Slide 1: Financial presentation to accompany management commentary Q1 FY2022
Financial presentation to accompany management commentary Q1 FY2022
Slide 2: Safe harbor and non-GAAP measures
Safe harbor and non-GAAP measures This presentation contains statements or may include or may incorporate by reference, statements that may be deemed to be "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Act"), that are intended
Slide 3: Fiscal 2022 Q2 and full-year guidance
Fiscal 2022 Q2 and full-year guidance The following guidance reflects the company’s updated expectations for fiscal year 2022 and is provided on a non-GAAP basis as the company cannot predict certain elements which are included in reported GAAP results, including the impact of foreign exchange trans
Slide 4: Walmart Inc. - Q1 FY22
Walmart Inc. - Q1 FY22 Dollars in billions, except per share. Change is calculated as the change versus the prior year comparable period Operating expense as a Total revenue Net sales percentage of net sales2 Effective tax rate $138.3 $137.2 20.5% 26.9% +2.7% +2.6% +3 bps Total revenue, constant Net
Slide 5: Walmart Inc. - Q1 FY22
Walmart Inc. - Q1 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Receivables, net Debt to capitalization1 $5.8 38.2% +15.3% -780 bps Inventories Return on assets2 $46.4 5.3% +12.5% -130 bps Accounts payable Return on investment2 $48.2 14.4% +9.2%
Slide 6: Walmart Inc. - YTD Q1 FY22
Walmart Inc. - YTD Q1 FY22 Dollars in billions. Dollar changes may not recalculate due to rounding. Change is calculated as the change versus the prior year comparable period Operating cash flow Dividends $2.9 $1.5 -$4.2 Capital expenditures Share repurchases2 $2.2 $2.8 +$0.5 Free cash flow1 Total s
Slide 7: Walmart U.S. - Q1 FY22
Walmart U.S. - Q1 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Net Sales Comparable sales1, 2 Inventory $93.2 6.0% Total: +15.8% +5.0% Comparable transactions • Increase reflects inventory build to support higher sales trends and lapping last y
Slide 8: Walmart U.S. - Q1 FY22
Walmart U.S. - Q1 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Gross profit rate Operating expense rate Operating income +142 bps +49 bps $5.5 +26.8% • Benefited from mix shifts into • Expenses deleveraged primarily due General Merchandise, due
Slide 9: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp sales Details • Sales declined against a tough comparison as we lapped last year's customer stock up, but were up low-double digits on a two-year stacked basis • Food categories saw mid-teens growth on a two-year stack aided by strong pri
Slide 10: Walmart International - Q1 FY22
Walmart International - Q1 FY22 Dollars in billions. Dollar changes may not recalculate due to rounding. Change is calculated as the change versus the prior year comparable period Net sales Gross profit rate Operating income Inventory $27.3 +42 bps $1.2 $9.2 -8.3% • Positively impacted by 18 bps fro
Slide 11: Walmart International - Q1 FY22
Walmart International - Q1 FY22 Results are presented on a constant currency basis. Net sales and comp sales are presented on a nominal, calendar basis and include eCommerce results. Change is calculated as the change versus the prior year comparable period. Walmex1 China Canada Net sales growth +0.
Slide 12: Walmart International - Q1 FY22
Walmart International - Q1 FY22 Results are presented on a constant currency basis. Change is calculated as the change versus the prior year comparable period Walmex1 China Canada Gross profit rate Increase Decrease Increase • Change in mix to higher margin • Change in mix to lower margin • Change i
Slide 13: Sam's Club - Q1 FY22
Sam's Club - Q1 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period With Fuel Net sales eCommerce net sales growth Gross profit rate Operating income $16.7 +47% -2 bps $0.6 +10.1% • Strong curbside performance and solid • Lower fuel rate and unfavorab
Slide 14: Sam's Club - Q1 FY22
Sam's Club - Q1 FY22 Dollars in billions. Change is calculated as the change versus the prior year comparable period Without Fuel Net sales Gross profit rate Comparable sales1, 2 eCommerce contribution $14.9 +86 bps +7.2% ~310 bps +6.2% • On a two-year stack, comp sales increased 19.2% Operating exp
Slide 15: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Category Comp sales Details Fresh / Freezer / Cooler + mid single-digit • Produce, prepared foods and fresh meat & seafood performed well Grocery and beverage + high single-digit • Drinks, snacks and candy showed strength Consumables + low single-digit • L
Slide 16: Non-GAAP measures - ROI
Non-GAAP measures - ROI We include Return on Assets ("ROA"), which is calculated in accordance with U.S. generally accepted accounting principles ("GAAP") as well as Return on Investment ("ROI") as measures to assess returns on assets. Management believes ROI is a meaningful measure to share with in
Slide 17: Non-GAAP measures - ROI (cont.)
Non-GAAP measures - ROI (cont.) The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, is as follows: CALCULATION OF RETURN ON ASSETS CALCULATION OF RETURN ON INVESTMENT Trailing Twelve Months Trailing Twelve Months Ended April 30, Ended April 30, (Dollars in m
Slide 18: Non-GAAP measures - free cash flow
Non-GAAP measures - free cash flow We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. We had net cash provided by operating activities of $2.9 billion for the three months ended April 30, 2021, which decrea
Slide 19: Non-GAAP measures - constant currency
Non-GAAP measures - constant currency In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of c
Slide 20: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS Adjusted diluted earnings per share attributable to Walmart (Adjusted EPS) is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in the diluted earnings per share attributable to Walmart calculated in accordance
Slide 21: Non-GAAP measures - adjusted EPS (cont.)
Non-GAAP measures - adjusted EPS (cont.) Three Months Ended April 30, Percent 2021 Change1 Diluted earnings per share: Reported EPS $ 0.97 (30.7)% Pre-Tax Tax Net Adjustments: Impact Impact2,3 Impact Unrealized and realized (gains) and losses on equity investments $ 0.74 $ (0.17) $ 0.57 Incremental
Slide 22: Non-GAAP measures - adjusted EPS (cont.)
Non-GAAP measures - adjusted EPS (cont.) As previously disclosed in our first quarter ended April 30, 2020 press release, we have calculated Adjusted EPS for the three months ended April 30, 2020 by adjusting EPS for the unrealized gains and losses on our JD.com investment. Three Months Ended April
Slide 23: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Terminology 23