Company Overview (BMV: Walmex) April 30, 2014

Transcription

1 Company Overview (BMV: Walmex) April 30, 2014

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 36 Walmex Resources 44 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) 2013 Walmart.com.mx launches 8

9 Continuous profitable growth CAGR : 13.6% Sales (Mx$ billion) 420.6* EBITDA (Mx$ billion) CAGR: : 15.5% 40.2* * Walmex fiscal year: January-December

10 Growth across multiple formats Total Sales (Mx$ billion) 173.6* Total Sales (Mx$ billion) 112.0* Total Sales (Mx$ billion) 93.3* % CAGR 17.7% % CAGR 13.3% % CAGR 10.4% Total Sales (Mx$ billion) % CAGR 14.5% 28.1* Total Sales (Mx$ billion) % CAGR 8.3% 13.5* * Walmex fiscal year: January-December

11 Walmex Today

12 Walmex: Listed on the Mexican Stock Exchange Wal-Mart Stores, Inc. 70% 30% ADR: WMMVY OTCQX Market Cap: Mx$ 582 bn 1 Weight on the MSE index: 6.28% 3rd most traded stock on the MSE As of April 30, 2014 Mexican Stock Exchange Sustainable Index

13 Company description Sales (Mx$ billion) Units Countries Cities Business formats e-commerce sites Distribution centers Associates (thousand) * Last 12 months to March 31, 2014 ** As of March 31, 2014 As of April 30, , * ** Contribution to 2013 sales Mexico 86.5% Central America** 13.5% ** Costa Rica El Salvador Guatemala Honduras Nicaragua 13

14 Basic general merchandise, food and household items at the best prices. Value Driver: Price % of 2013 Walmex sales Customer target Cities Mexico Central America Operating units Mexico Central America 41.3 D, E , SQ. FT. SKUs Proposition Bodegas 45,800 32,000 Weekly shopping 11,400 11,200 Small towns Discount Stores 3,800 4,400 Fill-in trip 14

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 2013 Walmex sales Average sq. ft. SKUs Customer target ,900 90,000 B, C, D+ Cities Prototypes Operating units Mexico Central America

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 2013 Walmex sales Average sq. ft. SKUs ,700 4,500 Customer target A, B, C+, Business Cities Prototypes Operating units Mexico Central America

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 2013 Walmex sales Average sq. ft. SKUs Customer target ,100 30,000 A, B, C+ Cities Prototypes Operating units Mexico Central America

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 ,800 C+, D Cities Prototypes Operating units Mexico

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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 Audio Auto Baby Household Appliances Jewelry & Accessories Delivery Books Cell Phones Computers Electronics Health & Beauty Musical Instruments Pets Photography Smart House Sports Home Categories Toys Video Games 25

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

27 Regional store presence 550 Cities with Walmex presence As of April 30,

28 Efficient distribution network Monterrey (2) 24 Distribution Centers Culiacán (1) Mexico City (6) Guadalajara (2) San Pedro (2) Villahermosa (2) Guatemala (2) Managua (2) San José (2) Amatitlán (1) El Salvador (1) Tegucigalpa (1) 28

29 Financial Information

30 Walmex: 2013 Results* (Mx million) 2013 $ % $ % 2012 % Increase % Increase ex one-time store lease expense Total revenues 425, , Gross margin 93, , General expenses 62, , Operating income 31, , EBITDA 40, , Net Income 22, , * Walmex fiscal year: January-December

31 Mexico: 2013 Results* (Mx million) 2013 $ % $ % 2012 % Increase % Increase ex one-time store lease expense Total revenues 367, , Gross margin 80, , General expenses 51, , Operating income 29, , EBITDA 36, , * Walmex fiscal year: January-December

32 Central America: 2013 Results* (Mx million) 2013 $ % $ % 2012 % Increase In peso terms On a constant currency basis % Increase ex one-time store lease expense In peso terms On a constant currency basis Total revenues 57, , Gross margin 12, , General expenses 10, , Operating income 2, , EBITDA 3, , * Walmex fiscal year: January-December

33 Walmex: 1Q14 Consolidated Results (Mx$ million) 1Q14 $ % $ % 1Q13 % Increase Total revenues 102, , Gross margin 22, , General expenses 15, , Operating income 6, , EBITDA 9, , Net Income 4, ,

34 Financial strength Walmex Balance Statement March 31, 2014 (Mx$ million) Cash Acct s receivable (Banco Walmart) Inventories Assets 20,769 4,805 40,842 Liabilities & Shareholders Equity 38,611 5,650 Suppliers Acct s payable (Banco Walmart) Fixed assets & others 157, ,078 Shareholders equity & others TOTAL $ 224,339 34

35 Growth Program 2014 Sales area growth ~5.2% Total Walmex Additional million sq. ft. 3.7 Sales area 5.2 Total box Bodegas Discount Stores Supermarket Estimated Distribution 46% 23% 12% 11% 7% 1% 100% 35

36 Competitors

37 Selected self-service competitors Listed on the MSE Sales* (Mx$ bn) Private * Last 12 months to December 31,

38 ANTAD: Self-service and Department Stores Association Mx $1,128 billion in sales +100 Members million sq. ft. Self-service Department Specialized % Participation to sales * As of December 31,

39 Informal market remains a large competitor 39

40 Associates 2013 highlights: $98 million pesos invested in training 1.5 average training days per associate 31% of management positions are filled by women 40

41 Community support 2013 highlights: $504.3 million pesos channeled to the communities of the region 139,045 volunteer associates 60,000 women participated in the first two years in the program Women Can Count on Us 41

42 Community support 1,888 tons channeled to the Mexican Red Cross for disaster relief Supporting nutrition through 333 food banks 5,859 small producers commercialized their products at our stores 42

43 Environmental commitment and success 2013 highlights: 71 million of kwh saved through energy-efficient use of lighting equipment and systems. Over 245,000 tons of organic waste recycled or transformed. 1,280 tons of plastic saved by the Green Bag program in Mexico. Over 106 million gallons of water saved by water-efficient equipment in our stores in Mexico. 43

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