Walmart U.S. Today s speakers

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2 Walmart U.S. Today s speakers Bill Simon President and CEO Duncan Mac Naughton EVP, Chief Merchandising and Marketing Officer Gisel Ruiz EVP, Chief Operating Officer 1

3 The strategy is working Strong progress over the last 12 months Price investment through productivity improvements Merchandising improvements Multi-channel strategy leveraging existing assets Market share-driven real estate strategy 2

4 Strong 1 st half sales and profit Strategic Initiatives Balanced Growth Seasonal Execution Strong Financial Performance Sales Growth Operating Income +4.8% +6.6% Consistent Comp Growth ~$6.1B Sales Comp Traffic Comp +2.4% +0.7% ~$3.0B Note: Comps are on a basis for the 26-week period ending July 27,

5 Leveraging expenses and investing in price Walmart U.S. Gross Margin and SG&A as Percentage of Sales Gross Margin SG&A On course to invest $2B by end of FY14 04 FY04 05 FY05 06 FY06 07 FY07 FY08 FY09 FY10 FY11 FY12 FY

6 Well-positioned for success Executing our merchandise strategy Driving the productivity loop Redefining seamless access for our customers Market share-driven real estate strategy 5

7 Executing our merchandise strategy Traffic EDLP Broad and local assortment + 0.7% ~24M more transactions Market share + 70 bps* Note: Comps are on a basis for the 26-week period ending July 27, 2012 *Source: Nielsen, for the 26-week period ending September 15, Share gains represent food, consumables, and H&W (OTC) only 6

8 EDLP is the cornerstone Committed to basket savings Ad match defends against promotions Never knowingly get beaten Basket challenge localizes message 7

9 Grocery Delivering a broad, localized assortment Basics destination Book ends Relevant brands Local assortment General Merchandise 9

10 General merchandise capitalizing on positive store traffic General Merchandise Underwear 9.8% Microwaves 14.8% Sheets 8.8% General Sports 5.6% Hunting 24.8% Note: Comps are on a basis for the 26-week period ending July 27,

11 Consumer insights driving key strategies Performance lens Dollar share U.S. food example Sharpening prices Refining assortment Food Dry grocery Frozen Juices Poultry Fish 11

12 Financial Health Expanding service offerings Providing solutions Pharmacy partnerships Screenings / immunizations Pharmacy partnerships 12

13 Driving cost of goods efficiencies Upstreaming Joint planning Global sourcing Onshoring Production Retail Partnering with suppliers Reducing cost Increasing flexibility 13

14 Confident about the back half! Strong BTS season Aug Sept Oct Nov Dec Jan 14

15 15 Deep on the items that matter

16 Number one share of voice Television Radio Multicultural Circular FSIs Catalog Digital Social Mobile Search 16

17 Social media for real time messaging Over 2 billion holiday impressions 17

18 Well-positioned for success Executing our merchandise strategy Driving the productivity loop Redefining seamless access for our customers Market share-driven real estate strategy 19

19 Disciplined focus on the productivity loop Efficiency improvements in all areas of the business Store operations Front end Sales floor Backroom Supply chain Transportation fleet Distribution centers Sourcing 20

20 Associate engagement is even stronger Greater than 80% of hourly associates received bonuses Over 162,000 Associate promotions Over 1,000,000 associates and family members covered by healthcare plans Comprehensive affordable healthcare at $17 a paycheck 5,000,000 applications Received last year Notes: Bonuses as of Q1 and Q2 of FY13; Promotion data applies to the last four quarters; Benefits based on current enrollment. 21

21 Customer satisfaction continuing to increase Customer Satisfaction Scorecard Fast service Merchandise Price value Source: Internal customer satisfaction survey FY13 YTD scores highest in 4+ years 22

22 Significant leverage upside exists Backroom Front end Sales floor 23

23 On-shelf availability (OSA) enhancements increasing productivity and sales From auditing 1,200 key items to tracking OSA for the entire sales floor 24

24 How OSA 2.0 works Example: Hourly sales of Tide in 3 similar stores Store 1 Store 2 Store 3 An alert will be sent to Store 1 to stock product Time 12:00am 12:00am 25

25 Best in class supply chain productivity Asset productivity In the past 6 years» 400+ new stores opened Leverage» Added over $25B in sales» No new distribution centers DCs owned & operated by WMT FY08 FY13E Note: Distribution Centers also service Sam s Club & Dotcom 26

26 Best in class supply chain productivity Asset productivity Fleet productivity Savings: ~$120M* Leverage Leverage Miles DCs owned & operated by WMT FY08 FY13E FY11 FY12 FY13E Note: Distribution Centers also service Sam s Club & Dotcom; *Actual/Estimated savings for a 3-year time frame (from FY11-FY13E) 27

27 Sustainability initiatives driving cost savings Solar projects Fuel cells Wind energy Zero waste Over $150M benefit to the bottom line in FY13E 28

28 Well-positioned for success Executing our merchandise strategy Driving the productivity loop Redefining seamless access for our customers Market share-driven real estate strategy 29

29 Providing seamless access site to store as soon as today Setting the foundation current generation of multichannel store fulfillment pay with cash in-store mode 30

30 Improving the customer experience Creating relevant, personalized customer experience that builds loyalty scan & go polaris search digital ads 31

31 Launching same day delivery Same day delivery test markets SF / San Jose Minneapolis Philadelphia DC area 32

32 Well-positioned for success Executing our merchandise strategy Driving the productivity loop Redefining seamless access for our customers Market share-driven real estate strategy 33

33 Market share-driven real estate strategy Grow supercenters in core markets Accelerate small formats Focus on capital efficiency 34

34 Delivering more stores through capital efficiency Development costs Drivers of lower cost»location strategy»reduce change orders & fees»eliminate elaborate exteriors and interiors when possible FY14 FY15 FY16»Innovation 35

35 Growing share with supercenters Supercenters» Continued strong returns» Substantial growth opportunities» Focus on core markets 122 Unit counts ~125 ~125 FY12A FY13E FY14E 36

36 Market Share Supercenters remain primary growth vehicle Core markets for supercenter growth Core markets» Markets with above-average market share and profitability Store Profit Contribution 37

37 WMT small formats offer competitive advantage Channel Low Prices Fresh Food Pharmacy Quality Perception Dotcom Capability Dollar Drug Hard Discount Regional Grocery WMT Small Formats 38

38 Small formats provide flexibility Size Capital Sales Competes with: Dollar channel Drug channel Regional grocers 39

39 Walmart Express Express» 12 stores by end of FY13» First half FY13 sales above plan» Continuing to apply learnings» Store density test under way 40

40 500+ Neighborhood Markets by FY16 Representing ~$10B in sales Neighborhood Markets» Over 240 stores by end of FY13» FY13 first half comp ~ 5.0%» Opportunity to further accelerate Note: Comps are on a basis for the 26-week period ending July 27,

41 Robust pipeline in place Small Formats Annual New Square Footage (000s) ~4,000 ~3,000 ~40 ~700 FY11A FY12A FY13E FY14E 42

42 Walmart U.S. FY13/FY14 capital update CapEx Detail FY12 Actual FY13 Estimate FY14 Projection New Stores $3.5 $4.1 - $4.3 $4.0 - $4.2 Remodels $1.3 $0.7 - $0.8 $0.6 - $0.7 Logistics $0.6 $0.6 - $0.7 $0.4 - $0.5 Other $0.8 $0.6 - $0.7 $0.5 - $0.6 Total Walmart U.S. $6.2 $6.0 $6.5 $5.5 $6.0 Total Walmart U.S. Unit Growth* 149 ~205 ~ Additional Walmart U.S. Sq. Ft. 9.6M 14M 15M 15M 17M *Includes Supercenters, Discount Stores, and Small Formats ($ in billions) 43

43 Walmart U.S. key takeaways Ready and excited about Q4 Executing our merchandise strategy Driving the productivity loop Redefining seamless access for our customers Disciplined capital efficiency Accelerating small format rollout 44