Walmart Inc. · NASDAQ:WMT
Walmart — Q3 FY16 Earnings Presentation
13 slides from Walmart's earnings presentation, Nov 17, 2015
Slide 1: Q3 FY16 Financial presentation to accompany management transcript
Q3 FY16 Financial presentation to accompany management transcript November 17, 2015
Slide 2: Wal-Mart Stores, Inc. consolidated results
Wal-Mart Stores, Inc. (Amounts in millions, except share data) Q3 $ Δ1 % Δ1 YTD $ Δ1 % Δ1 Total revenue $117,408 -$1,593 -1.3% $352,463 -$1,623 -0.5% Total revenue, constant $122,356 $3,355 2.8% $364,913 $10,827 3.1% currency2 Net sales $116,598 -$1,478 -1.3% $349,930 -$1,649 -0.5% Net sales, consta
Slide 3: Wal-Mart Stores, Inc. margins, tax rate and ROI
Wal-Mart Stores, Inc. Q3 bps Δ1 YTD bps Δ1 Gross profit rate 25.0% 58 bps 24.6% 21 bps Operating expenses as a percentage 20.8% 91 bps 20.3% 69 bps of net sales Effective tax rate 33.9% 207 bps 33.5% 21 bps Debt to total capitalization2 NP NP 39.7% -150 bps Return on investment3,4 NP NP 15.9% -50 bp
Slide 4: Wal-Mart Stores, Inc. receivables, inventories, payables
Wal-Mart Stores, Inc. (Amounts in millions) Q3 $ Δ1 % Δ1 Receivables, net $5,012 -$1,079 -17.7% Inventories $50,706 -$795 -1.5% Accounts payable $40,553 $897 2.3% 1 4 Change versus prior year comparable period
Slide 5: Cash flow, dividends and share repurchases
Wal-Mart Stores, Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow $15,005 -$465 Capital expenditures $8,223 -$20 Free cash flow2 $6,782 -$445 (Amounts in millions) Q3 % Δ1 YTD % Δ1 Dividends $1,571 1.7% $4,728 1.9% Share repurchases3 $437 432.9% $1,720 69.5% Total $2,008 23.4% $6,448 14.0% 1
Slide 6: Walmart U.S.
Walmart U.S. (Amounts in millions) Q3 Δ1 YTD Δ1 Net sales $72,712 3.8% $216,916 4.0% Comparable store 1.5% 100 bps 1.4% 130 bps sales2 • Comp traffic 1.7% 240 bps NP NP • Comp ticket -0.2% -140 bps NP NP E-commerce impact3 ~0.15% NP NP NP Neighborhood Market4 ~8.0% NP NP NP Gross profit rate Increas
Slide 7: Walmart U.S. category comps
Walmart U.S. Category Comp Grocery1 + low single-digit General merchandise2 - low single-digit Health & wellness + mid single-digit Apparel + mid single-digit Home + mid single-digit 1 Includes food and consumables 2 Includes entertainment, toys, hardlines and seasonal 7
Slide 8: Walmart International
Walmart International (Amounts in Constant Constant millions) Reported currency1 Reported currency1 1 Q3 Δ2 Q3 Δ2 YTD Δ2 YTD Δ2 Net sales $29,811 -11.4% $34,731 3.2% $90,726 -9.2% $103,075 3.1% Gross profit rate Increase 52 bps NP NP Increase 29 bps NP NP Operating $1,338 -6.4% $1,552 8.5% $3,685 -1
Slide 9: Walmart International country results
Walmart International 1,2 Comp3 Net Gross Country profit sales3 Sales Traffic Ticket rate3 United Kingdom4 -4.6% -4.2% -0.4% -3.2% Increase Walmex5 5.9% —% 5.9% 7.4% Increase Canada 4.3% 1.9% 2.4% 5.7% Increase Brazil -0.6% -3.1% 2.5% -0.4% Increase China -0.7% -6.9% 6.2% 2.9% Decrease 1 Results are
Slide 10: Sam's Club
Sam's Club (Amounts in Without fuel1 With fuel Without fuel1 With fuel millions) Q3 Δ2 Q3 Δ 2 YTD Δ 2 YTD Δ2 Net sales $12,935 1.6% $14,075 -2.2% $38,693 1.9% $42,288 -2.0% Comparable club 0.4% — bps -3.3% -360 bps 0.7% 70 bps -3.1% -310 bps sales3 • Comp traffic -0.3% -50 bps NP NP NP NP NP NP • Co
Slide 11: Sam's Club category comps
Sam's Club Category Comp Fresh / Freezer / Cooler - low single-digit Grocery and beverage + low single-digit Consumables + low single-digit Home and apparel + low single-digit Technology, office and entertainment - mid single-digit Health and wellness + mid single-digit 11
Slide 12: Guidance
Guidance Total Walmart Sam's company FY16 Q4 EPS: U.S. comps 13-week period1: Club comps 13-week period1: • $1.40 - $1.55 • around +1.0% • Flat to +1.0% Full Year EPS: • $4.50 - $4.65 1 13-week period from October 1, 2015 through January 31, 2016, compared to 13-week period ended January 30, 2015 12
Slide 13: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Reconciliations for our non-GAAP financial measures (ROI, free cash flow, constant currency and Sam’s Club comparable measures) • Unit counts & square footage • Comparable store sales • Terminology • FY 16 earnings dates 13