Slide 1: Financial presentation to accompany management transcript
Walmart >;< Financial presentation to accompany management transcript
Slide 2: Safe harbor and non-GAAP measures
Safe harbor and non-GAAP measures This presentation contains statements as to Walmart management's guidance regarding earnings per share for the three months ending October 31, 2017 and fiscal year ending January 31, 2018, adjusted earnings per share for the fiscal year ending January 31, 2018, Walm
Slide 3: Guidance
Guidance U.S. Q3 FY18 EPS: Comp sales for 13-week Comp sales for 13-week $0.90 to $0.98 period, excluding fuel1,2: period, excluding fuel1,2: between +1.5% to +2.0% between +1.0% to +1.5% FY18 GAAP EPS: $4.18 to $4.28 FY18 adjusted EPS2: $4.30 to $4.40 1 13-week period from July 29, 2017 through Oct
Slide 4: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions, except per share data) Q2 $ Δ1 % Δ1 YTD $ Δ1 % Δ1 Total revenue $123,355 $2,501 2.1% $240,897 $4,139 1.7% Total revenue, constant currency2 $124,395 $3,541 2.9% $243,145 $6,387 2.7% Net sales $121,949 $2,544 2.1% $238,475 $4,084 1.7% Net sales, constant cu
Slide 5: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. Q2 bps Δ1 YTD bps Δ1 Gross profit rate 25.0% -11 bps 24.9% -5 bps Operating expenses as a percentage of net 21.2% 10 bps 21.2% 14 bps sales Effective tax rate 32.6% 207 bps 32.6% 148 bps Debt to total capitalization2 NP NP 38.4% 10 bps Return on investment3,4 NP NP 15.0% -50 bp
Slide 6: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions) Q2 $ Δ1 % Δ1 Receivables, net $5,395 $120 2.3% Inventories $43,442 -$11 0.0% Accounts payable $42,389 $2,487 6.2% 1 Change versus prior year comparable period. 6
Slide 7: Wal-Mart Stores, Inc.
Wal-Mart Stores, Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow $11,360 -$3,571 Capital expenditures $4,423 -$196 Free cash flow2 $6,937 -$3,375 (Amounts in millions) Q2 % Δ1 YTD % Δ1 Dividends $1,539 -1.3% $3,088 -1.4% Share repurchases3 $2,262 6.8% $4,447 -8.3% Total $3,801 3.4% $7,535 -5
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q2 Δ1 YTD Δ1 Net sales $78,738 3.3% $154,174 3.1% Comparable sales2,3 1.8% 20 bps 1.6% 30 bps • Comp traffic 1.3% 10 bps NP NP • Comp ticket 0.5% 10 bps NP NP E-commerce impact3,4 ~0.7% ~30 bps NP NP Neighborhood Market ~5.6% ~-90 bps NP NP Gross profit rate Decrea
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Sales • Comp sales1 increased 1.8% led by strong comp traffic of 1.3%. On a 2-year stacked basis, comp sales and traffic were up 3.4% and 2.5%, respectively. • Strength in grocery continued as food categories delivered the strongest quarterly comp sales
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Food and consumables had strong traffic throughout the quarter with 1 solid unit growth. Slight market inflation in food, excluding price Grocery + low single-digit investments, benefited food comp sales by approximately 30 basis
Slide 11: Walmart International
Walmart International Constant Constant (Amounts in millions) Reported currency1 Reported currency1 Q2 Δ2 Q2 Δ2 YTD 1 Δ2 YTD Δ2 Net sales $28,331 -1.0% $29,326 2.5% $55,428 -2.3% $57,621 1.6% Gross profit rate Decrease -27 bps NP NP Decrease -6 bps NP NP Operating income $1,592 -7.8% $1,692 -2.0% $2
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • The divestitures of Yihaodian and Suburbia created a headwind to sales of nearly $520 million when compared to last year. • Given the one-month reporting lag in markets except Canada, the timing of Easter benefited sales in some markets.
Slide 13: Walmart International - key markets quarterly results
Walmart International - key markets quarterly results Comp3 Gross 1,2 Net Operating Country profit Sales Traffic Ticket sales3 3 income3 rate United Kingdom4 1.8% 0.6% 1.2% 3.9% Decrease Decrease 3¹ Walmex5 7.2% 0.8% 6.4% 6.4% Decrease Increase Canada 2.5% 1.4% 1.1% 3.4% Decrease Increase China6 0.6
Slide 14: Walmart International - key market quarterly highlights
Walmart International - key market quarterly highlights Walmex • Momentum in sales continued across all countries and regions. • Net sales increased 6.4 percent and comp sales increased 7.2 percent. Normalizing for Suburbia sales last year, net sales would have increased 9.2 percent. • In Mexico spe
Slide 15: Walmart International - key market quarterly highlights
Walmart International - key market quarterly highlights U.K. • Customers are responding to investments in the value proposition as we continue to see sequential improvement in the business. • Comps were positive even when adjusting for the benefit from the timing of Easter. • Gross profit rate decli
Slide 16: Sam's Club
Sam's Club With fuel Without fuel1 With fuel Without fuel1 (Amounts in millions) Q2 Δ2 Q2 Δ2 YTD Δ2 YTD Δ2 Net sales $14,880 2.3% $13,725 2.1% $28,873 2.6% $26,634 1.7% Comparable sales3 1.4% 260 bps 1.2% 60 bps 2.2% 370 bps 1.4% 110 bps • Comp traffic NP NP 2.1% 250 bps NP NP NP NP • Comp ticket NP
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales • Comp sales1 for the period increased 1.2% with growth in comp traffic of 2.1%. • Market inflation positively impacted comp sales by 1.3%, primarily in tobacco. • In e-commerce, both Club Pickup and the direct to home business continued to have stro
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + low single-digit Strong performance in fresh meat, produce and floral. Softness in oils, vegetables and snacks was partially offset by positive results in adult Grocery and beverage - low single-digit bevera
Slide 19: Third-party FCPA- and compliance-related expenses
Third-party FCPA- and compliance-related expenses Q2 YTD (Amounts in millions) FY18 FY17 FY18 FY17 Ongoing inquiries and $7 $23 $20 $44 investigations Global compliance program and 5 5 8 9 organizational enhancements Total $12 $28 $28 $53 • In fiscal year 2018, we expect our third party FCPA- and co
Slide 20: Non-GAAP measures - ROI
Non-GAAP measures - ROI We include Return on Assets ("ROA"), which is calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") as well as Return on Investment ("ROI") as measures to assess returns on assets. Management believes ROI is a meaningful measure to share
Slide 21: 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, the most comparable GAAP financial measure, is as follows: Wal-Mart Stores, Inc. Return on Assets and Return on Investment Trailing Twelve Months Trailing Twelve Months Ended E
Slide 22: 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 $11.4 billion and $14.9 billion for the six months ended July 31, 20
Slide 23: Non-GAAP measures - constant currency
Non-GAAP measures - constant currency The term "currency exchange rates" refers to the currency exchange rates we use to convert the operating results for all countries where the functional currency is not the U.S. dollar ("non-USD entities") into U.S. dollars. We calculate the effect of changes in
Slide 24: Non-GAAP measures - fuel impact
Non-GAAP measures - fuel impact The net sales, gross profit rate and operating income of Sam's Club for the three and six months ended July 31, 2017, the percentage changes in those financial measures from the respective comparable prior year period, comparable sales of Sam's Club and Walmart U.S. f
Slide 25: Non-GAAP measures - fuel impact cont.
Non-GAAP measures - fuel impact cont. The table below reflects the calculation of the Sam's Club fuel impact for net sales and operating income for the three and six months ended July 31, 2017 and 2016. Three Months Ended July 31, Six Months Ended July 31, (Dollars in millions) 2017 2016 % Change 20
Slide 26: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS The adjusted diluted earnings per share from continuing operations attributable to Walmart (Adjusted EPS) for each of the three- and six-month periods ended July 31, 2017 and 2016 is considered a non-GAAP financial measure under the SEC's rules because the Adjusted E
Slide 27: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS We have calculated Adjusted EPS for the three and six months ended July 31, 2016 by adjusting EPS for the amount of the impact of the gain from the sale of Yihaodian in China. Adjusted EPS for the three and six months ended July 31, 2016 is a non-GAAP financial measu
Slide 28: Non-GAAP measures - adjusted EPS guidance
Non-GAAP measures - adjusted EPS guidance Adjusted EPS Guidance is considered a non-GAAP financial measure. Management believes that Adjusted EPS Guidance for Fiscal 2018 is a meaningful metric to share with investors because that metric, which adjusts EPS for certain items to be recorded in the per
Slide 29: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales • Terminology • Fiscal year 2018 earnings dates 29