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, consolidated net sales growth, Walmart U.S. eCommerce net sales growth, Walmart International net sales growth, consolidated operating income, expense leverage, g
Slide 3: Fiscal Year 2020 Guidance
Fiscal Year 2020 Guidance Metric FY20 Guidance Consolidated net sales growth At least 3 percent in constant currency, affected: • Positively by the acquisition of Flipkart • Negatively by deconsolidation of Walmart Brazil • Negatively by planned tobacco sales reduction at Sam’s Club Comp sales growt
Slide 4: Walmart Inc.
Walmart Inc. (Amounts in millions, except per share data) Q4 $ Δ1 % Δ1 FY19 $ Δ1 % Δ1 Total revenue $ 138,793 $ 2,526 1.9% $ 514,405 $ 14,062 2.8% Total revenue, constant currency2 140,485 4,218 3.1% 515,107 14,764 3.0% Net sales 137,743 2,593 1.9% 510,329 14,568 2.9% Net sales, constant currency2 1
Slide 5: Walmart Inc.
Walmart Inc. Q4 bps Δ1 FY19 bps Δ1 Gross profit rate 23.8% -21 bps 24.5% -18 bps Operating expenses as a percentage of net sales 20.2% -138 bps 21.0% -48 bps Effective tax rate2 32.7% 1,240 bps 37.4% 694 bps Debt to total capitalization3 NP NP 44.5% 710 bps Return on assets4 NP NP 3.4% -180 bps Retu
Slide 6: Walmart Inc.
Walmart Inc. (Amounts in millions) Q4 $ Δ1 % Δ1 Receivables, net $ 6,283 $ 669 11.9% Inventories 44,269 486 1.1% Accounts payable 47,060 968 2.1% 1 Change versus prior year comparable period. 6
Slide 7: Walmart Inc.
Walmart Inc. (Amounts in millions) FY19 $ Δ1 Operating cash flow $ 27,753 $ -584 Capital expenditures 10,344 293 Free cash flow2 $ 17,409 -877 (Amounts in millions) Q4 % Δ1 FY19 % Δ1 Dividends $ 1,505 —% $ 6,102 -0.3% Share repurchases3 3,249 98.1% 7,410 -10.7% Total $ 4,754 51.2% $ 13,512 -6.3% 1 C
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q4 Δ1 FY19 Δ1 Net sales $90,520 4.6% $331,666 4.1% Comparable sales2,3 4.2% 160 bps 3.6% 150 bps • Comp traffic 0.9% -70 bps NP NP • Comp ticket 3.3% 230 bps NP NP eCommerce impact3 ~180 bps ~120 bps NP NP Gross profit rate Decrease -27 bps Decrease -28 bps Operati
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Sales • Comp sales1 increased 4.2% driven by ticket growth of 3.3% and traffic growth of 0.9%. eCommerce contributed approximately 180 basis points to segment comp sales growth with strength in Grocery Pickup & Delivery and eCommerce ship-to-home. • On a
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Momentum continued in food and consumables with strong comp sales and traffic in the quarter. On a two-year stack basis, the grocery comp was the best in nine years. Sales strength was broad-based as Grocery1 + mid single-digit c
Slide 11: Walmart International
Walmart International Constant Constant (Amounts in millions) Reported currency1 Reported currency1 Q4 Δ2 Q4 Δ2 FY19 1 Δ2 FY19 Δ2 Net sales $32,317 -2.3% $33,997 2.7% $120,824 2.3% $121,532 2.9% Gross profit rate Decrease -116 bps NP NP Decrease -41 bps NP NP Operating income3 $1,170 -9.9% $1,262 -2
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • Positive comp sales growth in three of our four largest markets - Mexico, U.K. and Canada. In China, we saw a slightly negative comp in the quarter as a calendar shift of the Mid-Autumn Festival and a slower economic environment affected
Slide 13: Walmart International - key market quarterly results
Walmart International - key market quarterly results Comp3 Gross 1,2 Net Operating Country profit Sales Traffic Ticket sales3 3 income3 rate Walmex4 3.8% 0.1% 3.7% 5.3% Increase Increase China -0.2% 1.3% -1.5% 1.0% Decrease Increase Canada 1.1% 0.7% 0.4% 1.5% Increase Decrease United Kingdom5 1.0% 0
Slide 14: Walmart International - key market highlights
Walmart International - key market highlights Walmex • Net sales increased 5.3% and comp sales increased 3.8%, led by strength in Mexico. ◦ In Mexico, comp sales increased 4.6% or 11.0% on a two-year stacked basis. ◦ Continued to grow ahead of the market, including during the El Buen Fin event. ◦ Ac
Slide 15: Walmart International - key market highlights
Walmart International - key market highlights Canada • Net sales increased 1.5%, with comp sales growth of 1.1%. ◦ Comp sales growth benefited from strength in grocery, consumables and health and wellness, partly offset by softer general merchandise sales. ◦ Maintained our market share position in g
Slide 16: Sam's Club
Sam's Club With fuel Without fuel1 With fuel Without fuel1 (Amounts in millions) Q4 Δ2 Q4 Δ2 FY19 Δ2 FY19 Δ2 Net sales $14,906 -3.7% $13,657 -4.1% $57,839 -2.3% $52,332 -3.9% Comparable sales3 3.7% 10 bps 3.3% 90 bps 5.5% 250 bps 3.8% 180 bps • Comp traffic NP NP 6.4% 210 bps NP NP NP NP • Comp tick
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales 1 • Comp sales increased 3.3% and comp traffic grew 6.4%. Tobacco negatively affected comp sales by 200 basis points, and the transfer of sales from closed clubs contributed approximately half of the 3.3% growth, excluding fuel. • eCommerce sales inc
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + mid single-digit Deli, cooler and frozen performed well. Grocery and beverage + high single-digit Soda, water, candy, snacks and chips performed well. Consumables + low double-digit Most categories achieved
Slide 19: Third-party FCPA and compliance-related expenses
Third-party FCPA and compliance-related expenses Q4 YTD (Amounts in millions) FY19 FY18 FY19 FY18 Ongoing inquiries and $3 $4 $17 $14 investigations Global compliance program and 3 3 13 26 organizational enhancements Total $6 $7 $30 $40 These expenses are included in our Corporate and support expens
Slide 20: 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 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, is as follows: CALCULATION OF RETURN ON ASSETS CALCULATION OF RETURN ON INVESTMENT Trailing Twelve Months Trailing Twelve Months Ended January 31, Ended January 31, (Dollars in
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 $27.8 billion for the twelve months ended January 31, 2019, which de
Slide 23: 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 or for countries experiencing
Slide 24: 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 not excluded in the diluted earnings per share attributable to Walmart calculated in accord
Slide 25: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS Three Months Ended Percent Fiscal Year Ended Percent January 31, 2019 Change1 January 31, 20192 Change1 Diluted earnings per share: Reported EPS3 $ 1.27 74.0% $ 2.26 -31.1% Pre-Tax Tax Net Pre-Tax Tax Net Adjustments: Impact Impact4 Impact Impact Impact4 Impact Loss
Slide 26: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS As previously disclosed in our fiscal year ended January 31, 2018 press release, we have calculated Adjusted EPS for the three months and the fiscal year ended January 31, 2018 by adjusting EPS for the following: (1) restructuring charges, (2) losses on the early ext
Slide 27: Additional resources at stock.walmart.com
Additional resources at stock.walmart.com • Unit counts & square footage • Comparable store sales, including and excluding fuel • Terminology • Fiscal year 2020 earnings dates 27