Charles Holley Chief Financial Officer
Financial Overview
1
WMT has a history of delivering strong
results
2
Sales Operating income EPS
$444 billion
$27 billion
$4.54 per share
Note: Sales, operating income and EPS numbers are for FY12; Images depict FY92 - FY12
20-year CAGR1 14% 20-year CAGR1 12% 20-year CAGR1 12%
3
Grow comp sales
Leverage operating expenses
Deliver strong returns to shareholders
Last year’s headlines
4
Comps will play a bigger part in growth
FY 08 Comp New FY 12
Balanced Sales Growth
FY 13E Comp New Future
5
Business is even stronger this year
1H FY13 revenue growth 6.5%
Strong comps
Enhanced customer focus
Growth
$419
$444
FY 11 FY 12 FY 13E
Sales ($ in billions)
$466 - $475
6
Leverage goal:
> 100 bps by FY 17
On track to achieve
goal for FY 13
19.42%
19.21%
FY 11 FY 12 FY 13E
SG&A2 % Sales
Leverage
Business is even stronger this year
Note: FY 13 is not drawn to scale
Growth
$419
$444
FY 11 FY 12 FY 13E
Sales ($ in billions)
$466 - $475
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Growth
$419
$444
FY 11 FY 12 FY 13E
Sales ($ in billions)
$466 - $475
Returns
Business is even stronger this year
19.42%
19.21%
FY 11 FY 12 FY 13E
SG&A2 % Sales
Leverage
Cash from operations ($ in billions)
$10.0 $9.7
$11.6
1H FY 11 1H FY 12 1H FY 13
Note: FY 13 is not drawn to scale
Disciplined approach keeps us on track
to reach leverage goal
Optimizes performance and
efficiency
Accelerates the productivity
loop across the company
Drives greater P&L
performance
8
FY 10 FY 11 FY 12 FY 13E FY 17E
~50 bps > 100 bps
SG&A2 % of sales
Note: FY 13 and FY 17 are not drawn to scale
9
Increase
sales
Decrease
SG&A
Improve
operating
income
Leverage optimizes performance and
efficiency
Associate Productivity
On-Shelf Availability
Supply Chain
Global Services
10
Capital discipline underscores growth
Stronger real estate
process
Efficiencies in new
store builds and
remodels
Global initiatives
Note: Store count as of August 31, 2012; India Bharti franchises not included in total for India
$419
$444
$466 - $475
Growth initiatives aligned with capital
and expense discipline
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Strong asset base
FY 11 FY 12 FY 13E Future
Sales ($ in billions)
12
Investment in Global eCommerce
complements stores
Bricks & mortar Global eCommerce
13
Note: Estimates not drawn to scale. Source: EPS based on internal forecast and are dependent on actual share
repurchase completed; Guidance as of Q2 FY 13
Productivity loop supports EPS growth
$1.44
$2.03
$2.72
$3.15
$3.73
$4.54
FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13E FY 17E
Earnings per share
Growth
Share
repurchase
EDLC
EDLP
Note: FY 13 not drawn to scale
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Cash from operations
FY11 FY 12 FY 13E
Free cash flow3 continues to be strong
FY11 FY 12 FY 13E
Free cash flow3
1. Grow the business
• Organic growth
• Acquisitions
2. Dividends
3. Share repurchases
Cash
From
Operations
+
Net Debt
Growth
AA-rated balance sheet
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Cash priorities deliver shareholder value
$0.30 $0.36 $0.52
$0.60 $0.67
$0.88 $0.95
$1.09 $1.21
$1.46 $1.59
FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13
Annual dividend per share
Note: FY 13 is based on declared dividend; WMT dividend payout ratio is 35% of earnings per share
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10-year CAGR1
18%
Consistent dividend growth
Strong returns to shareholders FY 07 – 1H FY 13
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Shares Repurchased
$45B Dividends Issued
$26B Over
$71B
returned
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 1H FY13 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 1H FY 13
Note: Dividends and shares repurchased are year-over-year cumulative
Note: Return on investment is calculated for each retailer’s latest fiscal year filing using the Walmart ROI calculation
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0%
5%
10%
15%
20%
25%
One of the highest ROIs4 in retail
Financial Projections
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FY 12
Actual*
FY 13
Guidance**
Walmart U.S. $6.2B $6.0 - $6.5B
Walmart Int’l $5.3B $4.6 - $5.0B
Sam’s Club $0.8B ~$1.0B
Corporate & Other $1.2B ~$1.0B
Total Walmart $13.5B ~$12.6 - $13.5B
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Capital expenditures5
* Immaterial difference compared to WMT 2012 Annual Report
** Guidance reissued in Q2 FY 13
FY 12
Actual*
FY 13
Guidance**
FY 14
Guidance
FY 13 – 14
% Change***
Walmart U.S. $6.2B $6.0 - $6.5B $5.5 - $6.0B -8.0%
Walmart Int’l $5.3B $4.6 - $5.0B $4.5 - $5.0B -1.0%
Sam’s Club $0.8B ~$1.0B ~$1.0B -
Corporate & Other $1.2B ~$1.0B ~$1.0B -
Total Walmart $13.5B ~$12.6 - $13.5B ~$12.0 - $13.0B -4.2%
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Capital expenditures5
* Immaterial difference compared to WMT 2012 Annual Report
** Guidance reissued in Q2 FY 13
*** FY 13 - FY 14 capex5 growth rates based on midpoint of specified range
Financial
Priorities Metrics
FY 14
Guidance FY14
Growth
Sales growth 5 - 7% $23B - $33B
Square footage
growth6 3 - 4% 36M sq. ft. –
40M sq. ft.
Leverage
SG&A growth2 < Sales
Operating income
growth > Sales
Returns Free cash flow3 Strong
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FY14 Guidance
Positioned to continue our momentum
Committed to the 100 bps leverage goal
Committed to capital discipline and efficiency
Strong existing asset base allows us to invest in new initiatives
Continue to provide strong returns to shareholders
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Key takeaways
APPENDIX
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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. 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 27, 2012.
Notes
3. 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
FY12 FY11
Net cash provided by operating activities $24,255 $23,643
Payments for property and equipment ($13,510) ($12,699)
Free Cash Flow $10,745 $10,944
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Notes 4. ROI – Wal-Mart Stores, Inc. has posted its definition of ROI (return on investment), a non-GAAP financial
measure, in the Investor Relations section of its corporate website. ROI, as shown in this presentation, was
calculated as of the end of fiscal year 2012.
The calculation for fiscal year 2012 ROI appears in the Form 10-K filed by Wal-Mart Stores, Inc. on March 27,
2012. Calculation is shown below. The calculation of ROA (return on assets), the most comparable GAAP
financial measurement, is also shown below. Please refer to the Form 10-K to see more information on the
footnotes included in the calculations below. A reconciliation is provided for all periods that have been reported in
the company’s financial statements.
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Notes
(1) The average is based on
the addition of the
account balance at the
end of the current
period to the account
balance at the end of the
prior period and
dividing by 2
(Dollar amounts in millions) 2012 2011
CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income $ 26,558 $ 25,542
+ Interest income 162 201
+ Depreciation and amortization 8,130 7,641
+ Rent 2,394 1,972
= Adjusted operating income $ 37,244 $ 35,356
Denominator
Average total assets of continuing operations(1) $ 186,984 $ 175,459
+ Average accumulated depreciation and
amortization(1) 47,613 43,911
- Average accounts payable(1) 35,142 32,064
- Average accrued liabilities(1) 18,428 18,718
+ Rent x 8 19,152 15,776
= Average invested capital $ 200,179 $ 184,364
Return on investment (ROI) 18.6 % 19.2 %
CALCULATION OF RETURN ON ASSETS
Numerator
Income from continuing operations $ 16,454 $ 15,959
Denominator
Average total assets of continuing operations(1) $ 186,984 $ 175,459
Return on assets (ROA) 8.8 % 9.1 %
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5. Capital Expenditures (CapEx or capital spending) refers to Wal-Mart’s payments for property and equipment.
6. 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.
7. FY13 or FY14 Projections - The anticipated, projected, or expected amounts, numbers, or results for the
complete fiscal year 2013 and for 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.
Notes