Investor Presentaiton
A number of federal and local government agencies in México have also recently
initiated investigations of these matters. WALMEX is cooperating with the Mexican
governmental agencies conducting these investigations.
The Audit Committee and the Corporate Governance Committee of the Board of
Directors of WALMEX, as well as the Board of Directors of WALMEX, have been
informed about these matters and have determined, by a unanimous vote of the
independent directors only, that it is in the best interests of WALMEX to continue to
cooperate at this time with WMT and the U.S. and Mexican agencies conducting these
investigations.
WALMEX could be exposed to a variety of negative consequences as a result of the
matters noted above. There could be one or more enforcement actions in respect of the
matters that are the subject of some or all of the ongoing government investigations,
and such actions, if brought, may result in judgments, settlements, fines, penalties,
injunctions, cease and desist orders or other relief, criminal convictions and/or
penalties. The shareholder lawsuits may result in judgments against WMT and its
current and former directors and current and former officers of WMT and WALMEX
named in those proceedings. WALMEX cannot predict accurately at this time the
outcome or impact of the government investigations, the shareholder lawsuits, the
internal investigation and review. In addition, WALMEX expects to incur costs in
responding to requests for information or subpoenas seeking documents, testimony
and other information in connection with the government investigations, and it
cannot predict at this time the ultimate amount of all such costs. These matters may
require the involvement of certain members of WALMEX's senior management that
could impinge on the time they have available to devote to other matters relating
to the business. WALMEX may also see ongoing media and governmental interest in
these matters that could impact the perception among certain audiences of its role as
a corporate citizen.
On June 20, 2012, WALMEX publicly disclosed a downward adjustment to its 2012
growth plan.
WALMEX, its Board of Directors and its Audit Committee and Corporate Governance
Committee will at all times ensure compliance with applicable Mexican law and ensure
that they create value to WALMEX, acting diligently and adopting reasoned decisions,
without favoring any shareholder or group of shareholders.
Although WALMEX does not presently believe, based on the information currently
available and the advise of its external Mexican counsel, that these matters will have
a material adverse effect on its business, given the inherent uncertainties in such
situations, WALMEX can provide no assurance that these matters will not be material
to its business in the future.
II. Sale of the restaurant line of business
On September 10, 2013, the Company reached a final agreement with ALSEA, S.A.B.
de C.V. (ALSEA) for this company to acquire 100% of WALMEX' restaurant line of
business, which includes the Vips, El Portón, Ragazzi and La Finca ("VIPS") restaurant
chains. The closing of the transaction is subject to the approval of Mexico's Federal
Economic Antitrust Commission (Note 7).
2.- NEW ACCOUNTING PRONOUNCEMENTS:
In 2012, the International Accounting Standards Board (IASB) issued the following
International Financial Reporting Standards (IFRS).
a. IFRS 10, Consolidated Financial Statements - This standard establishes a single model of
control that is applicable to any entity (including special purpose entities). IFRS 10 supersedes
IAS 27, Consolidated and Separate Financial Statements, and SIC 12, Consolidation - Special
Purpose Entities.
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b. IFRS 11, Joint Arrangements This standard establishes the principles for financial
reporting by parties to a joint arrangement. The option of applying the proportional
consolidation method is eliminated for joint ventures (understood based on the new
definition). This standard supersedes IAS 31, Interests in Joint Ventures, and SIC 13,
Jointly Controlled Entities - Non-monetary Contributions by Venturers.
c. IFRS 12, Disclosure of Interests in Other Entities - This standard brings all of the different
disclosure requirements for subsidiaries, joint arrangements, associates and structured
entities together in a single standard.
d. IFRS13, Fair Value Measurement - This standard defines the concept of fair value and
requires the disclosure of fair value measurements.
These new standards became effective for fiscal years beginning on or after January 1,
2013. The adoption of these standards had no material effect on the Company's financial
statements.
3.- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
A summary of the significant accounting policies used in the preparation of the consolidated
financial statements is described below. These policies have been applied consistently with those
applied in the year ended December 31, 2012.
2013 Financial and
Social Responsibility Report
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