Sam's Club Leadership Team

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2 Sam's Club Leadership Team Rosalind Brewer President & CEO Sam s Club Todd Harbaugh, EVP, Operations Charles Redfield EVP, Merchandising Ann Bordelon SVP, Finance John Boswell SVP, Marketing, Insights & ecommerce Whitney Head SVP, General Counsel & Asset Protection Ismat Mirza SVP, People Mike Turner SVP, Membership Tim Yatsko SVP, Replenishment & Planning 1

3 Strengthening focus on Member value Everyday Needs Simple Solutions Wow Excitement Merchandise relevance In-club efficiency Superior value to our Members Member engagement 2

4 Committed to Savings Made Simple framework Differentiated Merchandise Lasting Member Relationships Superior Value & Growth Efficient Engaging Experience Anytime Anywhere Talent & Continuous Innovation 3

5 Strong 1 st half performance Data thru July 31 (excludes fuel) % Growth rates 1H FY13 Net sales 5.8% Op. inc. 9.3% Comp 1H FY12 1H FY13 4.6% 4.7% 4

6 Price and quality investments deliver results Fresh meat +7% Dry grocery +9% Apparel +12% Baby care +12% 5

7 Innovation drives operational efficiency In-Club Logistics Capital Club wage expense % of Sales DC operating expense % of Sales Average cost per remodel 6

8 Engaging Members through digital platforms Digital sales Traffic Orders 7

9 Financial scorecard Sales Gross profit rate SG&A as % of sales Membership income Operating income 8

10 Financial priorities unchanged & aligned GROWTH LEVERAGE RETURNS Superior value through merchandise Operational productivity Membership fee income Accelerated growth plan Leveraging digital 9

11 Focused on enhancing Member value 4 1 Enhancing our Membership offering Differentiated Merchandise Delivering great merchandise at a superior value Lasting Member Relationships Superior Value & Growth Efficient Engaging Experience Anytime Anywhere 3 Leveraging ecommerce and digital capabilities Talent & Continuous Innovation 2 Driving club productivity and experience 10

12 Focused on enhancing Member value Enhancing our Membership offering 4 1 Differentiated Merchandise Delivering great merchandise at a superior value Lasting Member Relationships Superior Value & Growth Efficient Engaging Experience Anytime Anywhere 3 Leveraging ecommerce and digital capabilities Talent & Continuous Innovation 2 Driving club productivity and experience 11

13 12 The right merchandise for Members

14 Merchandise drives value Artisan Fresh Rotisserie Chicken Mighty Pop 50-lb Bag Assorted Pie Sampler Sharp 90 LED Television $4.88 $21.98 $11.98 $9,998 13

15 14 Delivering what our Members want

16 Merchandising strategy drives Member value 1 Pricing 2 3 Relevant and Exciting Merchandise Business Member Considerations The #1 reason our Members join is Price 1 Member Ranking Reasons Why Members Join Sam s Club?? General Merchandise Newness and Innovation Differentiated Assortment Allowing Small Business Owners to: Save Time and Money 1 2 Thought prices would be lower than other stores Wanted the option to buy in bulk Everyday Needs Wow Enjoy Sustainable Products 3 Interested/curious about shopping there Simple Solutions Excitement Access Solutions to Make Their Jobs Easier 1. Sam s Club Demand Landscape (2012), The Cambridge Group Analysis 15

17 Focused on enhancing Member value Enhancing our Membership offering 4 1 Differentiated Merchandise Delivering great merchandise at a superior value Lasting Member Relationships Superior Value & Growth Efficient Engaging Experience Anytime Anywhere 3 Leveraging ecommerce and digital capabilities Talent & Continuous Innovation 2 Driving club productivity and experience 16

18 Driving productivity through innovation Self Checkout Convertible register Mobile checkout Tablet register Step 4 Step 3 Step 2 Step 1 17

19 Member experience and engagement enhanced by innovation All lanes open all the time with assisted checkout 18

20 Member experience is first class (2012) Rank Company 1 Sam s Club 2 Publix 3 A Credit Union 4 Chick-fil-A 5 Subway 6 Starbucks 7 H.E.B. 8 Winn-Dixie 9 Aldi 10 Sonic Drive-in Highest in Customer Satisfaction with Mass Merchandiser Pharmacies -J.D. Power and Associates Sam s Club received the highest numerical score among mass merchandiser pharmacies in the proprietary J.D. Power and Associates 2012 National Pharmacy Study SM. Study based on 12,764 total responses, and measures 11 mass merchandiser pharmacies. Proprietary study results are based on experiences and perceptions of consumers surveyed July-August Your experiences may vary. Visit jdpower.com 19

21 Focused on enhancing Member value Enhancing our Membership offering 4 1 Differentiated Merchandise Delivering great merchandise at a superior value Lasting Member Relationships Superior Value & Growth Efficient Engaging Experience Anytime Anywhere 3 Leveraging ecommerce and digital capabilities Talent & Continuous Innovation 2 Driving club productivity and experience 20

22 Digital engages more Members, more often Online traffic by device Traffic growth by device 72% 17% 11% 21

23 Digital integrates club experience, offers expanded access While shopping Prior to the club After shopping 22

24 Focused on enhancing Member value Enhancing our Membership offering 4 1 Differentiated Merchandise Delivering great merchandise at a superior value Lasting Member Relationships Superior Value & Growth Efficient Engaging Experience Anytime Anywhere 3 Leveraging ecommerce and digital capabilities Talent & Continuous Innovation 2 Driving club productivity and experience 23

25 Membership trends continue to improve Base Renewals Business signups Upgrades 24

26 New Membership pilot: testing membership value; fee options New Membership pilot in Texas markets highlighting more for our Members Effective in 76 clubs as of Oct. 8 th 25

27 New Membership pilot: three membership types, fee increase Sam's Plus $100 (no fee change) Sam's Savings $40 to $45 Sam's Business $35 to $45 26

28 27 New Membership pilot: more savings for all Members

29 New Membership pilot: Plus membership receives cash rewards $10 cash rewards for every $500 spent 28

30 Growth, leverage and returns remain financial priorities GROWTH LEVERAGE RETURNS Superior value through merchandise Operational productivity Membership fee income Accelerated growth plan Leveraging digital 29

31 Accelerating new club growth Sam s new club growth

32 Capital expenditures update and forecast CapEx Detail FY12 Actual FY13 Projection FY14 Projection Total Capital Spend $0.8B ~$1B ~$1B New Clubs Relocation and Expansion Remodel Projects

33 Savings Made Simple framework drives strategy Lasting Member Relationships Differentiated Merchandise Superior Value & Growth Talent & Continuous Innovation Efficient Engaging Experience Anytime Anywhere Strong performance Strategy remains consistent Member driven merchandising In-club efficiency Accelerated growth plan Piloting new Membership fee / benefits structure New club growth 32

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