Charles Holley Chief Financial Officer. Financial Overview

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2 Charles Holley Chief Financial Officer Financial Overview 1

3 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 CAGR 1 12% 20-year CAGR 1 14% Note: Sales, operating income and EPS numbers are for FY12; Images depict FY92 - FY12 2

4 Last year s headlines Grow comp sales Leverage operating expenses Deliver strong returns to shareholders 3

5 Comps will play a bigger part in growth Balanced Sales Growth FY 08 Comp New FY 12 FY 13E Comp New Future 4

6 Business is even stronger this year $419 Growth Sales ($ in billions) $444 $466 - $475 1H FY13 revenue growth 6.5% Strong comps Enhanced customer focus FY 11 FY 12 FY 13E 5

7 Business is even stronger this year Growth Sales ($ in billions) 19.42% Leverage SG&A 2 % Sales Leverage goal: > 100 bps by FY 17 $419 $444 $466 - $ % On track to achieve goal for FY 13 FY 11 FY 12 FY 13E FY 11 FY 12 FY 13E Note: FY 13 is not drawn to scale 6

8 Business is even stronger this year $419 Growth Sales ($ in billions) $444 $466 - $475 Leverage SG&A 2 % Sales 19.42% 19.21% Returns Cash from operations ($ in billions) $10.0 $9.7 $11.6 FY 11 FY 12 FY 13E FY 11 FY 12 FY 13E 1H FY 11 1H FY 12 1H FY 13 Note: FY 13 is not drawn to scale 7

9 Disciplined approach keeps us on track to reach leverage goal SG&A 2 % of sales ~50 bps > 100 bps Optimizes performance and efficiency Accelerates the productivity loop across the company FY 10 FY 11 FY 12 FY 13E Note: FY 13 and FY 17 are not drawn to scale FY 17E Drives greater P&L performance 8

10 Leverage optimizes performance and efficiency On-Shelf Availability Associate Productivity Supply Chain Global Services Increase sales Decrease SG&A Improve operating income 9

11 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 10

12 Growth initiatives aligned with capital and expense discipline $466 - $475 Sales ($ in billions) $444 $419 FY 11 FY 12 FY 13E Future Strong asset base 11

13 Investment in Global ecommerce complements stores Bricks & mortar Global ecommerce 12

14 Productivity loop supports EPS growth Earnings per share EDLP Share repurchase $2.72 $3.15 $3.73 $4.54 EDLC Growth $1.44 $2.03 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13E 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 FY 17E 13

15 Free cash flow 3 continues to be strong Cash from operations Free cash flow 3 FY11 FY 12 FY 13E FY11 FY 12 FY 13E Note: FY 13 not drawn to scale 14

16 Cash priorities deliver shareholder value Cash From Operations + Net Debt Growth 1. Grow the business Organic growth Acquisitions 2. Dividends 3. Share repurchases AA-rated balance sheet 15

59 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 Note:

17 Consistent dividend growth Annual dividend per share 10-year CAGR 1 18% $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 Note: FY 13 is based on declared dividend; WMT dividend payout ratio is 35% of earnings per share 16

10 FY 11 FY 12 1H FY13 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 1H FY 13

18 Strong returns to shareholders FY 07 1H FY 13 Over $71B returned Dividends Issued $26B Shares Repurchased $45B 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 17

19 One of the highest ROIs 4 in retail 25% 20% 15% 10% 5% 0% Note: Return on investment is calculated for each retailer s latest fiscal year filing using the Walmart ROI calculation 18

20 19 Financial Projections

21 Capital expenditures 5 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 $13.5B ~$ $13.5B * Immaterial difference compared to WMT 2012 Annual Report ** Guidance reissued in Q2 FY 13 20

22 Capital expenditures 5 FY 12 Actual* FY 13 Guidance** FY 14 Guidance FY % 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 $13.5B ~$ $13.5B ~$ $13.0B -4.2% * Immaterial difference compared to WMT 2012 Annual Report ** Guidance reissued in Q2 FY 13 *** FY 13 - FY 14 capex 5 growth rates based on midpoint of specified range 21

23 FY14 Guidance Financial Priorities Growth Leverage Metrics FY 14 Guidance FY14 Sales growth 5-7% $23B - $33B Square footage growth 6 3-4% SG&A growth 2 Operating income growth < Sales > Sales Returns Free cash flow 3 Strong 36M sq. ft. 40M sq. ft. 22

24 Key takeaways 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 23

25 24 APPENDIX

26 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) 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, 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 Paym ents for property and equipm ent ($13,510) ($12,699) Free Cash Flow $10,745 $10,944 25

27 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 The calculation for fiscal year 2012 ROI appears in the Form 10-K filed by Wal-Mart Stores, Inc. on March 27, 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. 26

28 Notes (Dollar amounts in millions) CALCULATION OF RETURN ON INVESTMENT Numerator Operating income $ 26,558 $ 25,542 + Interest income 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% Numerator CALCULATION OF RETURN ON ASSETS 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% (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 27

29 Notes 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. 28

Charles M. Holley, Jr.

Charles M. Holley, Jr. Executive Vice President and Chief Financial Officer Simple philosophy Our philosophy has always been simple: We are agents for our customers. Sam M. Walton Discount retail Membership