Mexico City

Company Overview
(BMV: Walmex)
April 30, 2015
This presentation is property of Wal-Mart de México S.A.B.
de C.V. and is intended for the use of the company’s
shareholders and the investment community. It should not be
reproduced in any way.
This presentation may contain certain references concerning
Wal-Mart de Mexico S.A.B. de C.V.’s future performance that
should be considered as good faith estimates made by the
Company.
These references only reflect management expectations and
are based upon currently available data. Actual results are
always subject to future events, risks and uncertainties, which
could materially impact the Company’s actual performance.
2
Table of contents
 History of Walmex
3
4
 Walmex Today
11
 Financial Information
30
 Competitors
36
 Walmex Resources
43
History of Walmex
History: founded in 1958
1
City with
Walmex presence
1958
1958
First Aurrerá
1959
First Superama
1964
First Vips
1970
First Bodega Aurrerá
1977
Cifra starts trading on the
Mexican Stock Exchange
5
First Suburbia
History: Walmart’s first international business
&
11
Cities with
Walmex presence
1991
1991
Joint venture
between Cifra and
Wal-Mart Stores, Inc.
First Sam’s Club
in Mexico City
1993
First Walmart Supercenter
in Mexico City
1997
Stores, Inc.
MEXICAN
STOCK
EXCHANGE
Wal-Mart Stores, Inc.
acquires majority position
in Cifra - Tender offer on the MSE
6
History: EDLP successfully introduced into Mexico
38
Cities with
Walmex presence
1999
1999
Introduction of EDLP
2003
Walmart de México Foundation created
2004
2005
First Mi Bodega
2005
2006
2007
License issued to operate
a bank in Mexico
7
Superama.com.mx
Online grocery sales pilot
Wal-Mart Stores, Inc. acquires
33% of the shares of CARHCO
(Central American Retail
Holding Company)
Wal-Mart Stores, Inc. increases
its holding to 51% of CARHCO
History: “Bodegas” expansion and incorporation of
Cities with
Central America
224 Walmex presence
2008
2008
First Bodega Aurrerá Express
2010
Walmart de México acquires
100% of Walmart Centroamérica
2011
First Walmart Supercenter
in Central America
(Honduras)
2013
Walmart.com.mx launches
8
Continuous profitable growth
Sales
EBITDA
(Mx$ billion)
(Mx$ billion)
CAGR : 12.4%
437.7*
11.9
136.5
2004
* Walmex fiscal year: January-December
9
CAGR: : 13.7%
42.9*
2014
2004
2014
Growth across multiple formats
185.5*
Total Sales (Mx$ billion)
% CAGR
16.3%
Total Sales (Mx$ billion)
% CAGR
41.0
118.7*
12.3%
% CAGR
2014
Total Sales (Mx$ billion)
% CAGR
2004
2014
29.2*
13.8%
8.8%
2004
2014
Total Sales (Mx$ billion)
% CAGR
6.8%
13.1*
6.8
8.0
2004
* Walmex fiscal year: January-December
10
91.3*
39.3
37.1
2004
Total Sales (Mx$ billion)
2014
2004
2014
Walmex Today
Walmex: Listed on the Mexican Stock Exchange
Wal-Mart Stores, Inc.
70%
30%
ADR: WMMVY
OTCQX
• Market Cap: Mx$ 634 bn1
• Weight on the MSE index: 6.91%
• 2nd most traded stock on the MSE
Mexican Stock Exchange
Sustainable Index
1. As of April 30, 2015
12
Company description
As of April 30, 2015
Sales (Mx$ billion)
450.1 *
Units
2,988
Countries
Cities
572
Business formats
5
e-Commerce sites
3
Distribution centers
24
Associates (thousand)
+229
* Last 12 months to April 30, 2015
13
6
Contribution to
2014 sales
Mexico
85.9%
Central America**
14.1%
** Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Basic general merchandise, food and household
items at the best prices.
Value Driver: Price
% of 2013 Walmex sales
Customer target
Cities*
– Mexico
434
124
– Central America
Operating units*
– Mexico
1,667
572
– Central America
“Bodegas”
Tiendas de Descuento
* As of April 30, 2015
14
42.3
D, E
SQ. FT.
SKUs
Proposition
45,600
32,000
Weekly shopping
12,700
11,200
Small towns
3,850
4,400
Fill-in trip
Mama Lucha
She is the average Mexican
housewife: she wants the best
for her family, but faces a
constant struggle (lucha in
Spanish) to make ends meet.
She is Mexico’s favorite
luchadora, who fights against
high prices together with
Bodega Aurrerá. She brings the
lowest prices to all families.
15
Widest assortment of goods at every day low prices.
Value Drivers: Price and assortment
% of 2013 Walmex sales
Cities*
Prototypes
88
3
Operating units*
– Mexico
– Central America
* As of April 30, 2015
16
251
22
27.1
Average sq. ft.
82,400
SKUs
90,000
Customer target
B, C, D+
Carrito
Carrito is the perfect shopping partner.
He knows our customer better than
anyone and he understands what
motivates her to shop.
Only Carrito can join, advise and
listen to our customer in order to
help her find everything she needs
when she comes to Walmart.
Qualities: Friendly, curious, helpful,
observer, good listener, fun,
responsible, practical, intelligent,
ally, accomplice.
17
Membership warehouse clubs focused on
businesses and high income households.
Value Drivers: Price leader, volume, new and unique merchandise
% of 2013 Walmex sales
Average sq. ft.
SKUs
Customer target
Cities*
Prototypes
87
4
Operating units*
– Mexico
– Central America
* As of April 30, 2015
18
159
1
20.9
76,300
4,500
A, B, C+, Negocios
Business Member
19
Individual Member
Supermarkets
Supermarkets
located
in residential
Neighborhood
supermarkets
with areas
outstanding
fresh and food departments at reasonable prices.
Value Drivers: Quality, convenience and service
% of 2013 Walmex sales
Cities*
Prototypes
45
2
Operating units*
– Mexico
93
– Central America
97
* As of April 30, 2015
20
6.7
Average sq. ft.
16,150
SKUs
30,000
Customer target
A, B, C+
Local format branding
Costa Rica
Nicaragua
Guatemala & Honduras
Mexico
El Salvador
21
Basic fashion for the entire family.
Value Drivers: Fashion with the best value, price-quality ratio
% of 2013 Walmex sales
Average sq. ft.
Customer target
Cities*
Prototypes
44
3
Operating units*
– Mexico
* As of April 30, 2015
22
116
3.0
41,500
C+, D
23
Superama.com.mx: online grocery sales leader
Web page
Mobile Apps
Call Center
Source: Euromonitor International
24
Walmart.com.mx: online general merchandise
Differentiated catalogue
• Audio
• Auto
Delivery
• Baby
• Musical
Instruments
• Books
• Pets
• Cell Phones
• Photography
• Computers
• Smart House
• Electronics
• Sports
• Health &
Beauty
• Toys
• Home
• Household
Appliances
Categories
25
• Jewelry &
Accessories
• Video Games
• Forniture
• Patio
& Garden
Walmart.com.mx: groceries and perishables
•Meal Solution,
grains & pasta
•Dairy
•Produce
•Meat & Fish
•Deli
•Bakery & Bread
•Beverages
•Wine & Liquor
•Frozen Foods
•Pharmacy
Categories
26
Flexible multiformat operation
Flexible Prototypes
Income Level
D
E
B
C
D+
A
B
C+
C+
D
Sales Area (Sq. Ft.)
27
20,000
40,000
60,000
80,000
100,000
Regional store presence
572
As of March 31, 2015
28
Cities with
Walmex presence
Efficient distribution network
Monterrey (2)
24 Distribution
Centers
Mexico City (6)
Culiacán (1)
San Pedro (2)
Guadalajara (2)
Managua (1)
Villahermosa (2)
Guatemala (2)
Amatitlán (1)
El Salvador (2)
29
San José (2)
Tegucigalpa (1)
Financial Information
Walmex: 2014 Results*
2014
(Mx$ million)
%
$
%
%
Increase
Total revenues
440,988
100.0
423,823
100.0
4.1
Gross margin
97,619
22.1
92,948
21.9
5.0
General expenses
64,010
14.5
61,318
14.5
4.4
Operating income
34,716
7.9
31,636
7.5
9.7
EBITDA
42,854
9.7
40,305
9.5
6.3
Net income before
disc. operations
25,041
5.7
21,988
5.2
13.9
Net income
30,435
6.9
22,713
5.4
34.0
* Walmex fiscal year: January-December
31
$
2013
Walmex: 1Q15 Results*
1Q15
(Mx$ million)
%
$
%
%
Increase
Total revenues
111,723
100.0
102,229
100.0
9.3
Gross margin
24,151
21.6
22,255
21.8
8.5
General expenses
16,860
15.1
15,543
15.2
8.5
Operating income
7,341
6.6
6,916
6.8
6.2
EBITDA
9,816
8.8
9,237
9.0
6.3
Net income before
disc. operations
5,143
4.6
4,781
4.7
7.6
Net income
5,175
4.6
4,750
4.6
8.9
* Walmex fiscal year: January-December
32
$
1Q14
Mexico: 2014 Results*
2014
(Mx$ million)
%
Increase
$
%
$
%
Total revenues
378,778
100.0
366,393
100.0
3.4
Gross margin
83,690
22.1
80,109
21.9
4.5
General expenses
52,970
14.0
50,610
13.8
4.7
Operating income
30,697
8.1
29,520
8.1
4.0
EBITDA
38,526
10.2
36,861
10.1
4.5
* Walmex fiscal year: January-December
33
2013
Mexico: 1Q15 Results*
1Q15
(Mx$ million)
%
%
$
%
Increase
Total revenues
93,893
100.0
87,729
100.0
7.0
Gross margin
20,145
21.5
19,016
21.7
5.9
General expenses
13,721
14.6
12,916
14.7
6.2
Operating income
6,472
6.9
6,308
7.2
2.6
EBITDA
8,532
9.1
8,269
9.4
3.2
* Walmex fiscal year: January-December
34
$
1Q14
Central America: 2014 Results*
2014
(Mx$ million)
% Increase
2013
In peso
terms
On a constant
currency basis
$
%
$
%
Total revenues
62,210
100.0
57,430
100.0
8.3
7.3
Gross margin
13,929
22.4
12,839
22.4
8.5
7.4
General expenses
11,040
17.7
10,708
18.6
3.1
2.1
Operating income
2,878
4.6
2,116
3.7
36.0
34.7
EBITDA
4,328
7.0
3,444
6.0
25.7
24.5
* Walmex fiscal year: January-December
35
Central America: 1Q15 Results*
1Q15
% Increase
1Q14
$
%
$
%
In peso
terms
On a constant
currency basis
Total revenues
17,830
100.0
14,500
100.0
23.0
10.6
Gross margin
4,006
22.5
3,239
22.3
23.7
11.2
General expenses
3,139
17.6
2,627
18.1
19.5
7.4
Operating income
869
4.9
608
4.2
42.9
28.5
1,284
7.2
968
6.7
32.6
19.3
(Mx$ million)
EBITDA
* Walmex fiscal year: January-December
36
Financial strength
Walmex Balance Statement March 31, 2015 (Mx$ million)
Assets
Cash
Acct’s receivable
(Banco Walmart)
Inventories
Fixed assets
& others
20,799
43,210
45,264
Suppliers
Acct’s payable
(Banco Walmart)
170,227
TOTAL $
37
Liabilities &
Shareholders’ Equity
193,080
236,290
Shareholders’
equity & others
Growth Program 2015
5.4%
Sales Area Growth
2.4%
2.1%
Total Walmex
Additional million sq. ft.
1.7 Sales area
38
Mexico
Central
America
Competitors
Selected self-service competitors
Listed on the MSE
2014 Sales
(Mx$ bn)
Private
101.8
71.4
47.9
40
ANTAD: Self-service and Department Stores
Association
2014
Mx $1,184 billion in sales
+100 Members
266.9 million sq. ft.
% Participation
to sales
41
Self-service
Department
Specialized
60
19
21
Informal market remains a large competitor
42
Associates
2014 highlights:
• $85 million pesos invested in training
• 1.5 average training days per associate
• 33% of management positions are filled by women
43
Community support
2014 highlights:
• 13,507 small producers
developed and selling
their products to Walmex
• 63,300 people
benefitted in disaster
relief program in Mexico
• 133,850 associates
participated as volunteers
44
Environmental commitment and success
2014 highlights:
• Mx$ 874 million in savings from
sustainability initiatives
• 42 million of kWh saved through
energy efficiency initiatives in our
stores
• 8% less water used at comp stores
in Mexico
• 5 renewable energy projects that
feed 49% of our stores in Mexico
45
Walmex resources
 Investor Relations:
www.walmex.mx
Corporate:
www.walmartmexicoycam.com.mx
 Online & sales:
www.superama.com.mx
www.walmart.com.mx
 Other business formats:
www.sams.com.mx
www.suburbia.com.mx
www.bancowalmart.com.mx
46