2017 Investment Community Meeting. Moving With Speed

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Mariah Allen
6 years ago
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1 2017 Investment Community Meeting Moving With Speed

2 Brett Biggs Walmart Finance

3 Walmart uniquely positioned to win Win with customers Win with shareholders

4 Update on expectations Financial strength Financial framework

5 First half FY18 financial performance +3.1% * Total net sales (constant currency) $11.4B Operating cash flow $7.5B Dividends and share repurchases highlights Strong comps in many parts of the business Walmart U.S. ecommerce sales growth 62% Leveraged expenses in the U.S. stores and International *A reconciliation of constant currency net sales to net sales can be found on the meeting event page. Additionally, this percentage excludes a negative year-over-year impact of ~$890M from the divestitures of Yihaodian and Suburbia.

6 Financial expectations FY18 $ $4.40 ~3% ~$11B * * Adjusted EPS *A reconciliation of adjusted EPS to GAAP EPS can be found on the meeting event page * Total net sales (constant currency) *Excludes a negative year-over-year impact from the divestitures of Yihaodian and Suburbia Capital expenditures *Excludes acquisitions

7 Delivering against the guidance Metrics Sales growth (FY17-FY19, constant currency) ecommerce sales growth (FY17-FY19) Expense leverage (FY18) ecommerce losses Operating margin % EPS Operating cash flow (FY17-FY19) CapEx Excludes acquisitions October 2016 guidance 3 to 4% 20-30% Slight leverage Decrease after FY18 Slightly down FY18 Relatively stable near to mid-term FY18 1 ~flat FY19 2 ~+5% $80B FY18 $11B 1. Adjusted EPS. A reconciliation of adjusted EPS to GAAP EPS can be found on the meeting event page 2. Versus prior year adjusted EPS

8 Unique financial position $486B FY17 revenue AA Credit rating +260M Customers per week Momentum in many parts of the business Nearly 12,000 retail locations worldwide Acquisitions and partnerships Dividends Share repurchases Net debt Core CapEx FY17 uses of cash

9 Financial framework Strong, efficient growth Consistent operating discipline Strategic capital allocation Focus on most productive growth opportunities Prioritize comp growth Accelerating ecommerce growth Sustainable lowest cost to serve Consistent working capital management Technology and process focus Capital alignment with long-term strategy Strengthen key businesses, markets, and initiatives Strong shareholder returns

10 Strong, FY14-17 FY18-19 efficient growth Increased sales growth through store/club comps and ecommerce Store/club comps ecommerce New stores/ clubs Store/club comps New stores/ clubs ecommerce Global sales

11 Consistent ~20% ~21% ~21% Reduce non-store expenses operating discipline Change how we plan Eliminate duplication Increase efficiency Optimize Committed to leveraging expenses Technology and process Global Business Services Store/club productivity Operating expenses as a % of sales FY16 FY17 FY18 Future Evolve Ways of working Digital transformation Supply chain

FY17-18 combined ~$30B * Significant cash

12 FY17-18 combined ~$30B * Significant cash returns for shareholders ~$12B Dividends Dividend increase 44 consecutive years ~$18B Share repurchases New $20B share repurchase program *Includes forecasted share repurchases through the remainder of FY18

13 Strategic capital allocation $12.2 CapEx spending by type ($ in billions)* *Excludes acquisitions $11.5 $10.6 ~$11.0 ~$11.0 Future-focused capital continues to shift from new stores to remodels, ecommerce and technology FY15 FY16 FY17 FY18 FY19 V New stores and clubs Remodels and customer initiatives Supply chain ecommerce and tech Maintenance and other

14 Capital by segment $12.2 CapEx spending by type ($ in billions)* *Excludes acquisitions $11.5 $10.6 ~$11 ~$11 V FY15 FY16 FY17 FY18 Forecast FY19 Projection Walmart U.S. International Sam's Club Corporate and support

15 Deploying resources strategically Acquisitions Partnerships Divestitures Shopping malls in Chile Tests

16 Key takeaways Executing our strategy and delivering results Delivering balanced and efficient growth: comp sales vs. new stores Operate with more discipline and continued focus on operating expenses Continue thoughtful capital allocation Financial strength

17 Walmart uniquely positioned to win Win with customers Win with shareholders

Brett Biggs EVP & Chief Financial Officer Walmart Inc.

Raymond James Institutional Investors Conference Brett Biggs EVP & Chief Financial Officer Walmart Inc. March 6, 2018 Forward Looking Statements Walmart includes the following cautionary statement so that