taxes (4) for 2014: non-cash impact of Ps. 1,600 million reduction to goodwill related to the sugar division.

⁵ EBITDA does not adjust for non-recurring expenses related to savings program. These expenses were Ps. 101 million in 2013 and Ps. 397 million in 2014. Adjusting for non-recurring expenses, consolidated EBITDA was Ps.3,018 million in 2013 and Ps.2,970 million in 2014.

⁶ Net loss includes non-cash effect of Ps. 1,600 million from the reduction of goodwill related to the sugar division, in order to reflect lower prices expected in 2015 and forward. Adjusting for such non-cash effect, Cultiba’s consolidated net loss was Ps.245 million in 2014.

⁷ EBITDA does not adjust for non-recurring expenses related to savings program. Adjusting for non-recurring expenses, the beverages division’s EBITDA was Ps. 2,858 million in 2014 and Ps. 2.690 billion in 2013.

¹ Net revenues are net of excise tax; 1 peso per liter of sugary beverages. Including excise tax income, Cultiba’s consolidated revenues were Ps. 37,908 million in 2014.

² EBITDA = Net income plus: (1) Depreciation and amortization (2) Net financing cost, (3) Provision for taxes (4) For 2014: non-cash impact of Ps.1,600 million reduction to goodwill related to the sugar division.
EBITDA does not adjust for non-recurring expenses related to savings program. These expenses were Ps. 101 million in 2013 and Ps. 397 million in 2014. Adjusting for non-recurring expenses, Cultiba’s consolidated EBITDA was Ps.3,018 million in 2013 and Ps. 2,970 million in 2014.

¹ Operating income does not include non-cash impact of Ps.1,600 reduction to goodwill related to the sugar division. Including such adjustment, Cultiba’s operating loss was Ps. 1.352 million in 2014.