43
Mexico City Wal-Mart Stores, Inc. (NYSE:WMT) & Walmart de México y Centroamérica (BMV:Walmex) February 24 - 25, 2014 2014 International Meeting for the Investment Community
Mexico City
Wal-Mart Stores, Inc. (NYSE:WMT) &
Walmart de México y Centroamérica (BMV:Walmex)
February 24 - 25, 2014
2014 International Meeting for the
Investment Community
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.
3
Table of contents
History of Walmex 4
Walmex Today 11
Financial Information 29
Competitors 35
Walmex Resources 43
History of Walmex
5
History: founded in 1958
1 City with Walmex presence
First Vips
First Suburbia
First Aurrerá
First Superama
First Bodega Aurrerá
Cifra starts trading on the
Mexican Stock Exchange
1958
1959
1964
1970
1977
1958
6
First Walmart Supercenter
in Mexico City
History: Walmart’s first international business
11 Cities with Walmex presence
First Sam’s Club
in Mexico City
Joint venture
between Cifra and
Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc.
acquires majority position
in Cifra - Tender offer on the MSE
1991
1993
1997
1991
&
Stores, Inc. STOCK MEXICAN
EXCHANGE
7
First Mi Bodega
Introduction of EDLP
License issued to operate
a bank in Mexico
History: EDLP successfully introduced into Mexico
Walmart de México Foundation created
1999
2003
2004
2007
2005
38 Cities with Walmex presence
Wal-Mart Stores, Inc. acquires
33% of the shares of CARHCO
(Central American Retail
Holding Company)
2006 Wal-Mart Stores, Inc. increases
its holding to 51% of CARHCO
1999
2005
Superama.com.mx
Online grocery sales pilot
8
History: “Bodegas” expansion and incorporation of
Central America
First Walmart Supercenter
in Central America
(Honduras)
2011
2013
First Bodega Aurrerá Express
2008
2008
224 Cities with Walmex presence
Walmart de México acquires
100% of Walmart Centroamérica
2010
Walmart.com.mx launches
9
Continuous profitable growth
2003 20132003 2013
EBITDA (Mx$ billion)
CAGR: : 15.5%
Sales (Mx$ billion)
CAGR : 13.6%
40.2*
118.0 9.5
420.6*
* Walmex fiscal year: January-December 2013
10
Growth across multiple formats
6.1
13.5*
2003 2013
% CAGR 8.3%
32.1
112.0*
% CAGR 13.3%
2003 2013
33.9
173.6*
% CAGR 17.7%
2003 2013
34.6
93.3*
2003 2013
% CAGR 10.4%
7.3
28.1*
% CAGR 14.5%
2003 2013
Total Sales (Mx$ billion)
Total Sales (Mx$ billion) Total Sales (Mx$ billion) Total Sales (Mx$ billion)
Total Sales (Mx$ billion)
* Walmex fiscal year: January-December 2013
Walmex Today
12
Walmex: Listed on the Mexican Stock Exchange
ADR: WMMVY OTCQX
Wal-Mart Stores, Inc. 70% 30%
Mexican Stock Exchange
Sustainable Index
• Market Cap: Mx$ 531 bn1
• Weight on the MSE index: 7.05%
• 3rd most traded stock on the MSE
1. As of February 12, 2014
13
Annual sales (Mx$ billion)
Units
Countries
Cities
Business formats
e-Commerce sites
Distribution centers
Associates (thousand)
420.6*
2,861
6
540
5
2
24
+225
Company description
December 31,2013
86.5%
Mexico
Central America**
13.5%
Contribution to
2013 sales*
* Walmex fiscal year: January-December 2013
**Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
14
Value Driver: Price
Basic general merchandise, food and household
items at the best prices.
41.3 D, E
% of Walmex sales
Customer target
Cities
– Mexico
– Central America
Operating units
– Mexico
– Central America
SQ. FT. SKUs Proposition
45,800 32,000 Weekly shopping
11,400 11,200 Small towns
3,800 4,400 Fill-in trip Discount Stores
“Bodegas”
1,589 541
420 111
15
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.
Mama Lucha
16
% of Walmex sales
Average sq. ft.
SKUs
Customer target
Cities
Prototypes
Operating units
– Mexico
– Central America
Value Drivers: Price and assortment
Widest assortment of goods at every day low prices.
26.6
82,900
90,000
B, C, D+
87
3
243
20
17
Qualities: Friendly, curious, helpful,
observer, good listener, fun,
responsible, practical, intelligent,
ally, accomplice.
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.
Carrito
18
% of Walmex sales
Average sq. ft.
SKUs
Customer target
Cities
Prototypes
Operating units
– Mexico
– Central America
Value Drivers: Price leader, volume, new and unique merchandise
Membership warehouse clubs focused on
businesses and high income households.
22.2
76,700
4,500
A, B, C+, Business
87
4
156
1
19
Business Member Individual Member
20
% of Walmex sales
Average sq. ft.
SKUs
Customer target
Cities
Prototypes
Operating units
– Mexico
– Central America
Supermarkets located in residential areas
6.7
16,100
30,000
A, B, C+
Value Drivers: Quality, convenience and service
Neighborhood supermarkets with outstanding
fresh and food departments at reasonable prices.
45
2
92
100
Supermarkets
21
Local format branding Costa Rica Nicaragua
Guatemala & Honduras
El Salvador
Mexico
22
% of Walmex sales
Average sq. ft.
Customer target
Cities
Prototypes
Operating units
– Mexico
3.2
42,800
C+, D
Value Drivers: Fashion with the best value, price-quality ratio
Basic fashion for the entire family.
42
3
109
23
24
Superama.com.mx: online grocery sales leader
Web page
Mobile Apps
Call Center
Source: Euromonitor International
25
Walmart.com.mx: online general merchandise
Delivery
Categories
•Home
•Household
Appliances
•Toys
•Pets
•Health & Beauty
•Video Games
•Audio
•Auto
•Baby
•Cell Phones
•Computers
•Sports
•Electronics
Differentiated catalogue
26
Flexible multiformat operation
0 20,000 40,000 60,000 80,000 100,000
D
E
B
C
D+
A
B
C+
Sales Area (Sq. Ft.)
Flexible Prototypes
Inco
me L
evel
C+
D
27
Regional store presence
540 Cities with Walmex presence
As of December 31, 2013
28
Efficient distribution network
Monterrey (2)
Guadalajara (2)
Mexico City (6)
Villahermosa (2)
Culiacán (1)
Amatitlán (1)
Guatemala (2)
El Salvador (1)
San Pedro (2)
Tegucigalpa (1)
Managua (2)
San José (2)
24 Distribution
Centers
Financial Information
30
Walmex: 2013 Results*
* Walmex fiscal year: January-December 2013
2012 % Increase
2013
Total revenues
Gross margin
General expenses
Operating income
EBITDA
Net Income
% % $ $ (Mx million)
% Increase ex one-time store lease
expense
425,161
93,624
62,102
31,532
40,222
22,713
100.0
22.0
14.6
7.4
9.5
5.3
412,060
90,228
58,541
31,422
39,860
23,269
100.0
21.9
14.2
7.6
9.7
5.6
3.2
3.8
6.1
0.3
0.9
-2.4
3.2
3.8
5.2
2.0
2.2
-0.8
31
Mexico: 2013 Results*
* Walmex fiscal year: January-December 2013
2012 % Increase
2013
Total revenues
Gross margin
General expenses
Operating income
EBITDA
% % $ $ (Mx million)
% Increase ex one-time store lease
expense
367,731
80,785
51,394
29,416
36,778
100.0
22.0
14.0
8.0
10.0
355,798
78,563
48,422
30,336
37,088
100.0
22.1
13.6
8.5
10.4
3.4
2.8
6.1
-3.0
-0.8
3.4
2.8
5.3
-1.6
0.3
32
Central America: 2013 Results*
* Walmex fiscal year: January-December 2013
2012 % Increase 2013
Total revenues
Gross margin
General expenses
Operating income
EBITDA
% % $ $ (Mx million) In peso terms
On a constant currency basis
% Increase ex one-time store lease expense
In peso terms
On a constant currency basis
57,430
12,839
10,708
2,116
3,444
100.0
22.4
18.6
3.7
6.0
56,262
11,665
10,119
1,460
2,772
100.0
20.7
18.0
2.6
4.9
2.1
10.1
5.8
45.0
24.3
5.7
14.0
9.6
50.1
28.7
2.1
10.1
4.8
52.1
28.0
5.7
14.0
8.5
57.5
32.6
33
Financial strength
Walmex Balance Statement December 31, 2013 (Mx$ million)
Cash
Assets Liabilities &
Shareholders’ Equity
Acct’s receivable (Banco Walmart)
Inventories
Fixed assets & others
Suppliers
Acct’s payable (Banco Walmart)
Shareholders’ equity & others
23,359
36,359
41,881 3,337
152,060
TOTAL $ 230,262
169,245
3,989
21,129
43,795
47,609 4,784
160,554 177,845
4,808
34
Discount Stores
Supermarkets
“Bodegas” 65
118
19
14
5
10
4
235
Openings 2013
7.2%
Mexico
6.1%
Central America
Walmex sales floor growth
4.7 million sq. ft.*
7.1%
* 6.7 million total box sq. ft.
Competitors
36
Selected self-service competitors
Listed on the MSE Sales* (Mx$ bn)
105.5
65.7
46.7
* Last 12 months to September 30, 2013
Private
37
Mx $1,128 billion in sales
+100 Members
273.4 million sq. ft.
Self-service Department Specialized
% Participation
to sales 61.2 18.4 20.4
ANTAD: Self-service and Department Stores
Association
38
Informal market remains a large competitor
39
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
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
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
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
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
