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MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS AND FROM THE PRESIDENT AND CHIEF EXECUTIVE OFFICER

We would like to begin this message with a sincere thank you to our associates, customers, suppliers and other stakeholders.

Once again, in 2022 we proved that TOGETHER we are stronger: we continued to serve our customers and members, and our purpose of helping people save money so they can live better mattered more than ever. This was, without a doubt, a good year for us.

This year also marked the end of the extraordinary measures related to COVID-19. During this period, we prioritized taking care of our associates, customers and community, as well as our operations, while continuing to execute our strategy. Again, thanks to you all, as we know it was not easy. This pandemic period came to an end, and another one began: that of inflation. Once again, we took care of our customers and members by continuing to deliver on our commitment of Every Day Low Prices.

In Mexico, customers responded to our efforts, which was reflected in sales growth, and for the ninth consecutive year we were able to grow above the formal market as measured by ANTAD. Being sensitive to the challenging environment, we expanded our price gap by 100 basis points, in addition to substantially improving our NPS. In Central America, we maintained customer preference and loyalty and improved our self-service market share by 80 basis points. We continued to serve customers better through our win in discount initiatives, increasing our Private Brands' share in 200 basis points. In addition, we laid the groundwork for the omnichannel ecosystem and tripled the size of the online catalog; as a result, our NPS increased by 400 basis points.

In recent years we have strengthened our business strategy, as you will see in detail throughout this annual report, and we continue to focus on our three strategic pillars:

Win in discount: we are leaders in low prices, with a unique positioning thanks to our self-service stores, especially our Bodega Aurrera and Palí formats.
Lead in omnichannel:this year, our eCommerce share in total sales increased to 5.1% and our NPS increased by 470 basis points.
Ecosystem of choice: we offer solutions and generate greater value for our customers and their communities. In 2022 we had over 13 million total Bait and Cashi users combined.

We rely on four enablers to execute and leverage our strategy: Customer Centricity, Supply Chain, Technology and Data, and Best Talent. In 2022, we focused on providing good jobs and career opportunities for our associates: we created more than 6,300 new jobs, promoted more than 27,700 associates, and increased our talent with disabilities by 14%.

We have the ambition to become a Regenerative Company by 2040. This means going beyond compliance and doing the right thing to have a positive socioeconomic and environmental impact, while maintaining the highest standards of ethics and integrity – which ulitmately contributes to improving the well-being of people, communities and the planet, creating shared value for all our stakeholders.

We know we still have the opportunity to make life easier for our customers and members, so we will continue to transform, strengthen and expand our business in Mexico and Central America.

Thank you for your trust in our company!

Guilherme Loureiro
President and Chief Executive Officer
Walmart de México y Centroamérica

Judith McKenna
Chairman of the Board of Directors Walmart de México y Centroamérica
President and CEO, Walmart International