Good morning and welcome everyone to FEMSA's third quarter earnings results conference call. [Operator Instructions] During this conference call, management may discuss certain forward-looking statements concerning FEMSA's future performance and should considered as good faith estimates made by the company. These forward-looking statements reflect management's expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which may materially impact the company's actual performance. At this time, I will now turn the conference over to Javier Astaburuaga, FEMSA's CFO. Please go ahead, sir. Javier Gerardo Astaburuaga Sanjinés: Thank you, Nancy. Good morning everyone. Welcome to FEMSA's third quarter 2012 results earnings conference call. Juan Fonseca and José Castro are with us today, as well, as always. As is customary on our calls, today we will focus on the consolidated figures for FEMSA, and on FEMSA Comercio's, results since many of you probably had the opportunity to participate in Coca-Cola FEMSA's conference call yesterday. As you have also, no doubt, seen or our detailed results, we will use this opportunity to focus on the highlights and main trends on our businesses. As we mentioned in our release, during the third quarter, we saw both our core operations perform well. While Coca-Cola FEMSA experienced some margin pressure earlier in the year, in Q3 they, were able to capitalize on stable volumes, solid pricing and improving raw materials and foreign exchange dynamics. That led to achieve double-digit operating income growth for the business. For its part, FEMSA Comercio maintained its great space and also posted double-digit operating income growth on the back of consistent, balanced same-store sales growth, and an ever-improving level of execution. As you know, at the end of March, we reported our 2011 quarterly and full year financial information under IFRS. This is to…

[Operator Instructions] And we will go to Alan Alanis with JPMorgan. Alan Alanis - JP Morgan Chase & Co, Research Division: I have a question regarding the CapEx of OXXO. I mean, we're seeing the year-to-date base growing around 13% in the quarter, actually a little bit faster, around 14%, yet the number of stores opening will likely be smaller, this year, than last year. So two questions, I mean, where is this CapEx being redirected if it's not store openings? Javier, I mean, what's up with the latest in terms of your greenfield initiatives for fast food and so on. And the second question would be, how do you see the annual pace of openings in the next 2 to 3 years, or in the next 1 to 3 years, for OXXO? That would be my question for you. Javier Gerardo Astaburuaga Sanjinés: Sure, Alan. The CapEx, as a proportional sales, has been relatively stable, between 5% to 6%. Both involving remobilization of the store base, but more driven by the opening of stores. And as you were mentioning, even though we're opening less, we're investing a little bit more. This has a lot to do with the opening of distribution centers in the year. We're basically going to open a couple of those. Also, we've invested, during the year, on a center for prepared food in Northwestern Mexico as well. And the core book is spending or investing behind the store base in terms of remobilization is also increasing as the store base gets a little bit taller. This is not a significant amount, yet, but it's also, I would say, having an influence in the growth of the CapEx. But all in all, a little bit, also, related to some of this effort that I mentioned in…

We'll move now to Lauren Torres with Hong Kong Shanghai Banking Corporation.

My question's also on OXXO. You've been doing very good same-store sales growth, high single-digits for the last several quarters. Just curious to get your impression, as we start to think about next year, how sustainable this type of growth rate is. And if you could also just talk about the components of this growth. It seems like it's been pretty balanced between store traffic and also ticket sales. So just curious to get any trends there, as far as how behavior has changed or stayed the same. Javier Gerardo Astaburuaga Sanjinés: This has been a very good year, I should say, for OXXO. If you look at the performance of the different categories -- speaking a little bit about the categories, we have, I would say, everything, a little bit of everything. So categories which are softening a little bit because of consumer dynamics, as well as emerging categories which have been very favorable to the gross margin performance, because we have been able to, again, grow those categories in which we are able to capture to a bit more margin. So the balance between traffic, and I would say, ticket is really a reflection of, again, bringing to the stores with the knowledge that we have continuously get from consumer needs and trying to satisfy those in the best and more convenient way. We feel confident that the efforts that we have in place will, I would say, be enough to -- I'm not sure if to match this year's performance, but at least to continue in a positive trend. We think we still have a number of initiatives that we feel confident will still bring more people in to the store, because we're, again, expanding a number of, I would say, both products and services all across…

Great, that's helpful. And if I could also ask, I'm not sure if I just missed it in your comments, when you talked about margin expansion at OXXO. Did you mention that you're trending ahead for this year? And I don't know if you made comments for next year, but just curious about -- I know you've provided some longer-term guidance on margin improvement, if that's still intact, as we think about next year. Javier Gerardo Astaburuaga Sanjinés: Yes, sure. My comment was that on this year, we're definitely going to be above our long-term expectation, which is a moderate expansion of 10, maybe 20 basis points, at the EBIT line. This year, definitely, results up to September makes us very, very confident that we're going to well surpass that long-term strategic intent.

And for next year, that 10 to 20 is still the guidance? Javier Gerardo Astaburuaga Sanjinés: Yes, yes. That still remains our long-term. That doesn't really change a lot for 2013.

We'll move next to Antonio Gonzalez with Credit Suisse. Antonio Gonzalez - Crédit Suisse AG, Research Division: I just have two quick questions. First, is there anything that you can comment on -- we're hearing from many of the grocery retailers in Mexico that price competition is intensifying, both in perishables as well as in a couple of categories that, I guess, do not compete at all with OXXO. I wanted to ask, within perishables, would you be able to comment, at all, on how do you feel about these price gaps? And I guess you close these trends quite closely -- you're tracking them quite closely. Would you be able to mention how do you feel with respect to more price aggressiveness from these retailers and whether, to the extent that you can comment your strategy would be, to continue differentiating by adding new categories and value-added services to the store or do you foresee any event in which you will or you maybe already did lower prices in this category that do overlap with the large box retailers in Mexico? That would be my first question. Javier Gerardo Astaburuaga Sanjinés: Sure, Antonio. We're really not very active in this category at all. And this is not one of the categories that people have in their minds when they're thinking about OXXO or a need to be satisfied. We are more kind of a last resource or a short trip to the store to buy some perishable that we were left out and we are in a hurry to really use it for supper or dinner, whatever. So we have been following, a little bit, the dynamics on the category. But as I'm tell you, this is not an important one for us, at least, so far. So I…

The next question comes from Gabriel Lima with Barclays.

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And we'll move to the next question from Lore Serra with Morgan Stanley.

I want ask one quick question and one broader question. The quick question is, can you just give us your updated timetable for the rollout of prepared foods in OXXO? And the more broad one is, yesterday on the call with KOF, Hector talked about how you would think about the Philippines as a beachhead for KOF to expand in Asia because of KOF's deep bench and desire to expand. And I'm going to ask this question, it's going to sound like I'm asking about Philippines, but I'm really not. I'm just right trying understand how investors or we should think about how you find good return opportunities in Asia, given that -- my perception is that margins are substantially below where you are in your current operations and costs [ph]. So as you think about investing in Asia, and like I said Philippines is part of that, but not really the whole thing. What compensates for the lower margins to make good return opportunities, or potentially good return opportunities because you haven't invested there yet, in Asia? Javier Gerardo Astaburuaga Sanjinés: On the first one, as I mentioned, I mean, rolling out I would say a new product innovation, which is bar-coded and you can just scan it, because here it's very easy for us to do. Really, the complexity involving having the ability to prepare food and distribute it to the stores on a daily basis, store-in, store-out, and manage waste and the likes. I mean, I'm just preparing you to a very, maybe easy answer out of your question, which is, it's going to be a long-term initiative. It took us a number of years, really, to roll out the coffee initiative. And making coffee seems very easy for all of us early in the morning, even…

And we'll go, again, to Gabriel Lima with Barclays.

So I just had a follow-up question on the very first question regarding the cash use. You mentioned that you're looking to other formats, but you also mentioned the logistic business. So I just want to better clarify what you mean that when you're looking to opportunity in the logistic business. Javier Gerardo Astaburuaga Sanjinés: Sure. We have a fairly large business within FEMSA. We don't speak much about that but this is north of $500 million. A lot of that is being served to our internal needs, and Coca-Cola FEMSA. We also provide freight services for Heineken as well. But it's, I would say, more than 50% of what we do is to third parties. And we have a very nice business which is very well run, and this is the largest one in Mexico in terms of private fleets and managing third party fleets, as well, for some customers. And we think we have an opportunity to expand a little bit. This is not, I would say, again, big investments, maybe, for the company. But we think we have some opportunity to expand, a little bit, the lines of services that we are providing there. And, basically, here and maybe Brazil -- here in Mexico I mean. And that's the kind of opportunities that I mentioned in terms of this category [ph] .

Okay, that's interesting. And can you share with us the level of returns and profitability that you have in that business? Javier Gerardo Astaburuaga Sanjinés: No, I think those business which are, as I said -- I mean, these are not the core businesses. What I can share with you is that these businesses perform well ahead of their cost of capital. So we feel confident about putting a little bit more capital into them. But, again, these are not the core businesses that we communicate with the market for FEMSA. But we feel confident that these are very well-run businesses. We don't talk too much about this, but these are businesses which are benchmarked against the best of its class in the region, both in the logistics one, as well as in the commercial refrigeration equipment business, which we have a fairly large business as well. Which is, as a matter of fact, the biggest one in the Americas. But even though we don't talk too much about those, you just saw that we just disposed the third business, which was non-core, the chemical one that we said we will in the past 2, 3 years. But this logistic business, as well as the commercial refrigeration equipment, are businesses which we think fits very fine, very nicely within that environment, from the capabilities of FEMSA. And, again, these are, even though smaller, as compared with the rest of the other one, we think there are opportunities and we would like to tackle those opportunities. That's why we're exploring and trying to develop opportunities to grow not only organically but also in a very, very moderate way. I should say that and reinforced that. We'd also like to do some nonorganic stuff in this business as well.

Okay, very interesting. And still on the cash use, you mentioned in the last call you are looking in opportunities in Brazil, regarding OXXO. So do you have any update on that? Any thought on what kind of format you would come to Brazil if it would be through a JV or by yourself? Any update is helpful. Javier Gerardo Astaburuaga Sanjinés: The only update is we continue to look at the retail landscape. We continue to look at potential opportunities. And as I said in the past, we would love to be in Brazil somehow, sometime. But we don't have, really, a clear blueprint that tells, that in a certain quarter we should be there doing something. So it's still in the stages of understanding better the market than trying to assess priorities in terms of what will be the best way to, sometime, being present in Brazil, in retail.

We'll take the next question from Alex Robarts with Citi.

I had two questions. I guess, first of all, just thinking about the services component, right, of OXXO sales. The financial services piece seems to be accelerating. It looks like it looks Banamex was included in the portfolio. During the third quarter, you mentioned, I guess, there'll be some other banks to be included. I mean, you gave us a nice overview of prepared foods. I mean, obviously, banking services is not like the bar-coded type of concept, and it's more like the multi-year project thing. Can you kind of give us a view, kind of some comments on where you stand in the banking service initiative, the related economics and kind of do we expect this to perhaps overtake the other services over time, to really being kind of the main source of service-related revenue? So that's the first question. I guess the second one relates to Heineken. I mean, it looks like we're coming to the end of the year. I mean, April is when you have the choice and option to start selling the Heineken shares. And I'm not sure how much comment you could give us around this, but should we think about the Philippine transaction, if it happens, kind of changing the way you view the ownership of the Heineken shares? And any thoughts around that option to sell those shares, as it comes in April, would be very helpful. Javier Gerardo Astaburuaga Sanjinés: First, on the services piece. This is kind of a two-function product. It should be a business by itself, which it is. Complexity, regarding the capability to really provide, even though the narrow services that we provide to consumers, customers in our stores on financial services, it requires a lot of training for people. And of course, we are certified and…

Okay, fair enough. And just one clarification, Javier, on the financial services, I mean, on the banking services. Is the goal to kind of roll it out, really, all across the stores nationally or might you think about just kind of trying to get to certain penetration levels in certain regions? Javier Gerardo Astaburuaga Sanjinés: No, it's a full -- it's a nationwide effort. The line of services which, today as I said, it's pretty narrow, that the intention is to deploy that to all the store base. Going forward, we might evolve into a more segmented approach. But, so far, it's really a very nationwide effort, all services present in all stores.

Ladies and gentlemen, that is all the time we have for questions today. I will now turn the conference back to Mr. Astaburuaga for posing additional remarks. Javier Gerardo Astaburuaga Sanjinés: Thank you very much for participating in this call, and looking forward to seeing you in the next one. Bye now.

Ladies and gentlemen, if you wish to replay the webcast for this call you may do so at FEMSA's Investor Relations website. This concludes our conference for today. Thank you for your participation and have a nice day. All parties may now disconnect.