Doug McMillon

President and CEO of Walmart International

1

Today’s presenters

2

President & CEO,

Walmart

International

Doug

McMillon

Cathy

Smith SVP, CFO and

Strategy,

Walmart

International

President & CEO,

Walmart Latin

America

Eduardo

Solorzano

Scott

Price

President & CEO,

Walmart

Asia

David

Cheesewright

President & CEO,

Walmart

EMEA/Canada

Strong performance in the first half of the year

3

Sales growth

Operating income

Operating income

10.5%

18.7%

12.3%

Financial Performance

Sales growth 15.7%

Reported

Reported without currency impact

Delivering on commitments

4

First half of FY13

Grew faster than market in all except

China

Leveraged expenses

Disciplined capital investment –

slowed growth to ensure quality

Last year's key takeaways

Aggressive growth with discipline

Prioritize emerging markets

Expense leverage

EDLP / EDLC

Powered by Walmart

Returns will improve

Operating income grew faster than

sales

ROI improving excluding acquisitions

Outperformed market except in China

5

37.2%

13.3% 14.7%

11.2%

8.9%

2.9%

13.1%

5.0%

6.9%

26.1%

12.5% 13.8%

10.1%

15.1%

0.5%

10.2%

2.1% 2.7%

Argentina Brazil Chile Mexico & Central America

China Japan South Africa Canada UK

WMT Growth

Market Growth

Latam Asia EMEA & Canada

1H of FY13

Customers seek value

6

Chinese internet users to

overtake English language users

by 2015

Portfolio drives growth and returns

7

Our business model

8

Common operating principles Merchandise driven

High performance

talent

EDLP EDLC

Global leverage Lead on social and environmental issues

Respect for the individual

Service to our customers

Act with integrity

Striving for excellence

Common values and behaviors

Common operating principles

Our Purpose

Save money Live better

9

Brazil: Phases of development

Greenfield 1995 – 2003

Growth through acquisitions 2004 – 2006

Accelerated store growth

2007 – 2010

Integration, simplification and EDLP 2010 – Today

Integration, simplification and EDLP

Implementing our business model

10

Internally focused Customer focused

High-low EDLP

Different systems Integration

From To

Inconsistent

execution

Lacked process

maturity

Disciplined execution

Applied best practices

Process maturity – merchandise flow

11

Productivity Replenishment

Modular integrity Front end Maturity

curve

Lacking foundational processes

Foundation exists

Aligned, improvement needed for efficiency

Repeatable results

Consistent processes, metrics

0

1

4 3

2

Back room

Delivering our business model

12

Brazil Pacembu Video

Brazil integration: half-way through a three-year plan

13

Merchandising

• No standardized modular process

• Multiple points of data entry

• Standardized modular process

• Single point of data entry

Merchandising

Finance Finance

• Three separate financial systems • One common financial system

Operations Operations • Multiple operating systems

• High percentage of manual replenishment

• One common operating system

• Automated replenishment

Supply Chain Supply Chain

• Global operating platform

• Centralized planning and forecasting

• Numerous legacy systems

• Decentralized inventory management

From To

Our strategy is working

14

Market share Expenses

Brazil 1H FY13 Performance

Gains in market

share

Reduction in

expenses

LY TY LY TY

Source: Nielsen

Replicating across markets to drive growth and returns

15

Common operating principles Merchandise driven

High performance

talent

EDLP EDLC

Global leverage Lead on social and environmental issues

Respect for the individual

Service to our customers

Act with integrity

Striving for excellence

Common values and behaviors

Common operating principles

Our Purpose

Save money Live better

Winning the next 12 months

16

Deeper talent

Excellence in compliance

• EDLP transition Disciplined growth

• New store execution • eCommerce capabilities

Lead in social and environmental issues

• Leverage expenses

Improve returns

• Capital discipline

Growth

Returns

Latam

17

Chile Argentina

Mexico

& CAM Brazil

Latam

18

Chile Argentina

Mexico

& CAM Brazil

Latam

19

Mexico

& CAM Brazil

Chile Argentina

Latam

20

Chile Argentina

Mexico

& CAM Brazil

Leveraging eCommerce knowledge & assets

21

From Brazil: Endless aisle

From Japan: Virtual shelf

From Argentina: Mobile scan

From Bentonville: Global fulfillment negotiations with

FedEx

From UK: Grocery home

delivery

From San Bruno: Digital assets

& page layout

Growth

Returns

Asia

22

India

Japan

China

Asia

23

India

Japan

China

Asia

24

India

Japan

China

Asia

25

Japan

India

China

Building a foundation for growth in China

26

Customer Improved assortment, merchandising expertise

Talent:

• Growth

• Retention

Investment in talent and development

Excellence in compliance Compliance

Real

estate Disciplined capital investment

Leveraging global processes Operations

Growth

Returns

EMEA & Canada

27

Canada Sub-Saharan

Africa UK

EMEA & Canada

28

Canada Sub-Saharan

Africa UK

EMEA & Canada

29

Canada Sub-Saharan

Africa UK

EMEA & Canada

30

Canada Sub-Saharan

Africa UK

SG&A % of sales

31

• Sponsorship

• Branding

• Visibility

• Governance

• Financial accountability

• Integration

EDLC: A best practice from the UK

WO4L

FY08 FY09 FY10 FY11 FY12 FY13e

32

ASDA Tablet Video

Innovating to operate for less

33

Driving growth and returns

0%

33

Core Principles

• Grow faster than

the market

• Grow operating

income faster

than sales

• Leverage

expenses

FY

13

RO

I FY

14

RO

I FY

15

RO

I FY

16

RO

I

Nominal GDP Growth (2012-15)

International ROI goal (100-200 bps improvement FY13-16)

Bubble size = FY16 invested capital

Capital discipline

34

40%

60%

(FY13- FY16)

Developed Emerging

Capital expenditures

203

322-326

257 281 304

14 20

21 23

21-23 20-22

FY08 FY09 FY10 FY11 FY12 FY13E FY14P FY14P

(in millions)

+119-123 million sq. ft. ~8.4% CAGR between

New store sq. ft.

We remain disciplined with capital

35

Construction

Efficient engineering

• Less customization

• Repeatable layout

• Concrete floors

Formats

Format expertise

& evolution

• Invest in performing

formats

• Stop or slow

underperforming formats

Fixtures &

equipment

Leverage

• LED lighting

• Refrigeration

• Goods not for resale

M&A as a growth tool

Expand within existing markets

Acquire capabilities

Selectively evaluate

& enter in new markets

1

2

3

36

Capital expenditures update

37

CapEx Detail

FY12

Actual

FY13

Estimate

(Original)

FY13

Estimate

(Revised)

FY14

Projection

New Stores $3.0B $2.8-$3.1B $2.5-$2.7B $2.2-$2.5B

Remodels $0.5B $0.4B $0.6B $0.7B

Logistics $0.3B $0.5B $0.4B $0.6B

Other $1.5B $1.3-$1.5B $1.1-$1.3B $1.0-$1.2B

Total Walmart International $5.3B $5.0-$5.5B $4.6-$5.0B $4.5-$5.0B

Sq. Ft. Detail FY12

Actual

FY13E (Original)

FY13E

(Revised)

FY14

Projection

Additional Walmart Intl. Sq. Ft. 23M 30-33M 21-23M 20-22M

Key takeaways

38

Deeper talent

Excellence in compliance

• EDLP transition Disciplined growth

• New store execution • eCommerce capabilities

Social and environmental leadership

• Leverage expenses

Improve returns

• Capital discipline

Appendix

39

Appendix

40

• Slide 5: FY13 H1 sales growth vs. retail market

–Sources: Market Growth - Argentina: Nielsen, Brazil (Gross Sales Overall): Abras; Canada:

ATRS; China: Government official statistics; Chile: INE; Japan: METI; Mexico: ANTAD and UK:

Kantar Worldpanel data; Walmart Growth – Walmart International Finance, except for UK

(Source Kantar Worldpanel)