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Investor Presentaiton

WAL-MART DE MÉXICO, S.A.B. DE C.V. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2013 AND 2012 Amounts in thousands of Mexican pesos, except where otherwise indicated 1.- DESCRIPTION OF THE BUSINESS AND RELEVANT EVENTS: a. Description of the business Wal-Mart de México, S.A.B. de C.V. (WALMEX or "the Company") is a Mexican company incorporated under the laws of Mexico and listed on the Mexican Stock Exchange, whose headquarters are located at Nextengo #78, Colonia Santa Cruz Acayucan, C.P. 02770, in Mexico City, Mexico. The principal shareholder of WALMEX is Wal-Mart Stores, Inc., a U.S. corporation, through Intersalt, S. de R.L. de C.V., a Mexican company. WALMEX holds 99.9% equity interest in the following groups of companies in Mexico and Central America: Group Nueva Walmart Suburbia Vips Importing companies Real estate Service companies Walmart Bank Walmart Central America Line of business Operation of 1,589 (1,423 in 2012) Bodega Aurrerá discount stores, 243 (227 in 2012) Walmart hypermarkets, 156 (142 in 2012) Sam's Club membership self-service wholesale stores, 92 (90 in 2012) Superama supermarkets and 10 (6 in 2012) Medimart pharmacies. Operation of 109 (100 in 2012) Suburbia stores specializing in apparel and accessories for the entire family. Operation of 262 (266 in 2012) Vips restaurants serving international cuisine, 92 (in both years) El Porton restaurants serving Mexican food and 6 (7 in 2012) Ragazzi restaurants specializing in Italian food. Import goods for sale. Property developments and management of real estate companies. Rendering of professional services to Group companies and not-for-profit services to the community at large, and shareholding. Operation of 201 (263 in 2012) bank branches. Operation of 466 (459 in 2012) discount stores (Despensa Familiar and Palí), 100 (97 in 2012) supermarkets (Paiz, La Despensa de Don Juan, La Unión and Más x Menos), 75 (67 in 2012) discount warehouse stores (Maxi Bodega and Maxi Palí), 20 (17 in 2012) Walmart hypermarkets and 1 (2 in 2012) ClubCo membership self-service wholesale stores. These stores are located in Costa Rica, Guatemala, Honduras, Nicaragua and El Salvador. b) Relevant events 1. Legal proceedings Wal-Mart de México, S.A.B. de C.V. ("WALMEX") is a subsidiary of Wal-Mart Stores, Inc. ("WMT"). WMT owns approximately 70% of the shares and voting power in WALMEX and has the ability to designate at least a majority of the directors of WALMEX. The remaining shares of WALMEX are publicly traded on the Mexican Stock Exchange and, to the best of the knowledge of WALMEX, no shareholder other than WMT and its affiliates owns more than 2% of the outstanding shares of WALMEX. Currently, the Board of Directors of WALMEX is composed of 11 directors and 6 alternates. The Audit Committee and the Corporate Governance Committee of the Board of Directors are composed exclusively of independent directors (including alternate directors). WMT is subject to a wide variety of laws and regulations in the United States of America and in the countries in which it operates, including but not limited to the U.S. Foreign Corrupt Practices Act (the "FCPA"). AS WALMEX publicly disclosed on April 23, 2012, WMT is the subject of an investigation under the FCPA by the U.S. Department of Justice and the U.S. Securities and Exchange Commission following a disclosure that WMT made to those agencies in November 2011. The Audit Committee of the Board of Directors of WMT, which is composed solely of independent directors, is conducting an internal investigation into, among other things, alleged violations of the FCPA and other alleged crimes or misconduct in connection with foreign subsidiaries, including WALMEX and whether prior allegations of such violations and/or misconduct were appropriately handled by WMT. The Audit Committee of WMT and WMT have engaged outside counsel from a number of law firms and other advisors who are assisting in the on-going investigation of these matters. WALMEX has also engaged outside counsel to assist in these matters. WMT is also conducting a voluntary global review of its policies, practices and internal controls for FCPA compliance. WMT is engaged in strengthening its global anti-corruption compliance programs through appropriate remedial anti-corruption measures. WALMEX is taking part in such voluntary global review and strengthening of programs. Furthermore, lawsuits relating to the matters under investigation have been filed by several of WMT's shareholders against it, its current directors, certain of its former directors, certain of its current and former officers and certain of WALMEX's current and former officers. WALMEX is cooperating with WMT in the review of these matters and it intends to continue fully cooperating in such regard. 2013 Financial and Social Responsibility Report 69
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