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10/15/2014
10/15/2014
Charles M. Holley, Jr. Executive Vice President and Chief Financial Officer
10/15/2014
“Our philosophy has always been simple: We are agents for our customers.”
– Sam M. Walton
Discount retail
Grocery International E-commerce Membership
Simple philosophy
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FY15 guidance scorecard
Metrics FY 15E analyst
guidance* FY 15E updated Score
Sales growth 3-5% 2-3% X
Square footage growth < / Flat < / Flat
Operating expense < Sales < Sales X
Operating income
growth > Sales < Sales X
Free cash flow Strong Strong
Note: *Provided October 15, 2013
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Working capital management
$2.8
$4.1
$5.7
$7.4
FY11 FY12 FY13 FY14 FY15E FY16E
Note: Net inventory = Inventory – Accounts payable, FY15E - FY16E not drawn to scale
Net inventory
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Traditional brick & mortar growth
Note: Values in billions
$12.7
FY14 FY15E FY16E
$10.4 - $11.4
Capex
$11.5 - $12.0
Moderate growth in large format stores
in the U.S. and globally
Continue rollout of small store formats
Grow in key international markets
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Recap of traditional brick & mortar
Note: Values in billions, FY15E - FY18E not drawn to scale, 1CAGR represents FY15E to FY18E
$437 $458 $463
FY12 FY13 FY14 FY15E FY16E FY18E
$27 $28 $28
FY12 FY13 FY14 FY15E FY16E FY18E
Sales Op. income
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E-commerce & digital
Note: Values in billions
$0.4
FY14 FY15E FY16E
$1.2 – $1.5
Capex
• Digital to physical integration
• Global eCommerce platform
• Next generation supply chain
• Pangaea
~$1.0
Initiatives
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Recap of the e-commerce & digital performance
-$0.2 -$0.3 -$0.8
FY12 FY13 FY14 FY15E FY16E FY18E
Note: Values in billions, FY15E - FY18E not drawn to scale, 1CAGR from FY15E to FY18E, see appendix for footnotes
$6 $8 $10
FY12 FY13 FY14 FY15E FY16E FY18E
GMV7
Sales and GMV Op. loss
$12.5
$13.5
Sales
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FY16 guidance
*Growth rates based on FY15E - FY16E midpoint, see appendix for footnotes
Metrics FY16 guidance* FY16
guidance
Sales growth 2 - 4% $10B - $20B
Square footage growth3 2 – 3% 26 - 30M sq. ft.
Operating expense growth4 ≥ Sales
Operating income growth ≤ Sales
Free cash flow Strong
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Sources and uses of cash
Cash
from
operations
1. Growth
2. Dividends
3. Share repurchase
Organic
• Stores
• E-commerce
• Technology
AA-rated balance sheet
Acquisitions
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$14.1
$10.9 $10.7 $12.7
$10.1
FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY18E
Free cash flow
Consistently above $10 billion per year
Note: Values in billions, FY15E – FY18E not drawn to scale
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Actual Revised Guidance
FY14 FY15 FY16
Walmart U.S. $6.4 $6.6 – 6.8 $6.1 – 6.6
Walmart International 4.4 3.8 – 4.1 3.7 – 4.2
Sam’s Club 1.1 ~0.9 ~0.8
Total Segments $11.9 $11.3 - 11.8 $10.6 – 11.6
Corporate Support 1.2 ~1.2 1.0 – 1.3
Wal-Mart Stores, Inc. $13.1 $12.5 – 13.0 $11.6 – 12.9
Note: Values in billions
Capital expenditure guidance
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Actual Revised Guidance
FY14 FY15 FY16
Walmart U.S. $6.4 $6.6 – 6.8 $6.1 – 6.6
Walmart International 4.4 3.8 – 4.1 3.7 – 4.2
Sam’s Club 1.1 ~0.9 ~0.8
Total Segments $11.9 $11.3 - 11.8 $10.6 – 11.6
Corporate Support 1.2 ~1.2 1.0 – 1.3
Wal-Mart Stores, Inc. $13.1 $12.5 – 13.0 $11.6 – 12.9
Traditional brick & mortar $12.7 $11.5 – 12.0 $10.4 – 11.4
E-commerce & digital $0.4 $~1.0 $1.2 – 1.5
Note: Values in billions
Capital expenditure guidance
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Net retail square footage Actual Revised Guidance
FY14 FY15 FY16
Walmart U.S. 18.4 ~21 - 22 ~15 - 16
Walmart International 12.5 ~9 - 10 ~10 - 13
Sam’s Club 1.7 ~2 ~1
Wal-Mart Stores, Inc. 32.6 ~32 - 34 ~26 - 30
Note: Values in millions
Global square footage guidance
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Returns to shareholders - dividends
$1.09 $1.21 $1.46
$1.59 $1.88 $1.92
FY10 FY11 FY12 FY13 FY14 FY15
Dividends have increased for 41 consecutive years
Note: 5-year CAGR of 12.0% (FY10 – FY15)
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Returns to shareholders - share repurchase
$7.3
$14.8
$6.3 $7.6
$6.7
FY10 FY11 FY12 FY13 FY14
Note: Values in billions
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Today’s takeaways
Customer focused
Price, assortment, access, and service
Investing for future growth
Disciplined capital spend, with shift in focus
Set up for continued shareholder returns
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Appendix
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Notes 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 FY14 FY13
Net Cash provided by operating activities 23,257 25,591
Payments for property and equipment (13,115) (12,898)
Free Cash Flow 10,142 12,693
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Notes
3. Square Footage Growth – Square footage projections for fiscal years 2015 and 2016 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. Operating expense 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 21, 2014.
5. Capital Expenditures (Capex or capital spending) – refers to Wal-Mart’s payments for property and equipment.
6. FY15, FY16, FY17, FY18 Projections – The anticipated, projected, or expected amounts, numbers, or results for
the complete fiscal year 2015 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.
7. “global eCommerce gross merchandise value” or global eCommerce “GMV” is defined as the total sales value
of merchandise sold or transacted where the transaction originates online, excluding the sale of gift cards.
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