Wal Mart de Mexico B de C : Results 1Q21 to the MSE

Wal-Mart de México, S.A.B. de C.V.	Consolidated
Ticker:	WALMEX	Quarter: 1 Year: 2021

Quarterly Financial Information

[105000]	Management commentary..................................................................................................................................	2
[110000]	General information about financial statements ...........................................................................................	16
[210000]	Statement of financial position, current/non-current.....................................................................................	19
[310000]	Statement of comprehensive income, profit or loss, by function of expense ...........................................	21
[410000]	Statement of comprehensive income, OCI components presented net of tax.........................................	22
[520000]	Statement of cash flows, indirect method ......................................................................................................	24
[610000]	Statement of changes in equity - Accumulated Current ..............................................................................	26
[610000]	Statement of changes in equity - Accumulated Previous ............................................................................	29
[700000]	Informative data about the Statement of financial position .........................................................................	32
[700002]	Informative data about the Income statement...............................................................................................	33
[700003]	Informative data - Income statement for 12 months.....................................................................................	34
[800001]	Breakdown of credits.........................................................................................................................................	35
[800003]	Annex - Monetary foreign currency position..................................................................................................	37
[800005]	Annex - Distribution of income by product .....................................................................................................	38
[800007]	Annex - Financial derivate instruments ..........................................................................................................	39
[800100]	Notes - Subclassifications of assets, liabilities and equities .......................................................................	45
[800200]	Notes - Analysis of income and expense.......................................................................................................	49
[800500]	Notes - List of notes ..........................................................................................................................................	50
[800600]	Notes - List of accounting policies ..................................................................................................................	91
[813000]	Notes - Interim financial reporting .................................................................................................................	114

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Wal-Mart de México, S.A.B. de C.V.	Consolidated
Ticker:	WALMEX	Quarter: 1 Year: 2021

[105000] Management commentary

Management commentary [text block]

Our hearts are with all of those affected by the pandemic . The beginning of the year was particularly difficult for the countries in which we operate, as cases, hospitalizations and deaths increased after the holidays.

Today, we are in a better situation, yet we can't let down our guard . Our priorities remain consistent:

The first one is, to support our associates. We are very proud of each one of them, and we have tried to show them our respect and gratitude with our words and our actions.

During February, we decided to increase the discount we granted to all associates to shop online or at the stores from 6% to 10%.

Besides keeping all the health and safety measurements in place in our stores, DCs and offices, we are evolving our business model to serve our customers how they want to be served, by expanding our omnichannel capacity and developing new solutions beyond retail .

We are also doing our best to help our communities, suppliers and business partners.

We decided to turn the temporary financing program we implemented last year for micro and small suppliers into a permanent program . We will continue to work hand in hand with all our suppliers and business partners to deliver our value proposition for our customers.

We take a multi- stakeholder view because we know that mindset and approach delivers the most valuable, sustainable business over time.

By January of this year, we removed plastic bags from 100% of our stores, showing our commitment with sustainability .

We were included in the Bloomberg Gender - Equality Index for the fourth consecutive year as, the only self - service retailer in Mexico who is part of the index.

We ranked first place on Merco's survey as the company with the best response during the pandemic.

We will continue to focus on creating trust and shared value for our stakeholders; using our strengths to help people live better and preserve the planet.

Before finalizing, I would like to mention that we have been preparing our company to fully comply with the recent amendments to the Federal Labor Law and other labor, tax and social security laws and we can confirm we will be ready to adopt them .

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Wal-Mart de México, S.A.B. de C.V.	Consolidated
Ticker:	WALMEX	Quarter: 1 Year: 2021

The implementation of these amendments does not change our financial expectations for the year or our ability to delive r our strategic plans.

Our associates are our greatest strength and a key enabler for our strategy . We want Walmart to continue to be that place where they can be themselves, where they can learn, grow and have fun.

Disclosure of nature of business [text block]

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

As of March 31, 2021, it operates 3,513 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 .

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Wal-Mart de México, S.A.B. de C.V.	Consolidated
Ticker:	WALMEX	Quarter: 1 Year: 2021

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

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Wal-Mart de México, S.A.B. de C.V.	Consolidated
Ticker:	WALMEX	Quarter: 1 Year: 2021

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

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 important are described below:

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 imported goods.

1. . 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 facto rs affecting the Company's market share could be the business expansion of its competitors and the possible entrance of new competitors into the market.

1. . 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 and salaries.

IV. Changes in government regulations. The Company is exposed to the changes in different laws and regulations, which, after becoming effective, could affect the Company's operating results, such as an impact on sales, expenses for payroll indirect taxes and changes in applicable rates. Currently, the level of scrutiny and discretion by the tax authorities has greatly increased. Mexican legal courts hav e changed their position favoring the authorities and ignoring violations of form and procedure.

V. Recent developments. The COVID -19 pandemic has resulted in widespread and ongoing impacts on the local and international economy, on our associates, suppliers, customers, and other individuals and entities with whom we do business. There is considerable uncertainty regarding the extent to which COVID - 19 will continue to spread and the scope and duration of measures to try to contain the virus, such as travel ban s and restrictions, quarantines, government closures and other restrictions on the mobility of people.

Other uncertainty factors include, but are not limited to: additional outbreaks or spikes in the number of COVID - 19 cases, future mutations or related st rains of the virus in the areas in which we operate; the availability and prevalence of access to effective medical treatments and vaccines for COVID -19; the pace of economic recovery when the pandemic subsides; and the long- term impact of the COVID - 19 pandemic on our business, including changing consumer behavior. These risks and their impacts are difficult to predict and could adversely affect our operations and our financial performance.

As of the date of this report, the financial effect of the combinat ion of these events has not had a significant adverse impact on the financial statements taken as a whole.

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