10/15/2014. David Cheesewright. President and CEO Walmart International

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2 David Cheesewright President and CEO Walmart International

3 International leadership team Brett Biggs Finance Scott Price Strategy & Development Shelley Broader UK, Canada, Africa Enrique Ostalé Latin America Maggie Sans Corporate Affairs Daniel Trujillo Compliance Tim Cheatham Legal

4 International serves 120M customers weekly

5 Be in good businesses and be the best-in-class retailer Be in good businesses Be the best-in-class retailer Invest in good Markets Channels Formats Growth drivers Operational excellence Trust as a differentiator Portfolio Positioning Performance Playing in the right markets formats Playing in the right channels categories Capturing share Optimizing portfolio

6 Be in good businesses $5.5T global retail growth opportunity 1 (FY14-19 growth, $ in trillions) US China Other WMT markets Non-WMT countries Mom & Pop e-commerce Supermarkets Hypermarkets Apparel Electronics Pharmacy Discount Convenience Others Food & consumables Apparel Beauty Electronics Home Toys Others Markets Formats Categories 1 Euromonitor Retail Sales modern, formal retail excluding auto and food service

7 International priorities Be in good businesses Be the best-inclass retailer Drive comp sales via price leadership and category development Strategic priorities Accelerate e-commerce globally Build a platform for sustainable growth in China Rejuvenate Mexico Turn around Brazil Enablers Be the lowest cost operator Develop world-class global talent Trust as a differentiator in all markets

8 Drive comp sales via price leadership Journey to EDLP Price leadership % Price gap EDLP Price gap measurement Price leadership In-store communication EDLC Price guarantee

9 International

10 Drive comp sales via price leadership Journey to EDLP Price leadership % Price gap EDLP Price gap measurement Price leadership In-store communication EDLC Price guarantee

11 Build robust retail foundations Category innovation Merchant tools Customer insights Baby in Chile Buying Pricing Seasonal Halloween in the UK Gas stations in the UK & Clinics in Canada Modular planning Replenishment/ availability

12 Win in food Fresh food excellence Private brand acceleration Food and consumables private brand penetration 1 Leading WMT PB offer 1 Sourcing Opportunity to develop and leverage PB portfolio 2 Conversion 3 In-store process 1 Last 12 months of data, ended May 2014

13 Accelerate e-commerce to solve customer needs Grocery home shopping Online general merchandise Leverage ASDA s success

14 Lowest cost to operate Workforce management Supply chain Business discipline Energy savings Operating structure Inventory management

15 Talent and trust World-class talent Most trusted retailer Global leaders Efficient organization Community World-class compliance Best talent Best environment Organizational alignment Standardization Automated tools Strengthen relationships with customers and stakeholders Lead on social and environmental issues Continue good progress Key focus areas: Anti-corruption Licenses and permits Health and safety

16 Build a platform for growth in China Retail foundations Focused growth Grow sales Operate for less Sell for less Buy for less Build trust Integrate physical and digital Quality control 质量控制团队

17 Rejuvenate Mexico Retail foundations Continued growth Grow sales Operate for less Sell for less Buy for less Fix Sam s Club Accelerate e-commerce

18 Execute turnaround program in Brazil Build basic foundations Disciplined growth Leadership and talent Integration Productivity loop Price leadership Compliance Improved assortment

19 Redefine value retail in the UK Price leadership Compelling offer Lowest cost to operate Increase access and reach

20 Strengthen position in Canada Supercentre innovation Compelling food offer Lowest cost to operate Private Brands Fresh Online opportunity

21 Brett Biggs Executive Vice President and Chief Financial Officer Walmart International

22 FY15 1H Solid financial performance Growth 1 (% change from LY) Performance highlights 7.5% 2 Improved comp growth 4.3% 2 Grew operating income faster than sales Expanded e-commerce in key markets -1.4% Increased focus on working capital Net sales Operating income 1 Growth rates calculated on a constant currency basis 2 These figures are non-gaap financial measures. Our reconciliations can be found at

23 Disciplined growth New store square footage (in millions) 24.1 Net Gross FY12 FY13 FY14 FY15E FY16E 1 FY12 includes the acquisition of Netto stores in the UK 2 FY13 includes the acquisition of Zeller stores in Canada

24 Position capex for the near future Capex % of International total New stores 1 Large formats Small formats Remodels/ maintenance FY12 FY15E FY16-18E e-commerce Distribution centers Leverage Other 2 1 New stores also includes expansions, relocations, and in-box conversions 2 Other includes home office, bank, sustainability and JV Canada Smart Centres

25 Create a more balanced portfolio Sales growth (% of total International) Op income growth (% of total International) Big 3 markets Other markets CAM FY13-15 FY16-18E FY13-15 FY16-18E

26 Portfolio framework Guiding principles Deliver long-term value for customers and shareholders Be in good businesses Accelerate the strategy Simplify the business Focus on key initiatives Recent portfolio actions Sold VIPS restaurants in Mexico Reset India Closed stores in China & Brazil Purchased Chile minority interest More balanced financial portfolio

27 International priorities Be in good businesses Be the best-inclass retailer Drive comp sales via price leadership and category development Strategic priorities Accelerate e-commerce globally Build a platform for sustainable growth in China Rejuvenate Mexico Turn around Brazil Enablers Be the lowest cost operator Develop world-class global talent Trust as a differentiator in all markets

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