September 30, Company Overview. (MSE: Walmex)

Transcription

1 September 30, 2017 Company Overview (MSE: Walmex)

2 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

3 Table of contents History of Walmex 4 Walmex Today 11 Financial Information 29 Competitors 35 Walmex Resources 42 3

4 4 History of Walmex

5 History: founded in Aurrerá start operations 1964 Vips Restaurants start operations 1977 Cifra starts trading on the Mexican Stock Exchange Superama start operations 1959 Bodega Aurrerá & Suburbia start operations

6 History: Walmart s first international business Joint venture between Cifra and Wal-Mart Stores, Inc. & Wal-Mart Stores, Inc. acquires majority position in Cifra - Tender offer on the MSE Walmart de México Foundation created Walmart Supercenter start operations Stores, Inc. Introduction of Every Day Low Prices

7 History: Bodegas expansion & incorporation of Central America Mi Bodega start operations License issued to operate a bank in Mexico Walmart de México acquires 100% of Walmart Centroamérica Superama.com.mx Online grocery sales pilot Wal-Mart Stores, Inc. acquires 33% of the shares of CARHCO (Central American Retail Holding Company) 2005 Bodega Aurrerá Express expansion

8 History: Sells its Restaurant Division, the Bank and Suburbia First Walmart Supercenter in Central America (Honduras) Walmart de México y Centroamérica sells its restaurant division to Alsea Walmart de México y Centroamérica sells Suburbia to Liverpool Walmart.com.mx launches 2013 Walmart de México y Centroamérica sells its bank to Inbursa

9 Continuous profitable growth Sales (Mx$ billion) EBITDA (Mx$ billion) Walmex fiscal year: January-December

10 Growth across multiple formats Total Sales (Mx$ billion) CAGR 14.2% CAGR 10.6% CAGR 7.3% CAGR 14.1% Walmex fiscal year: January - December

11 11 Walmex Today

12 Walmex: Listed on the Mexican Stock Exchange Wal-Mart Stores, Inc. 70% 30% ADR: WMMVY OTCQX Market Cap: Mx$ 755 bn 1 Weight on the MSE index: 6.94% 3 rd most traded stock on the MSE Mexican Stock Exchange Sustainable Index 12 1 As of September 30, 2017

13 Company description As of September 30, 2017 Revenues (Mx$ billion) 563 * Units 3,076 Countries 6 Cities 623 Business formats 4 ecommerce sites 3 Distribution centers 23 Associates (thousand) +239 Mexico 81.3% Contribution to 2016 sales 18.7% Central America 13 * Last 12 months as of September 2017

14 Basic general merchandise, food and household items at the best prices. % of 2016 Walmex sales 44.8 Customer target D, E Cities* 607 Value Driver: Price Operating units* Mexico 1,782 Central America 641 SQ. FT. (average) SKUs (average) Units Approach 45,000 32, Weekly shopping 12,620 11, Small towns 3,800 4,400 1,465 Fill-in trip 14 * As of September 30, 2017

15 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

16 Widest assortment of goods at Every Day Low Prices. Value Drivers: Price and assortment % of 2016 Walmex sales 27.6 SQ. FT. (average) 80,900 SKUs 90,000 Customer target B, C, D+ Cities* 93 Prototypes 4 Operating units* Mexico 266 Central America * As of September 30, 2017

17 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

18 Neighborhood supermarkets with outstanding fresh and food departments at reasonable prices. Value Drivers: Quality, convenience and service % of 2016 Walmex sales 7.2 SQ. FT. (average) 16,100 SKUs 30,000 Customer target A, B, C+, C Cities* 45 Prototypes 2 Operating units* Mexico 94 Central America * As of September 30, 2017

19 Local format branding Costa Rica Nicaragua Mexico El Salvador Guatemala & Honduras 19

20 Membership warehouse clubs focused on businesses and high income households. Value Drivers: Price leader, volume, new and unique merchandise % of 2016 Walmex sales 20.4 SQ. FT. (average) 76,700 SKUs 4,500 Customer target A, B, C+, Business Cities* 86 Prototypes 4 Operating units* Mexico * As of September 30, 2017

21 Business Member Individual Member 21

22 Superama.com.mx: online grocery sales leader Web page Delivery Mobile Apps 22 Call Center

23 Walmart.com.mx: online general merchandise Differentiated catalogue Delivery Categories Audio Auto & tires Baby & toddler Books Cell Phones Computers & tablets T V s & video Sports Cameras Home Musical Instruments Jewelry & accessories Toys Books Pets Health & Beauty Consumer Appliances Video Games Electronics Patio & Garden Furniture 23

24 Walmart.com.mx: groceries and perishables Categories Meal Solution, grains & pasta, snacks Pharmacy, Health & Beauty Beverages, Wine & liquor Cleaning Supplies & Pets Frozen Food Produce Dairy, Eggs & Cheese Meat, Seafood & Poultry Baby & toddler Deli Bakery & Bread 24

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26 Flexible multiformat operation Income Level Flexible Prototypes D, E B, C, D+ A, B, C+ A, B, C+, C 26 Sales Area (Sq. Ft.)

27 Regional store presence 623 Cities with Walmex presence Mexico Honduras Guatemala 45 El Salvador Nicaragua Costa Rica 27 * As of September 30, 2017

28 Efficient distribution network Distribution Centers Culiacán Monterrey 2 Mexico City Guadalajara 5 2 Villahermosa Guatemala El Salvador Nicaragua Honduras 2 Costa Rica 28 * As of September 30, 2017

29 29 Financial Information

30 Walmex: 3Q17 Results 3Q17 3Q16 % Growth (Mx$ millon) $ % $ % Total revenues 136, , Gross margin 30, , General expenses 20, , Earnings before other income 10, , Other income (184) (0.1) (133) (0.1) 38.1 Operating income 10, , EBITDA 13, , Income from continuing operations 8, , Net income 8, , (13.7) 30

31 Mexico: 3Q17 Results 3Q17 3Q16 % Growth (Mx$ million) $ % $ % Total revenues 112, , Gross margin 24, , General expenses 15, , Earnings before other income 9, , Other income (181) (0.2) (160) (0.2) 13.1 Operating income 9, , EBITDA 11, ,

32 Central America: 3Q17 Results 3Q17 3Q16 % Growth (Mx$ million) $ % $ % In peso terms On a constant currency basis Total revenues 24, , Gross margin 5, , General expenses 4, , Earnings before Other income 1, , Other income (3) (0.0) (110.6) (111.3) Operating income 1, , EBITDA 2, ,

33 Financial strength Cash Inventories Balance sheet statement (September Mx$ Million) TOTAL: $270,570 26,444 64,006 57,548 Suppliers Fixed assets and other 186, ,564 Shareholders equity and other Assets Liabilities & shareholders' equity 33

34 Growth Program 2016 (Mx$ billion) CAPEX (% Total) ecommerce & Technology Logistics 6% 13% 37% New Stores 44% Existing Stores (Remodels & maintenance) 34

35 35 Competitors

36 Selected self-service competitors Listed on the MSE Revenues* (Mx$ billion) Private * Last 12 months as of September 2017

37 ANTAD: Self-service and Department Stores Association June 2017* Mx $ 1,601 billion in sales Department 19% % Participation to sales 27% Specialized +100 Members 27.0 million sq. ft. Self-service 54% 37 * Last 12 months as of September 2017

38 Informal market remains a large competitor 38

39 Associates 2016 highlights: 01 $110 million pesos invested in training 02 27,012 associates were promoted 03 33% of management positions are filled by women 39

40 Community support 2016 highlights: 01 17,629 small producers developed and selling their products to Walmex 02 13,405 people benefitted in disaster relief program in Mexico ,411 associates, family members, and customers participated as volunteers 40

41 Environmental commitment and success 2016 highlights: 01 Mx$ 360 million in savings from sustainability initiatives million of kwh saved through energy efficiency initiatives in our stores 03 16% less water used in Mexico 04 5 projects of renewable energy that feed 72% of our stores in Mexico 05 The zero waste objective 73% progress in Mexico & 60% in Central America 41

42 Walmex resources Investor Relations: Corporate: Online & sales: