1

1

Carol Schumacher

Vice President, Investor Relations

Wal-Mart Stores, Inc.

If everyone could please take your seat, we'd like to get underway. Before we get underway, we

do have a couple of important announcements for those of you who are here live in the room and

then we'll get the Webcast and the formal program underway.

We wouldn't be Wal-Mart if we didn't value your safety. You know that the safety of our

associates and customers is always important to us in our clubs and stores. We want to make sure

that you recognize the exits are on both sides and if we were to have to go out of this room, all of

these doors do exit to the outside and it's a double-door system, so please just be aware of that.

Restrooms are around the corner behind the stage.

We will be running the program straight through for about two and a half hours, so if you do need

to use the facilities, you're just on your own. We're not going to be having a break in the program.

We do have some refreshments over here on the corner, as well as right outside the door. And we

would ask that during the meeting, you do keep your cell phones either on silent or vibrant,

particularly since we are going to be -- going to the Webcast shortly.

And so, gentlemen in the back, we'd like to start the Webcast, please.

Good afternoon, everyone. I'm Carol Schumacher. For those of you who don't know me, I head

up Investor Relations for Wal-Mart Stores, Inc., the parent company of Walmex as well as the

rest of the Wal-Mart organization around the world. And on behalf of my team and Mariana

Rodriguez's team here at Walmex, we really are very happy to welcome you today to our program

that allows us to give you a deep dive on the Walmex business.

We know that many of you do cover Walmex or invest in Walmex as a company. But we also

know that we, at this meeting, have invited those analysts and the (technical difficulty) visit with

the Walmex leadership team to learn more about the business and to really get a deep dive on the

business that we have for you in Mexico as well as Central America.

You can see the agenda that we have up here on the screen. We are not handing out hard copies

of the presentations. That's part of our commitment to sustainability. For those of you who have

not seen the information or the background package that we posted on both corporate and the

Walmex Web site, I remind you that the background package is available. For those of you who

are here in Mexico City with us, after dinner this evening, we will also give you a USB drive, if

you'd like one, that will contain all of the information as well as some other supplemental

materials that you can take back with you.

So we have a great program for you today, as you can see on the screen. We are running two

slides -- two sets of slides today. On the one slide, you see English; on the other, in Spanish. For

those of you who will be here tomorrow, you know that we have a great agenda for you to visit

our stores. If you did not check in when you registered to make sure about which shuttle bus

you're going to be on tomorrow morning, please do so before dinner. We structured those

shuttles so that we can make sure that those of you who have an early flight are on the first set of

shuttles. But as you can see, we'll be visiting a Sam's Club, a Wal-Mart Supercenter, the Bodega

and the Bodega Express tomorrow.

2

2

In addition to the members of management that are here with us today and that you'll have a

chance to interact with over dinner, you'll also have the opportunity to meet additional members

of the management team when you head out to those stores tomorrow morning.

No meeting like this, especially from a corporate standpoint, would be a Wal-Mart meeting if we

weren't making some forward-looking statements. Everyone here I think today knows that both

of our companies, Walmex and Wal-Mart Stores, Inc. announced our respective earnings last

week. That information as well as a lot more are available on both of our Web sites and please

refer to those Web sites for additional information.

We do have some other guests today with us beyond the Walmex team. And I'd like to introduce

those people now and ask them to stand. First is Dave Cheesewright who you'll be hearing from

shortly. And Dave, as you know, was recently promoted to head up the International business as

President and CEO when Doug McMillon moved up from that spot to become CEO of Wal-Mart

Stores, Inc. Enrique Ostale heads up the Latin America business of which Walmex is part. That

also includes our operations in Brazil, Chile and Argentina.

New to the International team but not new to Wal-Mart is Brett Biggs. He has been serving as

CFO of Wal-Mart U.S. and now is our new CFO of Wal-Mart International. And Judith

McKenna who hails over from Asda but now heads up our Strategy for Wal-Mart International.

Then our new boss in Investor Relations is the new treasurer for Wal-Mart Stores, Inc., Claire

Babineaux-Fontenot. And I'd also like to recognize Todd Harbaugh. Todd was recently just

named -- literally, Todd's in the back. Todd has been heading up operations for Sam's Club U.S.

and is now taking on a new position heading up the Wholesale business for all of Latin America

reporting to Enrique.

Then I'd also like to recognize Pedro Farah. Pedro is our CFO for Latin America for that

particular region. And Ken Plunk who's on Brett Biggs' team in the International finance

organization is also here with us. And all of them will be available to meet with you over dinner.

We have a few treats for you on the tables. And if you notice, you'll see that there are some treats

and some candy. Those are provided to you as a gift from the Walmex Foundation. If you know

our foundation, you know that we have a very strong commitment to women empowerment. And

our foundation has helped an awful lot of women here in Mexico and Central America get the

kind of training they need to be able to have jobs in their communities.

One of the businesses that's a result of that outcome, of that program is the result of the treats that

you see on the table. And please feel free to take that and the pen home with you. You will also

receive on the USB drive a copy of the new annual report from Walmex. And that includes a lot

of information on our responsibility and sustainability programs.

And with that, I'd like to welcome us to the stage Scot Rank, President and CEO of Walmex.

Scot?

Scot Rank

President & CEO

Walmart de Mexico y Centroamerica

Thank you, Carol. Buenas tardes and good afternoon and welcome to Mexico City. We're very

excited to have all of you here with us today. It's a unique opportunity for Walmex to give you

3

3

some background on what's behind our 2013 numbers and the plans we have to drive business

results and take care of our customers in 2014.

To get started, I'd like to address -- introduce, I'm sorry, my direct reports that are with me here

today. We also have Vice Presidents from across the company in Walmex that are joining us.

But this is my direct team. We'll start with Rafael Matute, our CFO; Renzo Casillo, Head of our

Self-service Business units; Simona Visztova who heads up our Specialty Business units that

includes Sam's, Suburbia and Vips; and Farley Sequeira with the Central American Business.

This team will be helping me in the presentations today.

We also have with us Alberto Sepulveda, Head of Legal Corporate Affairs and M&A; Manuel

Armendariz, newly appointed President of Banco Wal-Mart and Financial Services; Guillermo

Peschard, Head of Real Estates; Karina Awad is not with us, she's Head of HR for Mexico and

Central America; Maria Valencia, Senior Vice President for Infrastructure, including Logistics,

IST and Productivity; Juan Carlos Garcia, the Head of our eCommerce Business, he's joining us

as well; Monica Loaiza from Internal Audit and Adriana Velazquez, Head of Compliance for

Mexico is here as well.

So thank you again all of you for joining us. We're very excited about the meeting, excited about

the opportunity to share with you things that are happening in our business today. And let's get

started with a strong welcome for David Cheesewright, President and CEO of Wal-Mart

International. David.

David Cheesewright

President & CEO

Walmart International

Thanks a lot, Scot. Good afternoon, everybody. Those of you with sharp eyes will have noticed

on the Spanish version I was CFO as well. Brett Biggs, I take that as a compliment rather than

anything else.

It's been an interesting couple of weeks to me, four weeks into the job. I always thought an

induction was a program where you got gradually eased into a job. And my time over the last

four weeks has involved a full board meeting, a full strategy review, an analyst meeting and a full

set of meetings, so a different type of induction. I just thought I'd spend a couple of minutes with

you today talking about Wal-Mart International and what we're seeing around the globe. And

then spend a bit of time talking about our strategy and then finally finish with a few priorities.

So let's start with Wal-Mart International. I think for me the two obvious words that sum up our

International business is big and complicated. Last year, we did around $140 billion worth of

sales. That would make us the second biggest retailer in the world in our own right, behind Wal-

Mart Stores. We make a mid single-digit operating income. We make a low single-digit return

on investment. And if you compare that with any other true international retailers operating with

this kind of complexity we manage, that would put us pretty high up the benchmarks of those

corporate retailers. So, big and complicated.

We have just over 6,300 stores around the world in 27 different countries. We operate 15 formats

and just over 70 different banners, so a lot of complexity to manage there. And I guess for us,

we're a bit of a double-edged sword. And on one hand, complexity sometimes can lead to a lack

of simplicity. On the other hand, that range of options that we have around the world means that

we're very well positioned to pretty much have an offer that will sue any circumstance and have a

4

4

range of best practice that provided we can connect those dots really does give us I think a

competitive edge.

So we're a big and complicated business. Now, let's start by talking about last year and you saw

the announcements last year, there was a lot of detail in there. And I think I'd be the first to say

that last year was a disappointment to us. Whether you're looking at the last quarter or the year,

the results were not what we expected and they're certainly not what we're planning to achieve in

International going forward.

In terms of what we're seeing around the globe, I think a couple of things that I would highlight,

first of all, we see economies under stress pretty much everywhere we operate. In all of the

developed markets, we're seeing low to no growth, we're seeing consumer habits change pretty

quickly. And in the developing markets, we are seeing quite significant slow-downs. We're

seeing customers that are stressed pretty much everywhere, whether it's in terms of rising cost of

living, unemployment remaining at pretty high levels or some of the impacts of austerity

measures from governments around the world. The customers are stressed, and particularly I

think the core customers that we're used to serving.

The final thing I'd probably pick out as I travel around the world is we're seeing customers change

faster than certainly from my 25 years in the industry, I've seen them change before and I think

Asda would be a very good example of this. Not two years ago, Asda was a business that was

positioned in the supermarket sector in the U.K. It was a very vibrant sector for probably 10

years or so before that. It's been a sector that's been taking share of the industries consolidated.

Within the space of 18 months, now we're seeing much more affluent customers growing, the

south of England growing, eCommerce developing very quickly and small stores moving to the

floor. So everywhere we go, we're seeing tough economies, stressed consumers and a pace of

change that quite frankly is much more rapid than we've seen in the past.

I think, though, overall with Wal-Mart International, Wal-Mart International should be the source

of growth for Wal-Mart. And clearly, we've got a huge market in the U.S. that we need to protect

and grow. But over the next 10 years, 93% of all the consumer spending growth that will occur

will occur outside the U.S. So Wal-Mart International should be the growth engine, but we have

to do it in a way that is both sustainable and profitable. And they'll be our two priorities.

So let's spend just a bit of time then on our strategy framework. And you'll remember this, Doug

talked about it last year. And you'll find, I think, a balance between Doug and I that you'll see a

lot of consistency. I've worked with Doug and quite closely in developing this framework. But

we are going to focus on a few bits and accelerate some elements away.

And really, our strategy falls into two pretty simple parts. We want to be in good businesses,

manage a portfolio that's positioned for growth and we want to run good businesses. So let's start

with the top bar and talk about be in good businesses. Now really think of that as working on

three different levels.

So the first is which countries do we choose to operate in, so our country portfolio if you'd like.

And I think we've got a pretty good presence today. We've got some big mature markets in U.K.,

Canada. But we're also pretty well positioned in most the markets that albeit slowing will

represent growth around the planet.

5

5

So second level down then is, if you like, positioning. So where do we choose to play in those

markets, which formats do we operate in? And now I think with the range of formats we have,

we've got quite a mixed bag. We talked about the U.K. a bit earlier and that'd be an example of a

market where we've been positioned very well for a long period of time for growth. But markets

move quite quickly on us.

Now, the U.K. team I think are doing all the right things. So they're accelerating their growth

into a multichannel operator pretty quickly and working on that for a number of years and moving

into small stores through the acquisition of Netto and they're doing a lot of work on the quality of

their assortments and their modulus in their business. And I think that will allow us to attract a

more middle-income customer.

The challenge around our portfolio is that we've got to move faster. And although the U.K. are

working in the right direction, they're not keeping a pace in the way the customers are changing.

So I think in that area of positioning, you'll see us taking much more thoughtful approach about

where we think the growth is going to be, move towards those areas. And particularly where we

see consumers moving incredibly fast, we'll try to move as fast to be there when the customer

moves there.

The final area then, if you like, is competitiveness, and that's how well we compete in the markets.

And that's I guess the bit that links the top half to the bottom half. So once you've decided the

country, you've got the right portfolio for growth, you then need to execute your plans. And the

bottom part is about being good retailers.

There's really three parts to it. The light blue bars you see there are about growth. And that's

really a combination of a healthy core. We obviously measure that through comp sales growth

and new growth channels.

Getting back to get our core comp sales growing is going to be an absolute priority for me and the

team over the next 12 to 18 months. And of course, a lot of that is going to focus on price

leadership around the globe. I'll come back and talk about that a bit more as we touch on

eCommerce.

But I'll talk about eCommerce now because new growth, eCommerce is going to be a key part of

that for us. You're going to hear two phrases consistently whether you talk to Neil Ashe and the

team over in GEC or whether you talk to anybody in international markets. And that's that we

have a pretty fundamental belief that there will be a few global players that will dominate on

eCommerce. And they'll need to do two things to be excellent.

The first is that they'll need to excel in the fundamentals of eCommerce. And where do we have

an advantage there? With the team that Neil's built in San Bruno, we are seeing rapid progress in

building a platform, everything from the physical platform that runs our businesses, through the

way we manage marketing architecture through item files that I think will catch us up to the best

in those sectors pretty quickly. And the advantage for us is clearly on technology. That's very

easy and relatively cheap to deploy to other countries once we have that capability.

But first and foremost, your CEOs excel at the fundamentals of eCommerce and able to deploy

that across our markets pretty quickly. The second is that we will win at the intersection of

physical and digital. And I just want to spend a little bit of time talking about that because the

thing that most people immediately think about there is the physical intersection of physical and

digital.

6

6

And those of you that were on the trips of the U.K. or have been into that market will know that

we're progressing very fast with all the various permutations that are starting to spring up in this

space from pick in store, deliver to home, click in collecting stores, click in collective standalone

points, drive-through standalones, drive-throughs with retail outlets attached to them. And very

rapidly now, we're starting to test, develop, understand the economics of those different concepts

so that, again, we'll be able to deploy those.

But that's just one part of the intersection between physical and digital. For me, the most exciting

bit is the bit that revolves around the customer and problem-solving. The customer is already

incredibly integrated between channels. Physical part might be a relatively small part, but the

overlap between how customers use data and information to select where they're going to shop,

how they plan their shopping trips, decide what they buy is already huge. And our ability to

access both 50 years of experience in running retail stores and all the basics and art and science of

merchandising, together with world-class capabilities on eCommerce, I think put us in a unique

position to develop solutions that will serve that customer.

The final bit is then on problem-solving. And one of the things that, as we've collaborated more

and more closely with Neil's team, when you look at how those teams are able to solve problems

with the use of data, algorithmics and ultimately alternating it, I think there's a rich range of best

practice for us to take some of the problems in physical retail and use some of the thinking that's

developing in digital to help solve those problems in a way we haven't before. So that will be a

core of our strategy in terms of driving new growth.

The second and third is about our business model. And if growth is about really defining what it

is you do for customers that is differentiated and they value, then this is about how your business

model allows you to do that better than anybody else over an extended period of time. And that,

no surprises here, falls into two bits -- productivity loop, everyday-low-cost and people.

On the productivity loop, you've heard us talk a lot about SG&A and cost reduction. And we

didn't leverage last year. Wherein most of our businesses, there were some pretty good work

around our operate for less programs. But when your sales are slowing down, you have to

leverage pretty fast to keep the percent of sales steady. So some good initiatives but not enough.

I think the two bits you'll see that are on here are the two biggest priorities in the productivity

loop if you think of the way that works. The first thing you do is drive sales. And the single

most effective way in my experience to reduce your costs is to drive your sales line. So whether

you hear from Doug or myself or Enrique or any other country markets, being very, very focused

at driving our sales line is going to be a key message around the globe because it's the most

important part of the productivity loop.

The second thing is about cost of goods. And of course we're going to remain passionate about

SG&A reduction. The cost of goods is twice the size of SG&A. And there are numerous best

practices around our markets, around how we negotiate, how we source products, how we

develop private-label programs that we'll look through, decide where the big priorities are and

then get our teams working together with a lot more speed on those and bring our cost down.

On the people side of things, as always, it will revolve around talents and engagement. We saw a

nice improvement around the globe on our engagement scores, about 3%. And in the vast

majority of our countries, we're now able to benchmark the few local competition. Our

engagement is higher than pretty much everybody else we see. So we're pleased with that.

7

7

And on the talent, we'll work ahead now to make sure that we've got talent in our pipeline. And

we'll need people like [Tom McNarcy], like Polly Flinn from BP, people we've brought in, we've

put them through inductions and they're ready to go into big roles as when we need them.

And finally, I'll just finish with trust. And the green part is about trust. It's about -- I think one of

the things that will be certainly true in a digital age is your ability to tell the truth, delivering on it

consistently is going to be one of the differentiators. There won't be any surprises in here. We'll

continue to build trust that we save money wherever we operate. We'll continue to build trust that

we provide the ability for people to get on and develop a career in the way that not many others

can. We'll continue to drive sustainability and we'll continue to work hard in the local

communities.

Finally, we'll continue to work on compliance. And I'll just finish with a word here. I know I'm a

little bit over, Carol, but this one's really important is compliance is going to be a sustainable

business edge for Wal-Mart. And it makes me kind of smile when people say, what do you think

about Wal-Mart's new compliance programs?

Compliance is about execution. If you're not a retailer who's passionate about execution, you're

probably in the wrong business. And the structure and resources that we're putting behind

compliance to allow us to deliver what we should be delivering for customers, whether it's

regulatory requirements or simply the ability to make sure that when a customer walks into our

stores we get the right products at the right price, I think we'll make even better executions. And

at the end of the day, that's a pretty good foundation for a retail business.

Okay. I think I've pretty much covered most of these priorities, so we'll call it a day there. So

International, big and complicated, should be the growth engine for international, you're going to

see a lot of consistencies from what Doug's talked about here before, but you are going to see us

focus on a few areas that are really going to make us a better business.

Okay, so I'm going to hand it back to Scot now to do the bulk of the session on the Mexican

business.

Scot Rank

President & CEO

Walmart de Mexico y Centroamerica

Thanks, David. Okay, so we'll move on to Wal-Mart Mexico and Central America. For those of

you that don't know us, we have one slide of history and then we can get into the meat of the

presentation.

The company was founded 56 years ago. It's a company that has a solid track record for plausible

continuous growth. Over the past 10 years, we've grown our sales by 3.5 times. And over the

same period, we've grown our profits by 4.3 times.

2013 was an atypical year for us and also a very difficult year for Mexican mass merchant and

supermarket industry in general. We start off the year with fairly high expectations coming out of

the presidential elections in 2012. We built a business plan assuming economic growth of 3.54%.

During the course of the year, however, we thought the economy growth was going to slow down,

that public works projects were also going to slow down and overall government spending as well.

And that remittances from the U.S. to Mexican families would actually decline.

8

8

This has tremendous impacts in the economy and in particular on the emerging consumer. As a

result of this, both retail and wholesale sales real sales actually fell during 2013. As you can see

on this chart, retail sales started to fall towards the last half of 2012. And in real terms, they were

down between 2% and 4% every month last year. Wholesale sales also started to decline in 2012,

although the decline was a little bit more severe. And wholesale sales in real terms were down

between 2% and 8% every month during 2013.

Mexico, therefore, had a big impact on overall Walmex results. Our results, we only grew sales

by 3.2%, reaching sales of MXN425 billion. Our gross margin grew a little bit faster, thanks to

the improvements that we made in systems and procedures in Central America that allow us

lower cost of goods and improved gross margins in Central America. The expenses grew faster

than sales, although they grew one more time below the rates of sales floor expansion. And this

let us drive down the costs per square foot of our operation.

But overall, we only generated operating income of 2.0% and an EBITDA of 2.2% respectively.

We're not satisfied with the results in 2013 irregardless of the economic situation. And what I'd

like to do with you today is share with you our plans for turning us around in 2014.

We're going to be talking about growth, leverage and returns. Before doing that, however, I'm

going to spend a little bit of time to talk about the Mexican market and market forces that we

believe are shaping the future of the retail market in Mexico. I'm also going to get into a little bit

more detail about our 2013 results, some things that are a little different than what you saw on our

sales release and financial release last week. Then I'll talk about some foundations for our

business that we've been leveraging across all six countries where we operate. From there, we'll

move on to actions for growth. It will be presented by Renzo, Simona and Farley. And finally,

Rafael Matute will present to you the strategies we have to improve shareholder returns.

The market forces that most affect future retail in Mexico are your sociodemographics -- or I'm

speaking in Spanish, speaking in English -- connectivity related to the Internet or mobile phones,

government reforms and the structure of the retail market in Mexico today. I'm going to very

quickly run through this to bring you to the final conclusion.

First off, population growth. Population growth has been declining in Mexico over the past

couple of decades but has now stabilized at an average annual growth of 1.2%. The Mexican

population, however, is still very young. And when you look at the population pyramid, you can

see that as the population ages, over the next few years, we expect to see an increase of 10 million

customers that will be coming into the 20 to 54-year-old age group that are the key customers for

retail spending in Mexico. So we have a demographic bonus that'll be coming into the market in

the next coming years.

Urbanization is very important to retailers and urbanization is where people that live in the rural

cities, towns start to move to larger cities. This makes former retailing growth much more

feasible. And urbanization in Mexico continues although at a slower rate. If we look at

urbanization today, the urbanization rates in Mexico are close to developed markets like the U.K.

and the U.S.

But this is not necessarily all about it. The combination of urbanization with very high usage of

Internet and mobile phones gives us very good economics for eCommerce and also very good

potential returns for the investments we've been making the last few years in our eCommerce and

digital retailing business.

9

9

Finally, household size in Mexico continues to be relatively large, a 3.9 people per household.

It's also stabilized over the last few years. We believe this gives us tremendous upside, so that as

income increases and grows in Mexico, because of the large household size, this can very quickly

generate significant average ticket increases in our stores.

There's also a trend -- speaking of income, there's a trend towards more women working in

Mexico. This is a positive trend because this honestly complements household incomes. And we

still have a ways to go before reaching a lot of other markets in both emerging and developed

countries.

The other part that's important to remember is the structure of retail in Mexico and Farley will

talk about this in Central America as well. We fill up a very large share of the market that is in

the informal sector. This gives us two opportunities to grow sales. On one hand, via our

wholesale business in Sam's Club, we can sell to the informal market. On the other hand, as we

grow our self-service format, it gives us the opportunity to take share from the informal market

and grow our share of overall sales in the market.

Finally, as you know, there have been a lot of reforms that have been approved by the federal

government of Mexico last year. These reforms are very important revolving around energy,

labor, financial institution reforms and others that will gradually help increase productivities and

economic growth in Mexico. And this is also very favorable to the medium term in Mexico.

So net overall, where do we see the market forsaking us in the future? Overall, we still see a very

favorable market in Mexico. But some of the market, however, it's a different market than it was

10 years ago. So how we grow has to evolve with these market forces that are changing. More

and more, our growth will come from existing stores, existing stores in digital retailing which will

help us integrate what we're doing with our brick and mortar stores and we can take care of our

customers both inside and outside of our physical stores. We're going to continue to open new

stores as there continues to be an opportunity here. But over time, existing stores and digital

retail become more and more important for our business.

Anyway, this is a quick snapshot on our view of the Mexican market. I know a lot of you have

been writing about this recently. And this is one perspective that I hope is useful.

Let's talk a little bit more about 2013. Obviously, we're not satisfied with results, as I mentioned.

I'd like to give you a little bit of background on what is happening behind the numbers. I will not

be getting into the financial results that we explained last week in our Webcast, but I will be

talking about some things that we think are going very well and other things that we're concerned

about that we'll be sharing with you how we'll be fixing them this year. We're calling it hits and

misses.

First of all, what's working well? Our food grocery business is growing very quickly in the self-

service segment. Small stores are also doing very well. We have significant eCommerce

infrastructure that we didn't have 24 months ago. And Central American performance shows us I

think just the start of the potential we have in Central America. Let me quickly take you through

each one.

We have a very positive trend in food and consumables. This is the result of the centralization we

did in the self-service business segment in May of last year. The centralized buying teams have

been able to negotiate lower cost with suppliers and with that puts prices down in the third quarter

10

10

of last year. Lower prices are starting to drive traffic and are letting us gain share on basics like

perishables, dry groceries and consumables. In a moment, Renzo Casillo will take you through

some of the activities we're doing to continue this trend into 2014.

Another positive trend we have is our small format, we re-engineered our value proposal for

customers for Bodega Aurrera Express. With this new value proposal, they also increased

dramatically in a same-store basis and we now are confident that we have a solid format that can

compete and win in the small format segment of the market. In the coming years, you can expect

to see a significant increase in our investment in the Bodega Express business and Renzo will talk

a little bit about what we're doing there.

Another very positive trend we saw last year was the launch of our eCommerce business for

general merchandise. This was launched in the summer of last year and in just six months, it's

become one of the leading traffic sites for Internet eCommerce in all of Mexico. We'll be talking

a little bit more about what we're doing there as well.

And in Central America. Central America was really a highlight of our results last year. In 2012,

we told you how we were investing in prophecies and systems -- Wal-Mart systems that were

letting us take care of our customers better in Central America. These investments were paying

off and the first payout has been in gross margin, not because we're raising prices, but the

contrary. We've been able to increase our price advantage in Central America. But thanks to the

Wal-Mart systems and prophecies, we have lower cost of goods sold that we're translating into

lower prices for our customers, which is driving traffic and driving sales. And Farley will take us

a little bit more about what we're doing there in Central America.

So those were some of the highlights that we saw last year. Obviously we also had some

opportunities. And let me talk briefly about these.

The first is Sam's Club. Sam's Club is an important part of our business. Sam's represents 27%

of our sales in Mexico and 22% of our sales overall for Walmex. We started to see declines in

the Sam's Club sales in late 2012 and early 2013, in particular in the wholesale business in Sam's

Club. Again, this is very important for Sam's Club. We now have some rebuilding to do and

Simona Visztova will be sharing with you some detailed plans that we have to rebuild the Sam's

Club business in Mexico.

General merchandise and the self-service divisions was another area of opportunity last year. Our

performance was essentially the same as our direct competitors in the self-service segment.

However, we lost share to the department store channels. And Renzo will be sharing with you

some of the activities we're doing to grow back and gain share in the overall markets and not just

the self-service channel in general merchandise in 2014.

Credit cards have been very important to our growth over the past few years. And the number

one credit card that we have in Wal-Mart Mexico are our private-label cards with Wal-Mart

Sam's Club and Suburbia brand names. Over the past few months, particularly beginning in April

of last year, our sales with this private-label card which was managed by BBVA Bancomer

started to decline. The performance of the Banco Wal-Mart credit card continues to grow very

well and you can see very significant growth in that card. But the business there is not large

enough to compensate for the declines that we have in our private-label cards.

In November, we announced that our relationship with BBVA Bancomer for the management of

private-label cards was coming to an end in early January of this year. And since then in January

11

11

and February, we have more than doubled the capacity of Banco Wal-Mart to issue our own

credit cards. That's the same time are exploring strategic alternatives to dissociate with other

financial institutions to grow credit in our stores even faster.

And finally, inventory is something we're not satisfied with. We grew our inventories 2.2 days

versus last year. A lot of this growth had to do with the decline we have in sales or sales below

our expectations. And so what you'll be seeing is some corrective actions this year to reduce

inventories overall.

So in summary, it's a tough year in 2013. But we're very excited about the programs that we have

for 2014. I'd like to start by sharing with you some of the foundations that were installed over the

past few years for growth that are going to allow us to leverage the business across all six

countries where we operate. These foundations have a lot to do with three things. First is

productivity. The second is infrastructure. And the third is control and compliance in our

business across all six countries where we operate.

Let me speak for a moment first about productivity. We have a tremendous advantage being part

of Wal-Mart Stores. And that was we were able to tap in to the tremendous engineering

experience that Wal-Mart has developed in global business practices. We developed teams in

Mexico and Central America that work closely with global business practices. And today, we're

generating a constant slope of productivity initiatives that we can apply across the entire business.

Last year, we grew our installed capacity by over 7% and our expenses grew only 4.7%. So we're

starting to see a payoff on these programs, many of which have midterm and long-term payoffs.

As a very short example, in specific case of 2013 in Mexico, we were able to reduce store labor

hours by over 7%, improved our DC productivity by over 12% and one more time had reduced

our energy consumption in same-stores this time by another 3%. These project reforms, many of

them are just coming online, so we'll see a continuation of a lot of these programs into 2014 and

new programs are being launched this year as well.

Another example of control we have on productivity in our business is shrink. Shrink in our

stores is today one of the lowest in the industry in Mexico and it continues to get better. We

implemented new operating controls in the business last year that let us lower shrink another 8%.

So a good program is getting even better.

The other thing we're doing that we can leverage across the entire business is centralizing back

office functions. The example that we gave of you of this of last year was the finance

administrative functions that were sent from Mexico and across Central America to the Global

Shared Services Center for Latin America located in Costa Rica. We'll be seeing the benefits of

this centralization this year. And in the coming years, we'll be continuing to centralize other back

office functions so we can focus more of our energy on generating sales.

We talked a little bit about Central America and the investments we made in our infrastructure.

And now it's time for Mexico. Mary Valencia and her team are making significant investments in

systems and logistics to move goods even faster and more efficiently across our business in

Mexico.

And finally, control and compliance. Over the past few years, we've made significant

investments and improvements in our control and compliance programs in Mexico and Central

America. Today we have over 300 associates that are dedicated to compliance. These associates

12

12

are developing new reports, processes, applying technology and training our associates in world-

class best practices for compliance and control.

Speaking of associates, and I think this is one of the biggest strengths we have in Mexico and

Central America. We have associates that are fully engaged and motivated to drive this business

forward. We have some of the highest associate engagement and scores in the industry and

they're getting even better versus -- this year versus the previous year. So associates are ready to

take it forward and make the changes we need to make in this business to make it even stronger.

That's what we're doing in terms of leverage. I'm going to pass the presentation now over to

Renzo Casillo who will tell us about what we're doing to drive growth in the self-service business

in Mexico. Thank you.

Renzo Casillo

EVP & General Manager, Self-service

Walmart de Mexico y Centroamerica

Thank you, Scot, and good afternoon and welcome to Mexico. I've been in the company three

years. Now I just turned one year here in Mexico. But I had the privilege to be surrounded by a

team of leaders that have over 20 years of experience in Mexico, so they understand the Northern

Mexican business very well.

I'll be sharing one slide that looks back. The rest actually is looking forward and is aiming to

share with you some of the views that we have on accelerating growth. So looking back, this is

just one slide. In the self-service business, we actually are not satisfied, but we see a positive

improvement. For the full year of 2013, we went down by 2% -- sorry, 0.2% compared to 0.9%,

more than half. So we were able to obtain and start by 70 basis points.

But we were encouraged about the more recent thing, the actual reason why we are faced and

start by 318 basis points. We did notice a difference between the first half of the last year and the

second half. We saw the second half a better season which sums up and a general we see that --

we continue to see that trend.

Now as Scot mentioned here is that we're actually focusing to accelerate growth and we want to

focus on these seven. First one is strengthening inventories will be working for us. We have

been working on creating and giving more value to our customers and increasing is the gap in our

price levels compared to this. You can see in every quarter, we actually increased our gap versus

our main competitors. This is really turning into a improved value perception.

So this formula is working. Now we want to take it to the next level. We did a lot of

improvement on grocery, on consumables. This year we want to accelerate on Fresh. Fresh is an

area that we believe not only will help us improve the value proposition but also accelerates

customer count. During that, Fresh is obviously what customers more frequently use in our stores.

Other branches (inaudible) is going very well in format, considering that we can project. Over

Express, we've seen a very significant offering, so we tend to rule out a faster growth area for

private-label where we deliver a very -- valuable to customers. We already have very good

analytics but we're trying to improve them even more, getting more granular into the regional and

local levels versus the competitors. We already did this one first and we've received, so I'm very

positive we're going to rule out the first category.

13

13

Our compelling pricing campaigns. I hope most of you have a chance to go visit the stores

tomorrow. You will see in Wal-Mart and Bodega the new campaigns. One, Bodega is called

Moralla which means -- pocket money. It's a campaign focused particularly on the end of the

year when the customer has very little cash flow. And we demonstrate value when you can --

with very little money, you can fulfill your pantry. And Bodega -- and in Wal-Mart, we actually

fully launched -- we launched the Campaña “Rebajas” -- which is related to rollbacks. And we

are seeing a very strong acceptance by customers.

Scot mentioned this one. We -- this is the area we probably started the focus on creating a bigger

pricing gap early part of the year. Some of you may have heard, in some of the communication,

we changed the structure of self-service. In May, we moved from a format-centric to actually

centralizing all of the buying capabilities under one leadership (inaudible). We now buy for all of

self-service. The format remain focus obviously on excellence and execution but also on

delivering on the promise to the customer on the value proposition. And they've been enhancing

that proposition and that promise to the customer throughout the years.

The last (inaudible) that we built back in May was the Customer Intelligence Unit, which is

populating ourselves with a lot of information that we've gathered in merchandising and the

operation of this issuance to become more relevant to our customer. What you see here is

essentially what we have seen in grocery and consumables. The gap was established earlier in the

year, mid through the year. So now we're in the phases of (inaudible) making sure that they are

certain that we have a format that is a reflection of the value proposition. So the performance of

Wal-Mart is better, the same for the customer, the same for Bodega and the same for Superama.

First to market have been a big step. We are monitoring now the initiatives that we are launching

to give innovation, give differentiation to our customers and ensure that she believes we have the

merchandise when she wants which is what we're doing, having windows of customizing. On the

formation area, it's accelerating the value on Fresh. We really believe Fresh is an area of

opportunities. And it is where actually we have the lowest shares. We want to accelerate the

shares in all of the self-service.

The two areas that Scot mentioned briefly was Bodega Aurrera Express. It's a business that we've

been very pleased today. Intervention that we made last year have reacted very positively. Last

year compared to --on that specialized stores food and consumables, we went down by 1.1%.

Our business in Bodega, we actually went up by 4.9%, so our -- basis points.

This year, we're seeing even better results. For January, the market was 1.7% down. We were

9.5%. For the year, actually, we're double-digit up at 11.2%.

This is an example clearly when we look at [they are strong in the universal offer] for that

customer, that customer in that small format being very strict and disciplined about what is the

right catalog that we have for that customer. Second, ensuring that the value propositions and

pricing that we did in the last bodega as well reflected on the smaller bodega, a customer has

some benefits from the lower prices.

Having the increased number of suppliers that support us in the dramatic (inaudible) but before

we used to depend on them shipping for us. Now we flow on logistics. Now we are in a phase

that we are enhancing with our vendor, with our suppliers packages that are more friendly -- more

friendly to operations that can make this -- have the operations become more productive and

reduce days on-hand and efficient supply we will do as well.

14

14

So we expect this business to continue to be -- to grow. But also as Scot mentioned, 45% of the

business in Mexico City in four months will deliver. And Express is one of the biggest sources

that we have, apart from that conversion from the customer.

The first one is the innovation of electronics and appliances. This is one we don't feel very good

at all. This is -- we didn't do a good job last year in -- particularly against department stores. But

we're back. We're going to take this business back. Why is that so? In the first half of the year,

we saw an assumption that was outdated, assumption that was not really bringing the technology.

And technology is innovation. We don't have the -- what the customer wants, we're not going to

be relevant.

The second is orchestrating better coordination with eCommerce. Our eCommerce customer is

looking for a standard level of technology that is different for our stores. So we're

complementing what we cannot in the stores with our offering in eCommerce. That way, we

serve all the customers. And again, I advise you to go tomorrow to the stores. You'll see how

we're dragging customers from stores to our eCommerce site if they don't find the product that

they are looking for.

The third one is focus on categories. We have a very strong share on electronics, higher than the

average share in the market. That's -- we want to focus and have significant position on what is

emerging to establish more accessory standard. Those are areas that we want to continue and

gain a significant momentum.

Credit was a challenge last year. Scot mentioned that through our partners on the bank, we lost

some ground. But we have established new projects. Not only with Banco de Wal-Mart, but also

we're establishing programs for Bodega in particular. And again, I invite you tomorrow to go --

when you go to Bodega. See, when we now launch a program -- it is not in our stores yet, but

we're launching it also through the year where the customer has a fixed payment for weeks.

This is something some other competitors have done very well through the years. Now we have

it in Bodega and we're seeing very positive response from our customers. The low-income

customers, we know how much they make per week and per month, we now will be able to know

that they can pay a very low fixed payment per week.

Shopping experience. We recognize that more and more technology is complex and we need to

affix customers, so we're piloting our device, defining new ways of serving the customer,

providing them the information that they need when they shop. This is an advantage that

department stores have over us and we plan to close that gap by providing a free to shop from our

associates.

And effective communication. When we deliver value on electronics and appliances, having no

doubt at all, our differential is weak. So we were not effective in mobile communicating those

values. But you see that we are actually enhancing our communication plans on value.

Now going to eCommerce, there are some changes that I showed that we continue to accelerate.

Scot already mentioned that we were over the holidays the highest volume traffic site. We

increased in categories from 10 to 16. You will see tomorrow in the Wal-Mart, the Kiosk. It is

very successful for us. We are actually getting customers very engaged on the Kiosk, completing

the order there. A very significant amount of the order that we do sell to eCommerce actually go

to the Kiosk that we will see tomorrow. In fact, (inaudible) for the customer to enter the

15

15

eCommerce environment and (inaudible) in our stores. So we plan to expand that threefold into

150 stores.

The platform will evolve. We already have this launch in the mobile application in Wal-Mart.

Our distribution -- are almost threefold. We have a very solid platform of home delivery.

Through the years, our format, Superama has had a great successful on the leader platform. The

good news is that we are going to be reinvesting the latest technology on the frontend and the

backend by tapping on the experienced companies like Asda and someone experienced in the U.S.

We are investing the latest programs that will allow to make this program even more successful.

We are going to a level of commitment to our customer that is higher than we ever have done in

the past. It's a full order guarantee. We have some gaps that we want to close in terms of

fulfillment levels. But that's going to give the assurance to our customer that we will commit to

ship everything she ask from us.

Windows of delivery. Today, Superama can deliver in three hours. But we also want to give

them the flexibility to open the delivery to the window that they have. That's a new feature that

we're going to have. The distribution center or fulfillment centers, we also will expand. We plan

to increase five-fold our capability and fulfillment, the ones that are not fulfilled from the stores.

And last under the communication enhance the Superama [Barato] launch in the Supercenter

(inaudible). We launched this year the home delivery in each supercenter.

The fixed price regionalization, you may know it as the store of the community. This is a new

capability that spins a lot from the intelligence that we're getting from the custom intelligence

group and becoming more knowledgeable about the differences and the insights that we can

capture from every region in the country.

So now we would -- based on needs, not just purely geographically for (inaudible) would you use

to help. Now we recognize customers are different. That will allow us to have category strategy

and modular that are different by region or by city. We now have that information.

With merchandise indictment which is execution logistics in the stores we'd different because the

nature of the customer in every region differs. We have a whole standard store, we have service

stores that will have a benefit of a very specific merchandizing guideline according to the

customer that we serve.

And last one is the media investment. We realized there are some categories that are more

sensitive to the local media, the national media (inaudible). A good example of that is the

operational service. It's very sensitive so we are leveraging more and more. It's not only efficient

but effective for local media to invest and communicate our more very local relevant programs.

The last on my list is strengthening and then accelerating the construction of our import highway.

We have historically always, we have imports from Asia and other countries. But now we want

to grow and leverage the U.S. infrastructure. We start with the logistic network but also the

relationship that the U.S. organization of highway vendors in the U.S. where we can tap on the

assortment that not only serves the northern part of the country but eventually, we'll find a way to

the stores in the south.

16

16

I think as the customer (inaudible) as technology -- because the customer would demand from us

more and more and faster accessibility to products that they see in the media, that they can see

through the Internet, through the mobile devices.

We will accelerate that by building this highway. As you can see, we're starting in the (inaudible)

region in the California area. But we plan to run that out, this highway, through the continent not

only to serve Mexico, all formats sounds self-service but also Central America. That would be

the key initiative we have. With that, I will pass it on to Simona.

Simona Visztova

SVP & General Manager, Specialty

Walmart de Mexico y Centroamerica

Thank you, Renzo. Good afternoon, everybody. My name is Simona Visztova. I've been in the

company for 22 years in different roles. One of those I had the opportunity to lead the Sam's

format for a few years and then I had to spend some time in Global Sourcing helping to build a

sourcing network for the rest of the company.

I'll talk to you today solely about Sam's. Sam's is the format that has been in the market since

1991. It has been the first club to enter the market. And it has had a historical leadership in the

club format over the years and we can see the continuous growth here. I'm going to be talking

about the past as well as Renzo on a very short time, and I'm going to be focusing very much on

what's going on and what we are going to do with Sam's.

Sam's is today's still the Mexico's number one membership club. We have presence in 86 cities

and we have 156 clubs across the country and we have opened 14 clubs and we still have room

for growth, but we'd first have to arrange things that we have to correct to be able to grow.

Sam's had a 4.4 negative comp last year. So what has happened? Yes, part of it is economic

situation that has affected both Business and Advantage members and we don't have to forget that

Sam's have both segments that are very important to it.

Business members were affected because of the loss of the economic dollar of the businesses who

are our mom and pops and who are the restaurants. So they had less traffic that we sold less to

them. And the wholesale market was very affected as Scot was mentioning early in his

presentation.

But at the same time, the Advantage member was affected because we gradually over time less

differentiation to retail format and to the department stores. In some categories, we looked more

like health service. And in other categories, we looked less like department stores. So it's a

perfect mix of things that we need to correct to be able to drive the sales.

So what are we focusing on? Reestablishing the value proposition for the Sam's Club based on

four key elements -- price, excitement, bulk and quality. Sam's needs to be and is the price leader

in different categories. Price meaning different things for different members. It has a different

significance for a Business member than it has for an Advantage member. Excitement, being

able to find the new and different stuff, the treasure hunt, what we call in a club environment.

Bulk, driving volume out of every single item that has a great value. And four, having the right

quality in every single item that we sold.

17

17

We have initiatives for every member we have and we have initiatives for reinforcing the

backbone of the Sam's Club. So for Advantage members, the name of the game is treasure hunt

and differentiation. We are having or we have a robust relaunch plan for categories all across

DM consumables and groceries that will allow us to show new things to our members and also

introduce new categories that today we are not playing in, but we know that are on our members'

minds. And we are going to make sure that they see them and then we are on their minds and in

their baskets.

Technology, first to market. Sam's always have been and is a key player in technology.

Technology, meaning not only electronics, meaning of course tablets, computers, mobile and

everything that we know in today's technology. We still very much have it on our first to-do list

and things that we will need to keep reinforcing.

We will be launching new products every day, every single week. Some of you are going to be

able to see on the sales floor tomorrow as you go to Sam's Club. We need to be and we will be in

the new niches faster. We are going to be moving much more aggressively, and mobile which

today is the name of the game is going to be and is on our plates very much every day.

Third, recognized brands, another key element of treasure hunt and differentiation. We have a

strong relationship with our Sam's U.S. colleagues and we are leveraging their relationship with

the brands, but at the same time we know that there are brands that are relevant to the Mexican

consumer more and we are establishing and have those direct relationships today. And not only

DM launch is how we tend to think about brands. But in apparels, also in food and in

consumables related categories.

Dramatically improved price. This is a key driver of traffic for us. We have enough played that

game well. We are improving our produce as we speak. We need and we want to put more fresh

produce, bakery, deli into our members' baskets.

We are focusing on those items in produce that we know have a high perception of quality and

value and we can easily and fast get our members to understand that. It's about the produce, it's

about the bakery while we have relaunched bakery, we have reformulated our products. We have

improved the quality, we have improved the taste. And you're going to be able to see that also in

the clubs.

We're still working on deli and still are working on Sam's café. Meat is one of our most

significant and important categories that we will keep reinforcing here. So fresh is very important

for driving traffic and the basket size of our members.

Next, increasing import significantly. Sam's had been one of those formats that have historical

leverage, the Sam's U.S. best, but it's holding general merchandise and it still is. We have not so

well in the past with what is consumables and groceries. We are doing it today. We have a team

in United States supporting us very strongly with the supply negotiations, we are leveraging the

items and at the same time, we are flowing the merchandise much more faster.

Competitive financial services. As Renzo was mentioning, this is also a key element for Sam's.

And for the average price for a ticket that we have in Sam's, being able to give the options of

payment is very important, now that month or no interest payment has become a standard in the

market. Sam's is going to keep delivering those. We have been for some years. We will, but

first and foremost we will focus on the right pricing on every single item and then it will be the no

interest promotions behind it.

18

18

At the same time, we have relaunched our credit card, Sam's Club credit card backed by Banco

Wal-Mart who have done that starting this year in January.

And launching eCom. Sam's has not had a good page, and a consumer member friendly page for

some time. We will be relaunching the page in Q2. We'd focus on both Advantage and Business

members. I'll talk about Advantage here. We will be expanding the catalog in those categories,

the relevance to the spend of our members, not in everyone. But those we know are very highly

positioned in their mindsets will be the categories who will be relaunching the expanded catalogs

on the Internet in the Q2. So this will be the focus on Advantage member.

Now let's talk about a Business member who is a very important element of our strategy. Sam's

historically has been the club who has done the best with business members because it covers

both mom and pops and what we call HoReCa -- hotels, restaurants and cafeteria. We have done

well in both and we will be focusing on them still and with certain proposals and propositions that

are much different from what we have done in the past.

First, in the hotels, restaurants and cafeteria, Sam's caters to both higher-ends and the lower-ends.

So it has all the spread and the coverage it needs and we understand those members very well.

We have teams in every single club who cater to those members, who call on them, who deliver

their merchandise, who understand the pricing and to say what is it they need, and they have I

will say almost personal relationship with them. So we will keep reinforcing those and working

on them.

We'll keep working on private label. For the HoReCa members, private label is very important

because it's all about how much can I get out of the product because I need to deliver it on the

plate so I need to make my money.

Click 'n' Pull is very important. We will keep reinforcing that direct to business delivery. We are

expanding that to the club that we have not the coverage today. Price leadership and as well the

extended coverage on eCom. Because of the business model, we cannot have everything on to

Sam's floor.

For our mom and pops, the business segment who's the biggest business segment in the Mexican

market for small business owners, this is a category that we have expanded somewhat on the sales

floor. You are going to be able to see tomorrow as well. We have added some items that were

missing to be able to deliver the complete value proposal for them.

At the same time, these are members who use somewhat Click 'n' Pull but they like to come and

shop. They like to see and they need the trust using the product and the price on the sales floor.

So we are reinforcing that message and I'll show that to you in the next slide.

Direct to business delivery. Sometimes we do that when there is a need and when we have

business members who have more than one store in their portfolio, and then extended coverage

via eCommerce as well.

As I mentioned to you, this segment is very important, but Mexico market is a particular market

in the distribution. There is still a lot of opportunity in making so that the distribution gets to

where it needs to get.

19

19

So wholesalers and what we call medio mayoreo or midsize wholesalers are a key element also of

Sam's Business members and Sam's strategy. So mainly the midsize wholesalers. And we know

that those are a partner for us because they come by in Sam's and they deliver to the far away

cities or to the mountains where there's no distribution.

So for those members, we will be launching in the next few months a pricing that we will show

on the sales floor that we have not had today. Of if you buy a [baba pellet], you will be able to

get a better pricing from the club, so at the same time you know that you can resell it and deliver

it and bring the cost into it, okay?

The next is added value through services and offerings. Our business members are at the same

pressure that we are. They have competition out there. They need to be more efficient and they

need to know how to make more money and deliver more sales.

So we are developing for them solutions to help them to improve that and mainly for mom and

pop because those usually in Mexico are people who do not have such a high education. They

need that help and we will be delivering that help to them.

So now let's talk about reinforcing the backbone. Anything that you want to do in an

organization, you have to have the talent to be able to deliver on the promise and what you are

going to do. We have made recently some changes in the sales team.

Currently, we will shortly be able to announce who will be heading the Sam's team in the future.

At this moment, the team reports to me. With the experience that I have had in the Sam's format,

I have the privilege to work with three extraordinary people who know what needs to be and

understand the format. If you could stand, Alberto Gomez who just recently assumed as VP for

Sam's. He's over there at the back.

He has 18 years' experience in the company. Eight of those in Sam's Club as a merchant. He

used to be a head merchant for Sam's internal merchandise. Besides that he has experience in

logistics, imports and he was a crucial part of launching the walmart.com site with the GM

proposal that we see today.

Lilia Jaime. Lilia, if you can stand. She's over there. Lilia has 30 years' experience in Wal-Mart,

eight of those in Sam's. She goes through the ranks of operation. She's an operational expert.

She knows the business. She's very focused on talent, on productivity and on making sure that

core principles at the club are executed the right way.

And then Rafael Orozco. Rafael is somewhere there. Rafael has been in the company for 16

years. He heads up marketing, memberships, business development and the CRM. He has

experience in merchandising and then operations and his focus for the past few years had been

Sam's Club. He has been heading the organization in Mexico for four years. And this focus is

very strongly on CRM on making sure that we get the members that we want, that they are loyal

and that we communicate and give them what it is they are looking for.

So the next thing we are doing is making sure that the basic principles of a Sam's Club are

expected. That the business model that is based on limited SKUs, pallet-ready so we can be very

efficient, early in and early out, and sharp pricing is in our everyday minds, works and that will --

that is what we breath and do every day.

20

20

Next, we have a very strong collaboration with the Sam's U.S. team. We are very heavily trained

on a commercializing knowing what's going on and being there at the same time as the United

States so we can bring the same merchandize merchandise.

But at the same time, we know that the Mexican consumers are very keen on European. So we

are leveraging a lot of the U.S., at the same time, we are bringing more European products to

provide for the differentiation that is so key for the Sam's.

Replenishment and reengineering. We need to make sure that we have the right amount of

product at the right club. So working the inventories at the club level by item is something that

we are working on. We're establishing automatic replenishment to make sure that the profiles

and everything that we have to do with the flow of the items is on the right way.

We are working much more collaboratively today with our suppliers. They understand the

business. They know how to flow. They know the levels of inventory we need and we have

started to establish a few months ago and it has been working very well for us. All of that with

the sole focus on improving in stock. For Business members, it's going to be something very

crucial. The day you come in and you don't find the item that you need to do is walk out. And

we did not deliver on the promise.

Fast and friendly cashiers. Operationally speaking, those who are part or who have been with us

and have known our operations probably know that in the past three years, we have had several

hiccups on the cashiers, that our process is not so fast and so easy.

We have as of February, automated the coupon book, so now the experience is very different.

And everything flows through the cashier and you don't have to do anything manually. So that

has been corrected. And we are still going to work on some additional things to make it even

more faster.

And last but not the least is supplier collaboration. Those of you who understand and know very

well the club model know that the club business is a very different business. And that you need a

full support of the suppliers because they are the ones who actually if they don't buy we don't get

what we need from them. So the supplier collaboration is very crucial. We have been aligned

with the suppliers over the several past months -- few months. And we want to see also on the

sales floor the results of those.

So having said that, the critical -- what we are trying to do here is building the trust and loyalty of

our members because we know that only through the loyalty of our members and through

delivering the value proposal, we'll be able to deliver the growth that we need.

Thank you very much. That's all for me and I'll leave you with Farley.

Farley Sequeira

SVP & COO

Central America

Well, I don't know if somebody is helping me out there. There you go. Thank you. Well, first of

all, welcome to our meeting. I would like to welcome you again. Good afternoon. If you can

help me out here please.

21

21

Good afternoon, ladies and gentlemen from the business analyst community. Today, I'm going to

share with you what we are doing in Central America. But before we begin, I want to quickly

provide you with a brief summary of what we accomplished last year. In 2013, we focused

primarily on building our foundations so that we can grow a sustainable business.

Last year, we completed our systems integration connecting our distribution centers with our

stores. That was one of the first things that we did. We also migrated from instructional financial

processes to the Wal-Mart's Global Shared Service in Costa Rica.

Simultaneously, in all side countries, we also implemented SAP 6.0. Now we can safely say that

in Central America, we have one financial accounting process that's centralize that can guarantee

us our business model.

We also invested around 130,000 hours on our associates on key trainings. But one of the key

things that we did was a significant amount of time was also invested in our analyzing our

customer. Customer is very relevant to us. And once again, they told us that the key things, the

key findings that they tell us more is that pricing is very much relevant.

All of this was acquired from information the day we went through the stores to interview the

different schemes of analyzing our customer. And the most important thing that I wanted to share

with you is that price is the most relevant thing on our customers' minds.

With all of these that we find is that we created and also with all the concluding of our systems

integration, our ability to focus better on understanding our customers and their needs and

shopping habits combined with our capacity to reaffirm our price leadership allow us to really

achieve a better and more confidence in the same store sales growth.

However, we still see a large opportunity in Central America. According to Nielsen estimates

and data, the informal market in Central America still is very, very huge. As you can see here in

the slide, Guatemala still is representing around 71% of the informal market of total sales. There

is clearly an opportunity for us to take away market share from the informal markets.

In 2014, we are going to focus on three things, those are the three things that we're going to do.

First, we're going to become more customer-centric. Second, we're going to further drive key

categories and improve our import processes and assortment. And third, we are going to simplify

our business.

Becoming a more customer-centric means identifying what our customers really value most. It

will require adapting our stores to the customers' needs and shopping habits and so we can

improve their experience. It's all about converting customer insights in a better value proposition.

Take for example a key category such as fruits and vegetables in our discount format. Our

customers tell us that if we can provide them with equal or better price quality on such items, but

most important in a secure and friendly environment, they will switch channels and shop at our

stores. This is of significant relevance to us. And this is part of our strategy in taking away

market share from the informal market.

And one way that we are going to communicate our price leadership in our discount format is

through Mama Lucha. She was recently launched in January 15 in Central America. Just a quick

update for everyone that knows her, she represents the low income housewife. She tries to stretch

22

22

her budget to make ends meet. And she also makes a lot of sacrifices and fights daily to provide

the best for the family. At the end of the day, Mama Lucha communicates empathy and trust.

And let me just share with you a brief example of the add that we're running right now in Central

America.

She really connects with the customers in Central America too, it's very important for us to take

her away and export her from Mexico to Central America. So that's just for the not informed.

I we also -- our second strategy is all about key categories and driving our import business. And I

guess I want to share with you just an example on large appliances. In Central America, most of

the sales in large appliances come from either departmental or specialized stores. And in the

second half of 2013, we decided to become relevant for the customer and to really decide that we

take away market share from our competitors.

We focused on adding a new assortment, followed by an aggressive pricing strategy. We

developed also a clear communication program in all channels including our social media in

Central America. And as a result, we were able to grow this category 77%. The good news is

that there is still a lot more room for us to grow this category even further.

One of the things that Scot mentioned quickly was our results in Central America, but we are

quick to recognize also that our general expenses really grew faster than our sales. And this is not

according to Wal-Mart DNA.

So as a result, this year we're going to increase our productivity. We are going to focus on --

we're going to take advantage of our systems. Our system really generate for us a data, important

data that once are in place we can accelerate initiatives that will help us leverage our expenses.

Just an example, the system provides us with more accurate data. We can convert this data into

key analytics. We can improve our productivity. We can for example, we can now better

allocate our human resources staffing to the workload demanded in each store and continue to

serve our customers according to their expectations.

Regarding our supply chain, we're working with our vendors, our partners generating better

collaborative forecast. As a result, our distribution centers will be able to do a much better job

receiving, allocating, and distributing merchandise to our store. At the end of the day, we're

going to move a lot more cases in an hour. Our efficiencies at the DC will translate in cost

reductions.

Another way that we are reducing cost is through energy efficiency. As you know, the energy

prices have really gone up in every single year. And a few months ago, we implemented a

program based on a simple eight steps. This program was very successful here in Mexico and we

are starting to see good results in Central America. We think that we can continue to massively

replicate this program and lower our kilowatt consumption in our units.

We are also continuing to invest in new equipment, in new and more efficient equipment. We're

also accelerating our remodel of stores. And at the end of the day, we're just getting rid of all

equipment that are just we think are not energy efficient.

23

23

Another step that to continue to gain market share from our competitors is both on the formal and

informal market is through our new store opening. And later on, Rafael Matute will share with

you our growth plans for this year.

At the end of the day, we have a clear picture of what we have ahead. We have a solid plan to

meet our objective. We're going to gain market share from the informal market. We're going to

concentrate on key categories and develop that import highway that is crucial to us. We will

leverage our expenses through a store and DC productivity. In this way, we can really live up to

the promise of saving our customer money so they can live better.

Thank you and I will leave you with Rafael now.

Rafael Matute

EVP & CFO

Mexico y Centroamerica

Good afternoon. As you know, you know me. I will talk about the easy part of the company, the

financials as you know, one of our characteristics is that we have a very easy constant P&L and

also a balance sheet.

As Scot said, in the year 2014, we have a clear strategy for growth, leverage and returns. Scot

already spoke in detail the specific strategy for leverage. And Simona -- as well as the statistics

for having better sales.

I will talk about two main strategies that we will follow for the year 2014 in what finance respect.

The first is to provide and support dealers and attract better returns. And also to have a varied

support as you would see on the existing stores that we have. And second also you have the

financial strength that we have in our balance sheet so that we can have better returns for our

shareholders.

So let's start by this graph. In this graph, you see that 23% of stores were opened in the last three

years. So we're going to be concentrated in having better stores that just opened and also having

source that's more mature, having better stores.

In the case of the new stores, we have to copy from the old stores to have better stores. And also

very important in this to remember that we are a multi format company. And these stores that

you see, all the formats are flexible. And very important to remember that's one of the best way

to go also to the informal economy. The format that we have is an easy way which are going to

go to that part called the formal economy that was talked about Scot and also about Farley in

Central America.

We are going to also concentrate on sales. We haven't had good comp sales. As you know, you

already heard from Scot, from Farley, from Simona and from Renzo, mainly from Sam's in the

case of Central America and we have third place, but look at this graph, what happened in the

year 2013.

So for the year 2014, we are going to be concentrating very heavily on comp sales. In the case of

Central America, we have to continue concentrating in the comp sales to be a better company to

include the strategies that Farley mentioned.

24

24

In expenses, we have to continue being a low cost operator. Scot gave a lot of detail on leverage.

We'll look at this graph. This graph shows you good signs for Mexico. It is the expenses for

quarter two which is the goal that we have. We have been able to lower them. Even at the year

2012, we had a decline. We even we get 2013 decline. And we expect the year 2014 to continue.

In the case of Central America, we have to have those also, those expenses in the case of a 1.7

(inaudible) minus 1%.

So look at the financial strength, what we see was our balance sheet. Our balance sheet is a very

easy balance sheet to understand. It's a company that as you know, we're a no debt company. In

the case of the accounts payable and accounts receivable, the bank, what you see there, we don't

have any accounts receivables in just the bank and the accounts payable is just the bank accounts

payable that will decline that would deposit the money in the bank.

I will talk into more detail into aspects of the balance sheet. One is called inventory and the other

one, cash. And as you know, in general we have been a company that has negative working

capital requirements through the history of the company. In this case, I will start talking first

about inventory.

In inventories, it was already mentioned, we will be concentrated to look at the opportunities that

we have. It's 0.3 base of inventory. The last figure for the year 2013. That's a 12% increase of

inventory. So that's an opportunity that we will be working on throughout the year.

Before going to the detail of cash, I'm going to talk about just as a brief summary what we are

going to do with the cash in the case of CapEx, dividends and repurchase of shares. Just look and

start looking at the amount of cash that we finished.

We finished with MXN21 billion in cash compared with MXN28 billion in the previous year.

But in the meantime, we have MXN20 billion in dividends in repurchase of shares beside the

CapEx that was during the time.

The cash generation of the year, you can see the year 2013 compared to the year 2012, it's a little

bit less. And the reason for that is that we have an increasing inventory for the part of working

capital we have to use some for the cash generation.

The CapEx. The CapEx for the year 2014, what we are projecting is MXN15 billion, MXN11.6

for Mexico and MXN3.4 for Central America. If we see how we are going to respend the

MXN15 billion, we have a new source, MXN8.4 billion in remodels and maintenance, MXN3.5

billion in eCommerce, and technology, MXN1.9 billion, and in logistics, MXN1.2 billion.

As I said before, we are also going to be concentrated in the existing source and you can see the

line of remodel. And I want to make emphasis on the eCommerce part, the MXN1.9 billion. If

you see that MXN 1.9 billion compared to the previous year about the line that we called ISD,

eCommerce and others, it's a 27% increase. That's MXN1.9 billion.

So we're focusing throughout the presentation we have heard of going not only to new source but

we are putting a lot of emphasis and a lot of money in this part of eCommerce.

The CapEx, if you see the CapEx evolution in Mexico, you see that we are about the same level.

The difference is in new stores. We are projecting for new stores less than in previous years.

That will will be 7.2. This year, you'll see a 0.5. Later you will see that new percent in square

25

25

footage for the company. But in total, it's about the same as the last year except the composition

but we're changed.

This is what I told you. This is what we expect for the year 2014. It's an approximate number of

5.2% increase in full capacity in new stores. This is, if you see it in top of construction, 5.2

million square foot. If you see it in sales area, it's a 3.7 million square foot for sales area.

Here, you can see the square footing, less emphasis for example, in Sam's. Sam's, if you see these,

it's tradition the year 2013 was a 22%. This year, it's a 12%. If you see the case for the small

format as discount stores now we have an 11% it was at 8%.

Now let's talk about dividends. Here in the right with us, what we are proposing as a dividend.

We are proposing first to change the dividend policy that we have had part of the company for

paying 35% of the earnings of the previous year. We are proposing to change it to 40%.

Let me be clear what I mean by proposing. According to Mexican law, the shareholders' meeting

that is going to be on the March 20, that's where this is formally approved. So right now, it's a

proposal. That change to 40% would be paying MXN9.2 billion as an ordinary dividend. Then

the proposal leads to pay MXN8.1 billion as an extraordinary dividend.

And then you can see that the addition of those two would be MXN17.3 billion compared to the

MXN16 billion of the previous year. And also you've seen this throughout that we have another

proposal that if such -- and I want to be here very clear to the closing of the Vips operation. So

we have the closing of the Vips operation, we would be paying another MXN7 billion that it

would be also an extraordinary dividend.

If you add up all these three, we would be talking about MXN24.3 billion compared to the

MXN16.1 billion. If you see this as a dividend yield, we paid last year a 2.2% dividends or

dividend yields. If you see the extraordinary plus the ordinary of this year, we will be talking

about 3.4% of dividend yield. If we add up the proposed -- if it's a approved digits, then the yield

would be a 4.8%.

Now the details of the payment of the dividend, and as I said, this is subject to shareholders'

approval, this is open by month. We'll be paying the dividend on a quarterly basis, the ordinary

of 40% of earning in April, August, November and February of the year 2015.

In the case of the extraordinary excluding first the part without Vips will be paid in the month of

April and the other part in the month of November. If you add up all these, it would be

equivalent to MXN0.98 of total dividend. When you add up the part of Vips, that represents

MXN0.40 that would be paid in April if it is approved. The closing of Vips, that would be

MXN0.67 and that would give you a total dividend of MXN1.38 per share.

With respect to share repurchase, here you see what we are proposing. We are proposing also to

the shareholders' meeting MXN5 billion of share repurchase. That's compared to a MXN3.3

million that we have in year 2013. And in the graph you see on a typical year, the fiscal year

2012, that is one of the years that we've had a lot of productivity in the market with this stock.

And as always we are very prudent company from the financial point of view. We have -bought

for several months for repurchase of shares. That's why you see the 1.1.

Now that you see what happened in recent years, when you see the history of the company, the

addition of 30 years, this is the way we have used the cash. We have used 56% of the cash for

26

26

reinvestments and 44% of the cash for paying dividends and the share repurchase, MXN204

billion, the amount that we have generated over the last 10 years finishing in the year 2013, and

the distribution happening at 56% reinvesting in growth and a 44% returning to shareholders via

dividend and repurchase of shares.

When you compare our investment return on equity, when you see our performance to other

companies, we can see here that Wal-Mart Stores have a 21 and we have a [17.7], we are the

second one. And you can see here that we compare us with different companies around the world.

There is also a Mexican companies, you can see the difference if you go to Mexican companies.

But you have the comparison also with best class international companies.

And just to finish, I want to remember the upcoming event for Walmex. As of today, we have the

annual report that is available on the Web site. You can enter now the Web site and you can find

our annual report. On March the 5th, you will see the release of sales for the month of February.

On March the 20th, it's our shareholders' meeting here in Mexico. And along April the 22nd, we

are releasing our first quarter results.

With this, we finish the presentation. I will invite Scot for the part of the questions-and-answers.

If he can join me for answering the questions.

Question & Answer Session

Carol Schumacher. Can we bring the lights up please. And Mariana is going to come up. Well,

we also have a couple of others who are going to help us on the Q&A. If you can bring the lights

up a little more, that would probably be good for the Q&A. I think we'd like to also ask Renzo

and Farley and Simona to come back on stage too.

Okay, for the Q&A, what we'd like to ask you guys to do is please wait for a microphone. We'll

be upfront, Mariana and I, we have a person on each side at the back. We'll try to get you as

many of you as possible, but in order for everyone to be able to hear the question, and for those

on the Webcast to hear the question, we'd ask for you to please wait until you have a microphone

before you ask the question.

It would also help us and help our team on stage to know your name and your firm before you ask

the question. We'd appreciate that too. So Mariana, do you want to take the first one on your

side?

Antonio Gonzalez. Hi, Antonio Gonzalez from Credit Suisse. Thank you for taking my question.

I wanted to make two questions. First on how you're changing your mindset I guess in terms of

different levels of growth that we're seeing compared to last three, four, five years.

As you focus on lower spending growth was obviously returning a little faster to shareholders,

turning around Sam’s. I guess we'll see a period in which in store CapEx for the market is going

to be so much lower.

So at that kind of a new normal I guess at least for this year, can you talk, Scot, probably a little

bit about whether there's even changes with respect to how you are thinking about management

compensation? Or are there new metrics that this year, cash flow generation is going to be more

important or market share or margins? That will be the first question.

27

27

And then the second question, super quickly on Sam's. Could you help us reconcile a little bit

this idea of trying to capture the Business clients and being a lot more aggressive on prices with

trying to improve the shopping experience and trying to target the customer that is probably going

today to the department stores, how could these two strategies happen at the same time? And I

guess it's very difficult for us whether you're having the timeframe for the improvement at Sam's

to reflect --. Thanks so much.

Scot Rank Can we get the house lights up and these ones in the front down a little bit?

(inaudible). spoken in foreign language I'm sorry, first question, the growth, we're expecting

growth in sales floor over the next three years between 5% and 7%. That kind of range we see

for sales growth over the next three years. And that's kind of a combination of the market

opportunity we see for us in the market. It's the right balance between growth and amortization,

the format opportunities we see.

And so, we've seen growing sales floor between 5% and 7% over the next three years. But we

see much more growth out of same store sale and digital channel (inaudible) Simona mentioned,

okay? So it's a different mix to the growth than we have in the past. On the Sam's Club, Simona,

do you want to take that one?

Simona Visztova^ Yes. Let's remember that Sam's Club even for advantage members is a no

sales environment. So it's everything about having the extraordinary item at a extraordinary

presentation at the right place and having a clean and friendly staff and clean coops.

So you don't -- you can't combine very well and it leads to better where you are because it's not

that you are going to be doing any upgrades to the shopping environment in the Club, okay? And

that leads very well with the business customer who comes to (inaudible) and get straight out of

the Club. So there is no issue with that.

Gustavo Oliveira (UBS)^ -- thank you for the presentation. Next year you also describe a lot

about inventory management and workforce management and again, this is a very important

subject that you are presenting again. (inaudible) is when you look at the result over the next five

years, especially like three years things doesn't being that strong but you have the averages the

same margin quite aggressive, probably because of you being a lot more -- you bring a lot more

productivity to the store. But are you being too (inaudible) at the store level or perhaps the

question could put differently? The inventory issues you have are more in the distribution centers

or at the store level?

Scot Rank^ Sales -- workforce management is about redistributing resources in a more efficient

manner. So actually we have indicators that shows that our customer service in many parts of the

store, not all the store, actually improved as we took some of the labor, overall labor out.

So I think we're fairly happy with the results today in workforce management. We're just in the

first phase of that, essentially we rolled out front end, last year cashier. And we just started to

rollout some of the backroom activities and other activities in a couple of our format in the fourth

quarter of last year. So that's still rolling out.

So we see a lot of upside potential, workforce productivity. But we think we can do that at the

same time we actually improve customer service in the store. So it's not an either or. There's also

a significant opportunity in the distribution network. You saw a 12% improvement in distribution

center productivity last year. And we expect a lot of significant improvement this year as well if

we look at distribution.

28

28

What was kind of setback for us I said was inventory. And I think what happen there is that the

sale volume that we kept expecting to come didn't come through. Now we're starting to see

positive trends in some parts of the store, in some format --. And those actually businesses are

doing very well (inaudible) perspective. But a lot of the inventory issues we have are not about

up to lead inventory, it's just excess inventory due to some lower sales volume.

Gustavo Oliveira (UBS)^ All right, thank you.

Carol Schumacher^ [Technical difficulty]

Anna Scott^ Yes. Hi. Good afternoon, [Anna Scott] from Goldman Sachs. There was a lot of

focus on Sam's Club, but I'm wondering about the supercenters and (inaudible) the numbers that

you recorded in your annual report today that the sales -- the average sales productivity in your

supercenters also sell about 4.3% in 2013 compared to -- about 4.8% in time (inaudible) It also

looks like the sort of value performance in the supercenters. So I'd like to spend a little bit more

what the strategies for that format.

And then further onto the different formats, Superama is the format that you haven't really talk

about much apart from the home delivery. So I'd like to understand what is it (inaudible) is there

some additional opportunity here that you're potentially moving on (inaudible) very much

pushing into the higher end format? Thank you.

Renzo Casillo^ Thank you. I'll take both of those. Supercenter, I'm not really sure the number

that you've quoted but I'll tell you what I know and then we can calculate the numbers. Actually

supercenter has been now two, more than three years with very strongly performance in vs.

ANTAD. This is the format that we know (inaudible) our performance in market base. So we

feel the value proposition of the format is actually right in place, that requires some time to invest

in delivering the proposition and the customer is (inaudible) sales performance.

So I'm not really sure the number that you quoted is it was in productivity (inaudible) that was the

number you mentioned, [4.9%]? We actually have productivity improvement in supercenter. So

last year, supercenters improved productivity. Maybe the number that you saw is the number of

our delivery reduce actually we reduced hours in the first (inaudible) we are running operationally

more efficient stores. So maybe I can take that moment and clarify to you in a moment after the

session.

The second in Superama is the other store. I think Superama is the one that is being [logging]. Is

one former that we recognize with the changes of the market we probably do take swift or fast

remote action in terms what we do in the value proposition. We actually are going to renew that

this year. You will see in Superama where we are investing significant in terms of this position in

the market, it will be reflected both in pricing as well as in the proposition in the merchandise

and the quality the customer will see. That on top of what we have mentioned, the (inaudible)

home delivery which would be accelerated significantly more than any year that we have

combined.

So yes, we want to get Superama growing at a significant and faster space, the customer expects

that from us. There is new competition that I think have been (inaudible) Mexico, and now we

didn't have developed a formula to be large soon enough so that we can see Superama also

growing into diversity in other formats. And I also (inaudible) yes.

29

29

Andrea Teixeira^ Thank you. Andrea Teixeira from JP Morgan South America. So, Scot, thank

you for the event and for the questions. I have three of them very simple, one CapEx, second,

margin and three, Suburbia.

First on CapEx, I appreciate that you separated widely the exact main -- broad focus on that

quality growth in terms of the first base growth. But you also mentioned like MXN 5 billion on

the investment on the others which I believe is remodeling. If you can help us like kind of like

think about how are you going to be practically changing some of this formats and how we

should think about it?

The second one on the margin front, you obviously had invested a lot in (inaudible) like changing

the procurement side, you're going to cycle one year in May of the change. So we can think

about how that traffic would be coming back, we saw what you present in terms of (inaudible)

Bodega Express but if you can comment in general how we should think about margins?

And the number three, on Suburbia I guess it's the Mexican fault it's true I guess special to

retailers coming in the sale side, how are you defending the share and how you think (inaudible)

going forward? Thank you.

Scot Rank Sorry, the CapEx for remodels will be distributed across what you saw in the

presentation by Farley, Simona and Renzo about shopping experience, primarily speaking. So

there have been significant improvement that were presented in the presentation about shopping

experience, and allow that CapEx to be -- in addition just the main thing and for the stores and

part for maintenance and part to be focused on improvements in shopping experience, generally

speaking. And I don't think we can run in more details on that. Excuse me.

Oh, that's in the other section about ISD and infrastructure. So that has to do with remodel piece

of the CapEx.

Andrea Teixeira^ And Scot, just -- for the first time in many years you don't break down by

format the growth in import space. Is that something where we should be thinking --

Scot Rank^ Yes. I think there's a slide that shows you the (inaudible) format, yes.

Andrea Teixeira^ I'm sorry. Okay, sorry.

Scot Rank^ So we bread it up by format for you. So you have the growth by format. And then

we broken up CapEx quite a bit more than we do traditionally. There you go.

Andrea Teixeira Okay, sorry.

Scot Rank So you have I think a lot of detail in CapEx. Question about Suburbia I guess and --

Andrea Teixeira Yes. And margin, yes.

Scot Rank. Margins, margins as we've said in the past, we're going to continue to invest in being

the best price -- having the best price in the market. So synergies that we create, things we do

through the rest of the company with regard to margins, gross margin -- gross margin, those will

be reinvested back into pricing. Our objective is to drive traffic and drive sales and to maintain

gross margins essentially. So we're not expecting significant changes in gross margin. That is

the question, okay?

30

30

Andrea Teixeira^ Oh, yes, thank you.

Scot Rank^ And Suburbia --

Simona Visztova^ Yes, you are right, the market is going about to get more interesting

competition wise and because of the specialty retailers. Suburbia though has a unique proposition

for the Mexico market. It's a the only store dedicated to through only who does the value

proposition for the whole family so everybody can shop from small kids even to the grandmother.

And that's a proposition that we are going to keep strengthening. We are [profession proposal] is

very good. It's going to be out there faster which is what we are working on. And there are

several key elements that we are going to be strengthening besides just the core apparel to be able

to put up very well and keep our market leadership as we have had. Additionally I don't -- inside

our stores that you will see throughout the year that will help us maintain the position.

Lore Serra^ Hi, Lore Serra from Morgan Stanley. I think through the presentation it was very

interesting to hear so many sort of new on top of existing strategy. So that's really interesting to

hear. I just want to go back a little bit to Sam's and general merchandise. I appreciate the color

you've given us but I'm still want 100% sure I understand why Sam's is performing so weakly.

And I wonder if you could just fill in a couple of things. One is it the weakness more in the

business side or on the wholesale side? And I didn't understand what you said by the low start

category and are you losing share because the wholesale is as weak as the economy or just the

timing in consumer who's going to the department store?

And then related to that I'm quite in on electronics and other accessories, I wonder if you could

comment on why the project label decreasing so badly 50% decline, what was going on with the

offer? And whether you feel like five years after the bank was formed you're ready to pick more

credit risk because it's been a very slow margin up and in reaching in reflection that we say we

get the systems, we got the expertise, we're ready to be more aggressive in taking credit risk.

And on a similar vein, I think (inaudible) department store you get months without interest and

you get service and how can you take that into Sam's is it not sort of any? And if there's not

enough question like it's the last question is for Rafael, which is wow, what a big change in

dividend policy and you came well above the 40% dividend payout.

So is it a onetime thing in '13 and '14 or are you thinking what the balance sheet for Wal-Mart,

Walmex which has always had a cash position of more than MXN 1 billion or MXN 2 billion, are

you be thinking what the proper capital structure is on a longer term basis or is this just two years

of high dividend, and then if you go back to a more modern payout? Thank you.

Rafael Matute^ Let me -- let me just try start the 40% is what we are changing right now. We

are not changing (inaudible) the capital composition of the company. We went from a 35% to a

40%. That's the change that we are doing now. So again about the future, right now, as of today

we don't have any plan to change the capital composition of the company, we're changing that

from 35 to 40. And the other side as you know (inaudible) for a few years. But the change is 35

to 40.

Simona Visztova^ Okay. The specific Sam's question, from what I have presented the focus is

much more on ironic side which is where we are suffering more. Advantage side, yes, the

advantage members these are the all members of the Coast of Mexico. And what I meant by

saying we lost the differentiation aid, too many SKUs with not enough differentiation in the value

31

31

proposal and in different items that really make you buy the membership and to come inside the

[cotton] having the worth to pay for it. That's what is the focus on.

Scot Rank^ What was the middle question again --

Lore Serra^ Sort of the [technical difficulty]. Okay. The desire to take up more credit risk at

Banco Wal-Mart and why the private label was weak.

Scot Rank^ Yes. I didn't say that. I think Banco Wal-Mart is doing well in the sense (inaudible)

commercial success, our own credit has been a commercial success. And so, that's gone very

well. We also - rental talks also credit program at Bodega Aurrera that we've also fine tune over

the last 18 months and are also starting to do well.

From a credit perspective, they've been within the range of what we expect, from a credit risk

point of view Banco Wal-Mart both the credit card and the new fix payment program for Bodega

Aurrera. What I said is we are interested in accelerating the availability of credit for all of our

customers. And we're exploring strategic alternatives on how we accelerate that fast, and what

we can do on our own via Banco Wal-Mart.

So what I'm saying there is I think in the medium term, we're not saying we're looking to take on

more credit risk. We're looking for partnerships, financial institution that can help us grow this

faster and maybe we give an appetite for a credit perspective, okay?

So we know we have (inaudible) quite a bit. We have products that work. We know how to

reach our customers. We know how to give them attractive alternatives. But we're not

necessarily saying that we are taking on more credit risk looking forward in the medium term. I

mentioned that in a short-term, we have doubled our capacity in January and February to generate

new credit cards. I would consider that sort of via a short-term strategy that will be both for the

medium term through some partnership.

Andrea Teixeira^ Okay.

David Strasser^ David Strasser from Janney Montgomery Scott. Just a question a little bit

broader beyond just you guys but a little bit on your history. Back in '99 when you implemented

EDLP, you did it very successfully, it seems that Brazil not -- has been more difficult to do. Can

you talk a little bit about -- and I don't know how -- it's a bit of a historical perspective here, but

how that happens so effectively in Mexico if you guys are helping in Brazil? And what you see

some of the problems being there? I'm just trying to -- I know it's a little bit broader than just

Walmex here, but for you to -- since we're down here and you guys are down as well, it's a good

opportunity to learn that.

Scot Frank^ Yes. I'd like to -- let's start with Brazil and then we can go back to what we've done

in Mexico (inaudible). The -- it's the…

Enrique Ostale^ Thank you. I was not supposed to speak. (inaudible) yes. Well, good afternoon

first of all. The statement of for us not being successful I think it's -- I'll leave that over to

[Simona] because I think for us to nearly being successful in driving EDLP mainly in food and

consumable. I think we're seeing a good trend. We are struggling more in the GM side because

as you may know Brazil it's a quite competitive market, the high, low competitive market in GM

mostly.

32

32

So it's hard to make the customer understand why they should shop through EDLP. In GM it's

helping slightly (inaudible) to do it in food and consumables, always the EDLP implementation

that I think quite though. And in my own experience on having been through the experience of

implementing the EDLP in Chile a few years ago over for the last five years since we become --

when Chile become part of Wal-Mart family. It's easier when you start with a good price

perception on implementing EDLP it's much easier. And you can see most of the examples I

think within the company when we start with a good price perception, doesn't matter if that price

perception would build through high-low, ignoring the transition through EDLP is less painful.

It's always campaign, but it's less painful.

In the case of Brazil, we didn't start there with a bit of very good price perception. And that's

why it may take a little more pain, but saying that that doesn't mean that we are not at the positive

trend. So far very much focused on food and consumables but we expect that in GM we will be

able to drive those sales growth that we are expecting. That was the question.

David Strasser^ Thank you. It's -- thank you very much.

Julian Yusuf^ Hi. [Julian Yusuf, from Bravo Capital]. Thank you very much for taking my

questions. I have two questions. First one it's on the eCommerce and the mobile. I'm very

excited about what's the opportunity and I would like to know how do you expect that to impact

your business?

I understand that although the percentage (inaudible) might happen some kind of cannibalization

than delivery cost and perhaps margins and eCommerce decreasing Brazil, the experience that we

have it's very aggressive. And I would like to hear your thoughts and your beginning experience.

And the second question, I'm sorry to go back on Sam’s but I also had some just so I understand

what really happened last year. And Scot showed very interesting graph on the credit with the

decline about 15%. And I'm not really familiar with the format here. So we'd be hearing to

understand how much sales within credit? Perhaps how much is declined and how that

comparative from deficient? That would help me to understand what happened expecting that's

one of the reasons. Thank you very much.

Scot Rank^ Sure. Let me take again the last question first. The credit graph we showed was the

trend in two credit cards, our private label credit card which is our number card in our stores.

And the number four card which is the Banco Wal-Mart card, okay? So we showed you those

two with our own card and then the private label card.

Because of the decline beginning in April, May DM sales via the private label card, overall credit

card sales were pulled down despite of a pretty solid performance in the Banco Wal-Mart card.

Credit sales, I won't give you the exact figure, but I can say that it's about 50% of our sales today

are still cash in our stores. And the other 50% are split between credit cards and other payment

alternatives like debit cards and vouchers, okay? Excuse me.

Julian Yusuf^ In Sam's, Scot

Scot Frank Rank^ No, I'm sorry the question was about in Sam's specifically? Oh, I'm sorry --

I'm sorry about that. No, Sam's is also the credit program, particularly the Sam's private label

card is important for Sam's, Suburbia and Wal-Mart generally speaking, those three formats. In

Sam's it's an important part of our proposal for our members. I won't give you the exact number

33

33

but it is -- it is an important part of our business in the case of Sam's and Suburbia. So there is

some impact in the credit on the overall result in Sam's.

Since then like I said, we doubled our capacity to generate our own credit card, and that's

obviously contributing to sales recently. So I'm back to Sam's probably we talked about the

sources of the decline of Sam's business. As I mentioned we first noticed the decline in the

business segment, in the wholesale segment, right? But over time we also thought that we're

losing value in the advantage member segment as well. And so, Sam's overall has a decline

across the club, a little bit more Simona said and the advantage member, but there are also

declines in the business member because what we saw happening in the wholesale market in

Mexico okay? Does that answer your question?

Julian Yusuf^ (inaudible).

Scot Rank^ On eCommerce, I'm sorry, eCommerce, let me expect in eCommerce. Just to give

you a little bit of a flavor, we have a very profitable grocery home delivery business in Mexico.

So our idea is to invest significantly in that business. But it is the business that will grow and also

contribute to profits in the near-term.

The general merchandise business is starting from scratch. We've had the grocery home delivery

for a number of years. That business will require a little more investment in the short-term. From

a cannibalization point of view, the focus what we're doing in eCommerce really complements

the assortment we have in the stores. And if you go on to our site today and see what we have,

we tend to have higher value items in the general merchandize site. Simona talked about

launches for items that complements the club assortment for hotels, restaurants and advantage

members and high technology and things like that as well. So generally [assortment] to

(inaudible) are relatively low because it tends to complement what we sell in the stores, okay?

Carol Schumacher^ This side.

Julio Zamora^ Hi. This is Julio Zamora from Citibank Accival. I have two questions as well.

One is going to the same store sales. Even if we look at just the self service like you showed,

we're still seeing same store sales below inflation. That have has not been the case for a long

time. Where do you guys see same store sales going in the future when you're talking about

population growth and formalization et cetera? What would be -- do we still expect negative real

same store sales for the next five years or so?

Secondly, within that question, credit sales the dry food is that something that you think is

sustainable? I think you mentioned a program where you're going to be selling at equal payments

et cetera. That doesn't seem like a sustainable business but maybe I'm wrong, than there before.

And thirdly, going back to Sam's, what would be the timeframe that you guys are giving

yourselves to turn to show some difference in trends here in the Sam's business?

Renzo Casillo^ Okay. I'll take your first two. Comp sales, our focus is accelerate the difference

versus the rest of the market. Last year we had a good relative check (inaudible) on retails to

grow 3% maybe (inaudible) 3.5, (inaudible) in my case I cannot forecast what would become in

the previous year but our goal is to accelerate the difference between the waver growing and the

rest of ANTAD okay?

34

34

Julio Zamora^That (inaudible) answer your question in terms of comp sales but 3% growth of the

economy is [real birth]. We're talking about 1% nominal sales growth with 3% or 4% inflation.

Renzo Casillo^ That was (inaudible) I mean, these are the tiers that I know. I mean, (inaudible)

ANTAD went down (inaudible) we can do much better than that. So we try to accelerate that.

But what you see as remember is that we increased our price gap. Our price limit over 100 basis

points better in 2013 versus 2012. So we invested a lot in terms of increasing the value to the

customer and that's working for us, our formats are in better position today because our position

to invest. How now we invest to have -- we have grown better and maybe some inflation benefit

we have got (inaudible) to deliver (inaudible) customer to better price gap so we can have the

value proposition. And over time we expect to increase the gap vs. ANTAD in terms of growth,

and again, I cannot give you the number (inaudible) but I would tell you (inaudible) bigger gaps

against the rest of the market.

The second question was related to -- remind me?

Julio Zamora^ Credit.

Renzo Casillo^ Credit. I do believe it's a sustainable part because some of our competitor have

those (inaudible). So if it is sustainable to them, it is sustainable for us, okay? I think it took us

too long we are going to find the right way to talk to our valued customer. Our Bodega customer

it's a customs customer, okay? We may have the lowest prices but again, they -- she can only pay

MXN 100 a week, that's all.

Now, we are being (inaudible) program that gives to develop and she will now save money on the

item, she would save money on the financing. So we believe it is sustainable and we believe it

will be meaningful forecast. So I think (inaudible) in our general merchandise business

particularly electronic and high-ticket items, it would be a (inaudible).

Scot Rank^ The credit program (inaudible) [bodega] is not focus on food. Let me be clear.

What we sign in the point of sale is for general merchandize item and apparel. So let me just --

there maybe some confusion there. The fixed payment (inaudible) it's not focused on food, it's

focused in general merchandise.

The second is from -- what we're doing from a planning process, we're planning to beat inflation

on same store sales and we're also planning not to beat inflation on our productivity programs,

okay? So from a productivity point of view, we're still maybe do not sell -- grow same store sale

(inaudible) inflation. And that's making sure we drive productivity, in case we don't that same

store sales will reach inflation.

From a sales perspective, we're shooting to beat inflation. So that's essentially what we're

planning in the business looking forward, okay? I'm not sure that means we'll hit it right in the

first couple months but that's what we're planning to do, okay?

Simona Visztova^ To the specific Sam's question, we're expecting and we are working on during

Q3, start improving trends as we speak but the Q3 would be the more relevant --

Mariana Araujo^ Hi. Yes, this is Mariana from MFS Asset Management. Thanks for taking my

question. I have two questions. The first one that you mentioned a couple times that consumers

are moving incredibly fast in the emerging market but you didn't go through the issue. So

35

35

specifically to Mexico, what are the main changes in customer behavior and how is that affecting

your business and what are you doing to address that issue in terms of format or whatever it is

that you have to that?

And the second question is related to traffic, we cannot analyze that the number of your

competitor because Wal-Mart has been the only one that will need this traffic. But if you look at

traffic numbers on Wal-Mart, it has been deteriorate and it has been zero or subzero for a long

time even before you had GDP and public spending issues in Mexico.

So I just wonder what are the main reasons for this? And again, what you can do to address that

in order to be able to beat inflation (inaudible) numbers?

Renzo Casillo^ Let me [give a shots] (inaudible) to complement on both. I think the change on

the customer is shockingly fast and I think it's driven by technology. The access to smartphones,

it's more and more accelerated. In many cases our technology access information and access to

pricing it carries well for us because we are price leaders. And in most price competitiveness we

will win for sure. But as it puts pressure (inaudible) that when we -- the customer starts to have

expectations from our us surely, we need to move fast beforehand. That's why I think a lot of the

comments that we talk about the import highway is because the customer ultimately reacts first to

act us to help merchandize, but maybe few years ago (inaudible) couple of years today to Mexico.

Now, she want it much faster.

So we're learning a lot. (inaudible) but for sure she is demanding, she's demanding more value

for sure. When she goes to the store, she actually expecting more value, and that goes to your

second question of traffic. We are seeing now, when we make the right decision from pricing,

when we start to implement (inaudible) effectively it helps the trends in traffic, okay?

So -- learning for us the format the way we have delivered the most value we saw an

improvement on the trends, some against the negative but the gaps versus what we have in the

previous months are significantly lower. We have four months on positive trend already for the

few months.

So we're seeing that the value focus that we've been doing on establishing our price (inaudible),

and we communicated well will be a key factor. I think over the long run, the combination of the

as David call it, the intersection between the digital and the stores will gain up the most sales, the

connectivity we have. So when she -- when she has a net she feels comfortable whether she

wants to go to the store or she wants to go to eCommerce or whether she wants to go home

delivered. We want to cut through (inaudible) decision that she has to make.

Scot Rank^ Yes. Go ahead Farley.

Farley Sequeira^ Going back to the question regarding customer insight and all that. I mean, we

found out that all the customers in all six countries, (inaudible) from Mexico to Central America,

six countries, they do evolve and they do evolve very quickly. They want it all. It's interesting

time that we're leaving on one side they want more eCommerce and other side they want more

price relevance. In certain categories they want more service.

So when you take for instance our pharma that we're introducing in Central America, we're

getting -- we're touching a very good ground with them, we're connected with them because now

they're beginning to find that in one store they can still get a lot of value to their necessities, not

only for food but also for sickness and wellness or whatever.

36

36

So the customer is changing. And when you look at in Costa Rica, they want more price. When

you look at Guatemala, they want more service in food area. So it's changing, it's dramatically

changing from country to country, from area to area. And we believe that we have the formats to

really tackle on that. It's the apps -- my daughter is now very click connected and all of those

things. And so, she's demanding more. The customer still wants it all. I think it wants the price.

It wants service. It want to have their latest model in certain items, in certain appliances. And

they want those imports --

Scot Rank^ Let me just -- one more answer to that question on consumer trends we're seeing

because I think that the team here has captured what we presented (inaudible) much more

acceptance are private label. Frankly we've been surprised at the rate of growth of a lot of our

private label business. And it's not necessary from catalogue expansion, it's the same items that

are growing a lot faster than they were couple of years ago. So we're seeing a move towards

private label and acceptance of private label customers.

The second is import, Farley didn't mentioned it but we are doing a lot of import programs in

Central America. The acceptance of imported items is also been much better than we'd expected.

We're seeing a big improvement in our sales of imported items. Forgetting catalogues again,

going back to like to like items and what's have been comfortable year to year, and that's one

reason you'll see the emphasis on the import highway. And then there are a lot of other things

happening to with leading habits and things like that. We're seeing a lot of healthy snacks in new

item coming on board as well.

So generally that there's a quick movement particularly new items or items that give tremendous

value like private label. (inaudible) extreme, seeing a lot of separation have a way from the

middle more towards the extreme.

Michael Exstein^ Thank you much. Holding the back cheap seats. Walmex has been a well --

has been a well oiled machine for many, many years. But over the last five years, you

dramatically increased your portfolio both in terms of countries you served and served with the

management, the same management team and you have new areas of interest, banking,

eCommerce. Is it possible this management team to stretch too thin to do just for the business?

Scot Rank^ Okay. Well, first of all I think we've made some significant additions to the

management team and reinforcement for management team over the past 18 months in particular.

We talked a little bit about this in our meeting last year. We brought Renzo onto the team from

Brazil and Porto Puerto Rico originally. We got Simona back to the team. We added [Tom] in

Legal Corporate Affairs and M&A through Alberto Sepulveda. We brought in new talents

around HR. And we got Mary Valencia] back who's running Infrastructure for us generally ISD,

logistics and the innovation and process for engineering. So we've been reinforcing the team

quite a bit I think particularly over the last 18 months or so. So on that hand, I think we've added

quite a bit.

The other is we talk -- one of our priorities is to simplify the business. So you know about the

beats Vips, the master of the Vips business. We're waiting for approval. We expect to receive

hopefully very soon on that. We just talked about banking and alternatives that we're looking for

in banking to simplify the business there and grow that business at the same time. At the same

time a lot of these discussions we have today was about how we simplify things like assortment

and other things we do in a day to day business. So I think what we're trying to do is focus on our

37

37

core business. Our core business is self service and Sams Club across the six countries we're

operating.

Michael Exstein^ And finally, why do you think your principal competitor in the warehouse

business in Mexico so dramatically outperformed you in the last 18 months?

Scot Rank^ I think it's what we've been -- what we've been talking about.

Michael Exstein^ So you think it's self inflicted?

Scot Rank^ (inaudible) lose the value proposition for our members.

Michael Exstein^ Self inflicted?

Scot Rank^ Yes. Self inflicted, I'm not sure it's the right answer. I think a lot of it has to do with

things we stop doing and things that the other rest of the market started doing including self

service in department stores. So it's not necessarily direct club to club comparison. As Simona

mentioned, we lost ground versus department store, we even lost ground against our own self

service format individual in terms of differentiation that the fans Sam’s club members (inaudible)

to have.

Jason Derise^ Hi, it's Jason Derise at UBS. Just following up on -- that was the question I was

going to ask about the U.S. competitors. So I'll just ask my follow up to what I was going to ask.

Are you losing members that's driving the sales down? You're shaking your head so I guess not,

but -- okay.

Simona Visztova^ No, confirming my head, no, we are not losing members.

Jason Derise^ That's it.

Carol Schumacher^ Okay, Ana.

Ana Lanzana^ Okay. Hi. It's Ana Lanzana, from Alliance Bernstein. Actually two questions,

the first one, could you better explain the rational for to beat up the slowdown in the space growth

expansion? Is that more driven by the lower productivity you've been having or more of the

reason is behind difficult to get permits et cetera, the process become more complex in Mexico?

Could you better explain the rational for a beat up for this lower growth?

And the second question is more driven by why is the food retail segment as a whole has been

underperforming more than in other down turn we saw in Mexico. What's your interpretation for

what's going on? Thank you.

Scot Rank^ Let me -- overall growth, I think we talked about market forces in the beginning of

my presentation. And we believe that based on those market forces that the -- that the most

reasonable time we can have looking forward in the next three years is the growth of 5% to 7%

that we talked about. The market forces from a decade ago were supporting maybe relative new

store growth that I think were higher than 5% to 7%. And when we talk about the shifting the

source of growth from just new stores to digital channel and comp store sales. So those market

forces that I shared beginning of my presentation that we think justify us focusing more and more

in the comp store and the digital channels.

38

38

The second part of the question again, I'm sorry --

Ana Lanzana^ Why food retail has been separating more than in the past down turn of the

economies.

Renzo Casillo^ And actually in our case, food has been accelerating our growth. I mentioned

earlier that for 2013 it was one of the biggest part of the growth begins in market. Actually the

best performance since 2010. So in terms of the -- in our case, speaking for the market as a whole,

I think it's a more retention of in proposition on the electronics (inaudible) with food retailers we

have not implemented a robust enough -- particularly electronics because when you look at other

areas of general merchandize, we're doing very well, actually gaining significant share against the

market. (inaudible) electronics (inaudible) that have done well in the last couple year and that's

what we're trying to change this year.

We're reinventing ourselves on the electronics (inaudible). And that's why I think some of our

partners have done a better job of having the right program, but the eCommerce come along with

us (inaudible) two way of reaching our customers and deliver that proposition.

Luis Willard^ Hi. Luis Willard from GBM. Thank you for the event and for taking my question.

Well, I have two actually. The first one is what do you think are the main areas of opportunity of

EDLP execution going forward? And how -- what have failed on translating EDLP into faster

maturity of new stores or improving in-store return on capital?

And the second question is the previous two years we talked about more processes within your

opening process. (inaudible) that took you long to accelerate (inaudible). What has changed in

this expansion and is the reading about you want to focus on your previous stores to help them

mature and get to better returns faster or we should continue to think about more processes within

your opening procedures?

Renzo Casillo^ So to make sure I understood (inaudible) you're having EDLP, could you repeat

it again?

Luis Willard^ Yes. What I mentioned is what has failed on executing EDLP that it has failed to

translate into a more strong or into stronger same store sales or new stores maturing faster?

Renzo Casillo^ Okay. I think the big part of EDLP is EDLC you cannot go do one without the

other one. I think the good elements that we have been doing in the last 12 months is

strengthening EDLC elements of productivity at store level, elements of operational efficiency

(inaudible). But also the way we price, pricing right from the beginning, negotiated (inaudible)

vendor community so that we start with the right price from day one. All of those elements will

accelerate growth, that probably proven across the board. And we're seeing (inaudible) it's not

inefficient we are seeing that where we've been able to move closer to the EDLP model where we

price right from the beginning, we actually seen the better growth in our business.

So I don't think it shouldn't, I think it's helping. We just -- we start affecting on both EDLC and

EDLP. And that allowed us to be more competitive. So we will expect over time (inaudible)

across to closer to EDLP -- benefit to the customer in terms of value and the benefit to us in terms

of sales.

In terms of second question and I think it was related to the new store, right?

39

39

Luis Willard^ Yes. The previous years you said that the reason behind or the main reason behind

the low long in the growth was long procedures or processes within the opening of new stores.

Renzo Casillo^ The permit process?

Luis Willard^ Yes.

Renzo Casillo^ Okay. --

Scot Rank^ You know changes and what we've done to reinforce our store opening process

we've implemented already and that's in the base of what we opened this year and that will be in

the base of what we will be opening over the next three years. So that's potentially in the base of

our business today.

Luis Willard^ So we could see this as focusing on improving the existing base right? Of stores?

Scot Rank^ Yes.

Scot Rank^ Yes. Yes. The problem is improving same store sales generally speaking but we're

also opening new stores at 5% and 7% sales per growth a year which is pretty significant. So if

you look at the square footage and square meters that are going into market that's a fairly

significant growth program with the CapEx that Rafael also presented.

So we think it's consistent with the market forces that are shaping the market opportunities

looking forward. And it's also good for our base business if you're going back and reinforcing

same store sale at the same time we invest in new digital channels --

Carol Schumacher^ I think Scot, we have time for one more question. I think [Francisco] is next.

Francisco Chevez^ Thank you. Thank you. The question is -- this is Francisco Chevez with

HSBC. I want to ask Farley now that you have all your systems in place, all the integration is

done, isn't it time for Central America to grow faster? And also along same lines, what are the

challenges when you have such discrepancy in terms of the informality of the market in places

like Honduras or Nicaragua and Costa Rica which is a lot more developing? What kind of

opportunities do you think you can have in those markets?

Farley Sequeira^ We believe the market informality is one that we can quickly take market share

from them -- is there. One of the key findings that I shared with you was we're in conduct portion

regarding perishables which is a large portion of which the informality draws their business. So

they drop plastic through a lot of (inaudible) specifically fruits and vegetables.

So we think that we can add better value proposition to our store through price and through

security in our store, that's the first thing. Going back to the question of EDLC, EDLP, we are

also in Central America not only installing the system but we're also bringing about the way that

we do business. EDLC, EDLP is the way that we do business. And this also is evolving in

Central America. We first need to go back to a good negotiation with the vendors, convinced

them that this is a better way of doing business for them. It enables them to give them more -- a

better forecast. It bring synergies not also for us the distribution center but also for them, their

own distribution network. So it's a way of doing business. And we believe that with

collaboration from our vendors, we can speed up the comp sales growth in Central America.

40

40

The other category that I share with you is appliances, and I gave you two spectrum because -- so

you can see what's going on at the low-end format which we have a lot of more. And also the

supercenter format indicates of appliances. But we identify all the categories. I mean, we're not

going to share with you in detail what the other categories are but we are strongly believe that

those are the ones that are going to draw traffic into each one of the formats.

Rafael Matute^ Just being the case of Central America, the growth there is plan of 7.6% for new

stores for this year.

Carol Schumacher^ And that was covered on the slides too. Just a reminder, we do produce a

transcript for this meeting. So you are able to refer back to both the corporate Web site as well as

Walmex where the slide will stay available. Within about 24 hours we will also have a transcript

available, particularly of those of you on the Webcast who may want to refer back to that.

Regarding dinner, we're going to exit through that side, dinner is assigned seating and there will

be substance on the other side of the doors to be able to give you information about your table for

dinner. So you'll go out these doors and then around that way and dinner will face way beyond

the other side behind the black wall.

So thank you very much for joining us for the presentations today. And the team will be

available over the next few minutes before we head into dinner for any follow up questions. This

ends our Webcast. Thank you.