The low prices we offer our customers are a reflection of the initiatives we implement each year to achieve greater efficiency in the execution and operation of our activities.

Productivity

Our stores have a series of projects that were developed to improve headcount management and distribution, making changes in the number of hours per activity so as to better meet demand. These projects have brought about enhanced efficiency in our units. At the store level we have accomplished improvements in several indicators. We grew 4.2% in units per labor hour, as compared to 2013; this is equivalent to more than 27 million hours in savings. Moreover, on-shelf availability increased 80 basis points more than last year.

In 2014 we simplified processes to increase productivity in Logistics, thus reducing the number of empty hauls by 16.2%, lowering our cost per case transported below national inflation levels and at the same time reducing the environmental impact of our operations. As a result, we are among the 3 companies recognized in Mexico by Semarnat –the Secretary of the Environment and Natural Resources– and by the SCT –the Secretary of Communication and Transportation– with the Clean Transportation award. We transported over 900 million cases through our distribution network, traveling more than 200 million kilometers in over 700,000 hauls.

New refrigeration and lighting technologies have been incorporated to reduce energy use in both new and existing stores. These actions resulted in approximately 42 million kWh in savings.

Different initiatives in Systems have helped to simplify internal processes; once redesigned they are automated so as to achieve operating efficiencies. The technological capacity of our Company has been renovated, with the purpose of offering enhanced services and adapting to the changes in this industry.

This year we worked on a program for equipment replacement in stores, thereby reducing the incidence of device failures by 30%, as compared to last year. The Data Centers in our home offices underwent a 20% improvement in energy efficiency.

This year we received –ISO 9001:2008– Quality Management certification from The British Standards Institution, because of the Fonacot Loan Payment Compliance. With this latest certificate, we now have ISO certifications for a total of 16 processes in the areas of Logistics, Administration and Finance, Accounting, Operational Finance, and Payroll Taxes. Since last year, 6 more processes have migrated to our Shared Services Center for Latin America, located in San José, Costa Rica. These accomplishments are in line with our commitment to have efficient and certified processes, making Walmart de México y Centroamérica an increasingly productive company.