Investor Presentaiton

SPECIALTY FORMATS Division The Specialty Formats division includes Sam's Club and Suburbia, serving different needs due to the very nature of each one. The change in structure has proven quite positive for the businesses in this division; decision-making processes have become more agile thanks to the clearly-differentiated strategies and actions for each one, thus allowing us to provide specific solutions for each business and focus on each type of customer and member. Sam's Club, has refocused on the value proposition for our advantage and business members so as to meet their particular needs. With this strategy, our members can be convinced of the great value of their membership. We have reinforced our offering with basic merchandise at very competitive prices, and with highly differentiated products. Suburbia has been assigned the responsibility of the apparel division for Self-service, allowing us to align the processes for all the apparel division, thereby benefiting our self-service customers. Now, each format offers precisely what its specific customers want and need. Moreover, by aligning the processes for all our apparel divisions, we can generate considerable savings that are ultimately reflected in better prices. By reorganizing and aligning different areas, we are able to design increasingly efficient strategies with our suppliers, optimize raw material use, potentiate private labels, and work as a team of true merchants and offer our customers and members fashion items with the best prices, assortment, and quality. In addition, we made the important decision to sell our restaurant business -Vips, El Portón, and Ragazzi- with the purpose of concentrating our commercial efforts on the retail business. An agreement was reached for the sale price and now we await the final approval of the authorities to close the transaction. Its operation continuity is guaranteed through support agreements until completion of the final transfer of this division. CENTRAL AMERICA Simplification of the business in Central America followed several strategies. We implemented a tool known as "Sister Stores". This consists of selecting similar performing stores and standardizing inventory levels, making volume buys of merchandise, and pursuing operating efficiencies. Thanks to the enhanced management of associate work schedules in our stores, in a mere six months we have been able to achieve considerable savings. Another measure undertaken entailed efficiently scheduling work shifts in all stores to ensure operating discipline. In addition, automatic replenishment for general merchandise was implemented, and merchandising for general merchandise and textiles was concentrated into a single business unit serving the four formats. In this manner, synergies are achieved and sales and margins in these departments are boosted. 2013 Financial and Social Responsibility Report 14

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