Wal mart de Mexico B de C : Results 4Q16 to the MSE

Ticker: WALMEX Quarter: 4D Year: 2016

[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 97

[813000] Notes - Interim financial reporting 110

Ticker: WALMEX Quarter: 4D Year: 2016

[105000] Management commentary

We have delivered a solid quarter - not only in terms of sales, but also growing profits faster than sales.

We are committed to maintaining our operational discipline and to investing strategically in order to position our business for the future.

On August 10 , the company announced that we had reached a definitive agreement for the sale of Suburbia to El Puerto de Liv erpool, S. A.B. de C.V. The closing of this transaction i s still subject to approval by the regulatory authorities.

The assets and l iabilities related to the sale of Suburbia are presented as assets and l iabilities held for sale in the Consolidated Stateme nts of Financial Position and the results of Suburbia operations are presented as discontinued operations in the Consolidated Income Statements.

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

As of December 31 , 2016 , i t operated 3 ,022 units, throughout 6 countries (Costa Rica, Guatemala, Honduras, El Salvador, México, and Nicaragua), including self - service stores, membership clubs, and pharma cies.

Walmart shares trade in the Mexican Stock Exchange since 1977 ; the t icker symbol i s

Ticker: WALMEX Quarter: 4D Year: 2016

The objective of the Company i s to double total sales in 10 years and to grow earning at a faster pace than sales by leveraging expenses.

Sales growth will come from:

• Same store sales

• Sales from new stores

• e Commerce

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

  The Company i s exposed to the effects of future events that could affect the purchasing power and/ or buying habits of i ts population. These events may be economic, political or social in nature and some of the most important are described below:

• .Employment and salary. Positive or negative changes in employment and/ or real salary levels could affect Mexico' s per capita income and, consequently, the Company's business performance.

• .Changes in interest rates and exchange rates. Historica l ly, Walmart has generated cash surpluses in Mexico and Central America on which i t earns financial income. A

  Ticker: WALMEX Quarter: 4D Year: 2016

  reduction in interest rates could cause a decrease in the Company' s financial income, which would affect i ts earnings growth. However, the Company believes that a reduction in interest rates would actually have a positive effect on i ts business in the medium and long- term, s ince i t would help improve the purchasing power of i ts customers.

  On the other hand, exchange rate f luctuations tend to put u pward pressure on inflation and reduce the population' s purchasing power, which could ultimately hinder the Company' s sales, in particular, due to the purchase of import 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 r i sk. Other factors affecting the Company' s market share could be the business expansion of i ts competitors and the possible entrance of new competitors into the market.

• Inflation. Over the last few years, inflation rates in Mexico and Central America have remained at low levels. A s ignificant increase in inflation rates could h ave a direct effect on the purchasing power of the Company' s customers and the demand for i ts products and services.

• Changes in government regulations. The Company i s exposed to the changes in different laws and regulations, which, after becoming effec t ive, they 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 courts have changed their position favoring those authorities ignoring violations of form and procedure.

• Recent Developments. During the last weeks, international and national events have occurred, that have increased the volatility of some economic indicators, creating an environment of vulnerability and uncertainty. Among the events, we can find the possibility of the renegotiation or termination of the North American Free Trade Agreement, possible increases in import duties or tariffs for the expor t of Mexican products, the cancelation of third- party foreign investment projects previously announced, the depreciation of the Mexican peso, the increase in the prices of gasoline, as well as violent demonstrations that have affected our stores, among