wal-mart de mexico

responsibilitysocial

2005 report

WAL-MART DE MEXICO 2005

The mission upholding our Company’spermanence and success is value creation. All our efforts, strategies andactions are aimed at this objective.

contentsMessage from the President and CEO page 1

Our Company Profile 2

Sustainable Development Strategy 4

Economic Performance 6

Environmental Performance page 8

Social Performance

Our People 10

Our Suppliers 12

Our Communities 14

Our Basic BeliefsOur vision

The vision of our Company

summarizes our commitment to

Mexico: “Contribute towards

improving the quality of life for

Mexican families.”

Respect for the Individual,

Service to Our Customer, and

Strive for Excellence, with

Integrity being the underlying

principle.

1

During this year, we realized our vision ofcontributing towards improving the quality of lifefor Mexican families by generating developmentopportunities for our Associates, by creatingalliances with our suppliers, and by conductingenvironment-friendly operations and programs thathave a positive impact in our communities.

I reiterate our commitment to improve ouroperation every day, supervise our actions andcreatively drive the sustainable development of ourcountry.

During 2005, we continued harvesting the fruitsof success thanks to the great dedication andperseverance of all our Associates. This can beseen in the fact that we accomplished asignificant expansion, we have been honored forthe fifth consecutive year as a SociallyResponsible Corporation and were named the thirdmost admired company in Mexico, the mostadmired in the retail industry and the largestprivate company in Latin America.

I am proud to say that the good performance ofour Company, the results we have achieved withregards to corporate ethics, the commitment to our Associates, the development ofcommunities and environmental protectionpractices have been possible thanks to our people,our committed Associates who are exceptionalagents of change.

The cornerstone of our commitment to Mexico isour culture, which is also based on the integrity thatgoverns our actions and allows us to supervise theethical performance of the Company. Our culture isbased on our basic beliefs, namely, respect, serviceand excellence, which foster a work environmentwhere there is commitment, continuousimprovement and collaboration with others.

To all the readers,

It is with great satisfaction that we onceagain open the doors of our Company topresent the second Corporate SocialResponsibility report and to share ourBasic Beliefs with all of you, as well asthe actions that embody ourcommitment to Mexico.

Eduardo SolorzanoPresident and Chief Executive Officer

2005we continued harvestingthe fruits of success

2 WAL-MART DE MEXICO 2005

VipsRestaurant chains known for their service,quality, price and location. This divisionincludes Vips and El Porton restaurants,which specializes in Mexican cuisine.

Sam’s ClubMembership wholesale outlets targetingbusinesses and consumers who buy largevolumes.

Self-service

Apparel

RestaurantsSuperamaSupermarkets located in residential areas,with special emphasis made on quality andconvenience.

Bodega AurreraAustere discount stores offering staplegoods, food and household items.

Our multi-format business includes self-service stores, apparel stores, wholesalemembership clubs and restaurants.

Wal-Mart SupercenterSupercenters providing the widestmerchandise assortment, from groceriesand fresh to apparel and generalmerchandise

SuburbiaApparel stores aimed at middle-incomefamilies, providing quality and fashion atthe best price.

Our business formats

Our Company Profile We offer service, quality,price and a wide array ofoptions for our customers

income level

Business

High

Medium

Low Bo

deg

aA

urre

ra

Wal

-Mar

tS

uper

cent

er

Sup

eram

a

Sam

’s C

lub

Sub

urb

ia Vip

s

eating out

Wholesale Membership Clubs

home consumption

3

Wal-Mart de Mexico isone of the mostimportant retail chains inMexico.

By the end of 2005, weoperated 783 retail unitsthroughout 103 citiesnationwide, includingself-service stores,membership wholesaleclubs, apparel stores,and restaurants.

783total units by the endof 2005

• Cities withWal-Mart de Mexico presence

geographical coverage

Corporate Governance

In Wal-Mart de Mexico, integrity is thefoundation of our corporate culture, whichwe practice through our three basic beliefs:Respect for the Individual, Service to ourCustomers and Strive for Excellence.

Our culture underlies our CorporateGovernance as it promotes transparency,timely presentation of information to ourshareholders and ethical companymanagement, which in turn contributetowards increasing the value of theCompany and the benefits for all ourcustomers, members, shareholders,Associates, suppliers and communities.

To consolidate our Company as an honestorganization with a solid set of corporateethic practices, we develop and every dayinstill a culture of compliance with beliefs,laws, standards and policies.

The basic actions to ensure compliancerevolve around the following:

• Keep our Associates informed on thelaws, policies and procedures we mustfollow.

• Provide them with the necessary tools toensure their behavior abides by Wal-Martculture and compliance standards.

• Allow them to express their concernsand provide them with independentchannels other than their supervisors,until they receive an appropriate answer.

• Monitor compliance through ourCorporate Governance entities andcompany transaction audits.

• Addressing any potentially irregularsituation that might affect the Company’sintegrity, finances and equity.

Through our Statement of Ethics andCompliance program we ensure thatintegrity is not only a belief, but also that itbecomes part of our corporate identity, aregular and general practice. This year, weissued a general Statement of Ethics thatsets ethical guidelines to be observed in

each and every transaction performed bythe Company nationwide. This Statement ofEthics is compulsory and should beunderstood and signed by each and everyAssociate.

We are convinced that doing what is rightalways, being honest and obeying the lawgives us a competitive advantage, allows usto fuel and make our business formats growin Mexico, and be proactive in building abetter country.

4 WAL-MART DE MEXICO 2005

Through our dailyoperations and growth,we create permanentjobs, and give ourAssociates and suppliersthe opportunity to grow.

1,380new Mexicansuppliers in 2005

8.4million dollars invested in 45 Waste Water Treatment Plantsduring 2005.

SustainableDevelopment Strategy

The vision of sustainable growth for our Company isrooted in realizing our vision of Contribute towardsimproving the quality of life for Mexican familiesthrough opportunities and tools that foster growthamong our Associates, suppliers and thecommunities where we operate.

We offer a wide variety of products at low prices,which positively impact the household income in thevarious locations where we are present.

The vision of sustainable growth is also applied tothe design and operation of our business units byreducing water and energy use, minimizing noiseand efficiently managing waste produced by ouroperations.

5

CustomersOffer the right merchandise assortment,in the right amount, and at the right timeat Everyday Low Prices, Always

Commitments• We work to obtain efficiencies and generate savings that we pass on to our customers

through Every Day Low Prices.• In order to benefit our customers and together with our suppliers, we look for ways to

reduce costs throughout the entire supply chain, starting with item production, to itsfinal display in our stores.

• We ensure and improve the quality of our service to provide the best possible shopping experience.

AssociatesHonor our commitment to makeeveryday Wal-Mart de Mexico the bestplace to work

• We have a sound organizational culture (Integrity, Respect for the Individual, Service toOur Customers, and Strive for Excellence).

• Personal and professional development for our people is a priority, as well as providing job security for them and economic stability for their families through ourcontinuous growth as a company and the diversity of our operations.

• We have created programs to improve the quality of life for our Associates, promotegender equality, and benefit the Associates as well as their families.

• We provide development opportunities to suppliers through our constant growth.• Through our Regional Trade Fairs we develop local suppliers as a means of providing

additional support for small and medium enterprises.• We have created areas of development for the textile and garment-making industry, the

production chain for perishables, and new regional products.• Our information systems help suppliers to plan production and buy of raw materials,

thereby creating greater operations efficiencies and market competitiveness.

CommunitiesWith the participation of our Associateswe create and foster programs thatpromote development and improve thequality of life for all families throughoutMexico

• Through our programs and our on-going support of organizations, we contributetowards generating sustainable changes and creating solutions for malnutrition andfood safety issues throughout the country.

• We encourage the committed participation of our Associates in social assistance programs.• We convert community actions into local commitment, allowing each business unit of

our Company to become an agent of change.• We provide direct financial assistance to support high impact projects regarding

nutrition for communities in need.

EnvironmentEnvironment-friendly and responsibleoperations

• We plan, design and build all our new units with innovative practices andenvironment-friendly technologies.

• In our units we have water treatment plants and equipment requiring little or no water use.

• We separate garbage, have refrigerated chambers to preserve organic waste, and weinstill the practice of recycling.

• We limit the consumption of electric energy by using energy-efficient lighting systemsand refrigeration equipment.

ShareholdersLook after and grow the equity we havebeen entrusted with, observing thehighest standards of integrity and theCorporate Governance best practices

• We foster transparency, timely presentation of information to our shareholders andethical company management, which in turn contributes towards increasing the valueof the Company, all within a control environment and with Corporate Governance bestpractices.

• Through our Statement of Ethics and Compliance program, we ensure that Integrity isan ever-present and global principle.

• We develop and every day instill a culture of compliance with beliefs, laws, standardsand policies.

SuppliersSupport their development, growth andconsolidation

Wal-Mart de Mexico and its stakeholders

Actions

6 WAL-MART DE MEXICO 2005

Economic Impact Even if we were not to take into account the directand indirect jobs created during the construction andoperation of each new store, the customer count andthe commercial dynamics generated by these twoactivities alone, favor the appearance of smallcommercial establishments. The products andservices these establishments offer complement ourself-service stores.

As for consumer spending, Mexican purchasingpower for durable goods has increased thanks toconsumer credits. These have become a driving forcefor the country’s economic activity in light of havingposted double-digit growth figures in the last fewyears.

Wal-Mart de Mexico, through our Wal-Mart andSuburbia credit cards and Compra Facil program, is making credit accessible to people with a monthlyincome of as little as $ 200 dollars and who do nothave any prior credit history.

We will continue working to develop and expandcredit as a vehicle for economic growth, and tomake it possible for more families to improve theirstandards of living with the purchase of durablegoods.

Every Day Low PricesThrough our philosophy of Every Day Low Priceswe have helped meet the needs of Mexicanfamilies at the lowest possible price.

This year, Mexico reached the lowest inflation levelsince the National Consumer Price Index (INPC)started to be calculated, namely 1969. This is ahistorical achievement for our country, and webelieve that our permanent philosophy of EveryDay Low Prices has contributed to making thispossible.

This is how we have helped to strengthen thepurchasing power of millions of Mexican families,which has led to 742 million customers favoring uswith their trust and preference throughout this year.

In the last six years,we have createdmore than

new direct jobs

Economic Performance

With our units we fosterthe growth of:• Banks• Car dealerships• Candy stores• Shoe stores• Taxi stands• Dry cleaners• Ice-cream parlors• Fast food establishments• Lottery ticket stands• Newspaper stands• Movie theaters• Restaurants• Gas stations, among others.

53,000

Note: The financial data in this report has been derived by converting pesos of constant purchasing power as of December 31, 2005 into dollars at the exchange rate of 10.635 pesos to 1.00 dollar prevailing on the same date.

7

Investment and Job CreationThroughout the year, we invested to open 95 newunits and expanded our geographic coverage to29 new cities, 18 of which had no prior presenceof any other self-service chain.

This investment exceeded $ 752 million dollars andrepresented approximately 4.5% of the total DirectForeign Investment in Mexico for the year.

It is worthwhile to highlight that one hundredpercent of these resources were financed withresources generated by our own operations. As amatter of fact, in the last six years we havereinvested our earnings in our own growth, whichhas made it possible, year after year, to offerassortment and low prices to an ever growingnumber of communities.

One of the most positive effects of our growth isthe creation of jobs. In the last six years we havemore than doubled the number of permanent jobsin the Company, that is, we have created more

than 53,000 newsources of directpermanent jobs; hence,to date there are124,295 Associates inthe Company.

Additionally, for eachstore we open, close to175 indirect jobs are createdin various fields related to theconstruction industry. This meansthat during 2005, we indirectly helpedgenerate approximately 16,300 jobs.

In general terms, self-service chains have a multiplying effecton the economy of the communities where they operate because theybecome centers for development.

742 million customers favoredus with their trust andpreference.

15,455

13,589

12,293

11,244

04030201

Net salesmillions of dollars

2005

9,946

1,152

926

754

671

04030201

Operating incomemillions of dollars

2005

575

1,445

1,180

990

884

04030201

EBITDAmillions of dollars

2005

764

890

761

558526

04030201

Net incomemillions of dollars

2005

471

124,295

109,057

99,881

92,708

04030201

Number of Associates

2005

84,607

783

694

641

595

04030201

Number of units

2005

550

Financial Highlights

8 WAL-MART DE MEXICO 2005

Moreover, we collect rainwater and return it to thesubsoil through seepage wells to recharge groundwater levels.

Waste RecyclingWe have refrigerated chambers to conserve organicwaste, which has been previously separated andsorted in our units. Additionally, we develop ongoingtraining programs and give information to Associatesregarding waste control and management of thingsthat can pollute the environment. We also give specialtreatment to hazardous waste and substancesgenerated in our operation such as used mineral oil,batteries, etc., making sure they are disposed ofproperly.

We have instilled a culture of recycling by inviting ourAssociates, customers and members to participate inPet and Multilayer-container recycling campaigns.During 2005, some 18,127 kilograms of Multilayercontainers were collected in 19 of our business units,and 8,469 kilograms of Pet containers were collectedin 24. On the other hand, we participated in the trash

The responsibility we have as a Company to takecare of the environment starts in the planning anddesign stage of each of our units, and continueswith waste management and the maintenanceneeded for every one of our units. This responsibilitycan be witnessed in the behavior and awareness ofour Associates regarding the use of all naturalresources.

Furthermore, we have designed facades that are inline with the store surroundings, and also organizeevents to reforest parks and take care of publicareas. These activities allow us to strengthen theenvironmental conscience of our Associates andtheir families.

Water ConservationOur units recycle water. We have wastewatertreatment plants in 117 of our business units andequipment requiring little or no water use.Additionally, we test new technologies such aswaterless urinals, allowing us to save millions ofliters of water daily, both in stores and in offices.

117of our business unitshave a watertreatment plant

Environmental Performance

Our store operations are notnatural resource intensive;however, we develop practicesand new technologies thatgenerate significant savingsthanks to the large number ofunits and the awareness of ourAssociates.

9

In addition to separatingorganic waste, we separaterecyclable waste such asplastic, glass, paper, cardboardand aluminum.

and monitor energy use in our stores, and a moreefficient refrigeration equipment that stronglyimpacts energy savings.

Environmental ProtectionIn order to contribute towards improving theenvironment, we organized volunteer brigades toreforest woodlands, take care of parks, sidewalksand esplanades. A clear example is the NationalWal-Mart de Mexico Volunteer Week, whichencourages our Associates and their families toparticipate. During 2005, there were 9,888volunteers who participated in activities, such asplanting 15,448 trees, aimed at improving theenvironment.

When new stores are designed, green areas areincluded so as to grow a significant amount of treespecies that are native to the region.

separation campaign by printing 857 million bagscontaining the information necessary to efficientlyseparate trash, which we then distributed among ourself-service customers.

Energy ConsumptionThe reduction of energy consumption depends oneach and every Wal-Mart de Mexico Associate andthe efficiency of our daily operations. Our strategyaims at implementing new technologies and raisingawareness regarding efficient energy use in ouroffices, business units and distribution centers.

With all these purposes in mind, we produceand drive programs that motivate and recognizeareas or individuals in our Company whocontribute with new ideas to improve the rationaluse of resources, increase efficiency and exceedexpectations, as well as programs that moreefficiently communicate the same.

We use a highly efficient lighting system that useslittle energy, computerized equipment to control

The biggest challenge our Company faces is to improve the way weoperate all Wal-Mart de Mexico business formats and create an attitude of respect for the environment in each and every Associateand their communities.

During 2005, 9,888 volunteerAssociates participated inactivities to improve theenvironment.

We collected 4,978Christmas trees.

377,341

264,855

0403

Use of recycled waterm3

2005

72,720

10 WAL-MART DE MEXICO 2005

The opportunities offered by the Company, as wellas its concern for the well-being and developmentof our Associates, serve to create loyalty andstrengthen the spirit of solidarity and generosity.This solidarity can be seen in the commitment ofour Associates and their families to communitywork, and how readily they lend a hand to theirfellow Associates during times of need, furthercreating a sense of pride and ownership regardingthe Company.

Our constant expansion into different locations,including those with little infrastructure and scarcejob opportunities, has a multiplying effect for thelocal inhabitants by opening the door to a largenumber of people, offering new jobs thatundoubtedly contribute towards the development of their communities and improve the householdincome for those who join the Company.

The responsibility Wal-Mart de Mexico assumes inguaranteeing safe working conditions leads to thecreation of on-going programs aimed at reducing

Our organizational culture is the firmest platformwe have. Based on Integrity and practiced eachday through our basic beliefs –Respect for theIndividual, Service to Our Customer, and the Strivefor Excellence– our culture is what binds ustogether as one great family and it supports themanner in which we achieve our results. All124,295 of us who are part of Wal-Mart de Mexicoare committed to practicing these beliefs toexceed the expectations of our customers andmembers, as well as laying the groundwork formaking our Company an increasingly better placeto work everyday.

The on-going expansion of our Company and thediversity of its operations serve to drive theprofessional and personal development of ourpeople, placing special emphasis on acquiring newskills, and helping them to grow within Wal-Mart.Some 101,119 Associates received classroomtraining throughout the year and 16,118 werepromoted. All of this translates to job security forthem and economic stability for their families.

16,118Associates werepromoted

Our people

Social Performance

Assistance afterHurricane WilmaFloriberta Sanchez, Maintenance Associate, SAM’SPlaya del Carmen“I am grateful to the Company ingeneral for helping and caringabout us. For example, myhusband received no assistancefrom his job. His company didn’tworry about him. With what Wal-Mart gave me, we arerebuilding our house andreplacing what was ruinedduring the hurricane.”

Assistance after Hurricane StanNoel de la Rosa, Team Leader Meat Dept.SAM’S Tapachula “I lost everything, and I receivedeconomic assistance as well asstaple goods from the Company,which was of great help. Whatreally boosted our spirits wasthe moral support of still havinga job. I am at ease because Iknow that I have the support ofsuch a great company asWal-Mart, and there is no doubtthat I feel like a member of thisgreat family.”

49% of our Associates arewomen.

Some 255 Associates withdifferent challenges currentlywork in our Company.

11

An example of developmentErendira Peña, Vips DistrictManager, joined the Companyat 19, on March 23, 1991.“The 180-degree change in mylife, from what it was 13 yearsago to what it is today, hasbeen incredible. I think what Ihave been able to accomplishis thanks to what I have beentaught here, what others, mybosses, my workmates havegiven me, and of course, theexperience I have acquired.”

1991 Sales person,Vips Satelite

1993 Floor Manager,Vips Satelite

1995 Assistant Manager,Vips Tlanepantla

1996 Manager at Vips Atizapan,Vallejo, Echegaray, Lilas,Cuajimalpa,Tecamachalco, Legaria,Aguascalientes andGuadalajara

2004 District Manager,a position she presentlyholds

unique manner in which Wal-Mart de Mexicorecognizes the excellent performance of its people.

Each one of us who is a part of our Companybuilds our work environment on a daily basis. At an institutional level we highlight the policy offostering activities that improve the quality of life of our Associates, equal opportunities for men andwomen alike, and benefit programs for which ourfamilies are also eligible.

49% of our Associates are women.

Some 255 Associates with different challengescurrently work in our Company.

Moreover, we promote open and frankcommunication. Our Open-Door policy ensurescompliance with our policies, the protection ofhuman rights and a positive, challenging and fairatmosphere.

accident rates. For example, in 2005 we were ableto reduce the number of accidents companywide by10%. In 2006 we shall continue with our plan offostering a culture of prevention and safety amongour people.

Wal-Mart de Mexico is a constantly changingcompany, which favors the ongoing learningexperience for our Associates. It is with great pridethat we witness the excellent performance of ourpeople, always working towards continuousimprovement, which in the end leads to personalsuccess stories and sound results for the Company.

Wal-Mart de Mexico rewards the commitment of its Associates through a fringe benefit plan that surpasses the requirements set forth underthe Federal Labor Act, as is the case of theStakeholder Bonus, which is given to those whoexceed the forecasted Business Plan. In 2003,57% of our operating units were paid this bonus;in 2005, the figure rose to 74%. The Bonus is inaddition to Employee Profit Sharing, and is the

The most important asset for our Company is our people; with theirbehavior they are the ones who build an honest company, and who withtheir efforts and work have made Wal-Mart de Mexico what it is today.

We achieved a 35%reduction in the accident

rate at our DistributionCenters.

4’127,687man-hours of training

101,119 Associatesreceived classroom training112,183 Associatesaccessed computer-based learning

12 WAL-MART DE MEXICO 2005

We support our growth and that of our suppliers byinvesting in technology and infrastructure such asthe logistics network so as to enhance supply, bycreating specific areas that search for new andinnovative products, and by developing suppliersfor local, domestic and international markets.

Specific initiatives such as the Regional Trade Fairsthat are meant to assist local producers, haveproven to be a key tool for our Company’s desireto promote suppliers by driving the growth of smalland medium-sized producers in the states whereWal-Mart de Mexico operates. A Regional TradeFair is a priceless opportunity to learn from ourCompany’s operation process and test productson the market. Through areas that provideassistance, we support supplier productionefficiency, cost reduction, design, packaging andlabeling, among other factors.

Our expansion allows us to take our suppliers tonew communities, thereby generating the need tosearch for increased efficiency, improved production

Our Company provides the entryway for products tonew markets, creates different viable businesspossibilities through growth that benefits economicdevelopment, and drives employment forcommunities throughout Mexico.

Moreover, we identified and developed synergiesbetween the nation’s different producers andgovernment authorities so as to obtain financialsupport, and so the different fields of productioncould be in the ideal position to consistently providequality products through the company’s domesticand international networks.

The growth of our suppliers favors the developmentof a large diversity of quality products, thus drivingthe development of Mexico through the growth ofthe supply chain. Our information systems helpsuppliers to plan production, buy raw materials,schedule promotional events, etc., thereby creatinggreater operational efficiencies and marketcompetitiveness.

8 Regional Trade Fairs helped to include

items from 96 localsuppliers

Our suppliers

We promoted $ 968 milliondollars in public financing formicro, small and medium-sizedcompanies.

Social Performance

487

13

Each one of these initiatives is a source of greatpride and satisfaction because it allows us to driveour country’s labor force and leverage the potentialthat our own business has to generate value chains,which in turn support the development of Mexico’sproducers and that of our country as well.

planning, and greater access to better financing dueto the stability the Company offers them.

The relationship suppliers enjoy with our Companyalso demands a constant search for means tomodernize their production, invoicing and logisticssystems, that in turn support greater efficiency for thesupply chain in Mexico. As a result, our Companyhas created areas of development for the textile andgarment-making industry, the production chain forperishables, and new regional products.

The support given to produce growers, the mostvulnerable sector of the nation’s economy, is aninitiative that promotes self-sufficiency andindependence for groups of producers.

We identify producers, generate action plans toinclude their products in our chain, and providesupport for planning and efficient production andreal sale opportunities. In this manner, we cantransfer market benefits and medium and long-termgrowth potential directly to the producer.

Our commitment to the development of Mexico can be witnessedin all our operating units, where a variety of products from small andmedium-sized Mexican companies can be found.

Wal-Mart de Mexico currentlypurchases 20% of a singlestrawberry producer’s volume,from Zamora, Michoacan,without the use of brokers,which affords him the benefit ofnot putting his production atrisk.

By leveraging the Company’spotential, we support localproduce growers, and in turnassist Mexico in its development.

Avocado was an ever presentfeature during the Michoacansuppliers’ fair.

14 WAL-MART DE MEXICO 2005

processes that ensure the use of the 9,734 tons ofproducts donated during 2005 in a more expediteand cost-effective manner.

The Matching Fund CampaignIn order to favor the participation of our customersand members, we launched matching fundcampaigns such as “Challenge 2005”, which hadthe participation of 221 stores, clubs andrestaurants located in 7 states throughout Mexico,thereby benefiting 9 not-for-profit localorganizations.

Nutrition Program SupportWe contributed monetary donations to supportnutrition-related projects. This year, we selected 23projects in 17 states nationwide. Among theseprojects are the financing for 232 backyardgardens and farms, latrines, infrastructure for foodbanks or dining areas, nutrition training, arainwater treatment plant, etc.

Food Bank“We at Alimento para Todos,I.A.P consider the support ofthe Wal-Mart de MexicoFoundation to be priceless.”

“The strength of ourrelationship began in 1997,with the joint pilot program tocollect donations at fourself-service stores…”

“Thank you Wal-Mart deMexico Foundation for yourcommitment, trust, sensitivity,patience, devotion and supportfor all the Food Banks, andespecially for Alimento paraTodos. You are an essentialpart of this important project,and having you as one of ourprincipal donors fills us withendless gratitude for all yoursupport.”

Throughout the years, our Company has been veryactively involved with the community. The primarycharacteristic of our community work has been toconvert our support into a local commitment,allowing each business unit of our Company tobecome an agent of change, to detect priorityproblems and opportunities in its community, andto involve its Associates and customers.

The approach to development in our communitieslies in fostering the committed participation of ourAssociates in social assistance programs, togetherwith building and supporting the programs of not-for-profit organizations that develop needycommunities, with the purpose of being a part of thesolution to problems regarding health and foodsafety in Mexico.

In-Kind DonationsWe are innovative and creative in our quest toimprove the in-kind donation processes at each ofour stores, clubs and distribution centers, fosteringquality donations and increasingly efficient

9,734

Our communities

In 2005, we made in-kind donations of

tons of productsnationwide

Social Performance

15

income from thesale of these products to

the aforementioned communities, as well as theprofits generated.

Today we are designing a work program for theMazahua and Tarahumara communities in thehopes that the results of this initial phase willmultiply into long-term benefits.

The Victims of Hurricanes Stan and WilmaIn situations of disaster our Company puts itscapacity for response, organization and motivationto the test. Year after year we have worked onimproving our actions thanks to a multi-disciplinarygroup from different areas of the Company that is charged with said response. In 2005, weproved that the strength we possess as a Company –thanks to our Associates, our presence nationwide, the trust of ourcustomers, and our logistics network– canproduce outstanding results.

Food Safety Program “Giving is Also an Art”When witnessing the malnutrition experienced bychildren and trying to understand how differenttheir reality is living in a place that has historicallyfaced conditions of extreme poverty, leads us tothink of ways to generate development, and with ithelp them to build a different and brighter future.

With this purpose in mind, our Wal-Mart de MexicoFoundation focuses its efforts on health bypromoting food safety, addressing malnutrition inrural communities and improving poor eatinghabits in urban areas, which together are situationsthat have led to the alarming rates of childmalnutrition and obesity in our country.

Given these conditions, in August 2005 we launchedthe “Giving is Also an Art” program to provideindigenous communities (Mazahua and Tarahumara)with the opportunity to offer their handcrafts to ourcustomers through the use of our logistics networkand 101 of our stores. During the launch phase, webenefited 1,315 artisans, returning 100% of the

The Wal-Mart de Mexico Foundation was created in March 2003 with thepurpose of contributing towards the development of our communities.Today we are experiencing its growth and development and are thereforeproud to display the fruits of a year of commitment and growth.

Stan and Wilma Hurricane ReliefWe channeled 1,114 tons ofmerchandise for the victims inthe states of Chiapas, Oaxaca,Quintana Roo and Veracruzthrough the use of our logisticsnetwork.

We thank our customers andmembers for their trust andparticipation in our 455 reliefcenters nationwide.

In 2005, the “Giving is Also anArt” program benefited 1,315artisans and their families.

A Mazahua woman with sevenchildren used to walk 2 hourseach day to reach a well withwater.

In the village of La Soledad,located in the municipality ofSan Felipe in the State ofMexico, we invested in a rainwater purification plant thatbenefits 6,000 people from theMazahua community.

16 WAL-MART DE MEXICO 2005

joined together to produce moments of joy for 79,500children and senior citizens throughout the country.

We offer congratulations to each and every one ofour Associates and their families who have made ourCompany proud through their actions, who expresswith enthusiasm the joy of giving, the desire to makea difference, and who remind us that the commitmentto Mexico belongs to all of us. We can make adifference in each place where our Companyoperates, through the fortitude and, above all, thequality of our people.

To each and every one of our Associates: We thank you a thousand times over!

Volunteer WorkVolunteer work is the fundamental principle for ourFoundation, which is why we conduct local andnational volunteer programs that allow all of us whowork in the Company the chance to involve ourselvesand our families in this effort. Throughout the year,some 13,869 Associates volunteered their time todifferent activities.

So as to give our Associates the opportunity tobecome involved, for the second consecutive year,we conducted our National Volunteer Week with theparticipation of 9,888 volunteers. The new units thatwere opened this year conducted pre-openingvolunteer activities. Moreover, we held differentmonthly activities throughout the country.

During the Christmas season, our customers,members and Associates make a special effort andgive away smiles. In 2005, we conducted PelotonGuadalajara, the “Gift of a Smile” program, and “Takea Picture with Santa”. All our stores, clubs,restaurants, Home Offices, and distribution centers

In 2005, we channeled donations that benefited 1’225,307 people, by working in alliance with 138 not-for-profit organizations.

Thanks to our volunteers wewere able to reforest parks,paint schools and not-for-profitorganization facilities, in addition to providing training and support for

nutrition-related programs.

13,869 volunteers

135,370 man-hours

1,114 activities

At Christmas, we put a smileon the faces of 79,500 childrenand senior citizens.

Our volunteersAdriana Sonia,Associate“It’s wonderful that BodegaAurrera helps and cares aboutothers. It is nice to know thatthe children and their parentswill have a clean, newly paintedkindergarten. I am proud to bea part of Bodega Aurrera.”

A Favor del Niño • Alcance Familiar • Alimento para Todos • APAC • Asociación Asistencial Doña Nico •Asociación de Superación Familiar de México • Asociación Mexicana de Bancos de Alimentos • AsociaciónMexicana de Espina Bífida • Asociación Mexicana de la Cruz Blanca Neutral • Atención Integral a la SenectudLuz de Azteca • Centro de Rehabilitación para Adictos Proyecto Ave Fénix • Ayuda y Solidaridad con las Niñasde la Calle • Banco de Alimentos de Acapulco • Banco de Alimentos de Aguascalientes • Banco de Alimentosde Campeche • Banco de Alimentos de Cancún • Banco de Alimentos de Celaya • Banco de Alimentos delCentro del Estado de Hidalgo • Banco de Alimentos de Chihuahua • Banco de Alimentos de Ciudad Guzmán •Banco de Alimentos de Ciudad Obregón • Banco de Alimentos de Ciudad Victoria • Banco de Alimentos deColima • Banco de Alimentos de Cuauhtémoc • Banco de Alimentos de Cuautitlán • Banco de Alimentos deCuernavaca • Banco de Alimentos de Culiacán • Banco de Alimentos de Durango • Banco de Alimentos deGuadalajara • Banco de Alimentos de Guanajuato • Banco de Alimentos de Hermosillo • Banco de Alimentos deLeón • Banco de Alimentos de Los Mochis • Banco de Alimentos de Matamoros • Banco de Alimentos deMazatlán • Banco de Alimentos de Mérida • Banco de Alimentos de Mexicali • Banco de Alimentos de México• Banco de Alimentos de México II • Banco de Alimentos de Monclova • Banco de Alimentos de Monterrey •Banco de Alimentos de Morelia • Banco de Alimentos de Navojoa • Banco de Alimentos de Nuevo Laredo •Banco de Alimentos de Oaxaca • Banco de Alimentos de Pachuca • Banco de Alimentos de Puebla • Banco deAlimentos de Puerto Vallarta • Banco de Alimentos de Querétaro • Banco de Alimentos de Reynosa • Banco deAlimentos de Saltillo • Banco de Alimentos de San Luis Potosí • Banco de Alimentos de Sólo por Ayudar • Bancode Alimentos de Tampico • Banco de Alimentos de Tapachula • Banco de Alimentos de Tepic • Banco deAlimentos de Tijuana • Banco de Alimentos de Toluca • Banco de Alimentos de Torreón • Banco de Alimentosde Tuxtla • Banco de Alimentos de Veracruz • Banco de Alimentos de Xalapa • Banco de Alimentos de Zacatecas• Cáritas de Monterrey • Casa Cuna de Irapuato • Casa de Cuna Oasis del Niño • Casa de la Amistad para Niñoscon Cáncer • Casa del Niño Villa de la Asunción • Casa de Santa Hipólita • Casa Hogar Dulce Refugio • CasaHogar la Buena Madre • Casa Hogar para la Joven • Casa Hogar Unidos por la Niñez • Centro Acopio para laTarahumara • Centro de Adaptación e Integración Familiar • Centro de Desarrollo Alternativo Indígena • CentroSocial Reffo • Ciudad del Niño Don Bosco • Cuidad de los Niños de Monterrey • Comunidad Rural Iorema •Corason • Cruz Roja Mexicana • Desarrollo Integral del Individuo • Ejército de Salvación • El Pobrecillo de Asís• Emmanuel del Bajío • Fondo para la Paz • Fondo Unido • Fundación Azteca • Fundación Burton Blooms •Fundación Clara Moreno y Miramón • Fundación de Protección y Asistencia para Ancianas Desvalidas •Fundación de Ayuda a la Ancianidad • Fundación de Obras Sociales de San Vicente • Fundación EDUCA •Fundación Emmanuel • Fundación León XIII • Fundación Mexicana de Apoyo Infantil • Fundación Mexicanapara el Desarrollo Rural • Fundación Mexicana para la Salud Capítulo Peninsular • Fundación Nicolás Garcíade San Vicente • Fundación Nutrición y Vida • Fundación para la Formación Integral en Busca de un MéxicoMejor • Fundación para la Protección de la Niñez • Fundación Ser Humano Internacional • FundaciónTarahumara José A. Llaguno • Fundación Vida Plena • Grupo Amigos de Niños Afectados de Cáncer • Grupopara Promover la Educación y el Desarrollo Sustentable • Grupo Reto Querétaro • Grupo VoluntarioMexicano-Alemán • Guardería San Vicente Casa Hogar • Hábitat para la Humanidad • Hogar Marillac • Hogarpara Ancianos Matías Romero • Hogares Providencia • Instituto para el Desarrollo de la Mixteca • Junior Leaguede la Ciudad de México • Junta de Asistencia Privada del Estado de México • La Casa de la Divina Providencia• Luz de Vida • Manos de Ayuda • Ministerios de Amor • Movimiento de Apoyo a Menores Abandonados •Nocaltzin • Nuestros Niños • Organismo de Nutrición Infantil • Patronato de Apoyo del Hospital General deOccidente • Patronato Pro-zona Mazahua • Promoción y Desarrollo Social • Residencia Corpus Christi 2000• Reto a la Esperanza • Sanut • San Vicente de Paul del Estado de Morelos • Sistema para el DesarrolloIntegral de la Familia del Estado de Oaxaca • Tokoneme Coatzacoalcos • Un Kilo de Ayuda • Visión Mundial

Benefited Organizations

Wal-Mart de Mexico

Home OfficeBlvd. Manuel Avila Camacho 647

Delegacion Miguel Hidalgo11220 Mexico, D.F.

Telephone (52) 55 5283-0100

Corporate AffairsRaul Argüelles

raul.arguelles@wal-mart.com(52) 55 5387-9241

Wal-Mart de Mexico Foundation Maria Gisela Noble

mmgnobl@wal-mart.com(52) 55 5283-0100 ext. 8336

www.walmartmexico.com.mx