Wal-Mart Stores, Inc. · Wal-Mart Stores, Inc. on March 26, 2013. 5. Capital Expenditures (Capex or capital spending) – refers to Wal-Mart’s payments for property and equipment.

Wal-Mart Stores, Inc.

Charles Holley

EVP & Chief Financial Officer

1

What you can expect

2

Consistent performance

Using innovation to capture value

Disciplined investments

Dedicated to shareholder returns

$22

$28

FY08 FY13 FY14E

$3.15

$5.02

FY08 FY13 FY14E

Story of consistent performance

3

Grow sales

Leverage SG&A

Op income growth > sales growth

Consistency

$374

$466

FY08 FY13 FY14E

Net sales Operating income EPS

Performance

metrics

Expectations

Note: Net sales and operating income in billions; FY14E not drawn to scale; 1CAGR based on FY08 - FY13

$91

$135

FY08 FY13 FY14E

$44 $56

FY08 FY13 FY14E

$239

$274

FY08 FY13 FY14E

Performance across our portfolio

4

Expectations Comp growth

Expense leverage

Customer access

Top line growth

Best practices

Op margin expansion

Top line growth

Member value

Share growth

Net sales (billions)

Note: FY14E not drawn to scale; 1CAGR based on FY08 - FY13

Integrated with our eCommerce strategy

5

Note: FY14E - FY17E not drawn to scale

Revenue

FY12 FY13 FY14E FY15E FY16E FY17E

US Int'l Sam's

Revenue eCommerce CapEx

Operating

trends

Expectations Growth > industry

Move to profitability

Investing in fulfillment

FY12 FY13 FY14E FY15E

$345

$374

$401 $405 $419

$444

$466 $475-$480

FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14E FY 17E

6

Sq. ft. growth

assortment

formats

eCommerce

Expect increases in sales growth

• Comp improvement

• eCommerce sales growth

Note: Values in billions; FY14E - FY17E not drawn to scale; 1CAGR based on FY14E - FY17E

7

Our investments in leverage

Build customer knowledge FY15E benefits

COGS 44%

SG&A 52%

CapEx & other

4%

Best practice implementation

Back office efficiency

Build sourcing capabilities

Big Data & analytics

Note: Projections for FY15E benefits are based on company’s internal projections

8


Decrease COGS FY15E benefits

COGS 44%

SG&A 52%

CapEx & other

4%

Build customer knowledge






9


Decrease COGS

Decrease SG&A

FY15E benefits

COGS 44%

SG&A 52%

CapEx & other

4%








10

Decrease COGS

Decrease SG&A

Improve op income

Invest in price

FY15E benefits

COGS 44%

SG&A 52%

CapEx & other

4%







$1.3 $2.3

$2.9

19.4% 19.2%

19.1%

FY11 FY12 FY13 FY14E FY15E FY16E FY17E

Cumulative savings SG&A % of sales

100 bps decline in SG&A % of sales

Reducing SG&A expense

11

We are committed to our 100 bps SG&A leverage goal

Note: Cumulative savings in billions; FY14E - FY17E not drawn to scale

$21

$22 $23

$24

$26 $27

$28


12

Expect increases in operating income

• Growing faster than sales

• Leveraging expenses

Growth

leverage

EDLC

Note: Values in billions; FY14E - FY17E not drawn to scale

$2.93 $3.15

$3.35

$3.73

$4.18

$4.54

$5.02

$5.10-$5.30


13

Expect continued EPS growth

Growth

leverage

EDLC

• Growth and leverage

• Strong share repurchases

Note: FY14E - FY17E not drawn to scale, FY14E are based on company’s EPS guidance as of August 15, 2013

Cash flow

from

operations

&

net debt

growth

Our plans for free cash flow2

14

FY14E

AA rated balance sheet

Sources of cash Uses of cash

$25-27B

$11-13B

$12-13B CapEx5

Free cash flow2

$13-14B

Share

repurchases &

dividends

Note: Free cash flow is non-GAAP financial measure and the reconciliation can be found in the appendix; FY14E projections based on internal

projections

Cash flow

from

operations

&

net debt

growth

FY14E


4 - 6%

<Flat

Future expectations


CapEx

Share

repurchases,

dividends &

acquisitions



$25-27B

$11-13B

$12-13B CapEx5

Share

repurchases

& dividends

Free cash flow2

$13-14B

Our plans for free cash flow2

15

Excess

cash Cash flow

from

operations

&

net debt

growth

Note: Free cash flow is non-GAAP financial measure and the reconciliation can be found in the appendix; FY14E projections based on internal

projections

16

Improving capital productivity

FY13 FY14E FY15E

New store CapEx / sq. ft.

Note: FY14E - FY15E not drawn to scale

Lower material costs

Shorter construction time

Adopting best practices

FY09 FY14E FY15E

Technology capital

Technology capital is growing

17

Note: Technology includes systems and global eCommerce capital dollars; FY14E - FY15E not drawn to scale

• Fastest growing area

• Important to our

customers

$0.36 $0.52

$0.60 $0.67

$0.88 $0.95

$1.09 $1.21

$1.46 $1.59

$1.88

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Consistent dividend growth

18

• Dividends have doubled since

the financial crisis

Note: 1CAGR based on FY04 - FY14

$1.6 $2.2 $2.5 $2.8 $3.6 $3.7 $4.2 $4.4 $5.0 $5.4

$5.0 $4.5 $3.6

$1.7

$7.7

$3.5

$7.3

$14.8

$6.3

$7.6

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14E

Dividends Share repurchases

Returns to shareholders remain a top priority

19

Over the last 10 years, we’ve

returned nearly $100B to our

shareholders.

Note: Values in billions, FY14E not drawn to scale

Capital expenditures5

20

$ Billions FY13

Actual

FY14

Revised

FY15

Guidance

Walmart U.S. 6.0 6.0 - 6.5 5.8 - 6.3

Walmart Int’l 4.6 4.0 - 4.5 4.0 - 4.5

Sam’s Club 0.9 ~1.0 ~1.0

Corporate & support 1.4 ~1.0 ~1.0

Total Walmart 12.9 ~12.0 - 13.0 ~11.8 - 12.8

FY15 Guidance

21

*Growth rates based on FY14E - FY15E midpoint

Financial

priorities Metrics

FY15

Guidance*

FY15

Guidance

Growth Sales growth 3 - 5% $14B - $24B

Square footage growth3 < Flat 33 - 37M sq. ft.

Leverage SG&A growth4 < Sales

Operating income growth > Sales

Returns Free cash flow Strong

Today’s takeaways

22

Co

nsis

ten

cy Growth

Commitment to leverage

Shareholder returns

Disciplined investments

Other global financial items

23 Note: For additional information, refer to the appendix.

24

Appendix

Notes

25

1. CAGR (compound annual growth rate) – this is the year over year growth rate applied to an investment or other

part of a company’s activities over multiple periods. The formula for CAGR is (Current Value / Base Value)^(1/

number of years) -1.

2. Free Cash Flow (FCF) – Wal-Mart Stores, Inc. defines free cash flow, a non-GAAP financial measure, as net cash

provided by operating activities minus payments for property and equipment (as such amounts appear on the

pertinent statements of cash flow or equivalent financial statements).

Free Cash Flow Reconciliation FY13 FY12

Net Cash provided by operating activities 25,591 24,255

Payments for property and equipment (12,898) (13,510)

Free Cash Flow 12,693 10,745

Notes

26

3. Square Footage Growth – Square footage projections for fiscal years 2013 and 2014 are approximations and do

not include square footage gained during the close of acquisitions, but do include square footage added after the

acquisition closed. Square footage increases reflect additions made between February 1 and January 31 of each

respective year.

4. SG&A Growth – Wal-Mart Stores, Inc. has disclosed its definition of SG&A expense in the Form 10-K filed by

Wal-Mart Stores, Inc. on March 26, 2013.

5. Capital Expenditures (Capex or capital spending) – refers to Wal-Mart’s payments for property and equipment.

6. FY14, FY15, FY16, FY17 Projections – The anticipated, projected, or expected amounts, numbers, or results for

the complete fiscal year 2014 and beyond discussed in connection with or included in this presentation constitute

estimates and projections of Walmart’s management and as such, are forward-looking statements. Please refer to

Walmart’s Safe Harbor Statement provided in conjunction with the presentations at this meeting and read at the

beginning of this meeting.

Wal-Mart Stores, Inc. · Wal-Mart Stores, Inc. on March 26, 2013. 5. Capital Expenditures (Capex or capital spending) – refers to Wal-Mart’s payments for property and equipment.

Documents