Company Overview (BMV: Walmex) August 31, 2015

Transcription

1 Company Overview (BMV: Walmex) August 31, 2015

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 30 Competitors 36 Walmex Resources 43 3

4 History of Walmex

5 History: founded in City with Walmex presence First Aurrerá First Superama First Vips First Bodega Aurrerá First Suburbia Cifra starts trading on the Mexican Stock Exchange 5

6 History: Walmart s first international business & Cities with Walmex presence Joint venture between Cifra and Wal-Mart Stores, Inc. First Sam s Club in Mexico City First Walmart Supercenter in Mexico City 1997 Stores, Inc. STOCK MEXICAN EXCHANGE Wal-Mart Stores, Inc. acquires majority position in Cifra - Tender offer on the MSE 6

7 History: EDLP successfully introduced into Mexico Cities with Walmex presence Introduction of EDLP Walmart de México Foundation created First Mi Bodega Wal-Mart Stores, Inc. acquires 33% of the shares of CARHCO (Central American Retail Holding Company) 2007 Superama.com.mx Online grocery sales pilot 2006 Wal-Mart Stores, Inc. increases its holding to 51% of CARHCO License issued to operate a bank in Mexico 7

8 History: Bodegas expansion and incorporation of Central America 224 Cities with Walmex presence First Bodega Aurrerá Express Walmart de México acquires 100% of Walmart Centroamérica First Walmart Supercenter in Central America (Honduras) Walmart de México y Centroamérica sells its Restaurant Division to Alsea Walmart.com.mx launches 2015 Walmart de México y Centroamérica sells its Bank to Inbursa 8

9 Continuous profitable growth CAGR : 12.4% Sales (Mx$ billion) 437.7* EBITDA (Mx$ billion) CAGR: : 13.7% 42.9* * Walmex fiscal year: January-December

10 Growth across multiple formats Total Sales (Mx$ billion) % CAGR 16.3% * Total Sales (Mx$ billion) % CAGR 12.3% * Total Sales (Mx$ billion) % CAGR 8.8% * Total Sales (Mx$ billion) % CAGR 13.8% * Total Sales (Mx$ billion) % CAGR 6.8% * * Walmex fiscal year: January-December 10

11 Walmex Today

12 Walmex: Listed on the Mexican Stock Exchange Wal-Mart Stores, Inc. 70% 30% ADR: WMMVY OTCQX Market Cap: Mx$ 701 bn 1 Weight on the MSE index: 7.84% 2 nd most traded stock on the MSE As of August 31, 2015 Mexican Stock Exchange Sustainable Index

13 Company description Sales (Mx$ billion) Units Countries Cities Business formats e-commerce sites Distribution centers Associates (thousand) As of August 31, , * ** Contribution to 2014 sales Mexico 85.9% Central America 14.1% Costa Rica El Salvador Guatemala Honduras Nicaragua * Last 12 months to August 31, 2015 ** As of June 30,

14 Basic general merchandise, food and household items at the best prices. Value Driver: Price % of 2014 Walmex sales Customer target Cities* Mexico Central America Operating units* Mexico Central America 42.3 D, E , SQ. FT. SKUs Proposition Bodegas 45,600 32,000 Weekly shopping 12,700 11,200 Small towns Tiendas de Descuento 3,850 4,400 Fill-in trip 14 * As of August 31, 2015

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 2014 Walmex sales Average sq. ft. SKUs Customer target ,400 90,000 B, C, D+ Cities* Prototypes 88 3 Operating units* Mexico Central America * As of August 31, 2015

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 Membership warehouse clubs focused on businesses and high income households. Value Drivers: Price leader, volume, new and unique merchandise % of 2014 Walmex sales Average sq. ft. SKUs ,300 4,500 Customer target A, B, C+, Negocios Cities* Prototypes Operating units* Mexico Central America * As of August 31, 2015

19 Business Member Individual Member 19

20 Supermarkets Supermarkets Neighborhood located supermarkets in residential with areas outstanding fresh and food departments at reasonable prices. Value Drivers: Quality, convenience and service % of 2014 Walmex sales Average sq. ft. SKUs Customer target ,150 30,000 A, B, C+ Cities* Prototypes Operating units* Mexico Central America * As of August 31, 2015

21 Local format branding Costa Rica Nicaragua Guatemala & Honduras Mexico El Salvador 21

22 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 ,500 C+, D Cities* Prototypes Operating units* Mexico * As of August 31, 2015

23 23

24 Superama.com.mx: online grocery sales leader Web page Mobile Apps 24 Source: Euromonitor International Call Center

25 Walmart.com.mx: online general merchandise Differentiated catalogue Delivery Audio Auto Baby Books Cell Phones Computers Electronics Health & Beauty Home Household Appliances Categories Jewelry & Accessories Musical Instruments Pets Photography Smart House Sports Toys Video Games Furniture Patio & Garden 25

26 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

27 Income Level Flexible multiformat operation Flexible Prototypes D E B C D+ A B C+ C+ D Sales Area (Sq. Ft.) 20,000 40,000 60,000 80, ,000 27

28 Regional store presence 573 Cities with Walmex presence 28 As of August 31, 2015

29 Efficient distribution network Monterrey (2) 24 Distribution Centers Culiacán (1) Mexico City (6) Guadalajara (2) San Pedro (2) Villahermosa (2) Guatemala (2) Managua (1) San José (2) Amatitlán (1) El Salvador (2) Tegucigalpa (1) 29

30 Financial Information

31 Walmex: 2014 Results* % Increase (Mx$ million) $ % $ % Total revenues 440, , Gross margin 97, , General expenses 64, , Operating income 34, , EBITDA 42, , Net income before disc. operations 25, , Net income 30, , * Walmex fiscal year: January-December 31

32 Walmex: 2Q15 Results* (Mx$ million) Total revenues Gross margin General expenses Earnings before Other income Other income Operating income EBITDA Net income before disc. operations Net income 2Q15 $ % $ % 114,398 24,888 17,218 7, ,821 10,293 5,401 6, ,123 22,579 15,172 2Q14 % 7, ,332 9,646 5,128 10, Growth * Walmex fiscal year: January-December

33 Mexico: 2014 Results* % Increase (Mx$ million) $ % $ % Total revenues 378, , Gross margin 83, , General expenses 52, , Operating income 30, , EBITDA 38, , * Walmex fiscal year: January-December 33

34 Mexico: 2Q15 Results* (Mx$ million) Total revenues Gross margin General expenses Earnings before Other income Other income Operating income EBITDA 2Q15 $ % $ % 96,126 20,705 13,865 6, ,003 9, ,521 19,249 12,498 6, ,667 8,632 2Q14 % Growth * Walmex fiscal year: January-December

35 Central America: 2014 Results* % Increase (Mx$ million) $ % $ % In peso terms On a constant currency basis Total revenues 62, , Gross margin 13, , General expenses 11, , Operating income 2, , EBITDA 4, , * Walmex fiscal year: January-December 35

36 Central America: 2Q15 Results* (Mx$ million) Total revenues Gross margin General expenses Earnings before Other income Other income Operating income EBITDA 2Q15 18,272 4,183 3, , Q14 $ % $ % 14,602 3,330 2, , In peso terms % Growth On a constant currency basis * Walmex fiscal year: January-December

37 Financial strength Walmex Balance Statement June 30, 2015 (Mx$ million) Cash Inventories Assets 18,819 44,851 Liabilities & Shareholders Equity 44,692 Suppliers Fixed assets & others 166, ,213 Shareholders equity & others TOTAL $ 229,905 37

38 Growth Program 2015 Sales Area Growth 5.4% 2.4% 2.1% Total Walmex Additional million sq. ft. 1.7 Sales area Mexico Central America 38

39 Competitors

40 Selected self-service competitors Listed on the MSE 2014 Sales (Mx$ bn) Private

41 ANTAD: Self-service and Department Stores Association 2014 Mx $1,184 billion in sales +100 Members million sq. ft. Self-service Department Specialized % Participation to sales 41

42 Informal market remains a large competitor 42

43 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

44 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

45 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

46 Walmex resources Investor Relations: Corporate: Online & sales: Other business formats: