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1
International
Doug McMillon
President & Chief Executive Officer
2
International leadership team
3
Strategy & Development
Judith McKenna
Finance
Cathy Smith
Latin America
Enrique Ostalé David Cheesewright
UK, Canada, Africa
Scott Price
Asia
Chief Compliance Officer
Daniel Trujillo
Corporate Affairs
Maggie Sans
People
Tom Waldron
General Counsel
Tim Cheatham
Delivering on commitments
4
Disciplined growth
EDLP transition
New store execution
E-commerce capabilities
Improve returns
Leverage expenses
Capital discipline
Deeper talent
Excellence in compliance
Social and environmental leadership
Disciplined growth
EDLP progress in every market
New store performance improving
E-commerce capabilities developing
Improve returns
Did not leverage in the first half
Slowed new store growth to improve quality
Improved depth and strengthened capabilities
Global organization and foundation in place
Progress on energy, waste and supply chain
Last year’s key takeaways Progress YTD
2.9%
4.7%
(2.9%) 0.1%
FY14 first half financial performance
5
Sales growth Operating income growth
Adjusted Currency
impact Excl.
China & Brazil
eCommerce
Reported Adjusted Currency
impact Excl.
China & Brazil
eCommerce
Reported
Winning market share FY14 first half
6
25.8%
13.6%
10.4%
4.7%
8.3%
-0.8%
8.9%
6.1%
2.5%
24.0%
9.9% 8.1%
4.5% 6.7%
-0.4%
6.1%
0.8%
3.7%
Walmart Growth
Market Growth
Argentina Brazil Chile Mexico &
Central
America
China
Japan
South
Africa
Canada UK
Expense leverage performance
7
19.7%
20.0%
19.7% 19.6%
19.4%
19.0%
19.5%
20.0%
FY09 FY10 FY11 FY12 FY13
FY14 first half expense leverage performance
8
Property, health & welfare taxes
eCommerce investments
Customer experience investments
eCommerce investments
X X X X X
China Japan South Africa
& Sub-Saharan
Africa
Chile India UK Mexico &
Central
America
Canada Brazil Argentina
UK
Canada
Units per labor hour improvement vs. LY
Strong return on investment
9
Notes: The ROIs above are non-GAAP measures and are based on information as of December 31, 2012. The ROI information above is based on public
information and internal data for Wal-Mart Stores, Inc. and Walmart International. Our information for Walmart’s competitors is based on public information and
information from Capital IQ. ROIs for Walmart’s competitors above have been calculated utilizing Walmart’s ROI methodology.
Wal-Mart
Stores, Inc.
FY13 ROI by market
10
Walmart International ROI
Best-in-class in market Greater improvement opportunity Moderate improvement opportunity
Mexico Canada
UK
South Africa &
Sub-Saharan
Africa
Chile
Central
America Argentina
China
Brazil Japan
Source: Information for the countries above is based on the company's internal data. Certain Walmart International segment overhead expenses have not been
allocated to the markets and are not reflected in the ROI by market presented above. ROI information is a non-GAAP measure.
Building a great business
11
Building a great business
12
Operational process improvement
Systems capabilities
World-class compliance
Disciplined growth
Purpose, culture, operating principles
Disciplined growth
13
Reset India
Sale of VIPS restaurants in Mexico
Close underperforming stores in Brazil
FY15 operating income benefit of +20 bps
Close underperforming stores in China
FY15 operating income benefit of +30 bps
Plan to win
14
Be in good
businesses Growth
Leverage
Returns
Be the
best-in-class
operator
Portfolio
Management
Be in good businesses
15
Portfolio
Management
Invest in good
markets
formats
channels
store locations
Be in good businesses – Mergers & Acquisitions
16
Focus on existing markets
Acquire capabilities
Selectively enter new markets
20+ year history of growth
17
$0
$20
$40
$60
$80
$100
$120
$140
$160 Newly acquired sales
Cumulative acquisition sales
Organic sales
($ in B)
Mexico
China
Wertkauf (Germany)
Makro (S. Korea) Bompreco (Brazil)
Trust-Mart (China) and JV Bharti (India)
Sonae (Brazil), CARHCO (Central America), and
Seiyu (Japan), Sold S. Korea and Germany
D&S (Chile)
Interspar (Germany)
ASDA (UK)
Cifra
(Mexico)
Woolco
(Canada)
Argentina
and Brazil
Yihaodian (China), Massmart (Africa)
and Netto (UK)
$8 $5 $4 $1 <$1 <$1 <$1
$135 $126
$109
$97 $96 $91
$77
$59 $53
$48 $41
$35 $32 $23
$12
Zellers (Canada)
Disciplined growth
18
45%
55%
Developed Emerging
245
374-376
329 348 362
21 21
42 19
14 12-14
FY09 FY10 FY11 FY12 FY13 FY14E FY15P FY15P
~ 130 million sq. ft.
~ 7.3% CAGR between
Net store sq. ft. (in millions)
Capital expenditure (FY14 - FY17)
FY15E FY15E
Capital expenditure update
19
[Placeholder – Capex numbers being
reviewed with Cathy Tuesday 8am (10/1)] CapEx detail ($ in B) FY13
Actual
FY14
Estimate
(Original)
FY14
Estimate
(Revised)
FY15
Projection
New stores $2.5 $2.2 - $2.5 $1.9 - $2.1 $1.7 - $1.9
Remodels $0.5 $0.7 $0.7 $0.8
Logistics $0.4 $0.6 $0.4 $0.5
Other $1.2 $1.0 - $1.2 $1.0 - $1.3 $1.0 - $1.3
Total Walmart International $4.6 $4.5 - $5.0 $4.0 - $4.5 $4.0 - $4.5
Sq. ft. detail (millions)
Net new store sq. ft. 19.4 20 - 22 14 12 - 14
Be the best-in-class operator
20
Drivers of growth
and returns
Foundations for
growth and returns
Drive growth with innovation – eCommerce
21
Shop in
Store
Grocery Home Shopping UK lead market
At store
pick up “Click &
Collect”
Offsite
pick up
Offsite
drive through
Mobile
pop up
Delivery
to home
Global Walmart.com
Connecting with
customers Social Online Mobile Tablet Stores
One Store Open to
the World
A healthy core – fresh food
22
Produce Events Your Fresh Market Launch
Chile Canada
A healthy core – private brand
23
George – kidswear Chosen by Kids Chosen by You
Japan - food UK - food UK - apparel
Aggressively drive the productivity loop
24
The Four Ws:
We Operate For Less
We Move For Less
We Construct For Less
EDLP journey
We Buy For Less
Grow
sales Operate
for less
Buy
for less
Sell
for less
Process Foundations Innovation
Productivity loop – We Operate for Less
25
Workforce
Management
Tunnel
Scanning
Productivity loop
26
Pre-fabricated
restroom
We Move for Less We Construct for Less
Mexico network
design - consolidation
We Buy for Less
IPL leverage - global
olive oil buy
UK Japan
Continuing on our EDLP journey
27
Achieve Lowest Cost Base Recognized as
Lowest Basket Price
EDLP Competitive
Advantage
High inflation
limiting
effectiveness
Learning and
testing concepts
India Argentina
China
Brazil
Japan
Mexico &
Central America
UK
Chile
Canada
South Africa &
Sub-Saharan Africa
Stage of maturity
Tim
e
Using EDLC and
EDLP as an
advantage
Strong cost position;
EDLP largely
implemented
Cost structure too
high; retail divisions
implemented,
wholesale still
implementing Early stages
Be the best-in-class operator
28
Drivers of growth
and returns
Foundations for
growth and returns
Connecting people to purpose
29
Leadership Depth
and Diversity
Merchant
Expertise
Culture and
Engagement
Building leadership depth and capability
30
Guilherme
Loureiro Steve
Smith
Ann
Bordelon
Gary
Severson
John
Furner
Steve
Breen Gian Carlo
Nucci
Michiko
Otsubu
Karina
Awad
Jesica
Duarte
Asia
Brazil China Chile Japan Chile
Japan UK Mexico Brazil
Compliance is part of our culture
31
Global compliance leadership
32
Daniel Trujillo Chief Compliance Officer
International
Tom Gean Global Anti-Corruption
Compliance Officer
Jan Saumweber Ethical Sourcing
Phyllis Harris Chief Compliance
Officer, U.S.
Seth Beal Global Chief Compliance Officer
eCommerce & Leverage
Jon Avila Chief Privacy Officer
Jay Jorgensen Global Chief
Compliance Officer
Global compliance resources
33 33
Global Chief Compliance Officer
International Chief
Compliance Officer U.S. Chief Compliance Officer Global Anti-Corruption Officer
U.S. Compliance
Organization UK/Canada/
Africa CCO
Asia
CCO Latin America
CCO
China
Japan
India
Mexico &
Central America
Chile
Brazil
Argentina
China
Japan
India
UK
South Africa &
Sub-Saharan
Africa
Canada
UK
South Africa &
Sub-Saharan
Africa
Canada
Mexico &
Central America
Chile
Brazil
Argentina
Compliance as a competitive advantage
34
14 global compliance
subject areas
Financial control
enhancements
Anti-
Corruption
Anti-Money
Laundering
Antitrust
Consumer
Protection
Environment
Ethical
Sourcing
Food Safety
Health &
Safety
Health &
Wellness
Labor &
Employment
Licenses &
Permits
Privacy
Product
Safety
Trade
Strengthening our financial
controls to support a world-
class anti-corruption
compliance program
Standardizing processes and
controls across markets
Case study: China
35
2013
1980
China
G5
G5: US, UK, France, Germany, Japan Projections
China’s rapid growth
120%
3300%
1980 1985 1990 1995 2000 2005 2010 2015 2018
China – global leadership talent
36
China US UK Canada Hong Kong Singapore Australia Germany New Zealand
Growth in China
37
`
Beijing
Shanghai
Fuzhou-Xiamen
Kunming
Chengdu-Chongqing
Wuhan
Guangzhou–Shenzhen
Strengthening and expanding the portfolio
China – fresh food
38
Delivering fresh quality Delivering fresh excitement
China – compliance
39
Ensuring quality through compliance
Case study: China
40
Increasing growth, performance and profits
Building a strong foundation
Reducing costs
Strengthening EDLP
Growing the portfolio
We make money in China.
We believe in China.
We will win in China.
Plan to win
41
Be in good businesses
Actively manage our portfolio
Be the best-in-class operator
Drive new growth with innovation
Sustain a healthy core
Aggressively drive the productivity loop
Build leadership depth
Make compliance a competitive advantage
Growth
Leverage
Returns
Appendix
42
Appendix A
43
Market Growth Sources: Argentina: Nielsen, Brazil Nielsen, Canada: Statistics
Canada ATRS, China (FMGC only): Nielsen; Japan: Ministry of Economy, Trade and
Industry (METI); Chile: INE; Mexico & CAM: ANTAD (Retail and Departmental Stores
Association) & Nielson (for CAM); South Africa: Government official statistics, and UK:
Kantar World panel data-24 weeks ending 7th July
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