Wal Mart de Mexico B de C : Results 4Q20 to the MSE

Wal-Mart de México, S.A.B. de C.V.

Consolidated

Ticker:

WALMEX

Quarter:

4D

Year:

2020

Quarterly Financial Information

[105000] Management commentary..................................................................................................................................2

[110000] General information about financial statements ........................................................................................... 13

[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 ....................................................................... 43

[800200] Notes - Analysis of income and expense ....................................................................................................... 47

[800500] Notes - List of notes .......................................................................................................................................... 48

[800600] Notes - List of accounting policies .................................................................................................................. 90

[813000] Notes - Interim financial reporting ................................................................................................................. 110

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Wal-Mart de México, S.A.B. de C.V.

Consolidated

Ticker:

WALMEX

Quarter:

Year:

2020

[105000] Management commentary

Management commentary [text block]

Words can't express how proud we are of each one of our associates. They are taking care of our customers and members during these unprecedented times, while providing an essential service and, thanks to their hard work and dedication, today more than ever we are fulfilling our purpose of helping people live better.

On our Walmex Day 2019, we shared with you the plan to transform our way of working with four goals: to continue to put our customers and associates always at the center of our decisions, to work in an agile way, to use data to support decision-making and to foster an end-to-end view. This new way of working was essential for us to adapt to the new circumstances and to remain productive and close to the stores, while working remotely.

In the face of uncertainty, our associates keep us moving forward. Besides serving our customers, they are managing the business effectively and progressing on the execution of our strategy.

Given the level of disruption we've seen in the environment since the pandemic began, we set 5 priorities to guide our decision-making, and I would like to give you an update on the progress on each one of them.

1. Support our associates

In addition to providing the necessary protective equipment so that they can do their work safely, to show our appreciation:

• • More than 23,000 associates in vulnerable conditions, were granted permission to be absent with pay;

• • We granted special bonuses in the second and fourth quarters for associates in stores, clubs and distribution centers;

• • We changed the payment frequency of their salary from biweekly to weekly, so that associates can have a quicker access to their income;

• • We provided transportation allowance to distribution centers with difficult access;

• • We extended a discount to all associates to buy everyday needs in stores and online and;

• • We enabled a medical phone line to support the health and well-being of our associates and their families.

These measures remain in place and we are constantly looking for ways to continue to support them, so that they can take care of themselves and of our customers.

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Wal-Mart de México, S.A.B. de C.V.

Consolidated

Ticker:

WALMEX

Quarter:

Year:

2020

2. Serve our customers

We transformed our stores and the way we operate to serve our customers in the safest and most hygienic way possible. From installing protection glasses at the checkouts and marking safe distance in high traffic areas, to providing dedicated delivery and pickup slots to customers in vulnerable conditions; we have been adapting to their habits and the conditions of the environment, always following the guidelines of the authorities.

We have kept our supply chain operating at full speed, to be able to offer everything our customers are looking for.

In addition, we have further reinforced our EDLP proposition, keeping the lowest prices on more than 300 items in the "Los Esenciales" program.

Our customers have appreciated this effort and rewarded us with their preference.

3. Help each other, including:

• o the communities we serve,

• o our suppliers who have always been our great allies,

• o the tenants who lease space in our stores, and

• o federal, state, and local authorities.

We have responded in different ways to the needs of each one of them.

We donated $130 million pesos to fund the COVID-19 temporary center, which provides medical care to patients in the healthcare system in Mexico City.

In collaboration with other organizations, we supported more than 45,000 people affected by COVID-19, donating $33 million pesos through a gift card program.

We also donated 250 tons of food to more than 22,800 seniors.

We know it has been a difficult time for our small suppliers too, so we decided to support them by

• • reducing payment terms to 7 days,

• • expanding our factoring program and,

• • offering a digital training program designed for micro and small business who have been affected by contingency and who need support to understand the digital world as an alternative to address the crisis.

We also waived rent for our small tenants and worked with them to hire to their employees during peak demand.

4. Manage the short term effectively, financially, and operationally, this includes our cash and inventory position.

5. To continue to implement our strategy even amid the crisis.

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Wal-Mart de México, S.A.B. de C.V.

Consolidated

Ticker:

WALMEX

Quarter:

Year:

2020

2020, an unprecedented year, in every respect. A year that certainly set the before and after of several industries, including ours.

The pandemic changed the way our customers shop and interact with us; it generated structural changes in retail and an acceleration of digital adoption in several areas: from online shopping to payments and paperwork.

We are fortunate to operate a business that allowed us to be even closer to our customers and to learn from them every day.

We've evolved significantly, from a store-based business to an omni-business, and now it is time to optimize performance and create a winning omni-led ecosystem in Mexico.

Disclosure of nature of business [text block]

Walmart de México y Centroamérica is one of the leader retail chains in the region.

As of December 31, 2020, it operates 3,489 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 WALMEX.

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