company’s shareholders and the investment financiera...Webcast 4Q15 Mexico City, February 16, 2016...
31
The date of this call is February 16, 2016. Before we start, let me remind you that this call is property of Wal-Mart de México S.A.B. de C.V. and is intended for the use of the company’s shareholders and the investment community. It should not be reproduced in any way. This call may contain certain references concerning Wal-Mart de Mexico S.A.B. de C.V.’s future performance that should be considered as good faith estimates made by the Company. These references only reflect management expectations and are based upon currently available data. Actual results are always subject to future events, risks and uncertainties, which could materially impact the Company’s actual performance. 1
Transcript of company’s shareholders and the investment financiera...Webcast 4Q15 Mexico City, February 16, 2016...
The date of this call is February 16, 2016.
Before we start, let me remind you that this call is property of
Wal-Mart de México S.A.B. de C.V. and is intended for the
use of the company’s shareholders and the investment
community. It should not be reproduced in any way.
This call may contain certain references concerning Wal-Mart
de Mexico S.A.B. de C.V.’s future performance that should be
considered as good faith estimates made by the Company.
These references only reflect management expectations and
are based upon currently available data. Actual results are
always subject to future events, risks and uncertainties, which
could materially impact the Company’s actual performance.
1
Webcast 4Q15
2
CEO Transition
3
Enrique Ostalé Guilherme Loureiro
Sales
4
Walmex: Total Sales
2015 Growth (%)
2014 Same StoreSales
New StoreSales
eCommerce 2015ConstantCurrency
CurrencyEffect
2015
Walmex Mexico eCommerce Central America Currency effect
+6.0% +2.0% +8.2% +2.8% +11.0%
+0.2%
5
Total Sales
Walmex: 4Q15 Sales Growth (%)
* On a constant currency basis.
10.2
7.0
12.8
Mexico Central America Walmex
*
6
6.4
4.7
Mexico Central America
4Q15 Growth (%)
Walmex: Same Store Sales Growth
*
* On a constant currency basis.
8.6
4.6
Mexico Central America
*
2015 Growth (%)
7
Mexico Self-Service: Same Store Sales Growth
2015 SSS Growth (%)
4.4
5.9
7.1
8.8
1Q 2Q 3Q 4Q
8
Mexico Self-Service: Growth Across Divisions
4Q15 SSS Growth (%)
8.8
7.4
10.8
9.7
Self-service Food andConsumables
GeneralMerchandise
Apparel
9
Mexico Self-Service: Outpacing the Industry
4Q15 SSS Growth (%)
4.9
8.8
ANTAD Self-service ex Walmex
Walmex Self-service
4Q15: + 390 bps
4.3
6.6
Antad Self-serviceex Walmex
Walmex Self-service
2015 SSS Growth (%)
2015: + 230 bps
10
Sam’s Club: SSS Growth (%)
-11.6
-4.6 -3.6
-2.6
6.8
4.6 4.6
7.0
-4.8
4.4
1Q 2Q 3Q 4Q
2014 2015 2 year stack
11
eCommerce
12
Contribution to
2015 total sales:
Contribution to 2015
total sales growth:
0.2%
0.8%
Central America: SSS Growth (%)
-0.2
6.2
4.8 5.5
7.7
3.2 3.6
4.6
7.5
10.1
1Q 2Q 3Q 4Q
2014 2015 2 year stack
* On a constant currency basis.
*
13
4Q15 Results
14
Walmex: One-off Effects in 4Q14
15
23.0
22.5
4Q14 4Q14 excludingone-off
Freight
capitalization
Impact in Gross
Margin:
$705 million pesos
Gross Margin EBITDA Margin
11.5
11.0
4Q14 4Q14 excludingone-off
Purchase
Accounting of
Central America
Impact in other
income:
$1,141 million pesos
10.6
9.2
4Q14 4Q14 excludingone-off
Operating Income *
* Operating income is impacted by both one-offs; EBITDA only by freight capitalization
Walmex: Price Investments & Incremental Expenses
22.1
22.5
22.1
4Q13 4Q14 exone-timers
4Q15
Gross Margin (%)
13.7
13.2
13.7
4Q13 4Q14 4Q15 exone-timers
Expenses (% to revenues)
16
Walmex: 4Q15 EBITDA Margin Walk (%)
11.5
11.0
10.1
9.6
0.5
0.4
0.5
0.5
EBITDA 4Q14 Freightcapitalization
EBITDA 4Q14ex freight
capitalization
Gross Margin Expenses(Investments)
EBITDA 4Q15before one-
timers
One-timers(expenses +
other income)
EBITDA 4Q15
17
Total revenues
Gross margin
General expenses
Other income-net
Operating income
EBITDA
Net income
Earnings before other income-net
Net income before disc. operations
Walmex: 4Q15 Consolidated Results
4Q14 % Growth
4Q15 % % $ $ (Mx$ million)
145,914
32,295
20,428
11,867
-444
11,423
13,978
8,464
8,472
100.0
22.1
14.0
8.1
-0.3
7.8
9.6
5.8
5.8
100.0
23.0
13.2
9.8
0.8
10.6
11.5
8.0
8.0
129,440
29,820
17,128
12,692
999
13,691
14,889
10,300
10,387
12.7
8.3
19.3
-6.5
-144.5
-16.6
-6.1
-17.8
-18.4 18
2015 Results
19
Walmex: 2015 EBITDA Margin Walk (%)
9.7
9.6
9.3
9.2
0.1
0.1
0.2
0.1
EBITDA 2014 One-timers EBITDA 2014ex one-timers
Gross Margin Expenses EBITDA 2015before one-
timers
One-timers(expenses +
other income)
EBITDA 2015
20
Total revenues
Gross margin
General expenses
Other income-net
Operating income
EBITDA
Net income
Earnings before other income-net
Net income before disc. operations
Walmex: 2015 Consolidated Results
2014 % Growth
2015 % % $ $ (Mx$ million)
489,367
107,380
72,235
35,145
-176
34,969
44,993
24,937
26,376
100.0
21.9
14.8
7.2
-0.0
7.1
9.2
5.1
5.4
100.0
22.1
14.5
7.6
0.3
7.9
9.7
5.7
6.9
440,988
97,619
64,010
33,609
1,107
34,716
42,854
25,041
30,426
11.0
10.0
12.8
4.6
-116.0
0.7
5.0
-0.4
-13.3 21
179,110 197,254
56,396
49,749
Walmex: Financial Strength
22
TOTAL $ 253,650
Balance sheet statement (December 31, 2015, Mx$ million)
Cash 24,791 Inventories
Assets Liabilities &
Shareholders’ equity
Fixed assets & other
Suppliers
Shareholders’ equity & other
Walmex: 2015 Cash Generation and Uses of Cash
23
28,048 24,791
50,535 3,727
12,526
31,562 1,825
11,606
CashDec 2014
FreeCash Flow
Divestitures FixedAssets
DividendPayment
ShareRepurchases
Taxes CashDec 2015
Mx$ Million
* Includes net stock option outlays
*
2016 Dividend Proposal (Pesos per share)
24
Dividend Yield
4.5 % 5.5 % 3.7e%
$0.52 $0.56 $0.56
$0.46
$1.09 $1.12 $0.40
0.19
2014 2015 2016 proposal
Extraordinary
Ordinary
Divestitures
$1.38
$1.84 $1.68
Uses of Cash: Dividends
25
40% of
2015 earnings Extraordinary Total
Apr, 2016 0.14 0.64 0.78
Aug, 2016 0.14 0.14
Nov, 2016 0.14 0.48 0.62
Feb, 2017 0.14 0.14
TOTAL 0.56 1.12 1.68
2016 dividend proposal (Mx pesos per share)
Webcast 4Q15
Mexico City, February 16, 2016
26
FCPA Please refer to our Note in the 2Q12 Financial Statements: Legal Proceedings in www.walmex.mx
Apendix
27
Total revenues
Gross margin
General expenses
Other income-net
Operating income
EBITDA
Earnings before other income-net
Mexico: 4Q15 Results
4Q14 % Growth
4Q15 % % $ $ (Mx$ million)
122,399
27,000
16,462
10,538
-310
10,228
12,296
100.0
22.1
13.4
8.6
-0.3
8.4
10.0
111,083
25,807
14,131
11,676
-137
11,539
13,492
100.0
23.2
12.7
10.5
-0.1
10.4
12.1
10.2
4.6
16.5
-9.7
-125.6
-11.4
-8.9 28
23,515
5,295
3,966
1,329
-134
1,195
1,682
100.0
22.5
16.9
5.6
-0.6
5.1
7.2
18,357
4,013
2,997
1,016
-5
1,011
1,397
100.0
21.9
16.3
5.5
-0.0
5.5
7.6
Total revenues
Gross margin
General expenses
Other income-net
Operating income
EBITDA
Earnings before other income-net
Central America: 4Q15 Results
4Q14 4Q15 % % $ $ (Mx$ million)
% Growth In peso terms
On a constant currency basis
28.1
31.9
32.3
30.7
-25.6T
18.2
20.4
7.0
10.2
10.5
9.3
-21.4T
-1.3
0.6 29 T = Times
Total revenues
Gross margin
General expenses
Other income-net
Operating income
EBITDA
Earnings before other income-net
Mexico: 2015 Results
2014 % Growth
2015 % % $ $ (Mx$ million)
410,249
89,316
58,193
31,123
-4
31,119
39,343
100.0
21.8
14.2
7.6
-0.0
7.6
9.6
378,778
83,690
52,970
30,720
-23
30,697
38,526
100.0
22.1
14.0
8.1
-0.0
8.1
10.2
8.3
6.7
9.9
1.3
-80.5
1.4
2.1 30
79,118
18,064
14,042
4,022
-172
3,850
5,650
100.0
22.8
17.7
5.1
-0.2
4.9
7.1
62,210
13,929
11,040
2,889
-11
2,878
4,328
100.0
22.4
17.7
4.6
-0.0
4.6
7.0
Total revenues
Gross margin
General expenses
Other income-net
Operating income
EBITDA
Earnings before other income-net
Central America: 2015 Results
2014 2015 % % $ $ (Mx$ million)
% Growth In peso terms
On a constant currency basis
27.2
29.7
27.2
39.2
-14.6T
33.8
30.6
7.2
9.3
7.2
17.4
-13.2T
12.8
10.1 31 T = Times
