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Investor Presentaiton

Ogistica 11 PRODUCTIVITY IN ENERGY AND MERCHANDISING Another accomplishment in productivity in Mexico is the savings stemming from a reduction in energy use in our stores -some 3.3% less and 61 million kWh- which is equal to the annual energy used by 34,000 homes and 30,000 tons less of CO2 emitted into the atmosphere. Initiatives such as installing doors for refrigerated display cases in our stores, modernizing the lighting system with LED bulbs in our units, among others, helped us to achieve these savings. Thanks to the new commercial structure and centralized system we now have, productivity in our merchandising departments improved significantly. By focusing on areas of specialization, greater efficiency in merchandise processes, selection and segmentation has been possible. Closer attention is paid to suppliers as they now have a single contact point instead of a different buyer in each format. At a consolidated level, all these productivity initiatives and disciplined expense management has allowed us to post increases that are less than half the growth rate of our sales floor. On a comparable basis, excluding the store lease expense, general expenses increased 5.2%, whereas the average sales floor growth was 7.1%. MIGRATION OF ADMINISTRATIVE PROCESSES TO COSTA RICA The need for a flexible organization, ready to adapt to the ever changing needs of the customers, also necessitates having a high-performance administration. This has been accomplished with the creation of our Global Shared Services for Latin America (GSSLA), located in San José, Costa Rica. It is here where we have consolidated the processing of financial operations and transactions, not just for Mexico and Central America, but for the other Latin American countries where Walmart operates. GSSLA is a service-oriented organization that offers support to our internal customers by consolidating accounting processes, systems, and transactional operations. Among the more important operations that have migrated are: accounts payable and accounts receivable management; asset and master data management; central accounting; payroll processing; payment analysis; and supplier claims. The benefits of having centralized these activities are multiple, such as operational savings, process standardization, implementation of best practices, and leveraging costs and support services. Another accomplishment in productivity in Mexico is the savings stemming from a reduction in energy use in our stores -some 3.3% less and 61 million kWh- which is equal to the annual energy used by 34,000 homes and 30,000 tons less of CO₂ emitted into the atmosphere. 2013 Financial and Social Responsibility Report Warmart GSS Latin Amer 27
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