Wal-Mart de México, S.A.B. de C.V. (WALMEX)

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Wal-Mart de México, S.A.B. de C.V. (WALMEX) Webcast Results for the Third Quarter 2017 Mexico City, October 19 th, 2017 (FREE TRANSLATION, NOT TO THE LETTER) PILAR DE LA GARZA: Good afternoon.

On today s call with me are Guilherme Loureiro, President and Chief Executive Officer for Walmart de México y Centroamérica, and Olga González, Chief Financial Officer.

1 Wal-Mart de México, S.A.B. de C.V. (WALMEX) Webcast Results for the Third Quarter 2017 Mexico City, October 19 th, 2017 (FREE TRANSLATION, NOT TO THE LETTER) PILAR DE LA GARZA: Good afternoon. This is Pilar de la Garza, Investor Relations Senior Director for Walmex. Thank you for joining us today to review the results for the third quarter On today s call with me are Guilherme Loureiro, President and Chief Executive Officer for Walmart de México y Centroamérica, and Olga González, Chief Financial Officer. The date of this call is October 19, Today s call is being recorded, and will remain available at Before we start, let me remind you that the contents of this call 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 call 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 s 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. Now, I would like to turn it over to our CEO Guilherme Loureiro. GUILHERME LOUREIRO: Thank you Pilar and good afternoon everyone, thank you for joining us to review Walmex s third quarter 2017 results and progress against our strategy. As many of you may know, in September earthquakes impacted several states of Mexico. In these unfortunate events we stood in support of Mexico by donating $40 million pesos which will be delivered to the affected communities, plus $10 million pesos received through the US Walmart Foundation. We also delivered over 300 tons of necessities through the armed forces and enabled 309 collection centers in stores and clubs. 1

Now, moving to the quarterly results We delivered another solid quarter and are pleased with the healthy performance we are seeing in all countries, regions, formats and merchandise divisions we

I am encouraged that our price gap has widened during the year and, according to our Customer Experience Index, we are delivering a more enjoyable shopping experience by running better stores.

Please consider that when I talk about Central America, I will refer to figures on a constant currency basis. In the third quarter Walmex delivered 7.8% total revenues growth: Mexico grew 8.

2 Now, moving to the quarterly results We delivered another solid quarter and are pleased with the healthy performance we are seeing in all countries, regions, formats and merchandise divisions we operate. Since the beginning of this year, you ve heard me say that our focus is on having undisputable price leadership and operating with excellence. I am encouraged that our price gap has widened during the year and, according to our Customer Experience Index, we are delivering a more enjoyable shopping experience by running better stores. I would like to begin by discussing sales performance, and then Olga will cover the financial details of the quarter. Please consider that when I talk about Central America, I will refer to figures on a constant currency basis. In the third quarter Walmex delivered 7.8% total revenues growth: Mexico grew 8.9% and Central America 10.2%. During the first nine months of the year, total Walmex revenues grew 8.1%: Mexico achieved a 7.5% growth and Central America 8.8%. Growth continues to be driven by a strong same store sales performance. In the third quarter, same stores sales in Mexico grew 7.2% and in Central America 6.0%. During the first nine months of the year, same store sales grew 6.2% in Mexico and 4.9% in Central America. I would like to highlight that our two year stack growth for total revenue for the nine months was 16.7% in both Mexico and Central America. In terms of same store sales growth for the nine months, our two year stack was 14.3% in Mexico and 9.8% in Central America, which clearly demonstrates the progress we have made in executing our strategy. 2

We are driving a healthy and consistent growth across all the countries and regions in which we operate.

In Central America, Nicaragua was the country with the highest growth, while Guatemala delivered a lower but yet solid growth.

Now, let s look at the performance by format in Mexico: Sam s Club delivered the highest same store sales growth.

3 We are driving a healthy and consistent growth across all the countries and regions in which we operate. Despite a tough competitive environment and increased promotional activity, during the third quarter Mexico delivered a 7.2% same store sales increase. In Central America, Nicaragua was the country with the highest growth, while Guatemala delivered a lower but yet solid growth. We also drove broad-based growth across all regions in Mexico; the Northern region continues to lead in same store sales growth, followed by the Central, South and Metro region. Now, let s look at the performance by format in Mexico: Sam s Club delivered the highest same store sales growth. In our priority of growing the member base, we continue to add value to the membership not just by having the best value on the merchandise, we also expanded the benefits program to include savings in selected travel services when using the Benefits Membership. We continued to make progress in integrating digital efforts to transform how members shop and interact with our clubs through the Online Shopping Days event we celebrated in July. Walmart Supercenter posted strong growth. The repositioning of our perishables event Martes de Frescura and a solid execution of seasonal events such as the summer campaign Precios Chaparros and Back to School were key to the format s solid performance in the quarter. In Bodega Aurrera we launched the first online radio station of retail in Mexico Vivo Radio Bodega and we reinforced our private brand offer in order to continue delivering the best prices and value to our customers, private brand penetration increased by 130bps in the format. In Superama we implemented the Días de Verano summer campaign with great results as well as strategic initiatives in key departments such as Pharmacy and Fresh. We continue to make significant progress on driving price leadership and widening our price gap across all merchandise division. During the quarter our core division, Food and Staples delivered the highest growth, followed by Apparel and General Merchandise. 3

We are constantly seeking opportunities to improve our business and our customer s experience.

The concept has been key to our strong performance as it allows us to deliver a clear value proposition by format. Throughout the year all merchandise divisions have consistently outpaced the market.

With this result, we have outpaced the market for 11 consecutive quarters, which demonstrates the consistency and quality of our growth. Now moving to new stores growth.

In the nine months of the year we have opened 67 new stores, which compares to 47 new stores opened from January September 2016.

4 We are constantly seeking opportunities to improve our business and our customer s experience. As of September, about 90% of our self-service store base operated as a Center of Excellence: 1,528 Bodegas, 258 Walmarts and 92 Superamas. The concept has been key to our strong performance as it allows us to deliver a clear value proposition by format. Throughout the year all merchandise divisions have consistently outpaced the market. In the third quarter Apparel sales growth was 360bps above the market, Food and Staples 130bps and General Merchandise 80bps. With this result, we have outpaced the market for 11 consecutive quarters, which demonstrates the consistency and quality of our growth. Now moving to new stores growth. During the quarter we opened 33 stores; 16 in Mexico and 17 in Central America. In the nine months of the year we have opened 67 new stores, which compares to 47 new stores opened from January September We are accelerating expansion in a profitable and sustainable way, during the third quarter new stores contributed 2.4% of our growth, this compares to 1.6% in the 3Q16 and 2.2% for the first nine months of the year. We re also pleased with our efforts to further integrate digital and physical retail. I am excited to announce that in September we launched a marketplace offering through our walmart.com.mx site, we increased the general merchandise catalogue by 20% enrolling 70 sellers; our goal is to continue reinforcing our value proposition to win in everyday needs. This is a key step towards achieving our goal of developing the best omnichannel experience through a low cost platform. This asset-lite model will allow us to expand our reach to new customers by offering an extended assortment. During the quarter ecommerce delivered a 24% growth. Despite being a double-digit figure, it is below the year-to-date trend as our call-center operations were interrupted and digital traffic weakened during and in the days after the earthquake in Mexico City on September 19th. ecommerce sales contributed approximately 10bps of our growth and represented 0.7% of total sales. 4

In summary, we are gaining traction and growing with quality throughout the business. I m confident that customers are benefitting from the investments we re making in our stores and associates.

I am excited by what I see in our stores, we have the best value on great merchandise both online and in stores to make it a great holiday for our customers and their families.

With that, I wish you a happy holiday season and I turn it over to Olga who will cover the financial results for the quarter. OLGA GONZÁLEZ: Thanks Gui, and good afternoon to all of you.

5 In summary, we are gaining traction and growing with quality throughout the business. I m confident that customers are benefitting from the investments we re making in our stores and associates. We are entering our strongest season, our associates have been working hard all year to prepare, and we're ready. I am excited by what I see in our stores, we have the best value on great merchandise both online and in stores to make it a great holiday for our customers and their families. We will provide customers with easy ways to purchase everything they need for the holidays, including ordering online for pick-up in store and home delivery. With that, I wish you a happy holiday season and I turn it over to Olga who will cover the financial results for the quarter. OLGA GONZÁLEZ: Thanks Gui, and good afternoon to all of you. Let s talk about the quarterly results. I am pleased by the strong results we achieved in both regions Mexico delivered another robust quarter. Total revenues grew 8.9%, gross margin expanded by 20bps to 22.3% and expenses grew 6.1%, significantly below total revenues growth. We achieved expense leverage by operating with discipline and solid sales growth. Operating income grew 16.3% and EBITDA grew 14.6% to reach a 10.1% EBITDA margin. Both operating income and EBITDA grew ahead of total revenue growth. Now moving to Central America Total revenues grew 10.2% on a constant currency basis. Gross profit margin increased 20bps to 24.2% and SG&A grew 10.3%, in line with revenue growth. Operating income grew 12.1% and EBITDA 13.6% to reach an 8.4% margin. 5

In summary, we delivered strong performance in the third quarter across the business. Consolidated total revenues grew 7.8%. Gross profit improved 10bps to 22.

Operating income and EBITDA grew above revenues growth. Net income decreased 13.7% as during the third quarter 2016 we recorded in discontinued operations $3.

We reduced our operating expenses by 47bps primarily because of our strong sales performance.

Now moving to the balance sheet. As we grow and reinvest in the business our financial strength increases. We delivered strong free cash flow and closed the quarter with $26.4 billion pesos, $7.

6 In summary, we delivered strong performance in the third quarter across the business. Consolidated total revenues grew 7.8%. Gross profit improved 10bps to 22.6% and we achieved expenses leverage by growing expenses 5.4%, 240bps below revenue growth. Operating income grew 14.6%. EBITDA grew 13.3%, and EBITDA margin expanded by 50bps to reach a 9.8% margin. Operating income and EBITDA grew above revenues growth. Net income decreased 13.7% as during the third quarter 2016 we recorded in discontinued operations $3.3 billion pesos related to the sale of Suburbia. Regarding SG&A in Mexico, we are focused on driving productivity to leverage base expenses and fund our strategic initiatives. We reduced our operating expenses by 47bps primarily because of our strong sales performance. The operating expenditures related to store remodeling and maintenance increased by 3bps and we invested 17bps in new stores and ecommerce. One-time accounting reclassifications represented 10bps. Now moving to the balance sheet. As we grow and reinvest in the business our financial strength increases. We delivered strong free cash flow and closed the quarter with $26.4 billion pesos, $7.9 billion pesos or 42.9% more than last year driven by the strong cash generation from our operations. We also improved working capital as inventories increased 7.5%, in line with total revenue growth, and accounts payable increased by 21.3%. We continue to invest in the business, balancing the long and short term while generating returns for our shareholders. In the past 12 months cash generation increased 4.3% reaching $53.0 billion. In Central America cash generation was negatively impacted by exchange rate fluctuations. After investing $15.5 billion pesos in strategic projects, we still returned $44.3 billion pesos to our shareholders in the form of dividends. 6

In closing, I would like to summarize the key highlights of the quarter: Our growth has been broad-based, sustainable and profitable. We are driving productivity and leveraging base expenses.

7 In closing, I would like to summarize the key highlights of the quarter: Our growth has been broad-based, sustainable and profitable. We are driving productivity and leveraging base expenses. We are investing strategically to further expand our competitive advantage. Thank you very much, and as always, we will make ourselves available to receive your calls to answer any questions you may have. 7

Wal-Mart de México, S.A.B. de C.V. (WALMEX)

Wal-Mart de México, S.A.B. de C.V. (WALMEX) Webcast Results for the Fourth Quarter 2016 Mexico City, February 15 th, 2017 PILAR DE LA GARZA: Good afternoon. This is Pilar de la Garza, Investor Relations