Wal-Mart de México, S.A.B. de C.V.

WALMEX *

MX01WA000038

Discount Stores

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Wal Mart de Mexico B de C : Results 4Q19 to the MSE

February 13, 2020 at 05:19 pm EST

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Quarterly Financial Information

[105000]	Management commentary..................................................................................................................................	2
[110000]	General information about financial statements ...........................................................................................	14
[210000]	Statement of financial position,current/non-current.....................................................................................	17
[310000]	Statement of comprehensive income, profit or loss, by function of expense...........................................	19
[410000]	Statement of comprehensive income, OCI components presented net of tax.........................................	20
[520000]	Statement of cash flows, indirect method ......................................................................................................	22
[610000]	Statement of changes in equity - Accumulated Current ..............................................................................	24
[610000]	Statement of changes in equity - Accumulated Previous ............................................................................	27
[700000]	Informative data about the Statement of financial position .........................................................................	30
[700002]	Informative data about the Income statement...............................................................................................	31
[700003]	Informative data - Income statement for 12 months.....................................................................................	32
[800001]	Breakdown of credits.........................................................................................................................................	33
[800003]	Annex - Monetary foreign currency position..................................................................................................	35
[800005]	Annex - Distribution of income by product .....................................................................................................	36
[800007]	Annex - Financial derivate instruments ..........................................................................................................	37
[800100]	Notes - Subclassifications of assets, liabilities and equities .......................................................................	41
[800200]	Notes - Analysis of income and expense.......................................................................................................	45
[800500]	Notes - List of notes ..........................................................................................................................................	46
[800600]	Notes - List of accounting policies ..................................................................................................................	73
[813000]	Notes - Interim financial reporting ...................................................................................................................	84

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[105000] Management commentary

Management commentary [text block]

2019 was a challenging year. We dealt with adverse and uncertain socio -economic conditions across the region. We were able to deliver and create shared value for our customers, associates, shareholders, communities and suppliers.

This past year has been a year of transformation and investment. By executing against our strategic priorities and making the right investments, we are building a stronger and ev en more customer -centric business that is positioned for sustainable long -term value creation .

Highlights of 2019:

•Despite a challenging environment, our operational standards and clear value proposition have allowed us to continue to grow ahead of the ma rket.

•We are driving profitability improvements while transforming our company to position it for the future.

We remain confident that the investments we are making in our business are key to balance short and long - term results.

Disclosure of nature of business [text block]

Walmart de México y Centroamérica is a leading retail sector companies in the region.

As of December 31, 2019, it operated 3,407 units, throughout 6 countries (Costa Rica, Guatemala, Honduras, El Salvador, México, and Nicaragua), including self - service stores, membership clubs and omnichannel sales.

Walmart shares trade in the Mexican Stock Exchange since 1977; the ticker symbol is

W ALM EX .

2 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Disclosure of management's objectives and its strategies for meeting those

objectives [text block]

The objective of the Company is to double total sales in 10 years and to leverage operating expenses to reinvest in the business.

Sales growth will come from:

Same store sales
Sales from new stores
eCommerce

Disclosure of entity's most significant resources, risks and relationships [text block]

I . Changes in exchange rates. Exchange rate fluctuations tend to put upward pressure on inflation and reduce the population's purchasing power, which could ultimately adversely affect the Company's sales, in particular, due to the purchase of import of goods.

. Competition . The retail sector has become very competitive in recent years, which has led to the need for all the players in the market to constantly look for ways to set themselves apart from the competition. This puts the Company's market share at risk . Other factors affecting the Company's market share could be the business expansion of its competitors and th e possible entrance of new competitors into the market.

. Inflation . A significant increase in inflation rates could have a direct effect on the purchasing power of the Company's customers and the demand for its products and services, as well as employment a nd salaries.

IV. Changes in government regulations. The Company is exposed to the changes in different laws and regulations, which, after becoming effective, they could affect the Company's operating results, such as an impact on sales, expenses for payroll in direct taxes and changes in applicable rates. Currently, the level of scrutiny and discretion by the tax

3 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

authorities has greatly increased. Mexican legal courts have changed their position favoring those authorities ignoring violations of form and procedu re .

Disclosure of results of operations and prospects [text block]

Note: The percentages of sales growth related to Central America are determined on a constant currency basis.

During the fourth quarter, total revenue grew 4.7%: 5.3% in Mexico and 3.9% in Central America .

For the full year 2019, Mexico grew total revenue by 5.7% and Central America by 3.4%, which resulted in 4.9% consolidated revenue growth.

Same- store sales continue to be our main growth driver. For the full year, Mexico delivered an 11.1% two- year stack growth and Central America 2.5%.

PERFORMANCE BY REGION:

In Mexico, all regions and formats delivered a positive performance. The North and South regions had the highest same - store sales growth, followed by the Cente r and Metro regions, which delivered softer growth due to the competitive dynamics and macro conditions in those regions.

PERFORMANCE BY FORMAT:

Sam's has been the fastest growing format for the last 4 years, focused on improving the members experience. Du ring the quarter we had another edition of the "Socio Fest" event, where we offered our members high quality merchandise with great value, especially on Fresh items. During the event, we also reinforced our value proposition for Plus members by offering exclusive items and prices, which resulted on the sign - up of thousands of new members.

We have made progress in Walmart in terms of omnichannel . We have taken their leadership in seasonal events to the online world, and successfully executed events such as " El Fin Irresistible". We also leveraged our stores network to serve customers in a seamless way and expanded the on -demand service to about 60% of our stores, covering 59 cities. We will continue to deepen our digital relationship with our customers to str engthen their loyalty to Walmart even further.

At Superama, during the holiday season we were able to surprise our customers with special products and exhibitions, primarily focused on Fresh categories. We are also enabling our stores with technology, such as electronic pricing tags and self checkouts, to improve the shopping experience and productivity . Another example of progress in technology is the launch of the new Superama App, which improved conversion and overall customer satisfaction.

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

In Bodega, we are moving forward in terms of store expansion and omnichannel. In 4Q19, we opened 69 new stores and closed the year with 2,035 stores, reinforcing Bodega's position as the leading retailer in Mexico. We also stepped up our efforts in omnichannel, we open ed more than 300 kiosks during the year, taking our omnichannel offer to the most price sensitive families, with great results.

Among our formats, Bodega suffered the greatest impact from the change in disbursement of government support programs, especiall y in the Center and Metro regions. The team is focused on reinforcing even further our price positioning and on operating more efficiently to keep the productivity loop turning .

PERFORMANCE BY DIVISION:

The Food and Consumables division was our main growth driver, followed by General Merchandise and Apparel . As we have shared with you in past quarters, Apparel sales were impacted by operational difficulties that stemmed from the issues we experienced with the merchandise imports at the beginning of the year . This has taken us to accelerate the execution of markdowns in order to maintain healthy inventories and resume growth .

Our merchandising team is already capitalizing the benefits of the adoption of an end to end and more customer centric way of working . We managed to coordinate a Walmex exclusive omnichannel event called "El Fin Irresistible" which included one more day of sales, in record time. During the event, our customers found amazing merchandise at unbeatable prices across all our formats. We drove double-digit sales growth, despite a challenging base, and eCommerce represented 8% of sales during the event.

The team is also doing a great effort to improve even further our pricing position. During the year, we widened our price gap by 20 bps to suppo rt our most price sensitive customers in these challenging economic times.

PERFORMANCE VS. THE MARKET

During the quarter, we outpaced the self - service and clubs market measured by ANTAD by 50 bps.

For the full year, we surpassed ANTAD by 90 bps. This mark s five years growing faster than the competition, on every consecutive quarter. We have been able to capitalize on market situations and more importantly, to keep the share gains by winning our customers' loyalty with a consistent delivery of our value pro position.

CENTRAL AMERICA

In Central America, Nicaragua delivered the highest same - store sales growth, followed by Honduras, El Salvador and Guatemala . Sales performance in Costa Rica suffered the greatest impact from the unfavorable macroeconomic dynamics in the country.

During 2019, we expanded Coyol's distribution center in Costa Rica by more than 44,000 square meters. With this expansion, this distribution center became the largest one in Central America .

We are committed to continue investing in Centr al America, not just to reinforce our prices to better serve our customers, but also to enable key assets in the region to continue to win in the future.

OMNICHANNEL

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

The world is changing, customers are shopping in different ways and we want to be there fo r them and meet their demands.

We believe that in order to scale our omnichannel business and improve profitability, we need to leverage our strengths: our stores, our merchant DNA and our service culture. In line with this, we have been working to bring t he best of the online and offline worlds to better serve our customers.

We are offering same -day delivery of thousands of everyday needs and about 12,000 General Merchandise items through our on - demand service in over 256 Walmart and Superama stores.

We are expanding our reach to new customers through an extended catalogue, composed by a recently reinforced 1P operation plus a marketplace, where we have enrolled almost 1,300 sellers. Our customers can find this extended offering on our online platforms an d across the 894 kiosks operating in our Bodega and Walmart stores.

Our physical footprint is a key competitive advantage, and to benefit from it, we have now 1,115 pickup locations operating across our formats, where customers can pick up their Grocery and General Merchandise orders with no additional cost.

During the quarter, eCommerce sales grew 47% and GMV 53%. It represented 2.0% of Mexico sales and contributed 70 bps to total sales growth .

For the full year, eCommerce sales grew 52%, accelerating from the 40% growth achieved in 2018, and GMV grew 61%, driven by Grocery.

eCommerce now represents 1.5% of total Mexico sales and contributed 50 bps to total sales growth .

NEW STORES

During the quarter, we opened 81 new stores: 72 in Mexico and 9 in Central America, this compares to 57 stores opened in 4Q18.

We continue to invest in the region despite an uncertain environment. In the full year, we opened 161 stores, which represents the largest num ber of new store openings in more than 5 years.

In 2019, new stores contributed 1.7% to total growth, slightly below the guidance, as 50% of the new stores opened during the fourth quarter and sales contribution from store openings in Central America was lower, given the market situation we are facing.

LOGISTICS NETWORK REDESIGN

In 2019, we opened two new distribution centers dedicated to eCommerce in Guadalajara and Monterrey, and we expanded Coyol distribution center in Costa Rica .

Currently, three more distribution centers are under construction: one dedicated to eCommerce in Mexico City and two omnichannel DCs in Mérida and Chihuahua. We expect to open the three of them in the first half of 2020.

ESG

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

In October, we launched the Gigaton Project with the goal of avoiding the emission of 1 billion tons of greenhouse effect gases in our value chain by 2025. Our suppliers are key for the success of this initiative; all of them are invited to be part of this effort.

We also launched the second edition of " Recliclamanía", an event focused on creating a culture of recycling among our customers.

We are working to make trust a competitive advantage: building trust for low prices, with our associates and for the way we engage with the communities we serve. We be lieve leading on social and environmental issues is good for our business, for our shareholders, and for the countries in which we operate, and we will continue to focus on these issues going forward.

In summary, we are building the right foundations to be tter serve our customers and to strengthen our business.

FOURTH QUARTER AND 2019 RESULTS

In order to provide the investment community a better view of the underlying performance of our business, we are including a retroactive estimation of the effect the adoption of the IFRS 16 would have had on the 2018 financial results. These pro - forma 2018 figures are not audited, but are based on the 2018 audited reported results and adjusted with our best estimates to show the effects related to the adoption of the I FRS 16.

Note that all the references that I will do to last year's results are based on the 2018 pro - forma figures.

MEXICO:

Fourth Quarter Results:

We are facing a soft growth environment and more challenging competition; nevertheless, we have been able to generate savings and apply them to improve our price position and maintain healthy inventory levels, while outpacing the market and growing operating income faster than revenues.

During the fourth quarter, total revenues grew 5.3%.

We leveraged expenses by 60 bps to compensate a gross profit margin contraction of 30 bps, which stemmed from price investments and from additional markdowns to maintain healthy inventories in the Apparel division .

Operating income increased 8.1% and EBITDA margin expanded by 20 bps reaching 12.0%

					4Q18					4Q18
		4Q19						Var.						Var.

				IFRS 16 Pro-		Reported
(MX$ Millions)					forma


		$		%	$		%		%		$		%		%

Total revenue	153,658		100	145,886	100	5.3	145,886		100	5.3

Gross margin		34,333		22.3	32,952		22.6		4.2		32,952		22.6		4.2

General expenses	19,243		12.5	19,157	13.1	0.5	19,731		13.5	-2.5

Earnings before		15,090		9.8	13,795		9.5		9.4		13,221		9.1		14.1
other income, net

Other income, net	-7		0	153	0.1		(1.0x)	153		0.1		(1.0x)

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Wal-Mart de México, S.A.B. de C.V.									Consolidated

Ticker:	WALMEX							Quarter:	4D Year: 2019


	Operating income	15,083	9.8	13,948	9.6	8.1	13,374		9.2		12.8

	EBITDA		18,491	12	17,159	11.8	7.8	15,984	11	15.7

2019:

Mexico total revenues increased 5.7%.

During the year, SG&A grew 3.5%, 220 bps below total revenue growth, reflecting our productivity efforts and expense management.

Gross profit grew 5.3% and gross profit margin decreased by 10 bps to 22.6%.

As a result, operating income increased 8.3% and EBITDA 8.6%, resulting in an 11.4% EBITDA margin.

					2018					2018
		2019						Var.					Var.

				IFRS 16 Pro-		Reported
(MX$ Millions)					forma


		$		%	$		%		%		$	%		%

Total revenue	532,241		100	503,692	100	5.7	503,692		100	5.7

Gross margin		120,336		22.6	114,235		22.7		5.3		114,235	22.7		5.3

General expenses	73,153		13.7	70,665	14	3.5	72,465		14.4	0.9

Earnings before		47,183		8.9	43,570		8.7		8.3		41,770	8.3		13
other income, net

Other income, net	220		0	211	0	4	211		0	4

Operating income		47,403		8.9	43,781		8.7		8.3		41,981	8.3		12.9

EBITDA	60,581		11.4	55,790	11.1	8.6	51,662		10.3	17.3

CENTRAL AMERICA:

Note: The percentages of sales growth related to Central America are determined on a constant currency basis.

Fourth Quarter Results: Total revenues increased 3.9%.
Gross profit margin improved 10 bps, driven by more efficient negotiations with suppliers.

As we announced on the November sales release, we reached a new agreement between our subsidiaries in Central America and Walmart Inc., for the payment of intellectual property royalties. This agreement is effective beginning in 2019, but the charge was registered in November, affecting 4Q19 SG&A by $1.6 billion pesos.

Excluding this impact, we l everaged expenses by 30 bps, as a result of a very disciplined productivity agenda that we are implementing across the region, and EBITDA improved 100 bps, reaching 11.5%.

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Please remember that royalties will be recorded as expenses on a quarterly basis go ing forward.

						4Q18								4Q18
		4Q19			IFRS 16 Pro-		Var. (%)		Reported		Var. (%)



						forma

(MX$ Millions)
												On a							On a

		$		%		$		%		Peso			constant		$		%	Peso		constant
						terms			currency				terms			currency

													basis							basis
Total revenue	32,086		100	31,536		100	1.7		3.9	31,536		100	1.7		3.9


Gross margin		7,784		24.3		7,618		24.2		2.2			4.4		7,618		24.2	2.2		4.4

General expenses	6,746		21	5,163		16.4	30.7		33.5	5,328		16.9	26.6		29.3


Earnings before other		1,038		3.2		2,455		7.8		-57.7					2,290		7.3	-54.6
income, net								-56.8						-53.7


Other income, net	79		0.2	-46		-0.1		2.7x		2.7x	-46		-0.1		2.7x		2.7x


Operating income		1,117		3.5		2,409		7.6		-53.6			-52.6		2,244		7.1	-50.2		-49.2

EBITDA	2,100		6.5	3,311		10.5	-36.6		-35.2	2,980		9.4	-29.5		-28

2019:

In Central America, total revenues increased 3.4%.

Gross profit margin remained stable at 24.2%, as the team was able reinforce our price leadership without reducing profitability.

SG&A grew 10.8%, impacted by the new royalty charges.

Operating income represented 5.8% of sales and EBITDA margin was 9.1%.

						2018								2018
		2019			IFRS 16 Pro-		Var. (%)		Reported		Var. (%)



						forma

(MX$ Millions)
												On a							On a

		$		%		$		%		Peso			constant		$		%	Peso		constant
						terms			currency				terms			currency

													basis							basis
Total revenue	114,605		100	113,218		100	1.2		3.4	113,218		100	1.2		3.4


Gross margin		27,715		24.2		27,412		24.2		1.1			3.2		27,412		24.2	1.1		3.2

General expenses	21,274		18.6	19,611		17.3	8.5		10.8	20,193		17.8	5.4		7.6


Earnings before other		6,441		5.6		7,801		6.9		-17.4					7,219		6.4	-10.8
income, net								-15.7						-8.9


Other income, net	159		0.1	-10		0		16.8x		17.2 x	-10		0		16.8x		17.2x


Operating income		6,600		5.8		7,791		6.9		-15.3			-13.6		7,209		6.4	-8.4		-6.6

EBITDA	10,424		9.1	11,358		10	-8.2		-6.3	10,085		8.9	3.4		5.5

CONSOLIDATED:

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Fourth Quarter Results:

At a consolidated level, total revenues grew 4.7%.

Gross profit increased 3.8%, resulting in a 22.7% margin .

The net result was impacted by $1.1 billion pesos.

Adjusting for the impact of the payment of royalties on the 4Q19 we continued to build on our financial strategy.

We leveraged expenses by 60 bps and funded strategic investments in prices, salaries, logistics, ecommerce and new stores.

Operating income grew 8.7%, ahead of total revenues growth of 4.7%, and EBITD A increased 8.3%, reaching an 11.9% margin .

					4Q18					4Q18
		4Q19						Var.					Var.

				IFRS 16 Pro-		Reported
(MX$ Millions)					forma


		$		%	$		%		%		$	%		%

Total revenue	185,744		100	177,422	100	4.7	177,422		100	4.7

Gross margin		42,117		22.7	40,570		22.9		3.8		40,570	22.9		3.8

General expenses	25,989		14	24,320	13.7	6.9	25,059		14.1	3.7

Earnings before		16,128		8.7	16,250		9.2		-0.8		15,511	8.7		4
other income, net

Other income, net	72		0	107	0.1	-32.9	107		0.1	-32.9

Operating income		16,200		8.7	16,357		9.2		-1		15,618	8.8		3.7

EBITDA	20,591		11.1	20,470	11.5	0.6	18,964		10.7	8.6

Net Income		11,232		6	11,490		6.5		-2.3		11,762	6.6		-4.5

2019:

2019 results were solid .

In both regions, we made good progress on cost controls and we were able to maintain expense growth below total revenues growth . This allowed us to invest in prices to keep winning our customers' loyalty and to further improve our competitive position .

Consolidated revenues increased 4.9%.

SG&A increased 4.6%.

Gross profit margin decreased 10 bps to 22.9%.

As a result, operating income increased 4.7% and EBITDA margin expanded by 10 bps.

2018

Var.

2018

Var.

(MX$ Millions)

2019

IFRS 16 Pro-

Reported

10 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

							forma


		$			%		$		%		%	$	%	%

Total revenue	646,846		100	616,910		100	4.9	616,910		100	4.9

Gross margin		148,051			22.9		141,647		23		4.5	141,647	23	4.5

General expenses	94,427		14.6	90,276		14.6	4.6	92,658		15	1.9

Earnings before		53,624			8.3		51,371		8.3		4.4	48,989	7.9	9.5
other income, net

Other income, net	379		0.1	201		0	88.2	201		0	88.2

Operating income		54,003			8.3		51,572		8.4		4.7	49,190	8	9.8

EBITDA	71,005		11	67,148		10.9	5.7	61,747		10	15

Net Income		37,898			5.9		35,606		5.8		6.4	36,753	6	3.1

Financial position, liquidity and capital resources [text block]

Capital allocation is aligned with the long- term strategy .

During 2019, we made strategic investments to better position our business, while continuing to generate returns.

In line with the guidance we gave at the beginning of the year, we invested $ 20.6 million pesos, 14.7% more than in 2018.

40% of the investment was allocated to the remodeling and maintenance of existing stores, 28% to the opening of new stores, 20% to the logistics network redesign, 11% to technology and eCommerce and 1% to Fresh upstreaming projects.

In addition, we are reducing our base expenses by implementing technology to operate more efficiently and becoming more productive in our remodels and new stores investments, thereby freeing capital to build strong foundations.

Our financial strength gives us the ability to del iver short -term results while we build structural competitive advantages to position the business for the long - term.

We closed the year with a cash position of $30.9 billion pesos, 20.5% less than last year, given that the dividend paid in 2019 was 41% lar ger than the one paid in 2018.

Inventories increased 6.6%, primarily impacted by the opening of 81 new stores in the quarter, 24 new store more than in 4Q18.

Cash generation increased 5.4%, ahead of total revenues growth, reaching $63.7 billion.

11 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

After investing $20.6 billion pesos in higher return projects, we returned $36.0 billion pesos to our shareholders in the form of dividends.

We are committed to delivering consistent returns to shareholders, while investing for the future.

Today, the Walmex Board of Directors agreed to recommend a proposal to shareholders for an ordinary dividend of $0.87 pesos per share and an extraordinary dividend of $0.92 pesos per share; total dividends add up to $1.79 pesos per share.

We expect the Annual Shareholders Meeting to be held on March 24, 2020 to vote on the proposal.

The proposed schedule for dividend payment is as follows:

Ordinary dividends will be paid in three installments: the first one of $0.27 pesos per share in June, and the second and third ones of $0.30 p esos per share in November and December 2020.

Extraordinary dividend will be paid on two installments: the first one of $0.45 pesos per share on November 2020, and the second one of $0.47 pesos per share on December 2020.

Internal control [text block]

For the Company, having the highest regulation standards and the proper control environment is fundamental to meeting its objectives.

The existing internal controls are oriented towards guaranteeing safeguarding of assets, compliance with established policies, accurate recording of operations, reliable and timely financial data, prevention, identification and detection of fraud, as well as the fullfilment of laws and regulations.

We have an area devoted to Ethics and Regulatory Compliance, which is in charge of disseminating and promoting our policies on ethical behavior, corporate governance and strict compliance with any and all legal provisions to which we are subject to.

12 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Disclosure of critical performance measures and indicators that management uses to

evaluate entity's performance against stated objectives [text block]

Total sales
Same store sales
Gross margin
Expenses
Operating income
EBITDA
Cash generation
ROI
Inventory
Financing

13 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[110000] General information about financial statements

Ticker:	WALMEX

Period covered by financial statements:	2019-01-01 al 2019-12-31

Date of end of reporting period:	2019-12-31

Name of reporting entity or other means of identification:

Wal-Mart de México, S.A.B. de C.V.

Description of presentation currency:	MXN

Level of rounding used in financial statements:	THOUSANDS PESOS

Consolidated:	Yes

Number of quarter:	4D

Type of issuer:	ICS

Explanation of change in name of reporting entity or
other means of identification from end of preceding
reporting period:

Description of nature of financial statements:

Disclosure of general information about financial statements [text block]

The accompanying consolidated financial statements have been prepared in conformity with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and the interpretations issued by the International Financial Reporting Interpretation Committee (IFRIC), including those issued previously by the former Standard Interpretations Committee (SIC).

Name service provider external audit [text block]

Mancera, S.C. a member practice of Ernst & Young Global Limited .

14 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Name of the partner signing opinion [text block]

C .P.C . Carlos Carrillo Contreras

Type of opinion on the financial statements [text block]

Unmodified (without exception)

Date of opinion on the financial statements [text block]

February 13, 2020

Date assembly in which the financial statements were approved [text block]

The consolidated financial statements and accompanying notes for the years ended December 31, 2019 and 2018 were approved by the Company´s management and Board of Directors on February 13, 2020 and are subject to approval by the Shareholders meeting. Subsequent events are considered through this date.

The Shareholders´meeting will be held on March 24, 2020.

15 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Follow-up of analysis [text block]

Actinver - José Cebeira

Bank of America Merrill Lynch - Robert Ford

Banorte - IXE - Valentín Mendoza

Barclays Capital - Benjamin M. Theurer

BBVA Bancomer - Miguel Ulloa

BTG Pactual - Álvaro García

Bradesco - Richard Catchard

Citi - Sergio Matsumoto

Credit Suisse - Antonio González

GBM - Luis Willard

Goldman Sachs - Irma Sgarz

HSBC - Ravi Jain

Intercam - Alejandra Marcos

Itaú BBA - Joaquin Ley

J.P. Morgan - Joseph Giordano

Morgan Stanley - Andrew Ruben

Punto Casa de Bolsa - Cristina Morales

Santander - Martha Shelton

Scotiabank - Rodrigo Echagaray

UBS - Gustavo Piras Oliveira

Vector Casa de Bolsa - Marcela Muñoz

16 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[210000] Statement of financial position, current/non-current

Concept			Close Current	Close Previous

			Quarter	Exercise
			2019-12-31	2018-12-31
Statement of financial position [abstract]
Assets [abstract]
Current assets [abstract]
Cash and cash equivalents	30,857,090,000		38,829,598,000

Trade and other current receivables	12,374,923,000		11,072,512,000

Current tax assets, current	1,342,039,000		962,517,000
Other current financial assets	0	0

Current inventories	67,553,214,000		63,344,265,000

Current biological assets	0	0
Other current non-financial assets	1,777,900,000		1,405,924,000

Total current assets other than non-current assets or disposal groups classified as held for sale or as held for	113,905,166,000		115,614,816,000
distribution to owners
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners	0	0

Total current assets	113,905,166,000		115,614,816,000

Non-current assets [abstract]
Trade and other non-current receivables	0	0

Current tax assets, non-current	580,217,000		668,974,000

Non-current inventories	0	0
Non-current biological assets	0	0

Other non-current financial assets	1,255,822,000		1,557,703,000

Investments accounted for using equity method	0	0
Investments in subsidiaries, joint ventures and associates	0	0

Property, plant and equipment	132,119,505,000		126,643,278,000
Investment property	6,644,218,000		4,853,970,000
Right-of-use assets that do not meet definition of investment property	49,675,185,000		12,724,731,000

Goodwill	35,145,361,000		34,989,210,000
Intangible assets other than goodwill	1,938,229,000		2,008,529,000

Deferred tax assets	7,908,566,000		7,467,622,000

Other non-currentnon-financial assets	0	0
Total non-current assets	235,267,103,000		190,914,017,000
Total assets	349,172,269,000		306,528,833,000

Equity and liabilities [abstract]
Liabilities [abstract]
Current liabilities [abstract]
Trade and other current payables	106,101,567,000		110,861,691,000
Current tax liabilities, current	2,221,427,000		1,269,116,000

Other current financial liabilities	0	26,791,000

Current lease liabilities	3,044,328,000		308,352,000
Other current non-financial liabilities	0	0

Current provisions [abstract]
Current provisions for employee benefits	0	0
Other current provisions	2,131,626,000		1,699,542,000

Total current provisions	2,131,626,000		1,699,542,000

Total current liabilities other than liabilities included in disposal groups classified as held for sale	113,498,948,000		114,165,492,000
Liabilities included in disposal groups classified as held for sale	0	0

Total current liabilities	113,498,948,000		114,165,492,000

Non-current liabilities [abstract]
Trade and other non-current payables	4,522,312,000		4,881,202,000

Current tax liabilities, non-current	0	0

17 of 84

Wal-Mart de México, S.A.B. de C.V.				Consolidated

Ticker:	WALMEX	Quarter:	4D	Year: 2019


Concept		Close Current			Close Previous
		Quarter			Exercise
		2019-12-31			2018-12-31
Other non-current financial liabilities		0		962,218,000
Non-current lease liabilities	54,168,291,000		14,167,265,000

Other non-currentnon-financial liabilities	8,097,000		8,623,000

Non-current provisions [abstract]
Non-current provisions for employee benefits	2,088,286,000		1,643,027,000

Other non-current provisions		0		0

Total non-current provisions	2,088,286,000		1,643,027,000
Deferred tax liabilities	6,741,568,000		5,786,932,000

Total non-current liabilities	67,528,554,000		27,449,267,000

Total liabilities		181,027,502,000		141,614,759,000
Equity [abstract]
Issued capital		45,468,428,000		45,468,428,000

Share premium		(1,324,626,000)		(1,111,487,000)
Treasury shares		0		0

Retained earnings	108,860,208,000		104,638,687,000

Other reserves		15,140,757,000		15,918,446,000
Total equity attributable to owners of parent	168,144,767,000		164,914,074,000

Non-controlling interests		0		0
Total equity		168,144,767,000		164,914,074,000

Total equity and liabilities	349,172,269,000		306,528,833,000

18 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[310000] Statement of comprehensive income, profit or loss, by function of expense

Concept			Accumulated		Accumulated	Quarter Current	Quarter Previous

			Current Year		Previous Year	Year	Year
			2019-01-01 - 2019-		2018-01-01 - 2018-	2019-10-01 - 2019-	2018-10-01 - 2018-
			12-31		12-31	12-31	12-31
Profit or loss [abstract]
Profit (loss) [abstract]
Revenue	646,846,434,000		616,910,332,000	185,743,639,000	177,421,564,000

Cost of sales	498,795,631,000		475,263,047,000	143,626,999,000	136,852,140,000
Gross profit	148,050,803,000		141,647,285,000	42,116,640,000	40,569,424,000

Distribution costs	0	0	0	0

Administrative expenses	94,426,416,000		92,658,463,000	25,988,698,000	25,058,470,000
Other income	1,113,372,000		891,793,000	296,219,000	295,294,000

Other expense	735,073,000		690,827,000	224,567,000	188,529,000

Profit (loss) from operating activities	54,002,686,000		49,189,788,000	16,199,594,000	15,617,719,000
Finance income	2,260,056,000		2,329,577,000	664,531,000	624,678,000

Finance costs	7,060,623,000		2,659,629,000	2,055,308,000	750,562,000

Share of profit (loss) of associates and joint ventures accounted for	0	0	0	0
using equity method

Profit (loss) before tax	49,202,119,000		48,859,736,000	14,808,817,000	15,491,835,000
Tax income (expense)	11,304,347,000		12,107,123,000	3,577,223,000	3,730,005,000

Profit (loss) from continuing operations	37,897,772,000		36,752,613,000	11,231,594,000	11,761,830,000

Profit (loss) from discontinued operations	0	0	0	0
Profit (loss)	37,897,772,000		36,752,613,000	11,231,594,000	11,761,830,000

Profit (loss), attributable to [abstract]
Profit (loss), attributable to owners of parent	37,897,772,000		36,752,613,000	11,231,594,000	11,761,830,000
Profit (loss), attributable to non-controlling interests	0	0	0	0

Earnings per share [text block]

Earnings per share [abstract]
Earnings per share [line items]
Basic earnings per share [abstract]
Basic earnings (loss) per share from continuing operations	2.17		2.11	0.64	0.67
Basic earnings (loss) per share from discontinued operations	0	0	0	0
Total basic earnings (loss) per share	2.17		2.11	0.64	0.67

Diluted earnings per share [abstract]
Diluted earnings (loss) per share from continuing operations	2.17		2.11	0.64	0.67
Diluted earnings (loss) per share from discontinued operations	0	0	0	0

Total diluted earnings (loss) per share	2.17		2.11	0.64	0.67

19 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[410000] Statement of comprehensive income, OCI components presented net of tax

Concept			Accumulated		Accumulated	Quarter Current	Quarter Previous

			Current Year		Previous Year	Year	Year
			2019-01-01 - 2019-		2018-01-01 - 2018-	2019-10-01 - 2019-	2018-10-01 - 2018-
			12-31		12-31	12-31	12-31
Statement of comprehensive income [abstract]
Profit (loss)	37,897,772,000		36,752,613,000	11,231,594,000	11,761,830,000

Other comprehensive income [abstract]
Components of other comprehensive income that will not be
reclassified to profit or loss, net of tax [abstract]
Other comprehensive income, net of tax, gains (losses) from	0	0	0	0
investments in equity instruments
Other comprehensive income, net of tax, gains (losses) on	0	0	0	0
revaluation

Other comprehensive income, net of tax, gains (losses) on	(496,214,000)		39,412,000	(496,214,000)	39,412,000
remeasurements of defined benefit plans

Other comprehensive income, net of tax, change in fair value of	0	0	0	0
financial liability attributable to change in credit risk of liability
Other comprehensive income, net of tax, gains (losses) on hedging	0	0	0	0
instruments that hedge investments in equity instruments
Share of other comprehensive income of associates and joint	0	0	0	0
ventures accounted for using equity method that will not be
reclassified to profit or loss, net of tax
Total other comprehensive income that will not be reclassified to	(496,214,000)		39,412,000	(496,214,000)	39,412,000
profit or loss, net of tax

Components of other comprehensive income that will be
reclassified to profit or loss, net of tax [abstract]
Exchange differences on translation [abstract]
Gains (losses) on exchange differences on translation, net of tax	(281,475,000)		(4,132,164,000)	(2,132,202,000)	178,920,000
Reclassification adjustments on exchange differences on	0	0	0	0
translation, net of tax

Other comprehensive income, net of tax, exchange differences on	(281,475,000)		(4,132,164,000)	(2,132,202,000)	178,920,000
translation

Available-for-sale financial assets [abstract]
Gains (losses) on remeasuring available-for-sale financial assets,	0	0	0	0
net of tax

Reclassification adjustments on available-for-sale financial assets,	0	0	0	0
net of tax
Other comprehensive income, net of tax, available-for-sale financial	0	0	0	0
assets

Cash flow hedges [abstract]
Gains (losses) on cash flow hedges, net of tax	0	0	0	0

Reclassification adjustments on cash flow hedges, net of tax	0	0	0	0

Amounts removed from equity and included in carrying amount of	0	0	0	0
non-financial asset (liability) whose acquisition or incurrence was
hedged highly probable forecast transaction, net of tax

Other comprehensive income, net of tax, cash flow hedges	0	0	0	0
Hedges of net investment in foreign operations [abstract]
Gains (losses) on hedges of net investments in foreign operations,	0	0	0	0
net of tax

Reclassification adjustments on hedges of net investments in	0	0	0	0
foreign operations, net of tax
Other comprehensive income, net of tax, hedges of net investments	0	0	0	0
in foreign operations

Change in value of time value of options [abstract]
Gains (losses) on change in value of time value of options, net of	0	0	0	0
tax

20 of 84

Wal-Mart de México, S.A.B. de C.V.						Consolidated

Ticker:	WALMEX			Quarter:	4D	Year: 2019


Concept		Accumulated	Accumulated	Quarter Current			Quarter Previous
		Current Year	Previous Year	Year			Year
		2019-01-01 - 2019-	2018-01-01 - 2018-	2019-10-01 - 2019-			2018-10-01 - 2018-
		12-31	12-31	12-31			12-31
Reclassification adjustments on change in value of time value of	0	0		0		0
options, net of tax

Other comprehensive income, net of tax, change in value of time	0	0		0		0
value of options

Change in value of forward elements of forward contracts
[abstract]
Gains (losses) on change in value of forward elements of forward	0	0		0		0
contracts, net of tax

Reclassification adjustments on change in value of forward	0	0		0		0
elements of forward contracts, net of tax

Other comprehensive income, net of tax, change in value of forward	0	0		0		0
elements of forward contracts
Change in value of foreign currency basis spreads [abstract]
Gains (losses) on change in value of foreign currency basis	0	0		0		0
spreads, net of tax
Reclassification adjustments on change in value of foreign currency	0	0		0		0
basis spreads, net of tax
Other comprehensive income, net of tax, change in value of foreign	0	0		0		0
currency basis spreads

Financial assets measured at fair value through other
comprehensive income [abstract]
Gains (losses) on financial assets measured at fair value through	0	0		0		0
other comprehensive income, net of tax

Reclassification adjustments on financial assets measured at fair	0	0		0		0
value through other comprehensive income, net of tax

Amounts removed from equity and adjusted against fair value of	0	0		0		0
financial assets on reclassification out of fair value through other
comprehensive income measurement category, net of tax

Other comprehensive income, net of tax, financial assets measured	0	0		0		0
at fair value through other comprehensive income

Share of other comprehensive income of associates and joint	0	0		0		0
ventures accounted for using equity method that will be reclassified
to profit or loss, net of tax

Total other comprehensive income that will be reclassified to profit	(281,475,000)	(4,132,164,000)	(2,132,202,000)		178,920,000
or loss, net of tax
Total other comprehensive income	(777,689,000)	(4,092,752,000)	(2,628,416,000)		218,332,000

Total comprehensive income	37,120,083,000	32,659,861,000	8,603,178,000		11,980,162,000

Comprehensive income attributable to [abstract]
Comprehensive income, attributable to owners of parent	37,120,083,000	32,659,861,000	8,603,178,000		11,980,162,000

Comprehensive income, attributable to non-controlling interests	0	0		0		0

21 of 84

Wal-Mart de México, S.A.B. de C.V.				Consolidated

Ticker:	WALMEX	Quarter:	4D	Year: 2019

[520000] Statement of cash flows, indirect method

Concept		Accumulated			Accumulated
		Current Year			Previous Year
		2019-01-01 - 2019-			2018-01-01 - 2018-
		12-31			12-31
Statement of cash flows [abstract]
Cash flows from (used in) operating activities [abstract]
Profit (loss)		37,897,772,000		36,752,613,000

Adjustments to reconcile profit (loss) [abstract]
+ Discontinued operations		0		0
+ Adjustments for income tax expense	11,304,347,000		12,107,123,000

+ (-) Adjustments for finance costs	4,991,284,000		285,115,000

+ Adjustments for depreciation and amortisation expense	17,002,507,000		12,557,588,000
+ Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss	(29,034,000)		103,898,000

+ Adjustments for provisions		0		0

+ (-) Adjustments for unrealised foreign exchange losses (gains)		0		0
+ Adjustments for share-based payments	330,777,000		307,379,000

+ (-) Adjustments for fair value losses (gains)		0		0

- Adjustments for undistributed profits of associates		0		0
+ (-) Adjustments for losses (gains) on disposal of non-current assets	155,811,000		(2,668,000)

			0		0

+ (-) Adjustments for decrease (increase) in inventories	(4,385,071,000)		(4,476,889,000)
+ (-) Adjustments for decrease (increase) in trade accounts receivable	(2,074,361,000)		(641,255,000)

+ (-) Adjustments for decrease (increase) in other operating receivables	(131,814,000)		(502,572,000)

+ (-) Adjustments for increase (decrease) in trade accounts payable	2,153,058,000		6,107,659,000
+ (-) Adjustments for increase (decrease) in other operating payables	(1,137,861,000)		262,081,000

+ Other adjustments for non-cash items		0		0
+ Other adjustments for which cash effects are investing or financing cash flow		0		0
+ Straight-line rent adjustment		0		0

+ Amortization of lease fees		0		0
+ Setting property values		0		0

+ (-) Other adjustments to reconcile profit (loss)		0		0

+ (-) Total adjustments to reconcile profit (loss)	28,179,643,000		26,107,459,000
Net cash flows from (used in) operations	66,077,415,000		62,860,072,000
- Dividends paid		0		0

			0		0
- Interest paid			0		0

+ Interest received		0		0

+ (-) Income taxes refund (paid)	9,450,296,000		15,325,302,000
+ (-) Other inflows (outflows) of cash		0		0

Net cash flows from (used in) operating activities	56,627,119,000		47,534,770,000

Cash flows from (used in) investing activities [abstract]
+ Cash flows from losing control of subsidiaries or other businesses		0		0

- Cash flows used in obtaining control of subsidiaries or other businesses		0		0

+ Other cash receipts from sales of equity or debt instruments of other entities		0		0
- Other cash payments to acquire equity or debt instruments of other entities		0		0

+ Other cash receipts from sales of interests in joint ventures		0		0

- Other cash payments to acquire interests in joint ventures		0		0
+ Proceeds from sales of property, plant and equipment	218,959,000		255,904,000

- Purchase of property, plant and equipment	20,574,830,000		17,932,578,000

+ Proceeds from sales of intangible assets		0		0
- Purchase of intangible assets		0		0

+ Proceeds from sales of other long-term assets		0		0

- Purchase of other long-term assets		0		0

22 of 84

Wal-Mart de México, S.A.B. de C.V.				Consolidated

Ticker:	WALMEX	Quarter:	4D	Year: 2019


Concept		Accumulated			Accumulated
		Current Year			Previous Year
		2019-01-01 - 2019-			2018-01-01 - 2018-
		12-31			12-31
+ Proceeds from government grants		0		0

- Cash advances and loans made to other parties		0		0

+ Cash receipts from repayment of advances and loans made to other parties		0		0
- Cash payments for futures contracts, forward contracts, option contracts and swap contracts		0		0

+ Cash receipts from futures contracts, forward contracts, option contracts and swap contracts		0		0

+ Dividends received		0		0
- Interest paid			0		0

+ Interest received	1,218,688,000		1,268,122,000

			0		0
+ (-) Other inflows (outflows) of cash	(543,916,000)		940,518,000

Net cash flows from (used in) investing activities	(19,681,099,000)		(15,468,034,000)

Cash flows from (used in) financing activities [abstract]
+ Proceeds from changes in ownership interests in subsidiaries that do not result in loss of control		0		0

- Payments from changes in ownership interests in subsidiaries that do not result in loss of control		0		0

+ Proceeds from issuing shares		0		0
+ Proceeds from issuing other equity instruments		0		0

- Payments to acquire or redeem entity's shares		0		0
- Payments of other equity instruments		0		0

+ Proceeds from borrowings		0		0

- Repayments of borrowings		0		0
- Payments of finance lease liabilities		0		1,557,334,000

- Payments of lease liabilities	8,076,297,000		0

+ Proceeds from government grants		0		0
- Dividends paid	35,957,290,000		25,581,976,000

- Interest paid			0		0

+ (-) Income taxes refund (paid)		0		0
+ (-) Other inflows (outflows) of cash		0		0

Net cash flows from (used in) financing activities	(44,033,587,000)		(27,139,310,000)

Net increase (decrease) in cash and cash equivalents before effect of exchange rate changes	(7,087,567,000)		4,927,426,000
Effect of exchange rate changes on cash and cash equivalents [abstract]
Effect of exchange rate changes on cash and cash equivalents	(884,941,000)		(1,693,945,000)

Net increase (decrease) in cash and cash equivalents	(7,972,508,000)		3,233,481,000
Cash and cash equivalents at beginning of period	38,829,598,000		35,596,117,000

Cash and cash equivalents at end of period	30,857,090,000		38,829,598,000

23 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[610000] Statement of changes in equity - Accumulated Current

					Components of equity [axis]

Sheet 1 of 3	Issued capital [member]	Share premium	Treasury shares		Retained earnings	Revaluation surplus		Reserve of exchange	Reserve of cash flow	Reserve of gains and	Reserve of
		[member]	[member]		[member]	[member]		differences on	hedges [member]	losses on hedging	change in
								translation [member]		instruments that hedge	value of time
										investments in equity	value of
										instruments [member]	options
											[member]

Statement of changes in equity [line items]
Equity at beginning of period	45,468,428,000	(1,111,487,000)	0	104,638,687,000		0	16,294,999,000	0	0	0
Changes in equity [abstract]
Comprehensive income [abstract]
Profit (loss)	0	0	0	37,897,772,000		0	0	0	0	0

Other comprehensive income	0	0	0	0		0	(281,475,000)	0	0	0
Total comprehensive income	0	0	0	37,897,772,000		0	(281,475,000)	0	0	0
Issue of equity	0	0	0	0		0	0	0	0	0

Dividends recognised as distributions to owners	0	0	0	30,250,014,000		0	0	0	0	0
Increase through other contributions by owners, equity	0	0	0	0		0	0	0	0	0

Decrease through other distributions to owners, equity	0	0	0	0		0	0	0	0	0
Increase (decrease) through other changes, equity	0	0	0	(3,426,237,000)		0	0	0	0	0

Increase (decrease) through treasury share transactions, equity	0	0	0	0		0	0	0	0	0
Increase (decrease) through changes in ownership interests in subsidiaries that do not	0	0	0	0		0	0	0	0	0
result in loss of control, equity
Increase (decrease) through share-based payment transactions, equity	0	(213,139,000)	0	0		0	0	0	0	0
Amount removed from reserve of cash flow hedges and included in initial cost or other	0	0	0	0		0	0	0	0	0
carrying amount of non-financial asset (liability) or firm commitment for which fair value
hedge accounting is applied

Amount removed from reserve of change in value of time value of options and included in	0	0	0	0		0	0	0	0	0
initial cost or other carrying amount of non-financial asset (liability) or firm commitment for
which fair value hedge accounting is applied

Amount removed from reserve of change in value of forward elements of forward	0	0	0	0		0	0	0	0	0
contracts and included in initial cost or other carrying amount of non-financial asset
(liability) or firm commitment for which fair value hedge accounting is applied
Amount removed from reserve of change in value of foreign currency basis spreads and	0	0	0	0		0	0	0	0	0
included in initial cost or other carrying amount of non-financial asset (liability) or firm
commitment for which fair value hedge accounting is applied
Total increase (decrease) in equity	0	(213,139,000)	0	4,221,521,000		0	(281,475,000)	0	0	0

Equity at end of period	45,468,428,000	(1,324,626,000)	0	108,860,208,000		0	16,013,524,000	0	0	0

24 of 84

Wal-Mart de México, S.A.B. de C.V.											Consolidated

Ticker:	WALMEX								Quarter:	4D	Year:	2019


						Components of equity [axis]
	Sheet 2 of 3	Reserve of change in		Reserve of change in	Reserve of gains and	Reserve of gains and	Reserve of share-based	Reserve of	Amount recognised in	Reserve of gains and	Reserve of
		value of forward		value of foreign	losses on financial	losses on remeasuring	payments [member]	remeasurements of	other comprehensive	losses from			change in
		elements of forward		currency basis spreads	assets measured at fair	available-for-sale		defined benefit plans	income and	investments in equity	fair value of
		contracts [member]		[member]	value through other	financial assets		[member]	accumulated in equity	instruments [member]		financial
					comprehensive income	[member]			relating to non-current					liability
					[member]				assets or disposal				attributable
									groups held for sale				to change in
									[member]				credit risk of
														liability
														[member]

Statement of changes in equity [line items]
Equity at beginning of period		0	0	0	0	0	(376,553,000)	0			0		0
Changes in equity [abstract]
Comprehensive income [abstract]
Profit (loss)			0	0	0	0	0	0	0			0		0

Other comprehensive income		0	0	0	0	0	(496,214,000)	0			0		0
Total comprehensive income		0	0	0	0	0	(496,214,000)	0			0		0
Issue of equity			0	0	0	0	0	0	0			0		0

Dividends recognised as distributions to owners		0	0	0	0	0	0	0			0		0
Increase through other contributions by owners, equity		0	0	0	0	0	0	0			0		0
Decrease through other distributions to owners, equity		0	0	0	0	0	0	0			0		0
Increase (decrease) through other changes, equity		0	0	0	0	0	0	0			0		0
Increase (decrease) through treasury share transactions, equity		0	0	0	0	0	0	0			0		0

Increase (decrease) through changes in ownership interests in subsidiaries that do not		0	0	0	0	0	0	0			0		0
result in loss of control, equity

Increase (decrease) through share-based payment transactions, equity		0	0	0	0	0	0	0			0		0
Amount removed from reserve of cash flow hedges and included in initial cost or other		0	0	0	0	0	0	0			0		0
carrying amount of non-financial asset (liability) or firm commitment for which fair value
hedge accounting is applied

Amount removed from reserve of change in value of time value of options and included in		0	0	0	0	0	0	0			0		0
initial cost or other carrying amount of non-financial asset (liability) or firm commitment for
which fair value hedge accounting is applied

Amount removed from reserve of change in value of forward elements of forward		0	0	0	0	0	0	0			0		0
contracts and included in initial cost or other carrying amount of non-financial asset
(liability) or firm commitment for which fair value hedge accounting is applied
Amount removed from reserve of change in value of foreign currency basis spreads and		0	0	0	0	0	0	0			0		0
included in initial cost or other carrying amount of non-financial asset (liability) or firm
commitment for which fair value hedge accounting is applied
Total increase (decrease) in equity		0	0	0	0	0	(496,214,000)	0			0		0

Equity at end of period		0	0	0	0	0	(872,767,000)	0			0		0

25 of 84

Wal-Mart de México, S.A.B. de C.V.										Consolidated

Ticker:	WALMEX							Quarter:	4D	Year:	2019


					Components of equity [axis]
	Sheet 3 of 3	Reserve for catastrophe	Reserve for	Reserve of	Other comprehensive	Other reserves	Equity attributable to	Non-controlling		Equity [member]
		[member]	equalisation [member]	discretionary	income [member]	[member]	owners of parent	interests [member]
				participation features			[member]
				[member]

Statement of changes in equity [line items]
Equity at beginning of period	0	0	0	0	15,918,446,000	164,914,074,000	0			164,914,074,000

Changes in equity [abstract]
Comprehensive income [abstract]
Profit (loss)		0	0	0	0	0	37,897,772,000	0			37,897,772,000
Other comprehensive income	0	0	0	0	(777,689,000)	(777,689,000)	0			(777,689,000)

Total comprehensive income	0	0	0	0	(777,689,000)	37,120,083,000	0			37,120,083,000
Issue of equity		0	0	0	0	0	0	0				0
Dividends recognised as distributions to owners	0	0	0	0	0	30,250,014,000	0			30,250,014,000

Increase through other contributions by owners, equity	0	0	0	0	0	0	0				0
Decrease through other distributions to owners, equity	0	0	0	0	0	0	0				0

Increase (decrease) through other changes, equity	0	0	0	0	0	(3,426,237,000)	0			(3,426,237,000)
Increase (decrease) through treasury share transactions, equity	0	0	0	0	0	0	0				0
Increase (decrease) through changes in ownership interests in subsidiaries that do not	0	0	0	0	0	0	0				0
result in loss of control, equity
Increase (decrease) through share-based payment transactions, equity	0	0	0	0	0	(213,139,000)	0			(213,139,000)
Amount removed from reserve of cash flow hedges and included in initial cost or other	0	0	0	0	0	0	0				0
carrying amount of non-financial asset (liability) or firm commitment for which fair value
hedge accounting is applied

Amount removed from reserve of change in value of time value of options and included in	0	0	0	0	0	0	0				0
initial cost or other carrying amount of non-financial asset (liability) or firm commitment for
which fair value hedge accounting is applied
Amount removed from reserve of change in value of forward elements of forward	0	0	0	0	0	0	0				0
contracts and included in initial cost or other carrying amount of non-financial asset
(liability) or firm commitment for which fair value hedge accounting is applied

Amount removed from reserve of change in value of foreign currency basis spreads and	0	0	0	0	0	0	0				0
included in initial cost or other carrying amount of non-financial asset (liability) or firm
commitment for which fair value hedge accounting is applied

Total increase (decrease) in equity	0	0	0	0	(777,689,000)	3,230,693,000	0			3,230,693,000
Equity at end of period	0	0	0	0	15,140,757,000	168,144,767,000	0			168,144,767,000

26 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[610000] Statement of changes in equity - Accumulated Previous

					Components of equity [axis]

Sheet 1 of 3	Issued capital [member]	Share premium	Treasury shares		Retained earnings	Revaluation surplus		Reserve of exchange	Reserve of cash flow	Reserve of gains and	Reserve of
		[member]	[member]		[member]	[member]		differences on	hedges [member]	losses on hedging	change in
								translation [member]		instruments that hedge	value of time
										investments in equity	value of
										instruments [member]	options
											[member]

Statement of changes in equity [line items]
Equity at beginning of period	45,468,428,000	(2,359,384,000)	0	96,413,711,000		0	20,427,163,000	0	0	0
Changes in equity [abstract]
Comprehensive income [abstract]
Profit (loss)	0	0	0	36,752,613,000		0	0	0	0	0

Other comprehensive income	0	0	0	0		0	(4,132,164,000)	0	0	0
Total comprehensive income	0	0	0	36,752,613,000		0	(4,132,164,000)	0	0	0
Issue of equity	0	0	0	0		0	0	0	0	0

Dividends recognised as distributions to owners	0	0	0	28,527,637,000		0	0	0	0	0
Increase through other contributions by owners, equity	0	0	0	0		0	0	0	0	0

Decrease through other distributions to owners, equity	0	0	0	0		0	0	0	0	0
Increase (decrease) through other changes, equity	0	0	0	0		0	0	0	0	0

Increase (decrease) through treasury share transactions, equity	0	0	0	0		0	0	0	0	0
Increase (decrease) through changes in ownership interests in subsidiaries that do not	0	0	0	0		0	0	0	0	0
result in loss of control, equity
Increase (decrease) through share-based payment transactions, equity	0	1,247,897,000	0	0		0	0	0	0	0
Amount removed from reserve of cash flow hedges and included in initial cost or other	0	0	0	0		0	0	0	0	0
carrying amount of non-financial asset (liability) or firm commitment for which fair value
hedge accounting is applied

Amount removed from reserve of change in value of time value of options and included in	0	0	0	0		0	0	0	0	0
initial cost or other carrying amount of non-financial asset (liability) or firm commitment for
which fair value hedge accounting is applied

Amount removed from reserve of change in value of forward elements of forward	0	0	0	0		0	0	0	0	0
contracts and included in initial cost or other carrying amount of non-financial asset
(liability) or firm commitment for which fair value hedge accounting is applied
Amount removed from reserve of change in value of foreign currency basis spreads and	0	0	0	0		0	0	0	0	0
included in initial cost or other carrying amount of non-financial asset (liability) or firm
commitment for which fair value hedge accounting is applied
Total increase (decrease) in equity	0	1,247,897,000	0	8,224,976,000		0	(4,132,164,000)	0	0	0

Equity at end of period	45,468,428,000	(1,111,487,000)	0	104,638,687,000		0	16,294,999,000	0	0	0

27 of 84

Wal-Mart de México, S.A.B. de C.V.												Consolidated

Ticker:	WALMEX									Quarter:	4D	Year:	2019


							Components of equity [axis]
	Sheet 2 of 3	Reserve of change in		Reserve of change in		Reserve of gains and	Reserve of gains and	Reserve of share-based	Reserve of	Amount recognised in	Reserve of gains and	Reserve of
		value of forward		value of foreign		losses on financial	losses on remeasuring	payments [member]	remeasurements of	other comprehensive	losses from			change in
		elements of forward		currency basis spreads	assets measured at fair	available-for-sale		defined benefit plans	income and	investments in equity	fair value of
		contracts [member]		[member]		value through other	financial assets		[member]	accumulated in equity	instruments [member]		financial
						comprehensive income	[member]			relating to non-current					liability
						[member]				assets or disposal				attributable
										groups held for sale				to change in
										[member]				credit risk of
															liability
															[member]

Statement of changes in equity [line items]
Equity at beginning of period		0		0	0	0	0	(415,965,000)	0			0		0
Changes in equity [abstract]
Comprehensive income [abstract]
Profit (loss)			0		0		0	0	0	0			0		0

Other comprehensive income		0		0		0	0	39,412,000	0			0		0
Total comprehensive income		0		0		0	0	39,412,000	0			0		0
Issue of equity			0		0		0	0	0	0			0		0

Dividends recognised as distributions to owners		0		0		0	0	0	0			0		0
Increase through other contributions by owners, equity		0		0		0	0	0	0			0		0
Decrease through other distributions to owners, equity		0		0		0	0	0	0			0		0
Increase (decrease) through other changes, equity		0		0		0	0	0	0			0		0
Increase (decrease) through treasury share transactions, equity		0		0		0	0	0	0			0		0

Increase (decrease) through changes in ownership interests in subsidiaries that do not		0		0		0	0	0	0			0		0
result in loss of control, equity

Increase (decrease) through share-based payment transactions, equity		0		0		0	0	0	0			0		0
Amount removed from reserve of cash flow hedges and included in initial cost or other		0		0		0	0	0	0			0		0
carrying amount of non-financial asset (liability) or firm commitment for which fair value
hedge accounting is applied

Amount removed from reserve of change in value of time value of options and included in		0		0		0	0	0	0			0		0
initial cost or other carrying amount of non-financial asset (liability) or firm commitment for
which fair value hedge accounting is applied

Amount removed from reserve of change in value of forward elements of forward		0		0		0	0	0	0			0		0
contracts and included in initial cost or other carrying amount of non-financial asset
(liability) or firm commitment for which fair value hedge accounting is applied
Amount removed from reserve of change in value of foreign currency basis spreads and		0		0		0	0	0	0			0		0
included in initial cost or other carrying amount of non-financial asset (liability) or firm
commitment for which fair value hedge accounting is applied
Total increase (decrease) in equity		0		0		0	0	39,412,000	0			0		0

Equity at end of period		0		0	0	0	0	(376,553,000)	0			0		0

28 of 84

Wal-Mart de México, S.A.B. de C.V.										Consolidated

Ticker:	WALMEX							Quarter:	4D	Year:	2019


					Components of equity [axis]
	Sheet 3 of 3	Reserve for catastrophe	Reserve for	Reserve of	Other comprehensive	Other reserves	Equity attributable to	Non-controlling		Equity [member]
		[member]	equalisation [member]	discretionary	income [member]	[member]	owners of parent	interests [member]
				participation features			[member]
				[member]

Statement of changes in equity [line items]
Equity at beginning of period	0	0	0	0	20,011,198,000	159,533,953,000	0			159,533,953,000

Changes in equity [abstract]
Comprehensive income [abstract]
Profit (loss)		0	0	0	0	0	36,752,613,000	0			36,752,613,000
Other comprehensive income	0	0	0	0	(4,092,752,000)	(4,092,752,000)	0			(4,092,752,000)

Total comprehensive income	0	0	0	0	(4,092,752,000)	32,659,861,000	0			32,659,861,000
Issue of equity		0	0	0	0	0	0	0				0
Dividends recognised as distributions to owners	0	0	0	0	0	28,527,637,000	0			28,527,637,000

Increase through other contributions by owners, equity	0	0	0	0	0	0	0				0
Decrease through other distributions to owners, equity	0	0	0	0	0	0	0				0

Increase (decrease) through other changes, equity	0	0	0	0	0	0	0				0
Increase (decrease) through treasury share transactions, equity	0	0	0	0	0	0	0				0
Increase (decrease) through changes in ownership interests in subsidiaries that do not	0	0	0	0	0	0	0				0
result in loss of control, equity
Increase (decrease) through share-based payment transactions, equity	0	0	0	0	0	1,247,897,000	0			1,247,897,000
Amount removed from reserve of cash flow hedges and included in initial cost or other	0	0	0	0	0	0	0				0
carrying amount of non-financial asset (liability) or firm commitment for which fair value
hedge accounting is applied

Amount removed from reserve of change in value of time value of options and included in	0	0	0	0	0	0	0				0
initial cost or other carrying amount of non-financial asset (liability) or firm commitment for
which fair value hedge accounting is applied
Amount removed from reserve of change in value of forward elements of forward	0	0	0	0	0	0	0				0
contracts and included in initial cost or other carrying amount of non-financial asset
(liability) or firm commitment for which fair value hedge accounting is applied

Amount removed from reserve of change in value of foreign currency basis spreads and	0	0	0	0	0	0	0				0
included in initial cost or other carrying amount of non-financial asset (liability) or firm
commitment for which fair value hedge accounting is applied

Total increase (decrease) in equity	0	0	0	0	(4,092,752,000)	5,380,121,000	0			5,380,121,000
Equity at end of period	0	0	0	0	15,918,446,000	164,914,074,000	0			164,914,074,000

29 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[700000] Informative data about the Statement of financial position

Concept			Close Current	Close Previous

			Quarter	Exercise
			2019-12-31	2018-12-31
Informative data of the Statement of Financial Position [abstract]
Capital stock (nominal)	42,526,627,000		42,526,627,000

Restatement of capital stock	2,941,801,000		2,941,801,000
Plan assets for pensions and seniority premiums	929,670,000		819,595,000

Number of executives	213		205

Number of employees	238,759		234,226
Number of workers	0	0

Outstanding shares	17,461,402,631		17,461,402,631

Repurchased shares	0	0
Restricted cash	0	0

Guaranteed debt of associated companies	0	0

30 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[700002] Informative data about the Income statement

Concept		Accumulated		Accumulated	Quarter Current	Quarter Previous

		Current Year		Previous Year	Year	Year
		2019-01-01 - 2019-		2018-01-01 - 2018-	2019-10-01 - 2019-	2018-10-01 - 2018-
		12-31		12-31	12-31	12-31
Informative data of the Income Statement [abstract]
Operating depreciation and amortization	17,002,507,000	12,557,588,000	4,391,628,000	3,346,352,000

31 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[700003] Informative data - Income statement for 12 months

Concept		Current Year	Previous Year

		2019-01-01 - 2019-	2018-01-01 - 2018-
		12-31	12-31
Informative data - Income Statement for 12 months [abstract]
Revenue	646,846,434,000	616,910,332,000

Profit (loss) from operating activities	54,002,686,000	49,189,788,000
Profit (loss)	37,897,772,000	36,752,613,000

Profit (loss), attributable to owners of parent	37,897,772,000	36,752,613,000

Operating depreciation and amortization	17,002,507,000	12,557,588,000

32 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[800001] Breakdown of credits

Institution [axis]		Foreign institution		Contract signing		Expiration		Interest										Denomination [axis]
		(yes/no)		date		date		rate						Domestic currency [member]							Foreign currency [member]

														Time interval [axis]							Time interval [axis]
											Current year	Until 1 year		Until 2 years	Until 3 years	Until 4 years		Until 5 years or more	Current year	Until 1 year		Until 2 years	Until 3 years	Until 4 years	Until 5 years or more
											[member]	[member]		[member]	[member]	[member]		[member]	[member]	[member]		[member]	[member]	[member]	[member]
Banks [abstract]
Foreign trade
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Banks - secured
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Commercial banks
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Other banks
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Total banks
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Stock market [abstract]
Listed on stock exchange - unsecured
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Listed on stock exchange - secured
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Private placements - unsecured
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Private placements - secured
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Total listed on stock exchanges and private
placements
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Other current and non-current liabilities
with cost [abstract]
Other current and non-current liabilities
with cost
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Total other current and non-current
liabilities with cost
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Suppliers [abstract]
Suppliers
SELF SERVICE SUPPLIER B1	NO	2020-02-12	2020-02-12		68,424,658,000
SELF SERVICE SUPPLIER B2	SI	2020-02-12	2020-02-12												18,691,165,000	0
TOTAL							68,424,658,000	0	0	0	0	0	18,691,165,000	0	0	0	0	0
Total suppliers
TOTAL								68,424,658,000	0	0	0	0	0	18,691,165,000	0	0	0	0	0
Other current and non-current liabilities
[abstract]
Other current and non-current liabilities
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0
Total other current and non-current
liabilities
TOTAL								0	0	0	0	0	0	0	0	0	0	0	0

33 of 84

Wal-Mart de México, S.A.B. de C.V.

Consolidated

Ticker:

WALMEX

Quarter: 4D

Year: 2019

Institution [axis]

Foreign institution

Contract signing

Expiration

Interest

Denomination [axis]

(yes/no)

date

rate

Domestic currency [member]

Foreign currency [member]

Time interval [axis]

Current year

Until 1 year

Until 2 years

Until 3 years

Until 4 years

Until 5 years or more

Current year

Until 1 year

Until 2 years

Until 3 years

Until 4 years

Until 5 years or more

[member]

Total credits

TOTAL

68,424,658,000

18,691,165,000

34 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[800003] Annex - Monetary foreign currency position

				Currencies [axis]

	Dollars [member]	Dollar equivalent in		Other currencies	Other currencies	Total pesos
		pesos [member]		equivalent in dollars	equivalent in pesos	[member]
				[member]	[member]
Foreign currency position [abstract]
Monetary assets [abstract]
Current monetary assets	148,286,000	2,830,641,000	490,772,000	9,664,112,000	12,494,753,000

Non-current monetary assets	0	0	0	0	0
Total monetary assets	148,286,000	2,830,641,000	490,772,000	9,664,112,000	12,494,753,000

Liabilities position [abstract]
Current liabilities	770,445,000	14,932,035,000	334,275,000	6,582,462,000	21,514,497,000
Non-current liabilities	74,945,000	1,475,802,000	388,760,000	7,655,333,000	9,131,135,000

Total liabilities	845,390,000	16,407,837,000	723,035,000	14,237,795,000	30,645,632,000

Net monetary assets (liabilities)	(697,104,000)	(13,577,196,000)	(232,263,000)	(4,573,683,000)	(18,150,879,000)

35 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[800005] Annex - Distribution of income by product

			Income type [axis]

	National income		Export income	Income of	Total income
	[member]		[member]	subsidiaries abroad	[member]
				[member]
SALES
SALES	527,522,511,000	0	114,302,135,000	641,824,646,000

LEASE
LEASE	1,801,347,000	0	262,397,000	2,063,744,000
OTHER REVENUES
OTHER REVENUES	2,917,129,000	0	40,915,000	2,958,044,000

TOTAL	532,240,987,000	0	114,605,447,000	646,846,434,000

36 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[800007] Annex - Financial derivate instruments

Management discussion about the policy uses of financial derivate instruments,

explaining if these policies are allowed just for coverage or for other uses like trading

[text block]

W al- Mart de México, S.A.B . de C.V., (" WAL M EX " or "the Company") disclosure, concerning the use of derivative financial instruments (IFD, per its acronym in Spanish), in compliance with Mexican National Banking and Securities Commission (CNBV, per its acronym in Spanish) regulations so that investors have information regarding the significance of derivatives in the Company's financial position and results, and can fully assess the inherent risks.

W ALM EX has adopted the use of IFD to hedge foreign exchange rates, with the sole purpose of hedging against fluctuations in the exchange rate. The Company seeks to mitigate exchange rate fluctuation risk in "foreign currency - accounts payable" related to goods imported for resale. Hedging is only executed based on the supporting documentation of these accoun ts payable commitments. This process is subjected to the Company's policy, which limits the amount and use of IFD, and provides specific requirements for purchase and payment.

The IFD authorized by our "Exposure to foreign currency exchange rate risk - reduc tion" policy is the FX - Forward. The FX - Forward contract is a specific agreement between W ALM EX and the counterparty . That is why it is traded on the "over the counter" or OTC market through an ISDA contract (International Swap Dealers Association) .

The Company only enters into IFD with solvent financial institutions with solid credit capacity, and that are licensed and regulated to perform this kind of operation in the market. WALMEX's finance committee authorizes all counterparties based on credit quality ratings determined by international rating agencies, in order to reduce the risk of non -compliance and to ensure that the market value of open positions does not exceed the Company's maximum exposure and credit limits, the volume of operations executed wit h each authorized counterparty is permanently monitored.

FX- Forward are contracted for the purpose of economic hedging . The Company has not applied hedge accounting to these agreements and the fluctuations in "fair value" of these instruments are recognized directly to P&L during the corresponding period, as a financial income/expense.

General description about valuation techniques, standing out the instruments

valuated at cost or fair value, just like methods and valuation techniques [text block]

The calculation agent or IFD valuation are counterparts which, have held the respective operations. In addition, the Company through its valuations Bloomberg® platform performs its independent valuations, which are compared monthly with those reported by the counterparties. The IFD concluded with counterparties do not provide collateral or margin calls. They also do not have negotiated credit lines for the operation of the DFI.

37 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

In the calculation of the fair value for FX - Forward, standard valuation methodologies are used as well as widely accepted market variables that are endorsed internationally. The fair value is defined as the present value of the difference between the value of the underlying forward and value agreed at contract initiation, multiplied by the number of units of the underlying. These estimates are reviewed and approved by the Treasury department, which verifies the reasonableness of the results in relation to t he valuations provided by authorized counterparties.

Management discussion about intern and extern sources of liquidity that could be used for attending requirements related to financial derivate instruments [text block]

The Company's operations provide resources to meet its IFD contract requirements. The Company also has various lines of credit that could be used, if needed, to meet its IFD obligations.

Changes and management explanation in principal risk exposures identified, as

contingencies and events known by the administration that could affect future reports

[text block]

As of December 31, 2019, the Company has not identified significant changes in the risk exposure previously identified. These include possi ble contingencies and events known or expected by the Administration .

The Company has identified the following main risks within its IFD portfolio:

a . Market risk: The Company is exposed to market risks related to variations in currency exchange rates resulting from changes in economic conditions at the local and international level, tax and monetary policies, liquidity, political events, disasters, etc . As a result, one of the primary objectives of the Company's IFD policy is to mitigate foreign excha nge risk through the purchase of FX - Forward in order to protect the Company against exchange rate fluctuation in "foreign currency - accounts payable" and related to goods imports for resale. The Company does not authorize the purchase of IFD instruments for the purpose of speculation .

b . Liquidity risk : Resources available to manage hedge operations are generated by the Company's operations.

c . Counterparty Credit risk : Credit risk related to IFD is mitigated and monitored through the established approval procedures to select the counterparty financial institutions. The Treasury department regularly monitors and updates (annually or more frequently if necessary), the required credit quality assessment and ratings of financial institution counterparties. In addition, the Company has established limits to the amount of IFDs that can be executed with approved counterparties in order to further mitigate risk.

d . Operational Risk . WALMEX 's Board of Directors specifically authorized the strategy for the use of IFD and the Finance Committee approved the related policy . The policy regarding the use of IFD describes: the objective, the allowed derivative instruments, the limits and the

38 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

control mechanisms required to ensure that derivative transactions are properly conducted . All this, in order to manage and minimize: market, liquidity, credit and operational risk . The level of risk tolerance defined for the FX -Forward transactions is periodically reviewed by the Finance Committee, however, compliance with the establish ed parameters is reviewed monthly in order to detect opportunities and, when appropriate, propose action plans.

Execution and compliance with the approved strategy is regularly monitored internally by the Treasury and Accounting department. The results of that monitoring as well as identifications of inherent risks are periodically reported to the Treasury Vice -president and, if necessary, to the Board of Directors.

Additionally, the Treasury director is responsible for continuous monitoring and reporting to Treasury Vice -president of any events that may affect current IFD operations. In this case, the Treasury director is also responsible to propose to the Finance Committee actions to mitigate any events that may put the Company's results at risk.

The Company is also subject to periodic reviews of its IFD transactions by internal and external auditors who evaluate established processes and controls and the proper application thereof. The internal and external auditors also evaluate accounting records and the effect of IFD in the income statement and / or balance sheet accounts.

Quantitative information for disclosure [text block]

As of December 31, 2019, Fx - Forward contracts have a term of no more than four months, which are shown below:

				Notional			Equivalent
	Number of			Amount			in Million
	Contracts		Million (Dólar)			(Pesos)
New contracts current quarter	477	$	237	$	4,608
Maturity current quarter	492	$	291	$	5,729
Open contracts current	292	$	167	$	3,244

The change in fair value during the three -months period ended December 31, 2019 that was recognized for such contracts, amounts to MXN $63.69 million, net and it is presented in the finance income (cost) line items in the consolidated income (expense) of comprehensive results.

The fair value of these instruments represents less than 3% of total consolidated sales for the quarter or 2% of the assets. Therefore the potential risk from the Company's use of these instruments is not significant.

Additionally, as of December 31, 2019, there are no instances of non -compliance with IFD contracts, nor are there any margin calls or collateral required for any contracts. A summary of the outstanding IFD is as follows:

39 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

					Summary derivatives Financial Instruments
Type: Forward				Purpose: Economic							Position: Large
Current quarter		Counterpart 1	Counterpart 2	Counterpart 3	Counterpart 4	Counterpart 5		Total
Underliying	value	assets
USD/MXN	$18.9305
Notional Amount (million pesos)	$	1,050	$	702	$		472	$		1,019	$	-	$	3,244
Fair Value			$	( 20.56)	$	( 12.21)	$	(	7.67)	$	(	15.47)	$	-	$	55.90
Settlements Next 12 months														$	3,244
Previous quarter

Underliying	value	assets
USD/MXN	$19.6917
Notional Amount (million pesos)	$	1,998	$	358	$		1,145	$		864	$	-	$	4,364
Fair Value			$	12.16	$	1.19	$	(	6.92)	$		1.34	$	-	$	7.78
Settlements Next 12 months														$	4,364

Market risk

Concerning the sensitivity analysis of market risks to which the Company is exposed, the currency exchange rate of the Mexican peso against the US dollar would not leave a material impact as demonstrated in the table below.

Scenarios of charges in currency exchange rate

		Remote	Possible	Probable	Remote	Possible	Probable
Exchange Rate in USD	18.9305	-50%	-25%	-5%	50%	25%	5%
9.4653	14.1979	17.9840	28.3958	23.6631	19.8770

Sensitivity Scenario		-1,585	-792	-158	1,585	792	158
(million pesos)

Liquidity and credit risk

The Company does not have liquidity risk from its IFD as of December 31, 2019.

The Company manages credit risk related to its portfolio of derivatives transactions by engaging only with recognized and creditworthy counterparties. As of December 31, 2019, counterparty credit risk is immaterial .

40 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[800100] Notes - Subclassifications of assets, liabilities and equities

Concept			Close Current	Close Previous

			Quarter	Exercise
			2019-12-31	2018-12-31
Subclassifications of assets, liabilities and equities [abstract]
Cash and cash equivalents [abstract]
Cash [abstract]
Cash on hand	414,747,000		320,353,000

Balances with banks	18,753,815,000		14,304,794,000

Total cash	19,168,562,000		14,625,147,000
Cash equivalents [abstract]
Short-term deposits, classified as cash equivalents	0	0

Short-term investments, classified as cash equivalents	11,688,528,000		24,204,451,000
Other banking arrangements, classified as cash equivalents	0	0

Total cash equivalents	11,688,528,000		24,204,451,000

Other cash and cash equivalents	0	0
Total cash and cash equivalents	30,857,090,000		38,829,598,000

Trade and other current receivables [abstract]
Current trade receivables	2,290,284,000		2,719,643,000
Current receivables due from related parties	95,736,000		83,000,000

Current prepayments [abstract]
Current advances to suppliers	0	0
Current prepaid expenses	0	0

Total current prepayments	0	0

Current receivables from taxes other than income tax	7,702,170,000		6,193,580,000
Current value added tax receivables	7,702,170,000		6,193,580,000

Current receivables from sale of properties	0	0
Current receivables from rental of properties	0	0
Other current receivables	2,286,733,000		2,076,289,000

Total trade and other current receivables	12,374,923,000		11,072,512,000
Classes of current inventories [abstract]
Current raw materials and current production supplies [abstract]
Current raw materials	0	0
Current production supplies	0	0
Total current raw materials and current production supplies	0	0

Current merchandise	67,553,214,000		63,344,265,000
Current work in progress	0	0

Current finished goods	0	0

Current spare parts	0	0
Property intended for sale in ordinary course of business	0	0

Other current inventories	0	0

Total current inventories	67,553,214,000		63,344,265,000
Non-current assets or disposal groups classified as held for sale or as held for distribution to owners [abstract]
Non-current assets or disposal groups classified as held for sale	0	0

Non-current assets or disposal groups classified as held for distribution to owners	0	0
Total non-current assets or disposal groups classified as held for sale or as held for distribution to owners	0	0

Trade and other non-current receivables [abstract]
Non-current trade receivables	0	0
Non-current receivables due from related parties	0	0

Non-current prepayments	0	0

Non-current lease prepayments	0	0
Non-current receivables from taxes other than income tax	0	0

Non-current value added tax receivables	0	0

41 of 84

Wal-Mart de México, S.A.B. de C.V.				Consolidated

Ticker:	WALMEX	Quarter:	4D	Year: 2019


Concept		Close Current			Close Previous
		Quarter			Exercise
		2019-12-31			2018-12-31
Non-current receivables from sale of properties		0		0
Non-current receivables from rental of properties		0		0

Revenue for billing		0		0

Other non-current receivables		0		0
Total trade and other non-current receivables		0		0

Investments in subsidiaries, joint ventures and associates [abstract]
Investments in subsidiaries		0		0
Investments in joint ventures		0		0

Investments in associates		0		0

Total investments in subsidiaries, joint ventures and associates		0		0
Property, plant and equipment [abstract]
Land and buildings [abstract]
Land		31,132,440,000		30,180,274,000
Buildings		62,619,744,000		59,415,676,000

Total land and buildings	93,752,184,000		89,595,950,000

Machinery			0		0
Vehicles [abstract]
Ships			0		0
Aircraft			0		0

Motor vehicles		587,441,000		529,211,000

Total vehicles		587,441,000		529,211,000
Fixtures and fittings		0		0

Office equipment	32,747,438,000		30,557,373,000

Tangible exploration and evaluation assets		0		0
Mining assets			0		0

Oil and gas assets		0		0

Construction in progress	5,032,442,000		5,960,744,000
Construction prepayments		0		0

Other property, plant and equipment		0		0

Total property, plant and equipment	132,119,505,000		126,643,278,000
Investment property [abstract]
Investment property completed	6,644,218,000		4,853,970,000

Investment property under construction or development		0		0
Investment property prepayments		0		0

Total investment property	6,644,218,000		4,853,970,000

Intangible assets and goodwill [abstract]
Intangible assets other than goodwill [abstract]
Brand names		799,592,000		809,908,000

Intangible exploration and evaluation assets		0		0
Mastheads and publishing titles		0		0

Computer software	1,138,637,000		1,174,365,000

Licences and franchises		0		0
Copyrights, patents and other industrial property rights, service and operating rights		0		0

Recipes, formulae, models, designs and prototypes		0		0
Intangible assets under development		0		0
Other intangible assets		0		24,256,000

Total intangible assets other than goodwill	1,938,229,000		2,008,529,000
Goodwill		35,145,361,000		34,989,210,000

Total intangible assets and goodwill	37,083,590,000		36,997,739,000

Trade and other current payables [abstract]
Current trade payables	87,115,823,000		85,327,000,000
Current payables to related parties	1,248,841,000		1,143,739,000

Accruals and deferred income classified as current [abstract]

42 of 84

Wal-Mart de México, S.A.B. de C.V.				Consolidated

Ticker:	WALMEX	Quarter:	4D	Year: 2019


Concept		Close Current			Close Previous
		Quarter			Exercise
		2019-12-31			2018-12-31
Deferred income classified as current	1,348,990,000		1,304,556,000
Rent deferred income classified as current	339,789,000		53,109,000

Accruals classified as current	7,154,116,000		7,855,697,000

Short-term employee benefits accruals		0		0
Total accruals and deferred income classified as current	8,503,106,000		9,160,253,000

Current payables on social security and taxes other than income tax	1,071,591,000		1,730,329,000

Current value added tax payables	1,071,591,000		1,730,329,000
Current retention payables	699,410,000		82,841,000

Other current payables	7,462,796,000		13,417,529,000

Total trade and other current payables	106,101,567,000		110,861,691,000
Other current financial liabilities [abstract]
Bank loans current		0		0

Stock market loans current		0		0
Other current iabilities at cost		0		0

Other current liabilities no cost		0		0

Other current financial liabilities		0		26,791,000
Total Other current financial liabilities		0		26,791,000

Trade and other non-current payables [abstract]
Non-current trade payables		0		0

Non-current payables to related parties		0		0

Accruals and deferred income classified as non-current [abstract]
Deferred income classified as non-current	4,522,312,000		4,881,202,000

Rent deferred income classified as non-current	4,522,312,000		4,881,202,000

Accruals classified as non-current		0		0
Total accruals and deferred income classified as non-current	4,522,312,000		4,881,202,000

Non-current payables on social security and taxes other than income tax		0		0

Non-current value added tax payables		0		0
Non-current retention payables		0		0

Other non-current payables		0		0

Total trade and other non-current payables	4,522,312,000		4,881,202,000
Other non-current financial liabilities [abstract]
Bank loans non-current		0		0

Stock market loans non-current		0		0
Other non-current liabilities at cost		0		0

Other non-current liabilities no cost		0		0

Other non-current financial liabilities		0		962,218,000
Total Other non-current financial liabilities		0		962,218,000

Other provisions [abstract]
Other non-current provisions		0		0
Other current provisions	2,131,626,000		1,699,542,000

Total other provisions	2,131,626,000		1,699,542,000

Other reserves [abstract]
Revaluation surplus		0		0

Reserve of exchange differences on translation	16,013,524,000		16,294,999,000
Reserve of cash flow hedges		0		0
Reserve of gains and losses on hedging instruments that hedge investments in equity instruments		0		0

Reserve of change in value of time value of options		0		0
Reserve of change in value of forward elements of forward contracts		0		0

Reserve of change in value of foreign currency basis spreads		0		0

Reserve of gains and losses on financial assets measured at fair value through other comprehensive income		0		0
Reserve of gains and losses on remeasuring available-for-sale financial assets		0		0
Reserve of share-based payments		0		0

Reserve of remeasurements of defined benefit plans	(872,767,000)		(376,553,000)

43 of 84

Wal-Mart de México, S.A.B. de C.V.				Consolidated

Ticker:	WALMEX	Quarter:	4D	Year: 2019


Concept		Close Current			Close Previous
		Quarter			Exercise
		2019-12-31			2018-12-31
Amount recognised in other comprehensive income and accumulated in equity relating to non-current assets or disposal		0		0
groups held for sale

Reserve of gains and losses from investments in equity instruments		0		0

Reserve of change in fair value of financial liability attributable to change in credit risk of liability		0		0
Reserve for catastrophe		0		0

Reserve for equalisation		0		0

Reserve of discretionary participation features		0		0
Reserve of equity component of convertible instruments		0		0

Capital redemption reserve		0		0

Merger reserve			0		0
Statutory reserve		0		0

Other comprehensive income		0		0

Total other reserves	15,140,757,000		15,918,446,000
Net assets (liabilities) [abstract]
Assets		349,172,269,000		306,528,833,000

Liabilities		181,027,502,000		141,614,759,000
Net assets (liabilities)	168,144,767,000		164,914,074,000

Net current assets (liabilities) [abstract]
Current assets		113,905,166,000		115,614,816,000

Current liabilities	113,498,948,000		114,165,492,000

Net current assets (liabilities)	406,218,000		1,449,324,000

44 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[800200] Notes - Analysis of income and expense

Concept			Accumulated		Accumulated	Quarter Current	Quarter Previous

			Current Year		Previous Year	Year	Year
			2019-01-01 - 2019-		2018-01-01 - 2018-	2019-10-01 - 2019-	2018-10-01 - 2018-
			12-31		12-31	12-31	12-31
Analysis of income and expense [abstract]
Revenue [abstract]
Revenue from rendering of services	0	0	0	0

Revenue from sale of goods	641,824,646,000		612,186,302,000	184,368,545,000	176,122,360,000

Interest income	0	0	0	0
Royalty income	0	0	0	0

Dividend income	0	0	0	0

Rental income	2,063,744,000		1,996,618,000	533,663,000	506,361,000
Revenue from construction contracts	0	0	0	0

Other revenue	2,958,044,000		2,727,412,000	841,431,000	792,843,000

Total revenue	646,846,434,000		616,910,332,000	185,743,639,000	177,421,564,000
Finance income [abstract]
Interest income	1,218,687,000		1,268,122,000	235,640,000	346,211,000

Net gain on foreign exchange	628,208,000		805,203,000	299,139,000	157,854,000
Gains on change in fair value of derivatives	413,161,000		256,252,000	129,752,000	120,613,000

Gain on change in fair value of financial instruments	0	0	0	0

Other finance income	0	0	0	0
Total finance income	2,260,056,000		2,329,577,000	664,531,000	624,678,000

Finance costs [abstract]
Interest expense	0	0	0	0
Net loss on foreign exchange	619,192,000		630,197,000	165,472,000	176,576,000

Losses on change in fair value of derivatives	396,321,000		354,448,000	193,436,000	146,640,000
Loss on change in fair value of financial instruments	0	0	0	0
Other finance cost	6,045,110,000		1,674,984,000	1,696,400,000	427,346,000

Total finance costs	7,060,623,000		2,659,629,000	2,055,308,000	750,562,000
Tax income (expense)
Current tax	11,143,214,000		13,034,909,000	2,588,129,000	4,732,586,000

Deferred tax	161,133,000		(927,786,000)	989,094,000	(1,002,581,000)
Total tax income (expense)	11,304,347,000		12,107,123,000	3,577,223,000	3,730,005,000

45 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[800500] Notes - List of notes

Disclosure of notes and other explanatory information [text block]

A. Consolidated financial statements

The accompanying consolidated financial statements have been prepared in conformity with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and the interpretations issu ed by the International Financial Reporting Interpretation Committee (IFRIC), including those issued previously by the former Standard Interpretations Committee (SIC).

B . New accounting pronouncements

International Financial Reporting Standards ("IFRS") new and revised effective as of January 1, 2019

Adoption of IFRS 16 "Leases"

IFRS 16, "Leases" entered into force on January 1, 2019. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and sets out the principles for the recognition, measurement, presentation and disclosure of leases. W ALM EX has decided to adopt IFRS 16, using the modified retrospective approach and, therefore, the comparative information will not be restated and will contin ue to be recorded under IAS 17. Additionally, the Company will use the exemptions proposed by the standard for lease agreements which lease terms end within 12 months from the date of the initial adoption and lease agreements for which the underlying asset value is low.

Lessor accounting under IFRS 16 is substantially unchanged from the accounting under IAS 17.

The impacts in the consolidated statements of financial position are as follows:

	December 31,					January 1,
		2018	IFRS 16 adoption		2019
Assets
Total current assets	$	115,614,816	$	(	19,545)	$	115,595,271
Non-current assets:
Long lived assets - net
(except intangibles)		144,221,979			32,450,127		176,672,106
Intangible assets-net		36,997,739			-		36,997,739
Deferred tax assets		7,467,622			747,285		8,214,907

Other non-current assets		2,226,677		(	24,706)		2,201,971
Total assets	$	306,528,833	$		33,153,161	$	339,681,994
Liabilities and Shareholders'
Equity
Total short term liabilities	$	114,165,492	$		265,090	$	114,430,582

Long term liabilities:

46 of 84

Wal-Mart de México, S.A.B. de C.V.					Consolidated

Ticker:	WALMEX				Quarter: 4D Year: 2019

	Other long term liabilities	20,019,308		34,484,632	54,503,940
	Deferred tax liabilities	5,786,932		7,556	5,794,488
	Employee benefits	1,643,027		-	1,643,027
	Total liabilities	141,614,759		34,757,278	176,372,037
	Shareholders' Equity:
	Equity	45,468,428		-	45,468,428
	Retained earnings	104,638,687	(	1,604,117)	103,034,570
	Other items in shareholders'
	equity	14,806,959		-	14,806,959
	Total Shareholders' equity	164,914,074	(	1,604,117)	163,309,957
	Total liabilities and
	shareholders' equity	$ 306,528,833	$	33,153,161	$ 339,681,994

The weighted average lessee's incremental borrowing rate applied to lease liabilities recognized in the statement of financial position at the date of initial application was 11.4%.

The reconciliation between the discounted operating lease commitments dis closed applying IAS 17 as of December 31, 2018 and the lease liabilities recognized in the statements of financial position at the date of initial application is as follows:

Discounted operating lease commitments disclosed applying IAS 17 (guaranteed term)

Less - Renewable energy supply service agreements with contingent rent

Plus - Present value of the minimum lease payments for the period after the guaranteed term and until the end of the contract

Lease liabilities recognized in the statement of financial position at the date of initial application.

January 1,

2019

$ 15,129,620

( 12,388,539)

32,008,641

$ 34,749,722

Adoption of IFRIC 23, Uncertainty in relation to tax treatment of profits

IFRIC 23 is effective January 1, 2019 and clarifies the application of the recognition and measurement criteria established by IAS 12 - "Income taxes", when there are uncertain tax positions. Uncertain fiscal positions are those fiscal positions where there is uncertainty about whether the competent tax authority will accept the fiscal position under current tax laws.

The interpretation will be applied to the determination of the tax income (tax loss), the fiscal bases, the unused tax losses, the unused tax credits and the tax r ates, when there is uncertainty about the treatments of the income tax according to IAS 12. The IFRIC considers that an entity should assume that a tax authority with the right to examine any amount reported to it will examine these amounts and will have f ull knowledge of all relevant information in doing so. It should also consider whether the relevant authority is likely to accept each tax treatment, or group of tax treatments, that were used or plan to use in your income tax return .

47 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

If the entity concludes that a particular tax treatment is likely to be accepted, the entity has to determine the tax income (tax loss), tax bases, unused tax losses, unused tax credits or tax rates consistent with the tax treatment included in the tax return . If the entity concludes that a particular tax treatment is not likely to be accepted, the entity must use the most probable amount or the expected value of the tax treatment when determining the income tax (tax loss), tax bases, unused tax losses, unused tax credits or tax rates.

The interpretation is effective for annual reporting periods beginning on or after January 1, 2019. The impact of the adoption of the interpretation represented a charge to retained earnings of $ 1,822 million pesos and an increase in deferred tax liability for the same amount.

Amendments to IFRS 9, Prepayment Features with Negative Compensation

Under IFRS 9, a debt instrument can be measured at amortized cost or at fair value through other comprehensive income, provided that the contra ctual cash flows are 'solely payments of principal and interest on the principal amount outstanding' and the instrument is held within the appropriate business model for that classification . These amendments to IFRS 9 had no impact on the consolidated fina ncial statements of the Company .

Amendments to IAS 19, Plan Amendment, Curtailment or Settlement

The amendments to IAS 19 address the accounting when a plan amendment, curtailment or settlement occurs during a reporting period. The amendments specify that when a plan amendment, curtailment or settlement occurs during the annual reporting period, an entity is required to:

Determine the current service cost for the remainder of the period after the plan amendment, curtailment or settlement, using the actuaria l assumptions used to remeasure the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event.
Determine the net interest for the remainder of the period after the plan amendment, curtailment or settlement using the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event, and the discount rate used to remeasure that net defined benefit liability (asset) .

The modifications also clarify that an entity first determines any past service cost, or a gain or loss on liquidation, without considering the effect of the asset ceiling. This amount is recognized in results. An entity determines the effect of the asset ceiling after the modification, reduction or liquidation of the plan. Any change in that effect, excluding the amounts included in net interest, is recognized in the comprehensive income.

The modifications apply to amendments, curtailments or settlements of the plan that occur on or after the beginning of the first annual reporting period that begins on or after January 1, 2019. During the year ended December 31, 2019, Walmex had no amendments, curtailments or settlements of the employee benefits plan

Amendments to IAS 28, Long - term interests in associates and joint ventures

The amendments clarify that an entity applies IFRS 9 to long -term interests in an associate or joint venture towhich the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture (long - term interests) .

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

The amendments also clarified that, in applying IFRS 9, an entity does not take account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognized as adjustments to the net investment in the associate or joint venture that arise from applying IAS 28.

These amendments had no impact on the consolidated financial state ments of the Company .

Annual Improvements 2015 - 2017 Cycle (issued in December 2017) effective on January 1, 2019

IFRS 3, Business Combinations

The amendments clarify that, when an entity obtains control of a business that is a joint operation, it applies the requirements for a business combination achieved in stages, including remeasuring previously held interests in the assets and liabilities of the joint operation at fair value. In doing so, the acquirer remeasures its entire previously held interest in the joint operation .

These amendments had no impact on the consolidated financial statements of the Company as there is no transaction where joint control is obtained.

IFRS 11, Joint Arrangements

The amendments set out that the previously held interests in that joint operation are not remeasured.

These amendments had no impact on the consolidated financial statements of the Company, but could apply in future transactions.

IAS 12, Income Taxes

The amendments clarify that the income tax consequences of dividen ds are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity recognizes the income tax consequences of dividends in profit or loss, other comprehensive income or equit y according to where it originally recognized those past transactions or events.

Since the Company's current practice is in line with these amendments, they had no additional impact on the consolidated financial statements.

IAS 23, Borrowing Costs

The amendments clarify that an entity treats as part of general borrowings any borrowing originally made to develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete.

These amendments are not applicable to the Company, therefore they had no impact on the consolidated financial statements.

IFRS effective as of January 1, 2020 and 2021 Amendments to IFRS 3, Business Combinations

The IASB issued amendments to the definition of a "busi ness" to help entities determine whether an acquired set of activities and assets is a business or not. The modifications

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

must be applied to transactions that are business combinations or asset acquisitions for which the acquisition date is on or after Jan uary 1, 2020. Since the modifications apply prospectively to transactions or other events that occur on or after the date of adoption, the Company Administration believes that these modifications will not have a significant impact.

IAS 1, Financial statements presentation and IAS 8, Accounting policies, changes in accounting estimations and errors

The IASB issued amendments to align the definition of 'material' across the standards and to clarify certain aspects of the definition, and is applicable for periods beginning on January 1, 2020; although the modifications are not expected to have a signif icant impact on the financial statements of W ALM EX , the introduction of the term "hidden information" in the definition could impact the way materiality judgments are made in practice by raising the importance of how information is communicated and organiz ed in the consolidated financial statements.

IFRS 17, Insurance Contracts

This IFRS will replace IFRS 4 that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i .e., life, non - life, direct insurance and re -insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and con sistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects.

IFRS 17 is effective for reporting periods beginning on or after January 1, 2021, with comparative figures required . Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. The Com pany's management estimates that these modifications will not have a significant impact on the consolidated financial statements.

C . Legal proceedings

W ALM EX is a subsidiary of Walmart, Inc . ("WMT"). WMT owns approximately 70% of the shares and voting power in W AL M EX and has the ability to designate at least a majority of the directors of W ALM EX . The remaining shares of W ALM EX are publicly traded on the Mexican Stock Exchange and, to the best of the knowledge of W ALM EX , no shareholder other than WMT and its af filiates owns more than 2% of the outstanding shares of

W ALM EX .

Currently, the Board of Directors of W AL M EX is composed of 10 directors. The Audit Committee and the Corporate Governance Committee of the Board of Directors are composed exclusively of independent 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 W ALM EX 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.

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

On June 20, 2019, W ALM EX announced that Walmart Inc. has entered into a global settlement with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) that resolves a more than seven -year investigation into the company's compliance with the U.S. Foreign Corrupt Practices Act (FCPA) . Through the settlements, which cover conduct that took place years ago, Walmart has agreed to a combined payment of $282.7 million dollars. The global resolution ends all FCPA - related investigations or inquiries into Walma rt and its subsidiaries by the DOJ and the SEC.

These agreements relate to Walmart's anti - corruption internal controls in Brazil, Mexico, India and China prior to April 2011. Walmart, under the direction of its Audit Committee, conducted a thorough internal investigation, cooperated with the DOJ and the SEC, and took extensive steps that have established its strong Global Anti - Corruption Compliance Program.

Over the past seven years, WMT spent more than $900 million dollars on FCPA inquiries and investigations, its Global Compliance Program and organizational enhancements. Walmart's actions were acknowledged by the DOJ and the SEC in the resolution agreements.

As part of the resolution, WMT entered into a Non - Prosecution Agreement with the DOJ. The DOJ will not prosecute the Company if, for a period of three years, the Company meets its obligations set forth in the agreement. WMT has also agreed to an administrative order with the SEC to resolve SEC findings related to violations of the FCPA's books and reco rds and internal controls provisions. In addition, WMT Brasilia S.a .r.l., an indirect wholly - owned subsidiary of WMT, has entered into a guilty plea in the U.S. District Court for the Eastern District of Virginia as part of the agreement with the DOJ for causing a books and records violation of the FCPA.

WMT has also agreed with the DOJ to oversight by an independent compliance monitor with a limited scope for a period of two years. Also, Walmart has agreed to report to the SEC on its Anti -Corruption Compliance Program for a period of two years.

WMT has taken extensive steps to strengthen its Global Anti - Corruption Compliance Program through enhancing its anti - corruption compliance policies, procedures, and internal controls in every country in which it ope rates. WMT was recognized by the New York Stock Exchange Governance Services, a subsidiary of the NYSE, as the 2016 winner of its "Best Governance, Risk, and Compliance Program" for Large -Cap companies.

WMT agreed to pay a total amount of $282.7 million do llars consisting of the following: a $137.96 million dollars penalty to the DOJ and $144.69 million dollars in disgorgement of profits plus interest to the SEC . A $4.3 million dollars penalty, including forfeiture, against WMT Brasilia S.a .r.l . will be ded ucted from the amount owed by Walmart under the Non - Prosecution Agreement. In November 2017, Walmart disclosed that it had accrued approximately $283 million dollars for the DOJ and SEC resolution. As a result, the amount will not materially impact Walmart 's financial results.

Disclosure of accounting judgements and estimates [text block]

The preparation of the consolidated financial statements requires the use of accounting estimates and assumptions based on historical experience and other factors and; therefore, the actual results may differ from estimates. The estimates and assumptions are r eviewed periodically and are as follows:

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Accounting estimates for impairment of inventory, property and equipment, right of use assets, investment properties, goodwill and the successful probability of legal and tax contingencies.
Assumptions such as discount rates used to determine leases liabilities; annually, the Company reviews the useful lives for property and equipment and intangible assets with definite lives; labor obligation present value factors determined through actuarial valuations using economic assumptions, such as discount rate, inflation rate, salary increase rate and minimum salary increase rate; and determination of the recoverable value involving significant judgments such as future cash flows, the discount rate and the interest rate; fair value of derivative financial instruments and investment properties.

Disclosure of auditors' remuneration [text block]

The fees approved for the audit of financial statements and other services as of December 31, 2019 amounted to $ 32.4 million pesos.

Disclosure of authorisation of financial statements [text block]

The consolidated financial statements and their notes for the year ended December 31, 2019 and 2018, were approved by the Company´s management and Board of Directors on February 13, 2020 and are subject to approval by the Shareholders meeting . Subsequent events are considered through this date.

Disclosure of basis of consolidation [text block]

The accompanying consolidated financial statements include the financial statements of W ALM EX , entities in which the Company was deemed the primary beneficiary and those of its Mexican and foreign subsidiaries or investee in which has control, which are grouped as described in "Disclosure of subsidiaries", and prepared considering the same accounting period .

Subsidiaries or investee are consolidated from the date on which control is assumed by W ALM EX , and until such control is lost. The results of subsidiaries or investee acquired or disposed of during the year are included in the consolidated statements of comprehensive income from the date of acquisition or up to the date of sale, as appropriate.

Specifically, the Company controls an investee if, and only if, the Company has:

Power over the investee (i .e., the existing rights that give it the current ability to conduct the relevant activities of the investee)
Exposure to, or rights to, variable returns from your participation in the investee
The ability to use its power over the investee to affect their returns

52 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Transactions and related party balances are eliminated in the consolidation .

As of March 2019, the Company consolidates in its financial statements the balances and operations of the investees Cargill Protein S. de R.L. de C.V. and Cargill Protein Servicios S. de R.L. de C.V., according to the agreement established with them to provide services for meat processing, through which the Company obtains control solely and exclusivel y from the accounting point of view and applying accounting principles but not legal ones, through the right to variable returns for its participation in these entities. Net income for the consolidated period considers a remainder attributable to the resul ts of the investees of $12,797 in 2019 and the statement of financial position contains a remainder attributable to the minority interest of the investees of $16,289 as of December 31, 2019.

Disclosure of basis of preparation of financial statements [text block]

The consolidated statements of comprehensive income were prepared based on the function of the components, which allows disclosure of cost of sales separately from other costs, operating and administrative expenses, with both expenses recognized in the statement of income at the time they are incurred .

Prior to the consolidation process, the financial statements of the Company's foreign subsidiaries are prepared under IFRS and translated to Mexican pesos using the average exchange rate for the consolidated statement of comprehensive income and the year - end exchange rate for the consolidated statement of financial position.

The cumulative translation adjustment is the effect of translating the financial statements of the Company's foreign subsidiaries into Mexican pesos. This effect is recognized in equity.

The statement of cash flows is prepared using the indirect method .

In the notes to consolida ted financial statements, the amounts are expressed in thousands of Mexican pesos, except where otherwise indicated.

Disclosure of cash and cash equivalents [text block]

The balances for this concept are presented in the Cash and Cash Equivalents section in [800100] Notes - Subclassifications of assets, liabilities and equities.

Disclosure of cash flow statement [text block]

I n the item "other inflows (outflows) of cash corresponding to cash flows from (used in) investing activities" is presented the input and output of resources related to employee stock option plan fund -net of $(543,916) in 2019 and $940,518 for 2018.

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Disclosure of commitments [text block]

a . C ommi tm en ts

As of December 31, 2019, the Company has entered into agreements with suppliers for the acquisition of inventories, property and equipment , maintenance services, as well as renewable energy supply services, as shown below.:

Year			Amount

2020	$	20,679,381
2021	$	1,645,344
2022	$	1,712,290
2023	$	1,779,233
2024	$	1,848,805
2025 and thereafter	$	16,153,264

The Company has lease commitments as explained in section "Disclosure of leases".

b . Contingencies

The company is subject to several lawsuits and contingencies for legal proceedings (labor, civil, commercial and administrative proceedings) and tax proceedings. The Company has recognized a provision of $2,131,626 as of December 31, 2019, ($1,699,542 in 2018), which is presented in other accounts payable. In the opinion of the Company, none of the legal proceedings are significant either individually or as a whole.

The tax authorities have conducted a review on the sale operation of the Vips restaurant to Alsea and issued a termination document, in which they claim the payment of alleged differences in tax payments of $10,559 million of pesos, which includes taxes, fines and other surcharges.

The Company has not recognized a provision for this contingenc y, since the external attorneys and the Company's Management consider that there are sufficient elements available to sustain the validity of the operations carried out and to prevail, either by administrative or judicial means.

An appeal for revocation was filed with the tax authorities, in order to make an adequate assessment of all the arguments, before going to the competent courts.

Disclosure of deferred income [text block]

The Company has deferred income classified as current, for layaway merchandise, unearned membership fees and rent. This information is presented in accruals and deferred income classified as current section in [800100] Notes - Subclassifications of assets, liabilities and equity .

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Disclosure of deferred taxes [text block]

The deferred tax assets and liabilities generated by temporary differences as of December 31, 2019 and 2018 are presented as follows:

		2019		2018
Deferred tax assets:
Leases and other long-term liabilities	$	3,175,816	$	3,729,985
Other accounts payable		2,168,464		1,852,480
Inventories		826,628		750,551
Labor obligations		789,490		553,700
Tax losses carryforward from subsidiaries		908,628		529,079
Provision for impairment of other receivables		39,540		51,827
	$	7,908,566	$	7,467,622
Deferred tax liabilities:
Property and equipment	$	4,278,470	$	5,190,660
Prepaid expenses		988,959		234,830
Other items		221,530		361,442
IFRIC 23 adoption / Other impacts		1,252,609		-
	$	6,741,568	$	5,786,932

Deferred income tax assets on tax loss carryforwards are recognized to the extent that realization of the related tax benefit through future taxable income is probable.

The Company has the following tax losses from subsidiaries, which in conformity with the current Mexican Income Tax Law may be carried forward against the taxable income generated in future years.

Year of expiration	Amount
2024		$	11
2027			368,412
2028			915,291
2029		1,745,045
	$	3,028,759

Changes in the assets and liabilities for deferred taxes (net) as of December 31, 2019 and 2018, are shown below:

		2019			2018
Balances as of beginning of the year	$	1,680,690	$	795,235
Movement net of the year		47,155			1,381,566
Excess of previous years		(219,828)			(453,838)
Other comprehensive income items		191,446			(29,380)
IFRS 16 adoption		739,729			-
IFRIC 23 adoption / Other impacts		(1,252,609)			-
Translation effect		(19,585)			(12,893)
Balance as of end of the year	$	1,166,998	$	1,680,690

55 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Disclosure of depreciation and amortisation expense [text block]

The balances for this concept are presented in [700002] Informative data about the income statement.

Disclosure of derivative financial instruments [text block]

Such information is presented in [800007] Annex - Financial derivate instruments.

Disclosure of dividends [text block]

At an Ordinary Meeting held on March 21, 2019, the shareholders adopted the following resolution:

The shareholders declared an ordinary cash dividend of $0.84 pesos per share, paid in three installments of $0.28 pesos each on April 25, 2019, August 28, 2019 and N ovember 27, 2019; and an extraordinary dividend to be paid in cash at rate of $0.91 pesos per share in three installments: $0.35 pesos on April 25, 2019, $0.30 pesos on August 28, 2019 and $0.26 pesos on November 27, 2019.

After the dividend declared is ap proved at the Shareholders' meeting, the Company reduces retained earnings and recognizes the accounts payable in the consolidated statement of financial position .

Disclosure of earnings per share [text block]

This information is presented in basic earnings per share and diluted earnings per share items in [310000] Statement of comprehensive income, profit or loss, by function of expense.

Disclosure of effect of changes in foreign exchange rates [text block]

As of December 31, 2019, the exchange rates used to translate the foreign currency denominated assets and liabilities into mexican pesos, are as follows:

		Close exchange
		rate with respect
Country	Currency	to peso

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Wal-Mart de México, S.A.B. de C.V.			Consolidated

Ticker:	WALMEX					Quarter: 4D Year: 2019


	Costa Rica	Colon		C	30.452973
	Guatemala	Quetzal		Q	0.406688
	Honduras	Lempira		L	1.301339
	Nicaragua	Cordoba		C$	1.787491
	El Salvador	US Dolar		US$	0.052825

As of December 31, 2019, the exchange rate used to translate assets and liabilities denominated in USD was $ 18.93.

Disclosure of employee benefits [text block]

As of December 31, 2019 and 2018, an analysis of the Company's assets and liabilities for seniority premiums and retirement benefits is as follows:

		Seniority premiums	Retirement benefits
		2019		2018	2019	2018
		$		$	$	$
Defined benefit obligations		1,489,633		1,015,698	1,528,323	1,446,924
Plan assets	(	929,670)	(	819,595)	-	-
					$	$
Net projected liability	$	559,963	$	196,103	1,528,323	1,446,924

Changes in the net present value of the defined benefit obligations (DBO) as of December 31, 2019 and 2018, are shown below:

		Seniority premiums		Retirement benefits
		2019		2018		2019		2018
		$		$		$		$
DBO at beginning of year		1,015,698		1,020,340		1,446,924		1,728,121
Net period cost charged to
results:
Labor cost from actual
services		141,596		152,112		205,925		180,208
Interest cost on DBO		97,129		78,675		130,003		144,023
Other comprehensive
income items		358,572	(	99,520)		323,897		29,142
Benefits paid	(	123,362)	(	135,909)	(	521,263)	(	568,705)
Translation impacts		-		-	(	57,163)	(	65,865)
		$		$		$		$
DBO at year end		1,489,633		1,015,698		1,528,323		1,446,924

Changes in the net present value of the plan assets (PA) as of December 31, 2019 and 2018, are shown below:

Seniority premiums

20192018

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Wal-Mart de México, S.A.B. de C.V.					Consolidated

Ticker:	WALMEX			Quarter: 4D Year: 2019


PA at beginning of year	$ (	819,595)	$	(	756,598)
Return on plan assets	(	78,480)		(	58,228)
Components of other comprehensive income		5,191			31,776
Plan contributions	(	160,075)		(	172,278)
Benefits paid		123,289			135,733
PA at year end	$	(929,670)	$	(	819,595)

The valuation techniques used by the Company to determine and disclose the fair value of its financial instruments are based on a level 1 hierarchy .

As of December 31, 2019 and 2018, the plan assets have been invested through the trust mostly in money market instruments. As of December 31, 2019 and 2018, actuarial gains/losses from labor obligations, net of taxes are recognized as a component of other comprehensive income in the amount of $(236,202) and $451,458, respectively .

As of December 31, 2019, the assumptions used in the actuarial valuations of Mexico and Central America, are as follows:

	México		Central America
	2019	2018	2019	2018
Financial:
Discount rate	7.45%	9.50%	5.30%-9.37%	3.80%-13.56%
Salary increase rate	5.25%	5.25%	2.50%-7.51%	2.50%-7.51%
Minimum salary increase
rate	4.50%	4.00%	2.00%-5.00%	2.00%-7.01%
Inflation rate	4.00%	4.00%	1.20%-4.52%	2.00%-7.01%
Biometrics:
Mortality	IMSS-2009(1)	IMSS-97(1)	RP-2000(2)	RP-2000(2)
Disability	21.10%	21.07%	15.40%	15.40%
Retirement age	60 years	60 years	50-65 years	50-65 years

Mexican Social Security Institute experience for males and females.
RP-2000for Costa Rica, Guatemala, Honduras, Nicaragua and El Salvador.

A sensitivity analysis of the DBO at December 31, 2019, is as follows:

		Amount
DBO at December 31, 2019	$	3,017,956
DBO at discount rate +1%		2,841,089
DBO at discount rate -1%		3,332,390
Effects over DBO:
Discount rate +1%	(	263,365)
Discount rate -1%		413,334

The discount rate in Mexico is determined using the curve of government bonds issued by the Federal Government known as M. Bonds. In Central America, the discount rate is determined using the curve of government bonds of United States of America plus the risk of each country.

Disclosure of entity's operating segments [text block]

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Segment financial information is prepared based on the information used by CODM to make business decisions.

An analysis of financial information by operating segments and geographical zones is as follows:

		Year ended December 31, 2019
		Operating		Financial	Income before
Segment		income	expenses - net		income taxes
Mexico	$	47,403,081	$	(	4,125,047)	$	43,278,034
Central America		6,599,605		(	675,520)		5,924,085
Consolidated	$	54,002,686	$	(	4,800,567)	$	49,202,119
		Year ended December 31, 2018
		Operating		Financial	Income before
Segment		income	expenses - net		income taxes
Mexico	$	41,981,265	$	(	255,091)	$	41,726,174
Central America		7,208,523		(	74,961)		7,133,562
Consolidated	$	49,189,788	$	(	330,052)	$	48,859,736

				Year ended December 31, 2019
	Purchase of long
		term definite-	Depreciation and	Total
Segment		lived assets		amortization	assets	Current liabilities
					$
Mexico	$	15,391,225	$	13,178,163	247,035,722	$	93,743,256
Central America		5,183,605		3,824,344	67,092,444		21,008,298
Goodwill		-		-	35,145,361		-
					$		$
Consolidated	$	20,574,830	$	17,002,507	349,273,527		114,751,554

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Wal-Mart de México, S.A.B. de C.V.					Consolidated

Ticker:	WALMEX							Quarter: 4D Year: 2019

				Year ended December 31, 2018
		Purchase of long
			term definite-	Depreciation and	Total
Segment		lived assets	amortization	assets	Current liabilities
						$
Mexico		$	11,694,003	$	9,681,218	213,528,655	$	95,519,391
Central America		6,238,575		2,876,370	58,010,968		18,646,101
Goodwill			-		-	34,989,210		-
						$		$
Consolidated	$	17,932,578	$	12,557,588	306,528,833		114,165,492

See note "Disclosures of revenues", for the analysis of finance customers contracts.

Disclosure of expenses by nature [text block]

Cost of sales and general expenses are presented in the consolidated statement of comprehensive income and mainly include the purchase of merchandise, personnel expenses, depreciation and amortization, rent, advertising, maintenance, utilities, royalties, and technical assistance.

Disclosure of fair value measurement [text block]

See Description of accounting policy for fair value measurements in [800600] Notes - List of accounting policies.

Disclosure of finance cost [text block]

Other finance cost item includes interest on finance leases and other minor expenses; the balances for this concept are presented in the finance costs section in [800200] Notes - Analysis of income and expense.

Disclosure of finance income [text block]

The balances for this concept are presented in Finance Income section in [800200] Notes - Analysis of income and expense.

60 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Disclosure of financial instruments at fair value through profit or loss [text block]

Such information is presented in [800007] Annex - Financial Derivate instruments.

Disclosure of financial risk management [text block]

A. General risk factors:

See "Disclosure of entity's most significant resources, risks and relationships".

B . Financial risk factors:

The Company is exposed to the effects of future events that could affect the purchasing power and/or buying habits of the population. These events may be economic, political or social in nature and some of the most financial risks are market risk, exchange rate risk and interest rate risk . The Co mpany's risk management plan seeks to minimize the potential negative effects of these risks.

Exchange rate risk:

The Company operates with foreign companies and therefore is exposed to the risk of exchange rate operations with foreign currencies, particul arly the US dollar ("USD") .

As of December 31, 2019, the exchange rate used to translate assets and liabilities denominated in US dollars was $18.93 per dollar ( $19.66 as of December 31, 2018) .

Considering the net monetary position in dollars at December 3 1, 2019, if there was an increase or decrease in the exchange rate of the US dollar against the Mexican peso of 5%, there would be a favorable or unfavorable effect on the financial income (expenses) and equity of the Company of $186,353.

The Company has entered into Fx - forward contracts for foreign currency in order to protect itself from exposure to variability in the exchange rate for the payment of liabilities in Mexico related to the purchase of imported goods agreed in US dollars. More details of those operations are described in [800007] Annex - Financial Derivate Instruments.

The valuation techniques used by the Company to determine and disclose the fair value of its financial instruments, are based on the fair value hierarchy level 2 (See Descriptio n of accounting policy for fair value measurements) .

Interest rate risk:

The Company has temporary investments in government paper which generate financial income. By reducing the interest rate, the financial income of the Company also decreases. The interest rate of these investments fluctuated during the year 2019 between 3.60% and 9.01%. As of December 31, 2019, the financial income amounted to $1,218,687 ( $1,268,122 in 2018) .

61 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Considering the highly liquid instruments as of December 31, 2019, if t here was an increase or decrease in the interest rate of 0.50%, there would be a favorable or unfavorable effect on the financial income of the Company of $71,292.

Disclosure of general information about financial statements [text block]

Disclosure of going concern [text block]

W ALM EX has sufficient resources to continue operating as a going concern . The accompanying consolidated financial statements have been prepared on a going -concern basis and on a historical - cost basis, except for financial assets and liabilities and derivative financial instruments, which are fair valued as of the end of every period .

Disclosure of impairment of assets [text block]

The balances for this concept are presented in Adjustments to reconcile profit (loss) section in [520000] Statement of Cash Flows, indirect method.

Disclosure of income tax [text block]

The income tax provision includes taxes payable by W AL MEX 's subsidiaries in Mexico and abroad, determined in accordance with the tax laws in force in each country. Until December 31, 2019, companies in Mexico determined and paid their income tax under the general tax law.

Income taxes recorded on the income statement are presented in tax income section in [800200] Notes - Analysis of income and expense.

As of December 31, 2019 and 2018 , the Company's effective tax rate is 23.0% y 24.8%, respectively . The difference between the statutory tax rate and Company's effective tax rate is mainly due to inflationary effects and other permanent items.

The income tax rates applicable to each count ry are shown below:

62 of 84

Wal-Mart de México, S.A.B. de C.V.		Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

		Rate
	Mexico	30%
	Costa Rica	30%
	Guatemala	25%
	Honduras	30%
	Nicaragua	30%
	El Salvador	30%

Disclosure of information about employees [text block]

Such information is presented in the section [700000] Informative data about the Statement of financial position.

Disclosure of information about key management personnel [text block]

Remuneration to the Company's principal officers and Board of Directors for the years ended December 31, 2019 and 2018, is as follows:

Short-term benefits Termination benefits Share-based payments

	2019		2018
$	1,133,350	$	1,238,960
	84,491		60,081
	167,092		126,434
$	1,384,933	$	1,425,475

Disclosure of intangible assets and goodwill [text block]

An analysis of intangible assets is as follows:

	December 31,		December 31,
		2019			2018
Balance at the beginning of the year	$	36,997,739	$	39,368,028
Additions		291,276			252,728
Disposals	(	6,332)	(	4,153)
Amortization of the period	(	479,026)	(	327,234)
Transfers		136,471			149,151
Translation effect		143,462		(	2,440,781)
Balance at the end of the year	$	37,083,590		$	36,997,739

63 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

As a result of its impairment testing, the Company concluded that there was no impairment in the value of the Company's Goodwill as of December 31, 2019 and 2018.

Disclosure of interest expense [text block]

Other finance costs include interest by finance lease; such information is presented in [800200] Notes - Analysis of income and expense.

Disclosure of interest income [text block]

Those balances are presented in [800200] Notes - Analysis of income and expense.

Disclosure of inventories [text block]

Inventories consist of the following:

	December 31,		December 31,
		2019			2018
Merchandise for sale	$	63,951,823	$	59,696,445
Agro-industrial development		841,245			914,688
		64,793,068			60,611,133
Merchandise in transit		2,760,146			2,733,132
	$	67,553,214		$	63,344,265

As of December 31, 2019 and 2018, the effect of inventory impairment is $1,326,742 and $1,155,004, respectively, which was included in cost of sales in the consolidated statement of comprehensive income.

Disclosure of investment property [text block]

An analysis of investment properties is as follows:

	December 31,		December 31,
	2019		2018
Balance at the beginning of the year	$ 4,853,970	$ 5,118,707
Additions	22,742	41,614

64 of 84

Wal-Mart de México, S.A.B. de C.V.						Consolidated

Ticker:	WALMEX					Quarter: 4D Year: 2019

Modifications and updates		1,528,058			-
Disposals	(	186,181)	(	72,929)
Depreciation of period	(	369,977)	(	233,422)
Transfers		795,606			-
Balance at the end of the year	$	6,644,218		$	4,853,970

The fair value of investment properties as of December 31, 2019 and 2018 is $9,238,994 and $8,028,001, respectively .

The investment properties of the Company consist of commercial properties located in Mexico. The administration determined that the investm ent properties are grouped according to the nature, characteristics and main client of each property.

The fair values of the properties are based on management valuations. To calculate the value of a commercial property, the rental approach was used, apply ing the corresponding gross rent multiplier (GRM) .

Disclosure of issued capital [text block]

Capital stock is represented by one series of nominative, common or ordinary registered shares with no par value that can be freely subscribed . The Company's capital stock must be represented by a minimum of three billion shares and a maximum of one hundred billion shares.

As of December 31, 2019, an analysis of paid -in stock and the number of shares representing it is as follows:

		Numbers of shares		Common Stock
Valid			Variable	Free
Coupon	Fixed Portion		Portion	Subscription	Fixed	Variable	Total
83	2,295,809,324		15,165,593,307	17,461,402,631	$5,591,362	$36,935,265	$42,526,627

Disclosure of leases [text block]

WALMEX has executed property lease agreements. Leases are usually contracted for a period of 15 years. Some leases include a unilateral renewal option for an additional period . The Company evaluates at the beginning of the lease if it is reasonably certain that it exercise said renewal option .

In addition, the Company has also entered into finance leases for the rental of residual water treatment plants, which the terms of 10 years with purchase option at the end of the agreement; as well as other equipment leases with terms o f 3 to 5 years.

WALMEX sub- leases some of its investment properties.

WALMEX right of use assets balance is as follows:

65 of 84

Wal-Mart de México, S.A.B. de C.V.						Consolidated

Ticker:	WALMEX					Quarter: 4D Year: 2019

		December 31,		December 31,
			2019			2018
Balance at the beginning of the year	$	12,724,731	$	12,709,974
IFRS 16 initial adoption		33,812,340			-
Additions		2,447,597			1,205,197
Modifications and actualizations		5,670,229	(	6,430)
Disposals	(	473,459)	(	396,980)
Depreciation	(	3,844,268)	(	687,704)
Transfers		(	851,965)	(	37,437)
Conversion Effect		189,980		(	61,889)
Balance at the end of the year	$	49,675,185		$	12,724,731

Classified as finance leases as of December 31, 2018 Lessee liabilities are as follows:

		December 31,
Year			2019
2020	$	8,273,625
2021			8,069,080
2022			7,671,583
2023			7,355,548
2024			7,104,737
2025 and thereafter			98,907,384
Nominal lease payments			137,381,957
Net present value
adjustment			( 80,169,338)
Lease liabilities, net		$	57,212,619

The Company analyzes its services agreements that do not have the legal form of a lease to determine if the supplier transfers the use of an asset to W ALMEX . After this analysis, W ALM EX has determined that there are no material service agreements that must be classified as a lease.

The amounts recognized in the consolidated statement of income are as follow:

Depreciation expense for the right of use assets, by type: Property

Equipment

Interest on lease liabilities

Expenses related to short-term leases Expenses related to leases of low-value assets

Variable lease payments (not included in the measurement of lease liabilities)

Sub lease revenue

December 31,

2019

$ 3,218,362 625,906 5,752,506 495,219 4,260

2,656,794 ( 114,085)

Total rent under operating leases charged to the income statement during the year ended December 31, 2018 was $6,775,941 and is included in the general expenses line in the consolidated statement comprehensive income.

66 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Amounts recognized in the consolidated statements of cash flows are as follow:

	December 31,
	2019
Rental payments - principal	$ 2,323,791
Rental payments - interest	5,752,506
Additions of right of use assets	2,447,597
Modifications and actualization	5,670,229

Disclosure of other current assets [text block]

This item includes mainly prepaid advertising, property tax and insurance such balances are presented in [210000] Statement of financial position, current/non current.

Disclosure of other non-current assets [text block]

This item mainly includes guarantee deposits and long - term investments; such information is presented in other non -current financial assets item in [210000] Statement of financial position, current / non - current.

Disclosure of prepayments and other assets [text block]

Prepaid expenses are recorded at cost and recognized as current assets in the consolidated statement of financial position as from the date the prepayments are made. Once the goods or services related to the prepayments are received, they should be charged to the income statement or capitalized in the corresponding asset line when there is certainty that the acquired goods will generate future economic benefits.

Disclosure of property, plant and equipment [text block]

Properties and equipment are as follows:

	December 31,		December 31,
		2019			2018
Balance at the beginning of the year	$	126,643,278	$	122,252,752
Additions		20,260,815			17,638,236
Disposals	(	1,886,176)	(	335,716)

67 of 84

Wal-Mart de México, S.A.B. de C.V.						Consolidated

Ticker:	WALMEX					Quarter: 4D Year: 2019

Depreciation of period	(	12,309,236)	(	11,309,228)
Transfers	(	80,112)	(	111,301)
Translation effect	(	509,064)		(	1,491,465)
Balance at the end of the year	$	132,119,505	$	126,643,278

Disclosure of related party [text block]

a)Related party balances

As of December 31, 2019 and 2018, the consolidated statement of financial position includes the following balances with related parties:

Accounts receivable: Walmart, Inc.

Accounts payable: C.M.A. - U.S.A., L.L.C. Swiss Asia Minor GmbH

Other accounts payable: Walmart Inc.

	2019		2018
$	95,736	$	83,000
$	695,229	$	689,282
	101,254		120,005
$	796,483	$	809,287
$	1,248,841	$	1,143,739

Balances with related parties consist of current accounts that bear no interest, are payable in cash and have no guarantees. Balances with related parties are considered recoverable and consequently, for the years ended December 31, 2019 and 2018, there were no uncollectible related party balances.

b) Related party transactions

WALMEX has entered into the following open - ended agreements with related parties:

Imports of goods for sale, which are interest - free and payable monthly with CMA USA LLC .
Purchase commissions with Swiss Asia Minor GmbH that are payable on a recurring basis.
Technical assistance and services with Walmart, Inc. that are payable monthly.
Royalties for trademark use with Walmart Inc., payable quarterly based on a percentage of sales of the retail businesses.

The terms of the related party transactions are consist ent with those of an arm's length transaction .

The Company had the following transactions with related parties during the years ended December 31, 2019 and 2018:

		2019		2018
Purchases and commissions related to the
import of goods for sale:
C.M.A. - U.S.A., L.L.C.	$	4,432,605	$	4,644,211
Swiss Asia Minor GmbH		255,494		247,429

68 of 84

Wal-Mart de México, S.A.B. de C.V.					Consolidated

Ticker:	WALMEX					Quarter: 4D Year: 2019


		$	4,688,099	$	4,891,640
Costs and expenses related to technical
assistance, services and royalties:
Walmart Inc.	$	8,158,541	$	4,225,378

Disclosure of reserves within equity [text block]

As of December 31, 2019, the legal reserve of the Company amounts to $9,104,745, which represents 20% of the share capital, which, in accordance with the General Law of Commercial Companies of Mexico, has reached the maximum percentage of its constitution.

Disclosure of revenue [text block]

An analysis of the other revenue that forms part of the main activity of the Company is as follows:

		For the years ended
		December 31,
		2019		2018
Memberships	$	1,783,884	$	1,600,375
Rental		2,063,744		1,996,618
Sale of waste		555,810		580,113
Bank bonuses		534,895		494,658
Parking		83,455		52,266
Total	$	5,021,788	$	4,724,030

As of December 31, 2019, rental income includes investment properties of $593,530 ($575,280 in 2018) .

The Company analyzes and manages its operation through its geographical location and format.

An analysis of income from contracts with customers is as follows:

	For the years ended
	December 31,
Mexico:	2019	2018
Self-service
Price clubs	61.5%	61.2%
	20.7%	20.4%
Central America:	17.8%	18.4%

Of W ALM EX's total net sales, approximately $9.3 billion and $7.1 billion relates to electronic commerce for the years ended December 31, 2019 and 2018, respectively.

69 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Disclosure of share capital, reserves and other equity interest [text block]

a)In the Ordinary Meeting held on March 21, 2019, the shareholders approved a cap of $5,000,000 on the amount the Company would use in 2019 to repurchase its own shares. As of December 31, 2019, there is no own shares in Treasury.

b)Distributed earnings and capital reductions that exceed the net taxed profits account (CUFIN per its acronym in Spanish) and restated contributed capital account (CUCA per its acronym in Spanish) balances are subject to income tax, in conformity with Articles 10 and 78 of the Mexican Inco me Tax Law.

As of December 31, 2019, the total balance of the tax accounts related to equity is $66,451,789 ( $77,766,617 as of 31 of December 2018), in conformity with the current tax laws.

Disclosure of share-based payment arrangements [text block]

The employee stock option plan fund consists of 158,548,465 in W AL M EX shares, which have been placed in a trust created for the plan .

The total compensation cost charged to operating results in the years ended December 31 , 2019 and 2018 was $330,777 and $307,379, respectively, which represented no cash outflow for the Company and it is included in the general expenses line in the consolidated comprehensive income statement.

Changes in the stock option plan are as follows:

			Weighted average
		Number of	price per share
		shares	(pesos)
Balance as of December 31, 2017		184,962,474	35.73
Granted		35,274,409	45.62
Exercised	(	46,694,684)	33.39
Cancelled	(	13,989,997)	34.50
Balance as of December 31, 2018		159,552,202	38.38
Granted		41,020,219	49.54
Exercised	(	30,471,230)	33.38
Cancelled	(	11,552,726)	43.34
Balance as of December 31, 2019		158,548,465	41.87
Shares available for option grant:
As of December 31, 2019		6,620,210
As of December 31, 2018		5,606,718

As of December 31, 2019, the granted and exercisable share under the stock option plan fund is 158,548,465 and 54,903,239, respectively .

Due to the fact that there are no premium items for sale of shares and fund for the plan of actions to the personnel in the established formats, these are presented in the premium line

70 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

in issuance of shares of the statement of financial position and the state of variations in capital accountant.

Below you can find the details:
	December 31,		December 31,
			2019				2018
Fund stock options	$	(	5,642,730)	$	(	5,126,291)
Premium for sale of shares			4,318,104				4,014,804
	$	(	1,324,626)		$	(	1,111,487)

The premium for sale of shares represents the difference between the cost of the shares and the value at which they were sold, after deducting the income tax.

Disclosure of subsidiaries [text block]

W ALM EX holds 100% of the equity interest in the following groups of companies in Mexico and Central America, as shown below:

Group		Line of Business
Nueva Walmart		Operation of 2,035 Bodega Aurrerá discount stores, 280 Walmart
		hypermarkets, 93 Superama supermarkets, 163 Sam's Club
		membership self-service wholesale stores in 2019.
Import companies		Import of goods for sales
Real estate		Property developments and management of real estate
		companies.
Service companies		Rendering of professional services to Group companies and not-for-
		profit services to the community at large, and shareholding.
Walmart Central America		Operation of 549 discount stores (Despensa Familiar and Palí), 99
		supermarkets (Paiz, La Despensa de Don Juan, La Unión and Más x
		Menos), 155 Bodegas, Maxi Bodega and Maxi Palí) and 33 Walmart
		hypermarkets in 2019. These stores are located in Costa Rica,
		Guatemala, Honduras, Nicaragua and El Salvador.

Disclosure of significant accounting policies [text block]

A summary of the significant accounting policies is described below. These policies have been applied consistently with those applied in the year ended December 31, 2018, except for the corresponding to leases accounting recognition and uncertainty over income tax treatments as are described in IFRS 16 and IFRIC 23, respectively; which were updated in accordance to these new standards that are effective in 2019.

71 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Disclosure of tax receivables and payables [text block]

The balances of those concepts are presented in the lines of taxes to recover and to pay at a long term of [210000] Statement of financial position, current / non - current.

Disclosure of trade and other payables [text block]

The balances for these items are presented in the suppliers and other accounts payable section of [800100] Notes - Subclassifications of assets, liabilities and stockholders' equity .

Other current accounts payable includes dividends payable for $ 136,999 as of December 31, 2019 ( $ 5,831,387 as of December 31, 2018) .

Disclosure of trade and other receivables [text block]

Those balances are presented in trade and other receivables sections in [800100] Notes - Subclassifications of assets, liabilities and equities.

Average aging to collect the accounts receivable to customers is from 30 to 90 days.

72 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[800600] Notes - List of accounting policies

Disclosure of significant accounting policies [text block]

Description of accounting policy for construction in progress [text block]

Construction in progress mostly consists of investments made by the Company, mainly for the construction of new stores and improvements; they are recognized at cost, and once complete, the Company reclassifies work in process to property and the depreciation begins.

Description of accounting policy for deferred income tax [text block]

Deferred income taxes result from applying the applicable enacted or substantively enacted income tax rate at the reporting date to all temporary differences between financial reporting and tax values of assets and liabilities. Deferred tax assets are only recognized when it is probable that sufficient taxable profit will be available against which the deductions for temporary differences can be taken . The deferred tax liabilities are generally recognized for all taxable temporary differences.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the deferred assets to be used. Unrecognized deferred tax assets are re -assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

The deferred income tax on temporary differences arising from investments in subsidiarie s is recognized, unless the period of reversal of temporary differences is controlled by W AL M EX and it is probable that the temporary differences will not reverse in the near future.

Description of accounting policy for depreciation expense [text block]

73 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Depreciation of property and equipment as well as investment properties is computed on a straight -line method at the following annual rates:

Buildings, facilities and leasehold improvements:
-	Constructions and structures	2.5%	To	5.0%
-	Facilities and adaptations	5.0%	To	12.5%
-	Construction finishes	10.0%	To	25.0%
Furniture and equipment	5.0%	To	33.3%
Computer equipment	12.5% To 33.3%
Transportation equipment	10.0%	to	33.3%

Description of accounting policy for derivative financial instruments [text block]

The Company has entered into currency hedging through Over the Counter (OTC) currency forward transactions (Fx - forwards) to mitigate the effects caused by variability in the exchange rate of foreign currency on its accounts payable related to import goods for sale. The maximum length of these contracts is six months.

Derivatives are initially recognized at fair value at the date the derivative contract is subscribed and subsequently revalued a t fair value at the end of the reporting period. The resulting gain or loss is recognized immediately as a part of the financial income (expense) line in the consolidated statement of comprehensive income.

In accordance with our standards of corporate gove rnance, the Company manages only Fx - forwards as derivative financial instruments.

Description of accounting policy for determining components of cash and cash

equivalents [text block]

Cash and cash equivalents mainly consists of bank deposits, credit and debit card transfer transactions that process in less than seven days, and highly liquid investments with maturities of less than 90 days, plus accrued interest. Cash is stated at fair value.

Cash that is restricted and cannot be excha nged or used to settle a liability for a minimum period of twelve months is presented in a separate line item in the statement of financial position and is excluded from cash and cash equivalents in the cash flow statement.

Description of accounting policy for earnings per share [text block]

74 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Basic earnings per share is the result of dividing the net income of the year attributable to owners of the parent by the weighted average number of outstanding shares. Diluted earnings per share are the same as basic earnings per share since there is currently no potentially dilutive common stock.

The effect on earnings per share, which represents the remainder attributable to the results of the investees in 2019, is $0.001 pesos per share.

Description of accounting policy for employee benefits [text block]

Employees in Mexico are entitled to a seniority premium in accordance with the Mexican Federal Labor Law. Also, W AL M EX employees in each of the six countries are entitled to termination benefits to be paid in accordance to each country's respective labor l aws. These employee benefits are recognized as expense during the years in which services are rendered, based on actuarial computations performed by independent experts using the projected unit credit method.

In Mexico, the seniority premium is granted to employees who retire from the Company with a minimum of fifteen years of seniority . The amount paid to the associate is equivalent to twelve days for each year worked, without exceeding the amount for each day of twice the minimum wage. The Company has set up a defined benefits trust fund to cover seniority premiums accruing to employees. Employees make no contributions to this fund.

In Central America, the termination benefits for associates are paid when required in case the of unjustified dismissal or de ath, in accordance with the Labor Law of each country where the Company operates. The benefits range from 20 days to one month of salary for each year of uninterrupted service.

All other payments to which employees or their beneficiaries are entitled in t he event of involuntary retirement or death are expensed as incurred, in accordance with federal labor laws of each country.

Actuarial gains and losses are recognized as they accrue directly in the consolidated statement of comprehensive income, and in the statement of change in equity .

Description of accounting policy for expenses [text block]

Expenses are recognized in the income statement when they are incurred.

Description of accounting policy for fair value measurement [text block]

75 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Assets and liabilities carried at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are as follows:

Level 1. Quoted prices for identical instruments in active markets,
Level 2. Other valuations including quoted prices for similar instruments in active markets that are directly or indirectly observable, and
Level 3. Unobservable data inputs, for which the Company develops its own assumptions and valuations.

Subsequent measurement of the Company's financial assets and liabilities is determined based on their classification .

The Company determines whether transfers have occurred between levels in the hierarchy by re -assessing categorization at the end of each reporting period .

Description of accounting policy for financial assets [text block]

These assets are classified in one of the following categories, as required: financial assets at fair value through profit or loss, accounts receivable, investments held to maturity. The Company's financial assets primarily consist of cash and cash equivalents, trade receivables and other accounts receivable which are initially recognized at fair value. Fair value of an asset is the price in which such asset would be sold in an ordinary transaction with third parties.

Assets are recorded at fair value and are measured using the fair value hierarchy, as mentioned in the accounting policy for fair value measurements.

Description of accounting policy for financial liabilities [text block]

These liabilities are classified in accounts payable, other accounts payable and finance leases; these liabilities are initially recognized at fair value and subsequently valued to amortized cost using the effective interest rate method . The liabilities from derivatives are recognized initially and subsequently at fair value. Fair value of a liability is the amount that would be paid to transfer the responsibil ity to a new creditor in an ordinary transaction among those parties.

Description of accounting policy for foreign currency translation [text block]

76 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

The Company's foreign currency denominated assets and liabilities are translated to functional currency at the prevailing exchange rate at the date of the consolidated statement of financial position . Exchange differences are recognized in the consolidated statement of comprehensive income in the financial income (expenses) lines.

Description of accounting policy for functional currency [text block]

The Mexican peso is the Company's functional and reporting currency.

Description of accounting policy for goodwill [text block]

Goodwill represents the excess of the purchase price over the fair value of the net assets of Walmart Central America at the acquisition date and is not subject to amortization.

Goodwill was assigned applying the perpetuity value technique to determine the goodwill's value in use, considering each Central American country (Costa Rica, Guatemala, Honduras, Nicaragua and El Salvador) as a minimum cash generating unit.

Goodwill is tested for impairment annually . The Company engages the services of an independent expert to test its goodwill for impairment. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre -tax discount rate that reflects current market assessments of value of money over time and the specific risks affecting such assets.

Future cash flows consider the business plan and projections used by management in its decision making for the following five years.

Goodwill is translated at the closing exchange rate and such translation is recognized in other comprehensive income.

Description of accounting policy for impairment of assets [text block]

The long term finite useful life assets are subject to impairment tests only when there is objective evidence of impairment.

The Company recognizes impairment in the value of this type of assets by applying the expected present value technique to determine value in use, considering each store as the minimum cash -generating unit.

The present value technique requires detailed budget calculations, which are prepared separately for each cash-generating unit where the assets are located. These budgets generally cover five years and, in case of a longer period, an expected growth rate is applied.

77 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Impairment losses are recognized in the consolidated statement of comprehensive income as a part of other expenses.

When an impairment loss is subsequently reversed, the carrying amount of the asset (or cash- generating unit) is increased by the reviewed estimate of the recoverable amount, not exceeding the carrying amount that would have been determined had no impairment loss been recognized in prior years. The reversal of an impairment loss is recognized immediately in the comprehensive income statement.

Description of accounting policy for income tax [text block]

Income taxes are classified as current and deferred, and are recognized in the consolidated statement of comprehensive income in the year they are expensed or accrued, except when they come from items directly recognized in other comprehensive income, in which case, the corresponding taxes are recognized in equity .

Current income taxes are determined based on the tax laws approved in the countries where W AL M EX has operations and are the result of applying the applicable tax rates at the date of the consolidated financial statements on the taxable profits of each entity of the Group . Current income taxes are presented as a current liability/asset net of prepayments made during the year.

Description of accounting policy for intangible assets and goodwill [text block]

Intangible assets are recognized when they have the following characteristics: they are identifiable, they give rise to future economic benefits and the Company has control over such benefits.

Intangible assets are valued at the lower of acquisition cost or fair value at the acquisition date and are classified based on their useful lives, which may be definite or indefinite. Indefinite-lived assets are not amortized; however, they are subject to annual impairment tests. Definite lived assets are amortized using the straight - line method at rates between 7.7% and 33.3%.

Description of accounting policy for investment property [text block]

Investment properties consist of land, buildings and constructions and facilities in properties that are leased to others and are maintained to obtain economic benefits through the collection of rent. Investment properties are measured initially at cost, including transaction costs. After initial recognition, they continue to be valued at cost less depreciation and accumulated losses due to impairment.

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Description of accounting policy for leases [text block]

The Company assesses whether a contract is or contains a lease at inception of the contract. This assessment involves the exercises of judgement about whether it depends on a specified asset, whether the Company obtains substantially all the econ omics benefits from the use of that asset, and whether the Company has the right to direct the use of the assets.

W ALM EX as a lessee

Until December 31, 2018, W AL M EX considered as finance leases those where substantially all of the risks and rewards of ownership are substantially transferred . Finance leases are recorded at the lower of the fair value of the leased property and the present value of the minimum lease payments and are amortized over the shorter of the estimated useful life of the asset or the remaining expected lease term including unilateral renewals contemplated in each lease agreement. Lease agreements that do not qualify as finance leases were treated as operating leases. Payments made under operating leases were recognized in the income statement on a straight -line method over the remaining expected lease term. The starting date of a lease is considered the possession date of the leased property, incl uding the lessee's rights to renewal.

Starting in January 1, 2019, W AL M EX recognizes a right - of- use asset and a lease liability at the lease commencement date. The right - of- use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right- of- use asset is subsequently depreciated using the straight -line method from the commencement date to the earlier of the end of the useful life of the right - of- use asset or the end of the lease term. The estimated useful lives of right - of- use assets are determined on the same basis as those of property and equipment. In addition, the right - of- use asset is periodically reduced by impairment losses, if any, and adjusted for certain re - measurements of the lease liability.

The lease liability is in itially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, W AL MEX incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The lease liability is measured at amortized cost using the effective interest method . As from January 1, 2019 these liabilities are re -measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the estimate of the amount expected to be payable under a residual value guarantee, or if W AL M EX changes its assessment of whether it will exercise a purchase, extension or terminat ion option.

When the lease liability is re - measured in this way, a corresponding adjustment is made to the carrying amount of the right - of- use asset or is recorded in profit or loss if the carrying amount of the right - of- use asset has been reduced to ze ro.

W ALM EX as a lessor

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

For 2019 and 2018 WAL M EX obtains rental income from investment properties: the variable rent income is recognized as revenue in the period in which they are earned and such revenues are presented as a part of other revenues li ne within the consolidated statement of comprehensive income.

Description of accounting policy for measuring inventories [text block]

Inventories are valued using the retail method, except for merchandise for the Sam's Club, distribution centers, Agro -Industrial development (grains, edibles and meat) and perishable division, which are stated using the weighted average cost method . These methods are consistent with those applied in the prior year. Inventories, including obsolet e, slow- moving and defective items or items in poor condition, are stated at the lower of cost and net realizable value.

Freight and buying allowances are capitalized in inventory and are recognized in the cost of sales based on the turnover of the invento ries that gave rise to them .

Description of accounting policy for property, plant and equipment [text block]

Property and equipment are recorded at acquisition cost and are presented net of accumulated depreciation .

As of December 31, 2018, Properties, plant and equipment acquired under finance leases were depreciated at the shorter between the useful life of the asset and the term of the contract including the lessee's unilateral right to renewal .

Description of accounting policy for provisions [text block]

Accrued liabilities represent current obligations (legal or assumed) for past events where outflow of economic resources is possible and can be reasonably estimated. These provisions have been recorded based on management's best estimation . Reimbursements are recognized net of any related obligation when it is certain that the reimbursement will be obtained . Provision expenses are presented in the consolidated statement of comprehensive income net of any corresponding reimbursements.

Description of accounting policy for recognition of revenue [text block]

Revenue from merchandise sales, including online sales ("e - Commerce") is recognized in the consolidated statement of comprehensive income at the time the obligation is satisfied

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Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

(when "control" of the goods has been transferred to the customer) . Revenue from services is recognized at the time the service is provided.

Extended warranties, service commissions and cell phone airtime are recognized net in the net sales line in the consolidated statement of comprehensive income at time the service is provided.

Sam's Club membership income is deferred over the twelve -month term of the membership and presented in the other revenue line in the consolidated statement of compre hensive income.

Rental income is recognized as it accrues over the terms of the lease agreements entered into with third parties and presented in the other revenue line in the consolidated statement of comprehensive income.

Revenues from the sale of waste and parking lots are recognized in other revenue line at the time the property is transferred upon delivery of the goods or at the time the services are provided.

Description of accounting policy for segment reporting [text block]

Segment financial information is prepared based on the information used by the Chief Operating Decision Maker "CODM" to make business decisions and assess the Company's performance. Segment information is presented based on the geographical zones in which the Company operates.

Description of accounting policy for share-based payment transactions [text block]

The employee stock option plan fund is comprised of W ALM EX shares which are acquired in the secondary market and are presented at acquisition cost. The plan is designed to grant stock options to executives of the companies in the Group, as approved by the Mexican National Banking and Securities Commission .

The shares subject to the plan are assigned, taking as a reference the weighted average price of the purchase and sale transactions in the secondary market of such shares.

In 2018, the policy was modified to add the "restricted shares" and modify the vesting period . According to the current policy, executives may exercise their option to acquire shares over four years divided in two equal parts, 50% in two years and the remaining 50% by the end of the fourth year. The term to exercise the rights is 10 years from the grant date.

The vesting period for the restricted shares plan is 3 years and the term to exercise the option is up to 10 years starting from the date of the assignment. The amount of the restricted shares is subject to compliance with certain metrics t hat are evaluated for

81 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

assignment after the first year, which may cause the original allocation to decrease or increase within a range of 0% to 150%.

According to the previous policy, W AL MEX executives may exercise their option to acquire shares in equal parts over five years.

The right to exercise an employee stock option expires after ten years as of the grant date or after sixty days following the date of the employee's termination.

The compensation cost of stock options is recognized in general expenses in the consolidated statement of comprehensive income at fair value.

Premium for sale of shares:

The premium on sale of shares represents the difference between the cost of shares and the value at which such shares were sold, net of the corresponding inco me tax.

Description of accounting policy for subsidiaries [text block]

Subsidiaries or investee are consolidated from the date on which control is assumed by WALMEX, and until such control is lost. The results of subsidiaries or investee acquired or disposed of during the year are included in the consolidated sta tements of comprehensive income from the date of acquisition or up to the date of sale, as appropriate.

Specifically, the Company controls an investee if, and only if, the Company has:

• Power over the investee	(i.e. the existing rights that give it the curr ent ability to conduct
the relevant activities of	the investee)

Exposure to, or rights to, variable returns from your participation in the investee.
The ability to use its power over the investee to affect its returns

Transactions and related party balances are eliminated in the consolidation .

As of March 2019, the Company consolidates in its financial statements the balances and operations of the investees Cargill Protein S. de R.L. de C.V. and Cargill Protein Servicios S. de R.L. de C.V., according to the agreement established with them to provide services for meat processing, through which the Company obtains control solely and exclusively from the accounting point of view and applying accounting principles but not legal ones, through the right to variable returns for its participation in these entities. Net income for the consolidated period considers a remainder attributable to the results of the investees of $12,797 in 2019 and the statement of financial position contains a remainder attributable to the minority interest of the investees of $16,289 as of December 31, 2019.

82 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

Description of accounting policy for trade and other receivables [text block]

W ALM EX recognizes the impairment of its receivables by applying the simplified approach allowed by IFRS 9 "Financial Instruments", recognizing the expected credit losses as of the creation of the account receivable. These assets are grouped according to the characteristics of credit risk and the days past due, with the expected loss provision for each risk group determined based on the historical credit loss and experience of the Company, adjusted for specific factors for debtors and effects in the economic envir onment.

Description of other accounting policies relevant to understanding of financial

statements [text block]

As of December 31, 2019, the Company has no other relevant policies to understanding the consolidated financial statements.

83 of 84

Wal-Mart de México, S.A.B. de C.V.	Consolidated

Ticker:	WALMEX	Quarter: 4D Year: 2019

[813000] Notes - Interim financial reporting

Dividends paid, ordinary shares:	35,957,290,000

Dividends paid, other shares:	0

Dividends paid, ordinary shares per share:	2.08

Dividends paid, other shares per share:	0

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Wal-Mart de Mexico SAB de CV published this content on 13 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 February 2020 22:18:06 UTC

Latest news about Wal-Mart de México, S.A.B. de C.V.

Wal-Mart de Mexico Proposes Ignacio Caride as Next CEO	Apr. 12	DJ
Wal-Mart de Mexico to Invest MXN34.5 Billion in 2024	Mar. 13	DJ
Retailer Walmex to invest around $2 billion in 2024	Mar. 12	RE
Transcript : Wal-Mart de México, S.A.B. de C.V. - Analyst/Investor Day	Mar. 11
Retailer Walmex eyes more Mexico stores after fastest expansion in decade	Feb. 15	RE
Transcript : Wal-Mart de México, S.A.B. de C.V., Q4 2023 Earnings Call, Feb 15, 2024	Feb. 15
Wal-Mart de Mexico 4Q Profit Rises 1.2% to MXN15 Billion	Feb. 14	DJ
Mexican retailer Walmex posts slight bump in fourth quarter profits	Feb. 14	RE
Mexican retailer Walmex posts 1.18% bump in Q4 net profit	Feb. 14	RE
Wal-Mart de México, S.A.B. de C.V. Reports Earnings Results for the Fourth Quarter Ended December 31, 2023	Feb. 14	CI
Wal-Mart de México, S.A.B. de C.V. Reports Earnings Results for the Full Year Ended December 31, 2023	Feb. 14	CI
Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX *) commences an Equity Buyback Plan for MXN 5,000 million worth of its shares, under the authorization approved on March 30, 2023.	Feb. 13	CI
Tranche Update on Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX *)'s Equity Buyback Plan announced on February 14, 2024.	Feb. 13	CI
Creo unveils product in APAC; Unilever hires director	Jan. 31	AN
Wal-Mart de México, S.A.B. de C.V. Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2023	23-10-25	CI
Walmex posts 12% drop in Q3 net profit	23-10-25	RE
Walmart in Mexico posts 12% drop in Q3 net profit	23-10-25	RE
Transcript : Wal-Mart de México, S.A.B. de C.V., Q3 2023 Earnings Call, Oct 25, 2023	23-10-25
Mexico antitrust body summons Walmart over alleged anticompetitive practices	23-10-09	RE
Walmart's Mexico unit to face anti-trust panel after three-year investigation	23-10-06	RE
Strong international sales boosted Walmart's quarterly results	23-08-17	RE
Trending : Walmart Posts Higher Profit, Raises Guidance	23-08-17	DJ
Walmart's McKenna to Retire as CEO of International Unit	23-08-16	DJ
Walmart names Sam's Club CEO as head of international division	23-08-16	RE
Walmart's international division head to retire	23-08-16	RE

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Company Profile

Wal Mart de Mexico SAB de CV is a Mexico-based company engaged in operating self-service stores. The Company's segments include Mexico and Central America. In Mexico, the Company operates through Self-service, which includes the operation of discount stores, hypermarkets, wholesale-price membership stores and supermarkets, and Others, which includes department stores and real estate transactions with third parties. In Central America, it operates discount stores, supermarkets, hypermarkets, warehouse stores and wholesale-price membership stores in Costa Rica, Guatemala, Honduras, Nicaragua and El Salvador. It offers products in a range of categories, such as food, consumables, general merchandise and apparel. It offers products under various brand names, including Bodega Aurrera Express, Walmart, Sam's Club, Superama, Suburbia and Medimart Pharmacies. The Company also operates e-commerce business in Mexico. It is controlled by Wal Mart Stores Inc.

Sector

Discount Stores

Calendar

2024-04-23 - Q1 2024 Earnings Release

Related indices

Mexico IPC

More about the company

Income Statement Evolution

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Ratings for Wal-Mart de México, S.A.B. de C.V.

Trading Rating

Investor Rating

ESG Refinitiv

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Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

65.22 MXN

Average target price

77.24 MXN

Spread / Average Target

+18.43%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Other Discount Stores

	1st Jan change	Capi.
WAL-MART DE MÉXICO, S.A.B. DE C.V.	-8.87%	65.74B
COSTCO WHOLESALE CORPORATION	+9.39%	321B
TARGET CORPORATION	+16.54%	76.88B
DOLLAR GENERAL CORPORATION	+5.30%	31.35B
DOLLARAMA INC.	+20.06%	23.17B
PAN PACIFIC INTERNATIONAL HOLDINGS CORPORATION	+13.82%	14.48B
BJ'S WHOLESALE CLUB HOLDINGS, INC.	+12.93%	9.96B
SIAM MAKRO	+21.30%	9.02B
B&M EUROPEAN VALUE RETAIL S.A.	-7.85%	6.54B
OLLIE'S BARGAIN OUTLET HOLDINGS, INC.	-1.42%	4.62B

Other Discount Stores

Wal-Mart de México, S.A.B. de C.V.

Equities

WALMEX *

MX01WA000038

Discount Stores

Wal Mart de Mexico B de C : Results 4Q19 to the MSE

EPS Revisions