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
69View entire presentation