10/15/2014
David Cheesewright Walmart International President and CEO 10/15/2014
International leadership team Shelley Broader Brett Biggs Scott Price Enrique Ostalé Finance Strategy & Development Latin America UK, Canada, Africa Daniel Trujillo Maggie Sans Tim Cheatham Corporate Affairs Compliance Legal 10/15/2014
International serves 120M customers weekly 10/15/2014
Be in good businesses and be the best-in-class retailer Be the best-in-class retailer Be in good businesses Invest in good � Growth drivers � Markets � Operational excellence � Channels � Trust as a differentiator � Formats Portfolio Positioning Performance � � � Playing in the right Playing in the Capturing share markets right… � Optimizing portfolio formats channels categories 10/15/2014
Be in good businesses $5.5T global retail growth opportunity 1 (FY14-19 growth, $ in trillions) US Mom & Pop Food & e-commerce China consumables Supermarkets Hypermarkets Apparel Other WMT markets Apparel Beauty Electronics Electronics Pharmacy Discount Home Non-WMT Convenience Toys countries Others Others Markets Formats Categories 1 Euromonitor Retail Sales – modern, formal retail excluding auto and food service 10/15/2014
International priorities Be in good businesses � Drive comp sales via price leadership and category development � Strategic priorities � Accelerate e-commerce globally � Build a platform for sustainable growth in China � Rejuvenate Mexico Be the best-in- � Turn around Brazil class retailer � Enablers � Be the lowest cost operator � Develop world-class global talent � Trust as a differentiator in all markets 10/15/2014
Drive comp sales via price leadership Price leadership Journey to EDLP Price gap % Price gap measurement EDLP Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk 1 2 3 4 5 6 7 8 9 10 11 12 Price leadership In-store communication EDLC Price guarantee 10/15/2014
10/15/2014 International
Drive comp sales via price leadership Price leadership Journey to EDLP Price gap % Price gap measurement EDLP Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk Wk 1 2 3 4 5 6 7 8 9 10 11 12 Price leadership In-store communication EDLC Price guarantee 10/15/2014
Build robust retail foundations Category innovation Merchant tools Customer insights Baby in Chile Buying Pricing Replenishment/ Seasonal Gas stations in the UK & Modular planning availability Halloween in the UK Clinics in Canada 10/15/2014
Win in food Fresh food excellence Private brand acceleration Food and consumables private brand penetration 1 Leading WMT PB offer Sourcing 1 Opportunity to develop and leverage PB portfolio Conversion 2 In-store process 3 1 Last 12 months of data, ended May 2014 10/15/2014
Accelerate e-commerce to solve customer needs Grocery home shopping Online general merchandise Leverage ASDA’s success 10/15/2014
Lowest cost to operate Workforce management Supply chain Business discipline Energy savings Operating structure Inventory management 10/15/2014
Talent and trust World-class talent Most trusted retailer World-class Global leaders Efficient organization Community compliance � Best talent � Organizational alignment � Strengthen relationships � Continue good progress with customers and � Key focus areas: � Best environment � Standardization stakeholders � Anti-corruption � Automated tools � Lead on social and � Licenses and permits � Health and safety environmental issues 10/15/2014
Build a platform for growth in China Retail foundations Focused growth Grow sales Operate for less Sell for less Buy for less Build trust Integrate physical and digital Quality control 质量控制团队 10/15/2014
Rejuvenate Mexico Retail foundations Continued growth Grow sales Operate for less Sell for less Buy for less Fix Sam’s Club Accelerate e-commerce 10/15/2014
Execute turnaround program in Brazil Disciplined Build basic foundations growth Integration Leadership and talent Productivity loop Price leadership Compliance Improved assortment 10/15/2014
Redefine value retail in the UK Compelling offer Price leadership Lowest cost to operate Increase access and reach 10/15/2014
Strengthen position in Canada Compelling food offer Supercentre innovation Private Brands Fresh Lowest cost to operate Online opportunity 10/15/2014
Executive Vice President and Chief Financial Officer Walmart International Brett Biggs 10/15/2014
FY15 1H – Solid financial performance Growth 1 Performance highlights (% change from LY) 2 7.5% � Improved comp growth Grew operating income faster � than sales 2 4.3% � Expanded e-commerce in key markets -1.4% Increased focus on working capital � Net sales Operating income 1 Growth rates calculated on a constant currency basis 2 These figures are non-GAAP financial measures. Our reconciliations can be found at www.stock.walmart.com 10/15/2014
Disciplined growth New store square footage (in millions) Net Gross 24.1 20.2 16.5 12 - 13 23.6 19.4 12.5 10 - 13 9 - 10 1 2 FY12 FY13 FY14 FY15E FY16E 1 FY12 includes the acquisition of Netto stores in the UK 2 FY13 includes the acquisition of Zeller stores in Canada 10/15/2014
Position capex for the near future Capex % of International total Large formats New stores 1 Small formats Remodels/ maintenance e-commerce Distribution centers Leverage Other 2 FY12 FY15E FY16-18E 1 New stores also includes expansions, relocations, and in-box conversions 2 Other includes home office, bank, sustainability and JV Canada Smart Centres 10/15/2014
Create a more balanced portfolio Sales growth Op income growth (% of total International) (% of total International) “Big 3” markets Other markets CAM FY13-15 FY16-18E FY13-15 FY16-18E 10/15/2014
Portfolio framework Guiding principles Recent portfolio actions Deliver long-term value for Sold VIPS restaurants in Mexico � customers and shareholders Reset India � Be in good businesses � Closed stores in China & Brazil � Accelerate the strategy � � Purchased Chile minority interest � Simplify the business More balanced financial portfolio � Focus on key initiatives � 10/15/2014
International priorities Be in good businesses � Drive comp sales via price leadership and category development � Strategic priorities � Accelerate e-commerce globally � Build a platform for sustainable growth in China � Rejuvenate Mexico Be the best-in- � Turn around Brazil class retailer � Enablers � Be the lowest cost operator � Develop world-class global talent � Trust as a differentiator in all markets 10/15/2014
Q A 10/15/2014
10/15/2014
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