10/15/2014 David Cheesewright Walmart International President and - - PDF document

David Cheesewright

President and CEO Walmart International

Strategy & Development

Scott Price

Latin America

Enrique Ostalé

Finance

Brett Biggs Shelley Broader

UK, Canada, Africa

Daniel Trujillo Maggie Sans Tim Cheatham

Legal Corporate Affairs Compliance

International leadership team

International serves 120M customers weekly

Portfolio

• Playing in the right

markets

• Markets
• Channels
• Formats

Invest in good

Growth drivers Operational excellence Trust as a differentiator Be the best-in-class retailer Be in good businesses Positioning

formats

Performance

• Capturing share
• Optimizing portfolio

categories

• Playing in the

right… channels

Be in good businesses and be the best-in-class retailer

Be in good businesses

Formats

$5.5T global retail growth opportunity1

(FY14-19 growth, $ in trillions) Markets

US China Other WMT markets Non-WMT countries

Categories

Mom & Pop Hypermarkets Apparel Supermarkets Others Convenience Home Toys Electronics Beauty Others Apparel Food & consumables e-commerce Electronics Pharmacy Discount

International priorities

• 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
• Turn around Brazil
• Enablers
• Be the lowest cost operator
• Develop world-class global talent
• Trust as a differentiator in all markets

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

Drive comp sales via price leadership

EDLP EDLC Price leadership In-store communication Price guarantee Price gap measurement

Price leadership Journey to EDLP

International

Drive comp sales via price leadership

EDLP EDLC Price leadership In-store communication Price guarantee Price gap measurement

Price leadership Journey to EDLP

Build robust retail foundations

Category innovation Merchant tools

Baby in Chile Customer insights Gas stations in the UK & Clinics in Canada Seasonal Halloween in the UK Pricing Buying Modular planning Replenishment/ availability

Win in food

Sourcing Conversion In-store process

Fresh food excellence

1 2 3 Leading WMT PB offer

Opportunity to develop and leverage PB portfolio

Private brand acceleration

Food and consumables private brand penetration1

Accelerate e-commerce to solve customer needs

Grocery home shopping

Leverage ASDA’s success

Online general merchandise

Lowest cost to operate

Workforce management Business discipline Supply chain

Energy savings Operating structure Inventory management

Talent and trust

Best talent Best environment Global leaders Continue good progress Key focus areas: Anti-corruption Licenses and permits Health and safety Strengthen relationships with customers and stakeholders Lead on social and environmental issues Community World-class compliance Organizational alignment Standardization Automated tools Efficient organization

World-class talent Most trusted retailer

Build a platform for growth in China

Retail foundations Integrate physical and digital Focused growth Build trust

Quality control

质量控制团队

Rejuvenate Mexico

Retail foundations Accelerate e-commerce Continued growth Fix Sam’s Club

Execute turnaround program in Brazil

Build basic foundations

Price leadership Integration Compliance Improved assortment Productivity loop

Disciplined growth

Leadership and talent

Redefine value retail in the UK

Lowest cost to operate Price leadership Increase access and reach Compelling offer

Strengthen position in Canada

Lowest cost to operate Supercentre innovation Online opportunity Compelling food offer

Fresh Private Brands

Brett Biggs

Executive Vice President and Chief Financial Officer Walmart International

FY15 1H – Solid financial performance

• 1.4%

4.3% 7.5% Net sales Operating income

• Improved comp growth
• Grew operating income faster

than sales

• Expanded e-commerce in key markets
• Increased focus on working capital

Growth1

(% change from LY)

Performance highlights

Disciplined growth

New store square footage

(in millions)

23.6 19.4 12.5 9 - 10 10 - 13 24.1 20.2 16.5 12 - 13

FY12 FY13 FY14 FY15E FY16E Net Gross

Position capex for the near future

Capex % of International total

FY12 FY15E FY16-18E

Distribution centers e-commerce Remodels/ maintenance Leverage Other2 New stores1 Large formats Small formats

Sales growth

(% of total International) FY13-15 FY16-18E “Big 3” markets FY13-15 FY16-18E Other markets

CAM

Op income growth

(% of total International)

Create a more balanced portfolio

Portfolio framework

Guiding principles Recent portfolio actions

• Sold VIPS restaurants in Mexico
• Reset India
• Closed stores in China & Brazil
• Purchased Chile minority interest
• More balanced financial portfolio
• Be in good businesses
• Accelerate the strategy
• Simplify the business
• Focus on key initiatives

Deliver long-term value for customers and shareholders

International priorities

• 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
• Turn around Brazil
• Enablers
• Be the lowest cost operator
• Develop world-class global talent
• Trust as a differentiator in all markets

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

Q A