September 3, 2014 - Walmex...Bodega Aurrerá Express Country Informal Market Share Mexico 52%...
Transcript of September 3, 2014 - Walmex...Bodega Aurrerá Express Country Informal Market Share Mexico 52%...
September 3, 2014
This presentation may contain certain references concerning
Wal-Mart de Mexico S.A.B. de C.V.’s future performance
that should be considered as good faith estimates made by
the Company. These references only reflect management
expectations and are based upon currently available data.
Actual results are always subject to future events, risks and
uncertainties, which could materially impact the Company’s
actual performance.
Walmex: 1H14 Consolidated Results
1H14 1H13 % Increase (Mx$ million) $ % $ %
Total revenues 207,173 100.0 199,425 100.0 3.9
Gross margin 45,169 21.8 43,461 21.8 3.9
General expenses 31,176 15.0 29,737 14.9 4.8
Operating income 14,124 6.8 13,722 6.9 2.9
EBITDA 18,773 9.1 17,997 9.0 4.3
Net income before disc. operations 9,685 4.7 9,829 4.9 -1.5
Net income 15,167 7.3 10,118 5.1 49.9
Index
1. Strategies to drive sales
• Grow same store sales
• Open new stores
• Invest in eCommerce
2. Operate for Less
3. Return to Shareholders
1. Strategies to Drive Sales
Grow Same Store Sales
Same Store Sales: Outperforming the Industry
Source: ANTAD & Company data.
ANTAD Self-service ex-Walmex
Walmex Self-service
-0.9 -0.5
2.3
Walmex Self-service + Sam’s Club
Mexico Central America
January – June 2014 (%)
3.0
Self-service
+320 bps
Mexico Self-service: Outperforming ANTAD
Self-service
Apparel
+330 bps
General Merchandise
+300 bps
Food & Consumables
+330 bps
Growth Rate Difference vs ANTAD Jan-Jun 2014
+320 bps
Sources of Same Store Sales: Modular Planning
Process
Processes Technology
Resources
Training Tools
Base Modular
8%
Group 1 Modular
50%
Enhanced capabilities in:
• Systems
• People
• Processes
More Compelling
Assortment
Sources of Same Store Sales: Merchant Training
Merchant Academy:
• EDLP
• Category development
• Modular
• Regional relevance
50% of
Merchants have
been Trained
Sources of Same Store Sales: Shopping
experience
Improvements in key
areas:
• Perishables
• Electronics
• Babies
Show the
value
Sources of Same Store Sales: Credit Offer
Banco WalmartCredit Card Sales
Jan-Jun 2014
50%
635 thousand
Cardholders
Banco Walmart:
• Competitive consumer
credit in stores and clubs
• Exploring alternatives to
maximize potential
Sources of Same Store Sales: Small Formats
Same Store Sales
YTD Growth (%)
12
Bodega Aurrerá Express
Country Informal Market
Share
Mexico 52%
Honduras 74%
Nicaragua 72%
Guatemala 71%
El Salvador 70%
Costa Rica 38%
Source: INEGI & The Nielsen Company
Small formats:
• 878 Bodegas Aurrerá Express
• Lower prices
• Comparable convenience
Satisfy Customers of
informal channels
Turning Around Sam’s Club: Value-focused
“Saving members money on items they buy most and
surprising them with the unexpected find.”
Mission
Turning Around Sam’s Club: Value-focused
Valued Membership Organization
Accelerate
across each area
Innovate &
optimize for
sustained growth
Build a strong
foundation
Turning Around Sam’s Club: Focus in 5 Key Areas
• Reinforce training
• Strengthen culture of ownership
• Grow the base
• Simplify processes and KPIs
• Increase services
• Price leadership
• Exciting and differentiated merchandise
• Improve service and operational excellence
• Increase efficiency and productivity
• Planning & Integration team
• Level set systems to US
Talent
Membership
Merchandising
In-Club Experience
Innovation &
Change Management
1. Strategies to Drive Sales
Open New Stores
2014 New Store Growth Program
Total Walmex
~4.4%
Sales Area Growth
3.1 Sales Area
4.4 Total Box
Additional million sq. ft.
Mexico CentralAmerica
~4.1%
~7.6%
~149 New Stores
1. Strategies to Drive Sales
Invest in eCommerce
eCommerce: Strong Competitive Advantage
• Scale in merchandising
• Leverage Wal-Mart Stores, Inc. investment
• Extensive brick & mortar footprint
in stores and logistic
• Best in class national team
UNIQUE COMPETITIVE ADVANTAGES FOR
OMNI-CHANNEL BUSINESS
eCommerce: Accelerating Growth of Grocery
Home Delivery
eCommerce: Walmart.com.mx First Anniversary
App: IOS & Android
2. Operate for Less: Lowest Cost Operator in
Mexico
Expenses Last 12 Months to June 2014 (% of Total Income)
13.7 15.5 16.4
17.9
27.4
Walmex Chedraui Soriana Comerci Oxxo
Comparable Stores Growth (%)
2. Operate for Less: Central America Driving
Efficiencies
-2.2%
Store labor hours
Energy Efficiency: KWh
-2.1%
2013
2014
16.2%
Distribution Center Cases per labor hours
Labor Productivity
4,929
153,912 173,255
6,062
3. Return to Shareholders: Financial Strength
TOTAL $ 220,932
Walmex Balance Statement (June 30, 2014, Mx$ millions)
Cash Acct’s receivable (Banco Walmart)
Inventories
Fixed assets & others
Suppliers
Acct’s payable (Banco Walmart)
Shareholders’ equity & others
Assets Liabilities &
Shareholders’ Equity
41,593
20,498
41,615
Return for Shareholders: 2014 Uses of Cash
Fixed Assets
Dividend
Payment
Share
Repurchases
$42.7
$13.4
$17.3
$5.0 *
68%
32%
Mx$ billion
* Maximum amount approved by Shareholders.
$7.0 Vips
divestitures
Total