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, adjusted earnings per share, effective tax rate or adjusted effective tax rate for the fiscal year ending January 31, 2019 and comparable sales (excluding fuel) f
Slide 3: Fiscal Year 2019 Guidance Update
Fiscal Year 2019 Guidance Update GAAP EPS $2.26 to $2.36 Adjusted EPS1 $4.75 to $4.85 U.S. Walmart U.S. comp sales2 of at least 3% 1 See press release at www.stock.walmart.com and additional information at the end of this presentation regarding non-GAAP financial measures. 2 52-week period ending Ja
Slide 4: Walmart Inc. consolidated results
Walmart Inc. (Amounts in millions, except per share data) Q3 $ Δ1 % Δ1 YTD $ Δ1 % Δ1 Total revenue $124,894 $1,715 1.4% $375,612 $11,536 3.2% Total revenue, constant currency2 $126,122 $2,943 2.4% $374,622 $10,546 2.9% Net sales $123,897 $1,761 1.4% $372,586 $11,975 3.3% Net sales, constant currency
Slide 5: Walmart Inc. margins, tax rate and returns
Walmart Inc. Q3 bps Δ1 YTD bps Δ1 Gross profit rate 24.8% -21 bps 24.7% -18 bps Operating expenses as a percentage of net sales 21.6% -38 bps 21.3% -16 bps Effective tax rate2 29.5% -441 bps 41.9% 904 bps Debt to total capitalization3 NP NP 45.9% 630 bps Return on assets4 NP NP 2.6% -320 bps Return
Slide 6: Walmart Inc. receivables, inventories, payables
Walmart Inc. (Amounts in millions) Q3 $ Δ1 % Δ1 Receivables, net $5,785 -$80 -1.4% Inventories $50,380 $233 0.5% Accounts payable $49,729 $2,142 4.5% 1 Change versus prior year comparable period. 6
Slide 7: Walmart Inc. cash flow, dividends and share repurchases
Walmart Inc. (Amounts in millions) YTD $ Δ1 Operating cash flow 17,308 248 Capital expenditures 7,014 106 Free cash flow2 10,294 142 (Amounts in millions) Q3 % Δ1 YTD % Δ1 Dividends 1,530 0.3% $4,597 -0.4% Share repurchases3 2,317 4.9% $4,161 -37.5% Total $3,847 3.0% $8,758 -22.3% 1 Change versus pr
Slide 8: Walmart U.S.
Walmart U.S. (Amounts in millions) Q3 Δ1 YTD Δ1 Net sales $80,583 3.7% $241,146 4.0% Comparable sales2,3 3.4% 70 bps 3.3% 130 bps • Comp traffic 1.2% -30 bps NP NP • Comp ticket 2.2% 100 bps NP NP eCommerce impact3 ~140 bps ~60 bps NP NP Gross profit rate Decrease -28 bps Decrease -29 bps Operating
Slide 9: Walmart U.S. - quarterly financial highlights
Walmart U.S. - quarterly financial highlights Sales • Comp sales1 increased 3.4% driven by ticket growth of 2.2% and traffic growth of 1.2%. eCommerce contributed approximately 140 basis points to segment comp sales growth with strength in online grocery and eCommerce ship-to-home. • On a two-year s
Slide 10: Walmart U.S. - quarterly merchandise highlights
Walmart U.S. - quarterly merchandise highlights Category Comp Comments Food and consumables had strong comp sales and traffic throughout the quarter. On a two-year stack basis, the grocery comp was the best Grocery1 + low single-digit in nearly nine years. Strength was broad-based, but particularly
Slide 11: Walmart International
Walmart International Constant Constant (Amounts in millions) Reported currency1 Reported currency1 Q3 Δ2 Q3 Δ2 YTD 1 Δ2 YTD Δ2 Net sales $28,793 -2.6% $30,009 1.6% $88,507 4.2% $87,535 3.0% Gross profit rate Decrease -42 bps NP NP Decrease -14 bps NP NP Operating income3 $1,179 -3.7% $1,236 1.0% $3
Slide 12: Walmart International - quarterly financial highlights
Walmart International - quarterly financial highlights Sales • Positive comp sales growth in nine of our 10 markets, including our four largest markets: Mexico, China, Canada and U.K. • The sale of a majority stake in Walmart Brazil resulted in a $1.3 billion net sales headwind that was partially of
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 5.4% 1.7% 3.7% 7.2% Increase Increase China 2.2% 2.0% 0.2% 4.3% Decrease Decrease Canada 2.5% 0.8% 1.7% 2.8% Increase Decrease United Kingdom5 2.0% 1.3
Slide 14: Walmart International - key market highlights
Walmart International - key market highlights Walmex • Net sales increased 7.2% and comp sales increased 5.4%, driven by strength across multiple regions, led by Mexico. • In Mexico, comp sales increased 6.3% or 13.5% on a two-year stacked basis. • Comp sales growth continued to outpace ANTAD1 self-
Slide 15: Walmart International - key market highlights
Walmart International - key market highlights Canada • Net sales increased 2.8%, with comp sales growth of 2.5%. • Gained 30 basis points of market share in food, consumables, and health and wellness for the 12-week period ended October 27th, according to Nielsen. • Gross profit rate benefited from
Slide 16: Sam's Club
Sam's Club With fuel Without fuel1 With fuel Without fuel1 (Amounts in millions) Q3 Δ2 Q3 Δ2 YTD Δ2 YTD Δ2 Net sales $14,521 -2.3% $13,002 -4.3% $42,933 -1.8% $38,675 -3.8% Comparable sales3 5.3% 130 bps 3.2% 40 bps 6.1% 330 bps 4.0% 210 bps • Comp traffic NP NP 6.2% 260 bps NP NP NP NP • Comp ticke
Slide 17: Sam's Club - quarterly financial highlights
Sam's Club - quarterly financial highlights Sales 1 • Comp sales growth was broad-based among major categories and increased 3.2% in the period, including growth in comp traffic of 6.2%. Tobacco negatively affected comp sales by 250 basis points, and the transfer of sales from closed clubs contribut
Slide 18: Sam's Club - quarterly category highlights
Sam's Club - quarterly category highlights Category Comp Comments Fresh / Freezer / Cooler + mid single-digit Produce, deli, prepared foods and seafood performed well. Grocery and beverage + mid single-digit Water, soda and snacks performed well. Consumables + high single-digit All categories achiev
Slide 19: Third-party FCPA and compliance-related expenses
Third-party FCPA and compliance-related expenses Q3 YTD (Amounts in millions) FY19 FY18 FY19 FY18 Ongoing inquiries and $6 $2 $14 $22 investigations Global compliance program and 3 3 10 11 organizational enhancements Total $9 $5 $24 $33 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: Walmart Inc. Return on Assets and Return on Investment Trailing Twelve Months Trailing Twelve Months Ended October Ended October (Dollars in millions) 2018 31,20
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 $17.3 billion for the nine months ended October 31, 2018, which was
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 from continuing operations 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 from continuing o
Slide 25: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS Three Months Ended Percent Nine Months Ended Percent October 31, 2018 Change1 October 31, 20182 Change1 Diluted earnings per share: Reported EPS $0.58 —% $1.01 -60.2% Pre-Tax Tax Net Pre-Tax Tax Net Adjustments: Impact Impact3 Impact Impact Impact3 Impact Unrealized
Slide 26: Non-GAAP measures - adjusted EPS
Non-GAAP measures - adjusted EPS We have calculated Adjusted EPS for the three and nine months ended October 31, 2017 by adjusting EPS for the following: (1) the loss on the early extinguishment of certain debt, (2) the FCPA accrual based on discussions with government agencies regarding the possibl
Slide 27: 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 2019 is a meaningful metric to share with investors because that metric, which adjusts EPS for certain items recorded in the period, i
Slide 28: 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 2019 earnings dates 28