Wal-Mart Stores, Inc. (NYSE: WMT) David Cheesewright€¦ · 12% Quarterly comp % 12-month rolling comp % FY12 Q3 FY12 Q4 FY13 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY14 Q1 FY14 Q2 FY14 Q3 FY14

Wal-Mart Stores, Inc. (NYSE: WMT)

David Cheesewright President and CEO

Walmart International

Sept. 4, 2014

Goldman Sachs 21st Annual Global Retailing Conference

2

Forward Looking Statement

Walmart includes the following cautionary statement so that any forward-looking statements made by, or on behalf of,

Walmart will enjoy the safe harbor protection of the PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995, as

amended. Such forward-looking statements, which will describe our objectives, plans, goals, targets or expectations, can

be identified by their use of words or phrases such as “anticipate,” “estimate,” “expect,” “forecast,” “plan,” “projected,” “will

be” or words or phrases of similar import. Statements of our expectations for FY15, and any subsequent fiscal years are

forward-looking. Walmart’s actual results might differ materially from those expressed or implied in a forward-looking

statement as a result of factors including, among others, recessionary economic environment, cost of goods, competitive

pressures, availability of credit, geopolitical conditions and events, labor and healthcare costs, inflation, deflation,

consumer spending patterns, debt levels and credit access, currency exchange fluctuations, trade restrictions, tariff and

freight rate changes, fluctuations in fuel, other energy, transportation and utility costs, health care and other insurance

costs, accident costs, interest rate fluctuations, other capital market conditions, weather conditions, storm-related damage

to facilities, customer traffic, factors limiting our ability to construct, expand or relocate stores, regulatory matters and other

risks set forth in our SEC filings. Our most recent Annual Report on Form 10-K and our other filings with the SEC contain

more information concerning factors that, along with changes in facts, assumptions not being realized or other

circumstances, could cause actual results to differ materially from those expressed or implied in a forward-looking

statement. Walmart undertakes no obligation to update any forward-looking statement to reflect subsequent events.


3

Walmart International


$48

$137

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

International sales growth

10-Yr CAGR

11.1%

$ Billions

Figures as reported

Sales contribution

by segment

WMT Int'l 29%

WMT US

59%

Sam's 12%

Based on FY14 as reported

4

Solid FY15 1H International performance

Operational highlights Growth1

(% change from LY)

-1.4%

4.3%

7.5%

Net sales Operating income

1 Growth rates calculated based on a constant currency basis

See press release located at www.stock.walmart.com regarding reconciliations for non-GAAP financial measures.

Increased sales in a challenging environment

Grew operating income faster than sales

Expanded e–commerce in key markets

Drove comp growth and gained market share


5

Strategy – Operate good businesses and run them well

Portfolio

Playing in the right

markets

Markets

Channels

Formats

Growth drivers

Operational excellence

Trust as a differentiator

Portfolio

Management

Invest in good

Be the best-in-class operator Be in good businesses

Positioning

formats

Performance

Capturing share

Managing portfolio

profitability categories

Playing in the

right…

channels


6

FY15 International priorities


Drive comp sales via price leadership

Strategic priorities

Accelerate e–commerce globally

Build a platform for sustainable growth in China

Rejuvenate Mexico

Turn around Brazil

Enablers

Be the lowest cost operator

Develop world–class global talent

Trust as a differentiator in all markets

7

Building a platform for sustainable growth in China

Deliver value to customers

Lowest cost to operate


Disciplined growth

Be China’s most trusted retailer

Lowest prices

Compelling assortment

Fresh produce

Convenient shopping

Grow

sales Operate

for less

Buy

for less

Sell

for less

20.5% 20.7% 20.7%

21.4%

20.7%

FY10 FY11 FY12 FY13 FY14

SG&A % of sales

Excludes certain discrete items disclosed in Q4 FY14

8 Wal-Mart Stores, Inc. (NYSE: WMT)

Turning around

Sam’s Club

Rejuvenating Mexico

Rejuvenating the self service business

Driving comp growth faster than the market*

General Merchandise Food & Consumables Apparel +280bps +220bps +590bps

+240bps

* Q2 ANTAD excluding Sam’s

Talent

Leverage

Customer proposition

Price leadership

Fresh offer

Experience

Reducing expenses

Wage planning

Energy savings

Supply chain

(Weighted average)


Building on a base of strong sales and profit growth

$0.8 B

$2.5 B


10-Yr CAGR

12.1%

Operating profit growth1

$10.6 B

$28.6 B


10-Yr CAGR

10.4%

Sales growth1

1 Growth rates calculated based on reported currency rates

Exclude the results of Central America and discontinued operations of VIPs

10

Grow

sales Operate

for

less

Buy

for less

Sell

for less

Turning around Brazil


Driving comp sales

Portfolio management

-2%

0%

2%

4%

6%

8%

10%

12% Quarterly comp % 12-month rolling comp %

FY12

Q3

FY12

Q4

FY13

Q1

FY13

Q2

FY13

Q3

FY13

Q4

FY14

Q1

FY14

Q2

FY14

Q3

FY14

Q4

FY15

Q1

FY15

Q2

Integration Productivity loop

Retail systems 2016

100% stores

Associates

training 2016

~40,000 associates

Supply chain

systems

2016 Global supply

chain systems

Leadership and talent

Flavio Cotini

CFO

Adriana Muratore

Merchandising

Guiherme Loureiro

President & CEO

Ana P Santos

HR VP

Comp growth

Gross margin

Expenses

Op. Income

FY15 Q2 results


Service and innovation Price leadership

Redefining value retailing in the UK

Lowest cost to operate Market share performance

Change in share (bps)

Compelling offer

Buy 4 less

We operate 4 less

Way of working

Source: Kantar data for 12 weeks ending August 17, 2014

(146)

(31) (9)

+6 +13 +53

+106


Strengthening our position in Canada

Competitive food offer Supercenter conversions

Price leadership Low cost operating model

Strategic sourcing

Operational transformation

Supply chain

Source: AC Nielsen; 12 Wks. ending

July 19, 2014

Food, Consumables andHealth & Wellness

+50 bps

gain

Fresh Private brands GM stores Supercenters

12.7% 5.6% 7.0% 20.2%

National Next best Discount Conventional

* Source: Company analysis , Weighted price gap YTD as o

13

Integrating physical

and digital

Excelling at

fundamentals

Accelerating e–commerce


Accelerating

rollout

General merchandise

Grocery home shopping

14

FY15 International priorities


Drive comp sales via price leadership

Strategic priorities

Accelerate e–commerce globally

Build a platform for sustainable growth in China

Rejuvenate Mexico

Turn around Brazil

Enablers

Be the lowest cost operator

Develop world–class global talent

Trust as a differentiator in all markets


Q A

Wal-Mart Stores, Inc. (NYSE: WMT) David Cheesewright€¦ · 12% Quarterly comp % 12-month rolling comp % FY12 Q3 FY12 Q4 FY13 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY14 Q1 FY14 Q2 FY14 Q3 FY14

Documents