Charles M. Holley, Jr.

Size: px

Start display at page:

Download "Charles M. Holley, Jr."

Laura Robertson
6 years ago
Views:

2 Charles M. Holley, Jr. Executive Vice President and Chief Financial Officer

3 Simple philosophy Our philosophy has always been simple: We are agents for our customers. Sam M. Walton Discount retail Membership Grocery International E-commerce

4 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

5 Working capital management Net inventory $7.4 $5.7 $2.8 $4.1 FY11 FY12 FY13 FY14 FY15E FY16E Note: Net inventory = Inventory Accounts payable, FY15E - FY16E not drawn to scale

6 Traditional brick & mortar growth $12.7 Capex $ $12.0 $ $11.4 Moderate growth in large format stores in the U.S. and globally Continue rollout of small store formats Grow in key international markets FY14 FY15E FY16E Note: Values in billions

7 Recap of traditional brick & mortar Sales Op. income $437 $458 $463 $27 $28 $28 FY12 FY13 FY14 FY15E FY16E FY18E FY12 FY13 FY14 FY15E FY16E FY18E Note: Values in billions, FY15E - FY18E not drawn to scale, 1 CAGR represents FY15E to FY18E

8 E-commerce & digital Capex Initiatives $1.2 $1.5 Digital to physical integration ~$1.0 Global ecommerce platform $0.4 Next generation supply chain Pangaea FY14 FY15E FY16E Note: Values in billions

9 Recap of the e-commerce & digital performance Sales and GMV Op. loss GMV 7 Sales -$0.2 -$0.3 -$0.8 $13.5 $6 $8 $10 $12.5 FY12 FY13 FY14 FY15E FY16E FY18E FY12 FY13 FY14 FY15E FY16E FY18E Note: Values in billions, FY15E - FY18E not drawn to scale, 1 CAGR from FY15E to FY18E, see appendix for footnotes

10 FY16 guidance Metrics FY16 guidance* FY16 guidance Sales growth 2-4% $10B - $20B Square footage growth 3 2 3% 26-30M sq. ft. Operating expense growth 4 Operating income growth Free cash flow Sales Sales Strong *Growth rates based on FY15E - FY16E midpoint, see appendix for footnotes

11 Sources and uses of cash Cash from operations 1. Growth Organic Stores E-commerce Technology Acquisitions 2. Dividends 3. Share repurchase AA-rated balance sheet

12 Free cash flow Consistently above $10 billion per year $14.1 $10.9 $10.7 $12.7 $10.1 FY10 FY11 FY12 FY13 FY14 FY15E FY16E FY18E Note: Values in billions, FY15E FY18E not drawn to scale

13 Capital expenditure guidance Actual Revised Guidance FY14 FY15 FY16 Walmart U.S. $6.4 $ $ Walmart International Sam s Club 1.1 ~0.9 ~0.8 Total Segments $11.9 $ $ Corporate Support 1.2 ~ Wal-Mart Stores, Inc. $13.1 $ $ Note: Values in billions

14 Capital expenditure guidance Actual Revised Guidance FY14 FY15 FY16 Walmart U.S. $6.4 $ $ Walmart International Sam s Club 1.1 ~0.9 ~0.8 Total Segments $11.9 $ $ Corporate Support 1.2 ~ Wal-Mart Stores, Inc. $13.1 $ $ Traditional brick & mortar $12.7 $ $ E-commerce & digital $0.4 $~1.0 $ Note: Values in billions

15 Global square footage guidance Net retail square footage Actual Revised Guidance FY14 FY15 FY16 Walmart U.S ~21-22 ~15-16 Walmart International 12.5 ~9-10 ~10-13 Sam s Club 1.7 ~2 ~1 Wal-Mart Stores, Inc ~32-34 ~26-30 Note: Values in millions

16 Returns to shareholders - dividends Dividends have increased for 41 consecutive years $1.09 $1.21 $1.46 $1.59 $1.88 $1.92 FY10 FY11 FY12 FY13 FY14 FY15 Note: 5-year CAGR of 12.0% (FY10 FY15)

17 Returns to shareholders - share repurchase $14.8 $7.3 $6.3 $7.6 $6.7 FY10 FY11 FY12 FY13 FY14 Note: Values in billions

18 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

19 Appendix

20 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) 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

21 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, 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.

Charles Holley Chief Financial Officer. Financial Overview

Charles Holley Chief Financial Officer Financial Overview 1 WMT has a history of delivering strong results Sales Operating income EPS $444 billion $27 billion $4.54 per share 20-year CAGR 1 12% 20-year