March 31, Company Overview. (MSE: Walmex)

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Transcription:

March 31, 2017 Company Overview (MSE: Walmex)

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 4 Walmex Today 11 Financial Information 29 Competitors 35 Walmex Resources 42 3

4 History of Walmex

History: founded in 1958 1958 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 1970 5

History: Walmart s first international business 1991 1997 2003 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 1993 1999 6

History: Bodegas expansion & incorporation of Central America 2004 2007 2010 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 2008 7

History: Sells its Restaurant Division, the Bank and Suburbia 2011 2014 2017 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 2015 8

Continuous profitable growth Sales (Mx$ billion) 528.5 EBITDA (Mx$ billion) 50.1 194.0 19.0 2006 2016 2006 2016 9 Walmex fiscal year: January-December

Growth across multiple formats Total Sales (Mx$ billion) CAGR 14.2% 235.7 CAGR 10.6% 145.5 62.5 53.2 2006 2016 2006 2016 CAGR 7.3% 107.4 CAGR 14.1% 38.0 53.3 10.2 2006 2016 2006 2016 10 Walmex fiscal year: January - December

11 Walmex Today

Walmex: Listed on the Mexican Stock Exchange Wal-Mart Stores, Inc. 70% 30% ADR: WMMVY OTCQX Market Cap: Mx$ 754 bn 1 Weight on the MSE index: 7.19% 3 rd most traded stock on the MSE Mexican Stock Exchange Sustainable Index 12 1 As of March 31, 2017

Company description As of March 31, 2017 Revenues (Mx$ billion) 541 * Units 3,028 Countries 6 Cities 610 Business formats 4 ecommerce sites 3 Distribution centers 23 Associates (thousand) +237 Mexico 81.3% Contribution to 2016 sales 18.7% Central America 13 * Last 12 months as of March 2017

Basic general merchandise, food and household items at the best prices. % of 2016 Walmex sales 44.8 Customer target D, E Cities* 592 Value Driver: Price Operating units* Mexico 1,762 Central America 617 SQ. FT. (average) SKUs (average) Units Approach 45,000 32,000 491 Weekly shopping 12,620 11,200 450 Small towns 3,800 4,400 1,438 Fill-in trip 14 * As of March 31, 2017

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 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 263 Central America 27 16 * As of March 31, 2017

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

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+ Cities* 45 Prototypes 2 Operating units* Mexico 95 Central America 93 18 * As of March 31, 2017

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

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 161 20 * As of March 31, 2017

Business Member Individual Member 21

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

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

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

25

Flexible multiformat operation Income Level Flexible Prototypes D, E B, C, D+ A, B, C+ C+, D 26 Sales Area (Sq. Ft.) 0 15,000 30,000 45,000 60,000 75,000 90,000

Regional store presence 610 Cities with Walmex presence Mexico 471 31 Honduras Guatemala 43 El Salvador 21 26 18 Nicaragua Costa Rica 27 * As of March 31, 2017

Efficient distribution network 2 2 23 Distribution Centers Culiacán Monterrey 2 Mexico City Guadalajara 5 2 Villahermosa Guatemala El Salvador Nicaragua 3 3 1 1 Honduras 2 Costa Rica 28 * As of March 31, 2017

29 Financial Information

Walmex: 1Q17 Results 1Q17 1Q16 % Growth (Mx$ millon) $ % $ % Total revenues 132,564 100.0 123,672 100.0 7.2 Gross margin 29,740 22.4 27,177 22.0 9.4 General expenses 20,008 15.1 17,973 14.5 11.3 Earnings before other income 9,732 7.3 9,204 7.4 5.7 Other income 165 0.1 70 0.1 135.4 Operating income 9,897 7.5 9,274 7.5 6.7 EBITDA 12,778 9.6 11,872 9.6 7.6 Income from continuing operations 7,061 5.3 6,539 5.3 8.0 Net income 7,130 5.4 6,718 5.4 6.1 30

Mexico: 1Q17 Results 1Q17 1Q16 % Growth (Mx$ million) $ % $ % Total revenues 105,813 100.0 100,797 100.0 5.0 Gross margin 23,366 22.1 21,891 21.7 6.7 General expenses 15,176 14.3 13,974 13.9 8.6 Earnings before other income 8,190 7.7 7,917 7.9 3.4 Other income 161 0.2 58 0.1 176.4 Operating income 8,351 7.9 7,975 7.9 4.7 EBITDA 10,558 10.0 10,037 10.0 5.2 31

Central America: 1Q17 Results 1Q17 1Q16 % Growth (Mx$ million) $ % $ % In peso terms On a constant currency basis Total revenues 26,751 100.0 22,875 100.0 16.9 5.6 Gross margin 6,374 23.8 5,286 23.1 20.6 8.9 General expenses 4,832 18.1 3,999 17.5 20.8 9.1 Earnings before Other income 1,542 5.8 1,287 5.6 19.8 8.1 Other income 4 0.0 12 0.1-65.0-68.5 Operating income 1,546 5.8 1,299 5.7 19.0 7.4 EBITDA 2,220 8.3 1,835 8.0 21.0 9.2 32

Financial strength Cash Inventories Balance sheet statement (March 31st 2017 Mx$ Million) TOTAL: $266,367 17,777 53,605 55,336 Suppliers Fixed assets and other 194,985 211,031 Shareholders equity and other Assets Liabilities & shareholders' equity 33

Growth Program 2016 (Mx$ billion) CAPEX (% Total) 14.7 14.0 12.7 12.5 14.3 ecommerce & Technology Logistics 6% 13% 37% New Stores 44% 2012 2013 2014 2015 2016 Existing Stores (Remodels & maintenance) 34

35 Competitors

Selected self-service competitors Listed on the MSE Revenues* (Mx$ billion) Private 150.0 90.3 15.2 36 * Last 12 months as of March 2017

ANTAD: Self-service and Department Stores Association March 2017* Mx $ 1,543 billion in sales Department 17% % Participation to sales 28% Specialized +100 Members 27.0 million sq. ft. Self-service 55% 37 * Last 12 months as of March 2017

Informal market remains a large competitor 38

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

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 03 113,411 associates, family members, and customers participated as volunteers 40

Environmental commitment and success 2016 highlights: 01 Mx$ 360 million in savings from sustainability initiatives 02 23.9 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

Walmex resources Investor Relations: www.walmex.mx Corporate: www.walmartmexicoycam.com.mx Online & sales: www.superama.com.mx www.walmart.com.mx www.sams.com.mx 42